HomeMy WebLinkAbout2015-03-09 Correspondence03-09-15
4f(1)
Marian Karr
From:
Jason Havel
Sent:
Monday, March 02, 2015 6:22 PM
To:
'jdriscol@aol.com'
Cc:
Council; Ron Knoche
Subject:
RE: First Avenue Grade Separation --- Why does it require Closures?
Ms. Driscoll,
Thank you for your e-mail regarding the First Avenue Grade Separation Project, and please accept this response on
behalf of Mayor Hayek.
Let me start by providing a general project construction schedule:
• March 17, 2015 — Accept project bids through the Iowa DOT bid letting process
• April 2015 — Begin project construction
• Summer/Fall 2016 — Anticipated completion of project construction
During construction of the project, it is anticipated traffic will be maintained on First Avenue, with the exception of two
closure periods. These closure periods will result in First Avenue being closed for 3 days and 14 days, respectively. As
you had indicated, First Avenue is a heavily used roadway and a vital corridor within the community. Understanding
that, and in an effort to encourage efficient contractor use of the closure period, we've included incentive/disincentive
amounts to the closure periods on First Avenue. This results in the contractor being awarded the incentive amount for
each day they reduce the proposed closure period, and a penalty for each day beyond the proposed closure period that
the roadway is closed. We feel the inclusion of these incentive/disincentive amounts for these closures will encourage
the contractor to meet or reduce the anticipated closure timeframes.
Regarding the detour that will be required during closures of First Avenue, we agree that closures of First Avenue do
include an additional cost to the traveling public in the way of increased driving times and distances. These additional
costs were also included as part of the consideration of the overall project phasing, and part of the process in
determining any proposed closures of First Avenue. With regards to staging project construction, maintaining traffic can
increase project costs and/or duration, due to increased coordination required by the contractor. We've included a
temporary roadway as part of the project that maintains traffic on First Avenue for the majority of the construction
period, while also maximizing the area open to the contractor to complete the work. This should result in fewer
conflicts between traffic on First Avenue and construction activities, which is often among the more significant
influences on construction prices and schedule.
Included in your e-mail was a discussion of traffic volumes on First Avenue near the project area. I've included some
historical traffic volume data [Annual Average Daily Traffic (AADT)] for locations along First Avenue near the project
area, as provided by the Iowa Department of Transportation. The information below includes the AADT, study locations
and the study year:
• 12,100 (Between Mall Drive and Lower Muscatine Road) and 11,900 (Between Muscatine Avenue and H Street)
—1998
• 12,800 (Between Mall Drive and Lower Muscatine Road) and 12,100 (Between Muscatine Avenue and H Street)
—2002
• 15,800 (Between I Street and J Street) — 2006
• 13,000 (Between Mall Drive and Lower Muscatine Road), 13,300 (Between I Street and J Street) and 13,300
(Between Muscatine Avenue and H Street) — 2010
Unfortunately, some of the study locations vary slightly between study years. However, the traffic volumes appear to be
pretty consistent between the study locations within the individual study years.
In an effort to gather public input for this project, and provide updates throughout the design process, there were a
number of public meetings held. These meetings included:
• Pre -design Neighborhood Meeting (May 17, 2007)
• Informational Public Meeting (May 11, 2011)
• Mall Drive Property Owners and Businesses Meeting (July 28, 2011)
• Informational Design Meeting (June 19, 2013)
An additional public meeting is also planned to be scheduled once the project has been bid. That meeting will serve as a
forum to discuss the upcoming construction and what residents can expect during construction.
Finally, as you indicate in your e-mail, estimated construction costs for the project have increased significantly from
previous estimates. While the consultant's estimate may have been approximately $7 million in 2011, the project design
at that point lacked many details, and may not have been a true representative cost estimate. Prior to switching design
consultants for the project in 2014, the consultant's construction estimate had approached $10 million. As we've
worked to finalize design details, we've been mindful of overall project costs, and aimed to provide an efficient and cost-
effective grade separation project. Please let me know if you have any additional questions or concerns regarding the
First Avenue Grade Separation Project. Thank you.
Jason Havel, P.E.
City Engineer
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Phone: (319) 356-5410
Fax: (319) 356-5007
From: jdriscol@aol.com [mailto:jdriscol@aol.com]
Sent: Sunday, February 22, 2015 10:07 AM
To: Matt Hayek; Michelle Payne; Rick Dobyns; Susan Mims; Terry Dickens; jthrogmo@yahoo.com; Kingsley Botchway;
jthrogmo@yahoo.com
Subject: First Avenue Grade Separation --- Why does it require Closures?
Hello Council Members,
I am concerned about the First Avenue Grade Separation Project. I'm very much in favor of this project. I use this route
at least twice daily as do thousands of other people.
This project, as designed, requires closures of First Avenue. The reason given for the closures is probably to speed up
the construction period. However, I am concerned whether the public has been given adequate input on the decision to
close First Avenue? I live nearby and do not recall being invited to a Neighborhood Meeting, Has actual data on time
savings, cost savings, etc. been provided? Has the cost to the public been considered?
Closures and detours directly affect the public. Examples include emergency response (ambulance and fire), cost to
drivers in time and fuel, children on school buses for longer periods before and after school, delays and rerouted City
buses, and increased traffic in neighborhoods along the detour, near schools and the Towncrest medical area.
I am well informed on this project and its history. I know that full closures are not necessary to complete this project.
Staged construction is possible with partial -day traffic closures, but not long-term full closures.
When First Avenue is closed, Summit Street is a 4 -mile detour option with a bridge over the railroad. Scott Boulevard is a
3 -mile detour option and there is no bridge.
Daily Traffic Volume on First Avenue (from recorded data and previous plans): 20,400vpd (2004), 28,OOOvpd (2014)
From an August 2006 report by NNW, Inc., then consultant on the project:
"Closing the road to traffic would require a detour for the 20,400 vehicles per day that use this crossing. The four -mile
detour would cost $17,136 per day (based on $0.21/mile) and if the construction took 10 months it would have a public
cost of $5.1 million dollars. This could be mitigated if the project was built under staged construction. Since the railroad
must be built in stages and does not have a detour option, doing roadway construction in stages is only logical."
Using the 2014 daily traffic volume (its a forecast), the cost of the detour is $23,520 per day.
Staged construction is an option and reduces the cost to the public.
Shouldn't the public be able to weigh in on the decision to incur this cost vs. a longer construction period? If threw traffic
is provided for during construction, the impact on the public is significantly reduced.
One might argue that staged construction costs more. Let's see the data. And lets explore how the cost of the project
went from $7 million in 2011 to $11 million in 2015 when sanitary sewer and water service work has already been
completed and the proposed pump station has been removed?
Concerned Citizen, neighbor to the project and daily First Avenue traveler,
Jane Driscoll
Marian Karr 4f(2)
From: June Braverman <bravejune@gmail.com>
Sent: Monday, February 23, 2015 10:57 AM
To: Marian Karr
Subject: for Council members
This is a response to the Press -Citizen reporter after his article on the NHB Band on 2/20 I was asked to share
with you all.
As program coordinator at the Senior C enter when the NHB was initiated and begun, and later a member of
that band when I retired, I want to fill in some blanks for you.
1. We were one of the first such bands for seniors in the country and had an excellent partnership with the UI
School of Music at a time when music education programs in the public schools were being reduced and cut and
the need to train band directors to work in schools was showing some slowdown. Thus a new prospect of
training band directors to work with an older population offered new vistas for music ed students and potential
for research to music departments. Having the band housed at the Senior Center provided for many excellent
programs as well as utilization of space often empty. Later when the Senior Center became the only city funded
agency to charge membership fees, the 80 plus band members became a notable segment of the total
membership of 1700.
2. The Senior Center has received tuition from band members to pay for instruction and music and
compensate their administrative fees. Those band members living outside city limits pay additional fees.
3. The band is NOT the Senior Center band; it is a component of the national New Horizons Band which has
been HOUSED in the Iowa City Senior Center and offered through them as a program/activity. Band
participants are counted as members AND as volunteers because they provide OUTREACH in concerts outside
the confines 'of the SC. Band members are counted as frequent users of the facility at regular band rehearsals
twice a week, additional small section rehearsals, group and individual lessons. Spin off bands such as Silver
Swing, Polka and beginner bands have had to find space outside the SC for rehearsal for lack of available daily
space.(If available space is in Coralville, the staff of the SC disallows them to take any music or instruments out
of the building!) All however are counted as members, daily participants and volunteers.
4. I was present when instruments were loaned or donated to the NHB, not the Senior Center. Tympani, bass
drum and xylophone, marimba were stored in a closet in the Assembly room where large rehearsals are held- a
little too cumbersome to take home twice a week! Band members who wrote music for the band or did
arrangements of music were contributing to a NHB, not to the Senior Center. Music purchased from band funds,
not Senior Center tax dollars belong to NHB as do donations in memory of former band members and
deposited in band accounts at the SC for the band.
5. BOTTOM LINE: There is nothing to negotiate as Mr. Honohan suggests. What was given to the NHB or
paid for with THEIR contributed funds/dues does not belong to Iowa City. Does the City own part and parcel if
every course offered? Does it own Little League, their equipment because they play on city owned fields? Are
actors at Riverside Shakespeare's Theatre in City Park required to pay membership dues to parks and
Recreation in order to rehearse/perform in that facility? Where is there a precedent for that in either the ICP
Library or Parks and Recreation, other city agencies? You might want to check ongoing disputes with Elder
Service, Inc. and Heritage Agency on Aging which bought equipment for the SC kitchen over the years for
lunches no longer prepared there. (Of course all that equipment "belongs" to the SQ. While the SC seemed the
logical spot to affiliate and house the NHB years ago and it obviously has been very advantageous to the City as
well as the band in terms of numbers, member fees, programs, outreach et al, it is not the only place in the
universe unless frictions can be resolved amicably. City staff opening and stamping NHB music, mail with
"property of the Senior C enter" and dictating where "their" music and instruments can be used, when and for
what audiences does not make for amicable. I advise and ask that you keep your eyes open. There appears to be
a city agency director and commission chair of many years acting autonomously to the detriment of a viable
community asset -it's senior population. While some enthusiastic participants recount on MSNBC how the
Senior Center has changed their lives and appear frequently at Council meetings and lately the Ad Hoc
Commission on Seniors, there are upwards of 20,000 seniors in the area who have never walked in the Linn St.
facility even though the management has dropped the "legal" age for being a senior member to 50!
June Braverman, Ph.d.
Marian Karr
From: Jeanette Carter <montehigh55@gmail. com>
Sent: Wednesday, February 25, 2015 7:40 PM
To: Council
Subject: Senior Center controversary
Attachments: City council letter.docx
Please accept this communication that has been sent in good faith. Thank you. Jeanette Carter
February 25, 2015
Matt Hayek, mayor
Kingsley Botchway II
Rick Dobyns
Jim Throgmorton
Susan Mims
Terry Dickens
Michelle Payne
Dear Council members:
I am writing to you as a concerned member of the New Horizons Band, which has met in the
Senior Center for the past 20 years. After many years of a successful partnership with the Center,
the band has become embroiled in a controversy about band ownership of the music and other
property as well as memorial funds designated specifically for band purposes, all of which is
being claimed by the Center.
I am sure you have been apprised of the actions of Senior Center staff, including the illegal
seizure of mail addressed to our director. These issues are causing considerable dismay and
anxiety among our members.
In the past, Ms. Kopping has successfully forced other agencies dealing with the elderly out of the
building, and we are confident it is her intent to be rid of the band as well. We sometimes joke it
is "elder abuse."
The city receives a good deal of money from band members in the form of Center memberships
and parking. Our concerts are well attended and we are recognized nationally as an outstanding
band. I feel the resulting bad publicity if this controversy reaches the public will harm both the
Center and the city of Iowa City.
WE HAVE NO DESIRE TO LEAVE THE CENTER. The band is celebrating 20 years of
cooperation and mutual respect this year, and we feel it would be detrimental for all concerned if
this once -amiable relationship were ended.
It is our hope that council members may be able to dissuade Mrs. Kopping from her actions and
return the Senior Center -New Horizons Band relationship to its previous status.
I appreciate your attention to this letter.
Sincerely,
Jeanette Carter
424 Oakland Avenue
Iowa City, IA 52240
319-338-5922
montehigh55@gmaii.com
Center
IOWA CITY/JOHNSON COUNTY SENIOR CENTER
Memorandum
To: Members of the City Council
From: Linda Kopping, Senior Center Coordinator `Zw
Date: March 5, 2015
Re: Response to Jeanette Carter's Letter to the City Council Dated February 25, 2015
Ms. Carter identifies three issues involving the New Horizons Band (NHB) and the Senior
Center (Center) in her letter: 1) ownership of funds and materials acquired; (2) funding
received by the Senior Center from the Band members in the form of memberships and
parking; and (3) forcing agencies dealing with elderly out of the facility. I will provide
some background information and then address each of these issues separately.
History
All Center groups, clubs, and performance groups are intended to be self-supporting in that
they pay for their own material costs.
When the Band started in 1995 participation fees were established to cover material costs
of the program. Just like funding collected from all other Center groups, clubs, and
performance groups, Band revenue was placed in the Gift Fund and earmarked for the
Band. This included revenue from participation fees, special collections, gifts, donations,
memorial money, and the like. Expenses for the group were taken out of these earmarked
funds.
Center staff tracked approximately 13 earmarked "accounts" in the Gift Fund and kept the
groups informed of what funding was available to them. Typical expenses were for things
like sheet music, recovering of pool tables, dance bands, food, lapidary equipment
replacement and repair, computer lab upkeep, Center Television supplies, chairs for the
poolroom, props for performances of Senior Center Standing Room Only (SSRO), and
woodworking equipment and repair.
In approximately 2003, the City determined that earmarked funds needed to be
incorporated into the operational budget. This change was pursued to better conform to
commonly accepted accounting practices.
The NHB director, Don Coffman, and I met to discuss the Band's finances and need to carry
over cash balances to cover unplanned expenses for such things as unanticipated
equipment purchases, equipment repairs, new music, trips to play at out of town concerts,
and band camps. Together we met with Finance Department staff to set up an account to
allow for a carryover balance.
The account that was set up has always been a part of the operational budget for the
Center. It has gone through the City budgeting process annually.
PROMOTING OPTIMAL AGING FOR JOHNSON COUNTY
28 SOUTH LINN STREET, IOWA CITY, IOWA 52240 • 3 1 9-356-5220 • WWW.ICGOV.ORG/SENIOR
Accredited by rK*O
National Institute of
Senior Centers
It is only in the last four years or so that the relationship between the Band and the
Center has become strained.
In the fall of 2012 Center staff was evaluating participation and membership fee
structures. The Center's relationship with the Band suffered when Center staff
embarked upon changing the NHB's informal fee structure to make it consistent with
all other Center programs.
The amount of NHB participant fees have always been set by the NHB's leadership.
Up until this point, NHB participation fees for non -Iowa City members were lower
than fees paid by Iowa City members. This was being done so all Band members,
regardless of residence, paid the same total amount of participation and membership
fees. The Senior Center Commission over ruled the NHB Steering Committee's
participant fee structure and insisted that the NHB comply with membership fees
that had been approved by the City Council and current Center participation fee
policies. The NHB Steering Committee members suggested The Center/City was
interfering with longstanding practices and the operation of the Band.
At the time membership and participation fees were under discussion, the NHB
Steering Committee was informed by the Senior Center Commission and staff that all
equipment, music, and funds collected for the Band was City -owned. The idea of City
ownership has been challenged since coming to light. It led Band leadership to
establish Friends of the Iowa City New Horizons Band (Friends), a 501(c)(3) capable of
receiving donations and owning music and equipment.
At a NHB Steering Committee meeting in the fall of 2013 the Band director expressed
concern about the Band's compliance with copyright laws. Center staff took the
copyright issue to the City Legal Department for an opinion. In so doing, the Steering
Committee voiced their concerns that the Center was interfering in the operation of
the NHB.
For the past couple of years the director of the Band has indicated that it is an
inconvenience for student instructors to go through the City's hiring process. The
hiring process was already abbreviated for the students compared to other City
employees, and staff further facilitated the process as much as possible. Despite
efforts to the contrary, Center staff was told the City was making "things" difficult.
In the spring/summer of 2014 Center staff met with the NHB Steering Committee and
Band director, who requested that staff approach the City's Human Resources
Department to see if the student instructors could be paid a stipend like the Band
director, rather than work as City employees.
Center staff met with staff from the Legal and Human Resources Departments. It was
then that the City's Human Resources and Legal offices first became aware that the
director was effectively working as an independent contractor, but without signing an
independent contractor agreement, unlike all other independent contractors at the
Center. In addition, the non-employee director was supervising the City -employee
instructors. For both policy and legal reasons, independent contractors cannot, and
2
do not, supervise City employees. Center staff informed the Steering Committee that
the director could work under contract as an independent contractor, with her
instructors as sub -contractors, or they could all be City employees. The director
refused both scenarios.
The Friends group now wishes the City to gift the Friends all music and equipment
acquired by the City for the Band from January 1995 to December 2014.
Replacement cost would in the tens of thousands of dollars range. They would also
like to continue to rehearse twice a week at the Center, store music and equipment
there, have the Center maintain the instruments at the Center's cost, and receive
discounted copying services at the Center. While they previously paid participation
fees to support these uses, they no longer wish to pay anything. Band members need
not even be members of the Center.
Ownership of Funds and Materials
City ownership of a performance group's music and equipment is not unique to the
NHB. For instance, the Center owns music purchased for the Voices of Experience
and the Family Folk Machine. Similarly, the Center owns the pool tables and
equipment, Senior Center Standing Room Only (SSRO) props, and anything else
purchased with funding collected by or for groups, clubs, and performance groups of
the Center. The City owns all these items, maintains them, and makes sure they are
ready for future use.
Groups, clubs, and performance groups often share resources. For instance, the
Family Folk Machine might use music acquired for the Voices of Experience or a drum
collected by the NHB.
When the issue of ownership initially came up with the Band, the City's legal
department's opinion was unequivocal. The City owns all band equipment, all funds
and anything purchased with those funds, all music, and all donations and memorials
given for the benefit of the NHB while a performance group at the Center. The NHB
was not, and is not, a legal entity, and thus is not capable of owning anything. The
NHB was a performance group of the Center, a division of the City of Iowa City, and
the City was the only legal entity available to accept donations or own property. The
Friends group was not incorporated until January 17, 2014.
Recent Center staff interactions with the NHB Steering Committee and
representatives of the Friends group have been based upon the above Center policies
and practices and the legal opinions related to ownership of funds and materials.
Transferring the music and instruments to the Friends group would raise the issue of
whether the Center should, in turn, transfer ownership of other materials and
equipment purchased or maintained in similar fashion, such as all the pool tables,
fitness room equipment, painting easels, etc. to entities similar to the Friends group
created in the future.
Funding Received from the Band Members in the Form of Memberships
3
The Center has provided the NHB with many services that are not factored in to the
band participation fees. Participation fees are used exclusively to cover material and
operating costs associated with the Band. They pay for music, equipment, instruction
by their chosen director and instructors, and other similar products and services.
Membership fees support the Center's operational budget. Current Band
membership is approximately 55 people. If all members paid non -city membership
fees of $60/year (vs. a city resident fee of $33/year, which is far more likely), the total
amount of revenue generated would be $3,300. This amount would not begin to
cover the annual cost of City services that have been provided to the Band at no cost
throughout its history.
Provided City services include:
1. Space: The Band uses a majority of the 1st, and 2nd floor of the Center two
mornings a week for practice. Other areas are used for ensemble practices and
small group practice throughout the week.
2. HR Services: Beginning in FY98 the City has managed the hiring and employment
of 5-6 part-time temporary student band instructors to work with band sections.
These employees changed annually, sometimes semiannually.
3. Finance: All the Band's finances have been processed and managed by the City
since the Band's inception. Center staff processed Band member registration,
collected and processed all Band participation fees each semester, and processed
all donations.
4. Copying: Copying services have been provided at cost.
5. Promotion: In the Program Guide, posters, press releases.
6. Program Support: Rental of Englert for performances, done in full and with
corporate sponsors secured by the Center. Concert refreshments.
7. Offsite Storage: Paid for storage of 6-8 file cabinets full of music from May 20,
2011 to December 2014.
8. Correspondence: Acknowledged all donations and memorials given to the NHB.
Forcing Agencies Dealing with Elderly Out of the Facility
No agency or service for older adults has ever been forced to leave the facility.
Agencies have grown out of their space; agencies have left under their own volition;
and a group that underutilized its space refused to accept a modified schedule and
left. The Center greatly values its existing partnerships with several external agencies
and is open to new partnerships that enhance services to seniors in the community.
Conclusion
Ms. Carter indicates that the NHB wants to stay at the Center. This is exactly what
the Center staff and Commission would like to have happen. The Senior Center
Commission and Senior Center Steering Committee would like to see the relationship
between the NHB and Center move forward. The following framework has been
presented to the Friends of Iowa City New Horizons Band – the group acting as the
Independent contractor for the NHB—for their consideration.
4
1. The City continues to own the music and equipment. It is maintained in a secure
environment and available for use now and in the future. The Band and all Band
groups that meet at the Center have access to all equipment and music.
2. Music composed or arranged by Band members should be returned to the
composer or arranger.
3. Equipment owned by the University of Iowa should be returned to the University
of Iowa or a formalized agreement developed outlining its use.
4. The Band is given the use of space on Tuesday and Thursday from 8:15-10:30 AM
for ensemble and large practice. Space for small group practice is also provided
as scheduled. All provided at no cost.
5. Promotion of Band events will be provided by the Center.
6. Membership is not required and the standard independent contractor fee of 25%
of the gross revenue (from participation fees) paid to the Center is waived. This is
consistent with how the Center works with other nonprofit organizations.
7. Copying is provided at cost.
8. Current funds in the NHB account (less than $600) are incorporated into the
operational budget and used to cover Friends of Iowa City New Horizons Band
copying costs. (Band's copying costs are approximately $1,000/year). A pay -in -
advance system is then established.
9. The Band performs 2 concerts a year at the Center.
Please feel free to contact me if you have any questions.
5
February 25, 2015
Council Members
410 E Washington Street
Iowa City, IA 52240
Dear City of Iowa City Council Members,
freemedicoi&dentotc:1iniC •
•
4f(3)
I am writing to provide a brief update about what has been happening at the Iowa City Free Medical and
Dental Clinic and in particular, how the Affordable Care Act has affected our patients and our services.
The last several years at the Clinic have been busy and rewarding. Clinic staff and volunteers continue to
provide treatment for acute and chronic health conditions to hundreds of people in our community. In
addition, the Free Clinic now serves as a gateway to health insurance coverage; the Johnson County Navigator
is on site to help patients with enrollment as her schedule allows, and Clinic staff talk with patients about the
ACA and encourage them to take advantage of new opportunities. While some of our patients have
successfully transitioned away from the Clinic and are now covered through Health and Wellness or
Marketplace plans, barriers to care remain a challenge for many Clinic users.
A common misconception of the Affordable Care Act is that everyone now has health insurance and access to
care, and that free clinics are no longer needed. This is not true today and may not be true for some time.
While the Clinic has seen a slight decrease in the numbers of patients and clinic visits - a 6.5% decrease in
patients and a 3% decrease in clinic visits between FY13 and FY14 — significant numbers of people remain in
need of our services. The decrease we have seen in Clinic usage has primarily been due to our staff receiving
fewer calls from people in need of appointments for acute (immediate) health concerns. However, this has not
the case for patients with chronic (ongoing) health concerns; our 4 weekly chronic disease clinics remain filled
and we continue to have a waiting list of between 4 and 6 weeks for new patients with chronic conditions to
establish care. For this population, the Clinic serves as a medical home and as a result, the care provided is
more labor intensive and expensive.
Individuals who remain in need of Clinic services include:
• People who are between insurance coverage, due to job transitions or relocations;
• People who are in the process of getting enrolled;
• People who don't understand the ACA and/or are unable to navigate the system;
• People who can't find an affordable option, even with subsidies;
United
Iowa City Free Medical Clinic PHONE 319-337-4459 1 Way .
Dick Parrott Free Dental Clinic FAX 319-341-0054
2440 Towncrest Drive E-MAIL info@freemedicalclinic.org
Iowa City, IA 52240-6622 WEB SITE www.freemedicalclinic.org
• People who are enrolled but face additional challenges to receiving care, including transportation,
limited childcare, and/or getting time off work;
• People who are exempt from the law's individual mandate, including:
o individuals who are uninsured for less than 3 months;
o individuals who do not file federal taxes due to low income;
• People who are underinsured, including:
o individuals who, for reasons of affordability, select "catastrophic coverage";
o individuals who are insured but cannot maintain the ongoing costs of premiums, co -pays
and deductibles;
• Legally present, low-income immigrants who have been in this country for less than 5 years and do
not qualify for Iowa's Health and Wellness;
• Undocumented individuals.
