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Release of Mortgage - 1500 Radford Road_Freiburger Copyright 2014 City of Dubuque Consent Items # 16. ITEM TITLE: Release of Mortgage - 1500 Radford Road SUMMARY: City Manager recommending approval of a resolution authorizing the Mayor to sign the Release of Real Estate Mortgage. RESOLUTION Approving a Release of Mortgage by the City of Dubuque, Iowa on the property at 1500 Radford Road owned by Kevin F. Freiburger and Lee Ann Freiburger (Precision Tool & Engineering, Inc.) SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ 1500 Radford Road Release of Mortgage-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Recorded Mortgage Supporting Documentation ❑ CDBG Agreement Supporting Documentation ❑ Promissary Note Supporting Documentation ❑ Release of Mortgage Supporting Documentation ❑ Resolution Resolutions 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: Release of Real Estate Mortgage to Kevin F. Freiburger and Lee Ann Freiburger (Precision Tool & Engineering, Inc.) on the Property at 1500 Radford Road DATE: October 14, 2015 Precision Tool & Engineering, Inc. obtained a $30,000 Community Development Block Grant loan from the City to assist in building its facility at 1500 Radford Road. This loan was secured by a mortgage on the property at 1500 Radford Road. According to Finance Director Ken TeKippe, this loan was repaid in full in a timely fashion, however, the mortgage was not released by the City upon final payment of the loan. Economic Development Director Maurice Jones recommends City Council approval of a resolution authorizing the Mayor to sign the Release of Real Estate Mortgage. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director Dubuque Economic Development Department THE CITY OF 50 West 13th Street AII-AwftlitY Dubuque,Iowa 52001-4864 DUB3 &kE1 I Office(563)589-4393 TTY(563)690-6678 ® http://www.cityofdubuque.org Masterpiece on the Mississippi 200.2012.2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Release of Real Estate Mortgage to Kevin F. Freiburger and Lee Ann Freiburger (Precision Tool & Engineering, Inc.) on the Property at 1500 Radford Road DATE: October 13, 2015 INTRODUCTION BACKGROUND Precision Tool & Engineering, Inc. obtained a $30,000 Community Development Block Grant (CDBG) loan from the City and an additional $92,000 loan from ECIA Business Growth, Inc. to build its facility at 1500 Radford Road in 1996-1997. The loans were secured by a mortgage on the property at 1500 Radford Road. DISCUSSION Jerome Schroeder, the Economic Development Director at ECIA, states that the $92,000 loan was paid in full in 2007. Consequently, ECIA released its interest in the mortgage on October 24, 2007. According to the Finance Director Ken TeKippe, the City's $30,000 loan was repaid in full in a timely fashion. However, the mortgage was not released by the City upon final payment of the loan. The property owners, Kevin F. Freiburger and Lee Ann Freiburger, now wish to sell the property and have requested a mortgage release. RECOMMENDATION/ ACTION STEP I recommend that the City Council approve the attached resolution, authorizing the Mayor to sign the attached Release of Real Estate Mortgage. RESOLUTION NO. 361-15 APPROVING A RELEASE OF MORTGAGE BY THE CITY OF DUBUQUE, IOWA ON THE PROPERTY AT 1500 RADFORD ROAD OWNED BY KEVIN F. FREIBURGER AND LEE ANN FREIBURGER (PRECISION TOOL & ENGINEERING, INC.) Whereas, in1996, the City of Dubuque (City) entered into a Loan Agreement with Precision Tool & Engineering, Inc. (the Company) for the expansion and relocation of the Company to the Dubuque Industrial Center; and Whereas, City agreed to provide Company with a $30,000 Community Development Block Grant (CDBG) low interest loan; and Whereas ECIA Business Growth, Inc. agreed to provide Company with a $92,000 loan; and Whereas, the Loans were secured by a mortgage on the property legally described as Lot 1 of Dubuque Industrial Center 10th Addition, in the City of Dubuque, Iowa, locally known as 1500 Radford Road (the Property); and Whereas, the Loans were paid in full in a timely manner; and Whereas ECIA Business Growth, Inc. released its interest in the mortgage on October 24, 2007; and Whereas, Company now wishes to sell the Property and has requested a release of the mortgage by City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Release of Mortgage attached hereto is hereby approved. Section 2. The Mayor is authorized and directed to execute the Release of Mortgage on behalf of the City of Dubuque. Passed, approved and adopted this 19th day of October, 2015. Attest: -vin S. Fin .t City Clerk Roy D�uol, Mayor aPS�TFm RELEASE OF REAL ESTATE MORTGAGE THE IOWA STATE BAR ASSOCIATIONCANSI Fort, No. 129 7 = Recorder's Cover Sheet SSOCIA'tto Preparer Information: (Name, address and phone number) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 (563) 583-4113 Taxpayer Information: (Name and complete address) Kevin F. Freiburger and Lee Ann Freiburger Return Document To: (Name and complete address) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 Grantors: Grantees: City of Dubuque, Iowa Kevin F. Freiburger Lee Ann Freiburger Legal description: Document or instrument number of previously recorded documents: 10784-96 oO The Iowa State Bar Association 2013 IOWADOCB® THE IOWA STATE BAR ASSOCIATION Official Form No. 129 Ba A. Llhl nda FOR THE LEGAL EFFECT OF THE USE OF THIS FORM, CONSULT YOUR LAWYER The acknowledge 1996 undersigned, , made RELEASE the present that a certain and executed OF owner(s) mortgage by Kevin REAL ESTATE MORTGAGE of the mortgage hereinafter described, do hereby bearing date of the llth day of September , F. Freiburger and Lee Ann Freiburger, husband and wife and City of Dubuque, Iowa and Recorded on in the records of the office of the Recorder of of Iowa, recorded as document reference number the 11th day of September , 1996 , is the County 10784-96 of Dubuque State redeemed, Words singular context. Dated NOTE: For STATE This record by Roy D. paid and or plural this partial OF off, satisfied and discharged phrases herein, including number, and as masculine, day of a, in full. acknowledgment hereof, shall feminine or neuter gender, be construed as in the according to the OUBUQUE, IOWA CO release of real estate mortgage, Iowa , COUNTY see Form No.130 CITY Eby: Ro D. Buol, Mayor Attest: Ke in . Firns : h1 ' ty Clerk OF Dubu•ue was acknowledged before Buol, Mayor of the City of Dubuque, me this lihday of ,a f-, , e),/5 , Iowa . STATE OF This record by Kevin OF City -eh (7-712 2 nr0" PAMELA J. McCARRON . Commission Number 7r,:,,, My COMM. Ex}. IowaCOUNTY 772419 y before of the Iggnaiure o'` otary Public D bu ue was acknowledged S. Firnstahl, City Clerk me this day of ' Y', 20I b, , of Dubuque, Iowa . a _bb ' j �,` AF Ip H,. PAMELA J. �cCAa1oN Commission Nu bpr 772419 Liiy'Comm. Exp. �--: '0 Signature of tart' Public © The Iowa State Bar Association 2013 129 RELEASE OF REAL ESTATE MORTGAGE IOWADOCS® Revised August 2013 r THE IOWA STATE BAN AOSOOlAT10X .~ MTHE heard.ofEOT OF TM 113E OF i Ofdelal FomtNo.129 03x32 REYNOLDS b KENUNE TNY TORY,C0111"TVOW MWYN '06 SEP 11 PM 12 00 KATHY FLYNNTHURLOW COUNTY RECORDER Mi.00 j DUBUQUE CO., IOWA FEES k�ifwmaUon TW A. MCtrthy 222 Fischer Bldg. Dubuque 319-556-'8000 i �duaf s� — creat Address city, phone ti=ar _ sPa""OV T0LWE j . FOR RECORitER MORTGAGE THIS MORTGAGE is made between BIM= and TM AM E=Bim= biny-nd mid wife, I 1 ("Mortgagors"i..aM .