Setting a Public Hearing on a Collateral Assignment of Development Agreement by and between the City of Dubuque, Iowa and Hitzler Rental, LLC Assigning Rights to Bellevue State Bank for the Redevelopment of 2541 Central AvenueCity of Dubuque
City Council
Copyrighted
February 2, 2026
ITEMS SET FOR PUBLIC HEARING # 1.
ITEM TITLE: Resolution Setting a Public Hearing on a Collateral
Assignment of Development Agreement by and between the
City of Dubuque, Iowa and Hitzler Rental, LLC Assigning
Rights to Bellevue State Bank for the Redevelopment of 2541
Central Avenue
SUMMARY: City Manager recommending City Council adopt the attached
Resolution setting a public hearing for February 16, 2026, on
the Collateral Assignment of Development Agreement by and
between the City of Dubuque, Iowa and Hitzler Rental, LLC
assigning rights to Bellevue State Bank for the
redevelopment of 2541 Central Avenue.
RESOLUTION Fixing The Date For A Public Hearing Of The
City Council Of The City Of Dubuque, Iowa On A Collateral
Assignment Of Development Agreement By And Between
The City Of Dubuque, Iowa And Hitzler Rental, LLC, To
Bellevue State Bank For Property At 2541 Central
SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for
DISPOSITION: February 16, 2026
ATTACHMENTS:
1. MVM Memo Resolution Setting a Public Hearing DA with Hitzler Rental, LLC
Assigning Rights to Bellevue State Bank for 2541 Central Avenue
2. Staff Memo
3. Assignment of Development Agreement
4. Notice of Hearing
5. Resolution
Page 346 of 865
Dubuque
THE CITY OF
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Setting a Public Hearing on a Collateral Assignment of
Development Agreement by and between the City of Dubuque, Iowa and
Hitzler Rental, LLC Assigning Rights to Bellevue State Bank for the
Redevelopment of 2541 Central Avenue
DATE: January 28, 2026
Economic Development Director Jill Connors is recommending City Council adopt the
attached Resolution setting a public hearing for February 16, 2026, on the Collateral
Assignment of Development Agreement by and between the City of Dubuque, Iowa and
Hitzler Rental, LLC assigning rights to Bellevue State Bank for the redevelopment of
2541 Central Avenue.
On October 20, 2025, the Dubuque City Council entered into a Development Agreement
with Hitzler Rental, LLC by Resolution No. 343-25. The Development Agreement
included a downtown housing creation grant of $50,000 ($10,000 x 5 units), a downtown
rehabilitation grant of $35,000, and a fifteen -year tax increment financing award
estimated to not exceed $40,000.
There is no impact to the budget as these incremental property tax rebates have
already been authorized and incorporated into the terms of the Development
Agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/-� _� k�4
Mic ael C. Van Milligen
►VA140►TAWA
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 347 of 865
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 Setting a Public Hearing on a Collateral Assignment of
Development Agreement by and between the City of Dubuque, Iowa and
Hitzler Rental, LLC Assigning Rights to Bellevue State Bank for the
Redevelopment of 2541 Central Avenue
DATE: January 22, 2026
INTRODUCTION
This memorandum presents for City Council review and approval a Resolution setting a
public hearing on a Collateral Assignment of Development Agreement by and between the
City of Dubuque, Iowa and Hitzler Rental, LLC assigning rights to Bellevue State Bank for
the redevelopment of 2541 Central Avenue.
BACKGROUND
On October 20, 2025, the Dubuque City Council entered into a Development Agreement
with Hitzler Rental, LLC by Resolution No. 343-25. The Development Agreement included
a downtown housing creation grant of $50,000 ($10,000 x 5 units), a downtown
rehabilitation grant of $35,000, and a fifteen -year tax increment financing award estimated
to not exceed $40,000. Tax Increment Financing (TIF) incentives provide a reimbursement
of a portion of the additional property tax revenue generated by a development project,
calculated on the incremental increase in assessed value, and applied after the project has
been fully completed.
