HomeMy WebLinkAboutResolution - 2013-56 - Mortgage Subordination Agreement - Summit Place Senior Campus - 06/18/2013 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2013-56
RESOLUTION APPROVING A MORTGAGE SUBORDINATION AGREEMENT
BETWEEN THE CITY AND SC MINNESOTA PROPERTIES,LLC
WHEREAS, SC Minnesota Properties, LLC (SC Minnesota) and EP Assisted Living, LLC (EP
Assisted) have obtained a mortgage loan from Bridgewater Bank (Bridgewater) in the principal
amount of Five Hundred Thousand and No/100 Dollars ($500,000.00) (Bridgewater Loan) for
undeveloped property located in the Summit Place Senior Campus Planned Community located in
Eden Prairie, Minnesota; and
WHEREAS, as of February 12, 2002, SC Minnesota and EP Assisted obtained a mortgage loan
from the City in the original principal amount of Two Million Two Hundred Thousand and No/100
Dollars ($2,200,000.00) (City Loan) secured by a Mortgage dated February 12, 2002, by and
between EP Senior Housing LLC, as Mortgagor, EP Assisted, as Mortgagor, SC Minnesota, 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 Bridgewater of the Loan, Bridgewater has
required that the lien of the City Mortgage be fully subordinated to the lien of the Bridgewater Loan
and 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 Mortgage Subordination Agreement attached hereto is hereby approved. The Mayor and City
Manager are hereby authorized to execute the Mortgage Subordination Agreement 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 Mortgage
Subordination Agreement, 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 June 18,2013.
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ATTEST:
Kath(een Porta, City Clerk