Resolution Approving a Subordination Agreement for Downtown Rehabilitation Loan Program Loan #2-23 -1199 Central AvenueCity of Dubuque
City Council Meeting
Public Hearings # 02.
Copyrighted
June 3, 2024
ITEM TITLE: Resolution Approving a Subordination Agreement for Downtown
Rehabilitation Loan Program Loan #2-23 - 1199 Central Avenue
SUMMARY: Proof of publication on notice of public hearing to consider City Council
adopt the attached resolution approving a Subordination Agreement with
Virtual Velocity, LLC (Developer), Dubuque Initiatives, Michael and
Denise Erschen (Erschens), and the City of Dubuque, Iowa (City) for
interest in property located at 1199 Central Avenue, and City Manager
recommending approval.
RESOLUTION Approving a Subordination Agreement by and among
Virtual Velocity, LLC, Dubuque Initiatives, Michael and Denise Erschen,
and the City of Dubuque, Iowa for interest in property located at 1199
Central Avenue
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Subordination Agreement Supporting Documentation
Resolution Resolutions
THE C
DUj!BQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving a Subordination Agreement for Downtown
Rehabilitation Loan Program Loan #2-23 - 1199 Central Avenue
DATE: May 29, 2024
Dubuque
WAWca 914
ii
2007-2012.2013
2017*2019
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving a Subordination Agreement with Virtual Velocity, LLC
(Developer), Dubuque Initiatives, Michael and Denise Erschen (Erschens), and the City of
Dubuque, Iowa (City) for interest in property located at 1199 Central Avenue.
The city loan was subordinate to only one other lender, but two more lenders have been
brought into the project, so the city loan will now be subordinate to a total of three
lenders.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque
THE CITY OF
All -America My
nni K xvni , nz: a:u�ir,
DUB E
2007-2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: Resolution Approving a Subordination Agreement for Downtown
Rehabilitation Loan Program Loan #2-23 - 1199 Central Avenue
DATE: May 30, 2024
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
approving a Subordination Agreement with Virtual Velocity, LLC (Developer), Dubuque
Initiatives, Michael and Denise Erschen (Erschens), and the City of Dubuque, Iowa (City).
BACKGROUND
The City entered into a Grant Agreement with Virtual Velocity, LLC, dated October 3, 2022
for the rehabilitation of property located at 1199 Central Avenue (the Project). The Project
includes the rehabilitation of the historic fagade of the structure and the creation of 14 new
residential rental units. The Grant Agreement has since been amended to include a
$300,000 loan to be repaid over a five-year period at zero percent interest as well as 15
years of tax increment financing. The building at 1199 Central Avenue was used as
collateral on the loan with Virtual Velocity signing a mortgage in favor of the City. In the
event of default on the loan, the City would be repaid from any proceeds from the sale of
the building. The City currently holds the second secured position of repayment behind the
construction loan lender, New Silver Lending, LLC. New Silver Lending, LLC was the first
to issue a loan to the Project. After the City issued a loan to the Project, the Developer
received an additional $200,000 loan from Michael and Denise Erschen, giving them the
third secured position of repayment.
DISCUSSION
The Project, while near completion, has required additional capital to complete the
residential rental units in the building. While the internal mechanics, floors, windows, and
general buildout of the units are complete, the finishing cabinetry and other small finishes
still need to be completed.
