Dubuque council approves amended deal for 90-room SpringHill Suites at Port of Dubuque

The Dubuque City Council on July 6 approved a second amendment to the development agreement with Kinseth Hospitality Company that clears the way for construction of an approximately 90-room SpringHill Suites by Marriott near the Grand River Center.

City economic-development director Jill Connors told the council the amendment would allow the developer to purchase roughly 1.25 acres of a city-owned 12.65-acre site at $160,000 per acre (about $200,000 total, to be adjusted by final plan). The developer has estimated a total capital investment of about $18,000,000. Under the amendment, construction must begin by Sept. 1, 2026, and the project must be substantially completed by Feb. 28, 2028; if a certificate of occupancy is not issued by May 1, 2028, the developer must pay the city $50,000 per month unless the delay is caused by the city’s unreasonable refusal to issue the certificate.

Connors said the city will provide 12 years of tax-increment financing for the project in the form of 24 semiannual payments funded solely by incremental property taxes generated by the development. The agreement also includes a restrictive covenant prohibiting issuance of building permits for other hotels on the 12.65-acre site by anyone other than the developer or its affiliate until the hotel attains a certificate of occupancy or Dec. 31, 2027, whichever comes first. The developer will receive an option to purchase an additional approximately 1.25 acres at $400,000 per acre under specified terms.

Ben Kinseth of Kinseth Hospitality said the company revised its earlier plan for two hotels after reviewing updated geotechnical testing and bids. "It wasn't just the report itself, but it's upon getting actual bids coming in" that made rigid-inclusion foundations necessary and materially increased costs, Kinseth said, adding that the company had invested in design work and had bank financing commitments in hand. "We are right at the altar to get this deal done and really excited for us and Dubuque to get a new hotel built," he said.

City staff framed the amendment as a means to retain an $18 million capital investment and to add hotel capacity that supports the Grand River Center and other major local projects, including a new medical school and museum expansions. Council members asked about the timing of geotechnical reports and design review; city staff said environmental borings had been completed across the broader site and Kinseth notified the city after contractor bids indicated higher foundation costs.

The council voted 7-0 to receive and file the recommendation and adopt the resolution approving the amendment.