Town Clock Bldg Rehabilitation Loan and Mortgage_Cottingham and Butler_823-835 Main St.
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Project Coordinator
SUBJECT: Release of Mortgage for 823-835 Main Street – Downtown Rehabilitation
Loan DRLP #2-01
DATE: January 18, 2018
INTRODUCTION
The purpose of this memorandum is to inform you of a final loan payment and to
request your signature on a release of mortgage.
BACKGROUND
Town Clock Building Company entered into an agreement in 2001 for a $300,000 loan
for the redevelopment of 823-835 Main Street (the Town Clock Building). At the time, a
mortgage on the property was held as security on the loan.
DISCUSSION
Regular payments have been made on this loan, and a final payment of $88,923.51 was
made to the Finance Department as of September 27, 2017. This closes out the
balance due on the loan.
RECOMMENDATION/ ACTION STEP
I recommend signing the release of mortgage attached to this memo, which will
subsequently be recorded with the County.
Cc: Maurice Jones, Economic Development Director
Jean Nachtman, Finance Director
RESOLUTION NO. 105-01
A RESOLUTION AUTHORIZING A LETTER OF COMMITMENT AND
ADDITIONAL ACTIONS CONCERNING A DOWNTOWN REHABILITATION
LOAN TO TOWN CLOCK BUILDING COMPANY.
Whereas, the City of Dubuque, Iowa, has created a Downtown Rehabilitation Loan
Program for the purpose of stimulating reinvestment in the Downtown Dubuque Urban Renewal
District; and
Whereas, the City of Dubuque, Iowa is encouraging the use of this loan progxam to
finance code compliance activities and to spur job creation activities; and
Whereas, the loan application from the Town Clock Building Company meets the
requirements of this program; and
Whereas, a Commitment Letter, hereto attached and by this reference made a part hereof,
sets forth the terms and conditions of Town Clock Build'mg Company's participation in the
Downtown Rehabilitation Loan Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the application of Town Clock Building Company for participation in
the Downtown Rehabilitation Loan Program is hereby accepted and approved.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the City
Council of the City of Dubuque, Iowa, the attached Commitment Letter and to forward said letter
to Town Clock Building Company for review and approval.
Section 3. That the City Manager be and he is hereby directed to prepare, upon
execution and receipt of the attached Commitment Letter by the applicant, the necessary loan
documents in accordance with the terms and conditions set forth in said Commitment Letter.
Section 4. That the City Manager is hereby authorized to execute, on behalf of the
City Council of the City of Dubuque, Iowa, all necessary loan documents and is further
authorized to disburse loan funds from the Downtown Rehabilitation Loan Program, in
accordance with the terms and conditions of the executed agreement.
Passed, approved and adopted this 19~ day of March, 2001·
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Mayor
F :\USERS~rayhre\WPDOCS~LOANDOC\SECURITY~townclo ckbldg.res.wpd
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 13, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Downtown Rehabilitation Loan for Town Clock Building
835 Main Street
Acting Community and Economic Development Director Pam Myhre is recommending
execution of a Downtown Rehabilitation Loan to Town Clock Building Company for funding to
renovate the Town Clock Building located at 835 Main Street. The owner proposes to borrow
$300,000 fi.om the City's loan program to assist this historic renovation project. The project will
restore the exterior historic facade, which recently had its blue metal 'skin' removed and will
completely renovate the interior for use as commercial office space. Total project costs are
estimated to be in excess of $2 million. The project will commence in May 2001, and is
scheduled for completion in February 2002.
The Town Clock Building Company's affiliated companies, Cottingham & Butler and Self
Insurance Services Company, anticipate adding approximately 60 employees within the next two
years, and this City assistance will also provide a match for a Community Economic Betterment
Account (CEBA) State Job Creation Assistance Loan.
I concur with the recommendation and respectfully request Mayor and City Council approval.
Michael C. Van Miltigen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Pamela Myhre, Acting Community and Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 12, 2001
TO:
FROM:
SUBJECT:
Michael Van Milligen, C~I~vI~ anag~ ~,~. 5~ //,,
Pamela Myhre, Actint~/Commumty and Econo~/~ Develop~nent Director
Downtown Rehabilitation Loan for Town Clock Building
835 Main Street
INTRODUCTION
This memorandum presents for City Council consideration a resolution approving a request from
Town Clock Building Company (Cottingham & Butler, Inc.) for funding from the City's TIF-
funded Downtown Rehabilitation Loan Program to renovate the Town Clock Building located at
835 Main Street.
BACKGROUND
On November 3, 1997, the City Council established by Resolution g458-97 revisions to the
existing Downtown Rehabilitation Loan Program to encourage and enhance private Investment
and rehabilitation efforts In the Downtown Dubuque Urban Renewal District.
