Approving a Subordination Agreement with Masterpiece Properties, LLC and Mound City BankCity of Dubuque
City Council
PUBLIC HEARINGS # 4.
Copyrighted
January 5, 2026
ITEM TITLE: Resolution Approving a Subordination Agreement by and
between the City of Dubuque, Iowa, Masterpiece Properties,
LLC, and Mound City Bank
SUMMARY: Proof of publication on notice of public hearing to consider
City Council adopt the attached Resolution approving a
Subordination Agreement by and between the City of
Dubuque, Iowa, Masterpiece Properties, LLC, and Mound
City Bank, and City Manager recommending approval.
RESOLUTION Approving 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 W 3rd Street And 677 W 3rd
Street
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. 675 W 3rd Staff Memo
3. 675 & 677 W 3rd PH Resolution
4. Agreement
Page 517 of 567
Dubuque
THE CITY OF
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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: Resolution Approving a Subordination Agreement by and between the City
of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank.
DATE: December 29, 2025
Interim Housing & Community Development Director is recommending City Council
adopt the attached Resolution approving a Subordination Agreement by and between
the City of Dubuque, Iowa, Masterpiece Properties, LLC, and Mound City Bank.
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.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y
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
Page 518 of 567
THE C
DUj!B9aTE
Masterpiece on the Mississippi
Dubuque Housing and Community Development
All•A Assisted Housing Program
350 W. 611 Street, Suite 312
Dubuque, IA 52001
2007<2012<2013 EOPPORTUNSTY
2017*2019 Office (563) 589-4230
TO: Michael C. Van Milligen, City Manager
FROM: Sandi Fowler, Interim Housing and Community Development Interim Director
SUBJECT: Resolution Approving a Subordination Agreement by and between the City of Dubuque,
Iowa, Masterpiece Properties, LLC, and Mound City Bank.
DATE: January 5, 2026
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, 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
11t", 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,
Ato] OLF. 0Miii r,=, i 0rwd1Y1Z'190 ]11*10-I:1
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.
Service People Integrity Responsibility Innovation Teamwork
Page 519 of 567
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, Masterpiece Properties,
LLC, and Mound City Bank.
Prepared by Nicole Lytle, Grants Project Manager, 350 W 6th Street, Dubuque, IA 52001, (563)589-4230
Service People Integrity Responsibility innovation Teamwork
Page 520 of 567
Prepared by Nicole Lytle Grants Project Manager, 350 W 6th Street Dubuque IA 52001 (563) 589-4230
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13m St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 9-26
APPROVING 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 W 3RD STREET 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 4rd (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 Properties); and
WHEREAS, the Agreements include the award of $40,250 and $43,875
Lead and Healthy Homes Mortgage (the Loans) for the purpose of providing 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 -land
WHEREAS, Masterpiece Properties, LLC in the Assignment of Lead and
Healthy Homes Agreement and Assignment and Assumption Agreement agrees to be
bound by all of 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, by Resolution No. 397-25, declared its intent to
approve the Subordination Agreement by and among the City of Dubuque, Iowa,
Masterpiece Properties, LLC, and Mound City Bank; and
Whereas, pursuant to published notice, a public hearing was held on the
proposed Assignment of Development Agreement on January 5, 2026.; and
Whereas, it is the determination of the City Council that approval of the
Subordination Agreement by and among the City of Dubuque, Iowa,
Masterpiece Properties, LLC, and Mound City 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, Masterpiece Properties, LLC, and Mound City 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 and the City Clerk is
authorized and directed to attest to his signature.
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 5th day of January, 2026.
i
Brad M. Cave , Mayor
Attest: -,
Adrienne N. Breitfelde , City Clerk
Prepared by and return to: Nicole Lytle, City of Dubuque Housing and Community Development ,350 W
6'h St. Ste 312, Dubuque, Iowa, 52001; 589-1724
Subordination Agreement
This Subordination Agreement ("Agreement") is made as of January 5, 2026, by and between
The City of Dubuque, Iowa, an Iowa municipal corporation ("City"), and Masterpiece Properties,
LLC, an Iowa limited liability company ("Borrower").
