Lower Main Development, LLC Subordination Agreement Copyright 2014
City of Dubuque Consent Items # 7.
ITEM TITLE: Lower Main Development, LLC Subordination Agreement
SUMMARY: City Manager recommending approval of the execution of the
Subordination Agreement with Lower Main Development, LLC for the
mortgage on the property located at 137 Main Street.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ Lower Main Development LLC Subordination Agreement-MVM Memo City Manager Memo
❑ Kane Letter Supporting Documentation
❑ Subordination Agreement Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Lower Main Development, LLC Subordination Agreement
DATE: April 15, 2015
Lower Main Development, LLC is refinancing its mortgage for 137 Main Street. The
previous mortgage was held by Dubuque Bank & Trust and the refinanced mortgage will
be with East Dubuque Savings Bank. The City of Dubuque currently holds a
subordinate mortgage interest in the property at 137 Main Street. Brian Kane, attorney
for Lower Main Development, LLC, requests the City of Dubuque execute a
Subordination Agreement to ensure that East Dubuque Savings Bank retains the first
mortgage position formerly occupied by Dubuque Bank & Trust. The amount that the
City will be agreeing to subordinate its mortgage to is limited to $3,460,000, which is
consistent with its prior subordinate position.
I recommend Mayor and City Council approval of the execution of the Subordination
Agreement with Lower Main Development, LLC for the mortgage on the property
located at 137 Main Street.
z �
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
KANE,NOR13Y & REDDICK, P.C.
ATTORNEYS
Brian J.Kane 2100 ASBURY ROAD,SUITE 2
Les V.Reddick* DUBUQUE,IA 52001-3091
Brad J.Heying
Todd L.Stevenson"
Kevin T.Deeny** Retired:
Bradley&Kane K.Norb
Joseph P.Kane y
Nicholas J.Kane
All admitted in Iowa Phone: (563)582-7980
*Also admitted in Illinois Facsimile: (563)582-5312
"Also admitted in Wisconsin E-mail:bkane@kanemrbylawcom
April 14, 2015
Mr. Michael VanMilligen
City Manager
City Hall, 2nd Floor
1300 Main Street
Dubuque, IA 52001
Re: Subordination Agreement- Lower Main Development, LLC
Dear Mike:
Enclosed is a draft of the Subordination Agreement that we prepared on behalf of our
client, Lower Main Development, LLC, regarding the mortgages that it has with East Dubuque
Savings Bank and the City of Dubuque, Iowa. As you know,the City of Dubuque has a mortgage
interest in the property located at 137 Main Street pursuant to a mortgage dated August 15, 2006
and filed October 13, 2006 as Instrument No. 2006-15995 of the records of the Dubuque County
Recorder. At the time this mortgage was given by Lower Main Development, the City's
mortgage interest was subordinate to the mortgage interest held by Dubuque Bank & Trust
Company pursuant to mortgages filed November 12, 2003 and November 23, 2004 as Instrument
Nos. 30182-03 and 2004-20572,respectively. Lower Main Development has since refinanced its
mortgage obligations with East Dubuque Savings Bank, and requires a Subordination Agreement
with the City of Dubuque, Iowa to ensure that East Dubuque Savings Bank retains the first
mortgage position formerly occupied by Dubuque Bank & Trust. The amount that the City will
be agreeing to subordinate its mortgage to is limited to $3,460,000.00,which is consistent with its
prior subordinate position.
We appreciate your cooperating in obtaining the approval of this Subordination Agreement
by the Dubuque City Council. Please do not hesitate to contact us should you have any further
questions or concerns regarding this matter. Thank you.
Best regards,
KANE,NORBY &REDDI K, P.C.
By
4V-
Brian J. I ane
BJK:meh
Enclosure
cc: Lower Main Development, LLC
Brian J. Kane
Les V. Reddick*
Brad J. Heying
Todd L. Stevenson*
Kevin T. Deeny**
Bradley B. Kane
Joseph P. Kane
Nicholas J. Kane
AU admitted in Iowa
*Also admitted in Illinois
**Also admitted in Wisconsin
Mr. Peter J. Schilling
East Dubuque Savings Bank
475 Cedar Cross Rd
Dubuque, IA 52003
KANE, NORBY & REDDICK, P.C.
A1TORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3091
May 5, 2015
Re: Lower Main Development, L.L.C. / Ci
Dear Pete:
r of Dubuque
Retired:
Gary K. Norby
Phone: (563) 582-7980
Facsimile: (563) 582-5312
E-mainalcane@kanenorbylaw.com
Enclosed please find the original Subordination Agreement dated April 20, 2015 and filed
April 30, 2015 as Instrument No. 2015-5137 in the records of the Dubuque County Recorder's
office. We have retained a copy for our file.