The Developer reached out to Dubuque Initiatives, a local nonprofit, for a final loan to
complete the Project. Dubuque Initiatives agreed to loan Developer the remaining $300,000
to finish the residential rental units conditioned upon the City and other investors
subordinating their repayment positions to Dubuque Initiatives. Michael and Denise
Erschen subordinated their repayment position to Dubuque Initiatives but requested to
remain in the third repayment position, ahead of the City. The impact to the City is that in
the event of default on the Project, and the sale of the building is required to repay all
lenders of the Project, the City would now be fourth in line to receive repayment from the
sale of the collateral (the building). The first repayment position is the initial construction
loan lender, New Silver Lending, LLC. Under the attached Subordination Agreement, the
positions of repayment are as follows:
Repayment
Position
Party
Amount
1st
New Silver
$ 1,046,000.00
2nd
DI
$ 300,000.00
3rd
Erschens
$ 200,000.00
4th
city
$ 300,000.00
$ 1,846,000.00
An independent appraisal has valued the building at approximately $2 million dollars once
completed and approximately $3 million dollars once all units have been rented. Should the
Project default on its obligations to the lenders, and the building be sold, the first $1,046,000
of the sale proceeds would go to New Silver Lending, LLC. The next $300,000 of the sale
proceeds would go to Dubuque Initiatives. The following $200,000 of the sale proceeds
would be distributed to Michael and Denise Erschen. Finally, after the previous parties have
been repaid from proceeds of the sale of the building, the City would claim $300,000 to
recuperate funds loaned in Downtown Rehabilitation Loan Program Loan #2-23. Should
the project enter default on its obligations to the lenders, and the building be sold for less
than the outstanding debt obligations of $1,846,000, repayment would follow the same
prioritized schedule until the proceeds from the sale are liquidated. In this event, the City
would likely not receive repayment from the collateral on the loan.
RECOMMENDATION
I recommend, following the public hearing, the City Council adopt the attached resolution
approving the Subordination Agreement.
2
Prepared by and return to: Flint Drake, Drake Law Firm. PC, 300 Main St, Dubuque, Iowa 52001 (563) 582-2000
LOAN AND SUBORDINATION AGREEMENT
This Loan and Subordination Agreement is entered into this 2nd day of May, 2024,
between Virtual Velocity, LLC, a Pennsylvania limited liability company ("Borrower"], Lloyd
Singletary, III, member of Borrower ["Guarantor"), Dubuque Initiatives, an Iowa non-profit
entity ("DI" ), Michael and Denise Erschen ["Erschen") and the city of Dubuque, Iowa ("City"].
Recitals
A. Borrower is the owner of real estate locally known as 1199 Central Ave., Dubuque,
Iowa, as legally described on Exhibit A attached hereto and by this reference made
a part hereof [the "Real Estate"]-
B. Borrower is in the process of rehabilitating the Real Estate into residential
apartments [the "Project");
C. Guarantor is a member of Borrower,
D. New Silver Lending, LLC, a Delaware limited liability company, ["Primary Lender")
has provided a construction loan to Borrower for the Project in the amount of
$1,046,000.00, which loan is reflected in a Promissory Note dated on or about
the l7th day of May, 2024 [the "Primary Loan"). The Primary Loan is secured by a
Real Estate Mortgage, Assignment of Rents and Security Agreement recorded the
17th day of May, 2022 as Instrument No. 2022-6390 in the records of the
Dubuque County Recorder [the "Primary Mortgage" or "Primary Loan
Documents"];
E. Borrower intends to obtain from Capra Bank, an Iowa banking entity, a permanent
loan in the amount of $2,000,000.00, which loan will be used to pay off the
Primary Loan and the DI Loan (the "Capra Permanent Loan");
F. City has provided a loan to Borrower for the Project, which loan is in the amount
of $300,000.00 and is represented by a Promissory Note in such amount dated
the 3rd day of October, 2023 (the "City Loan"). The City Loan is secured by a Real
I I P i g, e
Estate Mortgage in the Real Estate recorded the 17th day of October, 2023 (the
"City Mortgage" or "City Loan Documents'
G. Erschen has provided a loan to Borrower for the Project, which loan is in the
amount of $200,000.00 and is represented by a Promissory Note in such
amount dated on or about the 4th day of April, 2024 [the "Erschen Loan"). The
Erschen Loan is secured by a Real Estate Mortgage in the Real Estate recorded the
4th day of April, 2024 (the "Erschen Mortgage" or "Erschen Loan Documents' ];
H. Borrower requires additional funds to complete the project and D1 has agreed,
subject to the terms and conditions herein, to loan to Borrower the SLIM of
$300,000.00 for such purpose (the "D1 Loan"]. The DI Loan will be secured by a
Real Estate Mortgage (the "DI Mortgage"].