Over the past several years, the Clinic has seen an increase in the number of Spanish speaking
individuals in need of our services. We have seen an increase in numbers of Hispanic, African American
and Black patients. As mentioned above, we are receiving fewer calls from people with acute health
problems while at the same time, receiving a steady number of calls from people diagnosed with
chronic medical conditions. We are receiving increasing requests for dental services. We are also
seeing people who were recently insured but are returning to the Clinic due to an inability to afford
increased premium costs.
The Affordable Care Act has already expanded access to care for thousands of people in Iowa, and we
hope to see these numbers increase. But it will take time to gauge the long term effects of the ACA,
and during these transitional years, Clinic services remain necessary and important.
Please contact me if you would like additional information. On behalf of the Clinic's Board of Directors
and staff, thank you for your continuing support of the Clinic's mission.
Sincerely, 1
Barbara Vinograde
Executive Director
319-337-9727
bvinograde@freemedicalclinic.org
Marian Karr
4f(4)
From: Matt Hayek
Sent: Thursday, February 26, 2015 8:55 AM
To: 'hamlin 101 @centurylink. net'
Cc: Council; Eleanor M. Dilkes; Marian Karr; Tom Markus; Eric Goers
Subject: RE: Colonial Lanes
Mr. Hamlin:
City Council members receive numerous emails and other inquiries about city business on a daily basis. We often rely on
city staff to provide responses, especially when the matters involve detailed ordinances or policies. This generally
results in a faster and more informative response to members of the public.
I do not know if you have an association with Colonial Lanes, but I can tell you that its attorney contacted me and
requested a meeting regarding its exemption status. I agreed and spent roughly an hour at his office on Friday, February
20.
Your complaints regard an ordinance that was enacted in 2010 and has twice been supported by the voters. Whether
you would like the City Council to dump the ordinance altogether — or reform certain portions of it — is unclear to
me. Either way, I encourage you to attend our City Council meetings. The next one is March 9 at 7pm at City Hall and
community comment is near the beginning of the agenda. You can also meet one on one with City Council members
who — to a person — are quite accessible.
Regards,
Matt Hayek
Iowa City Mayor
From: Scott & Ros <hamlin 101@centurylink.net>
Date: February 24, 2015 at 6:54:46 PM CST
To: <council@iowa-city.org>
Subject: RE: Colonial Lanes
Do you people think you are above responding to me? If you do then maybe you should respond with your letters of
resignation. Now that we are all on the same page, please respond in a timely fashion.
Thank you
From: Scott & Ros[mailto:hamlin101@centurylink.net]
Sent: Thursday, February 19, 2015 6:23 PM
To: 'Eric Goers'
Cc:'Marian Karr'; 'Eleanor M. Dilkes';'Tom Markus';'council@iowa-city.org'
Subject: RE: Colonial Lanes
Mr. Goers,
Thank you for your response, but I did not address my comments to you. I addressed them to the council, and it is from
the council I expect a response from. Now I will address some points you made in your email.
I am not questioning the under 21 ordinance. I came from a place where you had to be 21 to enter a bar period.
If you revoke an exception from a restaurant, there is another restaurant to go to, not that a lot of people eat after
10PM
Once again, the name of the establishment is Colonial Lanes, Not Colonial Bar and Bowling.
I understand I can accompany my daughter to the bowling alley, but I shouldn't have to. It's a bowling alley.
Not once did you address who you are attempting to punish by removing the exception because the fact is your
punishing every high school kid and every young adult under the age of 21. Not the bowling alley.
Notices are posted, but will not grab a person's attention entering the bowling alley. A night club still has someone
checking ID's. This is nothing but a money grab by the city for fines.
Of course my daughter could bowl after 10 PM without an adult or guardian if alcohol sales were suspended at 10
PM.
What the City has done by doing this is taken away a local hangout for young adults and high school kids on a
weekend. They are now limited to movie theaters and some ones house. You know where I am going with this. Even
though the City says it is not a problem, with less and less places for people under 21 to go, then house parties will
become an option.
Those are my points, now I will wait for a response from each and every one of the council. I do not expect a response
from any other city official. This City has a lot of other issues that the City Manager and City Attorney need to address.
Thank you
Scott Hamlin
From: Eric Goers [mailto:Eric-Goers@iowa-city.org]
Sent: Thursday, February 19, 2015 9:14 AM
To: 'hamlin101@centurylink.net'
Cc: Marian Karr; Eleanor M. Dilkes; Tom Markus
Subject: Colonial Lanes
Mr. Hamlin,
Thank you for your letter. As I'm sure you're aware, Iowa City has been working to reduce underage and binge drinking
for decades. During the last decade, there were times when it appeared we were losing that battle, to the detriment of
us all. This lead to renewed efforts on the part of the City to reduce those and accompanying behaviors. After trying a
number of alternatives with minimal success, it became clear that an under 21 ordinance was necessary.
in order to foster live entertainment, protect establishments that sold alcohol but were not primarily in the alcohol
business (such as restaurants and bowling alleys), and to allow for alcohol -free events, a number of exceptions were
written into the under 21 ordinance for qualifying businesses. Parents could also accompany their children into any of
the establishments at any time. In order to ensure that the exceptions did not swallow the rule, businesses which were
granted exception certificates had to demonstrate that they could be effective in keeping alcohol out of the hands of
underage patrons. If the Police Department had cause to believe a business was not effective in preventing underage
drinking, Council gave them authority to revoke the exception certificate. One cause for revocation explicitly listed in the
law is the sale of alcohol to minors more than once within 5 years. Council considered a shorter window (2 years), but
decided to go with 5 years. Colonial Lanes sold to minors twice in less than 3 months, so their exception certificate was
revoked.
The City appreciates that Colonial Lanes is not a den for underage drinking. However, the City must be consistent in
enforcing the law. Colonial Lanes is not the first establishment to lose their exception certificate. In fact, several other
establishments have already lost theirs. In response, two establishments gave up their liquor licenses so they could host
customers of any age at any time of day or night. Colonial Lanes could do the same if they so choose. If they do not
choose to do so, you can accompany your daughter any time. Of course, she can also bowl until 10 p.m. without a
parent or guardian present. Notices must be posted at every entrance informing patrons of the restrictions of the
ordinance, so they are not caught by surprise.
Although they took no remedial steps after the first sale to a minor, Colonial Lanes did so after the 2nd sale, so we
expect no further sales to minors. Consequently, we hope your daughter and her friends continue to enjoy bowling
there.
Eric Goers
Assistant City Attorney
410 East Washington Street
Iowa City, IA 52240
319-356-5030
319-356-5008 Fax
eric-goers@iowa-city.org
Notice:
Since e-mail messages sent between you and the City Attorney's Office and its employees are transmitted over the
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received this message in error. Please notify the person sending the message and destroy your copy. Thank you.
From: Scott & Ros[mailto:hamlin101@centurylink.net]
Sent: Monday, February 16, 2015 5:55 PM
To: Council
Subject: Colonial Lanes
Honorable Council,
I want to address the issue with Colonial Lanes that arose this weekend with a punishment you feel is pertinent to what
they did wrong. They failed two undercover stings and you in turn have taken away their exemption status. I disagree
with this punishment and will tell you why.
First of all it is a bowling alley that sells alcohol, it is not a bar with a bowling alley inside of it. It was one of a few places
in the City of Iowa City that our young people could go to on a Friday or Saturday night. That is not possible anymore for
fear of getting a $300 to $625 fine (per the sign at the bowling alley). Who are you trying to punish here? They bowling
alley or the kids of Iowa City. I have heard that the bowling alley also takes no responsibility if a person under 21 is
caught in the bowling alley. Once again, who are you trying to punish? Our child bowls competitively and her and her
team mates often went to the bowling alley to practice. Now if she wants to get some games in, it appears she has to
drive all the way up to Cedar Rapids to practice. Once again, who is the ones being punished here. Also with this
scenario you have increased her chance of something going wrong on the trip such as a breakdown or an accident. I
hope for her sake and yours that latter does not happen.
The council put no thought into this so called punishment to the bowling alley. This is straight out of the Town of
Beaumont. We have to protect our youth. In your rush to judgment, you forgot the bowling alley is a place for families to
go and a place for young people to hang out. Do you want to punish the bowling alley? Make them close down the bar
at 10 PM. No more alcohol sales after 10 PM. Allow the youth of Iowa City a place to go on a weekend night without fear
of getting an ungodly fine. If you want to keep this idiotic punishment, then you best have the bar, I mean bowling alley,
hire a bouncer to check ID's of people entering the establishment so there is no mistakes made by an unsuspecting
person under the age of 21.
This is a real simple fix, and I expect you to make it happen. You seven people need to use a little common sense every
now and then. I also want a response to this email, I don't expect it to fall on deaf ears.
Thank you
Scott Hamlin
This correspondence will become a public record.
Marian Karr
From: GARY L HENRY <quinnhenry@msn.com>
Sent: Tuesday, March 03, 2015 11:26 AM
To: Council
Subject: Biodiversity
Dear Iowa City Council Members,
4f(5)
I'm worried about the lack of butterflies & bees in my yard. I'm worried about my ash trees in our parks. I'm
worried about the impaired waterways running through our community. Human life in our city is taking a huge
toll on our natural environment!
Can you help our city to become a leader in protecting biodiversity? I urge you to consider and adopt the
management strategies in Biodiversity for a Healthy Future. I understand this strategies document will be
presented to the city council on 3/9/15.
Iowa City needs the council to lead the way for citizens and concerned professionals. Let's all work together to
foster biodiversity here in our fair city.
Thanks for Listening,
Linda Quinn 2949 Creighton St, Iowa City 52245
Proposed Biodiversity Management Strategy
Marian Karr
From: Fred Meyer <fred.meyer@BackyardAbundance.org>
Sent: Monday, March 09, 2015 6:53 AM
To: Council
Cc: Scott Koepke; 'Laurian, Lucie'; Liz Maas; 'Connie Mutel'; Tom Markus
Subject: City Biodiversity Management Strategy
Attachments: BiodiversityManagementStrategy.pdf
Dear City Council Members:
I am resending this Biodiversity Management Strategy message to the council email address so it is available to
the public.
Thanks, again, for your assistance.
Fred Meyer
Backyard Abundance Director
http://www.BackyardAbundance.org
https://www.facebook.com/BackyardAbundance
319-325-6810
From: Fred Meyer [mailto:fred.meyer@BackyardAbundance.org]
Sent: Sunday, March 01, 2015 11:53 AM
To: 'matt-hayek@iowa-city.org'; 'susan-mims@iowa-city.org'; 'Kingsley-Botchway@iowa-city.org'; 'terry-
dickens@iowa-city.org'; 'rick-dobyns@iowa-city.org'; 'michelle-payne@iowa-city.org'; 'jim-
throgmorton@iowa-city. org'
Cc: Scott Koepke (skoepke@newpi.coop); 'Laurian, Lucie'; Liz Maas (transitionecology@gmail.com); 'Connie
Mutel'
Subject: City Biodiversity Management Strategy
Dear City Council Members:
Please consider implementing a Biodiversity Management Strategy for Iowa City.
A Strategy Created by Experts
As you likely know, the decline of monarchs, honeybees, and other species is becoming commonplace and Iowa
City residents are very concerned. To address this issue, experts from Backyard Abundance, New Pioneer,
Transition Ecology, and the University of Iowa collaborated to create the attached Biodiversity Management
Strategy that we urge you to help implement.
This heavily -researched strategy includes the following core components:
Update and improve the Sensitive Natural Areas Ordinance
Transform the City's Forestry Department into a new Department (or Division) of Biodiversity Services
Increase biodiversity by devising an ecological network
Educate Iowa Citians about what has been accomplished in other cities
Build Upon Past Success
We can leverage past habitat restoration successes that are represented in many Iowa City landscapes. In
addition to a summary of the strategy and rationale for its importance, the attached document contains details
about how these landscapes can be expanded and replicated.
Next Steps
We will publically request your assistance with the strategy during the March 9 council meeting. This will be
the first step in taking ongoing actions that will eventually permeate many of Iowa City's landscape decisions.
Many organizations and residents are prepared to assist you and city staff with planning and implementation.
Thank you in advance for helping increase the biodiversity of Iowa City.
Fred Meyer
Backyard Abundance Director
http://www.BackyardAbundance.org
https://www.facebook.com/BackyardAbundance
319-325-6810
Biodiversity for a Healthy Future February 18,2015
A Proposed Biodiversity Management Strategy for Iowa City
Executive Summary
This past summer we heard innumerable Iowa Citians express a complex of interrelated worries: "Have
you seen any Monarch Butterflies this summer?" "I haven't seen any bees; have you?" "Where are the
bats?" "Oh no, I've just heard that the Ash trees are dying and must be cut down." And many more. All of
these worries are related to the decline in biodiversity, both here and worldwide.
In light of these and many other signals, we believe Iowa City should develop a biodiversity management
strategy.
Our purpose is to identify the core parameters of such a strategy and to encourage the City Council to
incorporate the strategy into Iowa City's Comprehensive Plan, Annual Budget, Capital Improvements
Program, Strategic Plan, and other relevant city policies and programs.
We urge Iowa City government to devise and follow a biodiversity management strategy, which would
include the following core components:
• Update and improve the Sensitive Natural Areas Ordinance
• Transform the City's Forestry Department into a new Department (or Division) of Biodiversity Services
• Increase biodiversity by devising an ecological network
• Educate Iowa Citians about what has been accomplished in other cities.
What is biodiversity?
Scientists define biodiversity as the variability among living organisms from all sources, including among
other things, terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they
are a part. It refers to diversity within species, among species, and among ecosystems. It can, therefore,
be measured in different ways, depending on the scale used. There are approximately 1.2 million
officially named species, and there may be as many as --30 million additional species that have not yet
been classified or named.
Why is biodiversity important?
Healthy ecosystems perform services that are vital to the
physical and mental/emotional health of humans and to the
long-term survival of the human species. As Iowa City's 2013
Sustainability Assessment (p. 48) states, "Native
ecosystems... clean water, and air, provide flood protection by
decreasing runoff, sequester carbon, and are habitat for a wide
array of animals, insects, microbes and plants that provide us
with medicine, pollination, foods, and aesthetic beauty." These
ecosystem services are often ones that economic markets either
cannot provide or else can provide only at much higher cost.
What has happened to this biodiversity in the Iowa City area?
The site of Iowa City used to be located amid one of the most diverse and complex landscapes in North
American: the tallgrass prairie. Our city was built on the western edge of still another major biological
community: the oak -hickory woodlands. Interspersed with these woodlands and grasslands were wetlands
- communities defined by plants and animals adapted to an abundance of water.
Together, these communities housed many thousands of species, which worked together to provide homes
and food for all residents in perpetuity. In a time frame meaningful to humans, these communities were
highly resilient and regenerative; they attained what we should now be emulating.
In the years since 1830, settlers and residents converted nearly all of these original ecosystems into
farmland and cityscapes. Here in Iowa City, the native prairies, woodlands, and wetlands were plowed
up, paved over, built upon, and influenced by humans in less obvious ways, for example, by the
construction of transportation networks that interrupt species migration pathways.
The disappearance or extensive decline of native species from the Iowa City area and the more recent
Biodiversity for a Healthy Future
Prepared By
Scott Koepke
Education Outreach
Coordinator
New Pioneer Co -Op
Lucie Laurion
Associate Professor
School of Urban Planning
University of Iowa
J. Elizabeth Maas
Transition Ecology, LLC
Fred Meyer
Director
Backyard Abundance
Connie Mutel
Sr. Science Writer and
Archivist
Hydroscience and
Engineering
University of Iowa
signals of further decline are not isolated events. They are instead part of a much larger worldwide
problem with global repercussions. That worldwide problem is what prominent contemporary biologists
have termed the 6th mass extinction of life on earth.
The current loss of biodiversity in Iowa City (e.g., the Indiana bat and ornate box turtle) and elsewhere is,
in other words, caused by human activities.
Habitat fragmentation, habitat loss, pollution, and invasive species are the principal factors leading to the
loss of biodiversity. Climate change and over -harvesting are also contributors to biodiversity loss, but they
are difficult to measure for Iowa City.
In spite of these many threats, a few remnants of Iowa's pre -settlement woodlands, prairies, and wetlands
can still be found in Iowa City. Examples include Ryerson Woods and large portions of Hickory Hill Park,
and the Sand Prairie located south of Highway 6 and just east of Sand Road.
What has Iowa City already done to preserve and fortify biodiversity?
Native biodiversity can be fostered through efforts such as replanting prairies, restoring woodlands, and
replenishing wetlands. Iowa City has already taken many positive steps in this direction, including:
• In the mid-1990s the City inventoried and mapped all "sensitive natural areas" within the city. That
inventory was used as the basis for adopting a Sensitive Natural Areas Ordinance in 1995.
• In 2001 the City created Sycamore Greenspace, a 55 -acre wetland
• The City created Waterworks Park as a 230 -acre constructed prairie and wetland.
• In 2014 the City produced its first Sustainability Assessment.
What more can be done?
We urge Iowa City government to devise and follow a biodiversity management strategy, which would
include the following core components:
• Update and improve the Sensitive Natural Areas Ordinance. Adoption of the Sensitive Natural
Areas ordinance was an important first step. But the inventory of areas needs to be updated,
biodiversity inventories need to be conducted, and the ordinance needs to be strengthened.
• Transform the City's Forestry Department into a New Department (or Division) of Biodiversity
Services. Creating this new organizational unit and providing it with adequate resources would be a
major step toward protecting, enhancing, and expanding the quality of natural areas within the city.
We recognize that budgetary constraints limit what Iowa City government can actually do in the short
run. With that in mind, we urge the City and a new Dept. of Biodiversity Services to recruit volunteers
who can assist in conducting "bioblitzes" and to support/assist citizen science activities.
• Increase biodiversity by devising an ecological network. Provided with adequate resources,
assisted by other experts in the Iowa City area, and aided by organized teams of volunteer "citizen
scientists," the proposed Dept. of Biodiversity Services could devise an ecological network strategy
that would integrate the local Iowa River watershed into a coherent system of protected core natural
areas ecologically connected to one another by both natural and semi -natural linkages.
• Educate ourselves about what has been accomplished in other cities. Several cities in Europe and
the United States have already prepared inspiring biodiversity plans, and much can be learned from
them.
Conclusion
Iowa City has taken important actions over the past 20 years,
but much more can and should be done. Rather than being an
agent of biodiversity decline, we Iowa Citians can play an
important role in fostering and protecting the world's
biodiversity.
When we look many decades into the future, we foresee an
Iowa City that constitutes a place in which not just humans but an
increasingly wide range of native and beneficial species can
thrive. But this future can exist only if we take action now to
increase our collective capacity to make it happen.
Biodiversity for a Healthy Future
Biodiversity for a Healthy Future
This past summer we heard innumerable Iowa Citians express a complex of interrelated worries: "Have
you seen any Monarch Butterflies this summer?" "I haven't seen any bees; have you?" "Where are the
bats?" "Oh no, I've just heard that the Ash trees are dying and must be cut down." And many more. All of
these worries are related to the decline in biodiversity, both here and worldwide.
In light of these and many other signals, we believe Iowa City should develop a biodiversity management
strategy.
Our purpose is to identify the core parameters of such a strategy and to encourage the City Council to
incorporate the strategy into Iowa City's Comprehensive Plan, Annual Budget, Capital Improvements
Program, Strategic Plan, and other relevant city policies and programs.
We urge Iowa City government to devise and follow a biodiversity management strategy, which would
include the following core components:
• Update and improve the Sensitive Natural Areas Ordinance
• Transform the City's Forestry Department into a new Department (or Division) of Biodiversity Services
• Increase biodiversity by devising an ecological network
• Educate Iowa Citians about what has been accomplished in other cities.
What is biodiversity?
Scientists define biodiversity as the variability among living
organisms from all sources including, among other things,
terrestrial, marine, and other aquatic ecosystems and the
ecological complexes of which they are a part.
Biodiversity refers to diversity within species, among species,
and among ecosystems. It can, therefore, be measured in
different ways, depending on the scale used.
Ecosystem diversity can be measured by counting the number
and variety of community types in an area. Greater ecosystem
diversity indicates greater potential for different types of
species to inhabit an area. For example, an area with a variety
of vegetation holds more biodiversity than the same size area with one plant type.'
Measurement of species biodiversity involves counting the numbers of different types of organisms in a
habitat.
Measuring genetic diversity, on the other hand, requires counting the number of genetically different
organisms in the population of a single species. While one might think that a larger number of species
demonstrates a higher level of biodiversity, it is important to recognize that the survival of a species
requires a habitat that can support an appropriate number of individuals to keep the gene pool healthy.
Measuring biodiversity then is very challenging. There are approximately 1.2 million officially named
species. However, there may be as many as —30 million or more additional species that have not yet
been classified or named. Again it depends on the scale and the definition of species.2
Over the last 3.6 billion years, all species have been evolving intricate mechanisms to work with other
species, to compete for resources, and to develop a very multifaceted interactive system that we are only
just beginning to understand. For example, the suitability of soil for growing productive crops depends on
the interconnected nature of plants, soil microbes, fungi, invertebrates, and protists. How this multitude
contributes, and what happens when even one species is missing, is still unknown3, but plants may use
fungi as a communication system.4
Why is biodiversity important / advantageous?
Healthy ecosystems perform services that are vital to the physical and mental/emotional health of humans
and to the long-term survival of the human species. As Iowa City's 2013 Sustainability Assessment (p. 48)
states, "Native ecosystems... clean water, and air, provide flood protection by decreasing runoff,
sequester carbon, and are habitat for a wide array of animals, insects, microbes and plants that provide
us with medicine, pollination, foods, and aesthetic beauty."
Biodiversity for a Healthy Future
These ecosystem services are often ones that economic markets either cannot provide or else can provide
only at much higher cast. Environmental economist Robert Costanza calculated the value of 17 ecosystem
services, the functioning of which depends on maintaining functional, high levels of species biodiversity. He
measured what it would cost if citizens had to pay for services like pollination, soil formation, erosion
control, flood mitigation, water supply, food provision, etc. According to Costanza's initial estimate, the
total cost/value of these ecosystem services for the United States as a whole was $46 trillion per year (in
2007 dollars).s In May of this year, on independent scientist re -calculated Costanza's estimate for 2011
dollars and believes the value to be $125 trillion.6
What has happened to this biodiversity in the Iowa City area?
The site of Iowa City used to be located amidst one of the most
diverse and complex landscapes in North American: the tallgrass
prairie. Our city was built on the western edge of still another
major biological community: the oak -hickory woodlands that
stretched from here eastward to the Atlantic Ocean.
Interspersed with these woodlands and grasslands were
wetlands - communities defined by plants and animals adapted
to an abundance of water.
Together, these communities housed many thousands of species,
which worked together to provide homes and food for all
residents in perpetuity. In a time frame meaningful to humans,
these communities were highly resilient and regenerative. They
attained what we should now be emulating. They assured that
their resident species would survive into the indefinite future -
just as they had survived (with one major caveat discussed
below) since the last glaciers disappeared over 10,000 years
ago.
In the years since 1830, nearly all of these original ecosystems were converted into farmland and
cityscapes. Here in Iowa City, the native prairies, woodlands, and wetlands were plowed up, paved over,
built upon, and influenced by humans in less obvious ways, for example, by the construction of
transportation networks that interrupt species migration pathways.
The disappearance or extensive decline of native species from the Iowa City area and the more recent
signals of further decline are not isolated events. They are instead part of a much larger worldwide
problem with global repercussions. That worldwide problem is what prominent contemporary biologists
such as Edward O. Wilson have termed the sixth mass extinction of life an earth.?
In the Iowa City area this sixth mass extinction in geological history has come in three phases over the past
15,000 years: the first phase involved the mass extinction of Megafouna (e.g, giant sloth) following the
arrival of the first human hunter -gathers; the second involved the conversion of Iowa's prairies into
farmland during the 1800s; and the third has involved the industrialization of agriculture, the dramatic
spatial expansion of urban areas, and the construction of extensive transportation systems in the period
after 1950.
