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Diamond Jo Devel Agreement POD Parking Ramp'THE CITY OF DUB E ~-~~ MEMORANDUM February 1, 2007 TO: The Honorable Mayor and City Council Members '- FROM: Michael C. Van Milligen, City Manager SUBJECT: Development Agreement with Diamond Jo, LLC for the Financing and Construction of a Public Parking Ramp in the Port of Dubuque The City of Dubuque has committed to build a 750-car public parking ramp at an estimated cost of approximately $13 million in the Port of Dubuque. This commitment appears in the Development Agreement with Wayne Briggs to construct his $63 million mixed-use project and the City has made the same commitment to the Vision Iowa Board to help the Dubuque County Historical Society leverage a State grant to expand the National Mississippi River Museum and Aquarium. The City has a Capital Improvement Project budget item for this project and is prepared to perform should this Development Agreement not be approved. The Diamond Jo approached the City asking that consideration be given to a larger parking ramp on a quicker construction schedule that would have no fee charged to the public for parking. The request is fora 1,200-car parking ramp by August 1, 2008. The City and the Diamond Jo have negotiated a Development Agreement that includes: • The City will design and construct a 1,200-car public parking ramp by August 1, 2008, at an estimated cost of approximately $23 million. • Consistent with a previous agreement with the Diamond Jo, they will place $6.35 million in an escrow account towards the cost of the public parking ramp. With a construction contingency and depending on the construction bids, additional dollars will need to be escrowed. • The City will issue 30-year tax increment financing bonds for the remaining cost of the public parking ramp, with the repayment revenue stream coming from a Minimum Property Tax Assessment Agreement signed by the Diamond Jo on their new casino complex. • Any costs over approximately 110% of the construction contract must be approved by the Diamond Jo. • To achieve the Diamond Jo goal of customers of the public parking ramp not being charged for parking, the Diamond Jo agreed to the following: o The Diamond Jo agrees to pay for the costs of all operations, maintenance, repair and security of the public parking ramp. o The Diamond Jo agrees to contribute $80 per year per space (estimated at $96,000) to a sinking fund to cover capital repairs and maintenance. This will be a public parking ramp owned and operated by the City for use by the general public. The total value of development that will occur with these multiple Port of Dubuque projects, including Wayne Briggs, Durrant, Diamond Jo, Dubuque County Historical Society and the parking ramp is estimated at $163 million. Economic Development Director Dave Heiar is recommending approval of this Development Agreement. I concur with the recommendation and respectfully request Mayor and City Council approval. ~~ L Michael C. Van Mi ligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director _.~°~ THE CITY OF ~ ` -., _... -~-~ ~~ =~-s._~~ MEMORANDUM ~~°~-~-~ January 30, 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: Development Agreement with Diamond Jo, LLC or the Financing and Construction of a Public Parking Ramp in the Port of Dubuque INTRODUCTION This memorandum provides for Council consideration a development agreement to finance and construct a public parking ramp in the Port of Dubuque which would be located between the proposed Diamond Jo building and the mixed use construction proposed by Wayne Briggs (see attached map). A resolution is attached to approve the development agreement. BACKGROUND Staff has been working with Diamond Jo, LLC to negotiate the financing and construction of a 1,200-1,300 space parking ramp. The attached Development Agreement establishes the proposed terms. The key elements of this agreement include the following; 1. Diamond Jo, LLC has agreed to construct a casino with a minimum 140,000 sq foot of floor space at an approximate cost of $45 million. Construction shall begin within 6 months following final approval of the design and be completed no later than 18 months from commencement of construction. 2. The City agrees to design and construct a public parking facility at a cost of approximately $23 million. The City shall hire either Durrant or YWS Architects to design the facility by March 1, 2007 or Diamond Jo, LLC has the right to terminate the agreement. The City also agrees to conduct weekly meetings during the design and construction phases to allow for review and input from Diamond Jo, LLC. 3. Diamond Jo, LLC will place $6.35 million into an escrow account for designing and construction of the public parking facility. This escrow satisfies the obligations under section 32 of the June 1, 2005 lease agreement with the City. Additional dollars will need to be escrowed for a construction contingency and to cover the contractor's bid for construction. 4. The City agrees to issue 30 year tax increment financing bonds to finance the remaining costs of the public parking facility not covered by the escrow account. 5. Diamond Jo, LLC agrees to a minimum assessment agreement in an amount designed to repay the tax increment financing bonds over 30 years. All costs associated with design, construction or maintenance of this project must be paid for from the escrow account for from proceeds of the sale of tax increment financing bonds as secured by the minimum assessment agreement. 6. Diamond Jo, LLC agrees to pay the cost for security, operating, repairs and maintenance of the public parking facility. Initially the City agrees to contract for $1 with Diamond Jo, LLC to provide maintenance and security for the parking facility as detailed in exhibit J. However, the City may at its sole discretion terminate this contract at any time. 7. Diamond Jo, LLC also agrees to pay to the City $80 annually per parking space. These funds shall be placed into a sinking fund to cover capital repairs and expenditures. This figure shall be adjusted annually by the Consumer Price Index. 8. Diamond Jo, LLC agrees to pay the rental and compensation for parking privileges in other parts of the Port of Dubuque as provided by the June 1, 2005 lease agreement. 9. The City agrees that so long as Diamond Jo, LLC is not in default of this agreement, the public parking facility shall remain open 24/7 free of charge for the shared parking needs of the Port of Dubuque (the exception will be for condo parking which will pay a parking fee for restricted spaces). 10. Should the bids for the public parking facility exceed the costs that can be financially supported by the minimum assessment agreement, Diamond Jo, LLC has the right to terminate this agreement prior to an award of a construction contract. 11. If construction of the facility is not complete by August 1, 2008, the City will pay Diamond Jo, LLC $100 a day damages and the contractor will pay $1,000 per day liquidated damages. 12. The parent company, Peninsula Gaming, LLC has provided a guarantee for the property tax payment. Additional terms and conditions of the sale of the property are included within the attached Development Agreement. RECOMMENDATION I recommend that the City Council approve the development agreement with Diamond Jo, LLC for the construction and financing of a public parking ramp in the Port of Dubuque. This action supports the Council's objectives to redevelop the Port of Dubuque and to provide for the parking needs of said development. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F:\USERS\DHeiar\Diamond Jo\Memo for the parking ramp DA with Diamond Jo, LLC.doc RESOLUTION NO. 70-07 ACCEPTING THE PROPOSAL FROM DIAMOND JO, L.L.C. FOR THE FINANCING OF THE DESIGN, CONSTRUCTION, AND THE COST OF ON-GOING OPERATIONS AND MAINTENANCE OF A PUBLIC PARKING FACILITY IN THE GREATER DOWNTOWN URBAN RENEWAL DISTRICT IN THE PORT OF DUBUQUE tN THE CITY OF DUBUQUE, IOWA AND APPROVING THE PORT OF DUBUQUE PUBLIC PARKING FACILITY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DIAMOND JO, L.L.C. Whereas, it is determined that the City is interested in providing additional public parking opportunities in the Port of Dubuque; and Whereas, there is insufficient property in the Port of Dubuque to provide ample surface parking; and Whereas, parking ramps provide the most efficient use of space in the Port of Dubuque; and Whereas, the Diamond Jo, LLC has submitted a proposal to finance the design, construction, and on-going operations and maintenance of a public parking ramp in the Port of Dubuque; and Whereas, it is the determination of the City Council that approval of the Port of Dubuque Public Parking Facility Development Agreement Between the City of Dubuque, Iowa and Diamond Jo, L.L.C. is in the public interest of the citizens of the City of Dubuque, and is consistent with the City's Urban Renewal Plan for the Greater Downtown Urban Renewal District. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Port of Dubuque Public Parking Facility Development Agreement Between the. City of Dubuque, Iowa and Diamond Jo, LLC is in the public interest of the citizens of the City of Dubuque and in furtherance of the City's Urban Renewal Plan, and is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute said Development Agreement on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Manager is authorized to take such actions as are necessary to implement the terms of the Development Agreement as herein approved. Passed, approved and adopted this 5th day of February, 2007.' Roy D. Buol, Mayor Attest: Jeanne F. Schneider City Clerk F:\USERS1DHeiar\Diamond Jo\Diamond Jo LLC Development Proposal Acceptance Resolution.doc 1 PORT OF DUBUQUE PUBLIC PARKING FACILITY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DIAMOND JO, LLC This Devel ment Agreement (the Agreement) is made as of this _ ~~~ day of ~-~~~ , 2007 by and between the City of Dubuque, a municipal corporation of the State of I ~a (City), and Diamond Jo, LLC (f/k/a DJ Gaming Company, LLC), a Delaware limit d liability company (DJDJ). ' WHEREAS, DJ intends to develop a new casino in the Port of Dubuque of the Cityof Dubuque, Iowa, (the DJ Development) on real estate legally described on attached Exhibit A (the DJ Real Estate); and WHEREAS, in conjunction with the DJ Development, the parties believe that it is in both of their interests that City design, develop, finance and construct a public multi-level public parking facility to be owned and operated by City on real estate owned by City located adjacent to the DJ Real Estate and legally described on attached Exhibit B (the Public Parking Facility Real Estate) and as conceptually described on attached Exhibit C (the Public Parking Facility). NOW, TH EREFORE, in return for good and valuable consideration of the matters set forth in the above and foregoing recitals it is hereby agreed as follows: SECTION 1. DJ OBLIGATIONS. 1.1. DJ Development. DJ hereby agrees to construct on the DJ Real Estate a casino development of not less than one hundred forty thousand (140,000) square feet of floor space along with necessary site work at a cost of approximately $45,000,000.00. (1) DJ agrees that the design of the DJ Development shall be subject to the prior written approval of sightlines by Port of Dubuque Adams, L.L.C. (2) DJ hereby agrees that construction of DJ Development shall be commenced by no later than six months following the final approval of the design by the City Manager after review by the Design Review Committee and shall be substantially completed no later than eighteen months from the commencement of construction. (3) The time frames for the performance of this obligation shall be suspended due to unavoidable delays meaning delays, outside the control of DJ, which are the direct result of strikes, other labor troubles, unusual shortages of materials or labor, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the DJ Development, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion directly results in 020107ba1 dela s, or acts of an federal, state or local overnment which direct) result in Y Y 9 Y ' extraordinary delays. The time for performance of such obligations shall be extended only for the period of such delay. 1.2. DJ Financial Commitment. In consideration of the benefits to DJ provided in this Agreement, DJ agrees to pay into an escrow account (the "Escrow Account") administered by the City as provided in the Escrow Agreement, Exhibit M, the sum of $6.35 million (the ' "Initial Advance"), provided that DJ shall be allowed, at its sole discretion, to increase the amount of the Initial Advance and receive a corresponding reduction in the minimum assessment provided under Section 1.4 so that the aggregate amount of the Initial Advance ' and the Bond proceeds under Section 2.3 remains unchanged. (1) The Initial Advance shall be applied by City toward the cost of designing and 1 constructing the Public Parking Facility. DJ shall pay such Initial Advance as costs and expenses are incurred by City within thirty (30) days of receipt of a statement and accompanying documentation therefor from City as such costs and expenses ' are incurred by City during the design of the Public Parking Facility. (2) If not sooner paid, the balance of the Initial Advance shall be paid by DJ to ' City prior to and as a condition of the award by City of the construction contract for the Public Parking Facility. (3) In the event the Public Parking Facility is not completed, for any reason other than due to DJ's material breach of this Agreement, in accordance in all material respects with the design plans or budget as provided in this Agreement, City shall be obligated to reimburse DJ for the portion of the Initial Advance DJ paid by it pursuant to this Agreement. Such reimbursement shall be payable by City over time from amounts City receives from the State of Iowa for City's one-half percent ('/2%) share of the adjusted gross receipts paid by DJ under Iowa Code Section 99F.11 and from no other source of City funds. ' (4) It is agreed that this Agreement satisfies DJ's and City's obligations under Section 32 of the Lease Agreement between City and DJ. (5) The parties agree that all contracts entered into by City for the design and construction of the Public Parking Facility shall be for a fixed price or a guaranteed maximum price (GMP), so as to allow for the establishment of a maximum total cost ' for the design and construction of the Public Parking Facility. (a) Any change orders or modifications to such contracts that will result in the fixed price or the GMP, together with all previous change orders or modifications, exceeding 110% of the fixed price or the GMP, shall require the written consent of both City and DJ. ' (b) DJ agrees that in the event it so consents to such a change order or other modification to a contract that will result in the fixed price or the GMP, together with all previous change orders or modifications, exceeding 110% of ' 020107ba1 2 the fixed rice or the GMP, it shall a to Cit within thi 30 da s of recei t P P Y Y ~Y () Y P ' of a statement from City the amount by which such costs exceed 110% of the fixed price or the GMP. (c) If the amount by which such costs exceed the sum of the Initial Advance and the proceeds of the Bonds described in Section 2.3 are determined prior to the award by City of a contract for the construction of the Public Parking Facility and DJ does not terminate this Agreement as provided in Section 3.1, DJ shall pay such amount ,together with a contingency amount of ten per cent (10%) of the amount of the construction contract, to City prior to the award by City of the construction contract. (d) Upon acceptance of the Public Parking Facility by the City Council and ' after payment by City of all costs for the design and construction of the Public Parking Facility, City shall refund to DJ any balance of the contingency amount remaining, if any, and all interest earned on the Initial Advance ' remaining in the Escrow Account. 