Please do not hesitate to contact us directly should you have any questions. Thank you. •
Best regards,
KANE, NORBY DDICK, RC.
By
Brian J. Kane
BJK:ald
Enclosure
cc: Barry A. Lindahl, Esq.
11111111111111111 11111111111
Doc ID 008228000004 Type GEN •
Kind SUBORDINATION
Recorded: 04/30/2015AEMENT atE04:10:37 PM
Fee Amt: $22.00 Page 1 of 4
Dubuque County Iowa
John Murphy Recorder
File2015-00005137
Prepared by and return to: Brian J. Kane, Kane, Norby & Reddick, P.C. 2100 Asbury Road, Suite 2, Dubuque, IA 52001 563/582-7980
SUBORDLNATION AGREEMENT
This Subordination Agreement is entered into theday of /,, , 2015 by
and between LOWER MAIN DEVELOPMENT, L.L.C. ("LMD") and CITY OF DUBUQUE,
IOWA ("CITY") in favor of East Dubuque Savings Bank ("EDSB").
RECITALS
A. This Agreementpertains to real estate in Dubuque, IA legally described on Exhibit
A attached hereto (the "Real Estate").
B. CITY has advanced or loaned $300,000.00 to LMD pursuant to a real estate
mortgage dated August 25, 2006 and filed August 13, 2006 as Instrument No. 2006-15995 in the
records of the Dubuque County Recorder (the "CITY Mortgage").
C. LMD has obtained a loan from EDSB in the amount of $3,460,000.00 (the "Loan")
and has granted a mortgage to EDSB securing credit in the amount of $5,000,000.00, dated March
5, 2015 and filed March 9, 2015 as Instrument No. 2015-2487 in the records of the Dubuque
County Recorder (the "EDSB Mortgage").
D. CITY has agreed to subordinate the City Mortgage to the EDSB Mortgage to the
extent of the Loan.
NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt of sufficiency of which is hereby acknowledged, the parties
agree as follows:
1. Loan Advance. The borrowing by LMD of the Loan from EDSB and the granting
of the EDSB Mortgage in said amount upon the Real Estate to EDSB is hereby agreed and
consented to by CITY, which CITY acknowledges is a refinancing of LMD's prior mortgage with
Dubuque Bank & Trust Company.
2. Subordination. CITY hereby subordinates the City Mortgage in favor of the
EDSB Mortgage (and the successors and assigns to the EDSB Mortgage) to the extent of
$3,460,000.00. It is expressly acknowledged by CITY that the EDSB Mortgage shall be prior
and superior to the City Mortgage to the extent of $3,460,000.00. Priority and superiority of the
EDSB Mortgage shall not be affected by any renewal, modification, extension or refinancing by
and between EDSB and LMD, however, subordination shall always be limited to $3,460,000.00.
3. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, legal representatives, successors and assigns.
STATE OF IOWA
COUNTY OF DUBUQUE
) ss:
)
Lower Main Development, L.L.C.
By:L
Wayne A. t ggs, Its Presid
East Dubuque Savings Bank
By
Peter J. Schilking
City of Dubuque, Iowa
This instrument was acknowledged before me on this
4
day of/Ma'" , 2015
by Wayne A. Briggs, as President of Lower Main Development, L.L.C.
BRIAN J. KANE
Commission Number 125603
My Comm. Exp. JAN. t2, 2018
STATE OF IOWA
COUNTY OF DUBUQUE ) ss:
Notary Public
olA
On this d day of�„rr� d , 2015, before me, a Notary Public in and for
* the State of Iowa, personally appear d Roy D. Buol and Kevin Firnstahl, to me personally
known, who being by me duly sworn did say that they are the Mayor and City Clerk,
respectively, of the City of Dubuque, Iowa, executing the within and foregoing instrument, that
no seal has been procured by the City; that said instrument was signed on behalf of the City by
* authority of the City Council; and that Rey o1 -and Kevin Firnstahl, as Mayor and City Clerk,
acknowledged the execution of said instrument to be the voluntary act and deed of the City, by it
and by them voluntarily executed.
*Karla A. Braig, Mayor Pro Tem
STATE OF IOWA )
) ss:
COUNTY OF DUBUQUE )
Notary Public in
State of Iowa
This instryment was ackno` ledged before me on this day of
by eL( 173441 , as Syg(,�..� of East Dubuque S 'ngs Bank.
PA _LA ,P. i CCA}f ON
Commission Nu 4 bsr 772419
7 Comm. Exa.
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Waalaeion Ex>
Notary Public
2015
Exhibit "A"
Legal Description of Real Estate
Lot 78a and the North 44 feet of Lot 79 in the City of Dubuque, Iowa, according to the United
States Commissioners' Map thereof