Setting a Public Hearing on a Subordination Agreement with Franklin Apartments, LLC, and Premier BankCity of Dubuque
City Council
Copyrighted
October 20, 2025
111 W4&1A9797:A1l1 311102:W_1NIzlex3pi
ITEM TITLE: Resolution Setting a Public Hearing on a Subordination
Agreement by and among the City of Dubuque, Iowa,
Franklin Apartments, LLC, and Premier Bank
SUMMARY: City Manager recommending City Council adopt the attached
Resolution setting a public hearing for November 3, 2025, on
a proposed Subordination Agreement by and between the
City of Dubuque, Iowa, Franklin Apartments, LLC, and
Premier Bank.
RESOLUTION Setting A Public Hearing For A Subordination
Agreement By And Among The City Of Dubuque, Iowa,
Franklin Apartments, LLC, And Premier Bank For Interest In
City Property Located At 39 Bluff Street
SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for
DISPOSITION: November 3, 2025
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. Subordination Agreement
4. Notice of Hearing
5. Resolution
Page 458 of 817
THE C
Dubuque
DUjIBQTE
AIFAWca Ciq
rw ni
I
Masterpiece on the Mississippi
� pp
20°2.2° 13
Zd17*7*2Q19
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Setting a Public Hearing on a Proposed Subordination
Agreement by and between the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank
DATE: October 15, 2025
Economic Development Director Jill Connors is recommending City Council adopt the
attached Resolution setting a public hearing for November 3, 2025, on a proposed
Subordination Agreement by and between the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank.
The City of Dubuque, Iowa (City), and Franklin Investments, LLC entered into a
Downtown Rehabilitation Loan Agreement dated December 21, 2020, for a $300,000
loan related to the redevelopment of 39 Bluff Street including the creation of 21 new
residential rental units (the Loan). As collateral for the Loan, Franklin Investments, LLC
granted to City a Mortgage recorded on March 29, 2021 as Instrument No. 2021-
00004804 (the City Mortgage).
Franklin Apartments, LLC intends to purchase the property at 39 Bluff Street. Premier
Bank is financing the real estate purchase and requires a first secured position of
repayment. Since the City Mortgage was recorded in 2021, the City currently has the
first secured position. Historically, the City has consented to subordinating its secured
position behind a primary lender. The primary lender will have a higher loan amount and
therefore, more risk associated with its loan. The appraised value of the property to be
purchased is $2,789,000. This appraised value is above the City Mortgage and the
Premier Bank loan amount.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
k�4 A-Z�22'�
Mic ael C. Van Milligen
MCVM:sv
Page 459 of 817
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 460 of 817
Dubuque
THE CITY OF
All -Americo Cigl
MIX 1Wlf. CT7�: f.l i"F�11I�':
UB E ' I
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 Setting a Public Hearing on a Proposed Subordination
Agreement by and between the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank
DATE: October 14, 2025
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached Resolution setting
a public hearing for November 3, 2025 on a proposed Subordination Agreement by and
between the City of Dubuque, Iowa, Franklin Apartments, LLC, and Premier Bank.
BACKGROUND
The City of Dubuque, Iowa (City), and Franklin Investments, LLC entered into a Downtown
Rehabilitation Loan Agreement dated December 21, 2020, for a $300,000 loan related to
the redevelopment of 39 Bluff Street including the creation of 21 new residential rental units
(the Loan). As collateral for the Loan, Franklin Investments, LLC granted to City a Mortgage
recorded on March 29, 2021 as Instrument No. 2021-00004804 (the City Mortgage).
DISCUSSION
Franklin Apartments, LLC intends to purchase the property at 39 Bluff Street. Premier Bank
is financing the real estate purchase and requires a first secured position of repayment.
Since the City Mortgage was recorded in 2021, the City currently has the first secured
position. Historically, the City has consented to subordinating its secured position behind a
primary lender. The primary lender will have a higher loan amount and therefore, more risk
associated with its loan. The appraised value of the property to be purchased is $2,789,000.
This appraised value is above the City Mortgage and the Premier Bank loan amount.
RECOMMENDATION
Page 461 of 817
I recommend the City Council adopt the attached Resolution setting a November 3, 2025
public hearing on the proposed Assignment and Assumption Agreement by and between
the City of Dubuque, Iowa and Franklin Investments, LLC to Franklin Apartments, LLC.
2
Page 462 of 817
Document prepared by: Staci Duerr for Premier Bank, P.O. Box 420, Dubuque, IA 52004-
0420, (563) 588-1000
Return To: Premier Bank, P.O Box 420, Dubuque, IA 52004-0420
SUBORDINATION AGREEMENT
On this day of November 2025, it is agreed by the City of Dubuque that its
mortgage dated the 26th day of March, 2021 and filed March 29, 2021, executed by
Franklin Investments, LLC to the City of Dubuque as Instrument No. 2021-00004804 in
the records of Dubuque County, Iowa, further assumed by Franklin Apartments, LLC,
that said mortgage is hereby subordinated to a mortgage between Premier Bank and
Franklin Apartments, LLC dated November 4, 2025 and filed on November , 2025
as Instrument No. of the records of Dubuque County, Iowa. Jeffery R.
