Downtown Facade Grant 233_241 Main StreetAddress: 233 & 241 Main St. Dubuque, IA 52001
STATE OF Iowa
County of Dubuque
) SS:
1
o � *"'"pa. TRACEY HUENEKE
_ Commission Number 7
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BY:
John K
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Doc ID: 007079700001 Type: GEN
Kind RELEASE OF MORTGAGE
Recorded: 07/05/2011 at 04:27:39 PM
Fee Amt: $7.00 Page 1 of 1
Dubuque County Iowa
Kathy Flynn Thurlow Recorder
File2011- 00009454
Prepared by/Return to: Tracey Hueneke, Dupaco Community Credit Union, P.O. Box 179
Dubuque, IA 52004 (563)557 -7600 Ext 2312.
RELEASE OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS: That a certain Mortgage, dated the 15 day of
May, A.D., 2007, executed between Butt's Florist, Inc., an Iowa Corporation and Dupaco
Community Credit Union and recorded on the 21st day of May, 2007 as File 2007 - 00007237 of
Dubuque County, IA, is hereby released this 1st day of July, A.D., 2011.
Legal: City Lot 75A Except the south 13 feet 3 inches thereof, in the City of Dubuque, Iowa,
according to the United States Commissioners' Map of the Town of Dubuque, Iowa
Vice President
iness Development
On this 1st day of July, 2011, before me, a Notary Public in and for the State of Iowa, personally
appeared John Koppes, who being first duly sworn, did say that he is Senior Vice President,
Business Lending, with Dupaco Community Credit Union; that no seal has been procured by
said corporation; that said instrument was signed on behalf of said corporation by authority of its
Board of Directors; and that the execution of this instrument was the voluntary a t and deed of
said corporation, by it voluntarily executed.
Public i land i. ' said county and state
1 oO
Prepared by: Aaron M. DeJong City Hall, 50 W. 13th Street, Dubuque, Iowa 52001 Phone: 563 - 583 -4393
Return to: same
MORTGAGE
1 iiiiiii iiiiii iii hill IIIII IOII IIIII IIIII hill hill hill hill hill 1111111111111
Doc ID: 007079710003 Type: GEN
Kind: MORTGAGE
Recorded: 07/05/2011 at 04:28:08 PM
Fee Amt: $17.00 Pape 1 of 3
Dubuque County Iowa
Kathy Flynn Thurlow Recorder
F11e2011- 00009455
THIS MORTGAGE is made between Butt's Florist, Inc. ( "Mortgagor") and City of Dubuque, Iowa (Mortgagee ").
[ ] If this box is checked, this Mortgage is a Purchase Money Mortgage as defined in the Iowa Code.
1. Grant of Mortgage and Security Interest. Mortgagor hereby sell, convey and mortgage unto Mortgagee, and grant a
security interest to Mortgagee in the following described property:
a. Land and Buildings. All of Mortgagors' right, title and interest in and to the following described real estate situated in Dubuque
County, Iowa (the "Land "); City Lot 75A, except the south 13 feet 3 inches thereof, in the City of Dubuque, Iowa, according to the
United States Commissioners Map of the Town of Dubuque, Iowa, and all buildings, structures and improvements now standing or at
any time hereafter constructed or placed upon the Land (the "Buildings "), including all hereditaments, easements, appurtenances,
riparian rights, mineral rights, water rights, rights in and to the lands lying in streets, alleys and roads adjoining the land, estates and
other rights and interests now or hereafter belonging to or in any way pertaining to the Land.
b. Personal Property. All fixtures and other personal property integrally belonging to, or hereafter becoming an integral
part of the Land or Buildings. whether attached or detached, including but not limited to, light fixtures, shades, rods, blinds,
Venetian blinds, awnings, storm windows, screens, linoleum, water softeners, automatic heating and air - conditioning
equipment and all proceeds, products, increase, issue, accessions, attachments, accessories, parts, additions, repairs.
replacements and substitutes of, to, and for the foregoing (the "Personal Property ").
c. Revenues and Income. All rents, issues, profits, leases, condemnation awards and insurance proceeds now or
hereafter arising from the ownership, occupancy or use of the Land, Buildings and Personal Property, or any part thereof
(the "Revenues and Income ").
