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Washington Court Amendment to Mortgage and DeclarationTHE CITY OF Dubuque T~ - V ~ s~-am~;cacay E Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Washington Court DATE: January 16, 2008 City Attorney Barry Lindahl is recommending approval of the Amendment to Declaration of Submission to Horizontal Property Regime Washington Court Building, Dubuque, Iowa, and an Amendment to Mortgage. This is to facilitate the property exchange with respect to the parking lot at the Washington Court project, home of the Crescent Community Health Center I concur with the recommendation and respectfully request Mayor and City Council approval. ~ ~ 'V '~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager THE CITY OF DUB E Masterpiece on the Mis~ssippi ~ BARRY LINDA CITY ATTORN To: DATE: RE: Y MEMORANDUM Michael C. Van Milligen City Manager January 3, 2008 Washington Court In connection with the agreement by and among the City of Dubuque, Iowa, Washington Court, LP, and Pine Box, LLP, the City and Washington Court agreed to a property exchange with respect to the parking lot for the project. The Washington Court property was held in a horizontal property regime, i.e. a condominium. In order to carry out the property exchange with the City, it was necessary for Washington Court to amend its condominium documents as well as amending a mortgage between the City and Washington Court. This was further complicated by the fact that Washington Court needed to obtain the consent of Dubuque Bank & Trust, American Trust & Savings Bank, and the Iowa Department of Economic Development for the property exchange. The attorney for Washington Court has now completed the documents for the amendment to the condominium and the amendment to the mortgages. Enclosed is an Amendment To Declaration Of Submission To Horizontal Property Regime Washington Court Building, Dubuque, Iowa, and an Amendment To Mortgage. Both of these documents need City Council approval. I would request that the two documents as well as the attached resolution approving the documents be submitted to the City Council for consideration and approval at the January 22, 2008 City Council meeting. Enclosure cc: Cindy Steinhauser, Assistant City Manager F:\USERS\tsteckle\Lindahl\Washington Court LP (Pine Box LLLP)UVIVM_AmendDeclarationSubHorizProperty_010308.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR ~/IEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org Preparers Barry A. Lindahl, Esq. Address: Suite 330, 300 Main Street. Dubuque, IA 52001 Telephone: (563) 583-4113 RESOLUTION NO. 20-08 APPROVING AN AMENDMENT TO DECLARATION OF SUBMISSION TO HORIZONTAL PROPERTY REGIME WASHINGTON COURT BUILDING, DUBUQUE, IOWA, AND AN AMENDMENT TO CERTAIN MORTGAGES BETWEEN THE CITY OF DUBUQUE, IOWA AND WASHINGTON COURT, LP WHEREAS, by Resolution No. 563-06, the City Council approved an Agreement between the City of Dubuque, Iowa, Washington Court, LP, and Pine Box, LLP for the exchange of certain property in connection with the Crescent Community Health Center; and WHEREAS, the parties agreed to exchange certain property owned by them for a parking lot to serve the Crescent Community Health Center; and WHEREAS, it is necessary for Washington Court, LP to amend its Declaration of Submission to Horizontal Property Regime to accommodate the exchange of property; and WHEREAS, it is necessary for the City of Dubuque to consent to the Amendment to the Declaration of Submission; and WHEREAS, it is further necessary for the City of Dubuque to consent to an amendment to two mortgages held by the City of Dubuque with respect to Washington Court, LP property to be exchanged in order to accommodate the exchange of property; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, AS FOLLOWS: Section 1. The Amendment To Declaration Of Submission To Horizontal Property Regime Washington Court Building, Dubuque, Iowa, attached hereto is hereby approved. Section 2. The Amendment To Mortgage Between the City Of Dubuque, Iowa and Washington Court, LP, attached hereto is hereby approved. Passed, approved and adopted this 22nd day of January, 2008. Ric W. .Jones, Mayor Pro-Tem Attest: Jeanne F. Schneider, City Clerk F:\USERS\tsteckle\Lindahl\Washington Court LP (Pine Box