The current loss of biodiversity in Iowa City (e.g., the Indiana bat and ornate box turtle) and elsewhere is,
in other words, caused by human activities.s 9
Habitat fragmentation, habitat loss, pollution, and invasive species are the principal factors leading to the
loss of biodiversity. Climate change and over -harvesting are also contributors to biodiversity loss, but they
are difficult to measure for Iowa City.10
Habitat Fragmentation
Throughout Iowa, native habitats have been fragmented by industrial agriculture, urban development,
and highways and roadways. If individuals of the some species cannot travel to and find each other, they
cannot mate and the overall genetic diversity of a population is reduced, putting that species at risk for
extinction. This is, for example, the case for many amphibian species across Iowa. These small and
seemingly insignificant species are actually very important as they are near the bottom of the food web
and provide nutrients to many birds and mammals.
Biodiversity for a Healthy Future
Habitat Loss
Less than 1/10 of 1% of the state's native prairie remains; Iowa
is the most altered landscape in the United States.12 Again
consider the scale: many diverse habitats can support many
different species; however, much of this native habitat has been
either removed or altered. The State lists 109 animals and 360
plants endemic to Iowa as threatened or endangered with
extinction or extirpation (removal from a particular area).ls (The
U.S. Fish and Wildlife Service lists 43 different pollinators as
nationally threatened or endangered. Its website states, "Early
conservation to avoid the need to list species is a far more
economical and practical approach to protecting our nation's
biological heritage."14
Pollution
Iowa's rivers, creeks and streams are contaminated with too much soil from erosion produced by
agricultural practices and urban development, with high levels of bacteria from human and animal waste,
and with high levels of nitrogen and phosphorus from fertilizers and other chemical pollutants from
herbicides and pesticides used on both lawns and agricultural areas. Coal burning for electrical
generation also contributes to air and water pollution. A 2011 report (Losing Ground) from Iowa State
University and the Environmental Working Group documents that parts of Iowa lost 2 to 12 times more
than the 3.9 tons/acre/year average reported by the U.S. Department of Agriculture in 2007.15 A 2000
report from the U. S. Geological Survey finds that Iowa has higher concentrations of nitrate and total
phosphorus in streams than in the rest of the nation.
The Iowa Department of Natural Resources' 303(d) list identifies over 770 creeks, streams, lakes, rivers as
"impaired." For these impaired waterways, effluent limits will not be sufficient to meet all state water
quality standards as defined by the Clean Water Act and within the context of "pollution" as defined by
the U. S. Environmental Protection Agency. The State is required to calculate Total Maximum Daily Loads
(TMDLs) for pollutants causing impairments. Ralston Creek, Muddy Creek, an unnamed tributary of Ralston
Creek, Old Man's Creek, Snyder Creek, and all three reaches of the Iowa River as it flows through Iowa
City are on this list of "impaired" waterways.
Invasive Species
Invasive species can alter entire native habitats by reducing ecosystem functions, by replacing native
species, and thereby reducing diversity.18 The threats posed by invasive species are costly to manage:
removal of invasive species takes time, much physical labor, and the use of chemicals, and it is rarely fully
successful. The best defense against invasive species is a healthy, functional ecosystem that can rebuff
exotic species that are trying to get a "foothold." Many invasive species are still sold at local nurseries
and planted by residents. They then escape to natural areas where land managers must deal with them.
In 2014 one of us completed a prescribed fire on a trust property in an effort to manage burning bush, a
cultivar species many folks have in their landscaping but which has now escaped to the woods. Despite
paid labor by our Land Steward and the Conservation Corps of Iowa, and despite many volunteer hours,
the species remains present and is gaining ground. The State has a noxious weed list19; however, it takes
action by the State Legislature to have invasive cultivar species added to the list. Until that happens,
nurseries can continue to sell these species.
In spite of these many threats, a few remnants of Iowa's pre -settlement woodlands, prairies, and wetlands
can still be found in Iowa City. Examples include Ryerson Woods, large portions of Hickory Hill Park, and
the Sand Prairie located south of Highway 6 and just east of Sand Road. Friends of Hickory Hill Park
exemplifies the extent to which local volunteers are willing and able to donate extensive amounts of time
and money toward restoring these remnants.
What has Iowa City already done to preserve and fortify biodiversity?
Native biodiversity can be fostered through efforts such as replanting prairies, restoring woodlands, and
replenishing wetlands. Iowa City has already taken many positive steps toward preserving and fortifying
biodiversity, including:
In the mid-1990s the City inventoried and mapped all "sensitive natural areas" within the city. This
inventory was used as the basis for adopting a Sensitive Natural Areas Ordinance in 1995. This
ordinance intends to preserve natural areas and maintain native populations of plants and animals.
Biodiversity for a Healthy Future
• In 2001 the City created Sycamore Greenspace, a 55 -acre wetland which aids in the management
of stormwater runoff and provides space for native plants, wildlife habitat, trails, and public art. It is
maintained by volunteers and the City's Public Works Department.
• The City created Waterworks Prairie Park in 2003 as a 230 -acre constructed prairie and wetland.
• In the early 2010s the City assessed the physical conditions of the 3,347 -acre Willow Creek and
5,850 -acre Ralston Creek watersheds, focusing especially on stream bank erosion carrying
contaminants such as nitrogen and phosphorous from lawns. The 16,400 -acre Snyder Creek
watershed (much of which currently lies outside Iowa City) has not yet been assessed.
• In 2014 the City produced its first Sustainability Assessment. This marks a major step forward and
provides an excellent preliminary foundation for subsequent work.
What more can be done?
Following are the core components of a biodiversity management strategy for Iowa City.
Update and improve the Sensitive Natural Areas Ordinance
Adoption of the Sensitive Natural Areas ordinance was an
important first step. But the inventory of areas needs to be
updated, biodiversity inventories need to be conducted, and the
ordinance needs to be strengthened. In December 2014, for
example, the City Council approved a Sensitive Areas
Development Plan and preliminary plat for a 115 -lot, —35 -acre
residential subdivision in the southeastern part of the city,
despite the fact that only 37.7% of the existing 9.9 acres of
woodland would be preserved. Elimination of these woodlands
— which were acting as a carbon sink; as a sponge for
absorbing precipitation and delaying runoff; and as habitat for
mammals, birds, reptiles and amphibians, and bats — was permitted because the sensitive areas
ordinance currently allows for more than 50% of the woodlands on a property to be removed if an
appropriate tree replacement plan is submitted indicating a replacement ratio of 1 tree per 200 square
feet of woodland lost above the 50% allowed.
Transform the City's Forestry Department into a new Department (or Division) of Biodiversity Services
Creating this new organizational unit and providing it with adequate resources would be a major step
toward protecting, enhancing, and expanding the quality of natural areas within the city. As one
important initial action, this new department could inventory and evaluate the age, species, condition and
location of trees within the city. Such an inventory/evaluation would enable city staff and volunteers to
respond effectively to future infestations (such as the current infestation by the Emerald Ash Borer). It
should also be City policy to replace trees that must be removed on a one-to-one basis. Over the longer
term, this new department should inventory other important mobile species (except perhaps deer). By
undertaking these and other actions, this new Department of Biodiversity Services could help to transform
Iowa City into an oasis for diverse species trying to make it through the forthcoming "bottleneck"
associated with biodiversity decline and species extinction. The Department could also focus attention on
botanical systems that enhance pollinators and beneficial insects (as recommended in the research by
Xerces Invertebrate Society).
We recognize that budgetary constraints limit what Iowa City government can actually do in the short run.
With that in mind, we urge the City and its new Department of Biodiversity Services to recruit volunteers
who can assist in conducting "bioblitzes" and to support/assist citizen science activities. In 2006 New York
City conducted a "bioblitz" in Central Park, which may have been the first urban event of its kind. Urban
bioblitzes have been replicated since in a few other large cities. Iowa City could be the first Midwestern
city to conduct one of these.21
Increase biodiversity by designing an ecological network
Provided with adequate resources, assisted by other experts in the Iowa City area, cooperating with
partners such as the University of Iowa's Office of Sustainability, and aided by organized teams of
volunteer "citizen scientists," the new Department of Biodiversity Services could design an ecological
network that would integrate the local Iowa River watershed into a coherent system of protected core
natural areas (both public and private), which would be ecologically connected to one another by both
Biodiversity for a Healthy Future
natural and semi -natural linkages. Such an approach would increase biodiversity and enhance ecological
functioning by growing the natural connections between core areas and their surroundings. This would
enable animals, plants and ecological processes to persist by facilitating critical processes such as nutrient
flow, genetic exchange, resource movement, and food growth.
An ecological network has three main landscape elements: core areas, linkages, and matrix.
• Core areas: Core areas are habitat patches of suitable size and quality to provide environmental
conditions that support entire populations of animals and plants and associated ecological functions.
The City of Iowa City owns extensive parcels of land, which could act as the core areas of an
ecological network. Several of these parcels are quite large, most notably: 200 -acre Waterworks
Prairie Park, 185 -acre Hickory Hill Park, 152 -acre Trueblood Recreation Area, 140 -acre Peninsula
Park, 108 -acre IC Kickers Soccer Park, 107 -acre City Park, 49 -acre Ryerson Woods Park, 43 -acre
Scott Park, 38 -acre Sturgis Ferry Park, 55 -acre Sycamore Greenspace (wetland), and the planned
Riverfront Crossings Regional Park. City government currently spends a fair amount of money mowing
large parts of these core areas. Instead of being mowed, much of this land could be managed for
biodiversity.
• Linkages: Natural or semi -natural vegetation should be linked to enhance either structural
and/or functional connectivity (for species, communities or ecological processes) among the core
areas. Key types of linkages include:
• Stepping stones: These are non-linear patches that provide many resources for species but may
not be of sufficient size or quality to provide for all habitat requirements or ecological functions.
They are usually separated by a less hospitable matrix or linked by corridors. For example,
residential landscapes and small city -owned urban parks and natural areas could serve as
stepping stones; e.g., Longfellow Prairie, Rohrer Road Prairie, Sand Prairie, Oxeye Prairie, and
Whispering Meadows Wetland Park.
• Corridors: These are linear patches that enhance movement among other habitat patches such as
core areas or natural stepping stones. The city's three major creeks — Ralston, Willow, and
Snyder — and their tributaries could act as major corridors. The city's extensive and growing
network of bike trails could provide additional corridors, as could portions of major street right-
of-ways, such as Highways 1 and 6.
• Matrix: This includes all land not considered part of core areas or linkages. Primary examples of
land that could be made more supportive of biodiversity include rooftops and parking lots.
Three other elements are critical to the proper functioning of an ecological network: buffers, barriers, and
social structure.
• Buffers: Core areas and linkages should be protected from negative impacts associated with
roadways, parking lots, and other routine human activities. In other words, a buffer allows conflicting
land uses to coexist and mitigates edge effects.
• Barriers: Elements that currently deter reduce connectivity and constrain the movement of wildlife
(such as roads) should be identified and, where possible, ameliorated.
• Social structure: Improving the way humans relate to landscapes and wildlife is crucial for the
ecological network's long-term health and management. By weaving desired food, energy, and other
natural capital into all relevant landscapes, people will be encouraged to learn how to assist with
management activities and thereby contribute to the health of the network.
Educate ourselves and other Iowa Citians about biodiversity
management in other cities
Several cities in Europe and the United States have already
prepared inspiring biodiversity plans, and much can be learned
from them. A few notable examples include the following:
• The Biodiversity Plan of Paris, France: Paris' biodiversity
planning represents a comprehensive approach.22 The city
emphases corridors, ponds/wet areas within the city, bee
populations, and ecological management of city -owned
parks. Paris officials mapped temperature distributions, air
Biodiversity for a Healthy Future
pollution, tree heights, and green walls and roofs.23
• London's Biodiversity Action Plan:24 The London Plan organizes its biodiversity initiatives by habitat
type. Arguably, the habitat -by -habitat structure makes a lot of sense for a huge land area like the
greater London. It allows both thorough and targeted interventions. A few interesting elements of
London's plan include: the participation of churchyards, cemeteries etc.; the "Design for diversity"
element under "built structures," especially on green roofs; and treating previously developed
wastelands as a habitat form of their own.
• New York City's "Forever Wild" program: Arguably New York City is among the top cities in the
U.S. for biodiversity protection; they have a huge amount of parkland, wetlands, etc. in all five
boroughs. The City Parks and Recreation Department's Forever Wild program highlights, protects and
restores wilderness elements in the city.25 The city's Natural Resources Group — which began as a
group of experts who wanted to inventory existing wilderness in the city — could provide a model for
Iowa City.2e
• Edmonton, Canada: Edmonton is much closer than Paris and New York to Iowa City in scale and
environmental context. Their Biodiversity Action Plan builds explicitly on the programs created by the
International Council for Local Environmental Initiatives (ICLEI), which emphasizes core natural areas
and ecological networks.27 All elements have related implementation strategies, monitoring, and
responsibilities spelled out. It too could provide an excellent model for Iowa City.
• Existing urban biodiversity programs: According to ICLEI's Local Action for Biodiversity (LAB)
program,28 the first step is to prepare a biodiversity assessment report, which mainly involves
preparing an inventory and conducting a Strengths, Weaknesses, Opportunities and Threats (SWOT)
analysis. The second step is to prepare a local Biodiversity Strategy and Action Plan which contains
one or two separate documents which define specific ecosystem -based solutions and interventions. The
biodiversity report (2013) for the City of Helsingborg, Sweden, has been recognized for its
excellence by the ICLEI - LAB.29
• Urban bees: Paris was among the first cities to focus on urban bees, with an apiculture school that
opened in the 1880s. And now 300+ beehives, some in parks, some managed as part of (organic)
community gardens, can be found in the city. The Paris bee population is thriving, especially when
compared to rural bees. The some is true in London now. Some U.S. and Canadian cities are making
the same observation and are seeking to develop urban bees. There is a research center on urban
bees at Virginia Tech, and there are local organizations in places such as New York City, Portland,
Vancouver, Seattle, and elsewhere. The fact that bee colonies are collapsing in rural areas but doing
well in urban areas highlights the possibilities for cities to add/restore/contribute to ecological
balance.
Conclusion
Iowa City has taken important actions over the past 20 years, but much more can and should be done.
Rather than being an agent of biodiversity decline (or, put more strongly, an agent of mass extinction),
we Iowa Citians can play an important role in fostering and protecting the world's biodiversity.
When we look many decades into the future, we foresee an Iowa City that constitutes a place in which not
just humans but an increasingly wide range of native and beneficial species can thrive. But this future can
exist only if we take action now to increase our collective capacity to make it happen.
Biodiversity for a Healthy Future
Appendix
Biodiversity, Climate Change, and Resources for Humans
We see great value in protecting and restoring the glory that was the native prairie/savanna/woodland
ecosystems of our state. At the very least, we think it is important to keep the regional native genes
around because our planet might need them in coming decades and centuries. However, we also
recognize that the approaching changes in climate are likely to entail significant changes in local
biodiversity. These changes in local climate appear likely to involve warmer temperatures and sometimes
wetter, but possibly sometimes drier, conditions. Prairie plants are likely to do better under these
emerging conditions.
We also believe it is necessary to be producing healthy food from sources that are regional and viable.
In other words, food for humans must be a vital part of a biodiverse ecosystem. With proper design,
native plants can be integrated with or adjacent to edibles while supporting biodiversity.30 Likewise, we
believe it is necessary to be obtaining useful energy from viable regional sources (such as wind and
solar). Moreover, we also recognize that gardens geared toward human use (but which contain species
with long flowering seasons) are excellent for bees and other pollinators. Furthermore, we know it is
possible to support rich soils, increase rainwater infiltration (and hence reduce the severity of floods), and
save money and energy on mowing by replacing some or most conventional lawns with ecolawns and/or
with species of grass that have deeper roots and naturally stop growing before reaching 10 inches or so
in height.
All these comments imply a fairly broad definition of biodiversity, which would include species that
provide for humanity, native and otherwise. We imagine interconnected urban and rural islands that keep
the prairie genes and plants readily available so they can expand and cover more land as climate
allows, possibly during major future shifts in human populations and land use. However, by embracing this
larger definition we also emphasize that any species running out of control (e.g., Kudzu in the southern
part of the country) is also a threat to biodiversity. This reinforces the need for a biodiversity plan.
Biodiversity for a Healthy Future
References
1. Consider the photographs by David Uittschwager, which provide a "snapshot" of the number of species that are contained in or
pass through one cubic foot over a 24-hour period. The photos collected in a Costa Rican rainforest displayed over 150 different
plants and animals (birds, beetles, flies, moths, and bugs). Compare this to the eight species identified in a 24-hour period, by the
same one cubic foot transect, in an Iowa cornfield. See:
http://www.npr.org/blogs/krulwich/2012/1 1 /29/166156242/cornstalks-everywhere-but-nothing-else-not-even-a-bee.
2. Mora C, Tittensor DP, Adl S, Simpson AGB, Worm B (201 1) How Many Species Are There on Earth and in the Ocean? PLoS Biol
9(8): el001 127. cold 0.1371 /journal.pbio.1001 127. Available at:
http://www.plosbiology.org/article/info°/u3Adoi°/n2F10.1371 %2Fjournal.pbio.1001 127
3. http://Iink.springer.com/chapter/l 0.1007%2F978-0-585-27576-5_2
4. http://www.bbc.com/earth/story/20141111-plants-have-a-hidden-internet
5. Costanza, Robert, et. al. 2014. Changes in the global value of ecosystem services. Global Environmental Change 26: 152-158.
Available at: http://community-wealth.org/sites/clone.community-wealth.org/files/downloads/article-costanza-et-al.pdf
6. http://aquadoc.typepod.com/waterwired/2014/05/robert-costanza-redux-lets-value-global-ecosystem-services.html
7. Wilson, Edward O. 2014. The Meaning of Human Existence. New York: W.W. Norton . See also Elizabeth Kolbert. 2014. The Sixth
Extinction: An Unnatural History. New York: Henry Holt.
B. http://news.stonford.edu/news/2014/july/sixth-mass-extinction-072414.htmi
9. http://www.chgeharvard.org/topic/threats-biodiversity-and-ecosystems
10. See Appendix. We are hopeful that work currently being done by Iowa City's Sustainability Coordinator will provide useful
information pertaining to local effects of climate change on biodiversity.
11. http://armi.usgs.gov/story/story.php?contentid=1630
12. http://www.timesrepublican.com/page/contem.detaii/id/543630/IOWA--A-landscape-highly-modified-over-
time.html??nav=51 27
13. https://www.legis.iowa.gov/docs/ACO/chapter/571.77.pdf
14. http://www.fws.gov/pollinators/programs/endongered.htmi
15. http://www.ewg.org/losingground/report/executive-summary.htmi
16. http://pubs.usgs.gov/circ/circl 210/major_findings.htm
17. http://www.iowadnr.gov/Environment/WaterQuality/WaterMonitoring/ImpairedWaters.aspx
18. http://www.actionbioscience.org/biodiversity/simberloff.hhni
19. http://www.johnson-county.com/dept_sec_roods.aspx?id=1485
20. Nations, Brenda, et. al. 2014. Iowa City Sustainability Assessment 2013. Available on line at: http://www.icgoy.org/?id=2275.
21. For an explanation of process, outcomes etc, see: http://naturemappingfoundation.org/natmap/bioblitz/
22. Le Plan Biodiversite. Available at: http://www.paris.fr/pratique/paris-au-vert/nature-et-
biodiversite/planbiodiversite/rub_9233_stand_7 09572_port_22522
23. See maps on pp. 19, 23, 26 of Paris' plan and photographs on p. 32 (mosses on old walls contribute to biodiversity, as well as
grasses between cobble stones), and on p. 51 and 67 (structures placed in public parks to support insect populations).
24. http://www.lbp.org.uk//Iondonbabspp.htmi
25. http://www.nycgovparks.org/greening/nature-preserves
26. See their early publications at: http://www.nycgovparks.org/greening/natural-resources-group/publication. The 2003 report
discusses, for instance, forest restoration in the Bronx. Pick any park at the bottom of the page, and you will see tree inventories,
habitats of concern, etc.
27. http://www.edmonton.ca/environmental/natural areas/strategy-biodiversity-protection.aspx
28. ICLEI's Cities Biodiversity Center: http://www.cbciclei.org/
29. http://www.kfsk.se/download/l8.524fbdf7142967641 b7ad53/1386947792432/Bilaga+2013-11-
28+LAB rapport+Helsing borg. pdf
30. Backyard Abundance Edible Agroforestry Template Designs:
http://www.backya rda bunda nce.org/Porta Is/0/p/Ed ibleAg roforestryTemplates.pdf
Biodiversity for a Healthy Future 10
Marian Karr
From: Lynn <Imgsnyder@aol.com>
Sent: Tuesday, March 03, 2015 3:45 PM
To: Council; Tom Markus; Geoff Fruin
Subject: Fwd: Kinseth Hospitality
Attachments: kinseth_lawsuit.pdf; kinseth_suit_respons.pdf
Good morning!
4f(6)
Back in January I sent an email to the Iowa City Council concerning the discussions with Kinseth Hospitality about a new
motel and TIF funding.
After that I was made aware of an email from Jeff Davidson concerning contact with Kinseth Hospitality and their claim
there was no lease executed.
We have since filed a lawsuit against Kinseth for not honoring their lease agreement with us. And they have now
answered.
I have attached those documents for your information.
I earlier sent this information to Jeff Davidson. His reaction was to send it on to the city attorney.
I believe I would like all of you to know just what is going on with this company as you consider this deal which I
understand could be coming in front of the council soon.
If you have any questions, please feel free to contact my attorneys, Mike Pugh or Adam Tarr at 319-351-2028.
Thank you for you considerations.
Lynn Snyder
Gregory Properties
Heritage Development, Inc.
DVG Investments, LLC
2466 10th St
Coralville, IA 52241
(319) 351-2505
-----Original Message -----
From: Lynn <Imgsnyder@aol.com>
To: jeff-davidson <jeff-davidson@iowa-city.org>
Sent: Tue, Mar 3, 2015 1:00 pm
Subject: Kinseth Hospitality
Good Morning Mr Davidson,
As you are aware, in January when the story came out about Kinseth Hospitality wanting to build a motel in Iowa City
using TIF funding, I sent a note to the city council.
I did not receive any response but was made aware you sent a note to city staff concerning contact with Kinseth.
I have attached the lawsuit that has been filed and their answer.
I do hope you will take into consideration their actions concerning our property before you agree to give them money from
Iowa City.
If you have questions, you may contact our attorneys Mike Pugh or Adam Tarr at 319-351-2028 concerning this issue.
Thank you.
-lynn
Lynn Snyder
Gregory Properties
Heritage Development, Inc
DVG Investments, LLC
2466 10th St
Coralville, IA 52241
(319)351-2505
Marian Karr
From: Lynn <Imgsnyder@aol.com>
Sent: Tuesday, March 03, 2015 3:45 PM
To: Council; Tom Markus; Geoff Fruin
Subject: Fwd: Kinseth Hospitality
Attachments: kinseth_lawsuit.pdf; kinseth_suit_respons.pdf
Good morning!
Back in January I sent an email to the Iowa City Council concerning the discussions with Kinseth Hospitality about a new
motel and TIF funding.
After that I was made aware of an email from Jeff Davidson concerning contact with Kinseth Hospitality and their claim
there was no lease executed.
We have since filed a lawsuit against Kinseth for not honoring their lease agreement with us. And they have now
answered.
I have attached those documents for your information.
I earlier sent this information to Jeff Davidson. His reaction was to send it on to the city attorney.
I believe I would like all of you to know just what is going on with this company as you consider this deal which I
understand could be coming in front of the council soon.
If you have any questions, please feel free to contact my attorneys, Mike Pugh or Adam Tarr at 319-351-2028.
Thank you for you considerations.
Lynn Snyder
Gregory Properties
Heritage Development, Inc.
DVG Investments, LLC
2466 10th St
Coralville, IA 52241
(319) 351-2505
-----Original Message -----
From: Lynn <Imgsnyder@aol.com>
To: jell-davidson <jeff-davidson@iowa-city.org>
Sent: Tue, Mar 3, 2015 1:00 pm
Subject: Kinseth Hospitality
Good Morning Mr Davidson,
As you are aware, in January when the story came out about Kinseth Hospitality wanting to build a motel in Iowa City
using TIF funding, I sent a note to the city council.
I did not receive any response but was made aware you sent a note to city staff concerning contact with Kinseth.
I have attached the lawsuit that has been filed and their answer.
I do hope you will take into consideration their actions concerning our property before you agree to give them money from
Iowa City.