TO HAVE AND TO HOLD the Land, Buildings, Personal Property and Revenues and Income (collectively called the
"Mortgaged Property "), together with all privileges, hereditaments thereunto now or hereafter belonging, or in any way
appertaining and the products and proceeds thereof, unto Mortgagee, its successors and assigns.
2. Obligations. This Mortgage secures the following (hereinafter collectively referred to as the "Obligations "):
a. The payment of the loan made by Mortgagee to Butt's Florist, Inc. evidenced by a promissory note dated July 1, 2011 in
the principal amount of $300,000.00, any renewals, extensions, modifications or refinancing thereof and any promissory
notes issued in substitution therefor; and
b. All other obligations of Mortgagors to Mortgagee, now existing or hereafter arising, whether direct or indirect, contingent
or absolute and whether as maker or surety, including, but not limited to, future advances and amounts advanced and
expenses incurred by Mortgagee pursuant to this Mortgage.
3. Representations and Warranties of Mortgagors. Mortgagors represent, warrant and covenant to Mortgagee that (i)
Mortgagors hold clear title to the Mortgaged Property and title in fee simple in the Land; (ii) Mortgagors have the right, power and
authority to execute this Mortgage and to mortgage, and grant a security interest in the Mortgaged Property; (iii) the Mortgaged
Property is free and clear of all liens and encumbrances, except for real estate taxes not yet delinquent and except as otherwise
stated in subparagraph 1 a. herein; (iv) Mortgagors will warrant and defend title to the Mortgaged Property and the lien and priority of
this Mortgage against all claims and demands of all persons, whether now existing or hereafter arising; and (v) all buildings and
improvements now or hereafter located on the Land are, or will be, located entirely within the boundaries of the Land.
4. Payment and Performance of the Obligations. Mortgagors will pay all amounts payable under the Obligations in
accordance with the terms of the Obligations when and as due and will timely perform all other obligations of Mortgagors under the
Obligations. The provisions of the Obligations are hereby incorporated by reference into this Mortgage as if fully set forth herein.
5. Taxes. Mortgagors shall pay each installment of all taxes and special assessments of every kind, now or hereafter levied
against the Mortgaged Property before the same become delinquent, without notice or demand, and shall deliver to Mortgagee proof
of such payment within fifteen (15) days after the date in which such tax or assessment becomes delinquent.
6. Liens. Mortgagors shall not create, incur or suffer to exist any lien, encumbrance, security interest or charge on the
Mortgaged Property or any part thereof which might or could be held to be equal or prior to the lien of this Mortgage, other than the
lien of current real estate taxes and installments of special assessments with respect to which no penalty is yet payable. Mortgagors
shall pay, when due, the claims of all persons supplying labor or materials to or in connection with the Mortgaged Property.
7. Compliance with Laws. Mortgagors shall comply with all present and future statutes, laws, rules, orders, regulations and
ordinances affecting the Mortgaged Property, any part thereof or the use thereof.
8. Permitted Contests. Mortgagors shall not be required to (i) pay any tax, assessment or other charge referred to in
paragraph 5 hereof, (ii) discharge or remove any lien, encumbrance or charge referred to in paragraph 6 hereof, or (iii) comply with
any statute, law, rule, regulation or ordinance referred to in paragraph 7 hereof, so long as mortgagors shall contest, in good faith, the
existence, amount or the validity thereof, the amount of damages caused thereby or the extent of Mortgagors' liability therefor, by
appropriate proceedings which shall operate during the pendency thereof to prevent (A) the collection of, or other realization upon the
tax, assessment, charge or lien, encumbrances or charge so contested, (B) the sale, forfeiture or loss of the Mortgaged Property or
any part thereof, and (C) any interference with the use or occupancy of the Mortgaged Property or any part thereof. Mortgagors shall
give prompt written notice to Mortgagee of the commencement of any contest referred to in this paragraph 8.
