Dubuque Main Street Loan Pool Specs 2019 Copyrighted
February 18, 2019
City of Dubuque Consent Items # 10.
ITEM TITLE: Dubuque Main Street Loan Pool Specs 2019
SUMMARY: City Manager providing a copy of Dubuque Main Streefs
Central Avenue Acquisition and Rehabilitation Funding
Loan Pool specifications.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Dubuque Main Street Loan Pool Specs 2019 Supporting Documentation
D U B U Q U E
MAiN STREET
Central Avenue Acquisition and Rehabilitation Funding
Dubuque Main Street Loan Pool Details
The following specifications will be considered"official" for the Dubuque Main Street loan pool for 2019:
DESIGNATID AREA For the purposes of the 2019 DMS Loan Pool,the eligible area shall encompass
any property located on Central Avenue from 22°d Street to Fourth Sheet. Any
property within a one block radius of this area is also considered eligible for the
Loan Pool.
MAXIMUM&NIINID�IUM Maximum loan amount under this program will be$25Q000 per commercial
LOAN AMOUNT entity. All loans shall be participated pro rata unless the lead institution chooses
to retain the loan. Each institution maintains the right to use its own
underwriting criteria when considering each participation and may choose to not
participate.
Minimum loan amount will be $l OQ000.
TERM Loans shall have a term of five years.
INTEREST RATE The interest rate shall be fixed at the time of funding at the current Wall Street
Joumal Prime Rate minus 1.00% for the term of the loan.
PAYMENTS The loan shall require monthly interest only payments during the fust two years
of the loan. Required principal and interest payments would commence the
twenty-fifth month of the loan. Principal and interest payments shall be
calculated on no more than a twenty-year amortization.
ELIGIBLE ACTIVITIES Projects are eligible for this program for the purpose of acquisition and/or
rehabilitation expenses of commerciaUmixed used properties on or near Central
Avenue(per DESIGNATED AREA).
The borrower must have a plan for development of any property acquired. These
plans must complement Dubuque Main StreeYs vision of a revitalized downtown
as indicated in the organization's mission statement If there is any question about
eligibility of a project,approval will be determined by a consensus of the Main
Street Design or Economic Development Committees. All decisions made by the
committees will be considered final.
COLLATERAL A first real estate mortgage or deed of trust on the subject property would be
required. Loan amount shall not exceed 75%of the actual purchase price of the
property or 75%of the"as completed" appraised value of the property.
(more)
Central Avenue Acquisition and Rehabilitation Funding
Dubuque Main Street Loan Pool Details
(CONTINUID)
PARTICIPATING FTNANCIAL Participating financial institutions include Dubuque Bank&Trust,
INSTITUTIONS American Trust&Savings Bank,US Bank,Premier Bank and Fidelity Bank.
CONIlVIITMENT Each institution will commit$SOQ000 to this pool, for a total of$2,SOQ000.
TIME FRAD�IE Applications will be accepted after January 1, 2019,with loan closing required
by December 31, 2019.
The terms and conditions detailed above are a broad outline of the Dubuque Main Street loan pool and are not all-
inclusive. Participating banks,with guidance from Dubuque Main Street,will determine the eligibility of projects,
credit worthiness, collateral, and repayment terms. Terms and conditions may change at a future date.
Dubuque Main Sheet may also present larger requests for consideration to the participating financial institutions on
a case-by-case basis.
If you require more informatioq or if you have any questions or comments,please contact Dan LoBianco
at(563)588-4400.
Revised Date: 1-26-19