1.3. Operating Costs of Public Parking Facility Following the opening of the Public Parking Facility and continuing for the life of the Public Parking Facility, DJ agrees to pay the reasonable and necessary actual operating costs incurred by City for the operation, security, repair and maintenance of the Public Parking Facility. Such operating costs shall include those listed on attached Exhibit K. (1) Any costs that exceed $1,100 during the first year of operation of the Public Parking Facility (after the first year of operation of the Public Parking Facility, the amount of such costs shall be adjusted annually by the increase, if any, from the previous year in the Consumer Price Index for all items for All Urban Consumers- U.S. City Average, published by the U.S. Department of Labor, Bureau of Labor Statistics) and that have a useful life of 3 years or more shall be considered capital items and paid for pursuant to Section 1.5 below. ' (2) DJ shall reimburse City for such costs within thirty (30) days of receipt of a statement therefor from City providing reasonable documentation to support such ' amount. (3) Following the opening of the Public Parking Facility, City will contract with DJ ' at a total cost of $1.00 per year, for the maintenance and security requirements of the Public Parking Facility pursuant to the Maintenance Services Agreement attached hereto as Exhibit J. Notwithstanding any provision in the Agreement to the contrary, DJ agrees that City may in its sole discretion, with or without cause, terminate the Agreement and provide such reasonable and customary services with its own staff or contract with a third party for such services, all costs for which DJ shall reimburse City as provided in this Agreement. If City terminates the Agreement, City shall purchase from DJ any equipment at its depreciated value purchased by DJ for its maintenance and security requirements under the Agreement. ' 020107ba1 3 ' (4) Failure of DJ to make any payment required by this Section shall constitute an Event of Default under Section 3.3 of this Agreement. ' 1.4. Minimum Assessment. The parties shall execute the Minimum Assessment Agreement attached hereto as Exhibit D. DJ shall provide City with a guaranty in the form of ' Exhibit F for DJ's obligation to pay real estate taxes on the DJ Development. 1.5. Sinking Fund. DJ agrees to pay to City each year during the life of the Public Parking Facility, commencing on the date of the opening of the Public Parking Facility, and on anniversary of such date each year thereafter, an amount equal to $80 per parking space in ' the Public Parking Facility adjusted annually by the increase, if any, from the previous year in the Consumer Price Index for all items for All Urban Consumers-U.S. City Average, published by the U.S. Department of Labor, Bureau of Labor Statistics. (1) Such amount shall be separately accounted for by City and shall be drawn upon by City from time to time to be used solely to satisfy the capital maintenance 1 requirements of the Public Parking Facility determined necessary by City in its sole discretion. ' (2) For the purposes of this Agreement, "capital maintenance" shall mean any expenditure, or related series of expenditures, in excess of $1,100 during the first year of operation of the Public Parking Facility (after the first year of operation of the Public Parking Facility, the amount of such costs shall be adjusted annually by the increase, if any, from the previous year in the Consumer Price Index for all items for All Urban Consumers-U.S. City Average, published by the U.S. Department of Labor, Bureau of Labor Statistics) and that has a useful life of three years or more. (3) Failure of DJ to make any payment required by this Section shall constitute an Event of Default under Section 3.3 of this Agreement. 1.6. Rental and Compensation for Parking Privileaes. DJ agrees to pay to City the rental ' and compensation for parking privileges as provided in Par. 2 of the Lease Agreement Between the City of Dubuque, Iowa and DJ Gaming Company, LLC, Exhibit G attached hereto, for the Term of the Lease Agreement and thereafter for so long as Lots 1 and 2 ' described therein may remain available to DJ at City's sole discretion on the same basis as provided in the Lease Agreement. Failure of DJ to make any payment required by this Section constitutes a default of this Agreement and in addition to any other remedy, City ' shall upon such default have the right to impose such fees as City determines in its sole discretion for use of the Public Parking Facility. 1 1.7. DJ acknowledges that City has the right in its sole discretion to install parking meters on the streets in the Port of Dubuque. 1.8. Real Estate Taxes. DJ shall pay or cause to be paid during the Term of this Agreement, when due, all real property taxes and assessments payable with respect to all and any parts of the DJ Development. Failure of DJ to make any payment required by this ' Section shall constitute an Event of Default under Section 3.3 of this Agreement. ' 020107ba1 4 1 SECTION 2. CITY OBLIGATIONS. 2.1. Design and Construction of the Public Parking Facility. Subject to the conditions set forth in this Agreement, City agrees to design and construct the Public Parking Facility at a cost estimated to be approximately $23,043,800.00 on the Public Parking Facility Real Estate. (1) The footprint of the Public Parking Facility shall be consistent with the concept shown on Exhibit I, and in harmony with the DJ Development and the Port of Dubuque ' Adams Development, L.L.C., and The Durrant Group, L.L.C. Development in appearance and function. (2) City shall retain either YV1IS Architects or The Durrant Group, Inc., based on whichever architect comes in with the lower bid, to design the Public Parking Facility on terms acceptable to City in its sole discretion (the "Project Architect"). (3) City shall hold weekly progress meetings with the Project Architect, DJ and its representatives during the design and construction of the Public Parking Facility. ' City agrees to allow DJ to provide input and comments on the design of the Public Parking Facility, including but not limited to providing DJ timely copies of all design documents and correspondence regarding design and providing timely notice to DJ of any meetings regarding the design of the Public Parking Facility and allowing DJ to attend such meetings. (4) In the event City fails to retain the Project Architect by March 1, 2007, DJ may at its option terminate this Agreement by written notice to City. Termination of this Agreement shall be DJ's sole remedy for failure of City to retain the Project Architect. ' DJ shall not be entitled to reimbursement of any costs or damages incurred by DJ in connection with this Agreement. (5) City shall retain as a cost of the design of the Public Parking Facility an architecture firm to provide such design review as City determines necessary of the Project Architect's design. 1 1 2.2. Use of Parking Lot by DJ. City agrees that for so long as DJ is not in default (as defined under Section 3.3 below), and subject to City's right to limit access to the Public Parking Facility during emergencies, severe weather conditions, maintenance or other similar circumstances, the Public Parking Facility shall remain open 24 hours per day, 7 days per week to the general public, including but not limited to DJ's patrons (but excluding DJ's employees who DJ agrees to prohibit from parking in the Public Parking Facility), in each case free of charge and without any unreasonable restrictions, but subject to the terms of the Development Agreement between City, Port of Dubuque Adams Development, L.L.C., and The Durrant Group, L.L.C., and the Development Agreement between City and The McGraw-Hill Companies. City agrees no future development project in the Port of Dubuque over which City has ' 020107ba1 5 1 control or is able to exercise influence shall be approved by City unless such development project contemplates and provides for parking sufficient to accommodate the reasonable parking needs of such development for the foreseeable future as determined by City in its sole discretion. It is acknowledged by DJ that the Public Parking Facility is intended to be utilized for the shared parking needs of the Port of Dubuque, including but not limited to the development contemplated by Port of Dubuque Adams, L.L.C. and The Durrant Group, L.L.C., as described in Exhibit E, the DJ Development, Dubuque County Historical Society projects, and McGraw-Hill for employee parking as provided in Par. 12 of the Development Agreement Between the City of Dubuque and The McGraw-Hill Companies, Inc., Exhibit L attached hereto. 2.3. City Financing Obligations. City agrees, subject to the conditions set forth in Section 2.4 below, to issue tax increment financing bonds (the Bonds) for the remaining costs associated with the design and construction of the Public Parking Facility in such amount as to allow for the Bonds to be paid off over a period of thirty (30) years utilizing the Incremental Property Tax Revenues (as defined below), in whole, or in part should the Incremental Property Tax Revenues exceed the Bond payment obligations from the DJ Development and assuming a minimum assessment amount as provided in Exhibit D. (1) Interest and principal shall be paid from Incremental Property Tax Revenues generated by the DJ Development, as provided in Exhibit D. (2) DJ recognizes and agrees that Incremental Property Tax Revenues are solely and only the incremental taxes collected by City in respect to the DJ Development, which does not include property taxes collected for the payment of bonds and ' interest of each taxing district, and taxes for the regular and voter-approved physical plant and equipment levy, and any other portion required to be excluded by Iowa law. Accordingly, the parties understand that due to the amounts that are legally required to be excluded from the Incremental Property Tax Revenues, such incremental taxes will not include all amounts paid by DJ as regular property taxes. ' (3) DJ acknowledges and agrees that it shall identify for City a purchaser for the Bonds (the Purchaser) and City agrees to negotiate in good faith with the Purchaser with respect to the terms of the Bonds. Except as specifically set forth herein, DJ further acknowledges and agrees that the Bonds shall be sold on such terms and conditions, bear such interest rates, have such reserve funding requirements, mature at such times and in such amounts as City, in its sole but reasonable, good faith discretion, shall determine to be acceptable to it and the Purchaser and shall be payable from and secured solely and only by a pledge of the Incremental Property Tax Revenues to be collected by City in respect of the DJ Development during a period not to exceed thirty (30) years. (4) Proceeds of the Bonds shall be applied only to the payment of capitalized ' interest thereon (if necessary), debt service reserve funding, costs of issuance and the payment of the costs of the design and construction of the Public Parking Facility. 020107ba1 6 ' 5 Cit shall have no obli ation to fund the costs of h () y g t e design and construction ' of the Public Parking Facility to be paid hereunder from any source other than the proceeds of the Bonds. ' (6) City's obligation to issue the Bonds and undertake its obligations hereunder shall be subject in all respects to unavoidable delays, the provisions of this Section and Section 2.4, and to the satisfaction of all conditions required (in the reasonable judgment of bond counsel for City) by Chapter 403 of the Code of Iowa, as amended, with respect to the issuance of the Bonds. 1 2.4. Limitations on Financial Undertakings of City Notwithstanding any other provisions of this Agreement, City shall have no obligation to DJ under this Agreement to issue the Bonds or to fund the design or construction of the Public Parking Facility, if any of the following conditions exist as of June 30, 2007: (1) City is unable to complete the sale of the Bonds on such terms and conditions as it shall deem necessary or desirable in its sole discretion; or (2) City is entitled (or, with the passage of time or giving of notice, or both, would be entitled) under this Agreement to exercise any remedies set forth therein as a result of any Event of Default; (3) DJ fails to sign the Minimum Assessment Agreement and provide Citywith the guaranty required by Section 1.4; or (4) There has been, or there occurs, a material adverse change in the financial condition of DJ, which change(s) make it substantially more likely, in the reasonable judgment of City, that DJ will be unable to fulfill its covenants and obligations under this Agreement. 