Release of Mortgage_Don Junk, 65-73 Main Street Copyrighted
February 5, 2018
City of Dubuque Consent Items # 23.
ITEM TITLE: Signed Contract(s)
SUMMARY: I IW, PC Technical Services Task Order No. 17-03 for the
17th Street/W. Locust Street Storm Sewer Improvements
Project; I IW, PC Technical Services Task Order No. 18-01
for 22nd St./Kaufmann Ave. Storm Sewer Improvement
Project; Pillar Design Studios, LLC for Dubuque Skate Park
Designer and Landscape Architect; Releases of Mortgage
for Duaine Greenfield (190 Main St.); Hartig Realty I I,
LC (703 Main St.); Don Junk (65-73 Main St.); Security
Investments, LLC (800 Main St.); Security Partners, LP
(800 Main St.); and Town Clock Building Co. (823-835 Main
St.).
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
II W, PC Technical Services Task Order No. 17-03 Supporting Documentation
II W, PC Technical Services Task Order No. 18-10 Supporting Documentation
Pillar Design Studios, LLC ContacVBond Supporting Documentation
Release of Nbrtgage- Duaine Greenfield Supporting Documentation
Release of Nbrtgage- Hartig Realty I II, LC Supporting Documentation
Release of Nbrtgage- Don Junk Supporting Documentation
Release of Nbrtgage- Town Clock Building Co. Supporting Documentation
Release of Nbrtgage- Security Investments, LLC Supporting Documentation
Release of Nbrtgage- Security Partners, LP Supporting Documentation
�l1bUGll2 Emnomic Development Department
THE CITY OF �, so west 13b street
AI4A�eiwGry Dubuque, lowa 52001-0564
�UB E 'I����I�' o�ce,s63,s��93
TTV(563)690b6]8
http://www.dryofdu buqu e.org
Masterpiece on the Mississippi ?�°;.i�;;
TO: Michael Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Project Coordinator
SUBJECT: Release of Mortgage for 65-73 Main Street— Downtown Rehabilitation
Loan DRLP#1-98
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
Don Junk entered into an agreement in 1998 for a $17,200 loan for the redevelopment
of 65 Main Street. 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 $1,517.46 was
made to the Finance Department as of May 30, 2017. This closes out the principal
balance due on the loan, with $3.25 in interest being forgiven per Finance Director,
Jean Nachtman.
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
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Doc ID: 008769270001 Type: GEN
Kind: RELEASE OF MORTGAGE
Recorded: 01/19/2018 at 03:39:33 PM
Fee Amt: $7.00 Paqe 1 of 1
Dubuque County Iowa
John Murphy Recorder
File2o 1 V�00oo0 / / �
Prepared by and return to: Jill Connors, Economic Development Department, 50 W. 13t" Street,
Dubuque, IA 52001, (563) 589-4393
RE: CITY LOT 535, 535A, 536 & 537A(65-73 MAIN)
RELEASE OF REAL ESTATE MORTGAGE !
The City of Dubuque, lowa, Economic Development Department, the present owner of the Real "
Estate Mortgage hereinafter described and encumbering the above-described real estate, hereby �
acknowledges that said Real Estate Mortgage, bearing date of the 6t"of May, 1998 made and executed by �
Don Junk, mortgagor, to the City of Dubuque Economic Development Department, mortgagee, and recorded '�
in the records of the office of the Recorder of the County of Dubuque, State of lowa, as Instrument No. 7301- i
98 on the 12th of May, 1998, is redeemed, paid off, satisfied and discharged in fulL �i
� �Dated this , day of� �1.,�� 2d��
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City of Dubuque, lowa p
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By: �
Michael C. Van Milligen
City Manager
City of Dubuque �
State af lowa )
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Dubuque County )
On this��- day ofc� ���; bef�re me, a Notary Public, in and for the stat� of
lowa, personaily appeared Michael C. Van Mil gen, to me personally known, and, who being bq me duly
sworn, did say that she is the City Manager of the City of Dubuque, lowa; and that the instrument was signed
on behalf of the said City of Dubuque, lowa, by Michael C. Van Milligen, City Manager and that said Michael
C. Van Milligen, acknowledged the execution of the instrument to be her voluntary act and deed and the
voluntary act and deed of the City of Dubuque, lowa, by it voluntarily executed.
Notary Public in and for said
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C1TY OF DUBUQUE, IOWA
DOWNTOWN REHABILITATION LOAN PROGRAM
LOAN AGREEMENT
NUMBER: DRLP#1-98
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This AGREEMENT, dated as of the � � day of � 1998, is entered
into by and between the C[TY OF DUBUQUE, IOWA, a municipa( orporation organized and existing
under the laws of the State of lowa (hereinafter referred to as the "City") and Don D. ]unk, (hereinafter ,
referred to as the "Owner").