9. Care of Property. Mortgagors shall take good care of the Mortgaged Property; shall keep the Buildings and Personal
Property now or later placed upon the Mortgaged Property in good and reasonable repair and shall not injure, destroy or remove
either the Buildings or Personal Property during the term of this Mortgage. Mortgagors shall not make any material alteration to the
Mortgaged Property without the prior written consent of Mortgagee.
10. Insurance.
a. Risks to be Insured. Mortgagors, at their sole cost and expense, shall maintain insurance on the Buildings and other
improvements now existing or hereafter erected on the Land and on the Personal Property included in the Mortgaged
Property against loss by fire, extended coverage perils and such other hazards as Mortgagee may from time to time
require, such insurance to have a "Replacement Cost" endorsement attached thereto, with the amount of the insurance at
least equal to the balance of the Obligations. At Mortgagors' option, such policy may have a coinsurance clause of not less
than 90% of replacement cost provided the policy contains an appropriate form of cost escalation endorsement.
Mortgagors will at their sole cost and expense, from time to time, and at any time at the request of Mortgagee, provide
Mortgagee with evidence satisfactory to Mortgagee of the replacement cost of Mortgaged Property. Mortgagors will
maintain such other insurance as Mortgagee may reasonably require.
b. Policy Provisions. All insurance policies and renewals thereof maintained by Mortgagors pursuant to this Mortgage
shall be written by an insurance carrier satisfactory to Mortgagee, contain a mortgagee clause in favor of and in form
acceptable to Mortgagee, contain an agreement of the insurer that it will not amend, modify or cancel the policy except
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after thirty (30) days prior written notice to Mortgagee, and be reasonably satisfactory to Mortgagee in all other respects.
c. Delivery of Policy or Certificate. If requested by Mortgagee, Mortgagors will deliver to Mortgagee original policies
satisfactory to Mortgagee evidencing the insurance which is required under this Mortgage, and Mortgagors shall promptly
furnish to Mortgagee all renewal notices and, upon request of Mortgagee, evidence of payment thereof. At least ten (10)
days prior to the expiration date of a required policy, Mortgagors shall deliver to Mortgagee a renewal policy in form
satisfactory to Mortgagee.
d. Assignment of Policy. If the Mortgaged Property is sold at a foreclosure sale or if Mortgagee shall acquire title to the
Mortgaged Property, Mortgagee shall have all of the right, title and interest of Mortgagors in and to any insurance policies
required hereunder, and the unearned premiums thereon, and in and to the proceeds thereof resulting from any damage to
the Mortgaged Property prior to such sale or acquisition.
e. Notice of Damage or Destruction; Adjusting Loss. If the Mortgaged Property or any part thereof shall be damaged
or destroyed by fire or other casualty, Mortgagors will, within five (5) calendar days after the occurrence of such damage or
destruction, give written notice thereof to the insurance carrier and to Mortgagee and will not adjust any damage or loss
which is estimated by Mortgagors in good faith to exceed $25,000 unless Mortgagee shall have joined in or concurred with
such adjustment; but if there has been no adjustment of any such damage or loss within four (4) months from the date of
occurrence thereof and if an Event of Default shall exist at the end of such four (4) month period or at any time thereafter,
Mortgagee may alone make proof of loss, adjust and compromise any claim under the policies, and appear in and
prosecute any action arising from such policies. In connection therewith, Mortgagors do hereby irrevocably authorize,
empower and appoint Mortgagee as attorney -in -fact for Mortgagor (which appointment is coupled with an interest) to do
any and all of the foregoing in the name and on behalf of Mortgagors.
f. Application of Insurance Proceeds. All sums paid under any insurance policy required by this Mortgage shall be paid
to Mortgagee, which shall, at its option, apply the same (after first deducting therefrom Mortgagee's expenses incurred in
collecting the same including but not limited to reasonable attorneys fees) to the reduction of the Obligations or to the
payment of the restoration, repair, replacement or rebuilding of Mortgaged Property that is damaged or destroyed in such
manner as Mortgagee shall determine and secondly to the reduction of the Obligations. Any application of insurance
proceeds to principal of the Obligations shall not extend or postpone the due date of the installments payable under the
Obligations or change the amount of such installments.
g. Reimbursement of Mortgagee's Expenses. Mortgagors shall promptly reimburse Mortgagee upon demand for all of
Mortgagee's expenses incurred in connection with the collection of the insurance proceeds, including but not limited to
reasonable attorneys fees, and all such expenses shall be additional amounts secured by this Mortgage.
