P.O. Box 1750
Item 1.01. Entry into a Material Definitive Agreement.
On February 5, 2007, Diamond Jo, LLC ("DJL") entered into the Port of Dubuque Public Parking Facility Development Agreement ("Development Agreement") with the City of Dubuque, Iowa ("City"). The Development Agreement provides for, among other things, the design, development, construction and financing of a public parking facility to be located adjacent to DJL's proposed casino development in the Port of Dubuque, City of Dubuque, for a total cost of approximately $23 million. It is anticipated that the City will award to a third party a construction contract to construct the parking facility no later than December 31, 2007. The parking facility will be owned by the City, open to the general public and consist of approximately 1,200 spaces. The Development Agreement requires that DJL construct its casino development to consist of not less than 140,000 square feet and at a cost of at least $45,000,000. The Development Agreement provides that the parking facility will be financed by an initial payment of not less than $6,350,000 by DJL to the City with the remainder of the cost being financed via tax increment finance bonds that will be issued by the City and paid off with the tax incremental revenue generated by the new DJL casino development. As part of the Development Agreement, DJL is required to enter into a minimum assessment agreement for its new casino development and to pay the operating costs of the parking facility, including the cost of operation, security, repair and maintenance. Additionally, DJL is obligated to pay to the City for the life of the parking facility an amount equal to $80 per parking space, per year (subject to adjustments based on increases in a stated consumer price index) which amount will be held in a sinking fund and used to satisfy the capital maintenance requirements for the parking facility. The Development Agreement also provides that DJL will enter into a maintenance service agreement with the City to provide operation, maintenance, security and other services for the parking facility.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PENINSULA GAMING, LLC
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Name: M. Brent Stevens
Title: Chief Executive Officer
DIAMOND JO, LLC
By: /s/ M. Brent Stevens
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Name: M. Brent Stevens
Title: Chief Executive Officer
PENINSULA GAMING CORP.
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Name: M. Brent Stevens
Title: Chief Executive Officer
Date: February 14, 2007
