HomeMy WebLinkAbout[04k] Subordination Agreement
Council Agenda Item 4k
MEETING DATE: January 21, 2020
AGENDA ITEM: Subordination Agreement
SUBMITTED BY: Administration/Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: Bad Habit is refinancing their loan and the attached agreement is
a required document from the lender.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Subordination Agreement
REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the
Subordination Agreement for Bad Habit Brewing Company.
\[Space above This Line for Recorder’s Use\]
SUBORDINATION AGREEMENT
FOR VALUABLE CONSIDERATION, this Subordination Agreement is made on
this 21st day of January 2020 by the City of St. Joseph, a Minnesota public body,
corporate and politic (“City”).
WHEREAS, pursuant to a Mortgage repayment agreement, Bad Habit Brewing
Company Properties, L.L.C., entered into a mortgage on September 14, 2018, and
recorded on September 14, 2018 in the Office of the Stearns County Recorder as
Document No. A1529247 (“Mortgage”), hereby mortgages and warrants unto the City of
St. Joseph (“City”), in consideration of the sum of Two Hundred Ninety-Seven Thousand
Five Hundred and No/100 Dollars ($297,500) and other sufficient consideration, receipt
of which in hereby acknowledged, the following described real estate situated in Stearns
County, Minnesota to-wit:
Parcel A:
Lots Four (4) and Five (5) and the Southerly Two-Thirds of Lot Six (6) in Block
Nine (9) in the Townsite (now Village) of St. Joseph, Stearns County,
Minnesota.
Parcel B:
The Northerly 66 feet of Lot Six (6), Block Nine (9), Townsite of St. Joseph,
Stearns County, Minnesota.
WHEREAS, Bad Habit Brewing Company Properties, L.L.C., has applied for
refinancing of their mortgage in the Property through Central Minnesota Credit Union
(“Bank”), in the amount of $682,500.00 and Bank is willing to extend credit to Bad Habit
Brewing Company Properties, L.L.C., on the condition that the City subordinates its Lien
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 Lien to Bank’s
Mortgage dated ___________________ and recorded on ________________, 2020 in
the Office of the Stearns County Recorder as Document No.___________________.
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CITY OF ST. JOSEPH,
a Minnesota public body, corporate and politic
By: Rick Schultz
Its: Mayor
By: Kris Ambuehl
Its: Administrator
STATE OF MINNESOTA )
) ss.
COUNTY OF STEARNS )
This instrument was acknowledged before me on this 21st day of January, 2020,
by Rick Schultz as Mayor and Kris Ambuehl, as Administrator of the City of St. Joseph, a
Minnesota public body, corporate and politic, on behalf of said city.
Notary Public
Drafted by:
City of St. Joseph
75 Callaway St E
St. Joseph, MN 56374
320-363-7201
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