11. Inspection. Mortgagee, and its agents, shall have the right at all reasonable times, to enter upon the Mortgaged Property
for the purpose of inspecting the Mortgaged Property or any part thereof. Mortgagee shall, however, have no duty to make such
inspection. Any inspection of the Mortgaged Property by Mortgagee shall be entirely for its benefit and Mortgagors shall in no way rely
or claim reliance thereon.
12. Protection of Mortgagee's Security. Subject to the rights of Mortgagors under paragraph 8 hereof, if Mortgagors fail to
perform any of the covenants and agreements contained in this Mortgage or if any action or proceeding is commenced which affects
the Mortgaged Property or the interest of the Mortgagee therein, or the title thereto, then Mortgagee, at Mortgagee's option, may
perform such covenants and agreements, defend against or investigate such action or proceeding, and take such other action as
Mortgagee deems necessary to protect Mortgagee's interest. Any amounts or expenses disbursed or incurred by Mortgagee in good
faith pursuant to this paragraph 12 with interest thereon at the rate of 10% per annum, shall become an Obligation of Mortgagors
secured by this Mortgage. Such amounts advanced or disbursed by Mortgagee hereunder shall be immediately due and payable by
Mortgagors unless Mortgagors and Mortgagee agree in writing to other terms of repayment. Mortgagee shall, at its option, be
subrogated to the lien of any mortgage or other lien discharged in whole or in part by the Obligations or by Mortgagee under the
provisions hereof, and any such subrogation rights shall be additional and cumulative security for this Mortgage. Nothing contained in
this paragraph shall require Mortgagee to incur any expense or do any act hereunder, and Mortgagee shall not be liable to
Mortgagors for any damage or claims arising out of action taken by Mortgagee pursuant to this paragraph.
13. Condemnation. Mortgagors shall give Mortgagee prompt notice of any action, actual or threatened, in condemnation or
eminent domain and hereby assign, transfer and set over to Mortgagee the entire proceeds of any award or claim for damages for all
or any part of the Mortgaged Property taken or damaged under the power of eminent domain or condemnation. Mortgagee is hereby
authorized to intervene in any such action in the names of Mortgagors, to compromise and settle any such action or claim, and to
collect and receive from the condemning authorities and give proper receipts and acquittances for such proceeds. Any expenses
incurred by Mortgagee in intervening in such action or compromising and settling such action or claim, or collecting such proceeds
shall be reimbursed to Mortgagee first out of the proceeds. The remaining proceeds or any part thereof shall be applied to reduction
of that portion of the Obligations then most remotely to be paid, whether due or not, or to the restoration or repair of the Mortgaged
Property, the choice of application to be solely at the discretion of Mortgagee.
14. Fixture Filing. From the date of its recording, this Mortgage shall be effective as a financing statement filed as a fixture
filing with respect to the Personal Property and for this purpose the name and address of the debtor is the name and address of
Mortgagors as set forth in paragraph 20 herein and the name and address of the secured party is the name and address of the
Mortgagee as set forth in paragraph 20 herein.
15. Events of Default. Each of the following occurrences shall constitute an event of default hereunder ( "Event of Default "):
a. Mortgagors shall default in the due observance or performance of or breach its agreement contained in paragraph 4
hereof or shall default in the due observance or performance of or breach any other covenant, condition or agreement on
its part to be observed or performed pursuant to the terms of this Mortgage.
b. Mortgagors shall make an assignment for the benefits of its creditors, or a petition shall be filed by or against
Mortgagors under the United States Bankruptcy Code or Mortgagors shall seek or consent to or acquiesce in the
appointment of any trustee, receiver or liquidator of a material part of its properties or of the Mortgaged Property or shall
not, within thirty (30) days after the appointment of a trustee, receiver or liquidator of any material part of its properties or of
the Mortgaged Property, have such appointment vacated.
c. A judgment, writ or warrant of attachment or execution, or similar process shall be entered and become a lien on or be
issued or levied against the Mortgaged Property or any part thereof which is not released, vacated or fully bonded within
thirty (30) days after its entry, issue or levy.
d. An event of default, however defined, shall occur under any other mortgage, assignment or other security document
constituting a lien on the Mortgaged Property or any part thereof.