WITNESSETH:
Whereas, the property at 65 Main Street, Dubuque, lowa, (hereinafter referred to as the "Building") ,
is located within the boundaries of the Amended Downtown Dubuque Urban Renewal District (the
"District"), as established by Resolution No. 145-94 of the Dubuque City Council on May 2, 1994; and ,
Whereas, the goa(s and objectives of the Amended and Restated Downtown Urban Renewal Plan (the
"Plan") provide for the creation of.the ftnancial incentives needed to eliminate conditions of blight through a '
program of voluntary or compulsory repair and rehabilitation of buildings and to retain or create
employment and/or housing opportunities within the District; and
Whereas, the City desires to assist the Owner in its efforts to bring said Building into comp(iance with
local codes and ordinances, to eliminate certain conditions of physical decay, and to retain or create
employment and/or housing opportunities within the District; and
Whereas, without the assistance of the Loan Program, the Owner would be unable to operate the
Building to its fullest capacity, thereby threatening local employment opportunities.
NOW THEREFORE, in consideration of the premises and respective covenants, agreements and
representations hereinafter set forth, the parties agree as follows:
1. SOURCE OF FUNDS. City is prepared to provide financial assistance to qualified parties
through the use of tax increment financing under Chapter 403 of the lowa Code, and has a(located funds
sufficient to carry out its obligations under this Agreement.
2. LOAN TERMS. City agrees to (oan to Owner on the terms and conditions set forth herein '
the amount of seventeen thousand two hundred dollars ($17,200) which shall consist of the Loan Program '
funds, if and only if such funds are available. The first payment of$5,000 shal( 6e made available at loan
closing, with additional incremental payments avai(ab(e based on work completed and expenses encumbered.
The term of the loan shall be twenty (20) years. Interest on the loan shall be three percent (3.0%)
per annum. Monthly interest payments shall become due and payable the first sixty (60) months of the
loan. Month(y interest and principal payments, amortized over a fifteen (15) year period, shall become due
and payable beginning the sixty-first month of the loan. The entire balance of the loan, including interest
and principal, shall become due and payabie not later than the 240th month of the loan. '
At the time of the initial disbursement of loan funds to Owner, Owner sha[( execute the Promissory
Note in the form attached hereto as Exhibit A payable to the order of the City in the principal amount of
seventeen thousand two hundred doilars ($17,200), the Mortgage, attached as Exhibit B, and the Personal
Guaranty, in cases of corporate ownership, attached as Exhibit C.
3. DISBURSEMENT AND USE OF LOAN FUNDS. Loan funds shall be disbursed to Owner by
City for Qualifying Project Expenses, defined in Paragraph 27(d), for amounts not in excess of the total sum
of$17,200 nor more than ninety percent (90%) of the total project cost. :
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Owner shall furnish to City written requests for disbursement of loan funds. Such request shall be ;
accompanied by a statement of Owner's Qualifying Project Expenses and appropriate documentation of such
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Loan Agreement
Page 2 ��
expenses. It is expressly understood that all funds advanced under this Agreement shall be used by Owner
on(y for the purpose of paying the Qualifying Project Expenses set forth in such written requests.
Owner shall complete the Project, defined in Paragraph 27(c), m accordance with the terms of this
Agreement, on or before December 1, 1998. City shall not be ob(igated to pay any funds not drawn by
Owner as of said date and any undrawn funds as of such date sha(I be credited against the ba(ance due on the
Promissory Note.
4. SECURITY. The loan shall be secured by a mortgage on the Building and the land dedicated
thereto as identified on the attached Exhibit B, the value of which shall at no time be less than the amount of
the loan funds disbursed for Qualifying Project Expenses plus any other debt secured by said Building and
land.
The foan shall, in cases of corporate ownership or as deemed necessary, be further secured by
Personal Guaranty, attached hereto as Exhibit C.
5. AVAILABLE INCENTIVES. Up to the fu(I amount of the loan shall be forgiven by the City
as an incentive for the creation of new employment opportunities. The amount of the loan to be forgiven
shall be determined sixty (60) months from the Cfosing Date of this Agreement and a new amortization
schedu(e shall be prepared. The base employment number at the time of the signing of this Agreement, for
purposes of the calculation of the Employment Incentive, has been determined to be�FTE emp(oyees
for the Building.
Employment Incentive:
(a) Two thousand dollars ($2,000) shall be forgiven for each new full-time equivalent created and
maintained by the Owner or his/her tenant.
(b) To qualify, the Owner must document the following:
(1) The job represents a full-time equivalent as defined herein Paragraph 27(e);
(2) The job was created within twenty-four (24) months after the Closing Date;
(3) The job has been maintained by the Owner or his/her tenant for a period of not(ess
than thirty-six (36) months;
(4) The job is a paid position; and
(5) The job has been created by the Owner or another entity located in the Building and is
for employment in a business located in the Building.
6. PLANNING AND DESIGN GRANT. A planning and design grant (the "Grant") may be
provided by the City to offset the predeve(opment costs incurred by the Owner in the development of the
Project.
(a) Grant shall be awarded in accordance with the following guidelines:
(1) Owner must document architectural and engineering fees and any other miscellaneous
soft costs incurred during the Project; and
(2) A determination must be made by the City that the Project is substantially complete and
satisfies the conditions set forth in this Agreement.
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Loan Agreement
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(b) Grant shall not exceed ten thousand dollars ($10,000) or the lessor of ten percent (10%) of
total project costs or fifty percent (50%) of the loan.