If you have questions, you may contact our attorneys Mike Pugh or Adam Tarr at 319-351-2028 concerning this issue.
Thank you.
-lynn
Lynn Snyder
Gregory Properties
Heritage Development, Inc
DVG Investments, LLC
2466 10th St
Coralville, IA 52241
(319) 351-2505
E -FILED 2015 FEB 05 8:08 AM JOHNSON - CLERK OF DISTRICT COURT
IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY
DVG Investments, LLC,
Plaintiff,
VS.
25th Avenue Hotel Associates, LLC,
and
Kinseth Hospitality Company, Inc.,
Defendants.
Case No. LACV
PETITION AT LAW
Plaintiff DVG Investments, LLC ("Plaintiff' or "DVG"), for its Petition
against Defendants 25th Avenue Hotel Associates, LLC ("251 Ave") and Kinseth
Hospitality Company, Inc. ("Kinseth") (Kinseth and 251 Ave are hereafter collectively
"Defendants", Plaintiff and Defendants collectively the "Parties"), states:
The Parties
Plaintiff is an Iowa limited liability company with a principal place
of business in Johnson County, Iowa.
2. Defendant Kinseth is an Iowa corporation and Defendant 25th Ave
is an Iowa limited liability company. Kinseth and 251 Ave share the same principal
place of business in North Liberty, Johnson County, Iowa.
Venue
Venue is proper before this Court because the contract at issue, the
Lease Agreement, was to be performed in Johnson County, Iowa, and the Defendants
have principal places of business in this county. Iowa Code §§ 616.7; 616.17.
{00029770}
E -FILED 2015 FEB 05 8:08 AM JOHNSON - CLERK OF DISTRICT COURT
Factual Background
4. Plaintiff realleges paragraphs 1-3 as if fully set forth in this
paragraph 4.
5. Effective October 4, 2007, Heritage Development, Inc.
("Heritage"), Donald Gregory and Vergene Gregory, as Lessors ("Lessors"), and Kinseth,
as Lessee, executed that certain Lease Agreement between the Parties. The Lease
Agreement was modified by the First Amendment to Lease Agreement entered into on
November 30, 2007, by the Reinstatement and Second Amendment to Lease Agreement
entered into on August 15, 2008, and by the Third Amendment to Lease Agreement
entered into on October 24, 2008, (collectively the "Lease", together with the duly -
recorded 12/16/08 Memorandum of Lease attached hereto as Exhibit A).
6. Pursuant to the Lease, Lessors leased to Kinseth that certain real
estate located at the intersection of 25" Avenue and 20th Street in Coralville, Iowa locally
known as 1001 25`h Avenue, Coralville, Iowa and legally described as set forth in
Attachment A (the "Leased Premises"). See Exhibit A, page 8, Section 1.
Lessors' interest in the Leased Premises has been transferred to
DVG, subject to the Lease. See 12/31/08 Quit Claim Deed, Exhibit B hereto.
8. Kinseth has assigned its rights under the Lease to 25`h Ave, but has
not been released from its obligations thereunder.
COUNT I: BREACH OF CONTRACT (WRITTEN)
9. Plaintiff realleges paragraphs 1-8 as if fully restated in this
paragraph 9.
10. Plaintiff has performed all its obligations pursuant to the Lease.
{00029770}
E -FILED 2015 FEB 05 8:08 AM JOHNSON - CLERK OF DISTRICT COURT
11. Defendants have materially breached the Lease by failing to pay
Plaintiff monthly rent, as required by Section 3(B) of the Lease, since approximately
September, 2011, despite demand by Plaintiff, and without excuse. (See Exhibit A, page
9.)
12. Defendants have materially breached the Lease by failing to
provide Plaintiff with a Letter of Credit in the amount of $150,000, naming DVG
beneficiary, pursuant to Section 5 and Exhibit C to the Lease, despite demand by
Plaintiff, and without excuse. (See Exhibit A, pages 9 and 39.)
13. Defendants have materially breached the Lease by failing to pay
property taxes for the Leased Premises as required by Section 11 of the Lease, despite
demand by Plaintiff, and without excuse. (See Exhibit A, page 15.)
14. Defendants have materially breached the Lease by failing to pay
for snow removal and lawn care for the Leased Premises as required by Sections 11 and
14 of the Lease, despite demand by Plaintiff, and without excuse. (See Exhibit A, pages
15 and 17.)
15. Pursuant to Section 44 of the Lease, the prevailing party in a suit to
enforce the Lease is entitled to an award of its reasonable attorney's fees. See Exhibit A,
page 31.
16. Plaintiff has been injured by Defendants' material breaches of the
Lease, in an amount to be proven at trial.
WHEREFORE, Plaintiff DVG Investments, LLC respectfully requests
that this Court enter judgment in its favor and against Defendants 25th Avenue Hotel
Associates, LLC and Kinseth Hospitality Company, Inc., jointly and severally, finding
Defendants in breach of the Lease Agreement, awarding compensatory and consequential
{000297701
E -FILED 2015 FEB 05 8:08 AM JOHNSON - CLERK OF DISTRICT COURT
damages to Plaintiff in an amount to be proven at trial; plus its reasonable attorney's fees
incurred in this action in accordance with the Lease; plus interest at the rate of 15% per
annum in accordance with the Lease, tax costs to Defendants, plus such further relief that
this Court deems appropriate.
Respectfully submitted,
/s/Adam S. Tarr
ADAM S. TARR (AT#0009725)
atarr@pughhagan.com
of
PUGH HAGAN PRAHM PLC
1100 Sixth St., Suite 102
Coralville, IA 52241
Phone: 319.351.2028
Fax: 319.351.1102
ATTORNEYS FOR PLAINTIFF DVG
INVESTMENTS, LLC.
100029770}
E -FILED 2015 FEB 05 11:42 AM JOHNSON - CLERK OF DISTRICT COURT
Page 6 of 7
Attachment A
Auditor's Parcet 2008089 on Plat of Survey filed September 2, 2008 in Book 53, Page 195 of the
Johnson County Recorder's Office as more particularly described as follows:
Lot 6, Block I of Heritage Estates, Part I (Final Plat recorded in Plat Book 17, Page 47 at the
Johnson County Recorder's Office), Lot G, Lot F and a part of Lot E of a Subdivision of Lots 4
and 5, Block 1, Heritage Estates Part i (Final Plat recorded in Plat Book 21, Page 39 at the
Johnson County Recorder's Office), a part of Auditor's Parcel 96046 (Plat of Survey recorded in
Plat Book 37, Page 21 at the Johnson County Recorder's Office) and a part of the Southeast
Quarter of the Southeast Quarter of Section 36, Township 80 North, Range 7 West of the 5th
P.M, all in Coralville, Johnson County, Iowa and more particularly described as Follows:
Beginning at the Southwest comer of said Lot G;
thence North 90°00'00" East 108.70 feet along the South line of said Lot G (assumed bearing for
this description only) and along the South line of said Lot F, said line also being the Northerly
right-of-way line of Tenth Street, to a point of curvature;
1.
thence Northeasterly 46.47 feet along the Southerly line of said Lot F and Lot E, also being the
Northerly right-of-way line of said Tenth Street and along the are of a 267.00 foot radius curve
concave Northerly (chord bearing North 85°00'54" East 46.41 feet);
thence North 8°12'55" West 182.05 feet to a point of intersection with the Northerly line of said
Lot E;
thence North 65°47'20" East 189.41 feet along the Northerly line of Lots E, D and C of said
Subdivision of Lots 4 and 5, Block 1, Heritage Estates Part 1, to the Northeast corner of said Lot
C;
thence North 9°30'08" West 91.62 feet along a line of Oultat C of Coral Ridge Mall (Final Plat
recorded in Plat Book 38, Page 211 at the Johnson County Recorder's Office);
thence South 79°56'21" West 31.13 feet along a line of said Outlot C;
thence South 46057'29" West 98.68 feet along a line of said Oudot C;
thence South 79°48'30" West 33.07 feet along a line of said Outlot C;
thence South 48009'54" West 66.90 feet along a line of said Oudot C;
thence South 70°31'07" West 85.41 feet along a line of said Outlot C;
thence South 80012136" West 161.06 feet along a line of said Outlot C;
thence North 7750'17" West 57.75 feet along a line of said Outlot C;
thence South 89°05'24" West 24.16 feet along a line of said Outlot C;
[00W411.Doq-5-
Book: 4372 Page: 812 Seq:6
E -FILED 2015 FEB 05 11:42 AM JOHNSON - CLERK OF DISTRICT COURT
Page 7 of 7
thence South 0°5100" East 171.60 feet along a line of said Outlot C and along the Easterly right-
of-way line of 25th Avenue, said right-of-way line also being the Westerly line of said Lot 6, to a
point of curvature;
thence Southeasterly 23.32 feet along said right-of-way line and a Southwesterly line of said Lot
6 and along an 15,00 foot radius arc (chord bearing South 45127'180" East 21.04 feet);
thence North 90"00'00" East 200.28 feet along the Northerly right-of-way line of said Tenth
Street and along the Southerly line of said Lot 6 to the point of hegbming and containing 1.94
acres more or less.
100623421.DOC}-6-
Book: 4372 Page: 812 Seq:7
iPage 1 of i
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURTa-13
IN�IIN�IINI I�N�ININVI�NI�IIVIIINIIYIIINIII�VI�IMI
Doo ID: 021337e50007 Tvoe: GEN
Recorded: 12/16/2008 at 02:53;20 PM
Fee Amt: 337.00 Pace 1 of 7
Johnson Countv Iowa
Klm Painter Countv Recorder
OK4372 Pr812.818
MEMORANDUM OF LEASE AGREEMENT
Recorder's Cover Sheet
Preparer Information: (name, address and phone number)
B.J. Miller, Davis Brown Law Firm, 4201 Westown Parkway, Suite 300, West Des Moines, IA
50266, (515) 288-2500
Taxpayer Information: (name and complete address)
25th Avenue Hotel Associates, LLC, 2 Quail Creek Circle, North Liberty, IA 52317
Return Document To: (name and complete address)
B.J. Miller, Davis Brown Law Firm, 4201 Westown Parkway, Suite 300, West Des Moines, IA
50266
Lessor/Grantor:
Donald Gregory, Vergene Gregory, Heritage Development, Inc., 629 Pine Ridge Drive,
CoralviIle, Iowa 52241
Lessee/Grantee:
25th Avenue Hotel Associates, LLC, 2 Quail Creek Circle, North Liberty, IA 52317
Legal Description:
See Exhibit A.
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Exhibit A - Page 1
Page 2 of'7
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
MEMORANDUM OF LEASE AGREEMENT
THIS Memorandum of Lease Agreement is made and entered into as the A day of
November, 2008, by and between Donald Gregory, Vergene Gregory, and Heritage
Development, Inc. ("Lessor"), and 25th Avenue Hotel Associates, LLC, an Iowa limited
liability company ("Lessee").
WHEREAS, Lessor and Lessee have entered into a Lease Agreement, effective October
4, 2007, as modified by First Amendment to Lease Agreement entered into on November 30,
2007, Reinstatement and Second Amendment to Lease Agreement entered into on August 15,
2008, and Third Amendment to Lease Agreement entered into on October 24, 2008 (the
"Lease"), all with respect to real estate located in Johnson County, Iowa, legally described as
follows (the "Leased Premises"):
See Attached Exhibit A.
WHEREAS, the parties desire to record a Memorandum of the Lease;
NOW, THEREFORE, the parties state the essential temps of said Lease are as follows:
1. The term of the Lease is governed by two specific terms: the Construction Term;
and the Regular Term. The Construction Term of the Lease begins on January 1, 2009 and
continues until the Commencement Date. The Regular Term of the Lease begins on the
Commencement Date and continues for a period of twenty (20) years. The Commencement Date
shall be the date of Substantial Completion of the Lessee's Improvements to the Leased
Premises, scheduled to be April 1, 2010 (the "Scheduled Commencement Date"). Substantial
Completion means the earlier of (i) the Scheduled Commencement Date; or (ii) Lessee's receipt
of a certificate of occupancy for the Leased Premises; or (iii) Lessee's occupancy of the Leased
Premises for hotel operations.
2. Until the expiration or termination of the Lease, or any renewals of the Lease, the
Lessee Improvements and all fixtures appurtenant thereto constructed by Lessee on the Leased
Premises, and all alterations, improvements, changes, or additions made in or to the Leased
Premises shall be the property of Lessee.
3. Except in the case of Lessors' Permitted Transfer, if Lessors, or any successor
owner, elects, in good faith, to sell the Leased Premises, Lessee shall have the First Right of
Refusal for a period of ten (10) business days following the receipt of written notice from
Lessors to accept or reject the offer, and to purchase the Leased Premises upon such terms and
conditions outlined in the Lease.
4. Lessee has the option to purchase the Leased Premises at any time after the
seventh (7a`) anniversary of the Lease for a sum specified in the Lease. Written notice of
Lessee's intent to exercise the option must be given to Lessors at least ninety (90) days prior to
October 4, 2014. Notice must be given to Lessors by certified mail. Lessee's evidence of
mailing shall constitute conclusive proof of Lessee's exercise of the option to purchase. The
closing of the purchase of the Leased Premises shall be completed within thirty (30) days after
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Exhibit A - Page 2
Page 3 of 7
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the seventh (761) anniversary of the Lease. Notwithstanding anything to the contrary herein,
Lessee shall not have an Option to Purchase in the event they are in default under the terms of
the Lease.
Lessee also has the option to purchase the Leased Premises at any time after the tenth
(le) anniversary of this Lease for a sum specified in the Lease. Written notice of Lessee's
intent to exercise the option must be given to Lessors at least ninety (90) days prior to October 4,
2017. Notice must be given to Lessors by certified mail. Lessee's evidence of mailing shall
constitute conclusive proof of Lessee's exercise of the option to purchase. The closing of the
purchase of the Leased Premises shall be completed within thirty (30) days after the tenth (1uh)
anniversary of the Lease. Notwithstanding anything to the contrary herein, Lessee shall not have
an Option to Purchase in the event they are in default under the terms of the Lease.
5. Subject to the terms of the Lease, Lessee has the option to extend the Lease for up
to two (2) consecutive ten (10) year Renewal Terms.
6. Capitalized terms that are used but not defined in this Memorandum shall have
the meanings ascribed thereto in the Lease.
The other terms and provisions of the Lease are incorporated herein by this
reference.
8. This Memorandum may be executed in counterparts, in which case all such
counterparts taken together shall constitute one and the same instrument which is binding upon
the parties hereto, notwithstanding that all of the parties are not signatories to the original or the
same counterpart.
IN WITNESS WHEREOF, the parties have duly executed this Memorandum as of the
day and year first above written.
[SIGNATURE PAGE TO FOLLOW]
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Exhibit A - Page 3
Page 4 of 7
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LESSORS:
/��-�
Donald Gregory
Vergen tregory t%
HERITAGE DEVELOPMENT, IAC.
By
Its
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
LESSEE:
25th Avenue Hotel Associates, LLC
A. Kinseth, Manager
This instrument was acknowledged before me on this _ day of November, 2008 by Bruce A. Kinseth,
Manager of 25th Avenue Hotel Associates, LLC.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
STATE OF IOWA
SS.
COUNTY OF JOHNSON
Notary Public -State of Iowa
.{ Ibinstrument was acknowledged before me on this ak day of G , 2008 by etn "t
,% ny — as .Sf� _ of Heritage Development, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
p MROME KELLER
F ConmYYen Wn Wr 7437x6
"�('� -
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
Notary Pub tc- tate ot Iowa
This instrument was acknowledged before me on thisi,�_ day of November, 2008 by Donald
Gregory and Vergene Gregory, husband and wife.
IN WITNESS WHEREOF, I hereunto set my]t offiiciia'l'sseea
MICOMIL` pp Mrn r« 1705Hjg Notary Public -State o Iowa
c
[0062342 ].000 I -4 -
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Exhibit A - Page 4
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Page 5 of 7
LESSORS: LESSEE:
25th Avenue Hotel Associates, LLC
Donald Gregory Bruce A. Kinseth, Manager
Vergene Gregory
HERITAGE DEVELOPMENT, INC.
By
Its
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
1C.,(ih ev*�e✓
This instrument was acknowledged before me on this day of 2008 by Bruce A. Kinseth,
Manager of 25th Avenue Hotel Associates, LLC.
IN WITNESS WHEREOF, 1 hereunto set my hand and official seal.
Notary Public -State o Iowa Notarial IeoDERowa
Commission # 73027
STATE OF IOWA ) My Commission Expires
) SS. �!
COUNTY OFIOHNSON )
This instrument was acknowledged before me on this day of November, 2008 by
as of Heritage Development, inc,
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State of Iowa
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of November, 2008 by Donald
Gregory and Vergene Gregory, husband and wife.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State of Iowa
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Exhibit A - Page 5
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EXHIBIT A
Auditor's Parcel 2008089 on Plat of Survey filed September 2, 2008 in Book 53, Page 195 of the
Johnson County Recorder's Office as more particularly described as follows:
Lot 6, Block 1 of Heritage Estates, Part 1 (Final Plat recorded in Plat Book 17, Page 47 at the
Johnson County Recorder's Office), Lot G, Lot F and a part of Lot E of a Subdivision of Lots 4
and 5, Block 1, Heritage Estates Part 1 (Final Plat recorded in Plat Book 21, Page 39 at the
Johnson County Recorder's Office), a part of Auditor's Parcel 96046 (Plat of Survey recorded in
Plat Book 37, Page 21 at the Johnson County Recorder's Office) and a part of the Southeast
Quarter of the Southeast Quarter of Section 36, Township 80 North, Range 7 West of the 5th
P.M, all in Coralville, Johnson County, Iowa and more particularly described as follows:
Beginning at the Southwest comer of said Lot G;
thence North 90000'00" East 108.70 feet along the South line of said Lot G (assumed bearing for
this description only) and along the South line of said Lot F, said line also being the Northerly
right-of-way line of Tenth Street, to a point of curvature;
thence Northeasterly 46.47 feet along the Southerly line of said Lot F and Lot E, also being the
Northerly right-of-way line of said Tenth Street and along the arc of a 267.00 foot radius curve
concave Northerly (chord bearing North 85°00'54" East 46.41 feet);
thence North 8°1255" West 182.05 feet to a point of intersection with the Northerly line of said
Lot E;
thence North 65°47'20" East 189.4I feet along the Northerly line of Lots E, D and C of said
Subdivision of Lots 4 and 5, Block 1, Heritage Estates Part 1, to the Northeast comer of said Lot
C;
thence North 9°30'08" West 91.62 feet along a line of Outlot C of Coral Ridge Mall (Final Plat
recorded in Plat Book 38, Page 211 at the Johnson County Recorder's Office);
thence South 79°56'21" West 31.13 feet along a line of said Outlot C;
thence South 4605729" West 98.68 feet along a line of said Outlet C;
thence South 79°48'30" West 33.07 feet along a line of said Outlet C;
thence South 48°09'54" West 66.90 feet along a line of said Outlot C;
thence South 70031'07" West 85.41 feet along a line of said Outlot C;
thence South 80012'36" West 161.06 feet along a line of said Outlot C;
thence North 75°50'17" West 57.75 feet along a line of said Outlot C;
thence South 89°05'24" West 24.16 feet along a line of said Outlot C;
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Exhibit A - Page 6
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Page 7 of 7
thence South 0°51'00" East 171.60 feet along a line of said Outlet C and along the Easterly right-
of-way line of 25th Avenue, said right-of-way line also being the Westerly line of said Lot 6, to a
point of curvature;
thence Southeasterly 23.32 feet along said right-of-way line and a Southwesterly line of said Lot
6 and along an 15.00 foot radius arc (chord bearing South 45027'180" East 21.04 feet);
thence North 90°00'00" East 200.28 feet along the Northerly right-of-way line of said Tenth
Street and along the Southerly line of said Lot 6 to the point of beginning and containing 1.94
acres more or less.
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Exhibit A - Page 7
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LEASE AGREEMENT ��i
THIS LEASE AGREEMENT (Lease) is entered into this _ day September,
2007, between KINSETH HOSPITALITY COMPANY, INC. or its approved assign, 2
Quail Creek Circle, North Liberty, Iowa 52317 (Lessee) and DONALD GREGORY AND
VERGENE GREGORY, owners of Lot 6 (Parcel #0636477001) and Lot G (Parcel
#0636478006), 1001 25th Avenue #5, Coralville, Iowa 52241and HERITAGE
DEVELOPMENT, INC., owner of Lot (Parcel #0626478005 and Parcel
#0626476005), 1001 25th Avenue #5, Coralville, Iowa 52241 (collectively Lessors).
1j: 11NU .4.3Y:A
Leased Premises
Lessors lease to Lessee, and Lessee rents from Lessors, on the terms and
conditions set forth in this Lease, the Leased Premises described on attached Exhibit "A",
and located at the intersection of 25th Avenue and 10th Street in Coralville, Iowa.
2. Term
This Lease shall be governed by two specific terms. The initial term of this
Lease shall be designated the "Construction "Term" and shall begin sixty (60) days after the
Contingency Date as defined in paragraph 6 and shall continue until the Commencement
Date, as defined below.
"Commencement Date" shall be the date of Substantial Completion of the
Lessee's Improvements to the Leased Premises (see Exhibit `B") scheduled to be January 1,
2009 (the "Scheduled Commencement Date"). "Substantial Completion" shall mean the
earlier of (i) the Scheduled Commencement Date; or (ii) Lessee's receipt of a certificate of
occupancy for the Leased Premises; or (iii) Lessee's occupancy of the Leased Premises for
hotel operations. Lessee has the option to extend the Scheduled Commencement Date to July
1, 2009, by providing written notice to Lessors on or before November 30, 2008. Lessee
shall also have the option to extend the Scheduled Commencement Date to January 1, 2010,
by providing written notice to Lessors on or before May 31, 2009.
On the Commencement Date, the "Regular Term" of this Lease shall begin and
shall continue for a period of twenty (20) years. Provided Lessee is not in default, Lessee has
the option to extend this Lease for up to two (2) consecutive ten (10) year Renewal Terms as
set forth in paragraph 46 herein.
3. Rental
A. Rental for the Construction Term shall be Three Thousand Five
Hundred Dollars ($3,500.00) per month, payable on the first day of every month throughout
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Exhibit A - Page 8
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the Construction Term. Lessee shall pay prorated Rental for the first and last month of the
Constrdction Term in the event the first day of the Construction Term does not fall on the 1"
day of a month.
B. Upon the Commencement Date, Lessee shall pay prorated Rental for the
first partial month based on the regular monthly Rental of Nine Thousand Five Hundred
Eighty-three and 33/100 Dollars ($9,583.33). Beginning on the first day of the first month
following the Commencement Date, Lessee shall pay Lessors Nine Thousand Five Hundred
Eighty-three and 33/100 Dollars ($9,583.33) per month (the "Rental"), on the first day of
every month throughout the first ten (10) years of the Regular Term.
C. During the second ten (10) years of the Regular Term, the Rental paid
by Lessee shall be the Rental as specified in paragraph 313 above, plus an amount equal to the
Rental multiplied by the percentage increase, if any, in the United States Bureau of Labor
Statistics revised Consumer Price Index (1982 - 84 = 100), All Items and Major Group
Figures for All Urban Consumers, US Average, for the month of July 2018 over the month of
July 2008.
4. Earnest Money
Within five (5) business days after the date of the final execution of this Lease
and delivery hereof by all parties, Lessee shall deposit, as earnest money, with Lessors'
attorney, a cash earnest money deposit in the amount of Fifteen Thousand Dollars
($15,000.00) (the "Earnest Money"), of which Two Thousand Five Hundred Dollars
($2,500.00) shall be non-refundable. The Earnest Money shall be held in trust by Lessors'
attorney as an advance on the Security Deposit as set forth in paragraph 5 below.