1. The parties desire to set forth their agreement regarding the Loans and the
Project in writing;
THEREFORE, in consideration of the terms and conditions herein, the parties agree as
follows:
1. DI Loan and Terms; Advances.
DI agrees to make the DI Loan to Borrower in an amount up to $300,000.00. DI
advances shall accrue interest at the rate of 7% from the date of each advance.
Effective September 1, 2024 the then current balance ($300,000.00 plus accrued
interest] shall be amortized at 7% annual interest over thirty-six [36) months and
the first monthly payment shall be due October 1, 2024 and the same amount on
the first day of each month thereafter until all principal and interest shall be paid
in full. All principal and interest shall be due and payable in full on or before
August 31, 2027. Notwithstanding anything herein to the contrary, all unpaid
principal and interest on the DI Loan will be due and payable in full upon
finalization and closing of the Capra Permanent Loan.
Advances and Disbursements of the DI Loan shall be subject to the following
terms and conditions:
A. DI will provide an initial advance of $50,000.00 upon execution of this
Agreement by Borrower, Guarantor and D1. Before any additional advances
are provided on the DI Loan, Borrower shall (i) provide a binding
Commitment fetter with terms and conditions acceptable to D1, providing
for the Capra Loan, which terms shall include sufficient funds to pay all
SLIMS due to DI hereunder in full; and (ii) obtain the signatures of Erschen
and City to this Agreement;
2 1 Page
B. if any contractor or supplier related to the Project is owed more than
$25,000.00 as of the date of Borrower's request for any advance on the DI
Loan, after the first advance, Borrower shall provide a lien waiver from each
such contractor or supplier before the advance is disbursed;
C. After the first disbursement, each subsequent disbursement of the DI Loan
will be in increments of $100,000.00 except the last advance, which shall
be $50,000.00.After the first such advancement, subsequent advances
shall be made only after completion of two additional apartment units
within the Project for each advance. For avoidance of doubt, Borrower
must complete two new, additional units, and receive Certificates of
Occupancy for the two units, before an additional advancement (after the
first advancement) will be made.
2. Mortgage/ Subordination. The DI Loan shall be secured by a Real Estate Mortgage
executed by Borrower in favor of DI in the form attached hereto as Exhibit B.
City and Erschen hereby subordinate any security interest or claim as set forth in
the City Mortgage or the Erschen Mortgage to that of DI Linder the D1 Mortgage.
The Di Mortgage and all amendments, modifications, extensions and renewals
thereof shall unconditionally be and remain at all times a Tien or charge on the
Real Estate, prior and superior to the lien or charge of any and all documents
evidencing the City Loan or the Erschen Loan. City and Erschen intentionally and
unconditionally subordinate the lien or charge of any and all documents
evidencing the City Loan or the Erschen Loan in favor of the lien or charge upon
the [Zeal Estate in favor of DI, and understand that in reliance upon and in
consideration of this subordination, the DI Loan is being made and advanced and
would not be made or advance but for reliance upon this subordination. City and
Erschen acknowledge that DI would not make the D1 Loan without the
subordination agreement in this paragraph.
3. Guarantor.
Guarantor does hereby, in order to induce DI to enter into this Agreement,
unconditionally and irrevocably guarantee Borrower's faithful and full performance
of all Loan Agreement and DI Mortgage conditions. Guarantor unconditionally
and irrevocably promises to pay D1 all sums due under this Agreement and the
Mortgage plus collection costs, including reasonable attorneys' fees, if Borrower
defaults or otherwise fails to perform any of Borrower's obligations under this
3 1 Pisa
Agreement or the D Mortgage. Guarantor's obligations are joint and several and
are independent of Borrower's obligations. A separate action may be brought
against Guarantor immediately and without any demand or notice regardless of
whether or not an action is brought against Borrower or whether Borrower is
joined in such action.
