Bishop's Block Loan Maturity Extension for Property at 90 Main StreetCopyrighted
June 15, 2020
City of Dubuque Consent Items # 11.
ITEM TITLE: Bishop's Block Loan Maturity Extension for Property at 90
Main Street
SUMMARY: City Manager recommending approval of a resolution
extending the loan maturity until June 30, 2021, for
Bishop's Block loan for the Bishop Block Building at 90
Main Street.
SUGGESTED DISPOSITION:
RESOLUTION Approving a First Amendment to the Loan
Agreement between the City of Dubuque and Bishop's
Block, an Iowa Limited Partnership, for the Bishop's Block
Building by extending the maturity date of the loan.
Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Bishop's Block Loan Maturity Extension-MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Approving Amendment Resolutions
First Amendment Supporting Documentation
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: The Bishop's Block Building, 90 Main Street, Loan Maturity Date
Extension to June 30, 2021
DATE: June 9, 2020
Dubuque
bitil
All-A.aia City
111111
2007.2012.2013
2017*2019
Housing and Community Development Director Alexis Steger recommends City Council
approval of a resolution extending the loan maturity until June 30, 2021, for Bishop's
Block loan for Bishop Block building at 90 Main. The City is also aware that the Iowa
Finance Authority has granted an extension of its state loan on the project to 2024 and
forgave the additional $240,000 loan. Part of the reason to grant an extension is an
effort to coordinate with the Iowa Finance Authority to assist Bishop's Block with a
disposition strategy for the Bishop's Block building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
7--
Mic ael C. Van Milligen
WIT
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Alexis M. Steger, Housing and Community Development Director
Masterpiece on the Mississippi
Dubuque
kingbal
MI -America City
nli I
111111
2007+2012*2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: The Bishop's Block Building, 90 Main Street, Loan Maturity Date
Extension to June 30, 2021
DATE: June 8, 2020
BACKGROUND
In 1993, Bishop's Block, a Maine limited partnership, now an Iowa limited partnership
("Bishop's Block") sought assistance for a total renovation of the building at 90 Main
Street, the Bishop's Block building, from the City of Dubuque, the Iowa Finance
Authority and the Iowa Economic Development Authority. Additionally, a private loan
covering the funding gap and Low -Income Housing Tax Credits were also utilized.
Bishop's Block and the City entered a Loan Agreement on October 23, 1993, providing
for a $350,000 loan for the project. As of December 20, no payments had been made
on that loan and interest has continued to accrue. Several extensions to the maturity of
the loan have been provided by the City. Bishop's Block in December 2019 sought
another extension.
Effective December 31, 2019, in Resolution 431-19, the City of Dubuque granted Bishop's
Block an extension of the maturity date of the loan on the Bishop's Block building to June
30, 2020. The City is also aware that the Iowa Finance Authority (IFA) has granted an
extension of its loan on the project to 2024 and that IFA have forgiven its $240,000 loan.
Part of the reason for the City to grant an additional extension is to coordinate with IFA in
assisting Bishop's Block with a disposition strategy for the Bishop's Block building.
DISCUSSION
Due to the COVID-19 pandemic, Bishop's Block is experiencing financial impacts and
hardships regarding its affordable housing properties, its residents, and its employees.
Bishop's Block is now requesting an extension of the term of the City loan by one
additional year to June 30, 2021.
As part of the City's agreement to extend the term of the loan, Bishop's Block agrees to
allow a complete inspection of the building and all rental units to assess the capital needs.
Bishop's Block also will cooperate with the City to provide any additional information the
City needs to evaluate the financial ability of Bishop's Block to repay the loan or to develop
a disposition strategy.
Paramark Real Estate Services (Paramark) the management company that manages the
Henry Stout Senior Apartments and the Diamond Senior Apartments, has been hired to
take over the management of the Bishop's Block building. The Housing & Community
Development Department has an established relationship with Paramark. Needed repairs
are already being made on the property.
The options are limited as to who can assist Bishop's Block with the re -syndication of the
building due to the Low -Income Housing Tax Credits. Therefore, the Housing &
Community Development Department finds it prudent to allow for additional time to
explore all options. Bishop's Block has shown an effort in working on options for the
building and is working closely with staff to determine the options available.