Security Deposit
A. Amount of Security Deposit. On the Contingency Date, unless this
Lease is terminated as provided herein, Lessee shall deposit with Lessors the amount of One
Hundred Seventy Five Thousand Dollars ($175,000.00) (the "Security Deposit"), to be held
by Lessor, without liability for interest, as security for Lessee's performance of its obligations
under this Lease. The Security Deposit shall consist of (i) a cash security deposit in the
amount of Twenty Five Thousand Dollars ($25,000.00), and (ii) a Letter of Credit in the
amount of One Hundred Fifty Thousand Dollars ($150,000.00) for a total of One Hundred
Seventy Five Thousand ($175,000.00). Such Letter of Credit shall be issued by a financial
institution in a form and substance acceptable to Lessors (with the form attached hereto as
Exhibit "C" being acceptable). The Letter of Credit shall have an original term of not less
than two years with provisions for extensions unless sixty (60) days prior written notice is
given to Lessors by the issuing bank. Lessee's have the affirmative duty to keep in full force
and effect the Letter of Credit and Security Deposit until the Commencement Date. The
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Letter of Credit shall provide for partial draws in the event of a "Draw Event" (as defined
below). Except as provided below, Lessee shall keep the Letter of Credit, at its expense, in
full force and effect throughout the Construction Term. Upon the happening of any Draw
Event, Lessors or their assignee, at their option, may present its written demand for payment
of the entire face amount of the Letter of Credit and the funds so obtained shall become due
and payable to Lessors or its assignee to be applied pursuant to the provisions of this Lease.
A "Draw Event" shall mean any of the following: (i) Lessee becomes or is the subject of any
bankruptcy, insolvency or similar proceeding or event, (ii) an event of default permitting
termination of this Lease occurs (as defined in paragraph 20); or (iii) the Letter of Credit is
not extended within thirty (30) days prior to its expiration (which non -renewal itself shall
constitute an event of default under this Lease immediately without further notice). On the
Commencement Date, the Letter of Credit shall be eliminated from the Security Deposit
provided that the following conditions are satisfied: (i) there is not, at that time, an event of
default permitting termination of this Lease (pursuant to paragraph 20); (ii) there has not
been an event of default with respect to any of Lessee's monetary obligations under this
Lease at any time during the Construction Term; and (iii) Lessee has constructed the
extended stay hotel pursuant to the requirements of Exhibit `B". If the Letter of Credit is
eliminated pursuant to this paragraph, Lessee's cash Security Deposit shall be returned to
Lessee.
B. Use of Security Deposit. Lessors shall not be required to keep the
Security Deposit separate from its other accounts. Lessors may apply all or a part of the
Security Deposit to any unpaid Rental or other monetary payments due from Lessee or to
cure any other default of Lessee hereunder and to compensate Lessors for all damage and
expense sustained as a result of such default. If all or any portion of the Security Deposit is so
applied, Lessee shall deposit cash sufficient to restore the Security Deposit to its original
amount within fifteen (15) days after receipt of Lessors' written demand. If Lessee fully and
faithfully performs each of its obligations under this Lease, the Security Deposit or any
balance thereof shall be returned to Lessee on the Commencement Date provided the
provisions of Paragraph 5A above are satisfied.
6. Lessee's Contingencies
Lessee's obligation to lease the Leased Premises is contingent upon the
existence or non-existence (as applicable) of the following facts or events. If the following
facts or events exist and cannot be removed, satisfied, or resolved, within one hundred twenty
(120) days after the execution of this Lease (the "Contingency Date"), Lessee or Lessors can
cancel this Lease and have no further obligation to Lessors, and Twelve Thousand Five
Hundred Dollars ($12,500.00) of the Earnest Money shall promptly be returned to Lessee.
The remaining Two Thousand Five Hundred Dollars ($2,500.00) shall be retained by
Lessors. Upon providing written notice to Lessors, Lessee can extend the Contingency Date
for an additional sixty (60) day period; provided Lessee pays Lessors an additional
{00982910.DOC)
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Exhibit A - Page 10
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nonrefundable payment of Ten Thousand and no/100th Dollars ($10,000.00) (the "Extension
Deposit"). The Extension Deposit shall be nonrefundable and shall not be credited toward
the Rental. At any time, prior to the Contingency Date, or any extension of the Contingency
Date, Lessee can cancel this Lease, if Lessee is not able to reasonably resolve the following
contingencies:
This Lease is contingent upon the fact that:
A. No zoning restrictions exist which prohibit the use of the Leased
Premises for the purpose of constructing and operating a hotel. If such zoning restrictions
exist, this offer is contingent upon Lessors obtaining an exception, or rezoning, to permit the
construction and operation of a hotel.
B. No restrictive covenants or other restrictions exist upon the Leased
Premises preventing the use of the Leased Premises for the purpose of constructing and
operating a hotel.
C. No building setbacks, parking restrictions, or other limitations exist,
either by zoning or covenant, which would prevent the use of the Leased Premises for the
purpose of constructing and operating a hotel, or which would materially increase the costs of
such construction and operation.
D. Lessee can obtain a height variance allowing the construction of a hotel.
E. No restrictions exist, regarding the use of commercial signs upon the
Leased Premises, which would have the effect ofprohibiting or materially restricting the use
of signage normally associated with commercial businesses.
F. At the lot line of the Leased Premises there exists sanitary sewer, storm
sewer, water, electricity, natural gas, telephone, and such other utilities as are necessary for
the operation of a hotel. No moratorium is pending or in effect regarding the availability of
utilities.
G. The Leased Premises is not subject to floodplain, urban renewal or
similar restrictions which would materially prevent the use of the Leased Premises for the
purpose of constructing and operating a hotel.
jL H. No drainage or water flow condition exists, either from or onto the
Leased Premises, which would materially prevent the use of the Leased Premises for the
purpose of constructing and operating a hotel or which would materially increase the costs of
such construction and operation.
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I. No covenants and/or restrictions exist which run with the land in favor
of other Leased Premises.
J. The Leased Premises is not burdened by any easements which would
prevent, or materially affect, the ability to construct and operate a hotel.
e- K. Lessee must obtain a report from a soil testing laboratory establishing
that there are no unique soil types, or other conditions on the Leased Premises, which would
prevent, or materially increase the cost of the construction and operation of a hotel. Lessors
shall deliver any existing soils reports to Lessee within ten (10) days after this Lease is
executed by Lessors.
L. All building permits, licenses, and/or other governmental approvals are
available and are not restricted, except for customary conditions imposed on an applicant, to
allow the commencement of construction of a hotel.
M. No agreement exists, express or implied, mandating the company,
companies, or entities which will construct the improvements to be located on the Leased
Premises, nor mandating the sources from which materials must be purchased.
N. Lessee must obtain a Phase I Environmental Assessment, or a Phase I1
Environmental Assessment, if needed, establishing that there does not exist on, under or
adjoining the Leased Premises, in any quantities, whether or not released from the Leased
Premises, any toxic or hazardous substances, chemicals, wastes or pollutants or mixtures
thereof, whether in solid, liquid or gaseous form, or any underground tanks or storage
vessels, which are subject to any environmental or pollution control statutes or regulations of
local, state and/or federal governments. Lessors shall deliver any existing environmental
reports to Lessee within ten (10) days after this Lease is executed by Lessors.
O. There shall be no blanket or undefined easements or rights of way
binding the Leased Premises that are not acceptable to Lessee and Lessee's lender in their
sole discretion.
P. Lessee shall obtain a commitment for financing from a bank or other
lending agency in an amount sufficient to allow the construction and furnishing of a hotel;
the loan commitment must contain customary terms and conditions, including the interest
rate, acceptable to Lessee, in Lessee's reasonably exercised judgment.
Q. Intentionally omitted.
R. There shall be no liens, encumbrances, mortgages, outstanding options,
leases, restrictions on transfer or similar charges or restrictions upon the Leased Premises.
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S. There shall be no delinquent tax or special assessment liens indexed
against the Leased Premises
T. There shall be no Uniform Commercial Code Financing Statements are
indexed against the Leased Premises.
' U. There shall be no action at law or equity pending, legal proceeding
instituted or threatened, which would have the effect of enjoining, preventing, or which
might otherwise materially affect the right to develop commercial facilities on the Leased
Premises.
V. Lessee shall be granted easements, or other rights, necessary to provide
ingress and egress to and from the Leased Premises.
{ W. Lessee shall have obtained a franchise for a limited service extended
stay lodging facility at the Leased Premises upon terms and with franchisor acceptable to
Lessee in its sole discretion.
If, on or before the Contingency Date, Lessee, in its sole discretion, determines
that the results of any inspection, test or examination is inconclusive or the Leased Premises
does not otherwise meet Lessee's criteria for development in the manner contemplated by
Lessee, Lessee may, in its sole discretion, terminate this Lease by delivery of a written notice
to Lessors, given on or before the Contingency Date, whereupon Twelve Thousand Five
Hundred Dollars ($12,500.00) of the Earnest Money shall be returned immediately to Lessee
and neither party shall have any further liability to the other hereunder, except as hereinafter
specifically provided in this Lease. In the event Lessee has not provided Lessors with a
written termination of this Lease prior to the Contingency Date, the Construction Term shall
commence as provided herein.
Lessee's Undertaking
A. In the event that as a result of Lessee's exercise of his rights under
paragraph 6, any damage occurs to the Leased Premises (but excluding any damage resulting
from Lessors' or their representatives, invitees or contractors acts), then Lessee shall
promptly repair such damage, at Lessee's sole cost and expense. Lessee hereby indemnifies,
protects, defends and holds Lessors harmless from and against any and all third party losses,
damages, claims, causes of action, judgments, damages, costs and expenses that Lessors
suffer or incur as a direct result of any damage caused to the Leased Premises during the
course of, and as a result of, any or all of the studies, investigations and inspections that
Lessee performs pursuant to paragraph 6.
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B. Lessee agrees to construct a mid scale limited service lodging facility
according to the Work Letter attached hereto as Exhibit `B" on or before the Commencement
Date. Lessee takes the Leased Premises "as is" without any warranties or representation,
except as may be provided herein. Lessee shall be solely responsible for all demolition and
construction costs. The parties acknowledge that as of the date of execution of this Lease,
the final plans and specifications for such hotel are not yet complete. On or before the
Contingency Date the final plans and specifications shall be completed and attached to this
Lease as Exhibit "1" of Exhibit `B". Lessor shall provide written approval of such plans and
specifications, which approval shall not be unreasonably withheld.
8. Representations of Lessors
Lessee's obligation to lease the Leased Premises is also subject to the accuracy
of Lessors' representations:
A. Lessors own good and merchantable fee simple title to the Leased
Premises.
B. There will be no federal, state, or local governmental plans, intents,
threats, or pending actions, seeking condemnation of the Leased Premises, in whole or in
part.
C. To the best of Lessors' knowledge and belief, the Leased Premises has
not been designated, and is not, a historical preservation site, nor does it contain any
cemetery, aboriginal or Indian burial grounds, nor items or remains of historical,
archeological, or anthropological interest which would delay or prevent the construction of
commercial facilities or which would materially add to the construction costs of the same.
D. To the best of Lessors' knowledge and belief, the Leased Premises does
not contain any wildlife production areas, nor does it contain or constitute an environment for
any endangered species of plant or animal as the same might be defined or designated
pursuant to the Endangered Species Act or any similar federal or state law or regulation.
Evidence of Title and Title Insurance
Lessee shall obtain, and provide a copy to Lessors, within twenty (20) business
days after this Lease is signed by Lessors, a title insurance commitment, agreeing to issue to
Lessee, upon recording of this Lease, a standard leasehold owner's policy in the amount
allocated to the Leased Premises, building, and improvements, insuring Lessee's interest in
the Leased Premises in accordance with the provisions of this Lease.
100992910.DOCI
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Lessee shall pay the costs associated with the commitment and the standard
leasehold owner's title insurance policy. Lessee shall pay all costs associated with any
leasehold lender's policy. Lessee shall also pay for such endorsements and affirmative
coverages as may be required by Lessee.
Lessee has twenty (20) days after receipt of the commitment, to object, in
writing, to any condition of title not acceptable to Lessee. If any objection is made, Lessors
shall have twenty (20) days in which to exercise their best efforts to correct such condition.
If the condition of title cannot be corrected within the twenty (20) day period, despite
Lessors' best efforts, Lessee may, at its option:
A. Declare this Lease null and void, in which case the Earnest Money shall
promptly be returned to Lessee, or
B. Elect to accept such title as Lessors are able to convey and proceed to
close the transaction without a reduction of the purchase price.
If Lessee makes no objection to the condition of the title within the ten (10) day
period, Lessee shall have waived the right to object and the condition of title shall be deemed
accepted by Lessee.
10. Absolutely Net Lease
This Lease is an absolutely net lease. Lessee shall pay for all expenses and
operating costs including, without limitation, all present and future costs of any kind paid or
incurred in operating, cleaning, equipping, protecting, repairing, and maintaining the Leased
Premises.
11. Taxes. Assessments and Public Utilities
Lessee shall pay for all Leased Premises and personal property taxes of any
nature, and for water, electricity, sanitary sewer, gas, rubbish removal, cable television,
telephone service and all other services and utilities supplied now or in the future to the
Leased Premises. Lessors shall have no responsibility therefore.
In addition to the monthly Rental and other charges to be paid by Lessee,
Lessee shall reimburse Lessors, upon demand, for any taxes payable by Lessors (other than
net income taxes) whether now customary or within the contemplation of the parties: (a) all
real property taxes and assessments levied with respect to all or a portion of the Leased
Premises; (b) upon, measured by or reasonably attributable to the cost or value of Lessee's
equipment, furniture, fixtures, and other personal property located in the Leased Premises, or
by the cost or value of any leasehold improvements made in or to the Leased Premises,
(00902910.DOC(
Exhibit A - Page 15
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regardless of whether title to such improvements shall be in Lessee or Lessors; (c) upon or
measured by the monthly Rental including any gross receipts tax or excise tax levied by the
City of Coralville, the County of Johnson, the State of Iowa, the Federal Government or any
other governmental body with respect to the receipt of Rental; (d) upon or with respect to the
possession, leasing, operation, management, maintenance, alteration, repair, use or
occupancy of the Leased Premises or any portion thereof. If it is not lawful for Lessee to
reimburse Lessors, the monthly Rental shall be revised to net Lessors the same net Rental,
after imposition of any such tax, as would have been payable to Lessors before the imposition
of such tax. All taxes and assessments payable for a period partly within and partly without
the term of this Lease shall be prorated between Lessors and Lessee.
Lessee shall pay, before delinquency, all taxes on all personal property
belonging to or used by Lessee on the Leased Premises. Lessors warrant to Lessee that there
are no special assessments now levied upon the Leased Premises that is the subject of this
Lease, nor expected to be levied upon the same.
12. Use of Leased Premises
Lessee has leased the Leased Premises described in paragraph 1 of this Lease
for the purpose of constructing and operating, at Lessee's sole expense, a midscale limited
service lodging facility according to the plans and specifications attached hereto as Exhibit
"1" of Exhibit `B". Lessee shall be responsible, at its sole cost and expense, to demolish to
the existing building structure on the Leased Premises. Lessee agrees that the Leased
Premises shall be used and occupied only as a mid scale limited service lodging facility and
for no other purpose or purposes without Lessors' prior written consent. Lessee shall not do
or permit to be done in or about the Leased Premises, nor bring or keep, or permit to be
brought or kept therein, anything which is prohibited by, or will in any way conflict with, any
law, statute, ordinance or governmental rule or regulation now in force or which may
hereafter be enacted or promulgated, or which is prohibited by any fire insurance policy
covering the Leased Premises, or will in any way increase the rate of or affect any fire or
other insurance upon the Leased Premises or any of its contents beyond those normally in
effect for a limited service lodging facility, or cause a cancellation of any insurance policy
covering the Leased Premises or any part thereof or any of its contents. Lessee shall not do,
or permit anything to be done, in or about the Leased Premises for any unlawful purpose, nor
shall Lessee cause, maintain or permit any nuisance in, on or about the Leased Premises or
commit, allow, or suffer to be committed any waste in, on or about the Leased Premises, or
allow the Leased Premises to be contaminated by any noxious or hazardous materials, and
Lessee shall, at Lessee's expense, remove any such materials which may contaminate the
Leased Premises. Lessee's obligation to remove hazardous materials released, stored or
disposed of on the Leased Premises during the Regular Term shall survive the termination of
this Lease.
(00982910.DOC)
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13. Fixtures and Equipment
Lessee may install in the Leased Premises, at its own cost and expense, any
fixtures, equipment and signs he deems necessary for the conduct of the business, which
fixtures, equipment and signs may either be leased by Lessee or purchased by Lessee from a
conditional seller or otherwise. Lessors shall not be responsible for the safekeeping of any
fixtures, equipment or other goods. All furniture, fixtures, equipment and signs installed by
Lessee in or about the Leased Premises shall, at all times, be and remain personal property,
regardless of the method in which the same is affixed to the Leased Premises, and shall
remain the personal property of Lessee.
14. Maintenance and Repairs
Lessee accepts the Leased Premises as being in the condition in which Lessors
are obligated to deliver the Leased Premises. Lessors have no obligation to alter, remodel,
improve, repair, decorate or paint the Leased Premises or any part thereof. No
representations respecting the condition of the Leased Premises have been made by Lessors
to Lessee, except as specifically set forth in this Lease.
Lessee, at his sole cost, shall promptly comply with all present and future
governmental requirements pertaining to the use or occupancy of the Leased Premises.
Lessee, at his sole cost, shall keep the Leased Premises in good order, condition and repair
during the Regular Tenn and any Renewal Term, including without limitation: all
nonstructural, interior and exterior areas; landscaped areas; all heating, ventilation and air
conditioning systems and equipment; all glass, glazing, windows, window moldings,
partitions, doors and door hardware; all interior painting; all fixtures and appurtenances in the
Leased Premises or exclusively serving the Leased Premises including electrical, lighting and
plumbing fixtures; and all other portions of the Leased Premises seen or unseen. If any
portion or element of the Leased Premises, or the other systems or equipment for which
Lessee is responsible hereunder cannot be fully repaired, Lessee shall promptly replace the
same at his sole cost and expense regardless of whether the benefit of such replacement
extends beyond the Regular Term. It is the intention of Lessors and Lessee that Lessee shall
maintain the Leased Premises, at all times during the Regular Term and any renewal term, in
an attractive, first-class and fully operative condition, at Lessee's expense. As such, Lessee,
at his sole expense, shall be exclusively responsible for all interior maintenance and janitorial
service for the Leased Premises, and the maintenance and repair of all heating and air
conditioning systems and equipment serving the Leased Premises.
15. Utilities
Lessee shall pay the cost of all water, gas, heat, light, power, sewer, telephone,
refuse disposal, and all other utilities and services supplied to the Leased Premises. Such
t00482910.00C)
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utilities shall be in Lessee's name. Lessee shall make payments for all separately metered
utilities, when due, directly to the appropriate supplier. Lessors shall have the right to require
Lessee to install, at Lessee's sole expense, separate meters (or other submeter, device or
monitor for the measurement of utility usage) for any utility for which a separate meter is not
installed as of the Commencement Date. Lessors shall in no way be liable or responsible for
any loss, damage or expense that Lessee may sustain or incur by reason of any change,
failure, interruption, interference or defect in the supply or character of the electricity or other
utilities supplied to the Leased Premises. Lessors make no representations or warranties as
the suitability of the utility service for Lessee's requirements, and no such change, failure,
defect, unavailability or unsuitability shall constitute any actual or constructive eviction, in
whole or in part, or entitle Lessee to any abatement or diminution of Rental, or relieve Lessee
of any of his obligations under the Lease. Lessors shall not be liable in damages or otherwise
for any failure or interruption of any utility service, and no such failure or interruption shall
entitle Lessee to terminate this Lease or abate the Rental due hereunder.
16. Insurance.
A. Liability Insurance. Lessee shall procure and maintain in continuous
effect from the Contingency Date through the termination of this Lease, at Lessee's sole cost
and expense, a policy or policies of insurance insuring Lessors and Lessee as their interests
may appear against bodily injury liability and property damage liability providing for limits
of not less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars
($2,000,000.00) in the aggregate. Lessee shall cause a certificate or certificates showing
such insurance coverage to be delivered to Lessors.
B. Lessee's Property. Lessee shall be responsible, at its sole cost, for
procuring and maintaining a separate policy or policies of insurance insuring his leasehold
improvements, furniture, equipment and other personal property kept in or on the Leased
Premises for loss from fire or other casualty loss.
C. Fire and Extended Coverage Insurance. Lessee shall, at its sole cost,
procure and maintain in continuous effect from the Contingency Date through the
termination of this Lease a policy or policies of insurance insuring Lessors and Lessee as
their interest may appear against fire and extended coverage risks covering the land,
permanent buildings and improvements partially or fully constructed on the Leased Premises,
and the use and the operation thereof, in an amount not less than their full insurable value.
The term "full insurable value" shall mean the actual replacement value, exclusive of the
costs of excavation, foundations and footings, but including such additional costs as may be
required for replacement construction to conform to all building code requirements for a new
building of like area, height and occupancy. Lessee and Lessors shall each be named as
insureds under such policy or policies. Lessee shall cause a certificate or certificates showing
current insurance coverage to be delivered to Lessors.
(00982910.DOC)
II
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17. Damage and Destruction of Leased Premises
"Building Partial Damage" shall hereinafter mean damage or destruction to the
building which are part of the Leased Premises to the extent that the cost ofrepair is less than
50% of the fair market value of such building as a whole immediately prior to such damage
or destruction. `Building Total Destruction" shall hereinafter mean damage or destruction to
the building which are part of the Leased Premises to the extent that the cost of repair is 50%
or more of the fair market value of such building as a whole immediately prior to such
damage or destruction. If at any time during the term of this Lease there is damage which
falls into the classification of Building Partial Damage, then Lessee shall, at Lessee's sole
cost, repair such damage as soon as reasonably possible and this Lease shall continue in full
force and effect. `Building Partial Damage" shall not result in any reduction or abatement of
the Rental amounts payable by Lessee under the terms of this Lease. Lessee shall be
permitted to receive and use any insurance proceeds payable to Lessors as a result of the
accident or casualty to the extent necessary to repair or rebuild the midscale limited service
extended stay lodging facility, but to the extent such insurance proceeds are inadequate any
excess cost shall be paid by Lessee.
Notwithstanding any other provision of this Lease, in the event of a "Building
Total Destruction", Lessee, may at its sole discretion, elect to terminate this Lease by written
notice delivered to Lessors not more than thirty (30) days after the destruction or damage.
Lessee shall remove, at Lessee's expense, all remaining destroyed and partially destroyed
improvements, furniture, equipment and other personal property left upon the Leased
Premises within a reasonable time. Lease payments shall continue until the destroyed or
partially destroyed improvements and other personal property have been removed.
In the event that insurance proceeds are received by Lessors and Lessee under
the casualty policies required to be carried by Lessee under paragraphs 16B and 16C above,
and the Lease is terminated under this paragraph, Lessors shall be entitled to the portion of
such proceeds attributable to the fixtures, tenant improvements and other property which
would remain with the Leased Premises under the paragraph above, and Lessee shall be
entitled to the portion of such proceeds attributable to the furniture, equipment, trade fixtures
and other contents of the Leased Premises which will be removed by Lessee under this
paragraph .
18. Assignment and Subletting and Sale
Except for the assignment of Lessee's interest to a corporation, limited liability
company, or other business organization of which the principals of Lessee own a majority
interest, and leases rooms in the ordinary course of operating the hotel, Lessee shall not
voluntarily, or by operation of law, assign, transfer, mortgage, pledge, hypothecate or
encumber this Lease or the hotel located on the Leased Premises or any interest therein, and
{00982910.DOC)
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shall not sublet the Leased Premises or any portion thereof, without obtaining the written
consent of Lessors, which consent shall be within Lesssor's sole discretion but shall not be
unreasonably withheld or delayed. Should Lessee receive a bona fide third party offer to
purchase the hotel assets located on the Leased Premises, Lessee shall notify Lessor in
writing of the terms and conditions of such third party offer, and provide Lessor with the
proposed buyer's last three (3) years of federal tax returns and its certified financial
statement. Lessor shall then have twenty (20) days from the date of receipt of the offer
notice and required information, to notify Lessee of its consent to or rejection of such offer.
Failure to respond within the twenty days shall be deemed an acceptance by Lessor to the
proposed sale of the hotel and assignment of this Lease.
Lessors are the owners of the Leased Premises described in paragraph 1 of this
Lease, and Lessee has no authority, and shall have no authority, to encumber the Leased
Premises or incur or allow to be incurred any indebtedness on behalf of Lessors, or subject
the Leased Premises to any mechanic's, materialmen's or other liens. Lessee has the right,
without Lessors' prior written consent, to mortgage its interests in this Lease under a first
Leasehold Mortgage or similar document, and the assignment of this Lease to a bank or other
entity (Leasehold Lender) loaning funds to Lessee for the construction of the limited service
extended stay lodging facility described in paragraph 12. The lender may, but is not obligated
to, accept the assignment of this Lease; if the assignment of this Lease is accepted by
Lessee's lender, the lender shall be subject to the same rights and obligations as Lessee.