LLLP)\ResolutionApprovingAmendDedarationSubHorizPropBAmendMort 010308.doc Prepared by: Michael L. Zenor, Attorney at Law, PO Box 317, Spencer, IA 51301; Telephone: 712/262-1187 Return to: Michael L. Zenor, Attorney at Law, PO Box 317, Spencer, IA 51301; Telephone: 712/262-1187 AMENDMENT TO DECLARATION OF SUBMISSION TO HORIZONTAL PROPERTY REGIME WASHINGTON COURT BUILDING, DUBUQUE, IOWA WHEREAS, a Declaration of Submission to Horizontal Property Regime of Washington Court Building, Dubuque, Iowa, was filed on February 16, 2006, as Document No. 2006-2304 of the land records of Dubuque County, Iowa, which declaration submitted the following described property to the regime, .to wit: Lots 102, 103, 104, 105 and 106, in East Dubuque, an Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof. AND Lots 159, 160 and 161 in East Dubuque, an Addition to the City of Dubuque, Iowa, according to the recorded Plat thereof, and; WHEREAS, Washington Court, L.P. (hereinafter referred to as "Washington Court") and Pine Box, LLLP (hereinafter referred to as "Pine Box"), are all of the owners of all of the units in the Horizontal Property Regime, and; WHEREAS, Lots 159, 160, and 161 of the property submitted to the regime were intended to be used in the regime as a parking lot and thus under Section 2.03 of the said Declaration, were made a part of Unit B, and; WHEREAS, the city of Dubuque has now proposed to these parties to exchange certain property now owed by the city of Dubuque for the North half of Lot 159, and all of Lots160 and 161, which property is now described as Washington Court ls` Addition to the city of Dubuque, Iowa, and; WHEREAS the parties believe the proposed exchange is in the best interests of the parties and of the regime as a whole. NOW THEREFORE, the parties do hereby amend the Declaration of Submission in the following respects and particulars to accommodate the aforedescribed exchange of property. This Amendment shall be effective upon the consummation of the agreement for exchange of property by and between the city of Dubuque, Iowa, Washington Court, L.P., and Pine Box, LLLP, and in the event that said exchange does not take place, this Amendment shall be void and of no effect. 2. All references in said Declaration of Submission to the following described property, are hereby deleted, to-wit: Lots 159, 160 and 161 in East Dubuque, an addition to the City of Dubuque, Dubuque County, Iowa, according to the recorded plat thereof, and said property is replaced by reference to the following described real property, to-wit: Washington Court 2"d Addition to the city of Dubuque, AND Lot 159B in East Dubuque, an addition to the city of Dubuque, Dubuque County, Iowa. 3. Notwithstanding any provisions to the contrary in the Declaration of Submission to Horizontal Property Regime, the parties, as all of the owners of all rights and interests in the Horizontal Property Regime, shall be and are hereby authorized to jointly execute and deliver to the city of Dubuque, a warranty deed, conveying Washington Court 1St Addition to the city of Dubuque, and upon the execution and delivery of said deed, said parcels shall be and are hereby removed from the Horizontal Property Regime and are replaced in the Horizontal Property Regime by Washington Court 2"d Addition to the city of Dubuque AND Lot 159B in East Dubuque, an addition to the city of Dubuque, Dubuque County, Iowa. 4. The property acquired from the city of Dubuque as a result of this exchange shall become a part of Unit B of the Horizontal Property Regime; and the property previously described as the South Half of Lot 159 shall remain a part of Unit B. Section 2.05 of the Declaration of Submission is amended to read as follows: 2.05 Legal Descriptions. The Units shall be conveyed by the following legal descriptions: Unit A. Unit "A" in Washington Court Building Condominium located on Land submitted to a Horizontal Property Regime in a Declaration of Submission filed in the Office of the Dubuque County, Iowa Recorder on the 16th day of February, 2006, as Instrument No. 2006-2304, located upon a parcel of land more particularly described as follows: Lots 102, 103, 104, 105 and 106, in "East Dubuque", an Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof, AND Washington Court 2"d Addition to the city of