Partial Release of Mortgage_River Valley NurseryMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Partial Mortgage Release for River Valley Nursery
DATE: March 2, 2011
Dubuque
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AII- AmedcaCity
2007
The City Council and River Valley Nursery and Landscape, Inc. (River Valley) entered
into a UDAG loan agreement on April 27, 2004, to provide $20,000 to help River Valley
expand their operations. The principal was due April 15, 2009. Council approved an
extension to December 2009. As of March 1, 2011, principal remaining on the loan is
$12,271.45.
River Valley has been negotiating with Habitat for Humanity to purchase a portion of
their property to construct a house. A title search of the property was conducted and
shows mortgages by American Trust and the City as collateral for loans to the business.
Habitat for Humanity has requested that each of the Iienholders do a Partial Release of
their mortgages to have clean title to the parcel they want to purchase.
Economic Development Director Dave Heiar recommends City Council approval of a
partial release of the mortgage on River Valley's property to facilitate sale of a lot to
Habitat for Humanity.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Partial Mortgage Release for River Valley Nursery e9 "-‘
DATE: March 1, 2011
Dubuque
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2007
INTRODUCTION
This memorandum outlines a recommendation for the City Council to approve a Partial
Release of a mortgage on property owned by River Valley Nursery and Landscape, Inc.
(hereinafter referred to as `River Valley').
BACKGROUND
The City Council and River Valley entered into a UDAG loan agreement on April 27,
2004 to provide $20,000 to help River Valley expand their operations. The principal
was due April 15, 2009. Council approved an extension to December 2009. As of
March 1, 2011, principal remaining on the loan is $12,271.45.
River Valley has been negotiating with Habitat for Humanity to purchase a portion of
their property to construct a house. A title search of the property was conducted and
shows the Bank's (American Trust) and the City's mortgage on the property as collateral
for loans to the business. Habitat for Humanity has requested that each of the
lienholders do a Partial Release of their mortgages to have clean title to the parcel they
want to purchase.
DISCUSSION
River Valley has been expecting a significant payment for a job completed in 2010 (as a
subcontractor in the DICW North Siegert project) which was verbally committed to pay
off the City's loan. Staff had a phone conversation with Wayne Klostermann, the
principal for River Valley, about the status of that payment. River Valley has received a
portion of the funds expected from the completed work, but as of today, no payment has
been made to the City with those funds. River Valley is expecting an additional $10,000
payment from the job.
Staff has contacted American Trust about the use of the proceeds of the land sale.
They have agreed that $600 of the sale proceeds will go to the City to pay down
principle. Staff has also contacted River Valley to make a payment of $2,500 to the City
as a commitment to paying off the loan. Should both these payments be received,
principal remaining on the note would be $9,171.45. Once the final payment of $10,000
has been received from the job, those funds would close out the loan. River Valley
agreed to allow the contractor to make a joint check to the City and River Valley to
finalize this loan.
RECOMMENDATION
It is recommended that the City Council approve the attached resolution approving a
partial release of the mortgage on River Valley's property to facilitate sale of a lot to
Habitat for Humanity.
ACTION STEP
The action step for the City Council is to approve the attached resolution.
cc: Cheryl Pregler, Finance Department
RESOLUTION NO. 76 -11
RESOLUTION APPROVING A PARTIAL RELEASE OF MORTGAGE FOR
RIVER VALLEY NURSERY AND LANDSCAPE, INC.
Whereas, Dubuque Nursery and Landscape operates a business at 2813
Jackson Street, and
Whereas, the City of Dubuque approved an Urban Development Action Grant
(UDAG) loan to Dubuque Nursery and Landscape on April 5, 2004;
Whereas, the Company has requested a partial release of the mortgage to
facilitate a sale of a parcel to Habitat for Humanity to construct a house;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the partial release of mortgage for River Valley Nursery and
Landscape, Inc. is hereby approved.
Section 2. That the City Manager is authorized to execute, on behalf of the
City of Dubuque, Iowa, said partial release of mortgage in substantially the form
attached hereto, but with such changes as the City Manager, with the assistance of the
Corporation Counsel, find to be appropriate, the City Manager's execution thereof to
constitute this City Council's approval of said partial mortgage release.
Passed, approved and adopted this 7th day of March, 2011.
eanne F. Schneider, City Clerk
F: \USERS \Econ Dev \River Valley Nursery\20110307 River Valley Partial Release Mtge Reso.doc
Roy D. Buol, Mayor
Frattalone Companies
Attn: Tom Everson
3205 Spruce Street
Little Canada, MN 55117
I, Wayne Klostermann of River Valley Nursery and Landscaping, request that any
further payments from Frattalone Companies, for work completed on the North Siegert
Project in the Dubuque Industrial Center West be issued as a dual payee to River Valley
Nursery and Landscaping and the City of Dubuque.
This request is irrevocable unless the City of Dubuque provides a written release to
Frattalone Companies.
Wayne Klostermann
Date
/7/17-. !/
March 1, 2011
PARTIAL RELEASE OF REAL ESTATE MORTGAGE
t, a THE IOWA STATE BAR ASSOCIATION
Official Form No 130
Recorder's Cover Sheet
Preparer Information: (Name, address and phone number)
James A. O'Brien Suite 330, 300 Main Street Dubuque, IA 52001 (563) 589 - 4381
Taxpayer Information: (Name and complete address)
River Valley Nursery and Landscape, Inc. 2813 Jackson Street Dubuque, IA 52001
Return Document To: (Name and complete address)
James A. O'Brien Suite 330, 300 Main Street Dubuque, IA 52001
Grantors:
City of Dubuque, Iowa
Grantees:
River Valley Nursery and Landscape,
Inc.
Legal description: See Page 2
Document or instrument number of previously recorded documents:
® The Iowa State Bar Association 2005
IOWADOCSO
THE IOWA STATE BAR ASSOCIATION
Official Form No. 130
James A. O'Brien
FOR THE LEGAL EFFECT OF THE USE OF
THIS FORM, CONSULT YOUR LAWYER
KTA /,,
. 1t" PARTIAL RELEASE OF REAL ESTATE MORTGAGE
2
•
The undersigned, the present owner(s) of the mortgage hereinafter described, for
receipt of which is hereby acknowledged, do hereby acknowledge that the following
situated in Dubuque County, Iowa, to wit:
valuable consideration,
described real estate
2 of the Easterly 170
Dubuque ", in the City
The Westerly 85 feet of the Easterly 170 feet of Lots 351 and 352, Lots 1 and
feet of Lot 353, and the Easterly 170 feet of Lot 354, in "Davis Farm a part of
of dubuque, Iowa, according to the recorded Plat thereof
is hereby released from the lien of the real estate mortgage, executed by
River Valley Nursery and Landscape, Inc.
dated April 28. 2004 , recorded in the records of the Office of the
Recorder of the County
-
of Dubuque State of Iowa, recorded as document reference number 8767
,
specifically
reserving and retaining the mortgage lien and all
embraced in the mortgage above described.
including acknowledgment hereof, shall be construed
feminine or neuter gender, according to the context.
day of March 2011 ,
mortgage rights against all
as in the singular or
of the remaining property
Words and phrases herein,
plural, and as masculine,
�!�
Dated this 0
CORPORATE /PARTNERSHIP
STATE OF IOWA , COUNTY
This instrument was acknowledged
Michael C. Van Milligen
City of Dubuque, Iowa
by: chael C. Van
OF Dubuque
Milligen, City Manager
before me on /.. e d °, /1 , by
as City Manager of
the City of Dubuque, Iowa
INDIVIDUAL
STATE OF IOWA , COUNTY
This instrument was acknowledged
, Notary Public
OF
•
before me on , by
•
NOTE: For complete release of
, Notary Public
real estate mortgage, see Form No. 129.
OThe Iowa State Bar Association 2005 130 PARTIAL RELEASE OF MORTGAGE
10WADOCSS Revised June 2005