North Liberty City Council approves subordination agreement to unlock construction financing for UCD project

The North Liberty City Council on Dec. 19 approved Resolution 2025-145, authorizing a subordination agreement and an amendment to a forgivable loan agreement with UCD Holdings LLC to allow the developer to subordinate a mortgage on east-side properties and obtain a second construction loan.

Ryan, a city staff member who presented the item, said the change would allow UCD to "continue the momentum" on the project, access additional capital and secure its second construction loan. He said the developer would reimburse the city "just over $2.1 million" for purchases of the east properties, and that the developer had previously reimbursed the city about $1.8 million for purchases on the central or ranchway-frontage properties. "This agreement does not change the city's commitment of the $20 million," Ryan said.

Staff told the council the amendment also updates the project budget to reflect higher acquisition and construction costs; Ryan said site conditions, including unsuitable soil, have increased costs. A council member asked whether the subordination was an expected step and whether the timing could accelerate construction; Ryan replied the measure would allow work to begin before the council's next regular meeting in mid-January.

There was no public comment on the item. The council considered the resolution, which was moved by Way and seconded (record shows the second as "Liebold" in the minutes). A roll-call vote was taken and the motion carried. The staff presentation and the resolution record indicate the city's prior and proposed reimbursements and confirm the city's $20 million commitment remains in place.

The council adjourned after approving the resolution.