Lower Main Development, LLC Subordination Agreement_Platinum Building Copyright 2014
City of Dubuque Consent Items # 8.
ITEM TITLE: Lower Main Development, LLC Subordination Agreement
SUMMARY: City Manager recommending approval of a Subordination
Agreement with Lower Main Development, LLC which
provides the City's loan is subordinate to the mortgage of
Dupaco Community Credit Union for the Platinum Building.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Lower Main Development LLC Subordination City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Subordination Agreement Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Lower Main Development, L.L.C.
DATE: March 30, 2016
In 2006 the City of Dubuque loaned $300,000 to Lower Main Development, L.L.C.
pursuant to a Loan Agreement for improvements to the Platinum Building on Lower
Main Street. The Platinum Building has been refinanced with Dupaco Community
Credit Union.
City Attorney Barry Lindahl recommends City Council approval of a Subordination
Agreement which provides the City's loan, with a balance of $150,129.60 as of March 1,
2016, is subordinate to the mortgage of Dupaco Community Credit Union.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
HE CITY OF
DUB
E MEMORANDUM
Masterpiece on the Mississippi
BARRY LINDAHL
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
DATE: March 18, 2016
RE: Lower Main Development, L.L.C.
In 2006, the City of Dubuque loaned $300,000.00 to Lower Main Development, L.L.C.
pursuant to a Loan Agreement for improvements to the Platinum Building on Lower
Main Street. Initially, the Platinum Building was financed by Dubuque Bank & Trust.
Later, East Dubuque Savings Bank EDSB refinanced the project. At that time, the City
subordinated its mortgage to East Dubuque Saving Bank's mortgage. The Platinum
Building has been refinanced again, this time with Dupaco Community Credit Union.
Lower Main Development, L.L.C. has requested that the City subordinate its mortgage
to the mortgage of Dupaco Community Credit Union.
The balance of the City loan as of March 1, 2016 is $150,129.60.
I have reviewed the attached Subordination Agreement and find that it is in acceptable
form. I recommend that the Subordination Agreement be submitted to the City Council
for consideration and approval.
BAL:tIs
Attachment
cc: Brian Kane, Esq.
F:\USERS\tsteckle\Department Correspondence\Economic Development\Lower Main Development LLC Subordination
Agreement\M V M_Co nse nt&S ubordi nati onAgreement_031816.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)583-4113/FAX (563)583-1040/EMAIL balesq@cityofdubuque.org
Masterpiece on the Mississippi
BARRY LINDAHL
CITY ATTORNEY
To:
MEMORANDUM
Kevin Firnstahl
City Clerk
1
DATE: March 29, 2016
RE: Lower Main Development, LLC Subordination Agreement
Kevin:
Attached for the April 4, 2016 City Council agenda is the original Lower Main
Development, LLC Subordination Agreement which has been executed by Wayne
Briggs of Lower Main Development, LLC. Once approved by the City Council, I would
appreciate it if you would forward the agreement to me for processing.
Thank you.
BAL:tls
Attachment
F:\USERS\tsteckle\Department Correspondence\Economic Development\Lower Main Development LLC Subordination Agreement\Firnstahl_OriginalSubordinationAgreement_032916.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org
Brian J. Kane
Les V. Reddick*
Brad J. Heying
Todd L. Stevenson*
Kevin T. Deeny**
Bradley B. Kane
Joseph P. Kane
Nicholas J. Kane
All admitted in Iowa
*Also admitted in Illinois
**Also admitted in Wisconsin
KANE, NORBY & REDDICK, P.C.
ATTORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3091
April 14, 2016
Mr. Bradley T. Kemp
Vice President, Business Lending
Dupaco Community Credit Union
3299 Hillcrest Road
Dubuque, IA 52001
Re: Lower Main Development, L.L.C.
Dear Brad:
Retired:
Gary K. Norby
Phone: (563) 582-7980
Facsimile: (563) 582-5312
E-mail:bkane@kanenorbylaw.com
Enclosed please find the original Subordination Agreement dated April 4, 2016 and filed
April 8, 2016 as Instrument No. 2016-3807 in the records of the Dubuque County Recorder's
office. We have retained a copy for our records.
Please do not hesitate to contact us directly should you have any questions. Thank you.
Best regards,
KANE, NORBY & REDDI K, P.C.
By
BJK:ald
Enclosure
cc: Barry A. Lindahl, Esq.
Brian J.
uiiniuiiimuID i�iiiimmWi 11111
Do
Kind: SUBORDINATION AGREEMENT 7,.