The program, capitalized with funds available through the City's tax increment financing district,
now provides for a maximum of $300,000 in attractive low-interest loan monies. The program is
unique in that grants of up to $10,000 are available to offset necessary predevelopment costs.
The program also includes a forgivable loan element whereby qualifying applicants may have up
to the full amount of the loan forgiven as an incentive for the creation of new employment and
housIng opportunities in the district.
The Town Clock Building Company's affiliated companies, Cottingham & Butler and Self
Insured Services Company, anticipate adding approximately 60 employees within the next two
years.
DISCUSSION
The owner proposes to borrow $300,000 from the City's loan program to assist this historic
renovation project. The Town Clock former sat atop this buildIng. The project will restore the
exterior historic facade which recently had its blue metal 'skin' removed and will completely
renovate the interior for use as commercial office space. Total project costs are estimated to be
$2,038,317.00. A copy of the application for loan funds for the project is attached.
The project will commence in May, 2001 and is scheduled for completion by February, 2002.
The owner is also applying for a CEBA grant to assist this project which will allow expansion of
several company divisions both in the Town Clock Building and in the Security Building.
Additional information on the terms and conditions of the proposed Downtown Rehabilitation
Loan is attached in the commitment letter. If the loan is approved by the City Council, this
commitment letter would be executed by both the Mayor and by Town Clock Building Company.
RECOMMENDATION
Staff has reviewed the application and found it to be in keeping with the requirements of the
Downtown Rehabilitation Loan Program. The project appears financially sound.
I recommend that the City Council adopt the attached resolution approving Town Clock Building
Company's request for $300,000 and authorizing the preparation and execution of the necessary
loan agreement. The resolution directs the City Manager to prepare and execute the final
documents as per the terms and conditions of the attached commitment letter.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\US ERS~Pmykre\WPDOCS~LOANDOC\SECURITY\town¢lockbldg.mem.wpd
Community and Economic
Development Department
50 West 13th St~et
Dubuque, Iowa 52001-4864
Town Clock Building Company
P.O. Box 28
300 Security Building
Dubuque, Iowa 52004-0028
March 19, 2001
RE: Letter of Commitment/Downtown Rehabilitation Loan Program
Town Clock Building, 835 Main Street
Dear Sirs:
, I am please to inform you that your application for financial assistance for the historic renovation
of the Town Clock Building has been accepted and approved by the Dubuque City Council.
The following offer is made:
Source of Funds:
Downtown Rehabilitation Loan Program
Amount of Commitment: $300,000
Interest Rate:
Three percent (3%) per annum
Term of Loan:
Twenty (20) years
Payment Schedule:
Monthly interest only payments shall be required for the first sixty
(60) months of the loan. Monthly principal and interest payments,
amortized over an additional fifteen (15) year period, shall begin the
sixty-first month of the loan.
You may prepay this loan in whole or in part at any time without
penalty.
Form of Security:
The loan shall be secured by a first mortgage lien on the property or
other security instrument that will satisfy the outstanding balance
associated with this loan.
Service People Integrity Responsibility Innovation Teamwork
Commitment Letter
Town Clock Building Project
Page 2
Purpose of the Loan:
Historic renovation of the exterior facade and historically significant
elements of the interior with remodeling of the remainder of the
interior for use as commercial office space.
Conditions of this Commitment:
(a) An "after rehab" appraisal must be submitted to the Community and Economic
Development Department prior to the scheduled loan closing. The cost of said appraisal
shall be incurred by the property owner.
(b)
A title opinion must be completed at the expense of the property owner. A copy of said
document must be provided at the loan dosing.
(c)
All exterior work must be reviewed and approved by the City's Historic Preservation
Commission.
(d) A loan agreement must be signed no later than June 30, 2001.
(e)
The project is to be completed in accordance with the regulations set forth for the City of
Dubuque's Downtown Rehabilitation Loan Program.
Additional Commitments:
(a) A grant not to exceed ten thousand dollars ($10,000) will be available to offset
documented predevelopment costs, architectural and engineering fees and other
miscellaneous soft costs. A determination must be made by the City that the project is
substantially complete and satisfies the conditions of the loan prior to the release of any
grant monies.
A rebate equal to two thousand dollars ($2,000) may be forgiven for each new full-time
job or full-time equivalent created within two years of the execution of the loan documents
and maintained by the applicant or his/her tenant for a period of not less than three years.