DISCUSSION
Hitzler Rental, LLC has secured construction financing for the redevelopment project
through Bellevue State Bank. As part of the financing arrangement, Hitzler Rental, LLC has
assigned its rights to the grants and TIF incentive to Bellevue State Bank. This structure
enables Hitzler Rental, LLC to access upfront capital for project development and
Page 348 of 865
subsequently apply the TIF proceeds toward repayment of a portion of the construction
loan upon project completion.
BUDGETIMPACT
There is no impact to the budget as these incremental property tax rebates have already
been authorized and incorporated into the terms of the Development Agreement.
RECOMMENDATION
I respectfully request City Council adopt the attached Resolution setting a public hearing
for February 16, 2026 on the Collateral Assignment of Development Agreement by and
between the City of Dubuque, Iowa and Hitzler Rental, LLC assigning rights to Bellevue
State Bank for the redevelopment of 2541 Central Avenue.
K
Page 349 of 865
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT
THIS COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT (this
"Assignment") is made as ofZ�, 2026, by and among Hitzler Rental, LLC, an
Iowa limited liability company ("Borrower/Developer" further known as "Assignor") in favor
of Bellevue State Bank ("Lender").
RECITALS
A. Borrower owns, or will own, the property located at 2541 Central Avenue, located in
the City of Dubuque, State of Iowa(the "Property"). Borrower intends to develop the Property as
a up to 5-unit multi -family apartment project located on the Property with other related
improvements (collectively, the "Project")
B. Subject to the terms and conditions of that certain Loan Agreement between
Borrower and Lender of even date herewith (the "Loan Agreement"), Lender has made a term
loan to the Borrower (the "Term Loan"), as evidenced by a Term Note dated October 22, 2025.
C. Borrower and the City of Dubuque (the "City") entered into that certain
Development Agreement, dated October 20, 2025, pursuant to which the City has agreed to
provide Economic Development Chants to Borrower or Developer estimated up to a principal
amount of $40,000.00 (the "TIF Payments") and incentive grant payments up to a principal
amount of $85,000.00 ($10,000.00 per unit up to five units for the Downtown Housing incentive
and $35,000.00 for the Downtown Rehabilitation Grant), collectively the ("Grant Payments").
D. Lender requires Assignor to execute and deliver this Assignment as collateral for
the Loans.
AGREEMENTS
NOW, THEREFORE, in consideration of the foregoing and of the mutual promises
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by Borrower, Borrower hereby agrees as follows:
1. Assignment. As security for Borrower's obligations under the Notes, the Loan
Agreement and the other documents evidencing or securing the Loans (collectively, the "Loan
Documents") (collectively, the "Obligations"), Assignor hereby collaterally assigns to Lender all of
its right, title, and interest in and to the Development Agreement, including all of Assignor's
rights to receive the TIF Payments thereunder, it being understood and agreed that, if and when the
Obligations are satisfied in full, then this Assignment shall terminate.
2. Lender's Ri hg is Upon Default. If a default occurs under the Loan Documents
beyond any applicable notice and cure period (an "Event of Default"), then Lender may at its
option upon written notice to Borrower and the City, but without any obligation to do so, elect to
assume Assignor's rights and obligations under the Development Agreement, in which case Lender
shall have all of the rights and obligations of Assignor under the Development Agreement from. and
after the date of notice to the City. Prior to the occurrence of an Event of Default and the written
Page 350 of 865
election by Lender to assume Assignor's rights and obligations under the Development Agreement,
nothing in this Agreement shall be construed as an assumption by Lender of any liability or
obligation of Assignor under the Development Agreement. Nothing herein constitutes a release by
the City of Assignor from its obligations under the Development Agreement even if Lender elects
to assume Assignor's rights and obligations thereunder, and to the extent the Developer Agreement
is not performed by Lender; Assignor remains responsible to the City for all of its obligations under
the Development Agreement.