16. Acceleration; Foreclosure. Upon the occurrence of any Event of Default and at any time thereafter while such Event of
Default exists, Mortgagee may, at its option, after such notice as may be required by law, exercise one or more of the following rights
and remedies (and any other rights and remedies available to it):
a. Mortgagee may declare immediately due and payable all Obligations secured by this Mortgage, and the same shall
thereupon be immediately due and payable, without further notice or demand.
b. Mortgagee shall have and may exercise with respect to the Personal Property, all the rights and remedies accorded
upon default to a secured party under the Iowa Uniform Commercial Code. If notice to Mortgagors of intended disposition
of such property is required by law in a particular instance, such notice shall be deemed commercially reasonable if given
to Mortgagors at least ten (10) days prior to the date of intended disposition.
c. Mortgagee may (and is hereby authorized and empowered to) foreclose this Mortgage in accordance with the law of the
State of Iowa, and at any time after the commencement of an action in foreclosure, or during the period of redemption, the
court having jurisdiction of the case shall at the request of Mortgagee appoint a receiver to take immediate possession of
the Mortgaged Property and of the Revenues and Income accruing there from, and to rent or cultivate the same as he may
deem best for the interest of all parties concerned, and such receiver shall be liable to account to Mortgagors only for the
net profits, after application of rents, issues and profits upon the costs and expenses of the receivership and foreclosure
and upon the Obligations.
17. Redemption. It is agreed that if this Mortgage covers less than ten (10) acres of land, and in the event of the foreclosure of
this Mortgage and sale of the property by sheriffs sale in such foreclosure proceedings, the time of one year for redemption from said
sale provided by the statues of the State of Iowa shall be reduced to six (6) months provided the Mortgagee, in such action files an
election to waive any deficiency judgment against Mortgagors which may arise out of the foreclosure proceedings; all to be consistent
with the provisions of Chapter 628 of the Iowa Code. If the redemption period is so reduced, for the first three (3) months after sale
such right of redemption shall be exclusive to the Mortgagor, and the time periods in Sections 628.5, 628.15 and 628.16 of the Iowa
Code shall be reduced to four (4) months. It is further agreed that the period of redemption after a foreclosure of this Mortgage shall
be reduced to sixty (60) days if all of the three following contingencies develop: (1) The real estate is less than ten (10) acres in size;
(2) the Court finds affirmatively that the said real estate has been abandoned by the owners and those persons personally liable
under this Mortgage at the time of such foreclosure; and (3) Mortgagee in such action files an election to waive any deficiency
judgment against Mortgagors or their successors in interest in such action. If the redemption period is so reduced, Mortgagors or
their successors in interest or the owner shall have the exclusive right to redeem for the first thirty (30) days after such sale, and the
time provided for redemption by creditors as provided in Sections 628.5, 628.15 and 628.16 of the Iowa Code shall be reduced to
forty (40) days. Entry of appearance by pleading or docket entry by or on behalf of Mortgagors shall be a presumption that the
property is not abandoned. Any such redemption period shall be consistent with all of the provisions of Chapter 628 of the Iowa
Code. This paragraph shall not be construed to limit or otherwise affect any other redemption provisions contained in Chapter 628 of
the Iowa Code.
18. Attorneys' Fees. Mortgagors shall pay on demand all costs and expenses incurred by Mortgagee in enforcing or protecting
its rights and remedies hereunder, including, but not limited to, reasonable attorneys' fees and legal expenses.
19. Forbearance not a Waiver, Rights and Remedies Cumulative. No delay by Mortgagee in exercising any right or remedy
provided herein or otherwise afforded by law or equity shall be deemed a waiver of or preclude the exercise of such right or remedy,
and no waiver by Mortgagee of any particular provisions of this Mortgage shall be deemed effective unless in writing signed by
Mortgagee. All such rights and remedies provided for herein or which Mortgagee or the holder of the Obligations may have
otherwise, at law or in equity, shall be distinct, separate and cumulative and may be exercised concurrently, independently or
successively in any order whatsoever, and as often as the occasion therefor arises.
