Authorizing City Manager to File and Release Liens on Properties in Downtown Rehabilitation Loan ProgramCity of Dubuque
City Council Meeting
Consent Items # 10.
Copyrighted
June 21, 2021
ITEM TITLE: Authorization of the City Manager or the City Manager's Designee to File
and Release Liens on Properties Participating in the Downtown
Rehabilitation Loan Program
SUMMARY: City Manager recommending approval of a resolution authorizing the City
Manager or the City Manager's Designee to File and Release Liens on
Properties Participating in the Downtown Rehabilitation Loan Program.
RESOLUTION Authorizing the City Manager or the City Manager's
designee to file and release liens on properties participating in the
Downtown Rehabilitation Loan Program
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Downtown Rehabilitation Loan Program Authorization to City Manager Memo
File Release Liens-MVM Memo
Staff Memo
Resolution
Staff Memo
Resolutions
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Authorization of the City Manager or the City Manager's Designee to File
and Release Liens on Properties Participating in the Downtown
Rehabilitation Loan Program
DATE: June 15, 2021
Economic Development Director Jill Connors recommends City Council approval of a
resolution authorizing the City Manager or the City Manager's Designee to File and
Release Liens on Properties Participating in the Downtown Rehabilitation Loan
Program.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Micl4ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
THE CITY OF
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: Authorization of the City Manager or the City Manager's Designee to File
and Release Liens on Properties Participating in the Downtown
Rehabilitation Loan Program.
DATE: June 14, 2021
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the City Manager or the City Manager's Designee to File and Release Liens on Properties
Participating in the Downtown Rehabilitation Loan Program.
BACKGROUND
The Downtown Rehabilitation Loan Program (DRLP) is a revolving loan fund. The DRLP
encourages private investment and rehabilitation efforts within the City's Greater
Downtown. Capitalized with available tax increment financing funds from the Greater
Downtown Economic District, the DRLP provides a low -interest loan at a maximum of
$300,000. The loan includes forgiveness whereby qualifying applicants may have
portions of the loan forgiven for job and housing creation within the District. The City
requires a mortgage on property valued equal to or greater than the loan as collateral
until the loan is paid in full.
Due to the Loan Program's success when initially enacted, it was quickly oversubscribed
— with several projects agreeing to accept disbursement of the funds at a later date —
many of them quite a number of years after the completion of the project. Presently, all
committed loans have been disbursed. The City currently has a mortgage on ten
properties through the DRLP.
DISCUSSION
Mortgages and liens held by the City represent an interest in City of Dubuque real estate.
Iowa Code Section 364.7 requires a public hearing for the purpose of disposing City -
owned real estate. However, the mortgages required under the DRLP are more
representative of protection of City interests than physical property owned by the City.
Once a DRLP participant repays their loan in full, the City files and releases the adjoining
mortgage.
Given the backlog of mortgages and ceremonial nature of their release, it is impractical
to have each mortgage release undergo a public hearing and require approval by the City
Council.
RECOMMENDATION / ACTION STEP
I recommend that the City Council adopt the attached resolution authorizing the City
Manager or the City Manager's Designee to file and release liens on properties
participating in the Downtown Rehabilitation Loan Program.
2
Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque, IA 52001, 563-589-4393
Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque, IA 52001, 563-589-4393
RESOLUTION NO.203-21
AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO FILE
AND RELEASE LIENS ON PROPERTIES PARTICIPATING IN THE DOWNTOWN
REHABILITATION LOAN PROGRAM
WHEREAS, the City of Dubuque, Iowa by and through its Economic Development
Department, executes property liens and mortgage instruments on behalf of the City; and
WHEREAS, the various lien and mortgage instruments create an interest by the City
in the various parcels of real estate which have been rehabilitated or repaired under the
Downtown Rehabilitation Loan Program; and
WHEREAS, the City is frequently requested to release or dispose of its interest in
said real estate after the property owner has fulfilled the financial and other obligations of a
lien and /or mortgage instrument; and
WHEREAS, it is impractical to have each such release or disposition approved by
the City Council.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Manager, or the City manager's designee, is authorized to
release or dispose of the City of Dubuque interest in real estate which has been rehabilitated
through the Downtown Rehabilitation Loan Program, upon the determination of City
Manager, or the City manager's designee that the owner has fulfilled all the terms and
conditions of the lien and/or mortgage instrument involved.
Section 2. That the City Council shall retain the authority to release or dispose of the
interest in any real estate upon which the original terms and conditions of the lien or
mortgage instruments are not fulfilled.
Section 3. That this authorization shall apply to all future releases and dispositions,
as well as to any here -to -fore released or disposed of by the Economic Development
Department as part of the Downtown Rehabilitation Loan Program.
PASSED, APPROVED, AND ADOPTED this 21s' day of June, 2021.
Danny . Spr nk, Mayor Pro Tern
ATTEST:
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Adrienne N. Breitfelder dity Clerk