�'e.,Ta,n tati47WF!ft.G(gam nn ai]d.c=rz imaiz, Y= t'Mortgagoal. , if thin box Is chocked,this Mortgage is Purchase Money Mortgage as defined in the Iowa Code. 1.Grant of Mortgage end Security Interest.Mortgagors hereby sell,convey and mortgage unto Mortgages,and grant a security interest to Mortgages in the following described property: s. Lapid wad Buildings, All of Mortgagors' right, dxls and intsrost to and to the following described real petato situated in County,Iowa(the"Land"); 'Lot l Of n>,JBUQM INA STRTAL (:kNl'Eit 10th AADMON, in the City of Dttbuque, Iowa, acwrdinq to the recorded Plat thereof, and cif building*, structures and improvements now standing or at,say time heroonar oanstrooted or placed upon the Land(the "1Buildinge'b Including all hereditalment$ easarrlant#,appurtenances,tip. n€(gilts,mineral rights. water rights,rights in and to the lands lying In streets,alleys and made a4ohring the tend,estates and other rights and Interests now or hereafter belonging to or in arty way pattainfng to tho Ls 1, b,Personal Property.All flxtures and other personal property integrally belonging to,or hereafter becoming an integral part at the Land or atuildings,whether attached or detached,Including but not limited to,light fixtures,anodes,roads,blinds.Venetian urinals, tywWage,storm windows, screens,linaleum, water saftoners,automatic hosting and dr-conditioning equipment and alt Proceeds,products,Increase,issue,aaoesaions,attachments,accessories,pans,additions,repairs,replacements and substitutes of,to,and for the foregoing(the"Personal Property"). o,Rsysnue# and Income,All rents,issues, profits,losses,condemnation awards and Insurance proceeds now or hereafter ad3(ng from the ownership,occupancy or use of the land,Buildings and Personal Property,or any part thereof(the'Revenues and Income"), TO HAVE AND TO HOLD the Land, Buildings,Personal Property and Revenues and income(collectively called the"Mortgaged Propotty"),together with all privileges, hereditaments thereunto now at hereafter belonging, or in any way appertaining and the products and proceeds thereof,unto Mortgagoo,Its successors and assigns. 2.,Ob4otlww.This Mortgage secures the following(Mralnoftar coliootively referred to as the"Obligations"): a,The payment of the loarartedo by Mortgagee to prwi#UM Tool fi %ginib.+ring jU *** evidenced by apromissory note dated^S UeMbEIr 19_9fi in the prinoipal amount of 92 FQa4.OQ whit a due date of Se9t i ber[(,, 2006 , any renewals, extensions,modificadans or refinancing thereof and any promissory totes Issued in substitution therefor;and the $30,000 note dated 8/30/96 to City of DAujue r ; b.AN ager obligations of Mortgagors to Mortgagee,now existing or bereaftrr arising,whether direct or irdkoot,`contingent or absolute and whether se maker or surety,including,but not limited to,future advances and amounts advanced and expenses Incurred by Mortgages pursuant to this Mortgage. 31I ***Surd guaranteed by I(eVin F. Freihzger and Lee Ann rreibwcjer 3.Ropresontatlons and Warrentlas of Mortgagor*.Mortgagors represent,warrant and covenant to Mortgagee that(1)Mortgagors haild clear title to the Mortgaged Property and tide In foo simple in the Land;pi)Mortgagors have the tight,power and authority to exeauts this mortgage and to mortgage,and grant a security imamot in the Mortgaged Property ((i()the Mortgaged PropertY is free and clear of sit liens and enootntretacas, oxoapt for real estate taxes not yet delinquent and except as otherwise stated In subparagraph 1e. haroitt;gv}Mortgagors will'warrant and delarai 04 to tits Mortgaged Property and the lien and priority of this Mertgoga against all cla(mo and doirtands of all persons, whether now #",Ing or hereafter arising; and (v) ail buildings and hrlprovamaats now or horsoilor loomed on the Land ara4 or wid be,looatod entirety within the boundaries of the Land. 4,Payment attd Parformanoe of tine 0411WIOVIC Wttgagom wall pay ail amounts payable under the Obligations in accordance with the tarmo of the Obligations when and at due and:will timoly perform all other abligatttms o!Mangagors under the Obligations.The Provisions of the Obligations are hereby Imarporatod by reference Into this Wrtgogre as It fully set forth herein. B,"fait##.Mortgagore shall pay each installment of all taxes and spootal assossmants of every kind,now or hereafter levied against the Mortitagod Property before the same-baoome dolinquont.without notice or demand,and shag deliver to Mortgagee proof of such payment whIdn fifteen(IS)days after the dato In w1goh such tax or oasossmont becomes delinquent. d,Lfsne.Mortgagors shalt not create,hour or sultar to exist any lion,encumbrance,security Interest or charge on the Mortgagod Property or any part thereof which might or could be hold to be equal or prior to the lien of this Mortgage,tether than the lien of ournm O The Iowa State Sar Aaaaria6en 17$MONM E Cr LPS R-aaa 3.011104 wow tttwm,bar,is" root eotata taxa*and installments of spealal assessments with respect to whiah no penalty to yet povabte.Mortgagor*shalt pay.when duo,the claims of all parsons supplying labor or motorists to or In connection with the Mortgaged Property. 7.Co!"Oon o,with idem. Mortgagors shell camply with all present and future statutes, laws, rules, orders, regulations and ordinances affecting the Mortgaged Property,any part thereof or the use thoteaf. S.thtrmitted Contests.Mortgagors chap not he required to(1)pay any tax„assessment or other charge referred to In paragraph d hslotrf,Oil discharge or temeve any lien,encumbrance or charge referred to in paragraph t#hereof,or comply with any statute,tow, ruto,molation or ordinance referred to In porogroph 7 hereof,so long as mortgagars shall contest,In good faldt,the existence,amount or the validity thereof, the amount of damages caused tharatry at the extent of Mortgagors" liability thorsfat, by appropriate pt000eddngo which shall operate during the pendency thereof to prevent (A) the collection of, or other realization upon the tsar, assessment,charge or gen,encumbrances or charge so contested.I$)the vote,forfeiture or toss of the MoIrtgaged Property or any part thereof,and(C)any interference,with the cos of 000upency of the Mortgaged Property or any part thereof.Mortgagors shall give prompt written notice to Monpagee of the eommoncemont of•try contest referred to In this paragraph S. S.tare 0 Propsny.Mortgagors shall take good oars of the Mortgaged Property,she#1 keep the Sudiddngs and Personal Property now at later placed upon the Mortgaged Property In goad and reasonable repair and sleep not tnnrre-,destroy,or remove either ft Widings of Personal.Property during the term of this Mortgage.Mortgagors shall not snake any material attention to the Mortgaged Property without tfaa prior written consent of Mortgages, a,Rinke to be Insured.Mortgagors,at their ads,cost and expanse,shall maintain Insurance on the RuNings and other ve- monts now existing or hereafter erected on the herald and on the Parootad Property included In tine Mortgaged Propotty against Cosa by fire:extended covers"podia and such rather haszatds as Mortgagee may from time to time require,such hunmonso to have a *Replacement Cost' endorsement attachedthereto, with the amount of the Insurarma at toast aquol to the balance of Alia Obligations.At Mortgagors'option,such policy may have a oolasuranoo clause of not lass than 90%of replacement cost provided the policy contains an appropriate form of soot e*eatallon sndorvemont.Mortgagors will at their sola cast amt expanse,from thus to dnar*and at any time at the request of Mortgagee,protide Martgagoa with ovidonce satisfaotory to Moe(golf"of the replacement cost of Mortgaged,Property.Mortgagors will maintain such otho(insurance ss Mortgagoa may reasonably require. i b.Pogcy P'roa, ono.AN insurance policies and rorrewels thereof roahnsinod by Mortgagors pursuant to"Mortgage shell be written by an Insurance oarder sellefootory to Martgoose, contain a mortgagee clause in favor of sand In form acceptable to Mortgagee,contain on agreement of the insurer that it wr11 not amand,modify or cancel the polloy except after thirty 130)days prior written not(ca to Mortgagee,and be toasonobly satisfactory to Mortgages in all other roopoom, m t ilwy of Pogcy or Certificate.If raquestod by Mortgagee,Mortgagors will deliver to Mortgages original policies satisfactory to Mortgagaer evidencing the Insurance which is required under this Mortgage,and Mortgagors shag promptly fumish to Mortgagee ail renewal nodose and;upon request of Mortgagee,evidence of payment thereof.At Fast ton(i0)44ya prior to the expiration data of a required policy,Mortgagors shalt deliver to Mortgagee a renewal policy in form satisfactory to Mongogee, d, Assignment of Policy. if the Mortgaged Property is soil at a foreolosom sale at,If Mortgagee shall enquire title to the MtaVaged Property,Mortgagee shall'have all of the tight,Oft and Interest of