2.5. Use of Tax Increments. DJ recognizes that City intends to utilize the Incremental Property Tax Revenues collected each year in respect of the DJ Development to pay debt service on the Bonds. Notwithstanding the foregoing, City shall be free to use any excess Incremental Property Tax Revenues not required for the satisfaction of the principal and interest payments on the Bond collected each year in respect of the DJ Development for any purpose for which the Incremental Property Tax Revenues may lawfully be used pursuant to the provisions of the Urban Renewal Act, and City shall have no obligation to DJ with respect to use thereof. 2.6. Limitation on City Funding, DJ acknowledges and agrees that it is the intent of the parties that City shall not incur any costs related in any way to the design, construction, or operation of the Public Parking Facility which are not paid for or reimbursed by DJ or financed with the Bonds. Anything in this Agreement to the contrary notwithstanding, DJ's obligation to pay costs and expenses in the event this Agreement is terminated prior to the award of a construction contract and the Public Parking Facility is not completed, shall be limited to the amount of City's contract with the Project Architect and City's contract with a review architect as provided in Par. 2.1. 020107ba1 7 ' SECTION 3. GENERAL TERMS AND CONDITIONS. 3.1. Conditions Precedent. If any of the following conditions has not occurred prior to the later of June 30, 2007, or the date set by the City Council for the award of a construction contract for the Public Parking Facility, but in no event later than December 31, 2007, either party may terminate this Agreement upon written notice to the other party. DJ's termination of this Agreement shall be its sole remedy. DJ shall not be entitled to reimbursement of any costs or damages incurred by DJ in connection with this Agreement. In the event DJ elects to terminate this Agreement, DJ shall reimburse City for all reasonable out-of-pocket costs ' incurred by City in connection with this Agreement and DJ shall reimburse City for all such costs within thirty days of receipt by DJ of City's statement of such costs, including appropriate documentation thereof. ' (1) City shall have obtained all required design approvals from the Design Review Committee for the Public Parking Facility and DJ shall have consented to such design, which consent shall not be unreasonably withheld. (2) DJ and the City shall have received all necessary approvals from any governmental agency, utility, lender, security holder or other party whose approval is required for the undertakings and obligations under this Agreement, specifically including, but not limited to approval of this Agreement by the Iowa Racing and Gaming Commission and a firm commitment from the Purchaser regarding its purchase of the Bonds on terms satisfactory to City and DJ. ' (3) City shall have received and DJ shall have approved, bids pursuant to which it can be determined that the Public Parking Facility can be designed and constructed for an amount equal to or less than the sum of the amounts to be provided by DJ ' under Section 1.2 and financed by City under Section 2.3. Additionally, all such costs of design and construction shall be supported by agreements with the contractors and other vendors that include a fixed price or have a guaranteed ' maximum price (GMP) that permits the Public Parking Facility to be constructed within the budget provided for herein, taking into consideration a 10% contingency for the costs of construction of the Public Parking Facility. The parties acknowledge that such fixed price or GMP shall be subject to change modifications or orders approved by City, provided that any change orders or modifications to such contracts that will result in the fixed price or the GMP, together with all previous change orders or modifications, exceeding 110% of the fixed price or the GMP, shall require the written consent of both City and DJ. (4) City and DJ shall have agreed upon the construction cost and timing of the construction of the Public Parking Facility. ' (5) DJ shall have signed the Minimum Assessment Agreement and provided City with a guaranty in a form acceptable to City for DJ's obligation to pay real estate taxes on the DJ Development. ' 020107ba1 g (6) Both parties are obligated to pursue all required approvals as expeditiously as possible and to negotiate in good faith to complete the execution of the agreements identified and required as conditions precedent to the other obligations set forth herein. 3.2. Cooperation by the Parties. City and DJ agree to cooperate in good faith in connection with the performance of all of the activities contemplated herein and to use all commercially reasonable efforts and diligence to promptly respond and perform the obligations provided for directly or indirectly by this Agreement. The parties agree and understand that it is their intent that the timing of the design and construction of the Public Parking Facility will be such that the completion and opening of the Public Parking Facility will coincide with the completion and opening of the DJ Development. The parties agree to use all reasonable effort and resources to assure that construction of the Public Parking Facility commences on or before August 1, 2007 and that the Public Parking Facility be completed and ready for use on or before, the later of August 1, 2008 or the opening of the DJ Development. In the event the Public Parking Facility is not substantiallycompleted and ready for use on such date, and such delay is due to a breach by the City of its obligations under this Agreement, the City shall pay to DJ an amount equal to $100 per day that the Public Parking Facility remains incomplete and unopened as liquidated damages for its breach of this Agreement. Additionally, the parties agree that the construction contract(s) shall include a liquidated damages provision that provides for the contractor to payto DJ the amount of $1,000 for each day the Public Parking Facility remains unfinished after the later of August 1, 2008 or the opening of the DJ Development. 3.3. Events of Default Defined. The following shall be Events of Default under this ' Agreement and the term Event of Default shall mean, whenever it is used in this Agreement, any one or more of the following events: ' (1) Failure by DJ to pay or cause to be paid, before delinquency, all real property taxes assessed with respect to the DJ Development. (2) Failure by DJ to cause the construction of the DJ Development to be commenced and completed pursuant to the terms, conditions and limitations of this Agreement. (3) Failure by DJ to substantially observe or perform anyother material covenant, condition, obligation or agreement on its part to be observed or performed under this ' Agreement. (4) Any default provided for under Sections 1.3, 1.5, and 1.6 above. ' 3.4. Remedies on Default by DJ. Whenever any Event of Default referred to in Section 3.3 of this Agreement occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to DJ of the Event of Default, but only if the Event of Default has not been cured within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and DJ does not ' 020107ba1 g provide assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may suspend its performance under this Agreement until it receives assurances from DJ deemed adequate by City, that DJ will cure its default and continue its performance under this Agreement; (2) Until June 30, 2007, City may cancel and rescind this Agreement; (3) City shall be entitled to recover from DJ the sum of all amounts expended by City in connection with this Agreement, and City may take any action, including any legal action it deems necessary, to recover such amounts from DJ; (4) City may take any action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement; (5) City shall have the right to impose such fees as City determines in its sole discretion for use of the Public Parking Facility. 3.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 3.6. No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ' 3.7. Additional Agreements. From time to time hereafter without further consideration, the parties agree to execute and deliver, or cause to be executed and delivered, such further agreements and instruments, and shall take such other actions, as any party may ' reasonably request in order to more effectively memorialize, confirm and effectuate the intentions, undertakings and obligations contemplated by this Agreement. 3.8. Counterparts. This Agreement maybe executed in any number of counterparts with the same effect as if the parties hereto had signed the same document. All such counterparts shall constitute one instrument. ' 3.9. Term. This Agreement shall continue in effect during the life of the Public Parking Facility. ' 020107ba1 10 ' 3.10. Additional Provisions. (1) It is hereby agreed and acknowledged that failure or performance of breach of agreement by any party hereto could result in irreparable harm to another party ' hereto. An action in equity and the relief of specific performance is therefore reserved to all parties hereto. ' (2) All exhibits attached to this Agreement are incorporated herein and made a part hereof by this reference. ' (3) Whenever the singular number is used in this Agreement, the same shall include the plural where appropriate and words of any gender shall include any other gender where appropriate. ' (4) All notices, demands, requests or other communications required or permitted by this Agreement shall be in writing and shall be deemed to be received when actually received by any person at the intended address if personally served or sent by courier or telex, or whether actually received or not, twenty-four (24) hours after the date and time of delivery to anationally-recognized courier, address as follows: ' To the City: City Manager City Hall 50 W . 13th Street Dubuque, IA 52001 Copies to: City Attorney ' City Hall 50 W. 13th Street Dubuque, IA 52001 To DJ:Attn. Natalie Schramm Diamond Jo, LLC 400 E. 3~d Street Dubuque, IA 52001 ' With copies to: Curtis E. Beason Lane & Waterman LLP ' 220 N. Main St., Ste. 600 Davenport,lA 52801 ' Any party may, in substitution of the foregoing, designate a different address or addresses within the continental United States for purposes of this section by written notice delivered to the other party in the manner prescribed, at least ten (10) days in ' advance of the date on which such change of address is to be effective. ' 020107ba1 11 (5) This Agreement embodies the entire agreement between and among the parties and may be amended or supplemented only by an instrument in writing executed by the parties hereto. (6) This Agreement may not be assigned without the written consent of all other parties hereto, which consent shall not be unreasonably withheld. Subject to the foregoing, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. (7) Time is of the essence in this Agreement and each and every provision contained herein. (8) In the event of a dispute arising between or among the parties hereto, each party shall be responsible for paying its own attorney's fees and court costs, if any, incurred in connection with such dispute. 1 (9) This Agreement shall be governed by the laws of the State of Iowa and shall be construed in accordance therewith and all of the rights and obligations hereunder shall be determined in accordance with the laws of the State of Iowa. All parties ' acknowledge that they have negotiated this Agreement in the City of Dubuque, Iowa and that the property at issue is located in the City of Dubuque, Iowa. (10) The parties hereto represent to each other that each has the full right, power and authority to enter into this Agreement and to fully perform its obligations. The persons executing this Agreement warrant and represent that each has the authority to execute in the capacity stated and to bind the parties herein. (11) No failure by any party hereto, at any time, to require the performance of any other party or any term of this Agreement, shall in any way affect the right of any party to enforce such terms, nor shall any waiver by any party of any term hereof be taken or held to be a waiver of any other provision of this Agreement. No waiver of ' any term or provision of this Agreement shall be effective unless the same is in writing, signed by the parties hereto. (12) City and DJ shall promptly record a Memorandum of Agreement in the form attached hereto as Exhibit H in the office of the Recorder of Dubuque County, Iowa. CITY OF DUBUQUE, IOWA ~, By: Roy D. ol, Mayor ,~~' eanne F. Schneider, City Clerk 020107ba1 12 ' DIAMOND J By: _ ' 020107ba1 13 1 t 020107ba1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 EXHIBIT LIST Exhibit A DJ Real Estate Legal Description Exhibit B Public Parking Facility Real Estate Legal Description Exhibit C Conceptual Description of Public Parking Facility Exhibit D Minimum Assessment Agreement Exhibit E Port of Dubuque Adams Development, L.L.C. and The Durrant Group, L.L.C. Proposal Exhibit F Guaranty Exhibit G Lease Agreement Between the City of Dubuque, Iowa and DJ Gaming Company, LLC, Exhibit H Memorandum of Agreement Exhibit I Public Parking Facility Concept Exhibit J Maintenance Services Agreement Exhibit K Operating Costs Exhibit L Par. 12 of the Development Agreement Between the City of Dubuque and The McGraw-Hill Companies, Inc. Exhibit M Escrow Agreement 020107ba1 15 1 Exhibit A ' DJ Real Estate Legal Description Lot 1 of Adams Company's 1St Addition, Lot 3 of Adam's Company 2"d Addition, and Lots 1 2, 3, and 4 of Adams Company 3~d Addition, in Dubuque County, Iowa. i t 020107ba1 16 1 Exhibit B Public Parking Facility Real Estate Legal Description Part of Lots 1 and 2 of Adams Com an 's 2"d Addition, in the Cit of Dubu ue Iowa P Y Y 4 t 1 t 020107ba1 17 ' Exhibit C Conceptual Description of Public Parking Facility t t 020107ba1 18 ,' '~~~ ~ rf t~ ~r ~~ti. ' ~ i Jp( _ _ _ _ . 