HomeMy WebLinkAboutResolution - 2003-30 - Approving Mortgage Subordination Agreement with Bremer Bank - 02/04/2003 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO.2003-30
RESOLUTION APPROVING A MORTGAGE SUBORDINATION AGREEMENT
BETWEEN THE CITY AND BREMER BANK
WHEREAS,Bremer Bank has extended a$550,000 real estate loan(the""Bremer Bank Loan'...)
to SC Minnesota Properties, LLC, a Minnesota limited liability company(the""Borrower""); and
WHEREAS,the Bremer Bank Loan is secured by, among other things,that certain Mortgage,
Security Agreement,Fixture Financing Statement and Assignment of Leases and Rents dated as
of December 12,2002 (the""Bremer Bank Mortgage""), executed by the Borrower in favor of
Bremer Bank, encumbering, among other things,the real property legally described on Exhibit A
of the Mortgage Subordination Agreement (the""Property"'); and
WHEREAS, the Borrower has previously granted a mortgage lien in and to the Property in favor
of the City pursuant to that certain Mortgage dated as of February 12, 2002 (the""City
Mortgage""), executed by the Borrower in favor of the City; and
WHEREAS, the City Mortgage was filed of record in the office of the Hennepin County
Recorder on February 14, 2002, as Document No. 7652273, and the Registrar of Titles on
February 14, 2002, as Document No. 3502317; and
WHEREAS, as a condition precedent to the making by Bremer Bank of the Bremer Bank Loan,
Bremer Bank has required that the lien of the City Mortgage be fully subordinated to the lien of
the Bremer Bank Mortgage.
WHEREAS, the attached Mortgage Subordination Agreement has been submitted by the
Developer; and
WHEREAS,pursuant to the terms of the Amended Project Management Agreement dated
December 18, 2002 the City agreed to subordinate the City Mortgage to all subsequent mortgage
financing for the Project.
NOW THEREFORE BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL
THAT the Mortgage Subordination Agreement attached hereto is hereby approved. The Mayor
and City Manager are hereby authorized to execute the Mortgage Subordination Agreement.
ADOPTED by the Eden Prairie City Council on February 4, 2003.
N c a uke ayor
ATTEST:
a,f) IK2 (Seal)
Kathleen Porta, City Clerk
MORTGAGE SUBORDINATION AGREEMENT
THIS MORTGAGE SUBORDINATION AGREEMENT (this "Agreement") is made and
entered into as of the 12th day of December, 2002, by the City of Eden Prairie, Minnesota, a
(the "City"), in favor of Bremer Bank, National Association,
a national banking association("Bremer Bank").
WITNESSETH:
WHEREAS, Bremer Bank has extended a$550,000 real estate loan(the"Bremer Bank Loan")to
SC Minnesota Properties,LLC, a Minnesota limited liability company(the"Borrower"); and
WHEREAS, the Bremer Bank Loan is secured by, among other things, that certain Mortgage,
Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents dated as
of December 12, 2002 (the "Bremer Bank Mortgage"), executed by the Borrower in favor of
Bremer Bank, encumbering, among other things, the real property legally described on Exhibit A
attached hereto and hereby made a part hereof(the"Property"); and
WHEREAS, the Bremer Bank Mortgage has been filed of record in the office of the Hennepin
County Recorder on as Document No. and the
Registrar of Titles on , as Document No. ; and
WHEREAS, the Borrower has previously granted a mortgage lien in and to the Property in favor
of the City pursuant to that certain Mortgage dated as of February 12, 2002 (the "City
Mortgage"), executed by the Borrower in favor of the City; and
WHEREAS, the City Mortgage was filed of record in the office of the Hennepin County
Recorder on February 14, 2002, as Document No. 7652273, and the Registrar of Titles on
February 14,2002, as Document No. 3502317; and
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WHEREAS, as a condition precedent to the making by Bremer Bank of the Bremer Bank Loan,
Bremer Bank has required that the lien of the City Mortgage be fully subordinated to the lien of
the Bremer Bank Mortgage.
NOW THEREFORE, in consideration of the foregoing recitals and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the City hereby
agrees as follows:
1.
Any and all of the City's right, title and interest in and to the Property under and pursuant
to the City Mortgage shall be and hereby are subject to and subordinate in all respects to
the lien of the Bremer Bank Mortgage, notwithstanding the actual filing order of the City
Mortgage, the Bremer Bank Mortgage or any other documents perfecting such liens.
2.
This Agreement is binding not only upon the City and Bremer Bank, but also upon the
heirs, representatives, successors and assigns of each of them, and is enforceable not only
by the City and Bremer Bank, but also by their respective heirs, representatives,
successors and assigns.
3.
The City acknowledges and agrees that Bremer Bank is relying upon the subordination
contained herein in extending the Bremer Bank Loan to the Borrower.
4.
This Agreement shall be governed by and construed in accordance with the laws of the
State of Minnesota.
5.
This Agreement may be executed in any number of counterparts, each of which shall be
an original with the same effect as if the signature thereto and hereto were upon the same
document.
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IN WITNESS WHEREOF, the City has executed this Agreement as of the day and year first
above written.
CITY OF EDEN PRAIRIE,MINNESOTA
By:
Its: Mayor
By:
Its: City Manager
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
This instrument was acknowledged before me this 4th day of February, 2003, by Nancy Tyra-
Lukens, and Scott H. Neal, the Mayor and City Manager, respectively, of the City of Eden
Prairie, Minnesota, a municipality, for and on behalf of the City.
Notary Public
THIS INSTRUMENT DRAFTED BY:
Winthrop &Weinstine, P.A. (JWJA)
3000 Dain Rauscher Plaza
60 South Sixth Street
Minneapolis,Minnesota 55102
8608-28
idmsmp1#533959v1
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EDIT A
(Legal Description)
Unit No. 4, CIC No. 1008, Summit Place Senior Campus,together with easements
as contained in CIC Declaration,Document Nos. 7616071 (A) and 3478131 (T),
as amended by First Amendment to Declaration,Documents
Nos. (A) and (T), and the Declaration of Easements,
Documents Nos. 7652267 (A) and 3478133 (T).
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