7. STATUS OF OWNER. Owner represents, if it is a corporation, that it is duly organized and
existing under the laws of the State of[owa; that it is authorized to borrow under this Agreement, to execute
and deliver the notes and mortgage and otherwise perform the obligations of this Agreement; that it has
corporate authority and power to own its property and conduct its business as it is currently carried on; that '
the performance of its ob(igations under this Agreement and the issuance of any note under it wi(1 not '
conflict with any provision of law, the Articles of Incorporation or the Bylaws of Company, or any agreement '
binding on it. Owner also represents, except as disclosed in writing to City, that 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 which would affect the ability of the Owner to repay this loan. '
8. FINANCIAL CONDITION OF OWNER. Owner has delivered to City a statement of
Owner's financial condition as of the date of application for financial assistance which fairly represents the
fnancial condition of Owner as of the date stated, al1 in accordance with genera(ly accepted accounting
principles consistently applied, and that the statements still correctly reflect the financ[al condition and status
of its operations as of the date of this Agreement.
9. TITLE OF OWNER. Subject to the liabilities reflected on Owner's financial statement as well
as those incurred in relation to this Project and/or those referred to in Paragraph 10(g) of this Agreement,
Owner represents that it has good and marketable title, free of any mortgage, pledge, [ien, secur[ty interest,
encumbrance, or charge to all those assets reflected on the f►nancial statement and to assets since acquired.
Taxes not due or payable or otherwise delinquent are excepted.
10. CONDITIONS OF BORROWING. On the date on which any sum is to be borrowed,
Owner, m addition to the Note, shall de(iver 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.
Owner sha(I be required at the C(osing Date defined herein Paragraph 27(a) to comply, or establish
compliance, as follows:
(a) That the representations and warranties of Owner are correct on the Closing Date;
(b) That Owner 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 Owner which would materially affect the
assets of Owner, taking into account the entire assets and overall business of Owner;
(e) That there has been no material adverse change in the financial condition of Owner from that
shown by the financial statement delivered to City under paragraph 8; ,
(f� That no fire or casua(ty has occurred in any building or to any inventories or property of '
Owner that might substantial[y, adversely affect the conduct of its business.
1 1. SPECIAL CONDITIONS. Owner agrees to comply with the fo[lowing requirements '
established by the City for the Loan Program: �
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Loan Agreement
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(a) All exterior work must be approved by the City's Historic Preservation Commission prior to
the initiation of the Project. '
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12. COVENANTS OF OWNER. Owner covenants that it will:
(a) Correct code deficiencies in accordance with all app(icable building and fire codes within the
scope of the project.
(b) Provide for the repair and rehabilitation of the Building in accordance with all applicable
build'mg, zoning, fire and housing codes.
(c) Substantially complete the Project on or before December 1, 1998.
(d) Maintain at al( times insurance to the extent and against such hazards and liabi[ities as are in
keeping with the current insurance program of Owner, set forth in Exhibit D attached hereto
and entitled "Certificate of Insurance". Said certification shall be renewed on an annual basis
and provided to City within thirty (30) days of the anniversary date of this Agreement.
(e) Pay when due al(taxes, assessments and other liabilities, except those contested in good faith
where notice of such contest has been given to the City.
(f� Not create or permit to exist any other mortgage, pledge, secur[ty interest, lien or other
encumbrance on the security for this Agreement provided in Paragraph 4 above and the Note
and Mortgage provided pursuant to this Loan Agreement without written consent of City.
City acknowledges the first mortgage in the initial amount of$70,656.41 provided as security
to American Trust si Savings Bank and previously consented to by City.
(g) 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 Owner to
perform its obligations under this Agreement or the Note and Mortgage executed pursuant to
the terms of this Agreement.
(h) Use loan funds only for purposes authorized herein.
(i) Pay al( recording and filing fees, mortgage taxes, documentary stamps, and any other taxes
payable in connection with this transaction.
13. DEFAULT. Owner shal( be in default upon the occurrence of any of the following events:
(a) Owner 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 thirty (30) days thereafter;
(b) Owner 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 receiver 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 mstituted by or against it and if instituted is consented to or
acquiesced in by it or remains for ten days undismissed;
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Loan Agreement
Page 5
(c) Owner fails in the performance of any of the terms and conditions of this Agr2ement and such :
non-performance continues for ten (10) days after written notice thereof from City or from '
the holder of a note;
(d) Any warranty made by Owner is untrue in any material respect, or any schedule, statement, ',
report, notice or writing furnished by Owner to C[ty is untrue in any material respect on the '
date as of which the facts set forth are stated or certified, provided any such error is not the '
result of unintentional errors which are capable of correction without prejudice to the City;
(e) Any government board, agency, department, commission or pub(ic or private lender takes ',
possession or control of any substantial part of any property of Owner. '
14. ACCELERATION AT OPTION OF CITY. If any event of default occurs, City may, after ten
days written notice of default to Owner, declare Note immediately due and payab(e, at which time aIl unpaid
principal and interest shall immediately become due and payable. City shall promptly advise Owner in '
writing of any acceleration under this paragraph, but the failure to do so shall not impair the effect of such
declaration.
