Council approves emergency amendment to 5 Flags management contract to address liquor license issue

The City Council on Monday approved a short, targeted amendment to the 5 Flags Civic Center management agreement to address a liquor‑licensing issue identified by the Iowa Alcoholic Beverages Division. Assistant City Attorney Jason Lehman explained that Lamar‑style revenue shares in the management agreement had created a situation where the city’s share of alcohol receipts could be 10% or greater, which the state agency indicated would require the city be listed as an owner on the liquor license application. To avoid a months‑long reapplication delay for an imminent show, the amendment reduces the city’s share of alcohol revenue to 9.9 percent and places the money in escrow while both parties negotiate a comprehensive solution. Lehman said the statute permits adding late items to the council agenda if it is impractical to provide the usual 24‑hour notice; staff recited why short notice was necessary. City staff and the contract manager OVG told the council the change is intended as a temporary fix to allow events to proceed while a fuller contract amendment is developed. The council unanimously approved the amendment and staff said a more detailed amendment will return to the council within roughly 90 days. OVG and Grand River Center management participated in answering questions. Ryan Boniface, general manager, said the state raised the liquor license concern late in the application process and the amendment was needed to allow an August 8 event to proceed. Council members asked staff to bring back analysis of longer‑term options — including whether it is preferable for the city to be listed on a license — before approving any permanent contract change.