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1199 Central Avenue, Release of Real Estate MortgageCity of Dubuque City Council ITEM TITLE: SUMMARY: SUGGUESTED DISPOSITION: ATTACHMENTS: Copyrighted August 17, 2026 CONSENT ITEMS # 14. 1199 Central Avenue, Release of Real Estate Mortgage City Attorney recommending City Council approval of the attached Release of the Real Estate Mortgage for 1199 Central Avenue. Receive and File; Approve 1. Council_1199 Central Paid in Full _Release Mortgage_8-12-26 2. scans@kanenorbylaw.com_20260810_170808 THE CITY OF DUB E Masterpiece on the Mississippi CRENNA M. BRUMWELL, ESQ. CITY ATTORNEY TO: MAYOR BRAD M. CAVANAGH AND MEMBERS OF THE CITY COUNCIL DATE: AUGUST 12, 2026 RE: 1199 CENTRAL AVENUE, RELEASE OF REAL ESTATE MORTGAGE Dubuque All•A�eNea 6Iq 1ml'o I I I 2007-2012.2013 2017*2019 Lloyd Singletary & Virtual Velocity, LLC obtained a financing package from the City of Dubuque to assist in refurbishing the property at 1199 Central Avenue. The City loaned $300,000 and obtained a mortgage on the property; the City was in second position and later subordinated to Dubuque Initiatives which also contributed to the project. A foreclosure petition was eventually filed, and prior to a foreclosure judgment a sale of the property occurred. The City was paid in full following the real estate closing. Currently, the City needs to release its mortgage in County records. I respectfully request City Council approval of the attached Release of the Real Estate Mortgage and authorize the Mayor to sign. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org Brian J. Kane Brad J. I-Ieying Todd L. Stevenson* Kevin T. Deeny** Bradley B. Kane Joseph P. Kane Nicholas J. Kane David J. Kane All admitted in Iowa *Also admitted in Illinois **Also admitted in Wisconsin KANE, NORBY & RE,DDICK, P.C. ATTORNEYS 2100 ASBURY ROAD, SUITE 2 DUBUQUE, IOWA 52001-3091 Retired: Gary K. Norby Les V. Reddick Phone:(563)582-7980 Facsimile: (563)582-5312 E-mail: tstevensongkanenorbvlaw com TO: CRENNA BRUMWELL, DUBUQUE CITY ATTORNEY FROM: TODD STEVENSON, KANE, NORBY & REDDICK, P.C. RE: 1199 CENTRAL AVE V. CITY OF DUBUQUE ET AL DATE: AUGUST 10, 2026 FACTS This case arose out of a financial transaction involving Lloyd Singletary and Virtual Velocity, LLC ("Borrowers"), Borrowers obtained a financing package in order to acquire and refurbish property located at 1199 Central. As part of the financing package the City of Dubuque loaned $300,000 to the Borrowers and obtained a mortgage on the real estate. The mortgage was second to a mortgage given by Borrowers to their primary lender. The City of Dubuque later subordinated its mortgage to Dubuque Initiatives which also loaned funds to the Borrowers for completion of the project. The Borrowers defaulted in their obligations to the primary lender. As a result thereof, a Petition to foreclose its mortgage was filed in the Iowa District Court in and for Dubuque County. The City of Dubuque, along with the Borrowers and their lenders, was named as a Defendant in that litigation. Prior to any ruling on the Petition, the property was sold by the Borrowers to a third party. That transaction closed on July 31, 2026. As a result of the sale, the City of Dubuque was paid in full. A check was issued in the amount of $300,000 from the buyer's lender, Dupaco Community Credit Union, to the City of Dubuque. The lawsuit was then dismissed by the Plaintiff. The dismissal terminates the litigation. A copy of the Order of Dismissal is provided herewith. Because the City was paid in full, a Release of its mortgage must be recorded in the records of the Dubuque County Recorder. A draft of the Release is attached hereto. ACTION REQUESTED It is our recommendation that the Release be approved by the council, and signed by the mayor. The Release is required by Iowa law since the debt has been paid in full. If the Release is not recorded, action could be commenced against the City of Dubuque in order to clear the buyer's title to the property. Prepared by/Return to: Todd L. Stevenson, Kane, Norby & Reddick, P.C., 2100 Asbury Road, Suite 2, Dubuque, IA 52001, (563) 582-7980 RELEASE OF REAL ESTATE MORTGAGE The undersigned, the present owner of the mortgage hereinafter described, does hereby acknowledge that a certain mortgage bearing date of October 3, 2023 made and executed by Virtual Velocity, LLC to City of Dubuque, Iowa and Recorded in the records of the office of the Recorder of the County of Dubuque, State of Iowa, as document reference number 2023-9845 on October 17, 2023 is redeemed, paid off, satisfied and discharged in full. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. Dated August 1Q , 2026. CITY OF DUBUQUE, IOWA p� Brad gh, Mayor STATE OF IOWA, COUNTY OF DUBUQUE This record was acknowledged before me on August , 2026 by BRAD M. CAVANAGH as Mayor of City of Dubuque. ADRIENNE N. IREiTFELDER Commission Number 1269M Signature of Notary Public My Comm. Es'. Mhe Iowa State Bar Association 2026 Form No. 129, Release of Real Estate Mortgage IowaDocs® Revised January 2016 E-FILED EQCV118141 - 2026 AUG 03 01:24 PM DUBUQUE CLERK OF DISTRICT COURT Page 1 of 2 IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY 1199 CENTRAL AV SERIES OF LOAN Plaintiff vs DUBUQUE CITY OF RICHARD BIECHLER ELECTRIC LLC SKOLD CONSTRUCTION SERVICES INC PARTIES IN POSSESSION LLOYD G SINGLETARY III VIRTUAL VELOCITY, LLC DENISE ERSCHEN DUBUQUE INITIATIVES MICHAEL E ERSCHEN Defendant Case No: 01311 EQCV118141 ORDER At the request of the Plaintiff, this matter is now dismissed with prejudice at Plaintiffs cost. COPIES: CPPLDF E-FILED Case Number EQCV118141 Type: EQCV118141 - 2026 AUG 03 01:24 PM CLERK OF gl$TB1CT COURT State of Iowa Courts DUBUQUE Page 2 of 2 Case Title 1199 CENTRAL AV SERIES OF LOAN LLV VS VIRTUAL VELO DISMISSED PER COURT So Ordered Thornaass A. Bitter, District Caurt judge; First judicial District of Iowa Electronically signed on 2026-08-03 13:24:33