Johnson County - Oct 2, 2026

THE JOHNSON COUNTY BOARD OF SUPERVISORS
FORMAL MEETING MINUTES
OCTOBER 02, 2026
Chairperson Green called the Johnson County Board of Supervisors to order in the Johnson County Health and Human Services Building Boardroom at 3:30 p.m. Members present: V Fixmer-Oraiz, Jon Green, Lisa Green-Douglass, Mandi Remington, and Rod Sullivan.
Green sought and received unanimous consent for approval of the agenda as presented.
Public Comment - No one from the public spoke.
Subordination request from CommUnity for Mortgage of Properties- Green recalled that Board members yesterday received the subordination request from CommUnity Crisis Services (CommUnity) for the mortgage of properties addressed as 5048 and 5050 U.S. Highway 6 SE, Iowa City, Johnson County. Green explained that Hills Bank is requiring subordination of the County’s lien to secure financing for CommUnity’s new programming and operating needs. The County currently holds a lien on the property related to prior funding, with an outstanding balance of approximately $540,000. The balance is scheduled to be forgiven in 2033, provided CommUnity continues to meet its obligations. He said the request would allow Hills Bank to take a senior position on the property and other real estate holdings as security for the operating loan. Remington said she would like to move forward with the request since the organization services many County residents and is not requesting any additional funding. CommUnity Crisis Services staff Chief Executive Director Sarah Nelson stated that the request is part of the organization’s sustainability planning and is intended to address temporary cash flow gaps resulting from organizational growth and the timing of federal and state funding. Nelson stated that Hills Bank has approved the loan, contingent upon the County taking a second position, with subordination remaining the final condition. She noted that the City of Iowa City has completed its subordination process and stated that the County would retain its existing contractual protections. Nelson requested that the Board approve the subordination request. Fixmer-Oraiz referenced the email correspondence and noted that this arrangement differs from the County’s typical agreements with other organizations. Assistant County Attorney Ryan Maas said in 2023 the organization came to the Board requesting a $1 million commitment to improve real property that the County would not own. He said the bargain struck under those circumstances was no payment during the 10-year performance period, secured by a mortgage. Maas said that is a reasonable position to take for a body charged with safeguarding taxpayer funds. Maas noted that if the organization were to default on its obligation to Hills Bank, the County may not be able to retain its financial interest. Maas discussed various scenarios and considerations to ensure the County’s obligations and financial interests remain protected. Maas raised concern that the County would essentially be placed in an unsecured position regarding the debt. Nelson shared materials with the Board about County nonprofit capital funding and mortgages outlining several community organizations and funding identified. Green said the financing term sheet, $2.25 million is a regular term loan and $1.2 million is a revolving line of credits. Nelson said that is correct and said the $1.2 million line of credit is from growth a few years ago. Nelson stated that requests for government subordination on nonprofit financing are fairly common and noted that the organization is currently in a strong sustainability position. Nelson discussed the organization’s financial strength. Sullivan questioned why the bank was requesting subordination. Nelson stated that such conditions are common in this type of financing. Chief Clinical Officer Drew Martel said it doesn’t mean the money isn’t there. Chief Financial Officer Jennifer Steines, who has experience in commercial finance, stated that the bank’s approach is consistent with standard commercial lending practices. Shet noted that the properties have an 80% loan-to-value ratio, leaving approximately 20% in equity. Green-Douglass expressed concern about the expedited nature of the request and the County’s position, noting the limited time available to fully consider the potential risks. Nelson stated that she contacted the County and the City of Iowa City as soon as the need became apparent, noting the expedited nature of the federal funding environment. Fixmer-Oraiz acknowledged the expedited timeline and stated that the associated risk is minimal. Martel discussed a scenario in which federal funding was reduced, resulting in staff reductions. Following direction from Congress to reinstate the funding, the organization was required to rehire staff before the funding was expected to be received in November. Green acknowledged the concerns discussed regarding the current federal circumstances and emphasized the Board’s responsibility to conduct due diligence and fact-finding. Green encouraged keeping the remaining discussion focused on the matter at hand and avoiding an adversarial tone. Green asked Board members if they’ve had enough time to review the materials and ask questions, before proceeding as a Board. Sullivan stated that comparing grant funding to a loan is not appropriate because the arrangements are different and emphasized that no organization is being treated differently.
Motion by Remington, second by Fixmer-Oraiz, to approve the subordination request from CommUnity Crisis Services, Iowa City, for the mortgage of properties addressed as 5048 and 5050 U.S. Highway 6 SE, Iowa City, Johnson County. Approved 4:1 with Green-Douglass voting nay.
Adjourned at 3:58 p.m.
/s/Jon Green, Chair, Johnson County Board of Supervisors
Attest: /s/Julie Persons, Johnson County Auditor
On the 8th day of October, 2026
Recorded by Auditor’s Office: Marly Melsh, Executive Clerk to the Board
These minutes were sent for formal approval and publication on October 8, 2026.

Published in The News, Thursday, October 15, 2026 L-165