20. Notices. All notices required to be given hereunder shall be in writing and deemed given when personally delivered or
deposited in the United States mail, postage prepaid, sent certified or registered, addressed as follows:
a. If to Mortgagors, to: Butt's Florist, Inc., Attn: Sue Butt, 2300 University Ave., Dubuque, Iowa 52001
b. If to Mortgagee, to: Economic Development Department; City Hall; 50 West 13th St., Dubuque, Iowa 52001
or to such other address or person as hereafter designated in writing by the applicable party in the manner provided in this paragraph
for the giving of notices.
21. Severability. In the event any portion of this Mortgage shall, for any reason, be held to be invalid, illegal or unenforceable in
whole or in part, the remaining provisions shall not be affected thereby and shall continue to be valid and enforceable and if, for any
reason, a court finds that any provision of this Mortgage is invalid, illegal, or unenforceable as written, but that by limiting such
provision it would become valid, legal and enforceable then such provision shall be deemed to be written, construed and enforced as
so limited.
22. Further Assurances. At any time and from time to time until payment in full of the Obligations, Mortgagors will, at the request of
Mortgagee, promptly execute and deliver to Mortgagee such additional instruments as may be reasonably required to further
evidence the lien of this Mortgage and to further protect the security interest of Mortgagee with respect to the Mortgaged Property,
including, but not limited to, additional security agreements, financing statements and continuation statements. Any expenses
incurred by Mortgagee in connection with the recordation of any such instruments shall become additional Obligations of Mortgagors
secured by this Mortgage. Such amounts shall be immediately due and payable by Mortgagors to Mortgagee.
23. Successors and Assigns bound; Number; Gender; Agents; Captions. The rights, covenants and agreements contained
herein shall be binding upon and inure to the benefit of the respective legal representatives, successors and assigns of the parties.
Words and phrases contained herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and
as masculine, feminine or neuter gender according to the contexts. The captions and headings of the paragraphs of this Mortgage
are for convenience only and are not to be used to interpret or define the provisions hereof.
24. Governing Law. This Mortgage shall be governed by and construed in accordance with the laws of the State of Iowa.
25. Release of Rights of Dower, Homestead and Distributive Share. Each of the undersigned hereby relinquishes all rights of
dower, homestead and distributive share in and to the Mortgaged Property and waives all rights of exemption as to any of the
Mortgaged Property.
26. Acknowledgment of Receipt of Copies of Debt Instrument. Mortgagors hereby acknowledge the receipt of a copy of this
Mortgage together with a copy of each promissory note secured hereby.
27. Additional Provisions.
Dated: July 1, 2011
Butt's Florist, Inc., Mortgagor
ex-) a �-tt
I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND
EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS
PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE.
Dated: - 7 I \IC \‘‘
STATE OF IOWA
COUNTY OF DUBUQUE
On this 311 day of( , 2011, before me, the undersigned, a Notary Public, per
known to be the identical person named in and who executed the foregoing instrument, an
same as their voluntary act and deed.
ss:
BARRY A. LINDAHL
Commission Num.er 07515
My Comm. Exp. 1 'L
"rep s
onally appeared gas Butt, to me
;7cknowledged that they executed the
, Notary Public
THE CITY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
August 28, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Downtown Rehabilitation Loan and Facade Grant for the Butt's Florist
Building located at 233-241 Main Street
Economic Development Director Dave Heiar is recommending approval of a letter of
commitment for a Downtown Rehabilitation Loan of $300,000 for Butt's Florist, Inc. to
support their rehabilitation of property located at 233-241 Main Street. Butt's Florist,
Inc. is a company owned by Steve and Sue Butt, and they are planning a complete
renovation of all 16,000 square feet on all floors.
According to the developers on the application; "We are hoping to provide more retail to
Main Street by opening up both 233 and 241 storefronts for walk-in traffic. The upper
two floors of the building have been unoccupied for years, the area, space and view will
provide excellent downtown living.