15. MAINTENANCE OF RECORDS AND RIGHT TO INSPECT. Owner shall keep and
maintain books, records and other documents relating directly to the receipt and disbursement of(oan funds;
and any du[y authorized independent accounting representative of City shall at all reasonable times have
access to and the right to inspect, copy, audit and examine all such books and other documents of Owner
pertaining to the project until the completion of all close out procedures respecting City's [oan and the final
settlement and conclusion of all issues arising out of said loan.
16. ADDRESS. Owner's principal business address is:
Don D. Junk
Atlast Fluid Power Company
Box 1 123
Dubuque, lowa 52004-1 123
Owner shal[ promptly give City written notice of any further change in its principal office address.
City's address is:
City of Dubuque, lowa
50 West 13th Street
Dubuque, lowa 52001
17. LIMITATION OF C1TY'S LIABILITY FOR PRO]ECT ACTIVITIES. City shall not be liable
to Owner, or to any parry, 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 or other written agreements between
City and Owner or any of Owner's affiliates or subsidiaries. Owner agrees to indemnify, hold harm(ess ancl
defend City from any such claims.
18. CONFLICT OF INTEREST. Owner certifies that to its knowledge 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, has nor shall have any interest, direct or
indirect, in any contract or subcontract, or in any activity, or benefit therefrom,which is part of this Project
at airy time during or for one year after such person's tenure.
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Loan Agreement '
Page 6 '
19. NONDISCRIMINATION. In carrying out the Project, Owner sha(1 not discriminate against
any employee or applicant for employment or tenancy because of race, religion, color, sex, national origin,
age or disability. Owner 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. '
Owner shall state that all qualified app[icants will receive consideration for emp(oyment without regard to
race, religion, color, sex, national origin, age or disability.
20. DISCLAIMER OF RELATIONSHIPS. Nothing contained in this Agreement between the
parties, nor any act of City or Owner 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, orjoint venture.
21. NOTICE. Any notice, if mailed by United States certified mail, shall be deemed given when
mailed, postage prepaid, addressed to the other party at its address shown above, or at any other address
subsequently designated by either party to the other. '
22. SUCCESSORS AND ASSIGNS. All covenants, representations, warranties and agreements
herein set forth shall be bmding upon Owner, and its legai representatives, successors and assigns. This
Agreement may not be assigned by City or Owner, 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
unenforceabie, 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 a(I rights and duties hereunder, including but not
limited to a[I matters of construction, validity and performance shall be governed by the laws of the State of
lowa.
25. SURVIVAL OF REPRESENTATIONS. All representations or warranties of Owner shall
survive the execution and delivery of this Agreement and any notes or mortgages 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 rety on and enforce them.
26. DELAY. No de(ay on the part of City or the holder of any note in the exercise of any right
sha[l 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) "C(osing Date" shall mean the date on which this Agreement is executed by the parties.
(b) "Project" shall mean the rehabilitation of 65 Main Street, identified in Owner's application for
financial assistance. Said application is on file in the office of the Community and Economic
Development Department, 50 West 13th Street, Dubuque, lowa 52001.
(c) "Qualifying Project Expenses" shall mean those expenditures or expenses incurred by Owner
during and for the Project and identified in the Owner's application for financial assistance, '
whether paid to third parties or incurred as wage expense, fringe benefit expense or other costs
of Owner's employees, agents and contractors. '
(d) "'Full-Time )ob Equivalent" shall equal a total of forty hours of labor per work week. Such ,
hours my be accrued by single individuals or divided among two or more individuals. ,
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(e) "New housing unit" shall mean either a housing unit created where one did not previously
exist, or an existing housing unit which has been unlicensed and unoccupied for a period of not
less than five years.
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Dated this �! day of �� 1998. '
CITY OF DUBUQUE, [OWA
„ � P � � �
Mi hae C. Van Milligen, City Manager pon . ]unk, Ow er '
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C"BIJQU�' CO..iUrrA FEES
Preparer
i�ro�ano�Pamela Myhre-Gonyier Cit�Hall �Q West 13th St _ Dubuque 319/589-4393
Individual's Name StreetAddress^� `� City y Phone _,_
SPACE ABOVF_THIS LINE
FOR RECORDER
MORTGAGE
THIS MORTGAGE is made between Don D.Junk'("Mortgegors"p and City of Dubuque,lowa ("Mortgagee").
[]If this box is checked,this Mortgage is a Purchase Money Mortgage as defineA in the lowa Code.
1.Grant of Mortgage and Security Interest. Mortgagors hereby sell,convey and mortgage unto Mortgagee,and grant a
security interest to Mortgagee in the following described property:
a.Land and Buildings. All of Mortgagors'right,t�tle and interest in and to the following described real estate situated
in Dubuque County,lowa(the"Land"),Lots 535,535A and 536 in the City of Dubuque,lowa,and all buildings,structures
and improvements now standing or at any time here��ffer constructed or placed upon the Land(the"Buildings"),including
all hereditaments,easements,appurtenances,riparian rights,mineral rights,water rights,rights in and to the lands lying
in streeks,alleys and roads adjoining the�and,estates and other rights and interests now or hereafter befonging to or in
any way pertaining to the Land.
b.Personal Property. All fixtures and other personal property integrally belonging to,or hereafter becoming an
integral part of the Land or Bui�dings.whether attachad or detached,inr,luding but not limited to,light fixtures,shades,
rods,blinds,Venetian b�inds,awnings,storm windows.screens,linoleum,water softeners,automatic heating and air
conditioning equipment and all proceeds,products,increase,issue,accessions,attachments,accessories,parts,
additionS,repairs.replacements and substitutes of,to,and fur the foregoing(the"Personal Property").
c.Revenues and Income. All rents,issues,prufits,lease,,condemnation awards and insurance proceeds now or
hereafter arising from the ownership,occupancy or us�: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 Property'),togefher with all privileges,her��ditaments thereunto now or hereafter belonging,or in any way
appertaining and the products and proceeds thereof,unto Mortgagee,its successors and assigns.