1 .~..~ ~ 1 I, X11 Y ~ ~ ~ _ ~.. l I ___ y1 ( 1~ ~ j 'rI -- _ _ J 1 ~I'I Il ~1 I``_-_ __ - _ _ _-_ I ~.'_ _: _ ~ I ~ I --= _ _-__ ~~~ ~~ ~ ~ ~ i ~~~ ~ - 1 f ~ I ~~J; i ;4 ~ f ~~ 1 ~, ff ~~ a ~ j! ~_-___ - 1=--~-- --~~ --- -"---- I I ,f, ,1. ~~ 1 lei ~.~~ _ __~.~~. fJ(ffj _ lti_ '~~ J F ~ ~` .i=~ ,~y` `' ~~ C~r <'`~ I _ ,' ff. ~// ,~ _ ~ t_jff~ ~I_I~~-_._____._.L,`~`~ \~.:4`~~~`~~ ,4~'t`~ \~~\Y~* '~ ~:N. ~J ~~ F~c. ,~ %: euwwe ~ .. .. ~~ .. rn rl f~ O r-I O N O ~ ~ ~ r ~ r ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ -__-•' IT'-I'I III ~ - -- --_- _~_ ~ az~~~--~__~.~~~-` ~~~ ~~~~~ j i I I .. ~'r '~~~ r- r- ~~i I ' ~ ' 'i i ' , L+ I L _~ M1 i i - M1a. ~~'_r f' r Grp ~~~-~ 1'1'~'~ r rr- ~`x rrrr~~,~ ' `/f ~'~ F t f ' ~ rf - .~ ~ i r ' ~ :_. r,. ~~~,"' ~. t ;.;'/ ~,~ ~/~ - ; ,~: f'+_ ifs `.ti *. ~. :`\ _- tit 'J ;~ 1 - ~ ,~ = `; . __ ~,,~ f; - ~ - _ r,~ _ l 1 _ jI rf 11 ry _ ~~,. f~t ~ .- 1 ~' ~- r/ _ .r. ,~ 'i `~ .~i .~ ~r~~, : L -° 020107ba1 20 ~ i ~ r ~ ~ ~ ~ ~ ~ r r ~ ~ ~ ~ ~ r ~ 0 N O F-' O J Q1 ~-' N N [Jpl _ ~rrii~~ ~~~' _ _ ~•~~ u~tnua.• tt n.. ~. (j f ~ _~=-- -~C==_ __~_ j .a- -- _ - r I ._ • ~~ I ~ I~ ~ I _ ~ k } • f ~((II `,. 3^.J a' ! i T i~ -: p ) 1 H I I ~' I~ I I i .u I ,~ wr, T ... n A I I.. 11 I fi ~~,I,t•.'i•I I ~~ ' f•s j 135'~II3 1 i6'Aid ti _ „Ir a,C I I I I ®~ ~ I, .~ ~ --_ ...- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ 0 N O I--' O J - - -- IJ q8 - _ . ~ u.i n: ~r~ O II I~--- ------ -- -- I~~_~___, ~ --- _-- -- I I 1'~ I I ~ r III ! ~ I _-1 :1- I, F- - ~~ra~.:u,a f `~. ~ I~ _ ,, IJ dl .11.',1 I ~i ~ I . :. I I .~~..~r ~I __ I fill. ; :.r ' ~ ... ~. _.__ ~ Illlll..----~~~~------------- -wF~ ~ ~ -_ = -. NdHu ~;S - - - ~ -- - i -- t ~ _- ,- - -.. ~.1 e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r i ~ i ~ ~ ~ ~ ~ ~ 0 N O N O J ~S' Q1 I--' N w - - __ ,OB _ ... - .,,,, ,. <. ~ - - - - - ~ ~ ~--- - - i f~..-Y - -- - - - --- ~ ~ ~ 4° I ~ ~ ~ ~ ~ ~. i I_ +~~ P -~ - ~~ ~ 1_ ,, ~~ ~ ~ ~ '~I~i• ~i~~i~l illl~;r,ir,~.; ' f~ ~ iii I ,~ Jr~~.~,~, ~ 1 it ~ ~a ~~ _,.,:...~ ~ ~ ~ ~ e:IY{v:c7:.u~ I , ~ ~ _ . I i La •~ ~ r W ~ 1 .. .i - -~~ ^r ~ 1~Y~ I 0 N O I--' O J P~ I--' N ~A .08 - _. ~J M:1 ~~A-1w!.. c.. ~ 4 j _ __. _ _. _ - _I .. .. 1 1 ~ _ _. _ _ _... _ __ .. ~ 1, 1 i ~ I I /. ' ~ ~ i,y1~1;~IS ~ ' I .1 ~. .:.1 ~~. Y V:: _ x,. b ~ . .. i I { ,: a' ~ ~ ~ If ///r J I } ' `~, ~. Y ~ '~ ~ i 1 ~ /...- E i / ~ ' ,~ _._ , fi ~ ti,~ 1 ~ ,. ''~ _ ~,.~ ' I rv lC~.i.: , ice,'. n f~. .~,.~ Cif .. .S i - ~ 'I ~' -r 1~- - -- ~ ~ `/ ~ ~ 1 __ Exhibit D Minimum Assessment Agreement Prepared by Barry A. Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 Return to Barry A. Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 MINIMUM ASSESSMENT AGREEMENT CITY OF DUBUQUE, IOWA City of Dubuque, Iowa THIS AGREEMENT, dated for reference purposes the day o1 2007, by and among the City of Dubuque, Iowa (City), Diamond Jo, LLC (DJ), and the City Assessor of the City of Dubuque (Assessor). WHEREAS, on or before the date hereof City and DJ have entered into the Dubuque Port of Dubuque Public Parking Facility Development Agreement (the Agreement) regarding certain real property (the DJ Development Real Estate) described in Exhibit A attached hereto, located within the City of Dubuque; and WHEREAS, it is contemplated that DJ will undertake the development of an area (the DJ Development) within the Port of Dubuque by the construction of a new casino facility on the DJ Development Real Estate as provided in the Agreement; and WHEREAS, pursuant to Section 403.06 of the Iowa Code, as amended, City and DJ desire to establish a minimum market value for the DJ Development and the DJ Development Real Estate, which shall be effective upon substantial completion and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum market value of the DJ Development and the DJ Development Real Estate; and ' WHEREAS, City and Assessor have reviewed the preliminary plans and the specifications for the DJ Development and the DJ Development Real Estate which it is contemplated will be erected. ' 020107ba1 25 NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 1) Upon substantial completion of construction by DJ of the DJ Development and the DJ Development Real Estate, the minimum market value which shall be fixed for assessment purposes for the DJ Development and the DJ Development Real Estate Property described in Exhibit A attached hereto, together with the Minimum Improvements to be constructed thereon by Developer shall be not less than dollars ($ ), until termination of this Agreement. The parties hereto expect that the construction of the DJ Development will be substantially completed on or before the day of , 20_. 2) The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the day of , 20_, the final date of the City's obligation to pay interest or principal with respect to the indebtedness incurred in support of the project. In the event said indebtedness had not been fully paid as to principal and interest as of . 20 ,this Agreement shall continue in effect for such additional time as shall be required therefore, but not later than , 20 3) This Agreement shall be promptly recorded by City and DJ prior to the recording of any mortgage on the DJ Development Real Estate. DJ shall pay all costs of recording. 4) Neither the preambles nor provisions of this Agreement are intended to, nor shall be construed as, modifying the terms of the Dubuque Port of Dubuque Public Parking Facility Development Agreement between City and DJ. ' 5) This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 020107ba1 26 THE CITY O sy: Roy C ATTEST By. , DIA By: UBUQ E, IOWA ~~ aol, Mayor F. Schneider, City Clerk The undersigned assessor, being legally responsible for the assessment of the above described property upon completion of the improvements to be made on it, certifies that the actual value assigned to that land and improvements upon completion shall not be less than Richard Engelken, City Assessor 020107ba1 27 Exhibit E Port of Dubuque Adams Development, L.L.C. and The Durrant Group, L.L.C. Proposal [Separate document not inserted here] ' 020107ba1 28 ' 020107ba1 Exhibit F 29 1 Prepared by Barry A. Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 Return to Barry A. Lindahl, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563.583.4113 GUARANTY THIS GUARANTY is given this day of , 2007, by Peninsula Gaming, LLC (hereinafter referred to as "Guarantor"). W ITNESSETH: WHEREAS, Guarantor owns all of the issued and outstandin membershi interests g P of Diamond Jo, LLC ("DJ"); WHEREAS, DJ has entered into the Port of Dubuque Public Parking Facility Development Agreement (the "Development Agreement") between the City of Dubuque, Iowa ("City") and DJ; WHEREAS, as part of the Development Agreement, DJ is agreeing to a minimum assessment agreement on the DJ Real Estate, including the DJ Development (as those terms are defined in the Development Agreement) and has agreed to pay all propertytaxes I assessed against the DJ Real Estate; and WHEREAS, pursuant to section 1.4 of the Development Agreement and in consideration for the City entering into the Development Agreement, Guarantor is required to guaranty the payment of all property taxes assessed against the DJ Real Estate. NOW, THEREFORE, the Guarantor hereby agrees as follows: SECTION 1. REPRESENTATIONS AND WARRANTIES OF GUARANTOR. Guarantor hereby represents and warrants that: 1.1 It is not in violation of any provision of the laws of the States of Iowa or any other State in which it currently conducts business. 1.2 It has the power and authority to execute, deliver and perform this Guaranty and 1 enter into and carry out the transactions contemplated herein which are not in contravention of, and do not and will not constitute a default under or conflict with or violate any indenture, mortgage, deed of trust, guaranty, lease, agreement or other instrument to which the Guarantor or DJ are a party or by which they or their property is bound or any law, administrative regulation, court order or consent decree. 1.3 This Guaranty has been duly authorized, executed and delivered by the Guarantor and all steps necessary have been taken to constitute this Guaranty, when duly executed and delivered, a legal, valid and binding obligation of the Guarantor. 020107ba1 30 1 1.4 This Guaranty is made in furtherance of the purposes of the Guarantor and that the assumption by the Guarantor of the obligations of DJ hereunder will result in direct financial benefits to the Guarantor. SECTION 2. COVENANTS AND AGREEMENTS. 2.1 Unconditional Guarant Guarantor hereb unconditional) and irrevocabl ~ v Y v 1 guarantees to the City the prompt and complete payment of all real property taxes and assessments payable by DJ in accordance with the terms of Section 1.8 of the Development Agreement and the Minimum Assessment Agreement as and when said payments are therein required to be made. 2.2 Guaranty to Remain in Force Until Bonds are Paid. The obligations of Guarantor under this Guaranty shall be absolute, unconditional and irrevocable and shall remain in full force and effect until the Bonds described in Section 2.3 of the Development Agreement are paid in full, and such obligations shall not be affected, modified or impaired upon the happening from time to time of any event, including without limitation any of the following, whether or not with notice to, or the consent of, Guarantor: (a) the compromise, settlement, release or termination of any or all of the obligations, covenants or agreements of City under the Development Agreement; (b) the failure to give notice to Guarantor of the occurrence of an event of default under the terms and provisions of this Guaranty or the Development Agreement; (c) the waiver of the payment, performance or observance by City or Guarantor of any of the obligations, covenants or agreements of them contained in the Development Agreement or this Guaranty; (d) the extension of the time for performance of any obligation, covenant or agreement under or arising out of the Development Agreement or this Guaranty or 1 the extension or the renewal of either thereof; (e) the modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth in the Development Agreement; (f) the taking or the omission of any of the actions referred to in the Development Agreement and any actions under this Guaranty; (g) any failure, omission, delay or lack on the part of City to enforce, assert or ' exercise any right, power or remedy conferred on the City in this Guaranty or the Development Agreement, or any other act or acts on the part of City; ' (h) the voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshaling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition with creditors or readjustment of, or other similar 020107ba1 31 t t 1 1 t 1 t proceedings affecting DJ or City or any of the assets of them, or any allegation or contest of the validity of the Development Agreement in any such proceeding; (i) to the extent permitted bylaw, the release or discharge of Guarantor from the performance or observance of any obligation, covenant or agreement contained in this Guaranty by operation of law; (j) any merger or consolidation involving the Guarantor or the transfer by the Guarantor of all or substantially all of its assets; (k) the default or failure of Guarantor fully to perform any of his obligations set forth in this Guaranty, provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not be deemed to exclude any other acts, failures or omissions, though not specifically mentioned above, it being the purpose and intent of this paragraph that the obligation of Guarantor shall be absolute, unconditional and irrevocable to the extent herein specified and shall not be discharged, impaired or varied until the Bonds described in the Development Agreement are paid in full. Without limiting any of the other terms or provisions hereof, it is understood hereunder, there shall be no obligation on the part of the City to resort in any manner to any other person, firm or corporation, their properties or estates. 2.3 Liability Not Affected by Bankruptcy. Without limiting the foregoing, it is specifically understood that any modification, limitation, or discharge of the liability of DJ under the Development Agreement or of the liability of the Guarantor hereunder arising out of or by virtue of any bankruptcy, arrangement, reorganization or similar proceeding for relief of debtors under Federal or State law hereafter initiated byor against the Guarantor or DJ shall not affect, modify, limit, or discharge the liability of the Guarantor hereunder in any manner whatsoever and this Guaranty shall remain and continue in full force and effect and shall be enforceable against the Guarantor to the same extent and with the same force and effect as if any such proceedings had not been instituted; and it is the intent and purpose of this Guaranty and the Guarantor shall and does hereby waive all rights and benefits which might accrue to it by reason of any such proceeding and the Guarantor agrees that it shall be liable to the City as provided herein, irrespective and without regard to any modification, limitation, or discharge of the liability of the Guarantor that may result from any such proceeding. 2.4. Right to Proceed Against Guarantor. In the event of a default under Section 3.3(1) of the Development Agreement, the City, in its sole discretion, shall have the right to proceed first and directly against Guarantor under this Guaranty without proceeding against or exhausting any other remedies which it may have under the Development Agreement or otherwise and without resorting to any other security held by the City. 2.5. Waiver of Notice and Reliance on Guaranty. Guarantor expresslywaives notice from the City of its acceptance and reliance on this Guaranty. Guarantor agrees to pay all costs, expenses and fees, including all reasonable attorneys' fees, which may be incurred in enforcing or attempting to enforce this Guaranty following any default on the part of Guarantor hereunder, whether the same shall be enforced by suit or otherwise. 020107ba1 32 SECTION 3. MISCELLANEOUS. 