Mo€tgagore to and to any insurance poltolae required hereunder,and the unearned premiums thereon,and in and to the proceeds thereof resulting from any damage*�the Mortgaged Property prior to such safe or acquisition. c Notic#of Damage or Oestructian;Adjusting low if efts Mortgaged Property or any part thereof shall be,damaged or destroyed by fire or other cesuaity,Mortgagor*whirr within five t5l calendar dove otter the ooftnorwo of such dwnage or destruction,'Ova written nodao thereof-to the insurance carrier and to Mortgagee and Will not adjustany damage or lose which is estflourod by Mortgagors Its good faith to axoeod 025,000 tadess Mortgagee shat#have joined in or concurred with such adjustment,but If there has boon no adjustment of any each damage or loss within four 14)months from tho data of occurrence-tharaof and if On dvent of Default shall exist at the,end of such four(4)month period or at any fi o thereafter,Mortgagee may*tons make proof of loss, adjust and compromise any claim under the policies,and appear in ad ptooxcu a any action arising from such policies.in connection therewith,Mortgagors do hereby Irrevocably authorize,empower and appoint Mortgages as amorney-in-fast for Mortgagor(which appointment is coupled with an interest)to do any and all of the foregoing in the name and on behalf of Mortgagors. f.Application of Insurance Proceeds. All sums paid under any insurance policy required by this Mortgage shall be paid to Mortgages,which shall,at Its option,apply the same latter first deducting therefrom Mongoose's expense*Incurred in collecting the same including but not limited to rarsonoble attorney's foes)to the reduction of the Obligations or to the payment of the restoration,repair,repisoemont at rebuilding of Mortgaged Property that Is damaged or destroyed in such manner as Mortgagee shall determine and secondly to the reduction of the Obiigatlone.Ar,y application of insurance proceeds to principal of the Obligations shall not extend or postpone the due date of the Installments payable under the Obligations or change the amount of such Installments. g,Reimbursement of Mortgages.'s Expenses.Mortgagors shall promptly ralmbuts*Mortgagee upon demand for all of Mortgagee's expenses jnourred In connection with the collection of the insurance proceeds,Including but riot limited to reasonable attorneys' and oil such expenses shall be additional amounts secured by this Mortgage. 11,Iinepseflon.Mortgagee,and its agents,shall have the right at reasonable times,to enter upon the Mortgaged Property for the purpose,of Insprooting the Mortgaged Property or any pert thereof,Mortgagee shall,however,have no duty to make such inspection.Any Inspection of the Mortgaged Property by Mortgages shall be entirely for Its benefit and Mortgagors shall in no way rely or claim reliance thereon. 12 Pmtaadan of Mortgagao's security,Subject to the right*of Mortgagcn under paragraph S hereof,if Monglagers fall to perform any of the covenants and agreements contained In this Mortgage or if any action or proceeding Is eomImet"d which effects the Mortgaged Property or the Interest of the Mortgages therein,or the title thereto,then Mortgagee,at Mortgages's option,may perform such ow000nts,and agreements,defend against or Investigate suchaction of proceeding,and take such other aatlan as Mortgages '.. doom tnocossary to protect Mortgagee's interest.Any amounts or expenses disbursed or inourred by Mortgagee In good faith puttoont to thio paragraph 12 wfth Interest thereon at the rate of, la %per annum,shall Wooms on Obligation of Mortgagors,eesured-by IN*Mortgage,Such affarunts advanced or disbursed by Mortgage*hereunder shall be Immediately due end payable by Mottgsgore. . unless Mortgorgairs,and Mortgages agree la writing to other terms of repayment.Mortgagee shall,of its option,be subrogatad to the Ilan of any mortgags,or other lien discharged in whole or in part by the Obligations or by Mortgagee under the provisiore hardof,'and any, such oubrogatisn tights*#telt be additional and aumulsove security for this Mortgage.Nothing eontalood in this paragraph shall took* Mortgoliso to Incur Dray expense or do any act hereunder,and Mortgagee shall not be liable to Modgle ca for any damage Of alalarte stlaft*0 of aadon taken by Mortgagee pursuant to this paragraph. 13. notion Mongolians of give Mortgages prompt notice of any sotion,actual of threatened,fn somdtmnadon or eminent domain and hereby avolp.transfor arra(set over to Mortgages the entire proceeds of any award or olairn far damitger for Aril or pan of the Mortgaged Property taken or damaged tinder the power of eminent domain of condemnation,Mettpgoa,ja fwreby Aaethorflod to Imorvone In any#wh action in rho names of Martoagore,to compromise and settle any such action or olilin,and to aatlMct.irnd rocalve (tom the oonthmurfrV authorhloo and:give proper receipts and soquittanoos for such prooeafe.Arnyr sxihrnsss Inowied by Marigapor in Intervening in such sction or compromising and settling such action or claire,or collecting such procaeds shall be rsimbunwd to Martgapt first out of the proceeds.The remaining proceeds or any Von thorsof sholl be applied to teddetton of that portion of the Obligothroor then most remotely to be pard,whether due or not,of to the restoration or repair of the Mortgogad Ptopetty,the ahoins of application to be solely at the discretion of Mortgages. 14,1%tumir From the dote of its recording,this Mortgage shall be affective es a fhrandng statement filed ill a fixture filing with (2) i 03332Fat t ttrl t>yoiu fact of»M[taa(ge FiEYN0LD8aKENtWE TFiiif�ItA,GgsMiJl1'yOtNttA4Yyfl1. i respect to the Personal Property and for this purpose the name and address of the debtor is the corms and address of Mortgagors as set j forth In paragraph 20 herein and the name and address of the secured party Is the name and address of the Mortgagee as set forth In paragraph 20 herein. 1'6,Events of Default.Each of the following occurrenoss shall constitute an event of default hereunder('Event of Default'): a.Mortgagors shall default In the due observance or performance of or breach its agreement contained In Paragraph 4 hereof or shell default intra due observance or performance of or breech any other covenant,condition or agreement on Its pan to be observed or performed pursuant to the terms of this Mortgage. b.Mortgagors shall make an assignment for the benefits of Its creditors,at a petition shall be filed by or ogehrst Mortgagors udder the United States Bankruptcy Code or Mortgagors shalt seek or consent to or acquiesce In the appointment of any trustee, raoe(ver or liquidator of a material part of Its properties or of the Mortgaged Property or shall not,within thirty(30)days after the appointment of a trustee,receiver or liquidator of any material part of its properties or of the Mortgaged Property,have such appointment vacated. o,A judgment, writ or warrant of attachment of oxeoudon,or similar proothis shall be,entered and become a lien on or be Issued or levied against the Mortgaged Property or any part thereof which is not released,vacated or fully bonded within thirty (30)daysafterits entry,Issue or levy. d,An event of default, however defined,shall**cut under any other mortgage,assignment or other security dooMMOnt azrnatttuting.a lien on the Mortgaged Property or any part tharoof. a. IS.Acceleration:Foreolosur*.Upon the occurrence of any Event of Default and at any rims thereafter while,such Event of Default exists,Mortgagee may,at its option,after such notice as may be required by low,exeraiso one or more of the fallowing rights and rsmadios(and any other rights and remedies available to it); a.Mortgages may declare Immediately due and payable all Obligations secured by this Mortgage,and the Sartre shall thereupon be immediately due arks payable,without further notice or demand. b.Mortgagee shall have ard may exercise,with respect to the Personal Property,all the tights and remedies accorded upon default to a secured party under the Iowa Uniform Commercial Code.if notice to Mortgagors of intended disposition of such property Is required by law In a particular instance,such notice shall be deemed commercially reasonable if given to Mortgagors