4. Events of Default and Remedies.
The occurrence of any one or more of the following events shall constitute an
Event of Default hereunder:
A. Borrower shall fail to make when due, whether by acceleration or otherwise,
any payment of principal or interest on the DI Loan, which failure remains
uncured for ten (101 days after receipt of a late payment notice from DI; or
B. Any representation or warranty made by or on behalf of Borrower or
Guarantor in this Agreement or other DI Loan documents shall prove to
have been false or misleading in any material respect on the date as of
which the facts set forth are stated or certified; or
C. Borrower or Guarantor fails to comply with any other covenant or
obligation of Borrower or Guarantor hereunder and such failure remains
uncured for twenty (20) days after receipt of a Notice of Default from D1
stating the terms of the default and actions required to cure such default;
or
D. Any other creditor or contractor related to the Project takes any collection
action related to the Project (including, but not limited to, filing of a
mechanic's lien or instituting an action for unpaid funds]; or
E. Work on the Project shall be substantially abandoned or unreasonably
delayed or discontinued for a period of thirty (301 days;
If any Event of Default described above shall occur with respect to Borrower or
Guarantor, the D1 Loan shall automatically become immediately due and
payable without presentment, demand, protest or other further notice of any
kind, all of which are hereby expressly waived by Borrower and Guarantor.
Upon the occurrence of any such Event of Default, D1 may exercise all rights
and remedies under this Agreement and the DI Mortgage and all rights and
remedies provided by law and in equity, by statute or otherwise. No remedy
herein conferred upon D1 is intended to be exclusive of any other right and
remedy.
4 Paor ge
In addition to the remedies set forth above, in the Event of a Default, DI small
be entitled to default interest at the rate of 9% per annum from the date of
the Event of Default and shall be entitled to recover all reasonable attorneys'
fees and other costs incurred by DI due to such default.
5. Rei)resentations and Warranties of Borrower and Gtiaranto:
Borrower and Guarantor represent and warrant to DI as follows:
A. Borrower is a limited liability company duly formed and validly existing and in
current status under the laws of the State of Iowa and has all requisite power and
authority to own its properties and to carry on its business as now conducted, to
enter into this Agreement and the DI Mortgage to which it is a party and to
perform its obligations hereunder and thereunder. This Agreement and the DI
Mortgage have been duly authorized by all necessary action on the part of the
Borrower and when executed and delivered will be the legal and binding
obligations of the Borrower.
B. The execution and performance of this Agreement and the DI Mortgage will not
violate the Borrower's Operating Agreement, or any law applicable to Borrower and
will not violate or cause a default under or permit acceleration of any agreement
to which Borrower is a party or by which it or the Project is bound.
C. Borrower and Guarantor have disclosed to D1 all debts or obligations of each,
whether secured by the Project or otherwise and have not concealed any material
fact related to the Project or its financing,
6. Covenants of Borrower and Guarantor.
Borrower and Guarantor covenant and agree that, from and after the date of this
Agreement and the DI Mortgage and until all sums due hereunder have been paid
to D1, they shall:
A. Pay all premiums on all insurance policies in place with respect to the Project,
including builder's risk and casualty insurance sufficient to rebuild the Project;
B. File all tax returns and pay all taxes and charges due thereon when due,
C. Maintain the Project and work continuously towards completion of the Project;
D. Comply in all material respects with all government requirements, permits,
restrictions agreement and other encumbrances to which the Borrower or
Project may be subject;
E. Shall not, without DI's prior written permission, incur any indebtedness of any
kind except as referenced herein;
5 Page
F. Shall not create, incur; assume or suffer to exist any lien on or security interest
in the Project or the rights to Rents, except as referenced herein;
G. Shall pay all real estate taxes and assessments on or before the due date
thereof
7. Costs.
Borrower agrees to pay all costs incurred by DI in connection with the transaction
contemplated by this agreement, including attorneys' fees and recording costs, all
not to exceed $4,000.00.