1 3.1 This Guarant shall be construed in accordance with and overned b the laws of the Y 9 Y State of Iowa. 3.2 This Guaranty is entered into pursuant to the Section 1.4 of the Development Agreement. Capitalized terms not otherwise defined herein shall have the meanings provided in the Development Agreement. 1 3.3 In the event of a default by DJ under its obligation to pay property taxes under the Development Agreement for which the Guarantor has provided this Guaranty, the Guarantor expressly reserves and shall be entitled to all defenses, claims and other rights of DJ 1 against the City or any other party. 3.4 Nonexclusive Remedy: Notice: Waiver; Amendment. No remedy herein conferred ' upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Guaranty or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default, omission or failure of performance hereunder shall impair any such right or power or shall be construed to be a waiver thereof; but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved to it in this Guaranty, it shall not be necessary to give any notice, other than such notice as may be herein expressly required. In the event any provision contained in this Guaranty should be breached by Guarantor and thereafter duly waived by the City, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. No waiver, amendment, release or ' modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the City. 3.5 Entire Agreement. This Guaranty constitutes the entire agreement and supersedes all prior agreements between the parties with respect to the subject matter hereof and may be executed simultaneously in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 3.6 Severabilitv. The invalidity or unenforceability of any one or more phrases, sentences, clauses or Sections in this Guaranty shall not affect the validity or enforceability of the remaining portions of this Guaranty, or any part thereof. 1 3.7 Release. Following the final payment of the Bonds, this Guaranty shall by its terms terminate and, upon request by Guarantor, the City shall release Guarantor from the provisions of this Guaranty in writing. IN WITNESS WHEREOF, the Guarantor has executed this Guarantyon the dayand year first above written. 020107ba1 33 t t t t GUARANTOR: PENINSULA GAMING, LLC By: STATE OF IOWA ) SS COUNTY OF DUBUQUE ) On this day of , 2007, before me the undersigned, a Notary Public in and for said County, in said State, personally appeared to me personally known, who, being by me duly sworn, did say that said person is the Guarantor, that the instrument was signed on behalf of the Guarantor, and that he acknowledged the execution of the instrument to be the voluntary act and deed of the Guarantor, by it and by voluntarily executed. Notary Public in and for said County and State 020107ba1 Notary Public in and for said County and State 34 ' Exhibit G Lease Agreement ' Between the City of Dubuque, Iowa and ' Peninsula Gaming Company, LLC, t t t 020107ba1 35 t 1 t ~• ~~ .. LEASE AGREEMENT BETWEEN THE CITY OE DUBUQUE, IOWA AND PENINSULA GAMING COMPANY, L.L.C. THIS LEASE AGREEMENT, executed in duplicate, made and entered into this 1 stday of June, 2005 by and between THE CITY OF DUBUQUE, IOWA (hereinafter called the "Landlord"} whose address for the purpose of this Lease Agreement is Ctty Nall, 50 West 13th Street, Dubuque, Iowa 52001 and PENINSULA GAMING COMPANY, L.L.C. (hereinafter called the "Tenant"} whose address for the purpose of this Lease Agreement is 3rd Street -Ice Harbor, Dubuque, kriva 52001. 1. PREMISES AND TERM.- The Landiorrl, in consideration of the rents herein reserved and bf the agreements and conditions herein contained; on the part of the Tenant to be kept and performed;.leases unto the Tenant and Tenant hereby rents and' leases from Landlord, according to the terms and provisions herein, the following described real estate, situated in Dubuque County, Iowa, to wit: The patio area (Parcel B) as-shown on Exhbit A attached hereto (but specifically excluding the hydraulic lift located on Lot B) and.by this reference made a part hereof (the Leased Premises), legally described as a part•of Lot 8 of Ice Harbor Development, according to the recorded plat thereof, j . with the improvements thereon and ail rights, easements and appurtenances fhereto belonging, far a 'term commencing at midnight of the day previous to the fist day of the lease term, which shall be on the 1 ~ day of June, 2005, and ending at midnight on the last day of the lease term, which shall be on the 31st day of December, 2018, upon -the condition that the Tenant pays rent therefore, and otherwise performs as in this Lease Agreement provides. The Landlord reserves unto itself .a non-exdusive, perpetual Public Access - Easement, to run with the land, as shown on Exhibit A, far itself anal for public pedestrian access, said access to remain opals, clear and unobstructed at all times except as may be otherwise agreed to in writing by the Landlord. Tenant agrees that its rights under the Revised Ice Harbor Parking Agreement for Ice Harbor Urban Renewal District are terminated upon execution of this Agreement. Landord hereby grants to Tenant; its managementemployees and patrons during the term of this Agreement tl~e non-exGusive privilege to park in Parking Lots 1 and 2 shown on Exhibit A at no additional charge. (other than the rent herein) to Tenant, its management employees or patrons. Tenant agrees that Tenant will require that all of its employees shaA park only in parking lots awned by Tenant or in a chy-owned parking garage. Page 1 of 25 020107ba1 36 t 1 ~ ~ . Landlord hereby grants to Tenant permission, subject to such otherpermissivn as maybe required by any other governmental entity, tp construct a two-story {not to exceed the. height of the existing portside facility) barge {as defined by Iowa Code Chapter 99F (20Q5} to extend not more than the maximum permitted by the United States Coast Guard and/or the United States Army Corps of Engineers but in no event more than 150 feet from ' Tenant's current dock facili#y into the Ice Harbor. Landlord agrees to cooperate with and support Tenant's application to.othergovemmental entities for any required permission for such barge. In the event Tenant constructs such barge, the area upon which such barge ' is located shall become a part of the Leased Premises. 2. RENTALAND COMPENSATION FORPARKlN~G PRIVILEGES IN LOTS 1 AND 2. Tenant agrees to. pay to Landlord as rental and compensation for the non-exclusive parking privileges for Lots 1 and 2 #or said term, as follows: {a) Rental. $ 25,000.00 per year in. advance, upon full execution- of this lease Agreement, and $25,OODAO on the first day of June of each year thereafter, adjusted as follows: First Year of Lease term {2005-2006): $ 25,000.00 Second Year of Lease Term (200fi-2007): $25,000.00 ~ ~ 1 Third Year of Lease Term (2007-2008}: $25,000.00 ' Fourth Year of Lease Terra (2008-2009): $25,000.00 Fifth Year of Lease Term. (2009-2010}: $25,000.00 ' Sixth Year of Lease Term (2010-2011): $ 25,000.00 x COL Index June 1, 2010 ' COL Index June 1,.2009 Seventh Year of Lease Term (2011-2012}: ' $ 25,000.00 x COL Index June 1, 2011 ' COL Index June 1, 2009 Ei hth Year of L T 2012 201.3 g ease erm ( - }: ' $ 25,000.00 x COL Index June 1, 2012 COL I J d 1 200 j n ex une ; 9 Page 2 of 25 ' 020107ba1 37 t ,~ ! Nin#h Year of Lease Term. (2013-2014}: $ 25,x00.00 x COL Index June 1, 2013 COL Index June 'I, 2009 Tenth Year of Lease Term (2014-2015}: $ 25,000.00 x COL index June 1, 2014 COL Index June 1, 2009 Eleventh Year of Lease Term (2015-2016): ,__ $ 25,000.00 x COL Index June 1; 2015 .COL index June 1, 2009 Twelfth Year of Lease Term (2016-2017): $ 25,000.00 x COL Index June 1, 2016 COL Index June 1, 2009 Thirteenth Year of Lease Term (2017-2018): $ 25,000.00 x COL Index June f, 20'17 COL Index June 1, 2009 Fourteenth Year of Lease Term (June i:, 2018 -December 31, 2018): $ 25,000.00 x COL index June 1, 2018 (prorated} COL Index June 1,2009 COL Index means the Consumer Price Index for •a!1 items. for All Urban Consumers-U.S. City Average, published by the U.S. Department of Labor, Bureau of Labor Statistics. (b} Parking. $225,000.00 per year at the rate of $18,750.00 per month beginning on the 1" day of January 2009, and. on the first day of each month thereafter, adjusted as follows: First Year of Lease Term (2005-2008): $ 0 Page 3 of 25 020107ba1 38 i Second Year of Lease Term (2006-2007): $ 0 Third Year of Lease Term (2007-2008): $ 0 Fourth Year of Lease Term (2008-2009): $ 0 Fifth Year of Lease Term (2009-2010): $225,000.00 Sixth Year of Lease Term (2t)10-2011): $ 225,000.00 x COL Index June 1, 2010 COL Index June 1, 2009 (base year) Subsequent years of the lease Term shall be adjusted by the COL Index in the same manner, using 2009 as the base year. (c) Parking. Fn the event, however, that Tenant expands its facilities as provided in the Eleventh Amendment to the Operating 'Agreement between the Dubuque Racing Association and Tenant, dated the 31~ day of May, 2005, Tenants payment to Landlord under this Par. 2(b) shall be as follows: 5475,000,00 peg year at the rate of $39,583:33 per month beginning on the 1 ~ day of the operation of such new facilities, and on the fret day of each. month thereafter, adjusted by the COL Index in the manner provided in (a} and (b) using the year priorto the first year of the operation of the new facilities as the base year. ' -Ali sums shall be paid at the address of Landlord, as above. designated, or at such other place in Iowa, or elsewhere, as the Landlord may, from time to time,.designate in writing, 3. POSSESSION. Tenant shall be entitled b possession on the first day of the tens of this Lease Agreement, and shall yield possession to the Landlord at the time and date of the dose of this lease term, except as herein otherwise expressly provided. Should Landlord be unable to give possessbn on said data, Tenants only damages sha[I be a rebating of the pro rata rental. 4. USE OF PRE~AISES. It is contemplated between the parties that the Demised Premises shall be used by Lessee far concerts (primarily but not limited to Wednesdays and Fridays), entertainment and food service to the customers of Lessee and other members of the public and tha# attendance at some of the events wilt require an admission fee or other charge and some will be without charge. Lessee shall have the right, at its option, during the term of this ~ Lease, to use the Improvements (as defined below) and the Demised Premises in any Page 4 of 25 ' 020107ba1 39 ' Exhibit H Memorandum of Agreement 020107ba1 40 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT The PORT OF DUBUQUE PUBLIC PARKING FACILITY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DIAMOND JO, LLC (the Development Agreement) was made regarding the following described premises: The Development Agreement is dated for reference purposes the day of ' , 20_, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this day of , 20_ CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor By: Jeanne F. Schneider, City Clerk ' 020107ba1 41 ' STATE OF IOWA ' ss: DUBUQUE COUNTY ' On this day of , 20_, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Roy D. Buol and Jeanne F. Schneider, to ' me personally known, who being by me duly sworn did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of ' said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal ' Corporation by it voluntarily executed. Notary Public, State of Iowa ' 020107ba1 42 ' Exhibit I Public Parking Facility Concept 1 ' 020107ba1 43 t 1 1 1 1 1 1 1 1 1 1 1 1 1 020107ba1 -~ -~-~ ~~~-~ ~ -- 44 1 Exhibit J Maintenance Services Agreement 1 t t ' 020107ba1 45 1 MAINTENANCE SERVICES AGREEMENT 1 BETWEEN THE CITY OF DUBUQUE, IOWA AND DIAMOND JO, LLC This Agreement is made this day of 2007, between the City Of Dubuque, Iowa (City), and Diamond Jo, LLC, (DJ). Whereas, City and DJ have entered into the Port of Dubuque Public Parking Facility 1 Development Agreement (the "Development Agreement") dated , which in part provides for City to design, develop, finance, construct, own, and operate a parking ramp (the Public Parking Facility); and Whereas, City will design, develop, finance, construct, own, and operate the multi- level Public Parking Facility; and Whereas, DJ has agreed to pay the reasonable and necessary operating costs incurred by City for the operation, security, repair, and maintenance of the Public Parking Facility; and Whereas, Paragraph 1.3(3) of the Development Agreement provides that following the opening of the Public Parking Facility, City will contract with DJ at a total cost of $1.00 per year, for the maintenance and security requirements of the Public Parking Facility and DJ agrees that City may in its sole discretion, with or without cause, terminate this Agreement and provide such reasonable and customary services with its own staff or contract with a third party for such services, all costs for which DJ shall reimburse City as provided in this Agreement and the Development Agreement; and that if Cityterminates the Agreement, City shall purchase from DJ any equipment at its depreciated value purchased Whereas, pursuant to the Development Agreement the DJ has requested to provide the maintenance and security requirements for the Public Parking Facility as further provided herein. 1 IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: SECTION 1. PURPOSE AND DESCRIPTION. DJherebyagreestoprovidethemaintenance and security for the Public Parking Facility according to the terms and provisions of this Agreement. SECTION 2. TERM OF AGREEMENT. The term of this Agreement shall commence upon the opening of the Public Parking Facility and shall continue for a five (5) year period unless either party provides the other with notice of termination not less than one hundred eight (180) days prior to the end of the then current term; provided that, the City may terminate this Agreement at its sole discretion, with or without cause or the occurrence of an event of default at any time on not less than thirty (30) days written notice to DJ. 1 020107ba1 46 by DJ for its maintenance and security requirements under the Agreement; and 1 SECTION 3. COMPENSATION. As compensation for the services performed hereunder, DJ shall be paid $1.00 per year. 1 SECTION 4. MAINTENANCE AND OPERATION. 