at leant ten 00)days prior to the date of Intended disposition. a.Mortgagee may(and is hereby authorized and empowered to)foreclose this Mortgage In accordance with the law of the $tame of Iowa,and at any time after the oommoncemant of an action in foreclosure,or during the period of redemption,the court having jutladiction of the as"shall at the request of Mortgagee appoint a receiver to take immediate possession of the Mortgaged Property and of the Revenues and Income accruing therefrom,and to rentor cultivate the sans es he may deem best for the Interest of all parties concerned,and such receiver shall ba•1?ab{d to account to Mortpagan only for the net profits,after application of rents, Issues and profits upon the costs and expenses of the receivership and foreclosure and upon the Obligations. TT,Redemption.it is agreed that If this Mortgage covers leas than ten 1101 sortie of land,and in the event of the foreclosure of this Mortgage and safe of the property by sheriff's"a In such foreclosure proceedings,the time of one year for redemption from said sale providod by the statues of the State of Iowa shall be reduced to six(61 months provided the Mortgagee,in such action files an election to calve any deficiency judgment against Mortgagors which may arise out of the foreclosure proceedings;all to be consistent with the provisions of Chapter 828 of the Iowa Code,if the redemption period is so reduced,for the first three(3)months after safe such right of redamption shall be exclusive to the Mortgagor,and the time perlods In Sections 628.6,628.15 and 628.16 of the Iowa Code shall be reduced to four(4)months. It is further agreed thattheperiod of redemption after a foreclosure of this Mortgage shag be reduced to sixty(60)days it all of the three following contingencies develop:(t)The reef estate is lose than ton(10)acres in size;[2)the Courtfittds affirmatively that the sold real estate has been abandoned by the owners and those persons personally liable under this Mortgage at the time of such foreclosure; OW(3)Mortgage*in such action files an election to waive any deficiency judgment against Mongagors or their successors In Interest in suoh action.If the redemption period Is so reduced,Mortgagors or their successors in interest or the owner shall have the exclusive right to redeem for the first thirty(30)days after ouch sale,and the time provided for redemption by,creditors as provided in Sections 528:5, 528.18'and 528,1=5 of the lows Code shag be rsduoad to forty(40)days.Entry of appearance by pleading or docket entry by or on behalf of Mortgsgora sholl be a presumption that the property is not abandoned.Any suoh redemption period shall be consistent with all of the provisions of Chapter 528 of the Iowa Code.This paragraph shall not be oinstrued to Knit or otherwise affect any other redemption provisions contained In Chapter 538 of the Iowa Code. f°$.Attorrnys'Rees.Mortgagors shall pay on demand all costs and expanses incurred by Mortgages In enforcing-of protecting its and remedies hereunder,Including,but not limited to,reasonable attorneys'fees and legal expenses, 1g.Forbearance not s Waiver,Rights and Remedies Cumulative.No delay by Mortgages in exercising any right or remedy provided herein or otherwise afforded by law or equity shall be deemed a waiver of or preclude the exercise of such right or remedy,and no waiver by Mortgagee of any particular provisions of this Mortgage shall be deemed effective undessin writing signed by Mortgagee.All such ilghts and remedies provided for herein or which Mortgagee or the holder of the Obligations may have otherwise,at low or In equity,Shall be distinct,separate and oumulotive and may be ftworcised concurrently,Independently or successively in any order whatsoever,aro!as often as the owes{on therefor arses. 20.Notices.All notices required to be given hereunder shed be in writing and deemed given when personally delivered or deposited In the United States mail,postage prepaid,sent certified or registered,addressed as follows; a.If to Mortgagore,to: iG*v n F. FreSbtlrger and Le: Ann Frt?LWtIer 484`7II1>laas� C�ourt� Mi", IA 52002 b,if to Mortgagee,to g.C.I.A. BUSINESS GROM use. & CITY OF DUBUQUE, IOWA 330 Nesler Centre, P. 0. Host DAxxim, IA 52504-1140 of to such other address or person as hereafter designatedin writing by the applicable party in Ile manner provided in this paragraph for _ the giving of notices. 21.Sa orabisty.In the event any portion of this Mortgage shall,for any reason,be held to be invalid,illegal or unenforosable in whole or in part,the remaining provisions shag not be affected thereby and shall continue to be valid and enforceable and if.for any rsosorg a court finds that any provision of this Mortgage is Invalid,illegal,or unenforceable as written,but that by fruiting such-provislon It would became valid,legal and enforceable then such provision shall be deemed to be written,construed and enforced as so limited. C?h.Iowa tithe ear A%"We lin (3) CALFS n41e...11.6 etas i y 4 1 22.Further Atsursnces.At env time and from time to time until psymoot in full of the Obligations,Mortgagors will,at the request Of Mortgagee,promptly execute and deliver to Mortgagee such additional instruments as may be reasonably required to further j evidence the lien of this Mortgage and to further protect the security interest of Mortgagee with respect to the Mortgaged Property, Including,but not limited to,additional security agreament3,financing statements and continuation statements.Any expense}incurred by Mortgages In connection with the rsoordatton of any tush instruments shall become additional Obligations of Mortgagors secured by this Mortgage.Such amounts shell be immediately due and payable by Mortgagors to Mortgagee, j 23.Succeesom and Assigns bound;Number,Gender;Agents;Captions.The rights,covenanto and agreements contained herein shall be binding upon and inure to the benefit of the respective legal representatives,successors and assigns of the parties,wards and phrases contained herein,including acknowledgment hereof,shall be construed at in the singular or plural number,and as masculine, femirthaa•or neuter gander according to the contexts, The *options and headings of the paragraphs of this Mortgage are for convUlancs only and are not to be used to Interpret or define the provisions hereof. 24.tMovorrdng Law.This Mortgage shall be governed by and construed in accordance with the laws of the State of Iowa. 2Reissss'cf Rights of Dewar,fomseteed end Distributive$hare.Each of the undersigned hereby relinqu ishsall rights of dower, !, home+dtead and distributive share in and to the Mortgaged Property and waives off rights of exemption as to any of the Mortgaged Property. 2S O{tnowiedgment of Receipt of Copies of Debt frsrtrumant Mortgagors hereby acknowledge the raoafpt of a copy of%We Mortgage together with a copy of each promissory note secured hereby, 27:Addltiatai fhovbions. All-secured property identified Herein is shared on the $92,000/ $30,000' loan ratio of the loans of Tdortgageer .C.I.A. Business Growth Inc. and Mortgagee, City of Dubuque, Iowa. Dated. S'i'r tit,�� XeVit1 F. Fre r Mortgagors CRE 1TORG NI7 THAT EX MPTEFROM JUDICIATEAD L SAE; AND THAT BYPROTECTED SIGNI SIGNING THE OANRTGAGE, I VOLUNTARIL�"tf RIGHT TO THIS PROTECTION FOR THI GED PROPERTY WITH RESPECT TO CLAIMS'BASED ORTGAGE. i7 `'da is STATE OF IOWA ss: ' COUNTY OF DUBUr On this..J�M day of g@gtEtftr is 96 before me,the undersigned,a Notary Pubic er F.fy M60911 a 11 and I= AM F RUBUPMR, husband and Wiftr to me known to be the identical persons named in and who executed the for ing Instntmen,and e '.ledged that they exvotttad the suma their voluntary sot and dead, Notary Public 14) CITY OF DUBUQUE, IOWA SMALL BUSINESS DEVELOPMENT LOAN PROGRAM PRECISION TOOL & ENGINEERING, INC. LOAN AGREEMENT NUMBER: CDBG #1-96 This AGREEMENT, dated as of the 3o day of � 1996, is entered into by and between the CITY OF DUBUQUE, IOWA, a municipal corporation organized and existing under the laws of the State of Iowa (hereinafter referred to as the "City") and PRECISION TOOL & ENGINEERING, INC., an Iowa Corporation with its principal place of business in Dubuque, Iowa, (hereinafter referred to as the "Company"). WITNESSETH: WHEREAS, Precision Tool & Engineering, Inc. has requested a loan to offset the costs associated with the expansion and relocation of the Company to the Dubuque Industrial Center; and WHEREAS, the City of Dubuque, Iowa has considered said proposal and has determined that it will create permanent employment opportunities for the community's low to moderate income population; and WHEREAS, City is a participating city in the Community Development Block Grant Program of the United States Department of Housing and Urban Development; NOW THEREFORE, in consideration of the promises and respective covenants, agreements and representations hereinafter set forth, the parties agree as follows: 1 . SOURCE OF LOAN FUNDS. City, pursuant to its Grant Agreement with the United States Department of Housing and Urban Development, has obtained a Letter of Credit from the Department of Housing and Urban Development, issued by the United States Treasury, for funds sufficient to carry out its obligations under this Agreement. 