Advanced Data-Comm Mortgage Position
Consent Agenda Item #17A
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 12, 1999
TO: Honorable Mayor and City Council Members
FROM: Michael Van Milligen, City Manager j11 V /,\
SUBJECT: Mortgage Position for Advanced Data-Comm Property in Dubuque Technology
Park
Introduction
This memorandum requests City Council authorization to send a letter to ADC Properties LC
and American Trust and Savings Bank acquiescing to the bank's superior mortgage position in
the property being developed for Advanced Data-Comm at the Dubuque Technology Park.
Discussion
The City's Development Agreement with Advanced Data-Comm and ADC Properties LC
provides that until the building construction is complete, the City may revest the title to the land
sold to ADC Properties in the event of a default under the Agreement. This authority to take
back the title is subject to any first mortgage which the City acquiesces in.
American Trust is ADC Properties' primary lender and, as such, will hold a first position
mortgage on Lots 4 and 5, Block 2 of the Technology Park. The company and bank lawyers
have asked that a letter be sent to them verifying the City's agreement with this provision.
Action
The action for the City Council is to authorize the City Manager to send a letter to ADC
Properties LC and American Trust and Savings Bank acquiescing to the bank's first mortgage
position in the property being purchased by ADC Properties LC in the Dubuque Technology
Park.