2.Obligations. This Mortgage secures the fo�Iowing(hereinaker collectively referred to as the"Obligations"):
a.The payment of the loan made by Mortgagee?o Dnn D.Junk evidenced by a promissory note dated May 7,1998 in
the principal amount of$17,200-�:;t:.���e�--,any renewals,extensions,modifications or refinancing thereof
and any promissory notes issued in substitution tFerefor;and
b.All other obligations of Mortgagors to Mortgagee,now existing or hereaker arising,whether direct or indirect,
contingent or absofute and whether as maker or surety,including,but not limited to,future advances and amounts
advanced and expenses incurred by Mortgagee pursw3nt to this Mortgage.
3.Representations and Wananties of Mortgagors. Mor�gagors represent,warrant and covenant to Mortgagee that(I)
Mortgagors hold clear title to the Mortgaged Property and ti@e in fee simple in the Land;(ii)Mortgagors have the right,power and
authority to execute this Mortgage and to mortgage,and grant a security interest in the Mortgaged Property;(iii)the Mortgaged
Property is free and clear of all fiens and encumbrances,exr,ept for real estate taxes not yet delinquent and except as otherwise
staied in subparagraph 1a.herein;(iv)Mortgagors will warrant and defend titte to the Mortgaged Property and the Iien and priority
of this Mortgage again5t all claims and demands of ali persons,vuhether now existing or hereafter ansing;and(v)alI buildings and
improvements now or hereafter located on the Land are,or wiil be,located entirely wifhin the boundaries of the Land.
4.Payment and Performance of the Obligations. Mortgagors will pay ali amounts payable under the Obligations in
accordance with the terms of the Obligations when and as due and will timely perform all other obligations of Mortgagors under the
Obligations.The provisions of the Obligations are hereby incorporated by reference into this Mortgage as if fu�iy set forth herein.
5.Taxes. Mortgagors shall pay each installment of all tazes and special assessments of every kind,now or hereafter levied
against the Mortgaged Property before the same become delinquent,without notice or demand,and shall deliver to Mortc�agee
proof of such payment within fikeen(15)days after the date in which such tax or assessment becomes delinquent
6.Liens, Mortgagors shall not create,incur or suffer to exist any lien,encumbrance,security interest or charge on the
Mortgaged Property orany part thereof which might or could b�held to be equal or prior to the lien of this Mortgage,other than the
lien of current real estate taxes and instal�ments of special assessments with respect to which no penalty is yet payable.
Mortgagors shal�pay,when due,the claims of ali persons supplying labor or materials to or in connection with the Mortgaged
Property.
7.Compliance with Laws. Mortgagors shall compiy with;�II present and future statutes,laws,rules,orders,regulations and
ordinances affecting the Mortgaged Property,any part thereof or the use thereof.
8.Permitted Contests. Mortgagors shall not be required to(q pay any tax,assessment or other charge referred to in
paragraph 5 hereof,(ii)discharge or remove any lien,encun�brar�ce or charge referred to in paragraph 6 hereof,or(iii)comply with
any statute,law,rule,regulation or ordinance referred to in paragraph 7 hereof,so long as mortgagors shall contest,in good faif.h,
the existence,amount or the validity thereof,the amount of damages caused thereby or the extent of Mortgagors'liability therefor,
by appropriate proceedings which shall operate during the pendency thereof to prevent(A)the collection of,or other realization
upon the tax,assessment,charge or lien,encumbrances or charge so contested,(B)the sale,forfeiture or loss of the Mortgaged
Property or any part thereof,antl�any interference with the use or occupancy of the Mortgaged Property or any part thereof.
Mortgagors shall give prompt written notice to Mortgagee of the commencement of any contest referred to in this paragraph 8.
9.Care of Property. Mortgagors shall take good care of tfre Mortgaged Properfy;shall keep the 6uildings and Persona(
Property now or later placed upon the Mortgaged Property in good and reasonable repair and shall not injure,destroy or remove
either the Buildings or Personal Property during fhe term of this Mortgage.Mortgago�s shall not make any material alteration to the
Mortgaged Property without the priorwritten consent of Mortgagee.