Dubuque, AND Lot 159B in East Dubuque, an addition to the city of Dubuque, Dubuque County, Iowa, together with an undivided twenty-five percent (25%) interest in and to the Common Elements and facilities of the Regime. Unit B. Unit "B" in Washington Court Building Condominium, located on Land submitted to a Horizontal Property Regime in a Declaration of Submission filed in the Office of the Dubuque County, Iowa Recorder on the 16th day of February, 2006, as Instrument No. 2006-2304, located upon a parcel of land more particularly described as follows: Lots 102, 103, 104, 105 and 106, in "East Dubuque", an Addition in the City of Dubuque, Iowa, according to the recorded Plat thereof, AND Washington Court 2°d Addition to the city of Dubuque, AND Lot 159B in East Dubuque, an addition to the city of Dubuque, ~ Dubuque County, Iowa, together with an undivided seventy-five percent (75%) interest in and to the Common Elements and facilities of the Regime. 6. By execution of this Amendment all mortgagees and third parties having bona fide liens of record or other valid interests regarding any unit ownerships agree to the modifications described herein. Signed this day of , 2007. PINE BOX, LLLP, WASH R L. ., BY: BY: ` , John Gronen Doug La oun STATE OF IOWA, COUNTY OF } SS This instrument was acknowledged before me on this day of , 2007, by John Gronen as President of Gronen Restoration, Inc., the General Partner of Pine Box, LLLP, a limited liability limited partnership. Notary Public -State of Iowa STATE OF IOWA, COUNTY OF CLAY } SS This instrument was acknowledged before me on this ~~ day of , 2007, by Doug LaBounty as President of Community Housin Initiatives, Inc., the General Partner of Washington Court, L.P., a limited partnership. ~ / /1 ~ ~ ) NStarv Public - ate of MICHAEL L. ZENOR =F Commission Number 740634 My Commission F.~kes May 9, 2009 ~~ ~ ~ . Preyared by Michael L Zenor Attornev at Law PO Box 317 Spencer, IA 51301-0317, Phone: 712/262-1187 Return to: Michael L. Zenor, Attorney at Law, PO Box 317, Spencer, IA 51301-0317 AMENDMENT TO MORTGAGE WHEREAS, the City of Dubuque, Iowa, is the holder and owner of two mortgages, described as follows: a. A mortgage originally granted in favor of Community Housing Initiatives, Inc., said mortgage being dated January 23, 2006, and filed February 3, 2006, as Instrument No. 2006-1674 of the land records of Dubuque County, Iowa, and having been assigned to the city of Dubuque by Instrument No. 2006-5102, dated January 23, 2006, and filed April 11, 2006, in the land records of Dubuque County,. Iowa, b. A mortgage in favor of the City of Dubuque, Iowa, said mortgage being dated March 27, 2006, and filed March 29, 2006, as Instrument No. 2006-4416 of the land records of Dubuque County, Iowa, and; WHEREAS, both of said mortgages encumber Unit B in the Washington Court Building Condominium, and; WHEREAS, certain real estate has been withdrawn from the Horizontal Property Regime and replaced by certain other real estate, which causes the legal description of Unit B to be changed, and; WHEREAS, the parties desire to enter into this agreement to amend the legal description contained within the two above-described mortgages. NOW THEREFORE, the parties agree that the two mortgages described above are hereby amended to reflect the new and correct legal description of the property encumbered. The new legal description to be inserted in lieu of the previous legal description is as follows, to-wit: Unit "B" in Washington Court Building Condominium, located on Land submitted to a Horizontal Property Regime in a Declaration of Submission filed in the Office of the Dubuque County, Iowa Recorder on the 16th day of February, 2006, as Instrument No. 2006-2304, located upon a parcel of land more particularly described as follows: Lots 102, 103, 104, 105 and 106, in "East Dubuque", an Addition in the T~-+'L ~ City of Dubuque, Iowa, according to the recorded Plat thereof, AND Washington Court, 2nd Addition to the city of Dubuque, AND Lot 159B in East Dubuque, an addition to the city of Dubuque, Dubuque County, Iowa, together with an undivided seventy-five percent (75%) interest in and to the Common Elements and facilities of the Regime. In all other respects, both of said mortgages remain unchanged. City of D ue, Iow W By: B: ayor 1~.rJ ,T~r~? -~,G . ~ ~s At t: eanne F. Schneider, City Clerk STATE OF IOWA, COUNTY OF ~} SS This instrument was acknowledged before me on this~y of 200,'~by Be~B. B-~ol as Mayor of the City of Dubuque and Jeanne F. neider, as City Jerk, of the City of Dubuque, Iowa. -~" KEG/IN S. FIRN ~ AHL Notary Publi - tate of ~o ~ e `} F' COMh~ISSION N0.745295 ~ r MY COMMISSION EXPIRES STATE OF IOWA, COUNTY OF CLAY } SS ~ = " - 2~~2~~° -~/~ t ~ w " This instrument was acknowledged before me on this ~~' day of. ~ c 2007, by Doug LaBounty as President of Community Housing Initiatives, Inc., the General Partner of Washington Court, L.P., a limited partn`rs~~ . Notar~Public -State o~~ ~ MICHAEL L. ZENOR My ~ ^ 740634 May 9, 2009E~~ ,•. APPROVALS 1. The city of Dubuque, Iowa, as holder and owner of a mortgage originally granted in favor of Community Housing Initiatives, Inc., said mortgage being dated January 23, 2006, and filed February 3, 2006, as instrument No. 2006-1674 of the land records of Dubuque County, Iowa, and having been assigned to the city of Dubuque by instrument No. 2006-5102 dated January 23, 2006, filed April 11, 2006, in the land records of Dubuque County, Iowa, and also the holder and owner of a mortgage in favor of the city of Dubuque, Iowa, said mortgage being dated March 27, 2006, and filed March 29, 2006,. as instrument No. 2006-4416 in the land records of Dubuque County, Iowa, does hereby consent to this Amendment of the Horizontal Property Regime. 2. The Iowa Department of Economic Development, as holder and owner of an Agreement .for Covenants and Restrictions acknowledged Apri17, 2006, and filed April 17, 2006, as instrument No. 2006-5352 of the land records of Dubuque County, Iowa, and further as the holder and owner of a mortgage acknowledged on March 13, 2006, and filed April 17, 2006, as instrument No. 2006-5353 of the land records of Dubuque County, Iowa, does hereby consent to this modification of the Horizontal Property Regime. 3. Dubuque Bank and Trust, as holder and owner of a mortgage dated June 16, 2006, and filed June 20, 2006, as instrument No. 2006-9235 of the land records of Dubuque County, Iowa, does hereby consent to this modification of the Horizontal Property Regime. 4. American Trust and Savings Bank, as holder and owner of a mortgage dated May 4, 2007 and filed May 8, 2007, as instrument No. 2007-6565 of the land records of Dubuque County, Iowa, does hereby consent to this modification of the Horizontal Property Regime 5 Iowa Finance Authority, as holder and owner of a Land Use Restrictive Covenants Agreement for Low Income Housing Tax Credit Program dated Apri19, 2007 and filed May 24, 2007, as instrument No. 2007-7474 of the land records of Dubuque County, Iowa, does hereby consent to this modification of the Horizontal Property Regime CITY OF DUBUQUE, IOWA, By: ~iC Lv• ~",vc.s Attest: r~ anne F. Schneider, City Clerk STATE OF IOWA, COUNTY OF } SS ~ i ~iC ~/ ~ -tip- / .e ~iLe - /..~~ This instrument wy~s acknowledged uefo~c ~~~e ors tl-~is ~ day of 200~by R~y~. Btrai as l~r of the City of Dubuque and Jeanne F. Schneider, s City Clerk, of the City of Dubuque, Iowa. ~~ *Q.1Al a KEVIN S. FIRNSTAHL c . o ~ COMMISSION N0.7452.95 z~ ~ MY COMMISSION EXPIRES Notary u lic -State of Iowa w' 2i~zilo DUBUQUE BANK AND TRUST, BY: STATE OF IOWA, COUNTY OF } SS This instrument was acknowledged before me on this day of , 2007, by as of Dubuque Bank and Trust. Notary Public -State of Iowa IOWA DEPARTIT OF ECONOMIC DEVELOPMENT, Q~J'-{-~ /)') - ~~ _ ~l.~ STA OWA, COUNTY OF (~ ~ } SS This instrument was ac owledg d before me Qn this ~ day of ~ , 2007, by rt ~} ~~ as ~ ~V . /~m ~ n • of Iowa Department of Economic Development. ~'µ"~ ~ ANITA LEMONS ~ COMMISSION N0.225659 * * MY COMMISSION IXP/RES iow~ NOVEMBER 22, 2008 Notary Public -State of Iowa AMERICAN TRUST AND SAVINGS BANK, BY: STATE OF IOWA, COUNTY OF } SS This instrument was acknowledged before me on this day of , 2007, by as of American Trust and Savings Bank. Notary Public -State of Iowa ~. , IOWA FINANCE AUTHORITY, BY: STATE OF IOWA, COUNTY OF Po ~ I~L } SS This instrument was acknowledged before me on this Z ~ day of /VOVe-+m b~~' , 2007, by ~rcX L~ Ih,~lls as ~~~ ~ ~ ~'v. of Iowa Finance Authority. . /~ Notary Public State of Iowa ,~ tau K. ~~Rr ~ ~ ~ ~n Zo 0