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Council approves subordination agreement to allow refinancing of 1199 Central Avenue redevelopment
Summary
The council approved a subordination agreement that preserves repayment priorities among lenders for the developer refinancing the redevelopment at 1199 Central Avenue; an independent appraisal values the building at approximately $3.1 million.
DUBUQUE, Iowa — The City Council on April 7 approved a subordination agreement with New Silver Lending LLC that preserves the relative repayment positions among lenders for refinancing the completed redevelopment at 1199 Central Avenue.
Economic Development Director Jill Connors told the council the construction project is complete and the existing construction loan needs refinancing while the building is listed for sale. The agreement maintains positions so New Silver Lending LLC would be first in the repayment line, Dubuque Initiatives (DI) would remain second, and the City of Dubuque would be third; the memo also listed a fourth position (Urshan’s) and a total amount of $1,846,000 in the subordinate positions.
An independent appraisal cited in the staff memo valued the building at approximately $3,100,000. Council approved the subordination agreement on a unanimous roll‑call vote after staff clarified that DI refers to Dubuque Initiatives and that the agreement here is with New Silver Lending LLC while separate documentation governs DI’s position.
Councilmember Sprank moved and Councilmember Wethal seconded the motion; it passed 7–0.