The amount of the loan to be forgiven shall be determined by the City on the fifth
anniversary of the loan based on documented evidence of job creation.
This commitment is valid for twenty-one (21) days from the date of this letter. If you wish to
accept the offer, you must remm the acknowledgment. Failure to return written acknowledgment
will be cause for the commitment to lapse. This commitment offer shall lapse if construction on
the proposed project does not start within ninety (90) days of the loan closing.
Commitment Letter
Town Clock Building Project
Page 3
If the terms offered do not meet your approval, or if you have any questions regarding the
conditions of this commitment, please contact Pamela Myhre, Community and
Economic Development Department, at 319/589-4393.
Sincerely,
T~a~nce M. Dugga~~
Mayor ' !
We have reviewed the above offer and accept the Downtown Rehabilitation Loan and all of the
terms of this commitment letter.
John E. Butler, President
Town Clock Building Company
Date
Stephen J. Bonfig, Treasurer
Town Clock Building Company
Date
F:\USERS~myhr¢\WPDOCS~LOANDOC~SECURITY~tovcaclockbldg.l~r.wpd
www, cb-sisco.com
Cottingham & Butler
C&B hx~urance [ SISCO ] HealthCorp I Safely Management
Mmrch 7, 2001
Ms. Pamela Myhre
Community and Economic Development Depm'tment
50 West 13th Street
Dubuque, IA 52001-4393
Dear Pam,
Please allow this letter to sm'vice as our application for a loan through the Downtown
Rehabilitation Loan Program.
Specific information about our project is as follows:
· The project is the Town Clock Building located at 835 Main Street, Dubuque,
Iowa.
· The project includes the restoration of the exterior facade and historically
significant elements of the interior, and the remodel of the remainder of the interior
for use as commercial office space. The cost of the project is estimated at
$2,038,317. A detailed estimate is enclosed.
The project will restore the historic build/rig to its original appearance and
viab/lity. The brick and stone architecture will stand out as a beautiful
representation of Dubuque h/stow. The building stands as a significant part of
Dubuque's Main Street, which was once the heaa-t of the City. It serves as an
important element of the City's late 19th Century architectural resources and for its
role in the development of the local commercial base.
* In connection with this project, we intend to add approximately 60 employees
within the next two yem's.
· See atlached copy of warranty deed as proof of ownership.
We request a loan of $300,000.
· The building currently does not have a mortgage. We would like to retain our
mortgage-free status and would appreciate your help in securing the loan without a
mortgage.
· We anticipate starting restoration work in May of 2001, with restoration of the
fagade and roof first, and then the inter/or. We expect to have the entke project
completed by February of 2002.
Page 2
Pam Myhre
March 7, 2001
As this building has not been. occupied since we purchased it, we have no historical
financial information. A pro-forma financial statement for the building is enclosed.
We look forward to completing this project with the ass/stance of this loan program.
Please let me know if you have any questions or concerns.
S c e¢,
Cottingham & Butler, Inc.
Town Clock Building Company
Johf~ E.~ ~tler, President
JEB/dlm
Stephen J.' Be~, Treasurer>
Enclosures
Summary of Project Costs
Town Clock Building
February 28, 2001
Item
Soft Cost
Architect, Engineer, Professional Fees, Etc.. ·
Environmental and Demolition
Exterior Renovation
Roof Systems, Facade, Masonry, Windows,
Cornice, Etc...
Interior Constrtmfion
Foundation, Basement, Structural, Iron,
Stair Towers, Etevator Shaft
Mechanical
Electrical, Plumbing, Sprinkler, Elevator, HVAC
Tenant Build Out
.Estimated Cost
184,582.00
62,500.00
260,530.00
293,545.00
545,672.00
691,488.00
Total $2,038,317.00
Town Clock Building Company
Proforma Financial Statement
For year
2002
Rental Income
180,000
Expenses:
Cleaning
Utilities
Maintenance & Repairs
Property Taxes
Insurance
Building Supplies
Trash Removal
Secudty
Maintenance Wages
Management Fees
20,000
22,000
18,000
16,000
7,000
5,0OO
3,000
2,000
12,000
5,000
Subtotal Expenses
110,000
Net Cash Flow from Operations
70,000
Depreciation
31,000
Net Income
39,000
For year
2003
185,000
20,500
22,500
20,000
16,000
7,000
5,000
3,000
2,000
13,000
5,000
114,000
71,000
31,000
40,000