2. LOAN TERMS. City agrees to loan to Company the amount of thirty thousand dollars ($30,000). The term of the loan shall be ten (10) years. Interest shall accrue at the rate of three percent (3.0%) per annum, computed on a 365 day basis. Payments of interest and principal shall be made quarterly during the term of the loan. At the time of the disbursement of loan funds to Company, Company shall execute its Promissory Note in the form attached hereto as Exhibit "A" Loan Agreement Precision Tool & Engineering, Inc. Page 2 payable to the order of City in the principal amount of thirty thousand dollars ($30,000). 3. DISBURSEMENT AND USE OF LOAN FUNDS. Loan funds shall be disbursed to Company by City for Qualifying Project Expenses up to thirty thousand dollars ($30,000). Company shall furnish to City written request for disbursement of loan funds. Such request shall be accompanied by a statement of Company's Qualifying Project Expenses and appropriate documentation of such expenses. It is expressly understood that all funds advanced under this Agreement shall be specifically earmarked and used by Company only for the purpose of paying the Qualifying Project Expenses listed in the applicable written request and as defined herein Section 27(c). Company shall complete the Project as defined herein Section 27(b) in accordance with the terms of this Agreement, by December 31 , 1996. City shall not be obligated to pay any funds not drawn by Company as of said date and any undrawn funds shall be credited against the balance due on the Promissory Note. }J 4. SECURITY. This loan shall be secured by a first priority security interest uti on any machinery and equipment purchased by the Company with the proceeds of V �' this loan, the value of which shall not be less than the amount of the loan funds Wil- dispersed for qualifying project expenses. The Promissory Note shall also be cosigned by Kevin Freiburger and Lee Ann Freiburger. 5. STATUS OF COMPANY. Company represents that it is a corporation duly organized and existing under the laws of the State of Iowa; that it is authorized to borrow under this Agreement, to execute and deliver the notes and otherwise perform the obligations of this Agreement; that is has corporate authority and power to own its property and conduct its business as it is currently carried on; that the performance of its obligations under this Agreement and the issuance of any note under it will not conflict with any provision of law, the Articles of Incorporation or the Bylaws of Company, or any agreement binding on it; and that, except as disclosed in writing to City, it is not a party to any pending or threatened litigation or to any proceeding or action for the assessment or collection of additional taxes, and that it knows of no known contingent liabilities not provided for or disclosed in the financial statement provided City. 6. FINANCIAL CONDITION OF COMPANY. Company has delivered to City a statement of Company's financial condition as of the date of application for financial assistance which fairly represents the financial condition of Company as of the date stated, prepared in accordance with generally accepted accounting principles consistently applied, and that the Company represents that the statements still correctly reflect the financial condition and status of its operations Loan Agreement Precision Tool & Engineering, Inc. Page 3 as of the date of this Agreement. Company agrees to notify City of any material change in Company's financial condition. 7. TITLE OF COMPANY. Company represents that it has good and marketable title, free of mortgage, pledge, lien, security interest, encumbrance, or charge to all those assets reflected on the financial statement and to assets since acquired. Taxes not due or payable or otherwise delinquent are excepted, as are assets disposed of in the ordinary course of business or disclosed in writing to City. 8. CONDITIONS OF BORROWING. On the date on which any sum is to be borrowed, Company, in addition to the Note, shall deliver to City such other papers and documents as may be required to comply with the conditions of this Agreement, as counsel for City may reasonably request. Company shall be required at the closing date to comply, or establish compliance, as follows: (a) That the representations and warranties of Company are correct on the closing date, as well as on the date of execution of this Agreement; (b) That Company has fully complied with the covenants and agreements to the extent required before the closing date; (c) That no default or event which might mature into a default has occurred or continues to the closing date; (d) That no litigation or proceeding is pending against Company which might result in any change in the business or adversely affect the properties of Company, taking into account the entire assets and overall business of Company; (e) That since the date of execution of this Agreement and to the closing date there has been no material adverse change in the financial condition of Company from that shown by the financial statements delivered to City under Section 6; (f) That since the date of execution of this Agreement no fire or casualty has occurred in any building or to any inventories or property of Company that might substantially, adversely affect the conduct of its business; Loan Agreement Precision Tool & Engineering, Inc. Page 4 (g) That it will furnish to City on the closing date with the opinion of Company's counsel that Company is a corporation duly organized, existing and in good standing under the laws of the State of Iowa; that it has corporate power to own its properties and conduct the business in which it is then engaged; that Company is not in violation of any law, ordinance or regulation of any governmental authority as to its business, premises or assets; that Company has full power to execute and deliver this Agreement, to execute and deliver the Note that evidences the sum borrowed, to borrow moneys under this Agreement, and to perform its obligations under this Agreement and the Note; that such actions have been duly authorized by all necessary corporate actions and are not in conflict with any agreement binding on Company known to counsel; and that this Agreement and the notes when executed and delivered by Company will be a valid and binding obligation of Company in accordance -with its terms. 