3. Performance of Assignor. Assignor shall faithfully abide by, perform and discharge
each of Assignor's obligations, covenants and agreements under the Development Agreement and
shall take such actions as may be necessary or required under the Development Agreement to cause
the Minimum Investment in the Project and the prompt commencement of TIF Payments to
Borrower thereafter. Without the prior written consent of Lender, Assignor shall not (a) modify or
in any way alter the terms of the Development Agreement, (b) pledge or assign the Development
Agreement, (c) waive any of its rights under the Development Agreement, (d) terminate or
surrender the Development Agreement, or (d) cause or permit the TIF Payments to be made to
any party but Borrower of Lender. Developer hereby acknowledges and agrees and directs the
City that all TIF Payments shall be paid to Borrower (not to Developer).
4. TIF Loan Proceeds. Borrower shall, immediately upon receipt of any TIF
Payments from the City, deposit such funds into Borrower's operating account established with
Lender; which funds may be used to pay Project Operating Expenses or disbursed only in
accordance with Borrower's Operating Agreement. Upon notice from Lender to the City, with a
copy to Borrower, of an Event of Default under the Loan Documents or otherwise upon Lender's
request, Borrower and Developer authorize and direct the City to make the TIF Payments due to
Borrower to Lender directly. The City shall have no obligation to verify any of the information in
such notice.
5. Grant Loan Proceeds. Borrower shall, immediately upon receipt of any
Grant Payments from the City, deposit such funds into Borrower's operating account established
with Lender; which funds may be used to pay Project Operating Expenses or disbursed only in
accordance with Borrower's Operating Agreement. Upon notice from Lender to the City, with a
copy to Borrower, of an Event of Default under the Loan Documents or otherwise upon Lender's
request, Borrower and Developer authorize and direct the City to make the Grant Payments due to
Borrower to Lender directly. The City shall have no obligation to verify any of the information in
such notice.
6. Protect Security. At Borrower's sole cost and expense, Borrower shall appear and
defend any action or proceeding arising under, during, out of or in any manner connected with the
Development Agreement or the obligations, duties or liabilities of Assignor under the Development
Agreement, and shall pay any reasonable costs and expense of Lender, including reasonable
attorneys' fees, in any such action or proceeding in which Lender decides, in its sole discretion, to
appear.
7. Representations and Covenants. Assignor represents and warrants that
(a) Assignor has the full right to collaterally assign the Development Agreement; (b) the
Development Agreement is valid, is in full force and effect and has not been modified or amended;
(c) Lender shall have a first priority lien and security interest in and to the Development Agreement
2
Page 351 of 865
and the TIF Payments, there are no outstanding assignments or pledges of the Development
Agreement or TIF Payments and Assignor shall not make any further assignments or pledges of
the Development Agreement or TIF Payments during the term of the loans without the consent of
Lender; and (e) there are no existing defaults, rights of setoff, or claims for additional payments
under the Development Agreement.
8. Authorization. Upon an Event of Default, Assignor irrevocably constitutes and
appoints Lender its true and lawful attorney -in -fact in Assignor's name or in Lender's name, or
otherwise, to enforce all rights of Assignor under the Development Agreement, and such power,
being coupled with an interest, is irrevocable.
9. No Liability For Lender. Subject to the Provisions of Section 2, Lender shall not
be obligated to perform or discharge and does not by this Assignment, undertake to perform or
discharge any obligation, duty or liability under the Development Agreement.
10. Assianor Holds Lender Harmless. Assignor shall indemnify and hold Lender
harmless of and from (a) any and all liability, loss or damage which it incurs under the
Development Agreement or by reason of this Assignment; and (b) any and all claims and demands
which are asserted against it by reason of any alleged obligations or undertakings on its part to
perform or discharge any of the terms, covenants or agreements contained in the Development
Agreement. The amount of all such liabilities, losses, damages, claims and demands, and the cost
of defending against them, including costs, expenses and reasonable attorneys' fees, are secured by
this Assignment and constitute part of the Obligations. Assignor shall reimburse Lender for such
amounts immediately upon demand.
