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Setting a Public Hearing to approve the Subordination Agreement for properties located at 675 and 677 West 3rd StreetCity of Dubuque City Council Copyrighted December 15, 2025 ITEMS SET FOR PUBLIC HEARING # 3. ITEM TITLE: Setting a Public Hearing to approve the Subordination Agreement for properties located at 675 and 677 West 3rd Street SUMMARY: City Manager recommending City Council set a public hearing for January 5, 2026, to approve the Resolution approving a Subordination Agreement between the City of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank. RESOLUTION Setting A Public Hearing For A Subordination Agreement By And Among The City Of Dubuque, Iowa, Masterpiece Properties, LLC And Mound City Bank For Interest In City Properties Located At 675 And 677 W 3rd Street SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: January 5, 2026 ATTACHMENTS: 1. MVM Memo 2. 675 W 3rd Staff Memo for Setting a Public Hearing 3. 675 and 677 W 3rd Public Hearing Resolution 4. 675 W 3rd Notice of Public Hearing Page 679 of 1019 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Setting a Public Hearing to approve the Subordination Agreement for properties located at 675 and 677 W 3rd. DATE: December 11, 2025 Interim Housing & Community Development Director Sandi Fowler is recommending City Council set a public hearing for January 5, 2026, to approve the Resolution approving a Subordination Agreement between the City of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�,A� k�4 S4-zn" Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Sandi Fowler, Interim Housing & Community Development Director Nicole Lytle, Grants Project Manager Page 680 of 1019 Dubuque THE CF All -America Ciry D!UjB E-E 1 I��I -2013 Masterpiece on the Mississippi zoo17*2019 �' Pp zoi�*Zoi9 TO: Michael C. Van Milligen, City Manager FROM: Sandi Fowler, Interim Housing and Community Development Director DATE: December 15, 2025 RE: Setting a Public Hearing to approve the Subordination Agreement for properties located at 675 and 677 W 3rd INTRODUCTION This memorandum requests the City Council set a public hearing for January 5, 2026, to approve the Resolution approving a Subordination Agreement between the City of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank. BACKGROUND The City of Dubuque, Iowa (City), and Masterpiece Properties, LLC, operated by a local owner, Joshua Jansen, entered into a Lead and Healthy Homes Program Agreement dated April 14, 2022 for a $40,250 loan for the property located at 675 W 3rd Street, and an additional agreement dated May 11th, 2023 for a $43,875 loan for the property located at 677 W 3rd Street. As collateral for the construction work, Masterpiece Properties, LLC, granted to the City a mortgage for each property. The Mortgage for property located at 675 W 3rd was recorded on October 10, 2023, as Instrument No. #20230009650 and the Mortgage for property located at 677 W 3rd was recorded on November 12, 2024 as Instrument No. 202400010799. DISCUSSION Masterpiece Properties LLC, operated by local owner Joshua Jansen, intends to refinance the properties located at 675 and 677 W 3rd Street. Mound City Bank is financing the real estate transaction and requires a first secured position of repayment. Since the City Mortgage was recorded in 2023, the City would automatically be moved to the first secured position upon the original mortgage payoff. 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. :7 x0101►yi I Lh 140117_111Is] z I I respectfully request the City Council set a public hearing for January 5, 2026, to approve the subordination agreement by and between the City of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank. Prepared by Nicole Lytle, Grants Project Manager, 350 W 61h Street, Dubuque, IA 52001, (563)589-4230 Page 681 of 1019 Prepared by Nicole Lytle, Grants Project Manager Housing Department, 350 W 6'h St, Ste 312 (563)589-1724 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 397-25 SETTING A PUBLIC HEARING FOR A SUBORDINATION AGREEMENT BY AND AMONG THE CITY OF DUBUQUE, IOWA, MASTERPIECE PROPERTIES, LLC AND MOUND CITY BANK FOR INTEREST IN CITY PROPERTIES LOCATED AT 675 AND 677 W 3RD STREET WHEREAS, the City of Dubuque, Iowa, (City) and Masterpiece Properties, LLC previously entered into a Lead and Healthy Homes Program Agreement dated April 14, 2023 and May 11, 2023 (the Agreements) for the lead remediation and healthy homes construction work of 675 W 3rd and 677 W 3rd (the Projects) legally described as follows: E 20.5' OF LOT 2 PROSPECT HILL W. 20.5' OF LOT 2 PROSPECT HILL in the City of Dubuque (the Property); and WHEREAS, the Agreements include the award of a $40,250 and $43,875 Lead and Healthy Homes Mortgage (the Loans) for the purpose of providing a safer and healthier living for low to moderate income residents; and WHEREAS, the Project meets the requirements of the Loan; and WHEREAS, as security for the Loan, Masterpiece Properties, LLC previously granted to City a mortgage on the Property (the City Mortgage); and WHEREAS, Masterpiece Properties, LLC intends to assign its right to take title to the Property to Masterpiece Properties, LLC pursuant to an Assignment of Development Agreement and Assignment and Assumption Agreement related to the Loan; and WHEREAS, Masterpiece Properties, LLC in the Assignment of Lead and Healthy Homes Agreement and Assignment and Assumption Agreement agrees to be bound by all the terms and conditions of the Lead and Healthy Homes Agreement and the Loan; and WHEREAS, Mound City Bank is financing the refinance of the Property for Masterpiece Properties, LLC which includes a mortgage (the Mound City Bank Mortgage) and requires that the City Mortgage be subordinate to the Mound City 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 5th day of January, 2026, 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, ctyclerk2cityofdubugue.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 151h day of December, 2025. Brad avanagh, Mayor Attest: , Adrienne N. Breitfelder, C ty Clerk CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 5th day of January, 2026, 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, Masterpiece Properties, LLC and Mound City Bank for interest in properties located at 675 and 677 W 3rd 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. 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 15th day of December 2025. Adrienne N. Breitfelder, CIVIC, City Clerk Page 684 of 1019