9. COVENANTS OF COMPANY. Company covenants that until any sums borrowed under this Agreement are paid in full, it will, unless City agrees in writing to a modification or otherwise stated herein: (a) Take all actions necessary and required to create a minimum of six (6) new permanent full-time job equivalents with Company in Dubuque, Iowa by December 31 , 1998. Company shall create or cause to be created a minimum of fifty-one (51 ) percent of the new permanent job opportunities for persons who, at the time of their employment, are considered by the Department of Housing and Urban Development to be of low or moderate income. Company shall use its best efforts to hire local area residents whenever practicable and not otherwise in conflict with nondiscrimination provisions herein stated. For purposes of determining the extent of employment opportunities created under this Agreement, City and Company agree that a total of seventeen (17) full-time job equivalents exist with Company in Dubuque, Iowa at the commencement of the Project. If Company meets this requirement prior to the date specified, City may acknowledge such compliance and thereafter Company shall have no further obligation under this subparagraph (a). A listing by job title of the new permanent employment opportunities to be created is attached hereto as Exhibit B and entitled "Position Analysis"; (b) Submit quarterly "Employment Performance Report" during the job creation term required in subparagraph (a) of this Section above summarizing the employment status of Company and status of new permanent jobs to be created. Said report shall note the number of individuals employed within each job classification, the wage ranges of each position and the average Loan Agreement Precision Tool & Engineering, Inc. Page 5 hours of work per week of individuals engaged in each job activity. The report shall also indicate the number of individuals who, prior to their employment with Company, fell within the low or moderate income guidelines established by the Department of Housing and Urban Development. The form of such quarterly "Employment Performance Report" and required "Employee Report" verifying income, ethnic origin and head of household status are attached hereto as Exhibit C and Exhibit D respectively; (c) Submit quarterly "Project Status Report" during the term of project completion to document the expenditures of financial assistance, both public and private, in support of the project. The form of such quarterly report is attached hereto as Exhibit E; (d) Furnish City within ninety (90) days after the end of each fiscal year with a copy of its annual report, which shall be prepared in conformity with generally accepted accounting principles consistently applied, and, within thirty (30) days after the end of each quarter of its fiscal year, with a copy of its financial statement similarly prepared and, from time to time, such other financial information as City may reasonably request. City reserves the right to request audited annual reports, certified by the accountants that supplied the statements at the execution, or such other accountants satisfactory to City as may be retained by Company, which shall be prepared in conformity with generally accepted accounting principles consistently applied. Reports shall be supplied at the expense of the Company; (e) Maintain insurance to the extent and against such hazards and liabilities as are in keeping with the current insurance program of Company, which is set forth in Exhibit F attached hereto and entitled "List of Insurance Coverage"; (f) Pay when due all taxes, assessments and other liabilities, except those contested in good faith where notice of such contest has been given to the City; (g) Not purchase or redeem any of its shares, declare or pay any dividends other than share dividends, or make any distribution to its shareholders in an aggregate that exceeds twenty (20) percent of its net profits, before deduction for the payment of federal income taxes, earned after the date of this Agreement; (h) Not create or permit to exist any mortgage, pledge, security interest, lien or other encumbrance on the security for this Loan Agreement Loan Agreement Precision Tool & Engineering, Inc. Page 6 provided in Section 4 above and the Note provided pursuant to this Loan Agreement without written consent of City. City approval of such written consent will not be unreasonably withheld; (i) Not become a party to any merger, consolidation or sale of Company; not sell, transfer, convey or lease all or any part of its property except in the ordinary course of business; and not sell or assign any accounts receivable; (j) Not cause, suffer or permit any of its subsidiaries to do any of the things prohibited to Company in this Agreement; (k) Not change the general character of its business as conducted at the date hereof, engage in any type of business not reasonably related to its business as normally conducted, or relocate Company's project operations outside the city limits of the City of Dubuque; (1) Give prompt notice in writing to City of any adverse development, financial or otherwise, which would materially affect its business, properties or affairs, or the ability of Company to perform its obligations under this Agreement or the Promissory Note executed pursuant to the terms of this Agreement; (m) Use loan funds only for purposes authorized herein; (n) Take no action which would cause City to be found in default under its Community Development Block Grant Agreement; (o) Pay all fees, expenses and charges in respect to this Agreement or its making in any way connected therewith including, but not limited to, legal fees, abstract continuation, recording and filing fees, mortgage taxes, documentary stamps, and any other taxes, fees and expenses payable in connection with this transaction; (p) Comply with all requirements imposed upon City under its Community Development Block Grant Agreement including, without limitation, the requirements of 24 CFR Part 570. 10. DEFAULT. Company shall be in default if: Loan Agreement Precision Tool & Engineering, Inc. Page 7 (a) It fails to pay any installment of principal or interest on any note (whether to City or any other public or private lender) when due or within ten (10) days thereafter; (b) It becomes insolvent or admits in writing its inability to pay its debts as they mature; or applies for, consents to or acquiesces in the appointment of a trustee or received for any of its property; or in the absence of an application for consent, or acquiescence, a trustee or receiver is appointed for it or a substantial part of its property and is not discharged within ten (10) days; or it otherwise commits an act of bankruptcy; or any bankruptcy, reorganization, debt arrangement or other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is instituted by or against it and if instituted is consented to or acquiesced in by it or remains for ten (10) days undismissed; (c) It fails, in the exclusive judgment of the City, to meet its job creation obligation; (d) It fails in the performance of the terms and conditions of this Agreement (other than the payment terms referred to in (a) above) and such non-performance continues for ten (10) days after notice thereof from City or from the holder of a note; (e) Any warranty made by Company is untrue in any material respect, or any schedule, statement, report, notice or writing furnished by Company to City is untrue in any material respect on the date as of which the facts set forth are stated or certified; (f) Any government board, agency, department, commission or public or private lender takes possession or control of any substantial part of the property of Company and such possession or control continues for ten (10) days. 11 . ACCELERATION AT OPTION OF CITY. If any default occurs, City may declare the notes immediately due and payable, at which time all unpaid principal and interest shall immediately become due and payable. City shall promptly advise Company in writing of any acceleration under this section, but the failure to do so shall not impair the effect of such declaration. 