RECITALS
A. Borrower is the owner of the real property located at 675 W 3rd Street, Dubuque, Iowa
("Property One") and 677 W 3rd Street, Dubuque, Iowa ("Property Two") (collectively, the
"Properties").
B. The City and Borrower entered into a Lead and Healthy Homes Program Agreement dated
April 14, 2022, pursuant to which the City provided a loan in the principal amount of Forty
Thousand Two Hundred Fifty Dollars ($40,250) for Property One.
C. The City and Borrower entered into an additional Lead and Healthy Homes Program
Agreement dated May 11, 2023, pursuant to which the City provided a loan in the principal
amount of Forty -Three Thousand Eight Hundred Seventy -Five Dollars ($43,875) for Property
Two.
D. As security for repayment of the above -referenced loans, Borrower executed and delivered to
the City:
1. A Mortgage encumbering Property One, recorded on October 10, 2023, as Instrument
No. 20230009650 in the Office of the Dubuque County Recorder; and
2. A Mortgage encumbering Property Two, recorded on November 12, 2024, as Instrument
No. 202400010799 in the Office of the Dubuque County Recorder
(collectively, the "City Mortgages").
E. Borrower has obtained or is in the process of obtaining financing from Mound City Bank
("Senior Lender"), which financing will be secured by a mortgage or mortgages on the
Properties (the "Senior Mortgage"),
F. As a condition of such financing, Mound City Bank has required that the City subordinate the
lien priority of the City Mortgages to the lien priority of the Senior Mortgage.
G. The City is willing to subordinate its lien position from first lien priority to second lien priority,
subject to the terms and conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties agree as follows:
1. Subordination
The City hereby subordinates the lien priority of the City Mortgages to the lien priority of the
Senior Mortgage. Upon recording of the Senior Mortgage, Mound City Bank shall constitute a
first lien on the Properties, and the City Mortgages shall constitute second liens, subject to the
terms of this Agreement.
Page 523 of 567
2. No Other Modification
Except for the subordination of lien priority expressly set forth herein, all terms, conditions,
rights, and obligations of the City Mortgages and the underlying Lead and Healthy Homes
Program Agreements shall remain unchanged and in full force and effect.
3. No Waiver
Nothing in this Agreement shall be deemed a waiver of any rights or remedies of the City under
the City Mortgages or the related loan agreements, except as to lien priority.
4. Representations
Borrower represents and warrants that:
• Borrower is the lawful owner of the Properties.
• Borrower has full authority to execute this Agreement; and
• This Agreement does not violate any other agreements affecting the Properties.
5. Binding Effect
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of
Iowa.
7. Recording
This Agreement may be recorded in the Office of the Dubuque County Recorder. Borrower shall
be responsible for all recording fees.
SIGNATURES
CITY OF DUBUQUE, IOWA
By: = '
Name: l��c�� 6ne�yonC4
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Title:��%G�
Date: n�Ivn��,
MASTERPI E PROP IES, LLC
By:
N �e:c1
Title:
Date: c)
STATE OF IOWA
COUNTY OF DUBUQU
On this � day of Q , 20-2(4 before me, a Notary Public in and for the State
of Iowa, personally appeared Joshua Jansen, known to me or satisfactorily proven to be
the person who executed the foregoing instrument as an authorized member or manager
of Masterpiece Properties, LLC, and acknowledged that the same was executed as the
voluntary act and deed of said limited liability company.
KARA MAXWELL
NotaryPublic in and for the State f Iowa Notarial Seal - Iowa
Commission Number 861233
My Commission Expires: 12 17 a aa-7 My Commission Expires Dec 17, 2027
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:
12/19/2025
and for which the charge is 32.12
7
Subscribed to before me, a No nary Public in and for
Dubuque County, Iowa,
this 19th day of December, 2025
K 4
Notary in and for Dubuque County, Iowa.
' Pp,IAC
0
JANET K. PAPE
T. Commission Number 199659
My Commission Expires
12/11/2028
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 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://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 15th day
of December 2025.
Adrienne N. Breitfelder,
CMC, City Clerk
It 12/19