10.Insurance.
a.Risks to be Insured. Mortgagors,at their sele cost and expense,shall maintain insurance on the Buildings and
other improvements now existing or hereafter erected on the Land and on the Personal Property included in the
Mortgaged Property against loss by fire,extended coverage perils and such other hazards as Mortgagee may from time
to time require,such insurance to have a"Replacement CosY'endorsement attached thereto,with the amount of the
insurence at'east equal to the baiance of the Obligal;ons.At Mortgagors'option,such poiicy may have a coinsurar.ce
clause of not less than 90%of replacement cost provided the policy contains an appropriate form of cost escalation
endorsement.Mortgagors will at their sole cost and expense,from time to time,and at any time at the request of
Mortgagee,provide Mortgagee with evidence satisfa�;tory to Mortgagee of the replacement cost of Mortgaged Property.
Mortgagors will maintain such other inSurance as Mortc�agee may reasenably require.
b.Policy Provisions. All insurance policies and renewals thereof maintained by Mortgagors pursuant to this Mortgage
shall be wriiten by an'insurance oarrier satisfadory to Mortgagee,contain a mortgagee clause in favor of and in fom
acceptable to Mortgagee,contain an agreement cf the insurer that it will not amend,modify or cancei the poiicy except
after thirty(30)days prior written notice to Mortga�ee,and be reasonabty satisfactory to Mortgagee in all other respects.
a Delivery of Policy or Certificate. If requested by Mortgagee,Mortgagors will deliver to Mortgagee original policies
satisfactory to MoRgagee evidencing the insurance which is required under this Mortgage,and Mortgagors shaii promptly
fumish to Mo�gagee all renewal notices and,upon request of Mortgagee,evidence of payment thereof.At least ten(10)
days prior to the expiration date of a required polic,y,Mortgayors shalf deliver to Mortgagee a renewal policy in form
satisfactory to Mortgagee.
d.Assignment of Policy. If the Mortgaged Property is sold at a foreclosure sale or if Mortgagee shall acquire title to
the Mortgaged Property,Mortgagee shall have all of tY�e right,title and interest of Mortgagors in and to any insurance
policies required hereunder,and the unearned premiums thereon,and in and to the proceeds thereof resulting from any
damage to the Mortgaged Property prior to such sale or acquisition.
e.Notice of Damage or Destruction;Adjusting Loss. If the MoRgaged Property or any paR thereof shall be
damaged or destroyed by fire or other casualty,Nlortgagors will,within five(5)calendar days after the occurrence of such
damage or destruction,give written notice thereo`to tF:e insurance carrier and to Mortgagee and will not adjust any
damage or loss which is estimated by Mortgagors in good faith to exceed$25,000 un�ess Mortgagee shall have joined in
or concurred with such adjustment;but if there has been no adjustment of any such damage or loss within four(4)
months from the date of occurrence thereof and if ar.E:vent of Default shall exist at the end of such four(4)month period
or at any time thereafter,Mortgagee may alone make�xoof of loss,adjust and compromise any claim under the po�icies,
and appear in and prosecute any action arising from such policies.In connection therewith,Mortgagors do hereby
irrevocably authorize,empower and appoint Mortgagee as attorney-in-fact for Mortgagor(wHich appointment is coupled
with an interest)to do any and all of the foregoing in the name and on behalf of MoRgagors.
f.Appifcation of Insurance Proceeds. All sums pa�id under any insurance policy required by this Mortgage shatl be
paid to Mortgagee,which shall,at its option,appiy the same(after first deducting�herefrom Mortgagee's expenses
incurred in collecting the same including but not limited to reasonable attomey's fees)to the reduction of the Obligations
or to the payment of the restoration,repair,replacement or rebuilding of MoRgaged Property that is damagetl or
destroyed in such manner as MoRgagee shall determine and secondly to the reduction of the Obligations.Any
application of insurance proceeds to prinei�sal of the dbligations 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 Mortgagee's Expenses. Mortgagors shall promptly reimburse Mortgagee upon demand for all
of Mortgagee's expenses incurred in connection with the collection of the insurance proceeds,including but not limited to
reasonable attomeys fees,and all such expenses shall be additional amounts secuted by this Mortgage.
11.Inspection. Mortgagee,a�d its agents,shall have the right at all reasonable times,to enter upon the Mortgaged Property
for the purpose of inspecting the Mortgaged P�operty or any part thereof. Mortgagee shall,however;have no duty to make such
inspection.Any inspection of the Mortgaged Property by Mo�tgagee shall be entirely for its benefit and Mortgagors shali in no way
rely or claim reliance thereon.
12.Protection of Mortgagee's Security. Subject to the rights of Mortgagors under paragraph 8 hereof,if MoAgagors faii to
perform any of the covenants and agreements contained in this Mortgage or if any action or proceeding is commenced which
affects the Mortgaged Property or the interest of the Mortgayee therein,or the title thereto,then Mortgagee,at Mortgagee's option,
may perform such covenants and agreements,defend against�r invesfigate such action or proceeding,and take such other action
as Mortgagee deems necessary to protect Mortgagee's interest.Any amounts or expenses disbursed or incurred by Mortgagee in
good faith pursuant to this paragrapf�12 with interest thereon at the rate of%per annum,shall become an Obligation of Mortgagors
secured by this Mortgage.Such amounts advanced or disbursed by Mnrtgagee hereunder shall be immediately due and payable by
Mortgagors unless Mortgagors and Mortgagee agree in writing to other terms of repayment.Mortgagee shall,at its option,be
subrogated to the lien ot any mortgage or other fien dischaF�ed in whole or in part by the Obligations or by Mortgagee under the
provisions hereof,and any such subrogation rigfits sfiall 6e additional and cumutative security for this Mortgage.Nothing contained
in this paragraph shall require Mortgagee to incur any expense or do any act hereunder,and Mortgagee shall not be liable to
Mortgagors for any damage or claims arising out of action taken by Mortgagee pursuant to this paragraph.