The interest over the term of the loan is, and will be, as follows:
Date
Interest Rate
Months
Monthly Interest
Total
October 1993 -
December 1994
0.0%
15
$ -
$ -
January 1995 -
September 1999
1.0%
57
$291.66
$16,624.62
October 1999 -
September 2001
2.0%
24
$583.33
$13,999.92
October 2001 —
December 2017
3.0%
196
$875.00
$171,500.00
January 31, 2018 -
December 31, 2019
3.0%
24
$875.00
$21,000.00
December 31, 2019 —
June 30, 2020
3.0%
6
$875.00
$5,250
July 1, 2020 — June
30, 2021
3.0%
12
$875.00
$10,500
Total Interest
$238,874.54
Principal Balance
$350,000.00
Total due 12/31/2019
$588,874.54
The total amount due on the City loan on June 30, 2021 will be $588,874.54.
RECOMMENDATION
I respectfully request City Council approval of the attached resolution for a loan maturity
extension for Bishop's Block to June 30, 2021.
Cc: Jenny Larson, Budget and Finance Director
Jill Connors, Economic Development Director
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RESOLUTION NO. 180-20
APPROVING A FIRST AMENDMENT TO THE LOAN AGREEMENT BETWEEN THE
CITY OF DUBUQUE AND BISHOP'S BLOCK, AN IOWA LIMITED PARTNERSHIP,
FOR THE BISHOP'S BLOCK BUILDING BY EXTENDING THE MATURITY DATE OF
THE LOAN
WHEREAS, the City of Dubuque entered into a Loan Agreement with Bishop's Block, a
Maine limited partnership, now an Iowa limited partnership, on August 23,1993 to provide a
loan (the Loan) for the renovation of the Bishop's Block Building at 90 Main Street in the City
of Dubuque; and
WHEREAS, the original maturity date of the Loan was in October 23, 2013: and
WHEREAS, the City Council has granted extensions of the maturity date of the Loan;
and
WHEREAS, Bishop's Block has requested an additional extension of the maturity date
of the Loan to June 30, 2021; and
WHEREAS, the City Council finds that it is in the best interest of the City to approve an
extension of the maturity date of the Loan, subject to the conditions set forth in the attached
First Amendment to Loan Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The First Amendment to Loan Agreement extending the maturity date to
June 30, 2021 is hereby approved.
Section 2. The City Manager is authorized and directed to take such action as may be
necessary to carry out the terms of the Loan Agreement, as amended.
Passed, approved and adopted this 15th day of June 2020.
(,0
Roy D. Buol, Mayor
Attest:
Kevin (irnstahl, CMb Ci i Clerk
FIRST AMENDMENT
TO
LOAN AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
BISHOP'S BLOCK
This First endment to Loan Agreement, dated for reference purposes the
day of , 2020, is made and entered into by and between the City
of Dubuque, Icy (City) and Bishop's Block, an Iowa limited partnership.
WHEREAS, City entered into a Loan Agreement with Bishop's Block, a limited
Maine partnership, now an Iowa limited partnership, on August 23, 1993 to provide a loan
(the Loan) for the renovation of the Bishop's Block building at 90 Main Street in the City
of Dubuque; and
WHEREAS, the original maturity date of the Loan was October 23, 2013: and
WHEREAS, the City Council has granted extensions of the maturity date of the
Loan; and
WHEREAS, Bishop's Block has requested an additional extension of the maturity
date of the Loan to June 30, 2021; and
WHEREAS City and Bishop's Block desire to amend the Loan Agreement as set
forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN CITY AND
DEVELOPER AS FOLLOWS:
1. The Loan Agreement is amended by adding the following:
29. ADDITIONAL CONDITIONS.
(a) The maturity date of the Loan is extended to and including June 30,
2021.
(b) Company shall allow City to conduct an inspection, satisfactory to
City in its sole discretion, of the Bishop's Block building and all rental units to
assess the capital needs.
(c) Company shall cooperate with City to provide all additional
information requested by City to evaluate the financial ability of Company to repay
the Loan or to develop a disposition strategy for the Bishop's Block building.
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2. All other terms of the Loan Agreement, as amended, shall remain in full
force and effect.
CITY OF DUBUQUE, IOWA
By
Roy D. t ol, Mayor
Attest:
Kevi . "S. Firnstahl, City Clerk
BISHOP'S BLOCK, AN IOWA LIMITED
PARTNERSHIP
By I
McDermott Place, A Nebraska
non-profit corporation, its General
Partner
Printed Name
2