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6.0. EDSR 12-13-1994 EDA ITEM #6 MORTGAGE SUBORDINATION AGREEMENT • THIS AGREEMENT is given this day of , 1993, by THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota (the "EDA") . RECITALS The EDA is the holder of a mortgage dated , 1993, recorded , 1993, as Document No. in the office of the County Recorder in and for Sherburne County, Minnesota (the "EDA Mortgage") which affects certain real property legally described on Exhibit A attached hereto and made a part hereof (the "Property") . First National Bank of Elk River (the "Bank") is the holder of a mortgage dated 4001QpItkAIA, 1993, recorded bC(O,/A 1 , 1993, as Document No. v$'j(p$Q1 in the office of the County Recorder in and for Sherburne County, Minnesota, affecting the Property (the "Bank Mortgage") . The Bank has required this agreement as an inducement to make the loan secured by the Bank Mortgage and the parties desire that the EDA subordinate the EDA Mortgage to the Bank Mortgage. NOW, THEREFORE, in consideration of One Dollar ($1.00) and other valuable consideration, the EDA agrees that the EDA Mortgage and the EDA' s interests therein are hereby subordinated to the Bank Mortgage and the Bank's interests therein, regardless of whether the Bank Mortgage is entered into and/or filed of record before or after the EDA Mortgage. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the above date. • THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER By: Its: STATE OF MINNESOTA) ) ss. COUNTY OF This instrument was acknowledged before me on , 1993, by , the of THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota. Notary Public THIS INSTRUMENT WAS DRAFTED BY: LARKIN, HOFFMAN, DALY & LINDGREN, LTD. 1500 NORWEST FINANCIAL CENTER 7900 XERXES AVENUE SOUTH BLOOMINGTON, MINNESOTA 55431 (612) 835-3800 • GAR:ZGOS EXHIBIT A • Legal Description: Parcel I : Lots 3, 4, 5 and 6, Block 8, W. H. Houlton' s Addition to the village of Elk River, according to the recorded plat thereof and situate in Sherburne County, Minnesota. Parcel II That part of Lot 4, Auditor' s Subdivision No. 5, in said Village of Elk River, described as beginning at the Northeast corner of Lot 6, said Block 8, W. M. Moulton' s Addition; thence East along the easterly extension of the North line of said Lot 6 to its intersection with the northerly extension of the East line of Lot 3, said Block 8, W. H. Moulton' s Addition; thence south along said northerly extension of the East line of Lot 3 to the Northeast corner of said Lot 3; thence west along the North line of said Lot 3 to intersect the East line of said Lot 6; thence north along the East line of Lot 6 to the point of beginning. • • • • MORTGAGE SUBORDINATION AGREEMENT • THIS AGREEMENT is given this day of , 1993, by THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota (the "EDA") . RECITALS The EDA is the holder of a mortgage dated , 1993, recorded , 1993, as Document No. in the office of the County Recorder in and for Sherburne County, Minnesota (the "EDA Mortgage") which affects certain real property legally described on Exhibit A attached hereto and made a part hereof (the "Property") . The Bank of Elk River (the "Bank") is the holder of a mortgage dated 04.1m51,16 , 1993, recorded 0c11115 00) , 1993, as Document No. 7-401(o I in the office of the County Recorder in and for Sherburne County, Minnesota, affecting the Property (the "Bank Mortgage") . The Bank has required this agreement as an inducement to make the loan secured by the Bank Mortgage and the parties desire that the EDA subordinate the EDA Mortgage to the Bank Mortgage. NOW, THEREFORE, in consideration of One Dollar ($1.00) and other valuable consideration, the EDA agrees that the EDA Mortgage and the EDA's interests therein are hereby subordinated to the Bank Mortgage and the Bank's interests therein, regardless of whether the Bank Mortgage is entered into and/or filed of record before or after the EDA Mortgage. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the above date. • THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER By: Its: STATE OF MINNESOTA) ) ss. COUNTY OF This instrument was acknowledged before me on , 1993, by , the of THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota. Notary Public _ THIS INSTRUMENT WAS DRAFTED BY: LARKIN, HOFFMAN, DALY & LINDGREN, LTD. 1500 NORWEST FINANCIAL CENTER 7900 XERXES AVENUE SOUTH BLOOMINGTON, MINNESOTA 55431 (612) 835-3800 • GAR:ZG1S EXHIBIT A 4 Legal Description: Lot 1, Block 2, Meadowvale Commercial Park, Sherburne County, Minnesota. 4 • GAR:ZG1S ri Th SUBORDINATION AND ATTORNMENT AGREEMENT 411r THIS AGREEMENT is made as of , 1993, among BEAUDRY CONVENIENCE, INC. , a Minnesota corporation ("Tenant") , whose address is KENNETH J. BEAUDRY and CARRIE J. BEAUDRY, husband and wife ("Mortgagor") , whose address is 19701 Rush Street, Elk River, Minnesota 55330; and THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota ("Mortgagee") , whose address is 13065 Orono Parkway, P.O. Box 490, Elk River, Minnesota 55330. RECITALS A. Mortgagor is the owner of certain real estate situated • in Sherburne County, Minnesota, which is legally described on Exhibit A attached to this Agreement (the "Premises") ; B. Mortgagee has made a loan to Mortgagor, repayment of which is secured by a Mortgage dated , 1993, which has been filed for record on , 1993, in the Office of the Sherburne County Recorder as Document Number (the "Mortgage") ; C. Tenant has leased all or a portion of the Premises from Mortgagor under a lease dated September 29, 1993 , between Mortgagor and Tenant, filed October 1, 1993 , as Document No. 283690 (which lease and all amendments thereto are referred to herein as the "Lease") ; D. As a condition of Mortgagee' s disbursement of loan proceeds, Mortgagee has required Tenant to confirm that the Lease and Tenant ' s interest in the Premises are subordinate to the lien of the Mortgage; E. Mortgagee is disbursing the loan proceeds in reliance upon the covenants contained in this Agreement. • NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Subordination. The Lease and the rights of Tenant in, to, or under the Lease and the Premises, including any provisions in the Lease pertaining to the application of any proceeds of insurance and awards payable by reason of a taking in eminent domain or pursuant to condemnation action, are hereby subjected and subordinated and shall remain in all respects and for all purposes subject, subordinate, and junior to the Mortgage, and to the rights and interest of any holder of the Mortgage. 2 . Purchase Options. Any options or rights contained in the Lease to acquire title to the Premises, including any first rights of refusal, are hereby made subject and subordinate to the rights of Mortgagee under the Mortgage. Any acquisition of title to any part of the Premises by Tenant during the term of the Mortgage shall be made subordinate and subject to the Mortgage. 3 . Tenant to Attorn to Mortgagee. If the interests of Mortgagor shall be transferred to and owned by Mortgagee by reason of foreclosure or other proceedings brought by it in lieu of or pursuant to a foreclosure, or by any other manner, and Mortgagee succeeds to the interest of Mortgagor under the Lease without terminating or extinguishing the Lease, Tenant shall, at the sole option of Mortgagee, be bound to Mortgagee under all of the terms, • covenants, and conditions of the Lease for the balance of the term remaining thereof, with the same force and effect as if Mortgagee were originally the landlord under the Lease. Tenant does hereby attorn to Mortgagee as its landlord, effective and self-operative immediately upon Mortgagee so succeeding to the interest of Mortgagor under the Lease without the execution of any further instruments by any of the parties hereto. The respective rights and obligations of Tenant and Mortgagee upon such attornment, to the extent of the then remaining balance of the term of the Lease, shall be and are the same as now set forth therein. 