13.Condemnation. Mortgagors shall give Morfgagee prompt notice of any action,actual or threatened,in condemnation or
eminent domain and hereby assign,transfer and set over to Mortgagee the entire proceeds of any award or claim for damages for
all or any part of the Mortgaged Property taken or damaged under the power of eminent domain or condemnation.Mortgagee is
hereby authorized to infervene in any such acfion in the narcies of Mortgagors,to compromise and sQEtle any such action or claim,
and to co�lect and receive from the condemning authorities and give proper receipts and acquRtances for such proceeds.Any
expenses incurred by MoRgagee in intervening in stich action or compromising and settling such actipn or claim,or colleciing such
proceeds shall be reimbursed to Mortgagee first out of the proceeds.The remaining praceeds or any part thereof shall be applied to
reduction of that portion of the Obligations then most remotely to be paid,whether due or not,or to the restoration or repair of the
Mortgaged Property,the choice of application to be solely at the discretion of Mortgagee.
14.Fixture Filing. From fhe date of its reCording,this Mar�gage shall be effective as a financing statement filed as a fixture
filing with respect to ihe Personal Property and for this putpase the name and address of the debtor Is the name and address of
Mortgagors as set forth in paragraph 20 herein and the nama and address of the secured party is the name and address of the
Modgagee as set fo�th in paragraph 20 herein.
15.Events of Default. Each of the following occurrences shall constitute an event of default hereunder("Event of DefaulY'):
a.Mortgagors shall default in the due observance or performance of or breach its agreement contained in paragraph 4
hereof or shall default in the due observance or perfamiance of or breach any other covenant,condition or agreement on
its part to be observed or pertormed pursuant to tlie terms of this Mortgage.
b.Mortgagors shall make an assignment for the 4enefits of its creditors,or a petition shall be filed by or against
Mortgagors under the United States 63nkruptcy Code ur Mprtgagors sha�f seek or consent to or acquiesce in the
appointment of any trustee,receiver o�liquidator of a materia�part of its properties or of the Mortgaged Property or shall
not,within thirty(30)days after the appointment of a t�ustee,receiver or liquidator of any material part of its properties or
of the Mortgaged Property,have such appointment vac.ated.
c.A judgment,writ or warrant of attachment or execution,or similar process shall be entered and become a lien on or
be issued or levied against the Mortgaged ProperFy or any part thereof which is not released,vacated or fully bonded
within thirty(30)days after its entry,issue or levy.
d.An event of defautt,however de�ined,shall occur under any other mortgage,assignment or other security document
constituting a lien on the Mortgaged Property or any part thereof.
16.Acceleration;Foreclosure. Upon the occurrence of any Event of Default and at any time thereafter while such Event of
Default exists,Mortgagee may,at its option,after such notice as may be required by law,exercise one or more of the following
rights and remedies(and any other rights and remedies avaifable to it):
a.Mortgagee may declate immediately due and payahle all Obligations secured by this Mortgage,and the same shall
thereupon be immediately due and payable,without fwther notice or demand.
b.Mortgagee shall have and may exercise with respect to the Personal Property,all the nghts and remedies accorded
upon default to a secured party under the lowa Uniforrri Commercial Code. If notice to Mortgagors of intended
disposition of such property is required by law in a part+cular instance,such notice shall be deemed commerciafly
reasonable if given to Mortgagors at least ten(10)days prior to the date of intended disposition.
c.Mortgagee may(and is hereby authorized and empowered to)foreclose this Mortgage in accordance with the Iaw of
the State of Iowa,and at any time after fhe commancement of an action in foreclosure,or during the period of
redemption,the court having jurisdiction of the cas�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 rent or
cultivate the same as he may deem best for the irsterest of all parties concerned,and such receiver shall be liable to
account to Mortgagors oNy for the net p�afits,afte!application of rents,issues and profits upon the costs and expenses
of the receivership and foreclosure and upon the Obligations.