11. Security Interest in Agreements. In addition, Assignor hereby grants to Lender a
security interest in Assignor's right, title, and interest in the Development Agreement and the TIF
Payments, if and to the extent that a security interest may be granted therein under the Uniform
Commercial Code, and Assignor acknowledges that Lender shall have all of the rights and
remedies with respect thereto provided for by the Uniform Commercial Code, in addition to the
other rights and remedies herein granted to Lender, in the event of the occurrence of an Event of
Default.
12. Successors and Assigns. This Assignment shall be binding upon Assignor and its
successors and assigns, and shall insure to the benefit of Lender, its successors and assigns.
Assignor shall not assign its obligations or interests under the TIF Agreement or under this
Assignment without Lender's prior written consent.
13. Governing Law. This Assigrunent shall be governed by the laws of the State of
Iowa.
14, Validity Clause. This Assignment shall confer to Lender the rights and benefits
described in this Assignment to the full extent allowable by law. The unenforceability or invalidity
of any of the provisions of this Assignment shall not render any other provision or provisions
unenforceable or invalid. Any provision found to be unenforceable shall be severable from this
Assignment without invalidating the remainder of such provision or the remaining provisions of
this Assignment.
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15. Notices And Approvals. Any notice that either party may desire or may be required
to give to any other party shall be in writing and shall be delivered as required under the Loan
Documents, and, with respect to Assignor, shall be sent to the following address: c/o Bellevue
State Bank, 200 S 2nd Street, Bellevue, Iowa 52031.
16. Counterparts, This Assignment may be signed in one or more counterparts, each
of which shall be deemed to be an original and all of which together shall constitute one instrument.
The signature of a party to this Assignment transmitted by facsimile or electronic mail to the other
party shall be deemed an original signature.
SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF
DEVELOPMENT AGREEMENT
Dated as of the date first set forth above.
ASSIGNOR:
HITZLE RENT
.w
By: Timothy Hitzler, Manager of Hitzler Rental, LLC
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
On this l day of 2026, before me, the undersigned, a Notary Public in and for
the State of Iowa, personally appeared Timothy Hitzler and acknowledged said execution of the
instrument to be his/her voluntary act and deed.
IAN C HATCH
Notarial Seal - Iowa Notary Public in and for
Commission Number 82744 Dubuque County, Iowa
My Commission Expires Nov 12, 2026
4
Page 353 of 865
Lender:
Bellev to Bank
By: Richard H. Prull, Executive Vice President
STATE OF IOWA )
) SS
COUNTY OF JACKSON )
On this day of , 2026, before me, the undersigned, a Notary Public in and for
the State of Iowa, personally a�d Richard H. Prull and acknowledged said execution of the
instrument to be his/her voluntary act and deed.
o BRANDT MOORS Notary Public in and for
Commission Number 8 6995 Jackson County, Iowa
ow;_ My Comm. Up.�s '
Page 354 of 865
CONSENT OF CITY
AND ESTOPPEL
THIS CONSENT OF CITY AND ESTOPPEL is made by the City of Dubuque (the "City")
for the benefit of Bellevue State Bank ("Lender") with respect to that certain Development
Agreement, dated October 20, 2025, between Hitzler Rental, LLC ("Borrower/Developer"
further known as "Assignor"), and the City (the "TIF Agreement").
1. Payment Direction. Upon written request of Lender, City agrees to make all
Economic Development Grants (TIF Payments) (as defined in the Development Agreement)
directly to Lender at the following address: Bellevue State Bank, 200 S 2nd St, Bellevue, Iowa
52031 until Lender further notifies the City that the Obligations have been paid in full and the
Assignment terminated.
2. Consent to Assignment. The City hereby consents to the foregoing Collateral
Assignment of Development Agreement (the "Assignment") and agrees that if Lender notifies the
City in writing that Lender is exercising its right to assume Assignor's rights and obligations under
the Development Agreement, the City shall continue to perform its obligations under the terms of
the TIF Agreement in the manner specified in the therein as if `.Lender were -originally a party to
the Development Agreement. Lender's obligations, under the foregoing=Assignment are not
personal obligations or binding on any of Lender's assets, except Lender's interest in�the Property,
if any.