4 . Mortgagee Not Bound by Certain Acts of Mortgagor. If Mortgagee shall succeed to the interest of the Mortgagor under the Lease, Mortgagee shall not be liable for any act or omission of any prior landlord (including Mortgagor) ; nor subject to any offsets or defenses which Tenant might have against any prior landlord (including Mortgagor) ; nor bound by any rent which Tenant might have prepaid; nor for more than the then current installment of rent; nor bound by any amendment or modification of the Lease made without its consent. In the event of a default by Mortgagor under the Lease or an occurrence that would give rise to an offset against rent or claim against Mortgagor under the Lease, Tenant will use its best efforts to set off such defaults against rents currently due Mortgagor and will give Mortgagee notice of such defaults or occurrence at the address of Mortgagee as set forth • above and will give Mortgagee such time as is reasonably required 2 . • to cure such default or rectify such occurrence, provided Mortgagee uses reasonable diligence to correct the same. Tenant • agrees that notwithstanding any provision of the Lease to the contrary, it will not be entitled to cancel the Lease, or to abate or offset against the rent, or to exercise any other right or remedy until Mortgagee has been given notice of default and the opportunity to cure such default as provided herein. If Tenant has paid a security deposit to Mortgagor under the Lease, Mortgagee shall not have any liability to Tenant unless the same has actually been paid over to Mortgagee and Mortgagee holds the same. 5 . Successors and Assigns. This Agreement and each and every covenant, agreement, and other provision hereof shall be binding upon the parties hereto and their respective successors and assigns, [including without limitation each and every holder of the Lease or any other person having an interest therein] and shall inure to the benefit of Mortgagee and its successors and assigns. As used herein, the words "successors and assigns" shall include the heirs, administrators, and personal representatives of any natural person who is a party to this Agreement. 6 . Choice of Law. This Agreement is executed under and in all respects is to be governed and construed by the laws of the State of Minnesota. 7. Captions and Headings. The captions and headings of the • various sections of this Agreement are for convenience only and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. Whenever the context requires or permits, the singular and the plural, and the masculine, feminine, and neuter shall be freely interchangeable. 8 . Notices. Any notice which any party hereto may desire or may be required to give to any other party shall be in writing. The mailing thereof by certified mail, return receipt requested, or equivalent, to the addresses as set forth above, or to such other place any party hereto may subsequently by notice in writing designate as its address shall constitute service of notice hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the above date. MORTGAGOR: Kenneth J. Beaudry _ Carrie J. Beaudry 3 . MORTGAGEE: THE ECONOMIC DEVELOPMENT • AUTHORITY FOR THE CITY OF ELK RIVER By: Its : TENANT: BEAUDRY CONVENIENCE, INC. By: Its : STATE OF ) ss. COUNTY OF This instrument was acknowledged before me on 1993 , by KENNETH J. BEAUDRY and CARRIE J. BEAUDRY, husband and wife. Notary Public • STATE OF ) ss. COUNTY OF This instrument was acknowledged before me on 1993, by , the of THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, public body corporate and politic of the State of Minnesota. Notary Public • 4 . s STATE OF ) ss . • COUNTY OF This instrument was acknowledged before me on 1993 , by , the of BEAUDRY CONVENIENCE, INC. , a Minnesota corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. 1500 Norwest Financial Center 7900 Xerxes Avenue South Bloomington, Minnesota 55431 (612) 835-3800 • GAR:ZP9S 5 . EXHIBIT A Legal Description of Premises: Lots 3 , 4, 5, and 6, Block 8, W. H. HOULTON'S ADDITION to the Village of Elk River, Sherburne County, Minnesota. Together with that part of Lot 4, AUDITOR'S SUBDIVISION NO. 3 , in said Village of Elk River, Sherburne County, Minnesota, described as Beginning at the Northeast corner of Lot 6, said Block 8, W. H. Houlton' s Addition; thence east along the easterly extension of the North line of said Lot 6 to its intersection with the northerly extension of the East line of Lot 3, said Block 8, W. H. HOULTON' S ADDITION; thence south along said northerly extension of the East line of Lot 3 to the Northeast corner of said Lot 3 ; thence west along the North line of the said Lot 3 to intersect the East line of said Lot 6; thence north along said East line' of Lot 6 to the point of beginning. 411 S