Lessors may, without Lessee's consent, transfer their interest to the Leased Premises to a
corporation, limited liability company, or other business organization in which Donald
Gregory and Vergene Gregory, or their heirs, control a majority equity interest, ("Lessors'
Permitted Transfer"). Such transfer shall be subject to the terns of this Lease.
Notwithstanding any other provision contained herein, so long as a Leasehold
Mortgage remains unsatisfied of record between Lessee and Leasehold Lender, the following
provisions shall apply:
A. Provided Lessee is not in default, there shall be no cancellation,
surrender or modification of this Lease by joint action of Lessors and Lessee without the
prior written consent of the Leasehold Lender.
B. In the event of the termination of this Lease by Lessors or in the event
that the Leasehold Lender is diligently taking steps to acquire or sell Lessee's interest in this
Lease by foreclosure of the Leasehold Mortgage or otherwise, Lessors will enter into a new
lease of the Leased Premises with the Leasehold Lender or its nominee for the remainder of
the term, effective as of the date of the termination of this Lease or acquisition of Lessee's
interest by the Leasehold Lender, at the Rental and upon the terms, provisions, covenants,
and agreements as herein contained and subject only to the same conditions of title as this
(00462910.00C]
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Lease is subject to on the date of the execution hereof, and to the rights, if any, of any parties
then in possession provided:
(1) The Leasehold Lender, or its nominee, make written request upon
Lessors for a new lease and the written request is accompanied by payment to Lessors of
any sums then due to Lessors under this Lease;
(2) The Leasehold Lender, or its nominee, shall pay to Lessors, at the
time of the execution and delivery of the new lease, any expense, including reasonable
attorney's fees incurred by Lessors by reason of the new lease;
(3) The Leasehold Lender, or its nominee, provides proof, reasonably
satisfactory to Lessors that Leasehold Lender, or its nominee, can comply with all terms of
the new lease including, but not limited to, all requirements for the payment of monetary
sums due under this Lease.
19. Ouiet Enjoyment
Lessee, upon paying the Rental herein provided and performing all the
covenants and conditions of this Lease on its part to be performed, shall and may peaceably
and quietly have, hold and enjoy legal possession to the Leased Premises during the term
hereof.
20. Termination Upon Default
A. If Lessee has not cured, or diligently commenced a cure, within thirty
(30) days after written notice is personally served or mailed to Lessee by Lessors, regarding
the occurrence of any one of the following actions, conditions, failures, or omissions, this
Lease shall cease, terminate, and come to an end, at the option of Lessors:
(1) Lessee fails or omits to perform or violates any of the covenants
or conditions of this Lease, other than payment of Rental, or Lessee fails to make reasonable
efforts, in light of the surrounding circumstances, to keep substantially all of the Leased
Premises occupied and open.
(2) Abandonment of the Leased Premises. "Abandonment' means
Lessee has failed to engage in his usual and customary business activities on the Leased
Premises for more than fifteen (15) consecutive business days due to causes within the
reasonable control of Lessee.
(3) Unless Lessee has made arrangements, or provided security,
reasonably acceptable to Lessors for the continued payment of Rental as provided hereunder,
400482910.DOC1
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the filing or execution or occurrence of a petition in bankruptcy by or against Lessee,
adjudication as a bankrupt, insolvency in the bankruptcy equity sense, an assignment for
benefit of creditors, a petition or other proceeding for appointment of a trustee, receiver,
guardian or conservator with respect to Lessee or Lessee's property, or the taking by any
person of the leasehold created hereby or any part thereof upon execution, attachment or
other process of law or equity.
(4) The use of the Leased Premises for any purpose other than that
authorized in this Lease.
(5) Lessee has failed to construct the mid scale limited service
lodging facility on or before the Scheduled Commencement Date in accordance with Exhibit
«B.,
B. In addition to the foregoing, if Lessee is more than three (3) days late in
paying monetary sums due in accordance with this Lease, Lessors shall give written notice to
Lessee; if payment of all sums due to Lessors is not received within five (5) days after
written notice is delivered to Lessee, Lessors shall have the option to terminate this Lease
and to re-enter the Leased Premises and take possession thereof. Notice to Leasehold Lender
must be made by certified mail.
C. Lessors shall not be required to give Lessee any more than three (3)
notices under (A) and (B) above for the same default within any three hundred sixty-five
(365) day period.
D. In any of the events of default or termination as set forth in this
paragraph, Lessors shall have the right to terminate this Lease, to re-enter the Leased
Premises and take possession thereof, remove all persons therefrom, with or without process
of law, and to distrain for any Rental, damages or other sums that may due, any property
belonging to Lessee and located on the Leased Premises. Lessee shall quit and peaceably
surrender the Leased Premises to Lessors and all of Lessee's rights to the Leased Premises
shall be deemed forfeited.
E. A decision by Lessors not to enforce Lessors' rights under the terms of
this Lease, following a breach or breaches by Lessee of one or more of the covenants or
conditions hereof, shall not constitute a waiver of, nor affect the right of Lessors to
thereafter enforce Lessors' rights following any subsequent breach of the covenants or
conditions of this Lease.
F. Lessors shall, without limitation, have the right to any other legal
remedies allowed by the laws of Iowa, together with costs and reasonable attorneys' fees in
enforcing the terms and provisions of this Lease or in terminating the same.
(00962910.DOC)
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G. Lessee shall also be liable for and shall pay Lessors all reasonable
expenses incurred by Lessors in collecting delinquent amounts owed by Lessee or otherwise
incurred by Lessors in successfully asserting or enforcing their rights and remedies, including
reasonable attorney's fees and expenses.
H. Notwithstanding any other provision contained herein, Lessors shall
not re-enter, recover or resume possession of the Leased Premises or cancel or terminate this
Lease because of any default of Lessee without first giving written notice to Leasehold
Lender, specifying such default. Lessors agree to accept performance by Leasehold Lender,
and covenants that no default by Lessee shall be deemed to exist if Leasehold Lender, in
good faith, and within the period in which Leasehold Lender is permitted to cure such
default, has commenced appropriate action to cure the same and proceeds to completion with
reasonable diligence and continuity. If Leasehold Lender cannot reasonably take the action
required to cure the default without being in possession ofthe Leased Premises, then the time
permitted Leasehold Lender to cure the default shall be extended to include the period of
time required, acting with reasonable diligence, to obtain possession; provided, however, that
during any such period, all other obligations of Lessee under this Lease, including payment
of Rental, are diligently performed.
21. Continuation After Default
Even though Lessee has breached this Lease and abandoned the Leased
Premises, this Lease shall continue in effect for so long as Lessors do not expressly
terminate, in writing, Lessee's right to possession, and Lessors may enforce all its rights and
remedies under this Lease, including the right to recover the Rental as it becomes due. Acts
of maintenance, preservation, efforts to relet the Leased Premises or the appointment of a
receiver upon the initiative of Lessors to protect Lessors' interest under this Lease shall not
constitute a termination of Lessee's right to possession.
22. Condemnation.
If all or any part of the Leased Premises shall be taken by governmental
condemnation proceedings, this Lease shall terminate as to the part so taken as of the date of
taking and, in the case of a partial taking, which is so substantial that it frustrates the
intention of the parties by effectively preventing the operation of a limited service extended
stay lodging facility on the Leased Premises, either Lessors or Lessee can terminate this
Lease as to the balance of the Leased Premises by written notice to the other within thirty
(30) days after such date. In the event of a partial taking of the Leased Premises which does
not result in a termination of this Lease, the monthly Rental shall be equitably reduced. In
the event of a dispute as to the value of Lessee's interest in the then unexpired term of this
Lease, the parties shall resolve such dispute by arbitration. Lessors and Lessee shall divide
the proceeds of any condemnation action as their interests shall appear, provided, however,
(00982910.DOC)
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Leasehold Lender shall first receive that portion of the net award to Lessee necessary to fully
pay the unpaid balance of any Leasehold Mortgage.
23. First Rieht of Refusal
Except in the case of Lessors' Permitted Transfer, if Lessors, or any successor
owner, elects, in good faith, to sell the Leased Premises, Lessee shall have the First Right of
Refusal to purchase the Leased Premises. If Lessors so elect, or if Lessors get an offer on
terms Lessors are willing to accept, Lessors shall give Lessee written notice of the terms and
conditions under which Lessors are willing to sell Lessors' interest in the Leased Premises, or
a copy of the terms and conditions of the acceptable offer received by Lessors. Lessee shall
then have ten (10) business days from receipt within which to accept or reject the offer, and
to set a closing date within sixty (60) days of the date of acceptance. If Lessee does not
purchase the Leased Premises as provided herein, Lessors can sell the Leased Premises on
the same terms and conditions as offered or disclosed to Lessee within ninety (90) days,
subject to the provisions of this Lease and Lessee's rights hereunder. No sale or transfer shall
invalidate, void, or otherwise effect Lessee's Option to Purchase or the rights created
thereunder pursuant to section 26 of this Lease. Upon the closing of the sale all liabilities
and obligations of Lessors, under this Lease, accruing thereafter, shall terminate, and all
liabilities and obligations shall then be binding upon the new owner. Lessee agrees to attom
to any new owner. If Lessors do not close the sale of the Leased Premises with a third party
offeree, for any reason, Lessee's rights pursuant to this paragraph shall be reinstated and
Lessee shall be provided with notice of any new offer proposed by, or made to, Lessors.
Notwithstanding anything to the contrary herein, Lessee shall not have a First Right of
Refusal in the event it is in default under the terms of this Lease.
24. Acceptance of Leased Premises, Nonliability of Lessors
A. Acceptance of Leased Premises. By taking possession hereunder,
Lessee acknowledges that he has examined the Leased Premises and accepts the condition
thereof. Lessee acknowledges and agrees that Lessors have no obligation to improve the
Leased Premises other than as set forth specifically in this Lease, if at all. In particular,
Lessee acknowledges that any additional improvements or alterations needed to
accommodate Lessee's intended use shall be made solely at Lessee's sole cost and expense,
and strictly in accordance with the requirements of this Lease. Lessors shall be under no
obligation to provide utility, telephone or other service or access beyond that which exists at
the Leased Premises as of the date of this Lease, unless Lessors specifically agree in writing
to provide the same. It is anticipated that Lessee will be constructing Lessee Improvements
prior to taking occupancy, and any delays encountered by Lessee in accomplishing such
work, other than Building Partial Damage or Building Total Damage, or obtaining any
required permits therefor shall not delay the Commencement Date or the date that Lessee
becomes liable to pay Rental. By taking possession hereunder, Lessee acknowledges that he
accepts the square footage of the Leased Premises as delivered and as stated in this Lease.
No discovery or alleged discovery after such acceptance of any variance in such square
(00982910.DOCI
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footage as set forth in this Lease (or in any proposal, advertisement or other description
thereof) shall be grounds for any adjustment in any component of the Rental payable
hereunder, unless such adjustment is initiated by and implemented by Lessors.
B. Lessors' Exemption from Liability. Lessors shall not be liable for injury
to Lessee's business or loss of income therefrom, or for personal injury or property damage
that may be sustained by Lessee or any sublessee of Lessee, or their respective employees,
invitees, customers, agents or contractors or any other person in or about the Leased
Premises, caused by or resulting from fire, flood or other natural disaster, or from steam,
electricity, gas, water or rain, or dampness of any origin, that may leak, flow or emanate from
or into any part of the Leased Premises, or from the breakage, leakage, obstruction or other
defects ofpipes, sprinklers, wires, appliances, plumbing, air-conditioning, lighting fixtures or
computer equipment or software, whether such damage or injury results from conditions
arising upon the Leased Premises or upon other portions of the building, or from other
sources, and regardless of whether the cause of such damage or injury or the means of
repairing the same is inaccessible to Lessee. Lessors shall not be liable for any damages to
property or for personal injury or loss of life arising from any use, act or failure to act of any
third parties occurring in, or about the Leased Premises. Lessors shall not be liable for any
latent defect in the Leased Premises. All property of Lessee kept or stored on the Leased
Premises shall be so kept or stored at the risk of Lessee only, and Lessee shall indemnify,
protect, hold harmless and defend Lessors and Lessors' officers, directors, shareholders,
partners, members, principals, employees, agents, representatives, and other related entities
and individuals, and their respective successors and assigns, from and against any claims
arising out of damage to the same, including subrogation claims by Lessee's insurance
carriers. The indemnifications and waivers of Lessee set forth in this paragraph shall not
apply to damage or liability caused by the acts or omissions of Lessors.
25. Indemnification
Lessee shall indemnify, protect, hold harmless and defend Lessors and Lessors'
officers, directors, shareholders, partners, members, principals, employees, agents,
representatives, and other related entities and individuals, and their respective successors and
assigns (collectively, "Lessors' Related Entities"), from and against any and all claims,
actions, damages, liability, costs, and expenses, including attorneys' fees and costs, arising
from personal injury, death, and/or property damage and arising from: (a) Lessee's use or
occupation of the Leased Premises or any work or activity done or permitted by Lessee in or
about the Leased Premises (including without limitation any storage or display of materials or
merchandise, or other activity by Lessee), (b) any activity, condition or occurrence in the
Premises or other area under the control of Lessee, (c) any breach or failure to perform any
obligation imposed on Lessee under this Lease, (d) any breach or failure by Lessee to cause
the Leased Premises to comply with all legal requirements related to disabled persons or
access, or (e) any other act or omission of Lessee or his assignees or sublessees or their
respective agents, contractors, employees, customers, invitees or licensees. Lessee's
obligation to indemnify, protect, hold harmless and defend shall include, but not be limited
to, claims based on duties, obligations, or liabilities imposed on Lessors or Lessors' Related
(00982910.DOC}
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Entities by statute, ordinance, regulation, or other law, such as claims based on theories of
peculiar risk and nondelegable duty. Upon notice from Lessors, Lessee shall, at Lessee's solc
expense and by counsel satisfactory to Lessors, defend any action or proceeding brought
against Lessors or Lessors' Related Entities by reason of any such claim. If Lessors or any of
Lessors' Related Entities is made a party to any litigation commenced by or against Lessee,
then Lessee shall indemnify, protect, hold harmless and defend Lessors and Lessors' Related
Entities from and against any and all claims, actions, damages, liability, costs, expenses and
attorneys' fees and costs incurred or paid in connection with such litigation. Lessee, as a
material part of the consideration to Lessors hereunder, assumes all risk of, and waives all
claims against Lessors for, personal injury or property damage in, upon or about the Leased
Premises, from any cause whatsoever. Provided, however, that the indemnifications and
waivers of Lessee as set forth in this paragraph shall not apply to damages, claims, and
liability caused by the acts or omissions of Lessors.
26. Option to Purchase
A. Lessee has the option to purchase the Leased Premises at any time after
the seventh (7`s) anniversary of this Lease for a sum of One Million Three Hundred Fifty
Thousand Dollars ($1,350,000.00). Written notice of Lessee's intent to exercise the option
must be given to Lessors at least ninety (90) days prior to the seventh (7w) anniversary of the
date this Lease has been executed by Lessors any closing date proposed by Lessee. Notice
must be given to Lessors by certified mail. Lessee's evidence of mailing shall constitute
conclusive proof of Lessee's exercise of the option to purchase. The closing of the purchase
of the Leased Premises shall be completed within thirty (30) days after the seventh (701)
anniversary of the Lease. Notwithstanding anything to the contrary herein, Lessee shall not
have an Option to Purchase in the event they are in default under the terms of this Lease.
B. Lessee has the option to purchase the Leased Premises at any time after
the tenth (10') anniversary of this Lease for a sum of One Million Two Hundred Thousand
Dollars ($1,200,000.00). Written notice of Lessee's intent to exercise the option must be
given to Lessors at least ninety (90) days prior to the tenth (10`") anniversary of the date this
Lease has been executed by Lessors any closing date proposed by Lessee. Notice must be
given to Lessors by certified mail. Lessee's evidence of mailing shall constitute conclusive
proof of Lessee's exercise of the option to purchase. The closing of the purchase of the
Leased Premises shall be completed within thirty (30) days after the tenth (10th) anniversary
of the Lease. Notwithstanding anything to the contrary herein, Lessee shall not have an
Option to Purchase in the event they are in default under the terms of this Lease.
27. Holding Over
If, without objection by Lessors, Lessee holds possession of the Leased
Premises after the expiration of the term of this Lease, Lessee shall become a lessee from
month to month upon the terms herein specified but at a monthly Rental equivalent to the
then prevailing Rental. Each party shall give the other written notice of its intention to
{00982910.DOCI
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terminate such tenancy at least one month prior to the termination date. If Lessee holds
possession of the Leased Premises after expiration of this Lease, notwithstanding Lessors'
objection, Lessee shall pay monthly Rental at twice the amount otherwise payable under the
terms hereof.
28. Waiver
The waiver by Lessors or Lessee of any agreement, condition or provision
herein contained shall not be deemed to be a waiver of any subsequent breach of the same or
any other agreement, condition or provision, nor shall any custom or practice which may
evolve between the parties be construed to waive or to lessen the right of Lessors or Lessee
to insist upon performance by the other party in strict accordance with this Lease. The
subsequent acceptance of Rental by Lessors shall not be deemed to be a waiver of any
preceding breach, by Lessee, of any agreement, condition or provision of this Lease, other
than the failure of Lessee to pay the particular Rental so accepted, regardless of Lessors'
knowledge of any preceding breach at the time of acceptance of the Rental.
29. Notices
All notices and demands which may, or are required to, be given by either party
to the other shall be in writing and shall be deemed to have been fully given when deposited
in United States mail, certified, postage prepaid, and addressed as follows: To Lessee at 2
Quail Creek Circle, North Liberty, Iowa 53217, or to such other place as Lessee may
designate in a written notice to Lessors; to Lessors at 629 Pine Ridge Drive, Coralville, Iowa
52241, with a copy to Michael J. Pugh, Bradley & Riley PC, One South Gilbert Street, Iowa
City, Iowa 52240, or to such other place as Lessors may designate in a written notice to
Lessee. Service of all dispossessory or distraint proceedings and notices shall be made on the
person in charge of or occupying the Leased Premises at the time, and ifno person shall be in
charge of or occupying the same, then such service may be made by attaching the same on
the main entrance of the Leased Premises. All notices and demands which may or are
required to be given by Lessors to Lessee, as provided in this Lease, shall also be given to
Leasehold Lender at such address as is provided to Lessors, in writing, by Leasehold Lender.
30. Title to and Removal of Improvements
Until the expiration or termination of this Lease (subject to the rights of any
leasehold lender) title to any building or improvements situated on the Leased Premises, and
the building equipment and other items installed thereon and any alterations or additions
thereto shall remain solely in Lessee; Lessee shall be entitled to deduct all depreciation on
Lessee's income tax returns for any buildings, equipment and/or other items, improvements,
additions, changes or alterations,
t00482910.DOC)
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Upon the expiration or termination of this Lease, including termination for
default by Lessee, the building that has been constructed on the Leased Premises, described
in paragraph 1, shall be delivered to Lessors; Lessee shall execute such documents as may be
necessary to effectuate the transfer of all right, title, and interest to the building to Lessors.
31. Mechanic's Liens
Lessee covenants to keep the Leased Premises and the improvements free of
mechanic's liens and other liens of like nature and at all times to fully protect and indemnify
Lessors against claims which may ripen into liens and against all attorney's fees and other
costs and expenses growing out of, or incurred by reason of, or on account of, any claim or
lien, and Lessors agree to do likewise with respect to work done by or for Lessors. If Lessee
fails to fully discharge any lien or claim, Lessors, at their option, may pay the same or any
part thereof, and shall be the sole judge of the legality of such lien or claim. All amounts
paid by Lessors, together with interest, at the then maximum legal rate, from the time of
payment until repayment, shall be repaid by Lessee. If Lessee desires to contest any
mechanic's lien or claim, he shall famish Lessors with adequate security in the amount of the
claim, or the bond of a responsible corporate surety, in such amount. If a final judgment
establishing validity or existence of a lien for any amount is entered, Lessee shall pay and
satisfy the same at once.
32. Amendment and Modification
This Lease can be modified or amended only by a writing duly authorized and
executed by Lessors and Lessee. It cannot be amended or modified by oral agreements or
understandings between the parties or by any acts or conduct of the parties unless reduced to
writing. The marginal headings are for convenience only and shall not be used for purposes
of interpretation or construction.
33. Successors
All of the terms, covenants and conditions of this Lease shall be binding upon
and inure to the benefit of the successors and assigns of Lessors and Lessee, provided that
nothing in this paragraph shall be deemed to permit any assignment contrary to the provisions
of paragraph 19.
34. Lessors' Warranties
Lessors warrant that they have good and marketable title to the Leased
Premises and the Leased Premises are not subject to any lease, lien, mortgage, deed of trust,
judgment, levy or other encumbrance. Lessors further warrant that no additional, or
different, leases, liens, mortgages, deeds of trust, judgments, levies, or other encumbrances
100492910.DOC1
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shall be permitted to be attached to or filed against the Leased Premises without the written
consent of Lessee, which consent shall not be unreasonably withheld, conditioned or delayed.
Lessors covenant and agree that during the term of this Lease, and any
extensions, Lessors shall not mortgage or otherwise create any security or other lien or
encumbrance upon or affecting the fee interest in the Leased Premises, or the building,
improvements, fixtures and equipment or other property thereon, at anytime.
35. Separate Tax Parcel
Lessors shall take such action as is necessary to make the Leased Premises a
separate tax parcel for the purpose of payment of taxes in accordance with paragraph 6.
36. Estoppel Certificates
Lessors, shall, with not less than ten (10) days prior notice, execute,
acknowledge and deliver to Lessee or Leasehold Lender (or its nominee) a statement in
writing certifying that this Lease is unmodified and is in full force and effect (or if there have
been modifications that this Lease is in full force and effect as modified and stating the
modifications) and the dates to which Rental has been paid, and stating whether to the best
knowledge of the signatory, that Lessee is not in default in performing or observing any
provision of this Lease, if such be the case, and, if in default, specifying each default of
which the signatory has knowledge, and as to any other matters as may reasonably be
requested, it being intended that any statement delivered by Lessors may be relied upon by
Lessee and Leasehold Lender, or its nominee.
37. Miscellaneous
The words "Lessors" and "Lessee" shall include the plural as well as the
singular. Time is of the essence of this Lease and each and all of its provisions. References
to time periods in days, unless otherwise specified, shall be calendar days. All amounts of
money payable to Lessors shall be due on the first day of each month, and shall, if not paid
by the tenth (10th) day of the month, bear interest from the due date until paid at the rate of
fifteen percent (15%) per annum. If any provision of this Lease shall be determined to be
illegal or unenforceable, such determination shall not affect any other provision of this Lease,
and all other provisions shall remain in full force and effect. Whenever consent approval, or
other action by Lessors is necessary, pursuant to this Lease, each of the parties constituting
Lessors must act diligently, reasonably and in good faith so that such consent, approval, or
action is not unreasonably withheld, conditioned, or delayed.
(004B2910.DOC
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38. Compete Agreement
There are no oral agreements between Lessors and Lessee affecting this Lease,
and this Lease supersedes and cancels any previous negotiations, arrangements, agreements,
and understandings, if any, between Lessors and Lessee with respect to the subject matter of
this Lease or the Leased Premises. There are no representations between Lessors and Lessee
other than those contained in this Lease.
39. Counterparts
This Lease may be executed in any number of counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of which, together,
constitute the same instrument.
40. Governing Law
This Lease shall be determined in accordance with the laws of Iowa; any
controversy concerning the provisions of this Lease shall be venued in the courts of general
jurisdiction for Johnson County, Iowa or in the United States District Court for the District of
Iowa.
41. Severability
The terms of this Lease shall be deemed severable, and if any term is deemed to
be illegal or unenforceable, the remainder of the Lease shall remain in full force and effect.
42. Construction
Lessors and Lessee acknowledge that they participated equally in the
negotiation and creation of this Lease and that, accordingly, no court construing this Lease
shall construe it more stringently against one party than against the other.
