HomeMy WebLinkAbout[04j] Prego Properties Mortgage Satisfaction
\[04j\]
Council Agenda Item
MEETING DATE
: March 6, 2017
AGENDA ITEMRequested Action:
: Subordination Agreement –
Authorize the Mayor and Administrator to execute the Subordination Agreement for RLF for Prego.
SUBMITTED BY
: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
: The EDA reviewed an
application for utilization of revolving loan funds to improve the former Loso’s Store building and
recommended the Council execute the necessary documents for utilization of the funds.
PREVIOUS COUNCIL ACTION
: The City Council approved the Revolving Loan for Prego
Properties LLC in 2015. The RL provided funding assistance for the restoration of the former Loso’s
Store Building.
BACKGROUND INFORMATION
: Prego Properties is expanding and in the process refinancing
their properties. The City must approve the transfer of the RLF to the new financing. In addition, prior to
issuance of the 2015 RLF, Prego had utilized funds for an improvement and have since paid the full
balance to the City. Therefore the City is being requested to execute a satisfaction of debt.
BUDGET/FISCAL IMPACT
:
ATTACHMENTS
: Request for Council Action
Satisfaction of Mortgage
Subordination Agreement
REQUESTED COUNCIL ACTION:
Authorize the Mayor and Administrator to execute the
Mortgage Satisfaction and Subordination Agreement for Prego Properties LLC.
(Top 3 inches reserved for recording data)
SATISFACTION OF MORTGAGE
by Municipal Corporation
DATE: February ___, 2017
THAT CERTAIN MORTGAGE, owned by the undersigned, under the laws of Minnesota, dated December 9, 2009,
executed by Jeffrey R. Engholm on behalf of Prego Properties, LLC, as borrowers, to the City of St. Joseph, in the
amount of $24,000.00 and recorded on December 16, 2009, as Document Number 1305398 on Parcel
84.53859.0000, in the Office of the County Recorder Registrar of Titles of Stearns County, Minnesota, is
with the indebtedness thereby secured, fully paid and satisfied.
CITY OF ST. JOSEPH
By:
Rick Schultz, Mayor
By:
Judy Weyrens, City Administrator
State of Minnesota )
)
County of Stearns )
This instrument was acknowledged before me on February ___, 2017, by Rick Schultz, Mayor, and Judy
Weyrens, City Administrator, on behalf of the City of St. Joseph.
(Stamp)
(signature of notarial officer)
1
THIS INSTRUMENT WAS DRAFTED BY
:
Susan M. Kadlec - 0290385
Jovanovich, Kadlec & Athmann, PA
1010 W. St. Germain, Suite 420
St. Cloud, MN 56301
Telephone: (320) 230-0203
2
\[Space above This Line for Recorder’s Use\]
SUBORDINATION AGREEMENT
FOR VALUABLE CONSIDERATION, this Subordination Agreement is made on this
day of February, 2017 by the City of St. Joseph, a Minnesota public body, corporate and
politic (“City”).
WHEREAS, pursuant to a Revolving Loan granted by the City to Prego Properties LLC
(“Prego”), Prego executed a mortgage in favor of the City of St. Joseph (“City”) dated May 27,
2015 and recorded on July 20, 2015 in the Office of the Stearns County Recorder as Document
No. 1448143 (“City Mortgage”), securing real property commonly known as 25 Minnesota
Street West, St. Joseph, Minnesota and legally described as:
Lot 9, and the East 2’ of Lot 8, Block 9, TOWNSITE OF ST. JOSEPH, according
to the plat thereof on file and of record in the Office of the Stearns County
Recorder
(the “Property”);
WHEREAS, Prego has applied for financing for improvements to the Property through
Sentry Bank (“Bank”), in the amount of $265,000 and Bank is willing to extend credit to Prego
on the condition that the City subordinates the City Mortgage to the Bank’s mortgage;
WHEREAS the City has determined there is adequate equity in the Property to protect
the City’s interest;
NOW, THEREFORE, the City of St. Joseph hereby subordinates the City Mortgage to
Bank’s Mortgage dated February ___, 2017 and recorded on ________________, 2017 in the
Office of the Stearns County Recorder as Document No.___________________.
CITY OF ST. JOSEPH,
a Minnesota public body, corporate and
politic
By: Rick Schultz
Its: Mayor
By: Judy Weyrens
Its: City Administrator
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ACKNOWLEDGEMENT
STATE OF MINNESOTA )
) ss.
COUNTY OF STEARNS )
This instrument was acknowledged before me on this ____ day of February, 2017, by
Rick Schultz as Mayor and Judy Weyrens, as City Administrator of the City of St. Joseph, a
Minnesota public body, corporate and politic, on behalf of said city.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY
Susan M. Kadlec
Jovanovich, Kadlec & Athmann, PA
1010 W. St. Germain, Suite 420
St. Cloud MN 56301
320 230-0203
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