HomeMy WebLinkAboutIOC Black Hawk County, Inc., Black Hawk County Gaming Assoc.-6/6/2005R.w -ht. 2-'° °
ADMISSION FEE ADMINISTRATION AND DEVELOPMENT
AGREEMENT
This ADMISSION FEE ADMINISTRATION AND DEVELOPMENT
AGREEMENT is made this to day
of ..„J oG.✓E- , 2005, by and among IOC
Black Hawk County, Inc., an Iowa Corporation ("IOC"), Black Hawk County Gaming
Association, an Iowa non-profit corporation ("BHCGA") and THE CITY OF WAILRLO0, a
municipal corporation of the State of Iowa (the "City").
WHEREAS, IOC and BHCGA have entered into an Amended and Restated
Operator's Contract dated November 9, 2004, a copy of which is attached as Exhibit A (the
"Operator's Contract"); and
WHEREAS, BHCGA and the City have entered into a Gaming Development
Agreement dated September 24, 2003, a copy of which is attached as Exhibit B (the
"Development Agreement"); and
WHEREAS, pursuant to 99F.10(3) of the Code of Iowa, the City is authorized to
adopt an ordinance providing for an admission fee of up to fifty cents ($.50) for each person
admitted to the casino;
WHEREAS, the parties intend that the City receive a development fee (the
"Development Fee") in lieu of the admission fee with the Development Fee calculated as a
percentage of the total adjusted gross receipts.
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. Upon the commencement of operations IOC shall pay a Development Fee
to the City equal to .5% of each week's adjusted gross receipts (as defined in Section 99 F.1(1)
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of the Iowa Code), On the third anniversary date of commencement of operations the
Development Fee shall be increased to I% of each week's adjusted gross receipts. The payment
shall be made weekly by noon on the Friday following the completion of each calendar week. In
addition, IOC shall pay the City one million dollars on the date of the issuance of a license by the
IRGC to the BHCGA and an additional payment on the third anniversary date equal to the
shortfall, if any, in total payments to the City had a 1% Development Fee been imposed at the
commencement of operations (when compared to the foregoing payment structure).
2. Paragraph1 of this Agreement is expressly conditioned upon no admission
fee being charged by the City as authorized by 99F.10(3) of the Iowa Code. The absence of such
an admission fee shall be a condition subsequent of IOC's obligations under paragraph 1 hereof.
3. In the event the current statutory limitation for admissions fees of $.50 per
patron is increased, the parties agree to renegotiate a replacement Development Fee which
equates to the new ceiling amount.
4. No Development Fee payable to the City under this agreement and no
portion of said contribution to Waterloo Development Corporation shall come from or detract
from contributions to BHCGA pursuant to the Operator's Contract.
5. IOC will cooperate in good faith with the City and Waterloo Development
Corporation and BHCGA to assist in financing the design, construction and operation of certain
improvements within the City, to be agreed upon by all parties. Upon the issuance of a gaming
license by the IRGC, IOC will make a one-time gift of one million dollars to Waterloo
Development Corporation for a project to be approved by BHCGA, Waterloo Development
Corporation and the City of Waterloo. This gift is a separate item from the Development Fee
referred to elsewhere herein.
6. In all other respects the parties hereto ratify and confirm the Operator's
Contract and Development Agreement.
7. This Agreement is expressly subject to approval by the Iowa Racing and
Gaming Commission.
IOC BLACK HAWK COUNTY, INC.
By
le2,1,7 O✓ .
BLACK HAWK COUNTY GAMING ASSOCIATION
By
CITY OF WATERLOO, IOWA
By�_C!frN2a�/�C/
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