43. Arbitration and Mediation. Waiver of Jury Trial
Except as provided in this paragraph, if any dispute ensues between Lessors
and Lessee arising out of or concerning this Lease, and if said dispute cannot be settled
through direct discussions between the parties, the parties shall first attempt to settle the
dispute through mediation before a mutually acceptable mediator. The cost of mediation
shall be divided equally between the parties. Thereafter, any remaining, unresolved disputes
or claims shall be resolved by binding arbitration in accordance with the rules of the
American Arbitration Association, and judgment upon the award rendered by the arbitrator
may be entered in any court of competent jurisdiction. The prevailing party in any such
400482910.0001
23
Exhibit A - Page 30
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arbitration shall be entitled to recover reasonable costs and attorneys' fees and costs as
determined by the arbitrator; provided, however, that the foregoing provisions regarding
mediation and arbitration shall not apply to any issue or claim that might properly be
adjudicated in an unlawful detainer proceeding. Without limiting the foregoing, Lessors and
Lessee hereby waive trial by jury in any action, proceeding or counterclaim (including any
claim of injury or damage and any emergency and other statutory remedy in respect thereof)
brought by either against the other on any matter arising out of or in any way connected with
this Lease, the relationship of Lessors and Lessee, or Lessee's use or occupancy of the Leased
Premises.
44. Attorney's Fees
If any legal action, appeal, arbitration, or other proceedings are initiated to
enforce or interpret this Lease, the prevailing party shall be entitled to recover attorney and
paralegal fees, court costs, and other reasonably incurred expenses, in addition to any other
relief to which such party may be entitled. "Prevailing party" means the party who obtains
the greater part, comparatively, of the respective relief sought by each, whether by
compromise and settlement, or a determination by any court or arbitrator. The fees, costs,
and expenses shall be included in, and be a part of, any settlement, order, judgment, or other
determination, which shall also provide for the recovery of any fees, costs, and expenses
incurred in enforcing such settlement, order, judgment, or determination.
45. Survival of Covenants
Any representations, warranties, and covenants contained in this Lease, which,
by their nature, require performance or observance after the termination of this Lease, shall
survive the termination of this Lease.
46. Renewal Option
A. Provided Lessee is not in default hereunder, Lessors hereby grant unto
Lessee the sole, exclusive and continuing right and option, exercisable as herein provided, to
extend the term of this Lease for two (2) additional renewal periods of ten (10) years beyond
the Regular Tetra, such renewal, if exercised, shall be upon the terms and conditions
contained in this Lease.
B. Lessee may exercise said option by giving Lessors written notice,
pursuant to paragraph 29 of the Lease, of its intention to the extend the term, not later than
one hundred eighty (180) days prior to the end of the Regular Term and any Renewal Term.
C. A notice of election under this paragraph shall be ineffective unless this
Lease shall be in force at the time such notice is given. However, the existence of a default
400982910.DOC]
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of which Lessors have not previously given Lessee a notice shall not render the notice of
election ineffective.
D. If Lessee exercises his first renewal option, the Rental during said first
Renewal Term shall be the Rental during the second ten (10) years of the Regular Term as
specified in paragraph 3C of the Lease, plus an amount equal to the Rental multiplied by the
percentage increase, if any, in the United States Bureau of Labor Statistics revised Consumer
Price Index (1982-84 = 100), All Items and Major Group Figures for All Urban Consumers,
US Average, for the month of November 2028 over the month of November 2018.
E. If Lessee exercises his second renewal option, the Rental during said
second Renewal Term shall be the Rental as specified in subparagraph D above, plus an
amount equal to the Rental paid during the First Renewal Term multiplied by the percentage
increase, if any, in the United States Bureau of Labor Statistics revised Consumer Price Index
(1982-84 =100), All Items and Major Group Figures for All Urban Consumers, US Average,
for the month of November 2038 over the month of November 2028.
F. If Lessee fails to give notice within the time period specified in
paragraph 46B, Lessee can reinstate the option by making a Ten Thousand Dollars
($10,000.00) non refundable payment to Lessors within sixty (60) days from the time period
specified in paragraph 4B.
Notwithstanding the above, in no event will the above calculation result in a
reduction of monthly Rental below the amount of the monthly Rental of the previous lease
term.
47. Memorandum
This Lease shall not be recorded. However, Lessor agrees, upon Lessee's
request, to execute and deliver to Lessee a Memorandum of Lease setting forth the
pertinent provisions of this Lease that Lessee, at its cost, can record in the Johnson
County Recorder's Office.
IN WITNESS WHEREOF, the parties have executed this Lease dated the day and
year first above written.
LESSORS: LESSEE:
KINSETH HOSPITALITY COMPANY, INC.
Donald Gregory By, t u � A
g ry c—�— Bruce A. Kinseth, Vice President
(00482910.00C)
25
Exhibit A - Page 32
row wa-IMi1FaMIMIM67tMY1MANIQ0.1O6Y0]2me] RA:trite] a0161 "Kelell=
Vergene regory
HERITAGE DEVELOPMENT NC.
i
B / B2
Its
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this I day of ,
2007 by Bruce A. Kinseth, Vice President of Kinseth Hospitality Company, Inc.
, I hereunto set my hand and official seal.
KATHI ELDER
E?Commisslon
Notarial Seal • Iowa//1� /1 # 730271 /►Clp1� 11Y/1 1)X/1-
MyCommisslonExplres$ 30.1(7
Notary Public, Iowa
(Notarial Seal) My Commission Expires:
STATE OF IOWA
SS.
COUNTY OF JOHNSONLA
)
This instrument was acknowledged before me on this day of
2007 by Donald Gregory and Vergene Gregory, husband and wife.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
-L - NotarykOublic, Iowa (�
(Notarial Seal) My Commission Expires: `�j
100482910.DOCI
26
Exhibit A - Page 33
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
STATE OF IOWA )
) SS.
COUNTY OF JOHNSON )
Thi
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s instent was ack wledged be€ore me on this day of 0..1211
2007 byU as . Kms— of Heritage Development, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and official seal
ota ublic, Iowa
(Notarial Sea) My Commission Expires:
(00482910.DOCI
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EXHIBIT "B" -- WORK LETTER
(Lessee Build)
This WORK LETTER ("Agreement") is being entered between Donald and Vergene
Gregory and Heritage Development, Inc. (collectively "Lessors"), and Kinseth Hospitality
Company, Inc., ("Lessee"), in connection with the execution of the Lease Agreement
between Lessors and Lessee of even date herewith ("Lease"), who hereby agree as follows:
1. General.
(a) The purpose of this Agreement is to set forth how the Lessee
Improvements (as defined in Section 3 below) in the Leased Premises are to be constructed,
who will undertake the construction of the Lessee Improvements, who will pay for the
construction of the Lessee Improvements, and the time schedule for completion of the
construction of the Lessee Improvements.
(b) Except as defined in this Agreement to the contrary, all terms utilized in
this Agreement shall have the same meaning ascribed to them in the Lease.
(c) The provisions of the Lease, except where clearly inconsistent or
inapplicable to this Agreement, are incorporated into this Agreement.
(d) The Lessee Improvements shall be constructed pursuant to this
Agreement by Lessee.
2. Commencement Date. The "Commencement Date" shall have the definition
set forth in paragraph 2 of the Lease. In addition, the Lessee Improvements shall be deemed
to be "substantially complete" as also described in paragraph 2 thereunder.
3. Lessee Improvements. The term "Lessee Improvements" shall mean the
demolition of the existing building on the Leased Premises and all improvements shown in
the final plans and specifications attached as Exhibit 1, and to the extent specified in the
Final Plans, all improvements necessary to construct a midscale hotel. The previously agreed-
upon plans and specifications of Lessee Improvements to the Leased Premises are attached
hereto to this Work Letter, marked Exhibit "I," and incorporated herein by reference.
a. Construction of the Lessee Improvements. Lessee shall submit the attached
plans and specifications to the appropriate governmental body or bodies for final plan
checking and a building permit. After a building permit for the work has been issued and
upon selection of Lessee's Contractor, Lessee's shall enter into a construction contract (the
"Construction Contract") with Lessee's Contractor to cause the construction of the Lessee
Improvements which shall be carried out in conformance with the plans and specifications in
a good and workmanlike manner using fust -class materials. Lessee shall see that the
construction complies with all applicable building, fire, health and sanitary codes and
regulations. Lessee's Contractor shall commence and diligently proceed with the
construction of all the Lessee Improvements and Lessee's Contractor shall use commercially
(00982910.DOC)
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reasonable efforts to complete the Lessee Improvements by the Scheduled Commencement
Date, subject to delays beyond the control of Lessee or his contractor or subcontractors,
including force majeure.
It shall be the responsibility of Lessee to enforce the following requirements of
Lessee's Contractor, and all subcontractors of Lessee's Contractor, at every level:
(a) Any damage to the Leased Premises caused by Lessee's Contractor shall
be at the sole cost and expense of Lessee.
(b) Lessee's Contractor shall be responsible for the repair, replacement and
clean up of any damage by Lessee's Contractor to the Leased Premises, including but not
limited to access ways to the Leased Premises, which may be concurrently used by others.
(c) Any rework of sub -base or compaction required after Lessee's
Contractor's initial acceptance of the Leased Premises shall be done by Lessee's Contractor,
which shall include the removal from the Leased Premises of any excess soil or debris. All
work shall be done in accordance with all applicable laws and industry standard construction
practices and, as required, in compliance with specifications of a soils engineer or consultant.
(d) Lessee's Contractor shall be allowed to store customary materials, tools
and supplies within the Leased Premises if and only if those items are to be used on the
improvements of said Leased Premises. Lessors are in no way liable for the loss or damage
of stored materials.
(e) All trash and surplus construction materials shall be stored within the
Leased Premises or at a location outside the Leased Premises designated by the Lessor, in
their sole discretion, and shall be promptly removed from the Leased Premises.
(f) Lessee and Lessee's Contractor are responsible for compliance with all
applicable codes and regulations of duly constituted authorities having jurisdiction as far as
the performance of the Lessee Improvements is concerned and for all applicable safety
regulations established by OSHA or other regulatory agencies. Prior to commencement of
construction, Lessee shall submit to Lessors evidence of insurance as required by the Lease
naming Lessors and its agents, successor and/or assigns as an additional insured on any and
all policies. In addition, Lessee's Contractor shall be required to carry Builders Risk
Insurance covering the existing Lessee improvements and the improvements to be
constructed.
(g) All required permits and approvals, including but not limited to
Planning, Building, Fire, and Health department permits, must be obtained by Lessee or
Lessee's Contractor.
5. No Lessors Liability. Unless caused by or resulting from the acts or omissions
of Lessors, their agents, employees or contractors, Lessors shall not be liable for any loss,
cost, damage or expense incurred or claimed by Lessee or any other person or party on
account of the construction or installation of Lessee's Improvements or any other person or
party on account of the construction or installation of Lessee's Improvements. Lessee hereby
acknowledges and agrees that the compliance of the Lessee Improvements made to the
J004e2910.r)oC)
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Leased Premises by Lessee and any plans therefore, will comply with all applicable
governmental laws, codes and regulations shall be solely Lessee's responsibility. Lessors
assume no liability or responsibility resulting from the failure of Lessee to comply with all
applicable governmental laws, codes and regulations or for any defect in any of the Lessee
Improvements, or other alteration to the Leased Premises made by Lessee. Lessee further
agrees to indemnify, defend and hold harmless Lessors from any loss, cost, damage or
expense incurred, claimed, asserted or arising in connection with any of Lessee
Improvements unless caused by or resulting from the acts or omissions of Lessors, their
agents, employees or contractors.
IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first
written above.
LESSORS:
LESSEE:
KINSETH(�HOSPITALI�TY COMPANY, INC.
By:
Donald Gregory Bruce A. Kinseth, President
Vergenitregory
HERITAGE DEVELOPMENT, INC.
100482917.RTFF
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Exhibit A - Page 37
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EXHIBIT "1"
Plans and Specifications of Lessee Improvements
(00482910.DOC)
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EXHIBIT "C"
APPROVED FORM OF LETTER OF CREDIT
At the request and for the account of Kinseth Hospitality Company, Inc. ("Applicant"), we
hereby establish our Irrevocable Letter of Credit for the benefit of Donald and Vergene
Gregory and Heritage Development, Inc. (collectively `Beneficiary"), in the aggregate
amount of One Hundred Fifty Thousand Dollars ($150,000.00).
Funds under this Letter of Credit may be drawn down by Beneficiary, upon presentation of
the following at the office of the undersigned located at
or any successor location which is the main office of the undersigned in
County,
(1) The original of this Letter of Credit;
(2) A written statement signed by an authorized officer, general partner or other
party or parties authorized to execute documents on behalf of Beneficiary under the terms of
its governing documents, certifying either (a) that Beneficiary is entitled to draw on this
Letter of Credit pursuant to that Lease Agreement between Beneficiary and Applicant for
premises located in Coralville, Iowa, as the same may be amended from time to time, and
specifying the paragraph of the Lease Agreement for which Applicant is in default or (b) that
Beneficiary has received written notice from the undersigned that this Letter of Credit will
not be renewed and Applicant has failed to deliver a replacement letter of credit within thirty
(30) days prior to such expiration date; and
(3) A sight draft executed and endorsed by an authorized officer, general partner or
other party or parties authorized to execute documents on behalf of Beneficiary under the
terms of its governing documents.
Partial and multiple drawings are permitted under this Letter of Credit.
This Letter of Credit is transferable in its entire undrawn balance to a successor beneficiary
upon presentation by Beneficiary of the original of this Letter of Credit and a written request
for transfer executed by Beneficiary.
Partial draws are permitted. The amount of each draft must be endorsed on the reverse
hereof by the negotiating bank. We hereby agree that this Letter of Credit shall be duly
honored upon presentation and delivery of the certification specified above.
This Letter of Credit shall expire upon Beneficiary's written notice that Applicant has
obtained a Certificate of Occupancy for its hotel in Coralville, Iowa, according to the Lease
{00482910.DOC)
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Agreement between Beneficiary and Applicant. Notwithstanding such expiration date of this
Letter of Credit, the term of this Letter of Credit shall be automatically renewed, without
written amendment, for successive, additional one (1) year periods unless, at least sixty (60)
days prior to any such date of expiration, the undersigned shall give written notice to
Beneficiary, by certified mail, return receipt requested at the following address or at such
other address as may be given to the undersigned by Beneficiary, that this Letter of Credit
will not be renewed. Address for notice of non -renewal:
Heritage Development, Inc.
1001 25`� Avenue, #5
Coralville, Iowa 52241
Attention: President
governed by the law of the State of Iowa
{00482910.00CI
34
Exhibit A - Page 40
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT CO r]
co Py
ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT
This Assignment d Assump ton of Lyse Agreement ("Agreement") is made and
entered into as of this day of WU L�tSC .2009 (the "Effective Date"), by and
between KINSETH HOSPITALITY COr&ANY, INC., an Iowa corporation ("Assignor")
and 25TH AVENUE HOTEL ASSOCIATES, LLC, an Iowa limited liability company
("Assignee"),
Recitals
A. WHEREAS, Assignor is the tenant pursuant to that one certain Lease
Agreement entered into with Donald Gregory and Vergene Gregory and Heritage
Development, Inc., (the "Lessors") effective as of October 4, 2007, as amended by First
Amendment to Lease Agreement dated November 30, 2007 and as amended and reinstated
by Reinstatement and Second Amendment to Lease Agreement dated August &102009 (the
"Lease"); and
13. WHEREAS, Assignor desires to assign the Lease to Assignee and
Assignee desires to accept such assignment; and
C. WHEREAS, upon written consent of the Lessors the Lease is
assignable by Assignor to Assignee; and
D. WHEREAS, Assignee is an entity affiliated with Assignor and the
principals of Assignor currently own all units in Kinseth CHA, L.L.C. which is the sole
member of assignee; and
E. WHEREAS subject to the terms and conditions herein Lessors desire
to eonscnt to the assignment;
Agreement
NOW, THEREFORE, in consideration of the promises, and the covenants
and agreements set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Assignor and Assignee hereto agree as
follows:
I. Assignor hereby assigns to Assignee, effective as of the Effective Date, all of
Assignor's right, title and interest in, to and under the Lease. Assignor agrees to indemnify
and hold Assignee harmless from any and all claims, liabilities, obligations, losses, costs and
expenses, accruing under the Lease prior to the Effective Date.
2. Assignee hereby assumes all of the obligations and liabilities of Assignor
under the Lease accruing on or after the Effective Date. Assignee agrees to indemnify and
hold Assignor harmless from any and all claims, liabilities, obligations, losses, costs and
expenses, accruing under the Lease on or after the Effective Date.
3. Assignor agrees that in the event tho principals of Assignor assign, transfer, or
otherwise convey a majority of units in Kinseth C.HA, L.L.C. (other than as a collateral
assignment or pledge and other than by transfer by gift, will or intestacy or other similar type
of transfer or disposition to a Kinseth family member) or additional members are admitted to
Assignee which results in Kinseth CRA, L.L.C. no longer owning a majority interest in
Exhibit A - Page 41
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
Assignee, then Assignor shall remain liable for performance under the Lease. Assignee
agrees that in the event Assignor performs any obligations under the Lease pursuant to this
paragraph, the Lease shall be re -assigned to Assignor upon demand.
4. This Agreement shall be binding upon the parties and their successors and
assigns and shall inure to the benefit of the parties and their permitted successors and assigns.
(SIGNATURE PAGE FOLLOWS)
Exhibit A - Page 42
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
I'I WnNESS V41EREOF, Assignor and .Assignee have executed this Agreement the day
and year first above written.
kUNSEW HOSYII"ALI1Y COMPANY, INC. 25TH AVENU8 HOTEL ASSOCIATES,
LLC
BY! ------------------------------
By:
Nam.: Bruce Kinseth, Manager
Title_
STATE OF IOWA )
) SS.
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this _ day of . 2008 by
. as of Kinseth, Hospitality Company, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State of Iowa
STATE OF IOWA
) SS.
COUNTYOFJOITNSON )
This instrtmzeat was acknowledged before me on this _day of , 2008 by Bruce Kinseth,
as Manager of 15th Avenue Hotel Associates, LLC.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State o lawn
Exhibit A - Page 43
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
ACKNOWLEDGEMENT" AND CONSENT
Donald Gregory and Vergene Gregory and heritage Development, Inc. (the "Lessors")
hereby acknowiedge receipt of the above and foregoing Assignment and Assumption
of Lease Agreement made by KINSETH HOSPITALITY COMPANY, INC. and 25TH
AVENUE HOTEL ASSOCIATES, LLC, and consents to the assignment made herein.
Dated this —Kit day of._ 2008.
?-naldGregory Vezgene Gregory
�PF
iGi3
STATE OF IOWA
SS.
COUNTY OF JOHNSON ) }
This instnrment w a kamr edged before me on this of 2008 by
as of Heritage Dc IopmeM Inc.
IN WITNESS EOF, I hereunto set my hand and official seal.
Notary`Pylic-State of
1
STATF. OF IOWA ) ?-;', �,
L
) SS.
COUNTY OF JOHNSON )
This instrwnent was acknowledged before me on this day of
2008
by Donald Gregory and V ergene Gregory, husband and wife.
IN WITNESS WHEREOF. I hereunto set my band and official seal.
Exhibit A - Page 44
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
STATE OF IOWA )
SS
COUNTYOF JOHNSON )
...Thio in ^^CIIt Waaapkn xledned t� R ^• �^ tM1is.�davnf ...2nan
HERITAGE)DEVELOPMENT, INC.
BY
Its
STATE OF IOWA )
SS.
COUNiYOFJOHNSON )
ibis ms em w8.a acknowledged before me on this ,� day of jhQA,pl— 2008 by&_11 �"a�
FS pe ofKinscth Hospitality Company, lno. 6
IWI HI ELDER
IN WITNESS WHEREOF, I hereunto sec my band and official seal. Nwodol Seal - w
Commisvon#733.027-1,r. rI
my Commul Exp"' = [
N Public -Slate oflowa
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this day of, 2008 by
M of Herttege Development, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State of Iowa
STATE OF IOWA )
SS.
COUNTY OF JOHIVSON )
This instrument was acknowledged before me on this _ day of 2008 by Donald
Gregory and Vergene Gregory, husband and wife.
IN WITNESS WHEREOF, I heunato set my hand and official seal.
(005e134].D )
Notary Public -State of Iowa
Exhibit A - Page 45
E -FILED 2015 FEB 05 9:59 AM JOHNSON -CLERK OF DISTRICT COURT
ASSIGNMENT AND ASSUMMON OF LEASE AGREEMENT
This Assigtmrent and Assumption of Lease Agreement ("Agreement") is made and entered into
as of Utis _ day of . 2008 (the "Effective Date"), by and between KINSETH
HOSPITALITY COMPANY, INC., an Iowa corporation ("Assignor-) and 25TH AVENUE HOTEL
ASSOCIATES, LLC, an Iowa limited liability company ("Assigner.'')_
Recitals
A. WHEREAS, Assignor is the tenant pursuant to that one certain Lease Agreement
entered into with. Donald Gregory and Vergeue Gregory and Heritage Development, Inc„ (the "Lessors")
effective as of October 4, 2007, as amended by First Amendment to Lease Agreement dated November
30, 2007 and as amended and reinstated by Reinstatement and Second Amendment to Lease Agreement
dated August , 2008 (the "Lease'); and
B. WHEREAS, Assignor desires to assign the Lease to Assignee and Assignee
desires to accept such assignment; and
C. WIJERFAS, upon written consent of the Lessors the Lease is assignable by
Assignor to Assignee; and
D. WHEREAS, Assignee is an entity afMiated with Assignor and the principals of
Assignor currently own all units in Kinseth CHA, L.L.C. which is the sole member of assignee; and
E. WHEREAS subject to the terms and conditions herein Lessors desire to consent
to the assignment;
Agreement
NOW, THEREFORE; in consideration of the premises, and the covenants and
agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of
which is .hereby acknowledged, Assignor and Assignee hereto agree as follows:
L Assignor hereby assigns to Assignee, effective as of the Effective Date, all of Assignor's
right, title and interest in, to and under the Lease. Assignor agrees to indemnify and hold Assignee
harmless from any and all claims, liabilities, obligations, losses, costs and expenses, accruing under the
Lease prior to the Effective Date.
2. Assignee hereby assumes all of the obligations and liabilities of Assignor under tlzc Lease
accruing on or atter the Effective Date_ Assignee agrees to indemnify and hold Assignor harmless from
any and all claims, liabilities, obligations, losses, costs and expenses, accruhrg under the Lease on or after
the Effective Date.
3_ Assignor agrees that in the event the principals of Assignor assign, transfer, or otherwise
convey a majority of units in Kinseth CHA, L.L.C_ (other than as a collateral assignment or pledge and
other than by transfer by gift, will or intestacy or other similar type of transfer or disposition to a Kinseth
family member) or additional members are admitted to Assignee which results in Kinseth CHA, L.L.C.
no longer owning a majority interest in Assignee, then Assignor shall remain liable for performance under
91579358
Exhibit A - Page 46
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
IN WTTPIESS WHEREOF, Assignor and Assignee have executed this Agreement the day and
year first above written.
KINSnTH HOSPITALITY COMPANY, ING
By; 4na'VF
Name,J V
Title: z . A
STATE OF IOWA
SS.
COUNTY OF JOHNSON
2MI AVENUE IIOTEL ASSOCIATLS, LLC
BT if,.� U-I�
Bruce Kinsetb, Manager
Th�was acknowledged before me on this � day of .2008 by, t ACO C�\mss
of Kinseth Hospitality Company, Inc.
Wlit ELDER
Iowa
IN WITNESS WHEREOF, I hereunto set my hand and official seal. Notarialin Seal -
Commlvbn M 733027027
1
My Commlrslon Expires
Notary Public -State of Iowa
STATE OF IOWA
SS,
COUNTY OF JOHNSON
This instrument was selmowledged before me on this day of 2008 by Bruce Kinseth, as
Manager of 25th Avenue hotel Associates, LLC.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
KAtR
Notarial
Seal 3eol -• bWa
Commission # 73�027�1��
My Commission Expkes �=.1-v
Exhibit A - Page 47
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
ACKNOWLEDGEMENT AND CONSENT
Donald Gregory and Vetgene Gregory and Heritage Development, Inc. (the "Lessors") hereby
acknowledge receipt of the above and foregoing Assignment and Assumption of Lease
Agreement made by KINSETH HOSPITALITY COMPANY, INC. and 25TH AVENUE HOTEL
ASSOCIATES, LLC, and consents to the assignment made herein.
Dated this day of .2008.
Donald Gregory
HERITAGE DEVELOPMENT, INC
By
Its
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
Vergene Gregory
This instrument was acknowledged before me on this — day of 2003 by
as I of Heritage Development, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
Notary Public -State of Iowa
STATE OF IOWA )
SS.
COUNTY OF JOHNSON )
This instrument was acknowledged before me on this _day of , 2008 by Donald
Gregoryand Vergetle Gregory, husband and wife,
IN WITNESS WHEREOF, I hereunto set my band and official seal.