12. FAILURE TO MEET JOB CREATION OBLIGATION. If the Company is determined by the City to be in default of the Loan Agreement due to meeting less than one hundred percent (100%) of its job creation obligation, City may require Loan Agreement Precision Tool & Engineering, Inc. Page 8 full loan repayment as described in Section 11 above or, at its discretion, City may require an upward adjustment in annual interest rate. The City may also make the upward adjustment in annual interest rate apply retroactively to the date loan proceeds were disbursed by City. 13. MAINTENANCE OF RECORDS AND RIGHT TO INSPECT. Company will keep and maintain all normal business books and records and all other documents, invoices and receipts relating directly to the receipt and disbursement of loan funds and job creation; and any duly authorized independent accounting representative of City, or the Comptroller General of the United States, shall at all reasonable times have access to and the right to inspect, copy, audit and examine all such books and other documents of Company pertaining to the project until the completion of all closeout procedures respecting City's loan and the final settlement and conclusion of all issues arising out of said loan. 14. ADDRESS. Company's initial business address is: Precision Tool & Engineering, Inc. 2820 Elm St. Dubuque, IA 52001 Company shall promptly give City written notice of any further change in its principal office address. City's address is: Department of Community and Economic Development City Hall 50 West 13th Street Dubuque, IA 52001 15. ACCESS TO PROJECT. Company agrees that any duly authorized representative of City or of the United States shall at all reasonable times have access to any portion of the project until the completion of all closeout procedures respecting the Community Development Block Grant Loan. 16. LIMITATION OF CITY'S LIABILITY FOR PROJECT ACTIVITIES. City shall not be liable to Company, or to any party except the Department of Housing and Urban Development, for the completion of, or the failure to complete, any activities which are part of the project, except as may be specifically provided in this Agreement. Company agrees to indemnify, hold harmless and defend City from any such claims against City for which liability is limited hereunder. Loan Agreement Precision Tool & Engineering, Inc. Page 9 17. CONFLICT OF INTEREST. Company agrees that no member, officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the project during his or her tenure, or who is in a position to participate in a decision making process or gain inside information with regard to the project, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the project, or in any activity, or benefit therefrom, which is part of this project at any time during or after such person's tenure. 18. NONDISCRIMINATION. In carrying out the project, Company shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, age or disability. Such action shall include, but not be limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training, including apprenticeship. Company shall post in a conspicuous place, available to employees and applicants for employment, notices to be provided by City setting forth the provisions of this nondiscrimination clause. Company shall state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, national origin, age or disability. 19. NO ASSIGNMENT OR SUCCESSION. Company acknowledges and agrees that no transfer of loan funds by City to Company shall be deemed an assignment of grant funds, and Company shall neither succeed to any rights, benefits or advantages of City authorities or interests in or under the Grant Agreement. 20. DISCLAIMER OF RELATIONSHIPS. Nothing contained in this Agreement between the parties, nor any act of City or Company shall be deemed or construed by any of the parties, or by any third persons, to create any relationship of third party beneficiary, principal or agent, limited or general partnership, or joint venture, or of any association or relationship involving the United States. 21 . NOTICE. Any notice, if mailed by United States certified mail, shall be deemed given when mailed, postage prepaid, addressed to Company at its address shown above, or at any other address subsequently designated to City by Company. 22. SUCCESSORS AND ASSIGNS. All covenants, representations, warranties and agreements herein set forth shall be binding upon the Company, and its legal representatives, successors and assigns. This Agreement may not be Loan Agreement Precision Tool & Engineering, Inc. Page 10 assigned by City or Company, without the express written consent of the other party. 23. LEGALITY. If any provision of this Agreement shall, for any reason, be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, but this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 24. GOVERNING LAW. This Agreement and all rights and duties hereunder, including but not limited to, all matters of construction, validity and performance shall be governed by the laws of the State of Iowa. 25. SURVIVAL OF REPRESENTATIONS. All representations or warranties of Company shall survive the execution and delivery of this Agreement and any notes executed and delivered under it, and no investigation by City nor any closing shall affect the representations or warranties or the right of City to rely on and enforce them. 26. DELAY. No delay on the part of-City or the holder of any note in the exercise of any right shall operate as a waiver, nor shall any single or partial exercise of any right preclude other or additional exercise of any right. 27. DEFINITIONS. (a) "Grant Agreement" shall mean that Community Development Block Grant Agreement entered into by City and the United States Department of Housing and Urban Development. (b) "Project" shall mean those activities to be carried out by Company subsequent to the 31 st day of December, 1996, through the expenditure of loan funds distributed by City for the acquisition of needed furniture, fixtures and equipment as described in the Company's Community Development Block Grant (CDBG) application, a copy of which is located in the office of the Community and Economic Development Department, 50 West 13th Street, Dubuque, IA 52001 . (c) "Qualifying Project Expenses" shall mean those expenditures or expenses incurred by Company during and for the Project, whether paid to third parties or incurred as wage expense, fringe benefit expense or other costs of Company's employees, agents and contractors. Loan Agreement Precision Tool & Engineering, Inc. Page 11 (d) "Full-Time Job Equivalent" shall equal a total of forty hours of labor per work week. Such hours may be accrued by single individuals or divided among two or more Company employees. IN WITNESS WHEREOF, City has caused this Loan Agreement to be executed by the City Manager. The Company has executed this Loan Agreement in its corporate name by its duly authorized officer. All of the above occurred as of the 3Dr'#day of �T' , 1996. CITY OF DUBUQUE, IOWA PRECISION TOOL & ENGINEERING, INC. Michael C. Van Milligen Kevin Freiburger City Manager Lee Ann Freiburger Exhibit A PROMISSORY NOTE PRECISION TOOL & ENGINEERING, INC. Community Development Block Grant Loan Program Number: CDBG #1-96 Value: $30,000 FOR VALUE RECEIVED, Precision Tool & Engineering, Inc., Kevin Freiburger and Lee Ann Freiburger ("Owner"), promise to pay to the order of the CITY OF DUBUQUE, IOWA, a municipal corporation ("City"), the principal amount of thirty thousand dollars ($30,000) together with interest from the date said monies are disbursed by City pursuant to the terms of the attached Loan Agreement dated the -�Fv2`day of 1996, ("Loan Agreement") which interest shall be at the rate of 3.0% per annum. All payments of principal and interest shall be made by Owner at the times and in the amounts as specified on the Amortization Schedule, labeled ATTACHMENT A, attached to this Promissory Note, and by this reference made a part hereof. All payments hereunder shall be made in lawful money of the United States at the administrative offices of the Finance Department of City, or at such other place as City may from time to time in writing designate. Owner may, from time to time, prepay all or any portion of the principal balance due hereunder without penalty and without consent of City. All such payments of principal shall be applied to principal installments in reverse order of maturity and which last come due under the terms of this Promissory Note. This Promissory Note is made, executed and delivered in accordance with and subject to all of the terms and provisions of the Loan Agreement, entered into and between Owner, as borrower, and City, as lender, which is incorporated herein by reference. This Promissory Note is secured by the assets of the Owner, the value of which shall at all times be equal to or greater than the unpaid balance of the loan. In the event of a default in payment of any