HomeMy WebLinkAboutCity Council Resolution 2018-262
C ITY OF P LYMOUTH
R ESOLUTION N O. 2018-262
R ESOLUTION A PPROVING A MENDED AND R ESTATED M ASTER
S UBORDINATION A GREEMENT AND E STOPPEL C ERTIFICATE
WHEREAS, the Vicksburg Commons Limited Partnership, a Minnesota limited partnership
(“Borrower”) previously applied to and obtained certain loans from the City of Plymouth (“City”),
Minnesota Housing Finance Agency (“MHFA”), the Housing and Redevelopment Authority in and for the
City of Plymouth, Minnesota (“HRA”), the County of Hennepin (“County”) and CommonBond
Communities (“CommonBond”) (collectively, the “Parties”) to help fund the construction of a multiple
family housing development (“Development”) in the City of Plymouth on real property legally described
as:
nd
Lot 1, Block 1, Taryn Hills 2 Addition, Hennepin County, Minnesota
(the “Property”);
WHEREAS, the City’s loan to Borrower is secured by a Mortgage, Security Agreement,
Assignment of Leases and Rents and Fixture Financing Statement dated October 31, 2006, and filed of
record on November 2, 2006 in the Office of the Registrar of Titles of Hennepin County as Document
Number 4322516, which requires Borrower to obtain the consent of the City prior to encumbering the
Property; and
WHEREAS, the Parties entered into a Master Subordination Agreement and Estoppel Certificate
dated October 31, 2016 (“Original Subordination Agreement”) establishing the order of priority for the
loan documents, liens created by the loan documents and other documents related to the loans granted
to Borrower; and
WHEREAS, Borrower has applied to and obtained certain additional loans from MHFA in
the amount of $200,000.00 and CommonBond in the amount of $150,000.00 (“New Loans”) for
the immediate and future repairs and improvements to the Development; and
WHEREAS, the City desires to consent to the New Loans and recording of mortgages against the
Property to secure the New Loans conditioned upon the parties modifying the Original Subordination
Agreement in a form approved by the City; and
WHEREAS, the parties desire to amend the Original Subordination Agreement to specify how the
terms and conditions contained in the New Loans and related documents will be interpreted in the
event of a conflict or inconsistency and address the order of priority in light of the New Loans granted to
Borrower as provided in the Amended and Restated Master Subordination Agreement And Estoppel
Certificate attached hereto as Exhibit A (“Amended Subordination Agreement”); and
WHEREAS, under the Amended Subordination Agreement, the City will maintain its original
priority of fourth position and New Loans will now be last in priority.
Resolution No. 2018-262
Page 2 of 2
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA as follows:
1) The Amended Subordination Agreement is approved.
2) The City consents to recording of mortgages against the Property by CommonBond and the
MHFA to secure the New Loans conditioned upon all parties executing the Amended Subordination Agreement.
APPROVED by the City Council on this 24th day of July, 2018.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I
compared the foregoing resolution adopted at a meeting of the Plymouth City Council on July 24, 2018, with the original
thereof on file in my office, and the same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this _______ day of
_______________________, ___________.
City Clerk