Notary Public -State of Iowa
Exhibit A - Page 48
E -FILED 2015 FEB 05 59 AM JOHNSON - CLERK OF DISTRICT COURT
�
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Iry � I f•
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Z 5 GORALVILLE, IA ants mc■ ARCHITECs
O 1{�ml� M;41V
m�.[dWRviWt?n
Exhibit A - Page 49
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
ri
Ti
j'
Hingeth Hotel Corporation
PAYARS AT
FMM10KMWOFON"
113N4
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a Quails hr & cirelu
Norske'xl,,iIi 87837
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'F��t�11E�Mo861aflsrm.
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3I0426.8fi1101".;
DATE
AMOUNT
i I N
I�
06/14/2008
- e
PAY
3a* .+20.000.00*-]
i o
t.
� tH6
, ,'•::Sy,�q, SAORseAA Doulie ead bb aoH+••
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1Nd1 IYkA ova.
Ceseliille. 2A 92241
M
VOID AFTER 180 DAYS
I
u' 1 i 39946• is 1O4900048i: i L0 2636691P
'See Other Side For Opening Instructions`
Kinseth Hotel Corporation (80)(08/14/2008)
2 QuailCreek Circle
North Liberty, IA 52317
HERITAGE DEVELOPMENT INC
1001 25th Ave.
Coralville, IA 52241
I
-- J
i Hotel Corporatton
heV205 NEx1anRLDPMERTJHC
sa/14/2008
Co Reterenoe nate AeoDnt Co Reference Date
-I BO uinscth Hospitality Corp.
e0 OD -000108 08/01/2008 10,000.ns
_JI{
D
I
113994 L
♦ 11390A
.nT tr to Reference Dote AaVX1at
r
i_
i
�7 fo
total remittances 20,000.00 I ' q
!� 3
Exhibit A - Page 50
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
STATE OF IOWA )
) SS.
COUNTY OF 7OI-WSON ) �FF�4�
This imtrnment was aclgwwledged beforo me on this - f day of ; 200g
by Donald CmSory and Vergene Gregory, husband and wife.
IN WITNESS wHEXEOP, I hereunto set my humid and official scal.
Notary pc c -Stale Of 10w1 �
(00581847.DOC)
(00581847 -DOC)
(0058{ 847.D0C)$1565491
Exhibit A - Page 51
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
0 COPY
REINSTATEMENT AND SECOND AMENDMENT TO
LEASE AGREEMENT
This Reinstatement and Second Amendment to Lease Agreement (this "Second Amendment") is
entered into as of August , 2008 ("Amendment Date), by and between IQNSBTH HOSPITALITY
COMPANY, INC-, ("Lessee") and Donald Gregory and Vergene Gregory and Heritage Development,
Inc. (collectively "Lessors").
A. Lessors and Lessee entered into that certain Lease Agreement with an Effective Date as
of October 4, 2007, as modified by First Amendment to Lease Agreement entered into on November 30
2007, in connection with the ground lease of certain real estate at the intersection of 25i' Avenue and 10�
Street in Coralville, Iowa, more particularly described on Exhibit A to the Lease Agreement (collectively
the "Lease").
B. Lessee terminated the Lease as of March 27, 2008, in accordance with its terms.
C. Subject to the terms and conditions contained herein, Lessors and Lessee wish to reinstate
and further amend the terms of the Lease in order to reflect the amended agreement of Lessor and Lessee
with respect to certain matters contained therein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and
agreements of the parties set forth below, together with other good and valuable consideration received by
each of the parties, the receipt and sufficiency of which are hereby aelmowledged by each of the parties,
the parties do hereby covenant and agree as follows:
L Reinstatement. Upon full execution of this Second Amendment, the Lease shall be
reinstated. The reinstated Lease shall incorporate the terms and conditions of this Second Amendment,
which modify and amend certain terns and conditions of the Lease.
2, Definitions. Capitalized terms that are used but not defined in this Second Amendment
shall have the meanings ascribed thereto in the Lease.
3. Additional Earnest Money. Contemporaneously with the mutual execution of this
Second Amendment, Lessee shall deposit $20,000 in additional Earnest Money with Lessors' attorney,
which shall be non-refundable, but shall be credited first towards the cash Security Deposit and the
remainder towards Rental.
4. Sc)neduled Commencement Date. Section 2 is modified such that the "Scheduled
Commencement Date" shall be April 1, 2010.
S. Lessee's Contingencies. Section 6 of the Lease is modified so that the Contingency Date
shall be November 1, 2008. Section 6 shall be further modified to remove contingencies D, F, H, K, N,
and W. All contingencies not so removed shall remain. Lessee's obligation to lease the Leased Premises
shall also be contingent upon Lessee finalizing a new site plan for the Leased Premises, which shall be
acceptable to Lessee in its sole discretion and all necessary approvals of the same by the City of
Coralville ("City Approval Contingency"). Lessee shall have until November 1, 2008 to satisfy the City
Approval Contingency. If the City Approval Contingency cannot be satisfied or resolved by November 1,
t 00581847.DOC )# 1565491
Exhibit A - Page 52
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
2008 Lessee can cancel this Lease and have no further obligation to Lessors, and Twelve Thousand Five
Hundred Dollars ($12,500.00) of the Earnest Money shall promptly be returned to Lessee as provided in
Section 6 of the Lease.
6. Evidence of Title and Title Insurance. Lessee shall obtain and provide a copy to Lessors,
within twenty-one (21) days alter this Second Amendment is signed by Lessors, its title commitment as
set forth in Section 9 0£ the Lease. Further, Lessee shall have ten (10) days after receipt of the
commitment, to object, in writing, to any condition of title not acceptable to Lessee.
if any objection is made. Lessors shall have twenty (20) days in which to exercise their
best efforts to correct such condition. If the condition of title cannot be corrected within such twenty (20)
day period, despite Lessors' best efforts, Lessee may, at its option:
A. Declare this Lease null and void, in which case the refundable Earnest Money
shall promptly be returned to Lessee, or
B. Elect to accept such title as Lessors are able to convey and proceed to close the
transaction without a reduction of the purchase price.
If Lessee makes no objection to the condition of the title within the ten (10) day period,
Lessee shall .have waived the right to object and the condition of title shall be deemed accepted by Lessee.
T,essee shall pay the costs associated with the commitment and the standard leasehold
owner's title insurance policy. Lessee shall pay all costs associated with any leasehold lender's policy.
Lessee shall also pay for such endorsements and affirmative coverages as may be required by Lessee.
7. Option to Purchase. The purchase price for the option to purchase set out in paragraph
26(B) of the Lease shall be changed to One Million Two Hundred and Fifty Thousand Dollars
($1,250,000).
8. Ratification. Except as expressly provided in this Amendment, all of the terms and
provisions of the Agreement are hereby reinstated, ratified, confirmed and continued in full force and
effect.
9. Countemarts/Fax Signatures. This Amendment may be executed in counterparts, in
which case all such counterparts taken together shall constitute one and the same instrument which is
binding upon the parties hereto, notwithstanding that all of the parties are not signatories to the original or
the same counterpart. The parties hereto agree to accept facsimile signatures to this Amendment the same
as an original signature.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first
set forth above.
LESSORS:
Donald Gregory
Vergene Gregory
(00581847.130C)
LESSEE:
KINSETH HOSPITALITY COMPANY, INC.
By: 6n��
Name: tit, -ea t.A4.PN
Title: ✓- t
Exhibit A - Page 53
E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
REINSTATEMENT AND SEQ CHAPTER 1h W 1 SECOND AMENDMENT TO
LEASE AGREEMENT
This Reinstatement and Second Am9ndment to Lease Agreement (this "Second
Amendment") is entered into as of August LM 2008 ("Amendment Date"), by and between
KINSETH HOSPITALITY COMPANY, INC., ("Lessee") and Donald Gregory and Vergene
Gregory and Heritage Development, Inc. (collectively "Lessors").
RECITALS
A. Lessors and Lessee entered into that certain Lease Agreement with an
Effective Date as of October 4, 2007, as modified by First Amendment to Lease Agreement
entered into on November 30, 2007, in connection with the ground lease of certain real
estate at the intersection of 25th Avenue and 10th Street in Coralvilte, Iowa, more
particularly described on Exhibit A to the Lease Agreement (collectively the "Lease").
B. Lessee terminated the Lease as of March 27, 2008, in accordance with its
terms.
C. Subject to the terms and conditions contained herein, Lessors and Lessee wish
to reinstate and further amend the terms of the Lease in order to reflect the amended
agreement of Lessor and Lessee with respect to certain matters contained therein.
AGREEMENT
NOW, nIEREFORE, in consideration of the foregoing premises, and the covenants
and agreements of the patties set forth below, together with other good and valuable
consideration received by each of the parties, the receipt and sufficiency of which are hereby
acknowledged by each of the parties, the parties do hereby covenant and agree as follows:
Reinstatement. Upon full execution of this Second Amendment, the Lease
shall be reinstated. The reinstated Lease shall incorporate the terms and conditions of this
Second Amendment, which modify and amend certain terms and conditions of the Lease.
Definitions. Capitalized terms that are used but not defined in this Second
Amendment shall have the meanings ascribed thereto in the Lease.
Additional Eamest Monev. Contemporaneously with the mutual execution of
this Second Amendment, Lessee shall deposit $20,000 in additional Earnest Money with
Lessors' attorney, which shall be non-refundable, but shall be credited first towards the cash
Security Deposit and the remainder towards Rental.
Scheduled Commencement Date. Section 2 is modified such that the
"Scheduled Commencement Date" shall be April 1, 2010,
Lessee's Contin encies. Section 6 of the Lease is modified so that the
Contingency Date shall be November 1, 2008. Section 6 shall be .further modified to remove
contingencies D, F, H, K, N, and W. All contingencies not so removed shall remain.
Lessee's obligatioa to lcasc the Leased Premises shall also be contingent upon Lessee
finalizing a new site plan for the Leased Premises, which shall be acceptable to Lessee in its
sole discretion and all necessary approvals of the same by the City of Coralville ("City
Approval Contingency"). Lessee shall have until November 1, 200$ to satisfy the City
Approval Contingency, if the City Approval Contingency cannot be satisfied or resolved by
Exhibit A - Page 54
---- E -FILED -2015 FEH'05gaj0QQ CC€RK O DISTRICT COURT' — – -----
THIRD AMENDMENT TO
LEASE AGREEMENT
This Third Amendment to Lease Agreement (this "Third Amcndment'l is entered into as of
Octobera'�' , 2008 ("Amendment Date"), by and between 25th Avenue Hotel Associates, LLC,
("Lessee'] and Donald Gregory and Vergene Gregory and Heritage Development, Inc. (collectively
"Lessors"),
RECITALS
A. Lessors and Kinseth Hospitality Company, Inc. entered into that certain Lease Agreement
with an Effective Date as of October 4, 2007, as modified by First Amendment to Lease Agreement
entered into on November 30, 2007, and Reinstatement and Second Amendment to Lease Agreement
entered into on August 15, 2008, all in connection with the ground lease of certain real estate at the
intersection of 25" Avenue and 106 Street in Coralville, Iowa, more particularly described on Exhibit A
to the Lease Agreement (collectively the "Lease").
B. Kinseth Hospitality Company, Inc. assigned to Lessee all right, title and interest in, to and
under the Lease pursuant to Assignment and Assumption of Lease Agreement entered into on August 15,
2008.
C. Subject to the terms and conditions contained herein, Lessors and Lessee wish to further
amend the terms of the Lease in order to reflect the amended agreement of Lessor and Lessee with respect
to certain matters contained therein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and
agreements of the parties set forth below, together with other good and valuable consideration
received by each of the parties, the receipt and sufficiency of which are hereby acknowledged by
each of the parties, the parties do hereby covenant and agree as follows:
1. Definitions . Capitalized terms that are used but not defined in this Third Amendment
shall have the meanings ascribed thereto in the Lease.
2. Leased Premises. Exhibit A attached hereto is hereby substituted in place of the current
Exhibit A to the Lease.
3. Evidence of Title and Title Insurance. Lessee shall obtain and provide a copy to Lessors,
by October 15, 2008, its title commitment as set forth in Section 9 of the Lease. Further, Lessee shall
have until October 22, 2008, to object, in writing, to any condition of title not acceptable to Lessee.
If any objection is made, Lessors shall have until October 30, 2008 in which to exercise
their best efforts to correct such condition. If the condition of title cannot be corrected by October 30,
2008 despite Lessors' best efforts, Lessee may, at its option:
A. Declare this Lease null and void, in which ease the refundable Earnest Money
shall promptly be returned to Lessee, or
B. Elect to accept such title as Lessors are able to convey and proceed to close the
transaction without a reduction of the purchase price.
#1599194
Exhibit A - Page 55
" ---E-PILED 2105'FEB 05-9759-AFJ JOHNSON CLERK OF DISTRICT COURT- - --
If Lessee makes no objection to the condition of the title on or prior to October 22, 2008,
Lessee shall have waived the right to object and the condition of title shall be deemed accepted by Lessee.
Lessee shall pay the costs associated with the commitment and the standard leasehold
owner's title insurance policy. Lessee shall pay all costs associated with any leasehold lender's policy,
Lessee shall also pay for such endorsements and affirmative coverages as may be required by Lessee.
4. Ratification. Except as expressly provided in this Third Amendment, all of the terms and
provisions of the Lease are hereby reinstated, ratified, confirmed and continued in full force and effect.
5. Counterparts/Fax Signatures. This Third Amendment may be executed in counterparts,
in which case all such counterparts taken together shall constitute one and the same instrument which is
binding upon the parties hereto, notwithstanding that all of the parties are not signatories to the original or
the same counterpart. The parties hereto agree to accept facsimile signatures to this Third Amendment
the same as an original signature.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first
set forth above.
:H A EDL'VELOM
By _
Its
LESSEE:
2311i Avenaej-loicl Associates; LL -C"
Bruce A. Kinseth, Manger
STATE OF IOWA )
)" SS.
COUNTY OF JOHNSON )
4Vv
This instrument was acknowledged before me on this a _�dny of October, 2008 by Bmce A. Kinseth, Manager of
25th Avenue Hotel Associates, LLC.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
STATE OF IOWA
KATHI EIDER
Notarial seal -Iowa
Commission # 73027
My commission Esasbs.st �3fl40
Exhibit A - Page 56
o: 2)
Prepared by and after
recording return to:
Doc ID: 021348020002 TVPe: GEN
Ascarded: 12/31/2008 at 03:26;41 PI1
Fee Amt: 51].00 Paca 1 of 2
Johnson Countv Iowa
KIM Palntsr County Peocrder
EK4377 P-548.549
Ivey
Michael J. Pugh One South Gilbert Street (319)486-1511
Bradley & RIley PC Iowa City, IA 52240 FAX (319)358-5560
Address tax statement DVG Investments, LLC, c/o Lynn Snyder, 629 Pine Ridge Drive, Conalvide, IA 52241
QUIT CLAIM DEED
For the consideration of One Dollar(s) and other valuable consideration, Donald and
Vergene Gregory, husband and wife, do hereby Quit Claim to DVG Investments, LLC, an Iowa
limited liability company, all of their right, title, interest, estate, claim and demand in the following
described real estate in Johnson County, Iowa:
See attached Exhibit "A".
This deed is given without any additional consideration and is, therefore, exempt from
real estate transfer tax pursuant to Iowa Code Section 428A.2(21)
The real estate is conveyed subject to the existing leasehold estate of 25th Avenue Hotel
Associates, LLC.
Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive
share in and to the real estate.
Words and phrases herein, including acknowledgment hereof, shall be construed as In
the singular or plural number, and as masculine or feminine gender, according to the context.
Dated: December 31, 2008
Donald Gregory, Grantor
Verge Gregory, Grant O
STATE OF IOWA, JOHNSON COUNTY) as:
This instrument was acknowledged before me on thisday of December, 2008 by
Donald Gregory and Vergene Gregory, husband and wife.
NotaW,bublic in and for Id State_,_ -
1L.
Exhibit B
Hook 4377, Pace 548, File Number
(Page 2 0£ 2) E -FILED 2015 FEB 05 9:59 AM JOHNSON - CLERK OF DISTRICT COURT
Exhibit "A"
Legal Description
That portion of Lot 6, Block 1, Heritage Estates Part 1, according to the plat
thereof recorded in Book 17, Page 47, Plat Records of Johnson County, Iowa,
and of Lots E, F and G, a subdivision of Lots 4 and 5, Block 1, Heritage Estates
Part 1, according to the plat thereof recorded in Book 21, Page 39, Plat Records
of Johnson County, Iowa, and of the Southeast Quarter of the Southeast Quarter
of Section 36, Township 80 North Range 7 West of the 5th P.M., more
particularly shown and described as Auditor's Parcel 2008089 on Plat of Survey
recorded in Book 53, Page 195, Plat Records of Johnson County, Iowa.
0069395912/312008 1
Book 9377, Page 598, File N=iiber
E -FILED 2015 MAR 02 3:10 PM JOHNSON - CLERK OF DISTRICT COURT
IN THE IOWA DISTRICT COURT FOR
DVG INVESTMENTS, LLC,
Plaintiff,
V.
25TH AVENUE HOTEL ASSOCIATES,
LLC; KINSETH HOSPITALITY COMPANY,
INC.,
Defendants.
Case No. LACV077070
DEFENDANTS' ANSWER AND
AFFIRMATIVE DEFENSES
COME NOW Defendants 25th Avenue Hotel Associates, LLC and Kinseth Hospitality
Company, Inc. and as their Answer to Plaintiff's Petition state:
THE PARTIES
1. Defendants deny for lack of information Paragraph 1 of Plaintiff's Petition.
2. Defendants admit Paragraph 2 of Plaintiff's Petition.
3. Defendants admit Paragraph 3 of Plaintiff's Petition.
FACTUAL BACKGROUND
4. Defendants incorporate by reference their answers to Paragraph 1-3.
5. Defendants admit that in September 2007, a Lease Agreement was entered into by
Lessee "Kinseth Hospitality Company, Inc. or its approved Assign" and Lessors Donald Gregory
and Vergene Gregory and Heritage Development, Inc. Defendants admit that the Lease
Agreement was later modified by the First Amendment to Lease Agreement dated November 30,
2007, by the Reinstatement and Second Amendment to Lease Agreement dated August 15, 2008,
and by the Third Amendment to Lease Agreement dated October 24, 2008. Defendants also
#2569557
E -FILED 2015 MAR 02 3:10 PM JOHNSON - CLERK OF DISTRICT COURT
affirmatively state that the Lease Agreement was amended by the Assignment and Assumption
of Lease Agreement dated August 15, 2008. Defendants deny the remaining allegations of
Paragraph 5.
6. Defendants admit the location of the real estate but deny that it was leased to
Kinseth and affirmatively state that it was leased to 25th Avenue Hotel Associates, LLC.
7. Defendants admit that Donald and Vergene Gregory quit claimed their interests in
the property to DVG Investments, LLC. Defendant affirmatively state that the Quit Claim Deed
by which the real estate was conveyed to DVG Investments, LLC specifically states: "The Real
Estate is conveyed subject to the existing lease hold estate of 25th Avenue Hotel Associates,
LLC."
8. Defendants deny Paragraph 8 of Plaintiffs Petition.
COUNT I: BREACH OF CONTRACT (WRITTEN)
9. Defendants incorporate by reference their answers to Paragraphs 1-8.
10. Defendants deny Paragraph 10 of Plaintiffs Petition.
11. Defendants deny Paragraph 11 of Plaintiff s Petition.
12. Defendants deny Paragraph 12 of Plaintiffs Petition.
13. Defendants deny Paragraph 13 of Plaintiff s Petition.
14. Defendants deny Paragraph 14 of Plaintiff's Petition.
15. Defendants admit Paragraph 15 of Plaintiff's Petition.
16. Defendants deny Paragraph 16 of Plaintiffs Petition.
AFFIRMATIVE DEFENSES
I. Plaintiff has failed to state a claim on which relief can be granted.
2. Plaintiff has failed to mitigate its damages, if any.
E -FILED 2015 MAR 02 3:10 PM JOHNSON - CLERK OF DISTRICT COURT
3. Kinseth Hospitality Company, Inc. is not a proper party to this lawsuit.
4. Plaintiff s claims are barred by the doctrines of waiver and estoppel.
WHEREFORE, Defendants request that the Court dismiss Plaintiff's lawsuit, award
reasonable attorney fees to Counsel for Defendants, and grant such further relief that the Court
deems appropriate.
Copies to:
Adam S. Tarr
Pugh, Hagan, Prahm, PLC
1100 Sixth Street, Suite 102
Coralville, IA 52241
Phone: 319-351-2028
E-mail: atarraamughha agan.comcom
ATTORNEY FOR PLAINTIFF
Deborah M. Tharnish AT0007858
Sarah K. Franklin AT0009630
Davis Brown Law Firm
215 10th Street, Suite 1300
Des Moines, IA 50309
Phone: 515-288-2500
E-mail: DebThamish(a)davisbrownlaw.com
ATTORNEY FOR DEFENDANTS
PROOF OF SERVICE
The undersigned certifies that the foregoing instrument was served
upon all parties to the above cause to each of the attorneys of record
herein at their respective addresses disclosed on the pleadings on
March 2 201 by:
❑ U.S. Mail ❑ FAX
❑ Rand Delivered ❑ Overnight Courier
❑ Federal Express ® Other: ECF
Signature:
Marian Karr , 4f(7)
From: The Broken Spoke <the_broken_spoke@yahoo.com>
Sent: Thursday, February 26,'2015 11:24 AM
To: Susan Mims; Matt Hayek; Terry Dickens; Kingsley Botchway; Rick Dobyns; Michelle Payne;
Jim Throgmorton; Council
Subject: Fw: 600 block of South Dubuque Street
Hello..
I am resending this email since I have not gotten a response from any one of you. Councilor Mims said she
would get back to me last week, but did not. I appreciate your time & concern with this important matter.
Thank you...
Michael Chamberlain
The Broken Spoke
602 South Dubuque Street
Iowa City, Iowa 52240
(319) 338-8900 www.thebrokenspoke.com
On Saturday, February 14, 2015 4:01 PM, The Broken Spoke <the broken spoket?o yahoo.com> wrote:
Councilor Mims:
At Monday(February 9th) night's City Council meeting you stated the following in regards to your decision to
vote against designating historic status to the cottages: "I think that the benefit to the community by not giving
historic preservation and allowing the property owner to do as he pleases is of higher benefit to the community."
I would like you to elaborate on your reasoning for me. Specifically, I would like to know what this "higher
benefit" is that you see in their destruction. This destruction will more than likely lead the way to the rest of this
thriving block being torn down, only to be replaced with more overpriced commercial space(if any at all) that
will remain empty for years to come. At least ten Iowa City small businesses will be greatly disrupted and
displaced or forced to close due to this "higher benefit" of which you state. I would wager that each of us who
owns a business on this block and all of our customers would certainly disagree with you that your decision has
a higher benefit to the community.
Please explain your reasoning with me so I can share it with my small business neighbors and our customers
who don't understand the basis for your decision.
I would also love to hear the thoughts from you other council members(especially you, Michelle Payne, Terry
Dickens, and Mayor Hayek) on the inevitable destruction of this thriving block & how you think it will affect
the Iowa City community.
Thank you kindly...
Michael Chamberlain
The Broken Spoke
602 South Dubuque Street
Iowa City, Iowa 52240
(319) 338-8900 www.thebrokenspoke.com
0.00
IOWA CITY
AREA CHAMBER
�OF COMMERCE
February 26, 2015 ��
The Honorable Mayors Hayek, Lundell, and Nielsen
and other Coralville, Iowa City, and North Liberty City Council members,
Dear Mayors and City Councilors,
We write to convey our support for the adoption of a mutually -agreeable, documented
economic development communication protocol among our communities. Our area's
economic prosperity is predicated on job growth and investment, for which we will be
best positioned by avoiding competition among municipalities.
Our local economy is poised for expansion, with exponential population growth in North
Liberty, private sector and university research park investment in Coralville, and the
Riverfront Crossings development in Iowa City. We encourage you to build consensus
on the most effective way to communicate to fully harness the potential of these and
other opportunities.
We appreciate your leadership and our strong working relationship and welcome
suggestions for ways in which we can assist.
With warm regards,
,7L4trl-k• —
Scott Fisher, Boar Chair
V
01
Nancy Que tr
'dent & CEO
325 E. Washington
Suite 100
Iowa City, IA 52240
Telephone: (319) 337-9637
Fax: (319) 338-9958
www.iowacityarea.com