Dubuque council approves Port hotel amendment, water projects and contract awards

DUBUQUE, Iowa — The Dubuque City Council on July 6 approved a package of development and infrastructure measures, including a second amendment to a development agreement that will allow Kinseth Hospitality to build a single SpringHill Suites by Marriott in the Port of Dubuque and several water-system projects intended to replace lead pipes.

The council unanimously (7-0) approved the Kinseth amendment after city staff described terms that include the developer’s purchase of approximately 1.25 acres of a 12.65-acre city parcel at $160,000 per acre (about $200,000, subject to final plat), construction of an approximately 90-room SpringHill Suites with a total capital investment of about $18 million, a requirement that construction begin by Sept. 1, 2026 and a substantial completion deadline of Feb. 28, 2028. The amendment also includes a 12-year tax-increment financing arrangement paid from incremental property taxes generated by the project and contains financial incentives and timing-related penalties if the certificate of occupancy is not issued on schedule.

Ben Kinseth, representing Kinseth Hospitality, told the council rising construction and foundation costs forced the company to scale the project to one hotel. “We had to make the decision to come back to the city and propose something that we could get done,” he said, describing the financing and geotechnical challenges that produced higher foundation costs.

Jill Connors, the city’s economic development director, told the council staff supports the amendment as a way to retain the developer’s $18 million investment and add hotel capacity to support the Grand River Center and other nearby projects. City staff noted the Port of Dubuque has design-review standards and that subsequent building permits and design approvals remain part of the process.

Votes at a glance

- Kinseth Hospitality, second amendment (SpringHill Suites, Port of Dubuque): motion to receive and file and adopt the resolution passed 7-0.

- Assignment of a development agreement (Groen/Groenen Development to 5th and Main LLC): council voted to set public hearings and later adopt the resolution; recorded outcome 6 ayes, 1 abstention.

- Well No. 7 rehabilitation, Phase 3 (estimated construction cost $80,000): council adopted plan/specs; funding subject to FY27 first budget amendment; vote 7-0.

- Issuance of not-to-exceed $50,000 in water revenue capital planning/design loan notes (SRF program) for lead water-main replacement: motion to institute proceedings and hold required hearings passed 7-0.

- Private lead service line replacement pilot, Phase 2 — construction contract award: recommended award to JQ Construction of Waterloo for $2,230,773 (reported 32.8% below estimate); council approved the award (7-0).

Council members and staff stressed the connection between the hotel project and broader local investment, including the University of Dubuque medical school, museum projects and other recent construction that staff said is increasing demand for downtown and Port-area hotel rooms. Council discussion also covered geotechnical borings and the timing of when staff received detailed soil/foundation information from the developer.

On water projects, staff described steps to replace lead public mains on several streets and to fund engineering through planning/design loans that typically roll into construction loans in an SRF program. Water staff said the Phase 2 private service-line work was bid substantially lower than the estimate and that the city is working within loan-amount constraints to maximize completed work under the program.

The council also received the annual four-page Dollars & Cents brochure summarizing the FY27 budget and voted to receive and file it. The brochure notes no property tax rate increase for FY27, the city’s use of enterprise funds for utilities and comparative information about debt and bond ratings.

What’s next

The Kinseth amendment includes development milestones and deadlines tied to construction and certificates of occupancy; subsequent permitting and design approvals remain to be completed. The lead-main replacement program will proceed with required SRF hearings and with contract mobilization per the awarded Phase 2 contractor’s schedule.