77.Redemption. It is agreed that if this Mortgage covers'ess than ten(10)acres of land,and in the event of the foreclosure
of this MoRgage and sale of the property by sheriffs sale in such foreclosure proceedings,the time of one year for redem�ption from
� said sale provided by the statues of the State of lowa shalf be reduced to six(6)months provided the Mortgagee,in such action
files an election to waive any deficiency judgment against Mortgs3gors which may arise out of the foreclosure proceedings;al1 to be
consistent with the provisions of Chapter 628 of the lowa Code If the redemption period is so reduced,for the first three(3)months
� after sale such right of redemption shali be exclusive to the Mort�agor,and the time periods in Sections 628.5,628.15 and 628.16
• of the�owa Code shall be reduced to four(4)months. It is turther agreed that the period of redemption aRer a foreclosure of this
� Mortgage shall be reduced to sixty(60)days if all of the three following contingencies develop:(1)The real estate is less than ten
_ (10)acres in size;(2)the Court finds affrmatively that the said re:al estate has been abandoned by the owners and those persons
personally liable under this Mortgage at the time of such foredosure;and(3)Mortgagee in such action files an election ta waive
any deficiency judgment against Mortgagors or their successors in interest in such action.If the redemption period is so reduced,
Mortgagors or their successors in interest or the owner shall hame the exclusive right to redeem for the first thirty(30}days after
such sale,and the time provided for redemption by creditors as provided in Sections 628.5,628.15 and 628.16 of the lowa Code
shall be reduced to forty(40}days.Entry of appearance by pleading or docket entry by or on behalf of Mortgagors shall be a
presumption that the property is not abandoned.Any such redemption period shall be consistent with all of the provisions of
Chapter 628 of the lowa Code.This paragraph shall not be c.onstrued to Iimit or otherwise affed any other redemption provisions
contained in Chapter 628 of the lowa Code.
18.Attomeys'Fees. Mortgagors shall pay on demand all costs and expenses incurred by Mortgagee in enforcing or
protecting its rigMs and7emedies hereunder,including,but not limited to,reasonable attorneys'fees and legal expenses.
19.Forbearance not a Walver,Rights and Remedies Cumulative. No delay by Mortgagee in exercisi�g any right or
remedy provided herein or otherwise aRorded by Iaw or equity st�all be deemed a waiver of or preclude the exercise of such right or
remedy,and no waNer by Mortgagee of any particular provisio�s of this Mortgage shall be deemed effective unless in writinc,
signed by Mortgagee.Af�such rights and remedies provided for herein or which Mortgagee or the holder of the Obligations may
have otherwise,at law or in equity,shall be distinct,separat?and cumulative and may be exercised concurrently,independently or
successively in any order whatsoever,and as oRen as the cixasion therefor arises.
20.Notices. All notices required to be given hereundc�r sha�l 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.Ifto Mortgagors,to:Don D.Junk,P.O.Box 1123,Dubuque,lowa 52004-1123
b.If to Mortgagee,to:Community&Economic De��elopment Department;City Hall;50 West 13th St.;Dubuque,Iowa
52001
or to such other address or person as hereafter designated in writing by the applicable party in the manner provided in this
paragraph for the giving of notices.
21.Severability. In the event any portion of this Mortgace shall,for any reason,be held to be invalid,illegal or
unenforceable in whole or in part,the remaining provisions sha!I not be affected thereby and shall continue to be valid and
enforceable and if,for any reason,a court finds that any pravis�on of this Mortgage is invalid,illegal,or unenforceable as writier.,
but that by fimiting such provision it would become vatid,legal and enforceable than such provision shall be deemed to be written,
construed and enforced as so limited.
22.Further Assurances. At any time and from time to time until payment in full of the Obligations,Mortgagors will,at the
request of Mortgagee,promptly execute and deliver to MoRgagee such additional instruments as may be reasonably required to
further evidence the fien of this Mortgage and to further protect tY�e security interest of Mortgagee with respect to the Mortgaged
Property,including,but not limited to,additional securify agreements,financing statements and continuation statements.Any
expenses incurred by Mortgagee in connection with the recprdation of any such instruments shal�become additional Obligations of
Mortgagors secured by this Mortgage.Such amounts sha�I be immediately due and payable by Mortgagors to Mortgagee,
23.Successors and Assigns bound;Number;Gender;Q�gents;Captfons. The rights,covenants and agreements
contained herein shall be binding upon and inure to the ben�fit of the respective Iegal representatives,successors and assigns of
the parties.Words and phrases contained hereir,including acknowledgment hereof,shall be construed as in the singular or plural
number,and as masculine,feminine or neuter gender according lo the contexts.The captions and headings of the paragraphs of
this Mortgage are for convenience only and are not to be usPd!o interpret or define the provisions hereof.
24.Governing Law. This Mo�tgage shall be govemed by�3nd construed in accordance with the laws of the State of lowa,
25.Release of Rights of Dower,Homestead and Distributive Share. Each of the undersigned hereby relinquishes all
rights of dower,homestead and distributive share in and to the Mortgaged Property and waives all rights of exemption as to any of
the Mortgaged Property.
26.Acknowledgment of Receipt of Copies of Debt I�istrument. Mortgagors hereby acknowledge the receipt of a copy of
this Mortgage together with a copy of each promissory note secured hereby.
27.Additional Pravisions. �
Dated:May 6,1998
� DON D. , ortgagor
�
I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN M�4NY CASES PROTECTED FROM THE CLAIMS OF CREDITORS
AND EXEMPT FROM JUDICIAL SALE;AND THAT BY SIGNING THIS MORTGAGE,I VOLUNTARILY GIVE UP MY RIGHT TO
THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE.
Dated'.
STATE OF IOWA
ss:
COUNTY OF DUBUQUE
On this May 6,1998,before me,the undersigned,a Notary Public,personally appeared Don D.Junk to me known to be ihe
identical persons named in and who executed the foregoing instn�ment,and acknowledged that they executed the same as their
voluntary act and deed.
� :: Agnes Krame�o�Public
�1 MY �1IGN EXJIRCS�
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