4.1. Maintenance. DJ shall perform the following maintenance on the Public Parking Facility: (1) Regular and routine maintenance of the Public Parking Facility shall be ' performed, which shall include, but not be limited to, daily pickup of trash and debris, daily cleaning of lobbies on all floors, all stairs, landings, elevators, and restrooms, replacing of lamps and restroom supplies (lamps, disposable restroom supplies, general lawn care, maintenance, and replacement of landscaping, and cleaning supplies shall be furnished by DJ) and other routine care of the Public Parking Facility. t (2) Necessary special maintenance operations as circumstances require shall be performed, including, but not limited to, removal of snow, ice and slush from entrances, exits, steps and sidewalks, general lawn care and maintenance of the landscaping. Snow and ice removal is to be completed by 8:00 a.m. each day and as soon as precipitation ends at other times of the day. The top parking level, including all exposed parking areas, is to be cleared after precipitation ends. All snow piles shall be removed from the Public Parking Facility within twenty-four (24) hours after snowfall ends j (3) Sweeping and cleaning of the Public Parking Facilityon an as needed basis but not less than monthly. (4) All preventive maintenance described on the attached Exhibit A at the times indicated therein. (5) DJ shall purchase or lease all equipment necessary to provide the services herein. 4.2. Services. DJ shall provide and perform the following services for the Public Parking Facility: (1) All necessary utilities shall be maintained at control levels as approved by City and shall be paid by the DJ. (2) Security services including, but not limited to as follows: (i) providing assistance to Public Parking Facility tenants with problems in entering and eating the Public Parking Facility; (ii) monitoring and responding to all security equipment; (iii) maintaining an emergency plan covering emergencies occurring in the I Public Parking Facility (iv) routine patroling of the Public Parking Facility by security 1 020107ba1 47 I ersonel; v) monitorin of securi cameras (which shall also be monitored at the P ( 9 tY 911 Emergency Communications Center); and (vi) such other security measures as the City shall reasonably require. (3) Such other services as City may reasonably require from time to time that are necessary to maintain and operate the Public Parking Facility in a manner consistent with the standards of operation of other parking Public Parking Facilityfacilities in the City of Dubuque. SECTION 5. RIGHT TO INSPECT AND MAKE REPAIRS. 5.1. City shall have the right any time to: ' (1) Inspect the Public Parking Facility. (2) Perform maintenance and make repairs and replacements in anycase where DJ is obligated to do hereunder and where DJ has failed, after reasonable notice, to do so, in which event DJ shall reimburse City for the cost thereof, promptly upon demand. (3) Perform maintenance and make repairs and replacements in anycase where City determines that it is necessary or desirable, to do so, in order to preserve the safetyof the faalities orto correct any condition likely to cause injury or damage to persons or property. r SECTION 6. STANDARDS OF SERVICE. It is the policy of City that the Public Parking Facility shall be operated in an efficient manner, giving the best possible service to the public. DJ agrees to cooperate at all times in support of this policy and to manage and operate the Public Parking Facility in-accordance with the terms and conditions of this Agreement. SECTION 7. INSURANCE REQUIREMENTS 7.1. DJ shall acquire and maintain at its own expense insurance as set forth in the attached ' Insurance Schedule as such schedule may from time to time be amended by City. 7.2 Before assuming operation of the Public Parking Facility, DJ shall submit to City certificates of insurance required under this Section. 7.3 City shall provide general liability insurance coverage for City, its officers and employees, and fire and casualty insurance coverage forthe Public Parking Facility, which shall be included as operating costs paid by DJ. SECTION 8. PAYMENT OF EXPENSES. All operating costs for the Public Parking Facilityshall be paid by DJ as provided in Section 1.3 of the Development Agreement. Capital maintenance items shall be paid from the Sinking Fund described in Section 1.5 of the Development Agreement. SECTION 9. ASSIGNMENT. DJ shall not, at any time, assign this Agreement or any part hereof, without the prior written consent of City. 020107ba1 48 SECTION 10. GENERAL PROVISIONS. j 10.1. Compliance With Law. DJ shall comply, at all times during the term of this Agreement, with all applicable ordinances and laws of the City of Dubuque, county, or state govemment or of the United States Govemment, and of any political division or subdivision or agency authority or commission thereof that may have jurisdiction to pass laws or ordinances with respect to the Public Parking Facility. 10.2. Reservation Of Rights. Any and all rights and privileges not granted to DJ by this Agreement are hereby reserved for and to City. t 10.3. GovemingLaw.ThisAgreementandalldisputesarisinghereundershall be governed by the laws of the State of Iowa. 10.4. Nonwaiver Of Rights. No waiver of default by either party of any of the terms, covenants, and conditions hereof to be performed, kept, and observed bythe other partyshall be construed as, or shall operate as, a waiver of any subsequent default of any of the terms, covenants, or conditions herein contained, to be performed, kept, and observed by the other party. 10.5. Severability. If one or more clauses, sections, or provisions of this Agreement, or the application thereof, shall be held to be unlawful, invalid, or unenforceable, the remainder and application hereof of such provision shall not be affected thereby, provided, however, that if ' any provisions herein allowing termination of this Agreement by City in its sole discretion shall be held to be unlawful, invalid, or unenforceable, then this entire Agreement shall be void. 10.6. Paragraph Headings. The paragraph headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this Agreement. t 10.7. Force Maieure. Neither partywill be liable for delays in performance caused byacts of God or govemment authority, strikes, or labor disputes, or othercause beyond the reasonable control of 1 that party. 10.8. Entire Agreement. This Agreement, together with all the Development Agreement and exhibits attached hereto and thereto, constitute the entire Agreement between the parties hereto, and all other representations or statements heretofore made, vernal, or written, are merged herein, and this Agreement may be amended only in writing, and executed by d u I y authorized representatives of the parties hereto. 10.9. Partnership Disclaimer. It is mutuallyunderstood that nothing in this Agreement is intended or shall be construed as in any way creating or establishing the relationship of partners between the parties hereto. 10.11. Agreement Construction. Words and phrases herein shall be construed as in the singular or plural, number, and a masculine, feminine, or neuter gender, according to the context. 020107ba1 49 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OFD BUQU , IOWA By: Its 020107ba1 50 D B~ Its 1 EXHIBIT A j MAINTENANCE SCHEDULE t t t 1 020107ba1 51 EXHIBIT A 1 PREVENTATIVE MAIN TENANCE REQUIREMENTS t t t 020107ba1 52 t ' INTRODUCTION This plan is intended to assist those involved in establishing and funding an operating maintenance program for the Port of Dubuque ramp. The maintenance program is divided into three categories: Operational: Most maintenance is provided by onsfte daily employee(s). Some maintenance is provided by professionals, usually under a maintenance contract. This work maintains the routine operation of the facility. Aesthetics: Partially provided by onsite daily employee(s) and partially by an outside professional. This work addresses primarily the appearance of the facility. Structural: Initial observations provided by onsite daily employee(s) augmented by professional i ti nspec on and maintenance. This work addresses the long tenn structural integrity of the facility. A chart establishing a maintenance schedule with required daily, weekly, monthly, quarterly, semi-annual, and annual maintenance tasks is provided. t t 1 t t ' 020107ba1 53 ' PREVENTATIVE MAINTENANCE PROGRAM Operational and aesthetic maintenance is ongoing and must be planned for in the operational budget. With good operational maintenace, electrical, mechanical, and structural repairs should be required less often. Good preventative maintenance reduces major repairs and therefore should be planned for. Operational maintenance must tie in the daily routine of the onsite personnel. Poor operational maintenance can lead to costly repairs, can cause unsafe and unsightly conditions, and can even ' close the facility. Operational maintenance involves all building systems: cleaning floors, walls, windows, lobbies, etc., door and hardware operation, electrical and mechanical systems, parking control systems, plumbing and drainage systems, roofing and waterproofing, safety equipment, and ice or snow removal. ' One of the most overlooked and least scheduled operations is cleaning. Proper cleaning not l k on y eeps the facility aesthetically pleasing, it reduces future structural repairs. In the winter, chlorides, or salt, are brought into the facility from the snow on the streets and sidewalks. This chloride will produce future corrosion of embedded reinforcing and post tensioning steel. Simple floor washing minimizes the amount of chloride absorbed into the concrete, thus reducing future deterioration caused by the corrosion of the steel. Critipl areas, such as flat areas, entrance ramps and drive aisles must be flushed regularly. Full sized power washing equipment works best and should be scheduled at least quarteriy. Routine floor sweeping also reduces future damage by unblocking drains and allowing water to freely flow to the drains and evaporate as quickly as ' possible. A solid plan for snow and ice removal is paramount. Improper application of de-icing chemicals can cause extensive structural damage, damage to metal doors and frames, and even damage ' to the landscaping. It is important to minimize the use of any de-icing chemicals during the first two years of a structure until is has obtained its full durability, however, use of sand is prohibited. De-icing products must be ' approved by the Parking System Supervisor. Expansion joints can be damaged by snow plows, shovels, and ice scraping tools. The snow plow operator must be familiar with the facility and must raise his plow at the exposed expansion joint. The plow should approach the joint at an angle rather than straight on. This will reduce the chance of catching the joint on the edge of the plow. It may be helpful to place a colored flag or wall marking adjacent to the joint for easy indentification. Snow and ice removal around drains is of utmost importance. Daily observation and cleaning should ' be scheduled as the ice and snow melt to prevent drain blockage. Snow plowing must be carefully controlled on the top deck of the ramp. It is common for snow plow operators to pile the snow on one side or in one comer. Piled snow will overload the structure. A plowing pattern and a plan of removal must be developed to prevent overloading. This may inGude side ch t ' u es, an open area for dumping the snow over the side of the ramp, the use of an open bed truck for removal, or Dosing the top deck during heavy snow. Operational maintenance and regularly scheduled professional preventative maintenance on ' electrical, elevator, mechanical and plumbing systems, parking control, and security systems will reduce unexpected breakdowns. Routine plans for proper oiling, greasing, belt replacement, etc. should be carried out in accordance with manufacturer's recommendations. All equipment requiring professional preventative maintenance should be on contrect for services. Before the onset of winter, ' 020107ba1 54 water pipes, sprinklers, hosebibs, and drain lines must be either drained of water or their heating ' systems must be checked for good operation. Heat tapes, if used, must be checked regularly during continuous operation. Aesthetic maintenance is necessary for an attractive, well maintained appearance. Some operational maintenance, such as regular sweeping and Leaning also become aesthetic ' maintenance. Signs, graphics, and paint quality should be routinely examined for good appearance. Choosing the correct paint for painted concrete surfaces is essential for long lasting paint and for the protection of the concrete. Water based latex paints should always be chosen to be applied to concrete. Latex paints remain breathable in service. Paints such as polymer paints are not breathable and will peal off when moisture evaporates out of the concrete. Oit based paints are somewhat breathable, however the natural alkalinity of concrete tends to deteriorete the paint more rapidly than latex paint. Metal surfaces should be painted with enamel paints or zinc-rich paints. Enamel paints are the best general purpose paints for metal surfaces while zinc-rich paints are ' best for high humidity areas or as a primer on exposed steel surtaces. Good surface preparation inGuding removal of dirt, oil, grease, and surface contaminants must always be done before any paint is applied. For metal surtaces, existing rust should be scraped to clean metal and primed before final coating. All paints should be applied above 50 degrees. Paint should not be applied late in the day when conditions would allow condensation to occur at night, or when rain is expected. Structural examination begins with routine observation by the onsite personnel and is augmented by a structural engineer if deterioration is noticed. Biennial examination by a structural engineer is recommended until the structure is appoximatety 10 to 15 years old. After that, annual examination is recommended due to the higher incidence of deterioration. ' Onsite personnel should be made aware of how to recognize structural