Manders, Member, of Franklin Apartments, LLC acknowledges the execution of this
document.
City of Dubuque
M.
Brad Cavanagh, Mayor
STATE OF IOWA )
) SS:
DUBUQUE COUNTY )
On this day of November A.D., 2025, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Brad Cavanagh to me personally
known, who being by me duly sworn, did say that they are the Mayor of the City of
Dubuque, that no seal has been procured by said entity, that said instrument was signed
on behalf of said entity, by authority of the Dubuque City Council, and the said Brad
Cavanagh as Mayor acknowledged the execution of said instrument to be the voluntary
act and deed of said corporation, by it and each of them voluntarily executed.
Notary Public in and for the State of Iowa
Page 463 of 817
Franklin Apartments, LLC
I0
Jeffery R. Manders, Member
STATE OF IOWA )
) SS:
DUBUQUE COUNTY )
On this day of November A.D., 2025, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Jeffery R. Manders to me
personally known, who being by me duly sworn, did say that they are the Member of
Franklin Apartments, LLC, that no seal has been procured by said entity, that said
instrument was signed on behalf of said entity, by authority of Franklin Apartments,
LLC, and the said Jeffery R. Manders as Member acknowledged the execution of said
instrument to be the voluntary act and deed of said corporation, by it and each of them
voluntarily executed.
Notary Public in and for the State of Iowa
Page 464 of 817
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 November, 2025, at 6:30 p.m., in the Historic Federal Building,
350 W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes
to approve a Subordination Agreement by and among the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank for interest in property located at 39 Bluff Street.
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 City Council agenda will be
posted the Friday before the meeting and will contain public input options. The agenda
can be accessed at https://dubugueia.portal.civicclerk.com/ or by contacting the City
Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Written comments on the public hearing may be submitted to the City Clerk's Office by
email at ctyclerk@cityofdubuque.org or by mail to City Hall, 50 W. 13t" St., Dubuque, IA
52001, before the scheduled hearing. The City Council will review all written comments
at the time of the hearing.
Documents related to the public hearing 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 requiring special assistance should contact the City Clerk's Office 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 October 2025.
Adrienne N. Breitfelder, CIVIC, City Clerk
Page 465 of 817
Prepared by Ian Hatch, Assistant Economic Development Director, 1300 Main Street Dubuque IA 52001 (563) 589-4105
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 339-25
SETTING A PUBLIC HEARING FOR A SUBORDINATION AGREEMENT BY AND
AMONG THE CITY OF DUBUQUE, IOWA, FRANKLIN APARTMENTS, LLC, AND
PREMIER BANK FOR INTEREST IN CITY PROPERTY LOCATED AT 39 BLUFF
STREET
WHEREAS, the City of Dubuque, Iowa, (City) and Franklin Investments, LLC
previously entered into a Development Agreement dated April 4, 2011 and a Downtown
Rehabilitation Loan Agreement dated December 21, 2020 (the Agreements) for the
rehabilitation of 39 Bluff Street (the Project) legally described as follows:
Lot 2-1 & 2-2 of City Lot 595 City Lots 596, 597, & 597A Lot 2-1-2 & Lot 2-2 of City Lot
600 & Lots 3 Thru 6 of City Lot 600in the City of Dubuque
(the Property); and
WHEREAS, the Agreements include 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, Franklin Investments, LLC previously granted
to City a mortgage on the Property (the City Mortgage); and
WHEREAS, Franklin Investments, LLC intends to assign its right to take title to the
Property to Franklin Apartments, LLC pursuant to an Assignment of Development
Agreement and Assignment and Assumption Agreement related to the Loan; and
WHEREAS, Franklin Apartments, LLC in the Assignment of Development
Agreement and Assignment and Assumption Agreement agrees to be bound by all of the
terms and conditions of the Development Agreement and the Loan; and
WHEREAS, Premier Bank is financing the purchase of the Property for Franklin
Apartments, LLC which includes a mortgage (the Premier Bank Mortgage) and requires
that the City Mortgage be subordinate to the Premier Bank 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
Section 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 November, 2025, at 6:30 p.m. The official agenda will be posted the Friday before the
meeting and will contain listening, viewing, and public input options. The agenda can be
accessed at https://dubuqueia.portal.civicclerk.com/ or by contacting the City Clerk's
Office at 563-589-4100, ctyclerk a cityofdubugue.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 October, 2025.
Bra Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk