101-123 Main St. AssumAgreementRESOLUTION 70-00
A RESOLUTION APPROVING AN ASSUMPTION AGREEMENT FOR
PROPERTY LOCATED AT 101-123 MAIN STREET.
Whereas, the City of Dubuque, Iowa, provided a Commercia!/Industrial Building
Rehabilitation Loan to William Hos and Sidney Wallace on May 7,1996 for the exterior
rehabilitation of property located at 101-123 Main Street; and
Whereas, the City of Dubuque approved Sidney and Colleen Wallace to assume the
mortgage and promissory note liability on February 15, 1999 by Resolution 65-99; and
Whereas, Sidney and Colleen Wallace are proposing to sell the property to Anthony Kemp
and William Barrick; and
Whereas, Sidney and Colleen Wallace have asked the City to transfer their liability for the
mortgage and promissory note liability associated with said property to Anthony Kemp and
William Barrick; and
Whereas, the Assumption Agreement, hereto attached and by this reference made a part
hereof, sets forth the terms and conditions of the agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1.
That the Assumption Agreement is hereby accepted and approved.
Section 2. That the Mayor is hereby authorized to execute, on behalf ofthe City
Council of the City of Dubuque, Iowa, the attached Assumption Agreement.
Passed, approved and adopted this 6th day of March, 2000.
Terrance M. Duggan
Mayor
Attest:
Jeanne F. Schneider
City Clerk
ASSUMPTION AGREEMENT
This Agreement is made as of the 24 day of March, 2000
between Sidney R. Wallace and Colleen M. Wailace(Sellers), Anthony 1. .Kemp and
William R. Barrick (Buyers), and the CITY OF DUBUQUE, lOW A (City),
WHEREAS, Buyers wish to buy and Sellers wish to sell certain real estate legally
described as follows, to wit:
Lot 80 and the South land 5/12 feet of Lot 79 in the City of Dubuque, Iowa:
AND WHEREAS, this property is currently subject to a Mortgage held by the City of
Dubuque, Iowa,
NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties
agree as follows:
1.
Buyers assume and agree to pay as part of the purchase price for the above
described real property, the balance owing on a certain Promissory Note to the
City, dated the 2611> day of September, 1996 secured by a Mortgage made to the
City, dated the 26th day of September, 1996 which Mortgage was tiled on the 411>
day of October, 1996 as Inst. No, 1184-96 which Buyers hereby assume.
2.
Buyers agree to pay said Note according to it's face and terms and comply with
the terms, obligations and conditions of the Mortgage.
3,
Sellers agree to transfer the above-described real property to Buyers on the terms
and conditions previously agreed.
4.
City releases Sellers from any further liability on said Note and Mortgage.
Page 2
Assumption Agreement
Wallaces/KemplBarrick
Sidney R. Wallance SELLER
Colleen M. Wallace SELLER
Anthony J. Kemp BUYER
William R. Barrick BUYER
BY:
CITY OF DUBUQUE, IOWA
Terrance M. Duggan, Mayor
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 2, 2000
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C, Van Milligen, City Manager
SUBJECT:
Assumption of Promissory Note and Mortgage Obligation for Property Located at
101-123 Main Street
Sidney and Colleen Wallace have requested that the City consent to an assumption agreement
that would allow them to transfer responsibility for a promisory note and mortgage to Anthony
Kemp and William Barrick who wish to purchase the Wallace property at 101-123 Main Street.
The promissory note is currently held by the City to secure a Community Development Block
Grant (CDBG) loan provided to rehabilitate property located at 101-123 Main Street.
Community and Economic Development Director Jim Burke is recommending that the City
Council approve the loan assumption and authorize the Mayor to sign the agreement on the
City's behalf,
I respectfully request Mayor and City Council approval.
Michael C. Van Milligen
MCVM/dd
Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Community and Economic Development Director Jim Burke
CITY OF DUBUQUE, IOWA
MEMORANDUM
February 28, 2000
TO:
Michael Van Milligen, City Manager
FROM:
James Burke, Community and Economic Development Director
SUBJECT:
Assumption of Promissory Note and Mortgage Obligation for
Property Located at 101-123 Main Street
INTRODUCTION
Sidney and Colleen Wallace have requested that the City consent to an assumption agreement
that would allow them to transfer responsibility for a promissory note and mortgage to Anthony
Kemp and William Barrick who wish to purchase the Wallace property at 101-123 Main Street.
The promissory note is currently held by the City to secure a Community Development Block
Grant (CDBG) loan provided to rehabilitate property located at 101-123 Main Street.
BACKGROUND
On May 7, 1996, the City provided a CDBG Commerciall Industrial Rehabilitation Loan of
$100,000 to William Hos and Sidney Wallace, co-owners of the subject property, for exterior
rehabilitation purposes, Using loan proceeds, the building was reroofed, the rear wall repaired,
several windows and doors replaced, the building repainted and a dilapidated rear porch structure
removed.
On February 15, 1999 the Council approved an assumption agreement for Sidney and Colleen
Wallace to assume the mortgage and promissory note liability from William Hos due to his
death,
DISCUSSION
The proposed assumption agreement facilitates the Wallaces' sale of the property to Anthony
Kemp and William Barrick. The agreement stipulates that Anthony Kemp and William Barrick
will assume responsibilities for both the promissory note and mortgage signed on September 26,
1996 that secure the City's rehabilitation loan and that Sidney and Colleen Wallace will be
released from liability. The City will retain its first position mortgage on the property,
City staff met with the buyers, Kemp and Barrick, and talked with their bank. The buyers have a
successful inn operation in Galena called Irish Hollow, They plan to make improvements to the
101-123 Main building which will complement the Old Main Neighborhood Revitalization
Strategy.
We also reviewed a current appraisal for the property which indicated a value of$150,OOO, This
exceeds the amount of outstanding principal by $50,000,
RECOMMENDATION
I recommend that the City Council approve the loan assumption and authorize the Mayor to sign
the agreement on the City's behalf. The agreement allows the Wallaces to sell the property and to
be released from liability for the CDBG loan. Anthony Kemp and William Barrick will then be
fully responsible to satisfY the terms, obligations and conditions of the mortgage,
This agreement has been reviewed and approved by the City Legal Department.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
attachments
Prepared by: Aggie Kramer, Community Development Specialist