interest or any installment of principal required hereunder, or in the event of occurrence of an act of default under Section 10 of the Loan Agreement or any mortgage or security agreement between the parties, then written notice of said default shall be given by City to Owner, and Owner shall have the time specified in such agreement if any is specified, to cure said default. If default is not cured by Owner within the time allowed, City may, at its option declare the entire unpaid amount, including interest, to be immediately due and payable. Principal and interest not paid when due shall draw interest at a rate of fifteen percent (15%) per annum. Owner agrees to pay all expenses of collection, including reasonable attorney's fees, court costs, abstracting costs, storage costs, costs of disposition of collateral, and any and all other related and incidental expenses thereto, all of which shall first be deducted from the proceeds of sale or foreclosure. In addition, the holder of this Note shall have all other rights and remedies as are provided for under the Loan Agreement, or as are provided by law. Makers, endorsers and sureties waive demand of payment, notice of nonpayment, protest and notice thereof. Sureties, endorsers and guarantors agree to all of the provisions of this Note and consent that the time or times for payment of all or any part hereof may be extended after maturity, from time to time, without notice. PRECISION TOOL & ENGINEERING, INC. W /9(, I Kevin Freiburger, esident Date Je'vi`n�Frefiburger,Jn vidually Lee Ann Freiburger, ice-Pres. Date Lee Ann Freiburger, Invidually Barry A. Lindahl, Esq. City Attorney Suite 330, Harbor View Place 300 Main Street Dubuque, Iowa 52001-6944 (563) 583-4113 office (563) 583-1040 fax balesq@cityofdubuque.org Jeff Trannel, Esq. HUGHES & TRANNEL, PC 1154 Iowa Street Dubuque, Iowa 52001 Dubuque THE CITY OF krerd All -America City I11111 2007 • 2012 • 2013 DUB1JE Masterpiece on the Mississippi November 10, 2015 RE: 1500 Radford Road/Precision Tool/Freiburger Dear Jeff: Enclosed for your file is the original Release of Real Estate Mortgage, recorded October 28, 2015 as Instrument no. 2015-00013900. I will retain a copy in my file. Very si ► rely, 1 B:rry A. Lindahl ity Attorney BAL/tls Enclosure cc: Maurice Jones, Economic Development Director Kevin Firnstahl, City Clerk F:\USERS\tsteckle\Department Correspondence\Economic Development\Precision Tool-Freiburger-1500RadfordRoad\Trannel_OriginalRecordedReleaseRealEstateMortgage_111015.doc 111111 111 111 11111111111 111111111 011111111 1111 111 Doc ID: 008338130004 Type GEN Kind: RELEASE OF MORTGAGE Recorded: 10/28/2015 at 04:01:56 PM Fee Amt: $22.00 Pape 1 of 4 Dubuque County Iowa John Murphy Recorder F11e2015-00013900 RELEASE OF REAL ESTATE MORTGAGE THE IOWA STATE BAR ASSOCIATION Official Form No. 129 Recorder's Cover Sheet Preparer Information: (Name, address and phone number) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 (563) 583-4113 Taxpayer Information: (Name and complete address) Kevin F. Freiburger and Lee Ann Freiburger Return Document To: (Name and complete address) Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 Grantors: City of Dubuque, Iowa Grantees: Kevin F. Freiburger Lee Ann Freiburger Legal description: Document or instrument number of previously recorded documents: 10784-96 © The Iowa State Bar Association 2013 IOWADOCS® CL°0 v_ THE IOWA STATE BAR ASSOCIATION Official Form No. 129 Ba A. Lindah1 FOR THE LEGAL EFFECT OF THE USE OF THIS FORM, CONSULT YOUR LAWYER STA 'f•A , VI %t The undersigned, acknowledge that 1996 , made RELEASE the present a certain and executed OF REAL owner(s) mortgage by Kevin ESTATE MORTGAGE of the mortgage hereinafter described, do hereby bearing date of the 1 lth day of September , F. Freiburger and Lee Ann Freiburger, husband and wife and City of Dubuque, Iowa and Recorded on in the records of the office of the Recorder of of Iowa, recorded as document reference number the 11th day of September , 1996 , is the County of 10784-96 Dubuque State redeemed, Words singular context. Dated NOTE: For STATE This record by Roy D. paid off, satisfied and discharged and phrases herein, including or plural number, and as masculine, this day of (2/ in full. acknowledgment hereof, shall feminine or neuter gender, , - be construed as in the according to the OF UBUQUE, IOWA , /1---/ partial release of real estate mortgage, OF Iowa , COUNTY see OF CITY Form No.130 .y: Ro D. Buol, Mayor " Attest: in . Firns .h1 ty Clerk Dubu ue was acknowledged before Buol, Mayor of the City of Dubuque, me this ?day of, 015 , Iowa . STATE This record by Kevin ig zA 02,2 `. ::„. PAMELA J. PAcCARRON Commission Number 772419 My Comm. Exp '-t-5-2M6 ? OF City ignature o otary Public D bu ue OF Iowa , COUNTY was acknowledged before S. Firnstahl, City Clerk of the me this day of ' , 20151 of Dubuque, Iowa . ' trial/ ri\OCCOA,67(-) of tary Public ; . ,.PAMELA ,,,,,,,, J. McCARRON Commission Number 772419 My Comm. Exp.LI--S-2C1 9-) : Signature © The Iowa State Bar Association 2013 129 RELEASE OF REAL ESTATE MORTGAGE IOWAOOCS® Revised August 2013 RESOLUTION NO. 361-15 APPROVING A RELEASE OF MORTGAGE BY THE CITY OF DUBUQUE, IOWA ON THE PROPERTY AT 1500 RADFORD ROAD OWNED BY KEVIN F. FREIBURGER AND LEE ANN FREIBURGER (PRECISION TOOL & ENGINEERING, INC.) Whereas, in1996, the City of Dubuque (City) entered into a Loan Agreement with Precision Tool & Engineering, Inc. (the Company) for the expansion and relocation of the Company to the Dubuque Industrial Center; and Whereas, City agreed to provide Company with a $30,000 Community Development Block Grant (CDBG) low interest loan; and Whereas ECIA Business Growth, Inc. agreed to provide Company with a $92,000 loan; and Whereas, the Loans were secured by a mortgage on the property legally described as Lot 1 of Dubuque Industrial Center 10th Addition, in the City of Dubuque, Iowa, locally known as 1500 Radford Road (the Property); and Whereas, the Loans were paid in full in a timely manner; and Whereas ECIA Business Growth, Inc. released its interest in the mortgage on October 24, 2007; and Whereas, Company now wishes to sell the Property and has requested a release of the mortgage by City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Release of Mortgage attached hereto is hereby approved. Section 2. The Mayor is authorized and directed to execute the Release of Mortgage on behalf of the City of Dubuque. Passed, approved and adopted this 19th day of October, 2015. Affriff:/arl Attest: e'vin S. Fi n • t. h 7City Clerk Roy D Buol, Mayor CERTIFICATE of the CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 361-15 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 28th day of October, 2015. Ke (SEAL) n S. Firnstahl, City Clerk THE CITY OF DUB1JE MEMORANDUM Masterpiece on the Mississippi BARRY LINDAHL CITY ATTORNEY To: Maurice Jones Economic Development Director DATE: November 10, 2015 RE: Precision Tool/1500 Radford Road/Freiburgers Maurice: Attached is original Dubuque County Recorder receipt no. 2015-00009407 for $22.00 regarding the recording fee for the Release of Real Estate Mortgage relating to the above -referenced. I would appreciate it if you would please process this receipt and forward to the Finance Department for payment. Thank you for your assistance regarding this matter. BAL:tls Attachment cc: Kevin Firnstahl, City Clerk Jill Connors, Economic Development Project Coordinator F:\USERS\tsteckle\Department Correspondence\Economic Development\Precision Tool-Freiburger-1500RadfordRoad\Jones_DubCoRecorderReceipt_111015.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org Dubuque County Iowa John Murphy Recorder 720 Central Ave. Dubuque, IA 52001 Phone Number: (563)589-4434 :ial Receipt: 2015-00009407 nted on 11/02/2015 at 10:03:10 AM 3 on DCRCO2 DUBUQUE CITY HOUSING REHAB CITY OF DUBUQUE 350 WEST 6TH STREET SUITE 312 DUBUQUE IA 52001 Date Recorded: 10/28/2015 Instrument ID Recorded Time Amount 2015-00013900 04:01:56 PM $22.00 MTR - RELEASE OF MORTGAGE 9UQUE CITY ':FREIBURGER, KEVIN F -.counts CORD MANAGEMENT .2H FEE 4L ESTATE N -CONFORMING FEE Amount $1.00 $1.00 $20.00 $0.00 J Due: nt Charged: ge Tendered: uauF A NICE DAY!