deterioration and should notify property management if any is observed. Property management personnel should know whom to contact if deterioration is observed. Life expectancy of materials must also be accounted for when considering long maintenance budgeting. The life expectancy of most of the equipment will be in order of 20 years, at which time equipment must be replaced; the I'rfe of roofing and plaza waterproof membranes will also be 20 years; the life of the traffic bearing membrane will be approximately 10 years; the life of window ' sealants will be approximately 20 years; the life of the building sealants, i.e. caulking, will be approximately 8 to 10 years; and the life of the concrete floor sealer is 5 years. The following chart shows the frequency of performing the required maintenance. In the chart, "R" denotes the recommended frequency, "M" denotes the bare minimum frequency, "P" denotes a required professional inspection. For those tasks with "M" only, the minimum frequency is also the recommended frequency. t ' 020107ba1 55 Maintenance task F uenc D W M Q S A N Daly, Weekly, Monthly. Quarterly, Semiannually, Annualy, Note number OPERATIONAL 1. Cleanin Swee in local areas R M Com late ram swee down R M Swee debris that collects in ex ansion 'Dints R M Em trash cans R M Clean restrooms M Cashier booths -floors, fixtures R M walls, windows R M Elevators -floors, door tracks R M windows R M Stairs -floors, door tracks R M walls, windows R M Lobb M Com lets ram floor wash down with ower wash R M 1 Parkin conVOl ui ment -directional si na e R M Remove ondin water 2 Ice and snow removal 2 2. Doors and Hardware Doors Gose and mechanisms work ro erl R M Lubrication - ad'ustment R M 3. Electrical S stem Check li ht fixtures, switches and o eretion R M Relam li ht fixtures 2 Distribution anels R P Fire control s stem, if a livable R M P 3 Eme en eneretor, if a livable M 4. Elevators Check for normal o eratfon R M Check indicator anels and li hts R M Preventative maintenance service P 3 5. Heatin Ventilation and Air Conditionin HVAC Check for ro er o eretion R M Preventative maintenance service M P 3 8. Parkin Control S stem Check for ro er o oration R M Preventative maintenance service P 3 ' 020107ba1 56 Maintenance task F uen D W M Q S A N Daffy, Weeny, Monthy, lluerteAy, Semiannualy, Annualy, Nate number 7. Plumbin and drains e s toms Check for ro r o oration Sanita faalities R M Irri anon, if a livable R M Floor drains M Flush floor drain s stem eve s rin M Sum um R M Fire rotection s stem, if a livable M Drain waters stem for winter ~q 8. Roofin and Wate roofln Check for leaks Roofin R M Joint sealant in floors R M Ex ansion 'oints R M Windows, doors and walls R M Floor membrane areas R M Check for deterioration R M 9. Safe Checks Carbon monoxide monitor, if a livable R M Handrails and uardrails R M Exit li hts R M Emer env li hts R M Tri in hazards R M 10. Securi S stem Check for ro er o ration M P 3 AESTHETICS 1. Si ns and ra hics Check for ro er o oration In lace R M Clean R M L ible R M Illuminated R M 2. Paintin Check for rusts ots R M Doors and door frames R M Handrails and uardrails R M Pi uards, a osed i sand conduits R M Other metal R M Check fora earance Stri in R M Si ns R M Walls R M Curbs R M Touch u int R M Re aint 2 020107ba1 57 t Maintenance task Fr uen D W M Q S A N DaNy, Weeky, Monthy, quarterly, Semiannualy, Mnualy, Note number 3. Landsca in ,sidewalks Remove trash R M Planted areas M STRUCTURAL EXAMINATION AND EVALUATION Concrete deterioration R M P Concrete aackin R M P Post tension anchors p Water leak a and netration R M P ansion 'oints R M P Guard rails and wires R M P Stair tower structure R M P Concrete membranes and coatin s R M Notes: 1. Wash down with power washing equipment is recommended on a quarterly schedule. If performed less often, at a minimum, power washing should be pertonned in the spring. The work may be perforated by the onsite employee if trained in equipment operation. Otherwise, professional cleaners may be required. 2. Perform as needed. 3. This equipment should be under a service contract for regular preventative maintenance and emergency service. The equipment manufacturer's recommendations for inspection and preventative maintenance should be followed. ' 020107ba1 58 ' INSURANCE SCHEDULE j 1 1 020107ba1 59 ' CITY OF DUBUQUE, IOWA 1 GOVERNMENTAL IMMUNITIES ENDORSEMENT Nonwaiver of Governmental Immunit .The insurance carrier ex ressl a rees and y p Y 9 states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity 1 under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. Non-Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental 1 immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Change in Policy The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. ~ SPECIMEN 020107ba1 60 1 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1. All olicies of insurance re uired hereunder shall be with an insurer authorized to do p q business in Iowa. All insurers shall have a rating of A or better in the current A.M. Best Rating Guide. 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque, except for 10 day notice for non- payment, if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include copies of the following policy endorsements: a) Commercial General Liability policy is primary and non-contributing. b) Commercial General Liability additional insured endorsement. c) Governmental Immunity Endorsements. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. ' 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. shall be required to carry the following minimum coverage/limits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit $2,000,000 Products-Completed Operations Aggregate Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 Each Occurrence Limit $1,000,000 Fire Damage Limit (any one occurrence) $ 50,000 I Medical Payments $ 5,000 This coverage shall be written on an occurrence, not a claims made form. Form CG 25 04 03 97 "Designated Location (s) General Aggregate Limit" shall be included. All deviations or exclusions from the standard ISO commercial general liability form CG 0001, or Business Owners form BP 0002, shall be clearly identified. 020107ba1 61 t 1 t 1 ACOR~~ CERTIFICATE QF LIABILITY IN~UI~ANCE azrz•azuas vrwu:~tr. [563)556-4472 FA7f S 563}SSfl~-i-4lS TFII,S CERT.FICATE IS 13SUED AS A MATTER OF INFORMATI{~N 1NS111L1N4t AItNLY bNLY ANC3 t.OF1FERS MO RIGHTS UPON THE CERTIFICATE MQLDER. THIS CERTIFCATE 04E5 NOT AINEND, EXTEND OR ~ I Httk .4i11NtE55 ALTER. iME COVERAC;= aFFOf~ED BY iliE POLICIES BELOW. --- C11Y, SIAIt, dIP COOT INSURLRS AtTORDING CO',IERACE NAIC a Ix3UHE4 [Ollp~tllY -- ---- .rc;..l•r.a a Lnsuran[ e CIXYQany StrenC ,4ddrwss _ n...l.r~, City, 5[air_, 71p Crde rc:_I.I ~.: . . - rB'.. Lt -1 - . .. . -_-- COyERAGES _ THE PITI If:IF4 []F Ih illP?M:c LI:iIE? CLCIV'! l h'vL bCL~J IS$UEQ TYT THE INSI IPt[] N:67tU,'.IY.]'vt FU?{ IH= •"JL14:Y 'LHIVU IR7;+L'111 L4. NL11•n I'1: I FNL"R: ARV n[:~JI0.EMEVT TE?M J? GCYJUI I IUH r.~ti !5RY gC:dl ru.u:T (:6t fiT'FER E)Q7LIdENT VJ1TH P55PECi TO 'A}i1LH HCa !'6H i+-xtn rl;. L1nv (n- r.::. II"rl I iR M:.Y P=R"IAA 7HL: IH^uUR,'•!ICC NCCRJ? 3Y-HE r'r5_I~:IE£ C]F::t:'•i'IHc:I HEREIN Is allflJECr TGJSLL 'llC TJ'7,15 [-71C'_1, 5111d$.•~NP C:7V(]InC!NS pF tlf.F FUJ•~ES. 4Cf:P.F.;J.TFI If ITS i-IC7'i,N A64Y FA'rt l3LW I{LI:UC:.U JY 'PJI:',:1514L~ If]Ff PIIW, - .. TYPE AF NFIIRM~F . _ 1'i:ll~v ~G,',:'~, hf. i4 L`Y C[HR410Y~ rUJC1 xUMB6i , ', L~111! GENETJSL LIAFUITr ax:x :f:!'J-nrY_t n ...._},4S14,O4r, x.IIIY'M-11:141 it'1-.?I L~P.IIITI' '+~Aa.LIV °_t~cL' h sn,rlar. •trV :rs F I•;,_-15T}N~I:+ ~:rallp , . ,. m:•.,~ .ul acu~•;a„~wr;ns, ___ 5,04C q x ~-rn:m~L s ;~: r,.~rr 1, n04,QDC tl,_1.., ~ J t:J.lt z,onn EMIr }- -= 4W Li•;"riRC~a47-LlJII TI9ll1• le {IJ .: _.1 'lN"~:J '.A:V ~ 400 ~[ L L aCrT _ FLCI::Y JECT >t ~ Lc ..: _.__ .-. - _ ,WT GYGBLE LUlEl1T" _. ti y t _ ~ `^ ...,,euwl 11:14 ~ .IUI _ 4 r 1,40n,Q4C ill. '. i.Ti-15 !I I r .: ~ / r"1 Fi . ~ ' 1 ~l ~ 1 :/ 11'~ Y NI .I.v - :iC1+8?L1.rT5 •! rtr,:: ~ 1 r ~ ~ !- ~ l.i ~ • - Mr aer,a„ - A % HR_? !JJ'.6 J ::1 u! s Tal .1. ' f~Y'll i5\TIED •`LI11:i 'Px Yd1rb 'LflrfilY:w ~T::l I . ~ - I _+~ T- VPM T.t:E 4J49LIrY a,f,l f:N Y-FJi }li:, Irhl ~ i `iTl li ' 1114N r .. rr .:,fl Y Ri::: '~ QL'!$tY11NtlMGLL4 LI?FffiJTY T~.t'J I f:f".':l ldtl hl.l ~:.I:v:uh ~ I :LVA'S 'AtAE `3:~TSJ.'L __ - F ` f1.`.I7/I tJ`I ~ ~ • xrtsaxnesaarvemarl~x~xU 7i ar.xrn"1 "nl •. ~~ aJS+.rnrres• waur( " E'.. ',4-, .+,: :rr,,T IC s lU[I O[ ,~ rrly lve::Pl t FT'R,T-'}k'}EfiE. _CJT•.E , t:l ,~l~_•4TtYfttH t,.::LJ.:tl~. L~ CIS=ASC-ULL•rl c'n l r ~ 1QQ', Q9I9i ~~Csll FR7!'1NCFA -N~. Ei.-L;'r.yE P?:Jl:'LeJll i SIYa,00C UIMtx ~lSl :lln•IIVN:T IM'tMA,IlIRJ' lltiAllVxtl i V[MH=Lti' rkL,Gi6N3 900011 YY 9JCM0lNlMT: 7~E:ULL 1'R:YJ18K/1$ IRE CITY 8F DUBUDUE I5 L25TE0 A5 AN atlDITIDNAL INSURED ON GENERAL LTABIIZTY PI}IICttS uSINC ISO ENGORSE- IEN i F7R1~ CG 20 2G 47 4~ "aDpTTTON41 . IN5[1RE0-DESIGNATED PERSON OR ORIGAYIZATIOti" OR ITS EQIIIVILANT. ;kN ERAL LIABILITY POLICY LS PRIMARY AND NON-CUNTRIBUTIAG. FORM CG 25 04 03 47 "UE5IGNATED LOCATIDIYS" ;EN ERAL LIABILITY At7GREG4TE LINZ'1 SI{QLL BE INCLUDED. Cil4ER,Y~NTAt. TMMUNtTttS tNU0It5E11ENT LS INCLUDED. ILL POLICIES 5H4LL BC [NOORSrn r[- PId?VY11E 30 OV~Y ADVANCE NOTICE OF CANCELLATION TO CITY OF DUBUQUE CITY OF OUBUQIIE CITY HALL SO W. 13TH STREET LIUGU(}llt, lA 52401 acaRC~ xs Izaovos~ 1 020107ba1 BIIOLLD JWYOF TMEABOYE UE9Gg0[D FOL GICS D-. CRVCn-Lro lYl-Wt Inc EXrlx0.ndJ GATE 711EREOF, THE ISSL'IN6 wSUR3t 1MIL L. ~w NJVL _~r~ anYarJF1TTENNOTrc^YOTaEGFR'TFYl.TrlxTO~l,.vrmran+_Ltrl, ILbbR1i1~C109AChW01fd6'k3llml~A~tli%?HLM ~.k3~Lbf347CPSla1~{X1f 'AACORD CC+RPCIRATIOP11966 62 IMRORTANT H me u,~rlircarc n!]IC.~r IS an RDUI I :UALAt ItU9i1kEU Ik!k: uulicyli~sl I~~.::sd l~ es:[i~•seJ. ~. ~IalernenR Uf111115 C::1lfG~iP HOPS nUi COn1{?f ngrNS 441hB CE-~ILfl4'~llC~ Ilglilgr iri lira iaf v:~1:L rl~nlar aeine11115}. li SU@nOt,~iTI~JN IS '.':RIVED, wCyeu to il1EY a?li-la d.nd wiitiitiu~ls ~f Ilea F:[.lic.-r, u~lair, pi,licies may IIiQUIf4U c.Il S'r1~7f°P,.tl'Pni..~ 513[enYcnt 4n :hls CfAfrtI~IS:dRC d4r,Y ni;l r.~;nfri liyhls I[: Illy. ~rilili~ale hdd~h Ifl li(xl Uf SIKa P,nf1CfSP.rY~F'Yi(Si. DISCLAIMER I he l:erifr~[e of nstxanre nn 1hp re'.t:raP side aF tit s fxm dues ntrl tzxtslilulc: a cunl+a[# I,r_I~x~el ~ the Issui~~g insurrtlrs;, auUP'ocLed rrprppelrt,~olve or Fraylr;er, and tha c?I ~t:aLre l irrdc; , IItJ~ Jsae-:: it atlirn'aU•rc31y of neyaAixtaV ~Irwht, extend oraAter me cor?rage aKn[dc36 trf the P:tlil~ir~: lislri Ilerir~ni SPECIMEN k~CORD 25 (24D7rD8- 020107ba1 63 -- POLICY NUUB[fi: 1 t GDMMERCIAL GENEI'tAL LIABILITY Cl3 25 ~ p3 87 THIS ENDORSENPEN4 CHANGES THE PdLICY. PLEASE READ GT CAREFULLY. DESIGNATEQ LGCATION,LS~ GENERAL AGGREGATE LIII~IIT This erirtc:rber-,ant marfiFies irsur~nca nrnvir!~[t rrndtw the frllauing: ~~ COMMIERCIAL GENERAL LIARII 17Y t~C1VE~P.GE PAi?T SCHEDULE Desigl7ated Latativn(s}: - i I Ilf no CT-~tr; app=_ar shave. irfQrrYl3tlCn reguiratl to eamplr=te this endc~mFnt kill k~r rl~chVn in ifi? CrPclarations as AopicaCle to :hs encorsenent.} A. Fdr all sums ~•hieh the insu,ed berzsmra leg~lrv abiigated I~~ FkS` as 'dam3ge6 caused b71 "occurrerr~s" .ur+tar f;f3t~FRAGE A fSECT10t,1 11. and in- all n-.eciiral expen~s caused bd aec- dr:nts under L[}VF~{AGE C r:.SECTIgN I], tVhi~c~ tan be aHri4uted only' to aF:i:idtiC~nS al a surge r~stgnated "location" shcw~ in the Sc~edu~r~ ~OJe: 1. A separate Oasiyna~d l.aca;ion General Aggregate _imik apafes td each. designated '10Ca11+J11', 3rd that unit is erlr~l ko the ~trniunt of the Gcnmral Aggregate Lim t shown in the CPCtaratlons 2 Tltc~ Dcsigna>Ed :-oration C~rroera: agr:regate l u, iil ix ltra n rr..esl •,ac yvill pay For the sum aF all derneges under CC,VCR?,GC A, exccpr. darn ages barsuee at 'bodily mjur~' or "propart; damage' moluded it the ' products-completed ~perdtians ha>zardT. arhl for medical exF:enses under C(7VEFt4GE G regar~les~ of lttc rwrn- GCr Cr(: a. nsurecls b. C iaims ma:Jc c]r"'suil~' lxtxyt 1, u c. Nel^son~ ar Org3r¢a-inng rnakir,~ clalrns nr hrlnn~ing' salts". 3- AnY Rents made under COVERAuc A lar damar~es ar ureter Ct7VERACE C for meyir;F,l e.~,pe~ses snap reduce tte Ueslg- nat3d LirC:dti[an C,c~°a;ral Aygrriyate Lirntl fpr the- dEaigneted `bcetrpn". :iuclt FaaYmenas Shod not reduce the Genera: Rgcregalr: r rnut ahrwn in tiso r7Hr`L-ai;align5 nor s~all they re- duce any over D~esi9nated Laca'iUn General Aggregale Limit fnr any ~t~er deQranated '7nCeki~ri sha'wn in the SchedVe above. +T. The limits shotivn in tfie C?Garailons itar Each r3ccurrc•nce. Fire Qrsrnag~ and Uedi_21 Ex- pPraa r,~~ntinue to apply- ilowever. nstead of lteimg sutajert to IhE General Ryyregate Lir-it sltOovr' in Itttr decrarationg, SUCK Iry1R5 t4t1 t}e 5uritc+:i icy lhC upFrlrr~fic~ Jesigiarr>:J Lnr.,=non Canarel Aygrey:lr I unit 020107ba1 64 i 9.Fcu all Sums wfut;li ulna iii~~r~~t 6rwrnes IEgslty oL^Ii~taMd tb pay es damm33ee csusC.d 6y 'fiu :~Jn'A.'YCE6`~ undar ~~GVER~.GE A :SEC;TtOf~ I:i, and fit all meaical axps±ru;~+s caucerl by arri- dznts under CC~'~/ERAGE C {SECTION I} ~,vhct, canr+ot be atiribut?rt only tG ~perat.ons al a sln- qle desi3nated °locadtn` shown in the F,Cttedulp atxrvd. 1. A•ry {~ryrcxvia mAde under CQUERAGC A far damages as -order GOVERAGF C =or medi::a! exFense3 shall ied11CE the amcant ~k~ll8t]IB under tha Gt+r:erdl Aggre~atie Llmli ar Nhe ?rxiuc:s-Gix-iplClc~l UpBialrOi~: Ay- g re;tatc L i'n it wh ii,hr~er is epplicsolo; and 2. 54Ch pa~,+rnerts 9nalt not rEdtua any GesignaDOd Ltsration Genaral fsggrc:yute Lraiiil. C- 'Nhon covoraye rur I r~:ad ily rn5i~~y o~.: rf iha 'produclB completed opar~tivne hazard' ie pro- viced, ant paumeni9 for de.rr-ag?s becruse ~f 'bodi'y injury- ar 'preperty damage" ncludecirn tlyd "prt:~uclacompleL~ec oaeratians haxaM~' will (educe tfie Prodraet5~Umpleied oparatiur>r. A.g- gregats Limit e-,d not roduoe the General Ag- gregate l~mlt nor me L}eslgnatad l xFttinn C.Pn- gral Aggregate Limit. D. Far tho pw.rposes of lhls endorsement..he D~efi- nltions Sec~on Is smg.rlPd t•,p the sddifian of the fnilowing de~iniLcn: 'Locati^n" rncans prernlses nvdv ng tre same 4f CCttfteCU11Q loks, 4r Framispz •rr~ose C.OnneC- Jon Is Inte'ru~ed only by a sreet re.~adw~a}~. 