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
David J. Heiar, Economic Development Director
THE CTIY C?F
Dv~~ .~_-~ ~~E
Masterpiece on tlae Mississi~~i
MEMORANDUM
August 24, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director JJ
SUBJECT: Downtown Rehabilitation Loan and Facade Gran for the Butt's
Florist Building located at 233-241 Main Street
INTRODUCTION
This memorandum presents for City Council consideration a Resolution approving a
letter of commitment for a Downtown Rehabilitation Loan of $300,000 for Butt's Florist,
Inc. to support their rehabilitation of property located at 233-241 Main Street.
BACKGROUND
The building was constructed in 1900. The building is approximately 16,000 square
feet. Butt's Florist, Inc., a company owned by Steve and Sue Butt, is planning a
complete renovation of all 16,000 square feet on all floors.
The Downtown Rehabilitation Loan/Grant Program encourages private investment and
rehabilitation efforts in the City's Greater Downtown Urban Renewal District's Old Main,
Town Clock Plaza and Upper Main sub areas. The program, capitalized with funds
available through the City's tax increment financing district, provides for a maximum of
$300,000 in attractive low-interest loan monies. The program includes a forgivable loan
element whereby qualifying applicants may have up to the full amount of the loan
forgiven as an incentive for the creation of new employment and housing opportunities
in the district.
DISCUSSION
The renovations that Butt's Florist, Inc. is planning will include opening the entire first
floor for more retail space with an office in the back. The second floor will be 2 large
apartments with green space elements. The third floor will have 1 apartment which the
owners hope to occupy.
According to the developers on the application;
"We are hoping to provide more retail to Main Street by opening up
both 233 and 241 storefronts for walk-in traffic. The upper 2 floors of
the building have been unoccupied for years, the area, space and view
will provide excellent downtown living."
At this time, insufficient loan funds are available in the Downtown Rehabilitation Loan
Program to fund the loan. The owners have agreed to wait until the funds are available
in FY2014. As of July 1, 2013, the loan funds should be available to the project and the
company would like to proceed with the loan. Recapitalizations for this program have
been included into the City's Capital Improvements Program. Should the
recapitalization schedule be altered, the timing for the availability of loan funds may
change.
Additional information on the terms and conditions of the proposed Downtown
Rehabilitation Loan/Grant is attached in the commitment letter. If the loan is approved
by the City Council, this commitment letter would be executed by the Mayor and by the
owners.
RECOMMENDATION
Staff has reviewed the application and found it to be in keeping with the requirements of
the Downtown Rehabilitation Loan/Grant Program. The project will begin when other
funding sources have been secured.
recommend that the City Council adopt the attached Resolution approving a letter of
commitment for Butt's Florist, Inc. at 233-241 Main Street for the $300,000 Downtown
Rehabilitation loan.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
F:\USERSWdejong\Downtown Rehab Loan\Butt's Florist 233-241 Main\20070824 DRLP Memo.doc
RESOLUTION NO. 462-07
A RESOLUTION AUTHORIZING A LETTER OF COMMITMENT AND
ADDITIONAL ACTIONS CONCERNING A DOWNTOWN REHABILITATION
LOAN TO THE BUTT'S FLORIST BUILDING.
Whereas, the City of Dubuque, Iowa, has created a Downtown Rehabilitation
Loan/Grant Program for the purpose of stimulating reinvestment in the Greater
Downtown Urban Renewal District; and
Whereas, the City of Dubuque, Iowa is encouraging the use of this loan/grant
program to finance code compliance activities and to spur job creation activities; and
Whereas, the loan application from Butt's Florist, Inc. meets the requiremen#s of
this program; and
Whereas, the property located at 233-241 Main Street is within the boundaries of
the Greater Downtown Urban Renewal Distrct, and
Whereas, a Commitment Letter, hereto attached and by this reference made a
part hereof, sets forth the terms and conditions of Butt's Florist, Inc. participation in the
Downtown Rehabilitation Loan Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the application of Butt's Florist, Inc. for participation in the
Downtown Rehabilitation Loan and Grant Program is hereby accepted and approved.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the
City Council of the City of Dubuque, Iowa, the attached Commitment Letter and to
forward said letter to Butt's Florist, Inc. for review and approval.