8. Miscellaneous.
This Agreement is binding upon the parties hereto and their successors and
assigns and shall be governed by and construed under the laws of the state of
Iowa. Any action in any way related to this agreement shall be brought in the Iowa
District Court for Dubuque County only.
VIRTUALVEL CITY, LLC
B
Its
STATE OF IOWA ]
COUNTY OF DUBUQUE ] ss:
On this' 1� day of Mq U , 2024, before me, a Notary Public in and
for the State of Iowa, personally appeared Llo Sin JefCw�, to me personally known, who
being by me duly sworn did say that is the Managing Member of said limited liability
company, that no seal has been procured by the said limited liability company and that said
instrument was signed on behalf of said limited liability company by authority of its
managers and the said o w h Cy acknowledged the execution of said instrument to
be the voluntary act and deed of said limited liability company,,ryq it voluntarily executed.
ry Kblic in dfio for the State of Iowa
MEGAN OBERFOELL
" LLO Commission Number 98593
D L A SINGRY, , GUARANTOR
• My Commission Expires
June 06, 2026
6 Page
STATE OF IOWA }
COUNTY OF DUBUQUE ) ss:
On this 104-1' day of M ot � , 2024, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared LLOYD SINGLETARY, III to me
known to be the person named in and who executed the foregoing instrument, and
acknowledged that he executed the same as his voluntary act and dee
e� MEGAN OBERFOELL
Commission Number848593 Notary ublic i d for the State of Iowa
• M
y Commission Expires
June 06, 2026
DUBUQUE IN IATIVES
By:
Its President
STATE OF IOWA, COUNTY OF DUBUQUE
This record was acknowledged before me on Aa i3 ZoZ- , by
KEVIN LYNCH, as PRESIDENT, of DUBUQUE INITIATI S.
IAN C HATCH lyjy> f
Notarial Seal - Iowa
Commission Number 82744L220J26
Notar Public in and for the State of Iowa
My Commission Expires Nov 12, y
Michael Erschen
Denise Erschen
7 1 i>a€gL
STATE OF IOWA
COUNTY OF DUBUQUE ] ss:
On this 1U*" day of Mai �, 2024, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Michael Erschen and Denise Erschen,
to me known to be the persons named in and who executed the foregoing instrument, and
acknowledged that they executed the same as their voluntary act and feed.
*�, MEGAN OBERFOELL
z Commission Number 848593 Nota Public i a d for the State of Iowa
• My Commission Expires
� June 06, 2028
City of Dubuque, Iowa
By: Its
STATE OF IOWA ]
COUNTY OF DUBUQUE ) ss:
On this 6 day of JLInE , 2024, before me, a Notary Public in and
for the State of Iowa, personally appeared B-L,.J r' C ,vnn^, k , to me personally known, who
being by me duly sworn did say that is the � or of the City of DLIbuque,
Iowa and that said instrument was signed on behalf of said City by authority of its City
Council and the said (rluoc - acknowledged the execution of said instrument to
be the voluntary act and deed of said City, by it voluntarily executed.
ph'*5AL
% ADRIENNE N. 8REI1rFELDER
COMMINIon Number 828958
+cw� NyComm.UP. Oh'i/)-J,.
