HomeMy WebLinkAboutResolution - 2009-34 - Summit Place Mortgage Subordination Agreement - 05/19/2009 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO. 2009-34
RESOLUTION APPROVING A MORTGAGE SUBORDINATION AGREEMENT
BETWEEN THE CITY AND OAK GROVE COMMERCIAL MORTGAGE, LLC
WHEREAS, EP Assisted Living, LLC, a Minnesota Limited Liability Company (EP Assisted)
has Obtained a mortgage loan from Oak Grove Commercial Mortgage, LLC (Oak Grove) in the
principal amount of Thirteen Million Eight Hundred Eighty-Eight and No1100 Dollars
($13,888,000.00) ("Assisted Loan") for a ninety-five (95) unit assisted living facility known as
the Summit Place Assisted Living located in Eden Prairie,Minnesota; and
WHEREAS, EP SENIOR HOUSING, LLC, a Minnesota limited liability company ("EP
Senior") has obtained a mortgage loan from OAK GROVE in the principal amount of Twenty-
Three Million and No1100 Dollars ($23,000,000.00)("SH Loan"} for a on hundred seventy(170)
unit senior housing facility known as the Summit Place Senior Housing located in Eden Prairie,
Minnesota; and
WHEREAS, as of February 12, 2002, EP Assisted and EP Senior obtained a mortgage loan
from the City in the original principal amount of Two Million Two Hundred Thousand and
No1100 Dollars ($2,200,000.00) (City Loan) secured by a Mortgage dated February 12, 2002, by
and between EP Senior, as Mortgagor, EP Assisted, as Mortgagor, SC Minnesota Properties,
LLC, a Minnesota limited liability company, as Mortgagor, and the City of Eden Prairie as
Mortgagee, recorded in the office of the County Recorder in and for the County of Hennepin,
State of Minnesota as Document No. 7652273 and in the office of the Registrar of Titles in and
for the County of Hennepin, State of Minnesota as Document No. 3502317 (City Mortgage) ;
and
WHEREAS, as a condition precedent to the making by OAK GROVE of the Assisted Loan and
the SH Loan, OAK GROVE has required that the lien of the City Mortgage be fully subordinated
to the lien of the OAK GROVE Mortgage pursuant to that certain Summit Place Subordination
Agreement dated as of May 1, 2009 between EP Assisted, EP Senior, OAK GROVE and City;
and
WHEREAS, pursuant to the terms of the Amended Project Management Agreement dated
December 18, 2001, as amended by the Second Amended Project Management Agreement dated
June 1, 2004, 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 Summit Place Subordination Agreement and Consent and Acknowledgement to
Amended and Restated Assignment of Tax Increment Financing (the "Documents") attached
hereto are hereby approved. The Mayor and City Manager are hereby authorized to execute the
Documents in the form attached hereto with such changes as are recommended by the City
Attorney and approved by the Mayor and City Manager, such approval being evidenced by their
execution of the Documents, and also to execute such other documents and certificates as may be
necessary, as determined by the officers executing such documents referred to above, to give
effect to the transactions herein contemplated.
ADOPTED by the Eden Prairie City Council on May 19, 2009.
( ' &J A
Nil Young, Mayor
ATTEST:
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K hleen Porta, City Clerk