Section 3. That the City Manager be and he is hereby directed #o prepare,
upon execution and receipt of the attached Commitment Letter by the applicant, the
necessary loan documents in accordance with the terms and conditions set forth in said
Commitment Letter.
Section 4. That the City Manager is hereby authorized to execute, on behalf of
the City Council of the City of Dubuque, Iowa, all necessary loan documents and is
further authorized to disburse loan funds from the Downtown Rehabilitation Loan/Grant
Program, in accordance with the terms and conditions of the executed agreement.
Passed, approved and adopted this 4th day of September, 2007.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERSWdejong\Downtown Rehab Loan\Butt's Florist 233-241 Main\20070824 DRLP Resolution.doc
September 5, 2007
Butt's Florist, Inc.
Attn: Sue Butt
2300 University Ave.
Dubuque, Iowa 52001
RE: Letter of Commitment/Downtown Rehabilitation Loan Program
Butt Florist Building 233-241 Main Street
Dear Ms Butt:
I am pleased to inform you that your application for financial assistance for the
renovation of the property located at 233-241 Main Street has been accepted and
approved by the Dubuque City Council.
The following offer is made:
Source of Funds: Downtown Rehabilitation Loan Program
Amount of Commitment: $300,000
Interest Rate: Three percent (3%) per annum
Term of Loan: Twenty (20) years
Payment Schedule: Monthly interest only payments shall be required for the first sixty (60)
months of the loan. Monthly principal and interest payments, amortized
over an additional fifteen (15) year period, shall begin the sixty-first month
of the loan.
You may prepay this loan in whole or in part at any time without penalty.
Form of Security: The loan shall be secured by a mortgage on the property.
Purpose of the Loan: Renovation of the exterior facade and interior for use as
commercial/residential space.
Conditions of this Commitment:
(a) An "after rehab" appraisal must be submitted to the Economic Development
Department prior to the scheduled loan closing. The cost of said appraisal shall
be incurred by the property owner.
(b) A title opinion must be completed at the expense of the property owner. A copy
of said document must be provided at the loan closing.
(c) A loan agreement must be signed no later than June 30, 2014.
(d) The project is to be completed in accordance with the regulations set forth for the
City of Dubuque's Downtown Rehabilitation Loan Program.
Additional Commitments:
(a) A rebate equal to two thousand dollars ($2,000) may be forgiven for each new
full-time job or full-time equivalent created within two years of the execution of
the loan documents and maintained by the applicant or his/her tenant for a
period of not less than three years. The amount of the loan to be forgiven shall
be determined by the City on the fifth anniversary of the loan based on
documented evidence of job creation. Any jobs relocated from another location
within the downtown area will not count as a new job.
(b) Two thousand dollars ($2,000) may be forgiven for each new housing unit
created. Anew housing unit shall be defined as one of the following:
The creation of a housing unit where one did not previously exist; or
An existing housing unit which has been unlicensed and unoccupied for a
period of not less than five years.
To qualify, the applicant must document the following:
The unit is licensed by the City;
The unit was created within two years of the execution of the loan
documents; and
The unit has been occupied for a period of not less than three (3) years.
This commitment is valid for twenty-one (21) days from the date of this letter. If you
wish to accept the offer, you must return the acknowledgment. Failure to return written
acknowledgment will be cause for the commitment to lapse. This commitment offer
shall lapse if construction on the proposed project does not start within ninety (90) days
of the loan closing.
If the terms offered do not meet your approval, or if you have any questions regarding
the conditions of this commitment, please contact David Heiar, Economic Development
Department, at 589-4393.
Sincerely,
Roy D. Buol
Mayor
ACKNOWLEDGMENT
We have reviewed the above offer and accept the $300,000 Downtown Rehabilitation
Loan, and all of the terms of this commitment letter.
Sue Butt
Date
F:\USERSWdejong\Downtown Rehab Loan\Butt's Florist 233-241 Main\20070824 DRLP approval letter.doc