'rrd- teroray ar rugl-t-cr~vray of a railroad. E. I h6 pr4V1310r3 ni I.irrxfs CJf Insuran:,e (SECTIUPI It1j not ottt~vrisE modified by this enrknsexnenL shall cznt! nua tc appN as sEipulatec. SPECIMEN 020107ba1 65 t Pl]LIC:Y NIIMTif"12 COMfNERCIat_GFJ'1ERALLIaf31LITY CG 26 ~6 OT 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INS4~REI~ - QE$1GNATEb PERSON ~F~ ORCANLZATION Thls endorsement modifies insurance otcviaad unrkn thr~'rsll:ruing: COPAhtER.{:IAL GENER0.L Ll%+.61t.ITY CGVERAGE PART $~CHEOIrLE - - - _.--~ Name Qf Additional rnsured Rargon(sy Or 171'gartlzation(e1_ ThF Ci-.~~ nF Dubuque, inclueling all ItS r?I?..t~rt and appninted o~`iri~ls} all i,s e~pl~~reys ~tnd r'ol~.trtte'rs, sill i'4 h~~ards, conlrnissions and.+'or authorities and t`leir bo~rrl mr`mtte'rs, employees r_nd volunteers, r-------. __. - _ - Intormahcrt ieauined :n crlr~ptFte trig Schedule.rf not <_haurt abou~. •~nll ye shown in the peclaratiors. Sp:G~in n - Wlta le An tttsurad is arnerdai io in- clude as an edditiarte~ inaurcd the prx:;UF•ti ;1 r^ ~~rymi zstionSs;l shatvn .n the Schedule, but anty wi±h respeci da liabilrly rrx "hn^lily injurtr". "rympe-ly damage" Ui "per~rol end ad',rartisirg iniur¢ caused, in whrle nr in dart. by yrour acts ur umissior3 or the acts or ona~s- siorts od tlt~se ~.ting On yqur E:ehalE: A. in the pprf~ormance of youron~ang aaer.atiars: or B. In c~nn8cliCn tbifn your aremises rnvned by nr rrnlr~ri to ynii ,.~•• ~, - 1.;~R ... ~-- x j r-a ~n ~a n~ oa a3 ISO f~:naeries I rrr:.. 20x4 020107ba1 66 Page t of 1 ^ t t t t Exhibit K Operating Expenses for the Public Parking Facility Include the Following: • Staffing (Maint./Cleaning/Security/Customer Service) • Utilities (Phone, electric, water, etc.) • Insurance -Property -General Liability • Snow/Ice Removal • Maintenance Contracts • Property Maintenance (General damage repair, painting, etc.) • Supplies (Replacement lights, cleaning supplies, bathroom supplies, etc.) • Striping and other painting • Landscaping • Administrative overhead, which shall be limited to $10,000 per year for any year that DJ has the Maintenance Services Agreement with the City for the Public Parking Facility or $21,610 per year for all years that DJ does not have such Maintenance Services Agreement. Such amounts shall be adjusted annually by the increase, if any, from the previous year in the Consumer Price Index for all items for All Urban Consumers-U.S. City Average, published by the U.S. Department of Labor, Bureau of Labor Statistics. • Security 020107ba1 67 Exhibit L Par. 12 of the Development Agreement Between the City of Dubuque and The McGraw-Hill Companies, Inc. t ' SECTION 12. PARKING. City owns the real estate (the Parking Property) which adjoins the Property shown on Exhibit B and is intended for use for parking ' purposes. ln~ raonnectton therewith, the parties agree as follows: 12.1. Construction of Improvements by McGraw-Hill. IIIJithin th+a ttme frames set ford in Section 10.3, McGraw-Hitt shall, at its sole expense. complete the grading, paving. landscaping including islands, and lighting the Parking Property according to plans and specifications approved by City and consistent with City standards including the Port of Dubuque Design Standards. The Parking Property shall be divided into Lot A and Lot B as set out on Exhibit B. AAcGraw- HUI shall be responsible for obtaining of all necessary permits, and shall be responsible for and pay for the cost pf drainage and storm water improvements required by City standards and state and federal taw for the devebpment of the Parking Property. City shall pay only those costs pre-approved by City for 1 transportation and disposal of fill required to be removed frvrn the Parking 1 020107ba1 68 t t 020107ba1 Property as a result of constnx~ion by McGraw-Hill of the Improvements contemplated by this Sedlon 12. McGraw-HIII shall use all reasonable efforts in its design and improvement of the Parking Property to limit the need tD remove fill from the Parking Property. The City shall be provided with prompt notice of the believed need to remove fill from the Parking Property so as to allow City to make arrangements for sampling and analysis of such fill, and McGraw-Hill shall allow such activities by City. City shall not be responsible for bringing any new till to the Parking Property. In additbn, City shall not be .responsible .for transportation and disposal of till placed on the Parking Property by McGraw-Hill, its empbyees, agents or oontradors. 12.2 Construction of Improvements by City. City shall install .gates and controls and underground servbes to those gates and controls to control acx:ess to Lot B, so as to permit the type's of uses set aut bebw in this Section 12.4. The installatbn of gates and controls and underground services to the gates and contort shall be substantially completed. by eighteen (18) months -after the Closing Date. City shall have the right to install, at City's expense and during the construction of the Parking Lot by McGraw-Hill or at such later date as City determines, additbnal electrk~l service, water, staging, and Ue downs. 123. Maintenance of Parking Property. Maintenance, repair and replacement of the Parking Property shall be the sole responsibilfty and expense of City, inducting but not limited to: Snow removal on Parking Property and adjacent sidewalks completed by 7:00 a.m. and 3:00 p.m. each day; Salting of Parking Properly and adjacent sidewalks completed by 7:00 a.m. and 3:00 p.m. each day; Maintenance of the lawn sprinkler system; Repladng bushes, trees, etc., as needed; Lighting maintenance; Parking bt spring dean-up; and Monthly parking bt sweeping during non-winter'months. 124. Use of Parking Lots. (1) Lot A shall consist of non-ass~ned spacers for McGraw-Hill's empbyees at no cost to such empbyees for parking between the hours of 8:00 a.m. and 15 69 1 t 1 5:00 p.m. or such later time for a spedflc day as the City Manager may upon written request of McGraw-Hill agree, Monday through Sunday, fifty-iwo weeks per year. Subject to Section 12.4(3), City shall have the right to albw parking in Lot A by the public during such hours and at any other time. Notwithstanding the foregoing, McGraw-Hill empbyees .who have already parked in Lot A prior to ' 5:00 p.m. may remain parked in Lot A until their workday is completed except on a day that City has notified McGraw-Hill in writing seven days in advance that empbyees may not .remain in Lot A after 5:00 p.m. on that day. t (2) Lot B shall consist of non-assigned spaces for McGraw-Hill's employees at no cost th such employees for parking beiween the hours of 8:00 a.m. and -5:00 p.m. or such later time for a specific day as the City Manager may upon written request of McGraw-Hill agree, Monday through Friday, fifty-two weeks per year, except holidays. Subjed to Sedbn 12.4(3); City shall have the right to alkniv parking in Lot B by the public during such hours and at any othertame-and to use Lot B at any other time for such purposes as City determines appropriate. Notwithstanding the foregoing; McGraw-Hill empbyees who have already parked I in Lot B prior to 5:00 p.m. may remain parked in Lot B urrtil their workday Is completed except on a day that City has notified McGraw-Hill in writing seven days in advance that empbyees may not remain in Lot B after 5:00 p.m. on that day. (3) It is the intent of the parties under Sedbns 12.4(1 } .and (7) that all McGraw-Hilt employees will be guaranteed a parking spate, but not to exceed the 513 spaces shown on the attached Site Plan, in Lot A orLot B between the 1 hours of 6:00 a.m. and 5:00 p.m..Monday through Friday, fifty-two weeks per year, except holidays, and public parking wiU be limited by C[ty to effectuate such guaranteed parking. In order to assure that Clly makes sufticier~t parking spaces available to McGraw-Hill for its empbyees and to effidentiy manage the krt, McGraw-Hill will notify Cily upon its initial occupancy of the offioe building of the average number of employees for the month who will work at the office building between the hours of 6:00 a.m. and 5.'00 p.m. Monday through Friday and then3after whenever there is any incxease or decrease in the average monthly ' number of such empbyees. (4) For purposes of this paragraph, holkiays shall mean New Years. Day, , Memorial Day, 4"' of July, Labor Day, Thanksgiving and Christmas Day, and the following Monday when any of fire foregoing named legal holklays fall on a Sunday. 12.5. Parking Facility. If City oonstnrds a parking structure in the Port of Dubuque north of Third Street, upon completion of the parking :structure, aU rights of Mc~raw-Hill and its employees as provided in Par. 12.4(2) shall transfer to the parking stnx:lure and such parking rights shall be exdusive to the parking stnxxure. Such structure shall be constnrcted within 1,200 feet of the Property. 16 020107ba1 70 t t 1 ' 020107ba1 71 ' Exhibit M t Escrow Agreement ' 020107ba1 72 ESCROW AGREEMENT ' BETWEEN THE CITY OF DUBUQUE, IOWA AND ' DIAMOND JO, LLC This Escrow Agreement, dated , 2007 (Escrow Agreement) is entered into between Diamond Jo, LLC (DJ) and the City of Dubuque, Iowa (City). WHEREAS, DJ and City entered into the Port of Dubuque Public Parking Facility ' Development Agreement dated even date herewith (the Development Agreement) whereby DJ agreed to deposit funds with City to be held in escrow and to be disbursed as provided in the Development Agreement. NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto ' agree as follows: SECTION 1. DEPOSIT OF ESCROW FUNDS. As provided in Section 1.2 the ' Development Agreement, prior to and as a condition of award by City of the contract for the construction of the Parking Facility (as that term is defined in the Development Agreement), DJ will deliver to City the sum of Six Million Three Hundred Fifty Thousand Dollars ($6,350,000) less such amounts that have already been paid by DJ to City for the design and construction of the Parking Facility (Escrow Funds) to be held by City in accordance with the terms hereof. Subject to and in accordance with the terms and conditions hereof, ' City agrees that it shall receive, hold in escrow, invest and reinvest and release or distribute the Escrow Funds. It is hereby expressly stipulated and agreed that all interest, dividends and other earnings on the Escrow Funds shall become a part of the Escrow Funds, and shall be held by City and disbursed as provided in the Development Agreement. SECTION 2. INVESTMENT OF ESCROW FUNDS. City shall deposit the Escrow Funds ' received under this Escrow Agreement, including principal and interest, in a money market fund account at Dubuque Bank & Trust Company, Dubuque, Iowa, and shall not move or transfer the Escrow Funds except as provided herein or unless otherwise agreed upon in ' writing by DJ. The parties agree that, for tax reporting purposes, all interest or other taxable income earned on the Escrow Funds in any tax year shall be taxable to DJ. ' SECTION 3. DISBURSEMENT OR WITHDRAWAL OF ESCROW FUNDS. 3.1. City is hereby authorized to make disbursements or withdrawals of the Escrow Funds ' as follows: (a) Incompliance with the terms and provisions of the Development Agreement; ' or ' (b) According to written instructions signed by both City and DJ. ' 020107ba1 73 3.2. A copy of each withdrawal, including reasonable documentation thereof, shall be ' delivered to DJ at the time of withdrawal, but DJ's consent shall not be required to any such withdrawal that is in compliance with the Development Agreement. ' SECTION 4. NOTICES. All notices, requests, demands, and other communications under this Escrow Agreement shall be in writing and mailed or delivered to the party to whom ' notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed, return receipt requested, to the party at the address provided in the Development Agreement or, to such other address as a party shall designate by written notice to all other parties to the Escrow Agreement. SECTION 5. TERMINATION OF ESCROW. This Escrow Agreement shall terminate upon the disbursement, in accordance with the terms hereof, of the Escrow Funds in full. SECTION 6. GOVERNING LAW; JURISDICTION. This Escrow Agreement shall be ' construed, performed, and enforced in accordance with, and governed by, the internal laws of the State of Iowa, without giving effect to the principles of conflict of laws thereof. ' SECTION 7. AMENDMENTS; WAIVERS. This Escrow Agreement may be amended or modified, and any of the terms, covenants, representations, warranties, or conditions hereof maybe waived, only by a written instrument executed by the parties hereto, or in the case of ' a waiver, by the party waiving compliance. Any waiver by any party of any conditions, or of the breach of any provision, term, covenant, representation, or warranty contained in this Escrow Agreement, in any one or more instances, shall not be deemed to be nor construed ' as further or continuing waiver of any such conditions, or of the breach of any other provision, term, covenant, representation, or warranty of this Escrow Agreement. ' SECTION 8. COUNTERPARTS. This Escrow Agreement maybe executed in two or more counterparts, all of which taken together shall constitute one instrument. ' SECTION 9. ENTIRE AGREEMENT. This Escrow Agreement and the Development Agreement contain the entire understanding among the parties hereto with respect to the escrow contemplated hereby and supersedes and replaces all prior and contemporaneous ' agreements and understandings, oral or written, with regard to such escrow. SECTION 10. SECTION HEADINGS. The section headings in this Escrow Agreement are ' for reference purposes only and shall not affect the meaning or interpretation of this Escrow Agreement. SECTION 11. SEVERABILITY. In the event that any part of this Escrow Agreement is declared by any court or other judicial or administrative body to be null, void, or unenforceable, said provision shall survive to the extent it is not so declared, and all of the ' other provisions of this Escrow Agreement shall remain in full force and effect. ' IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to 020107ba1 74 1 1 1 1 1 1 1 1 1 1 be signed the day and year first above written. DID By: Its: 020107ba1 75 CITY OF DUBUQUE, IOWA Bv: Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk