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10th and Central Parking Facility Adoption of MortgageMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Adopting Mortgage - Central Avenue Ramp DATE: December 1, 2011 Dubuque knerd All- America City 'I'll®, 2007 Parking Division Supervisor Tim Horsfield is recommending City Council approval of a Resolution adopting the First Priority Mortgage required by the U.S. Department of Commerce, Department of Economic Development Administration relative to their grant award of $1.5 million towards the construction of the Central Avenue Parking Ramp. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Tim Horsfield, Parking Division Supervisor 11111111111111111011111111111111 1111111111111111 Doc ID: 007232300008 Type GEN Kind RESOLUTION Recorded: 12/12/2011 at 03 :54:50 PM Fee Amt: $42.00 Page 1 of 8 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2011- 0001904 0 Preparer: Barry A. Lindahl, Esq. Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 (563) 583 -4113 Return to: Barry A. Lindahl, Esq. Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 (563) 583 -4113 RESOLUTION NO. 407 -11 AUTHORIZING THE CITY MANAGER TO SIGN AN AGREEMENT AND MORTGAGE IN FAVOR OF THE U.S. DEPARTMENT OF COMMERCE, ECONOMIC DEVELOPMENT ADMINISTRATION RELATED TO EDA AWARD # 05 -01 -04941 FOR THE CONSTRUCTION OF THE 101." AND CENTRAL PARKING FACILITY Whereas, the U.S. Department Of Commerce, Economic Development Administration (EDA) has awarded a Financial Assistance Award (the Award) to the City of Dubuque, Iowa in the amount of $1,500,000.00 for the construction of the 10th & Central Parking Facility, located at 975 Central Avenue, Dubuque, Iowa, and legally described as follows: Lot 1 of City Lot 204; Lot 1 of City Lot 205; Lot 1 of City Lot 206; Lot 1 of City Lot 207; Lot 1 of City Lot 208; the North 'Y of City Lot 261 and Lot 263, in the City of Dubuque, Iowa, according to the United States Commissioners Survey of the City of Dubuque, Iowa ; and Whereas, EDA requires as a condition of the Award that the City execute an Agreement and Mortgage in the form attached hereto, granting a twenty -year mortgage in favor of EDA on the 10th & Central Parking Facility. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Council hereby authorizes and directs the City Manager to execute and record the attached Agreement and Mortgage. Passed, approved and adopted this 5th day o December , 2011 Roy Df uol, Mayor X11°" d Lt.-Iti Attest: Kevi . S. Firnstahl, ity Clerk F:\ USERS \tsteckle \Lindahl\ Resolutions \Central Ram pE DAMortgage_113011.doc 1111111ii1 MIM0ENNEMMINIIIIIIII11 07274310008 Type GEN Kind MORTGAGE Recorded: 01/24/2012 at 10:10:07 AM Fee Amt: $42.00 Page 1 of 8 Dubuque County Iowa Kathy Flynn Thurlow Recorder Fi1e2012- 00001309 Preparer: Barry A. Lindahl, Esq. Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 (563) 583 -4113 Return to: Barry A. Lindahl, Esq. Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 (563) 583 -4113 AGREEMENT AND MORTGAGE WHEREAS, The City of Dubuque, Iowa (hereinafter "Mortgagor "), whose address is 50 West 13th Street, Dubuque, Iowa 5200] , has applied to, received and accepted from the United States Department of Commerce, Economic Development Administration (hereinafter "EDA") an award in the amount of one million five hundred thousand Dollars ($ 1,500.000.00) (hereinafter "Award Amount ") pursuant to a Financial Assistance Award (hereinafter "Award Agreement ") entered into by the parties on April 9 , 2010 , and bearing EDA Project Number 05 -01 -04941 the "Project "); and WHEREAS, pursuant to the application (hereinafter "Award Application") filed by Mortgagor requesting said award and pursuant to the Award Agreement, the Award Amount is to be used for the purpose of making improvements consisting of construction of a 477 space parking ramp. on the real property described in Exhibit "A," attached hereto and made a part- hereof (hereinafter the "Property "); and- WHEREAS, any transfer or conveyance of a project by a recipient of a Financial Assistance Award must have the prior mitten approval of EDA. However, EDA, under authority of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. § 3121 el.seq.) is not authorized to permit transfer or conveyance of a project to parties'which are not eligible to receive EDA Financial Assistance Awards unless EDA is repaid its share of the fair market value of the project or unless the authorized purpose of the EDA Financial Assistance Award was to develop Iand in order to lease it for a specific use, in which case EDA may authorize the lease(s) of the project if certain conditions are met; and WHEREAS, the aforesaid Award Agreement from EDA provides the authorized purpose for which the Award Amount may be used while further providing, inter alia, that Mortgagor will not sell, mortgage, or otherwise use or alienate any right to, or interest in the Property, (other than by a lease permitted by the Award Agreement), or use the Property for purposes other than, and different from, those purposes set forth in the Award Agreement and the Award Application made by Mortgagor, such alienation or use being prohibited by 13 C.F.R. part 314, or by 15 C.F,R, parts 14 and 24 (hereinafter the "Regulations ") as 'may he amended from time to time; and WHEREAS; the value of said right to repayment under the terms of the Regulations is difficult to establish; and WHEREAS, at this time, Mortgagor and EDA desire to establish a value for EDA's share of the Project in the event that the Property is used, transferred or alienated in iolation of the Award Agreement, or the Regulations; NOW THEREFORE, Mortgagor does hereby mortgage, warrant, grant and convey unto EDA, its successors and assigns, a mortgage on said Property to secure a debt that shall become due and payable by Mortgagor to EDA upon the use, transfer, or alienation of the Property, or interest therein, in violation of the Award Agreement or in violation of the Regulations, as such Award Agreement or Regulations may be amended from time to time, provided, however, that the lien and encumbrance of this AGREEMENT AND MORTGAGE shall terminate and be of no further force and effect 20 years from the date hereof, which period of years has been established as the useful life of the improvements to 4 other powers as my be deemed necessaiy. 12, Governing Law: Severability: This AGREEMENT AND MORTGAGE shall be governed by applicable Federal law and nothing contained herein shall be construed to limit the lights the EDA, its designees, successors or assigns is entitled to under applicable Federal law, In the event that any provision or clause of this instrtanient conflicts with applicable law, such conflict shall not affect other provisions of this instrument, which can be given effect without the conflicting provision, and to this end the provisions of this instrument are declared to be severable. IN r�T_NESS WHEREOF, Mortgagor has hereunto set its hand and seal on this tl' day of � , 20 l( . A completed duly recorded copy of this Agreement and Mortgage shall be forwarded to EDA. City of Dubuque, Towa Mortgagor By: Its: Michael C. Van Milligen, City Manager (The appropriate acknowledgment crust be included for recording in the Mortgagor's jurisdiction.) STATE OF COUNTY OF THIS INSTRUMENT WAS ACKNOWLEDGED B RE ME ON THIS C ,20/1,by agre &retort day of Kevin S. Firnstahl Notary Public, State of I owa limmimmimmmor tPP1 ' A x r • 1 w KEVIN S. FIRNSTAHL COMMISSION NO.745295 MY CO.MMISSI N EXPIRES A,? ?i. �