3. No Release. Nothing in the foregoing Assignment constitutes a release by the City
of Assignor from its obligations under the Development Agreement even if Lender elects to
assume Assignor's rights and obligations thereunder, and to the extent the Development Agreement
is not performed by Lender, Assignor remains responsible to the City for all of its obligations under
the Development Agreement.
3. Notice and Cure Rights. The City shall provide Lender with copies of any notices
given to Assignor under the Development Agreement, in the same manner and at the same time as
required thereunder to the following address: Bellevue State Bank, 200 S 2nd St, Bellevue, Iowa
52031. City agrees that Lender shall have the right to cure any default by Assignor under the
Development Agreement and City agrees to accept any cure of such a default by Lender as if such
cure were tendered or performed by Assignor.
4. Estoppel. City represents and warrants to Lender that as of the date hereof: (i)
the Development Agreement is and remains in full force and effect, (ii) no default currently exists
under the Development Agreement and no condition exists which, with the passage of time, would
constitute a default under the Agreement or would prevent the payment of the Econimic
Development Grants in accordance with the Development Agreement.
5. No Amendment. City agrees that it shall not, without the prior written consent of
the Lender, amend or modify or consent to any modification or amendment of the Development
Agreement.
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6. Conflict. Assignor acknowledges that City's consent is granted only insofar as said
terms and conditions do not conflict with the terms of the Development Agreement. Any conflict
between the terms of the Assignment and D e v e l o p m e n t Agreement shall be resolved pursuant
to the language of the Development Agreement.
CITY OF DUBUQUE
By:
Name:
Title:
Attest:
Name:
Title:
Page 356 of 865
EXIDBIT A
LEGAL DESCRIPTION
Lot 1 of Lot 1 of Lot 5 in Kiene & Altman's Subidivison; and Lot of Lot 239 in Davis Farm, a part of
Dubuque; in the City of Dubuque, Iowa, according to the recorded plat thereof,
Page 357 of 865
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 16th day of February, 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 Collateral Assignment of Development Agreement by and between the City
of Dubuque, Iowa and Hitzler Rental, LLC to Bellevue State Bank, LLC, for the property
located at 2541 Central.
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 2nd day of February, 2026.
Adrienne N. Breitfelder, CIVIC, City Clerk
Page 358 of 865
Ian C. Hatch, Assistant Economic Development Director, 1300 Main Street, Dubuque, IA 52001, (563) 589-4105
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 27-26
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA ON A COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT BY
AND BETWEEN THE CITY OF DUBUQUE, IOWA AND HITZLER RENTAL, LLC, TO
BELLEVUE STATE BANK FOR PROPERTY AT 2541 CENTRAL
Whereas, the City of Dubuque, Iowa (City), and Hitzler Rental, LLC entered into a
Development Agreement (the "Agreement") dated October 20, 2025; and
Whereas, the Agreement provides for certain incentives to Hitzler Rental, LLC for the
completion of the Minimum Improvements; and
Whereas, Hitzler Rental, LLC intends to assign the rights to those certain incentives as
collateral to Bellevue State Bank under a Collateral Assignment of Development Agreement
attached hereto; and
Whereas, the City Council of the City of Dubuque finds that consent to the Collateral
Assignment of Development Agreement is in the best interests of the City of Dubuque; and
Whereas, before said consent may be given, Iowa Code Section 364.7 requires that the City
Clerk publish a notice of the City's intent to consent 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 THAT:
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 approve the
Collateral Assignment of Development Agreement by and between Hitzler Rental, LLC and
Bellevue State Bank, to be held on the 16th day of February, 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 City Council agenda may be accessed at https:Hdubuqueia.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 approving the Collateral Assignment of Development Agreement by and between
Hitzler Rental, LLC and Bellevue State Bank
Section 3. The City 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 issuance of said
Obligations.
Section 4. That the notice of the meeting shall be in substantially the form attached hereto.
Passed, approved, and adopted this 2nd day of February, 2026.
Brad M. Cavanagh," Mayor
Attest:
Adrienne N. Breitfelder, ity Clerk