Recorded: 04/08/2016 at 03:26:07 M
Fee Amt: $22.00 Page 1 of 4
Dubuque County Iowa
John Murphy Recorder
F11e2016-0000380 /
Prepared by and retum to: Brian J. Kane, Kane, Norby & Reddick, P.C. 2100 Asbury Road, Suite 2, Dubuque, IA 52001 563/582-7980
SUBORDINATION AGREEMENT
This Subordination Agreement is entered into the day of ,/ ' , 2016 by
and between LOWER MAIN DEVELOPMENT, L.L.C. ("LMD") and ITY OF DUBUQUE,
IOWA ("CITY") in favor of Dupaco Community Credit Union ("Dupaco").
RECITALS
A. This Agreement pertains to real estate in Dubuque, IA legally described on Exhibit
A attached hereto (the "Real Estate").
B. CITY has advanced or loaned R00,000.00 to LMD pursuant to a real estate
mortgage dated August 25, 2006 and filed Aum 13, 2006 as Instrument No. 2006-15995 in the
records of the Dubuque County Recorder (the "CITY Mortgage").
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C. LMD has obtained a loan from Dupaco in the amount of $4,800,000.00 (the
"Loan") and has granted a mortgage to Dupaco securing credit in the amount of $6,401,430.00,
dated March 7, 2016 and filed March 8, 2016 as Instrument No. 2016-00002455 in the records of
the Dubuque County Recorder (the "Dupaco Mortgage").
D. CITY has agreed to subordinate the City Mortgage to the Dupaco Mortgage to the
extent of the Loan.
NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt of sufficiency of which is hereby acknowledged, the parties
agree as follows:
1. Loan Advance. The borrowing by LMD of the Loan from Dupaco and the granting
of the Dupaco Mortgage in said amount upon the Real Estate to Dupaco is hereby agreed and
consented to by CITY, which CITY acknowledges is a refinancing of LMD's prior mortgage with
East Dubuque Savings Bank.
2. Subordination. CITY hereby subordinates the City Mortgage in favor of the
Dupaco Mortgage (and the successors and assigns to the Dupaco Mortgage) to the extent of
$6,401,430.00. It is expressly acknowledged by CITY that the Dupaco Mortgage shall be prior
and superior to the City Mortgage to the extent of $6,401,430.00. Priority and superiority of the
Dupaco Mortgage shall not be affected by any renewal, modification, extension or refinancing by
and between Dupaco and LMD, however, subordination shall always be limited to $6,401,430.00.
3. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, legal representatives, successors and assigns.
Lower Main Development, L.L.C.
By:
Wayne A.
Q
ggs, Its Preside
Dupaco Community Credit Union
By:J�- g""4 -P.
8ro.Zl4y Kc -s , Its V ce, pris? - 4
City of Dubuq , Iowa
By:
Roy D. Buol, a
By:
Kevin Fir
STATE OF IOWA
) ss:
COUNTY OF DUBUQUE )
tahl, City 1
This instrument was acknowledged before me on this 09 day of /144tel, , 2016
by Wayne A. Briggs, as President of Lower Main Development, L.L.C.
BRIAN J. KANE
COMMISSION NO. 125603
My Comm. fxplres JAN 12, 2019
Notary Public
STATE OF IOWA )
COUNTY OF DUBUQUE ) ss:
On this -7 day of Ne—t_ _ , 2016, before me, a Notary Public in and for
the State of Iowa, personally appeafed Roy D. Buol and Kevin Firnstahl, to meersonall
p Y
known, who being by me duly sworn did say that they are the Mayor and City Clerk,
respectively, of the City of Dubuque, Iowa, executing the within and foregoing instrument, that
no seal has been procured by the City; that said instrument was signed on behalf of the City by
authority of the City Council; and that Ray Buol and Kevin Firnstahl, as Mayor and City Clerk,
acknowledged the execution of said instrument to be the voluntary act and deed of the City, by it
and by them voluntarily executed.
101i ski -L. athAS®N
1 Commission Number 719986
My Commission Expires
' Icl�•1�•I�
STATE OF IOWA
) '
) ss:
COUNTY OF DUBUQUE )
Notary Public in and for
State of Iowa
This instrument was acknowledged before me on this day of
, 2016
by1' - `4\ , as \j �,. r -� of Dupaco Communit Credit Union.
ANDREW J KATRICHIS
Commission Number769250
MI{.Comm S ian Expires
Public
Exhibit "A"
Legal Description of Real Estate
Lot 78a and the North 44 feet of Lot 79 in the City of Dubuque, Iowa, according to the United
States Commissioners' Map thereof.