Approving a Subordination Agreement with Franklin Apartments, LLC, and Premier BankCity of Dubuque
City Council
PUBLIC HEARINGS # 3.
Copyrighted
November 3, 2025
ITEM TITLE: Resolution Approving a Subordination Agreement by and
among the City of Dubuque, Iowa, Franklin Apartments, LLC,
and Premier Bank
SUMMARY: Proof of publication on notice of public hearing to consider
City Council adopt the attached Resolution approving the
Subordination Agreement by and between the City of
Dubuque, Iowa, Franklin Apartments, LLC, and Premier
Bank, and City Manager recommending approval.
RESOLUTION Approving 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)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. Subordination Agreement
4. Resolution
Page 442 of 525
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving a Subordination Agreement by and between the City
of Dubuque, Iowa, Franklin Apartments, LLC, and Premier Bank
DATE: October 27, 2025
Economic Development Director Jill Connors is recommending City Council adopt the
attached Resolution approving the Subordination Agreement by and between the City of
Dubuque, Iowa, Franklin Apartments, LLC, and Premier Bank.
The City of Dubuque and Franklin Investments, LLC, operated by local developer Gary
Carner, 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. As collateral for the Loan, Franklin
Investments, LLC granted to City a Mortgage recorded on March 29, 2021.
Franklin Apartments, LLC, operated by local developer Jeff Manders, 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 recommend Mayor and City Council
approval of the Subordination Agreement by and between the City of Dubuque, Iowa,
Franklin Apartments, LLC, and Premier Bank.
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Mic ael C. Van Milligen
MCVM-sv
Attachment
Page 443 of 525
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Ian Hatch, Assistant Economic Development Director
Page 444 of 525
Dubuque Economic Development
Department
THE CITY OF 1300 (wain street
All-AM111094 Dubuque, Iowa 52001-4763
UB E vxxwi Office (563) 589-4393
1 I I TTY (563) 690-6678
I® http://www.cityofdubuque.org
2007-2012*2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Approving a Subordination Agreement by and between the City
of Dubuque, Iowa, Franklin Apartments, LLC, and Premier Bank
DATE: October 27, 2025
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached Resolution
approving a Subordination Agreement by and between the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank.
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The City of Dubuque, Iowa (City), and Franklin Investments, LLC, operated by local
developer Gary Carner, 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, operated by local developer Jeff Manders, 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.
Page 445 of 525
RECOMMENDATION
I recommend, following the public hearing, the City Council adopt the attached Resolution
approving the Subordination Agreement by and between the City of Dubuque, Iowa,
Franklin Apartments, LLC, and Premier Bank.
011
Page 446 of 525
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. 13`h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 357-25
APPROVING 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, by Resolution No. 339-25, declared its intent to
approve the Subordination Agreement by and among the City of Dubuque, Iowa, Franklin
Apartments, LLC, and Premier Bank; and
Whereas, pursuant to published notice, a public hearing was held on the proposed
Assignment of Development Agreement on November 3, 2025 at 6:30 p.m.; and
Whereas, it is the determination of the City Council that approval of the
Subordination Agreement by and among the City of Dubuque, Iowa, Franklin Apartments,
LLC, and Premier Bank, according to the terms and conditions set out in the
Subordination Agreement, is in the best interests of the City of Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Subordination Agreement by and among the City of Dubuque,
Iowa, Franklin Apartments, LLC, and Premier Bank is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the
Subordination Agreement on behalf of the City of Dubuque.
Section 3. 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 November, 2025.
Brad M. Cav , Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
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 3 rd 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
By:
rad (favanagh,
STATE OF IOWA )
) SS:
DUBUQUE COUNTY )
On this 3 rd 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.
ADRIENNE N. BREITFEIDER�-�����
_. Commission NNumire�g28956 Notary Public in and for the State of Iowa
My Comm. Ez . �'� JJ
Franklin Apartments, LLC
By: K `'
Jeffe . Manders, Member
STATE OF IOWA )
) SS:
DUBUQUE COUNTY )
(>-+obey
On this day of Nees 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.
�1 .01 EMSON
Commission Number 719M
My Commww Expkw
Ils� - i3• acp
Notary Public in and for t e State of Iowa
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:
10/24/2025
and for which the charge is 107.46
Mt-147(c.-0)-iL
SubsCribed to beforme, a Notary Public in acefor
Dubuque County, Iowa,
this 24th day of October, 2025
Notary Pyblia in and for Dubuque CotYnty, Iowa.
Q1m. JANET K. PAPE
~�+ Commission Number 199659
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` • My Commission Expires
/owN 12/11/2025
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 November,
2025, 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 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://dubuqueia.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. 13th 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, CMC, City Clerk
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@cityofdubuque.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.
/s/Brad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, City Clerk
It 10/24