8 1 Page
Notary Public in and for the State of Iowa
Prepared by Jill Connors Economic Develo ment 1300 Main St. Dubuque, IA 52001 563 589-4393
Return to Adrienne N. Sreitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 169-24
APPROVING A SUBORDINATION AGREEMENT BY AND AMONG VIRTUAL
VELOCITY, LLC, DUBUQUE INITIATIVES, MICHAEL AND DENISE ERSCHEN, AND
THE CITY OF DUBUQUE, IOWA FOR INTEREST IN PROPERTY LOCATED AT 1199
CENTRAL AVENUE
WHEREAS, the City of Dubuque, Iowa, (City) and Virtual Velocity, LLC have
entered into a Grant Agreement (the Agreement) for the rehabilitation of 1199 Central
Avenue (the Project) legally described as follows:
The Northly 87 feet 1.2 inches of Out Lot 447 in the City of Dubuque, Iowa,
according to the United States Commissioners' Map thereof; locally known as 1199
Central Avenue
(the Property); and
WHEREAS, the Agreement includes the award of a Three Hundred Thousand
Dollars ($300,000.00) Downtown Rehabilitation Loan (the Loan) for the purpose of
stimulating reinvestment in the Greater Downtown Urban Renewal District; and
WHEREAS, the Project meets the requirements of the Loan; and
WHEREAS, as security for the Loan, Virtual Velocity, LLC previously granted to
City a mortgage on the Property (the City Mortgage); and
WHEREAS, the Dubuque Initiatives financing of the Project includes a mortgage
(the DI Mortgage) and requires that the City Mortgage be subordinate to the DI Mortgage
pursuant to a Subordination Agreement; and
WHEREAS, a public hearing was held on the proposed Subordination Agreement
was held on June 3, 2024 at 6:30 p.m.; and
WHEREAS, the City Council has tentatively determined that approval of the
Subordination Agreement is in the public interest of the City of Dubuque by Resolution
No. 169-24.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Subordination Agreement by and among Virtual Velocity, LLC,
Dubuque Initiatives, Michael and Denise Erschen, and the City of Dubuque, Iowa is
hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Subordination Agreement on behalf of the City of Dubuque and the City Clerk is
authorized and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Subordination Agreement as herein approved.
Passed, approved and adopted this 3rd day of June, 2024.
Bread-k Ca gh, Mayor
Attest:
_ 1. rz
Adrienne N. Breitfelder, City Clerk
STATE OF IOWA► SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
05/24/2024
and for which the charge is 96.60
,_
I
Subscribed to efore me, a Nola y Public in and for
Dubuque County, Iowa,
this 24th day of May, 2024
C -P
Notary P blic in and for Dubuque County, Iowa.
JANET K, PAPE
o p Commission Number 199659
z r
My Commission Expires
T +o -1 12/1112925
Ad text
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council
will conduct a public hearing on the 3rd day of June, 2024, at
6:30 p.m., in the Historic Federal Building, 350 W. 6th
Street, 2nd floor, Dubuque, Iowa, at which meeting the City
Council proposes to take action to approve a Subordination'
Agreement between the City of Dubuque, Iowa, Virtual Velocity,
LLC, Dubuque Initiatives, and Michael and Denise Erschen, a
copy of which is now on file at the Office of the City Clerk,
City Hall, 50 W 13th Street, Dubuque, Iowa, subordinating the
Citys mortgage securing its interest in the real estate
legally described as follows:
NLY 87' 1.2" OF N 3/5 OF CITY LOT 447; locally known as 1199
Central Avenue
At the meeting, the City Council will receive oral and
written comments from any resident or property owner of said
City to the above action. The official agenda will be posted
the Friday before the meeting and will contain public input
options. The City Council agenda can be accessed at
https://cityofdubuque.novusagenda.com/AgendaPublic/ or by
contacting the City Clerk's Office at 563-589-4100,
ctyclerk@cityofdubuque.org.
Written comments regarding the above public hearings may he
submitted to the City Clerk's Office via email at
ctyclerk@cityofdubuque.org or by mail to City Clerk's Office,
City Hall, 50 W. 13th St., Dubuque, IA 52001, before said
time of public hearing. At said time and place of public
hearings the City Council will receive any written comments.
Copies of supporting documents for the public hearings are
on file in the City Clerk's Office and may be viewed Monday
through Friday between 8:00 a.m. and 5:00 p.m.
Individuals with limited English proficiency, vision,
hearing, or speech impairments requiring special assistance
should contact the City Clerk's Office at (563) 589-4100, TDD
(563) 690-6678, ctyclerk@cityofdubuque.org as soon as
feasible. Deaf or hard -of -hearing individuals can use Relay
Iowa by dialing 711 or (800) 735-2942.
Published by order of the City Council given on the 20th day
of May, 2024.
Adrienne N. Breitfelder, City Clerk
RESOLUTION NO. 143-24
SETTING A PUBLIC HEARING FOR A SUBORDINATION AGREEMENT BY
AND AMONG VIRTUAL VELOCITY, LLC, DUBUQUE INITIATIVES, MICHAEL
AND DENISE ERSCHEN, AND THE CITY OF DUBUQUE, IOWA FOR INTEREST
IN PROPERTY LOCATED AT 1199 CENTRAL AVENUE
WHEREAS, the City of Dubuque, Iowa, (City) and Virtual
Velocity, LLC have entered into a Grant Agreement (the
Agreement) for the rehabilitation of 1199 Central Avenue (the
Project) legally described as follows:
NLY 87' 1.2" OF N 3/5 OF CITY LOT 447; locally known as 1199
Central Avenue
(the Property); and
WHEREAS, the Agreement includes the award of a $300,000
Downtown Rehabilitation Loan (the Loan) for the purpose of
stimulating reinvestment in the Greater Downtown Urban Renewal
District; and
WHEREAS, the Project meets the requirements of the Loan; and
WHEREAS, as security for the Loan, Virtual Velocity, LLC
previously granted to City a mortgage on the Property (the
City Mortgage); and
WHEREAS, the Dubuque Initiatives financing of the Project
includes a mortgage (the DI Mortgage) and requires that the
City Mortgage be subordinate to the DI Mortgage pursuant to a
Subordination Agreement; and
WHEREAS, the City Council has tentatively determined that
approval of the Subordination Agreement is in the public
interest of the City of Dubuque; and
WHEREAS, before said Subordination Agreement may be
approved, Iowa Code 364.7 requires that the City Clerk publish
a notice of the proposal and of the time and place of the
meeting at which the City Council proposes to take action
thereon and at which meeting the City Council shall receive
oral and/or written objections from any resident or property
owner of said City to such proposed action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. "The City Clerk is hereby authorized and directed
to cause a notice to be published as prescribed by Iowa Code
Section 364.7 of a public hearing on the City's intent to
subordinate a mortgage securing interest in real estate, to be
held on the 3rd day of June, 2024, at 6:30 p.m. The official
agenda will be posted on Friday, May 31, 2024 and will contain
listening, viewing, and public input options. The City Council
agenda can be accessed at
https://cityofdubuque.novusagenda.com/AgendaPublic/ or by
contacting the City Clerk's Office at 563-589-4100,
ctyclerk(rLPcityofdubuque.org.
Section 2. "The City Council will meet at said time and
place for the purpose of taking action on the matter of
subordinating a mortgage securing interest in real estate.
Section 3. "The Clerk is hereby directed to cause at least
one publication to be made of a notice of said meeting, in a
newspaper, printed wholly in the English language, published
at least once weekly, and having general circulation in said
City, said publication to be not less than four days nor more
than twenty days before the date of said meeting on the
subordination of a mortgage securing interest in real estate.
Section 4. "That the notice of the proposed action to
subordinate shall be in substantially the form attached
hereto.
Passed, approved and adopted this 20th day of May, 2024.
/s/Ric W. Jones, Mayor Pro Tem
Attest: /s/Adrienne N. Breitfelder, City Clerk
It 5/24