4.3. HRSR 03-06-2017 EGty1� ,.,�� Request for Action
River
To Item Number
Housing and Redevelopment Authority 4.3
Agenda Section Meeting Date Prepared by
Consent March 6, 2017 Amanda Othoudt,EDD
Item Description Reviewed by
Satisfaction Agreement Cal Portner, City Administrator
Reviewed by
Action Requested
Approve,by motion, the Satisfaction Agreement for Jon W. and Ann K.Jungers.
Background/Discussion
On April 21, 2015,Jon W and Ann K.Jungers received a loan from the HRA in the amount of
$24,881.69 to make improvements to the property located at 928 Main Street through the HRA's
Rehabilitation Loan program.
On July, 28, 2016,The Mortgage and Repayment Agreement dated April 21, 2015,recorded February 12,
2016 as Document No. 816352, executed by Jon W.Jungers and Ann K.Jungers, a married couple, to the
Housing and Redevelopment Authority in the original principal amount of$24,881.69 has been fully paid
and satisfied.
Financial Impact
None
Attachments
■ Mortgage and Repayment Agreement
■ Satisfaction Agreement
■ Letter to Larson Abstract Company
POWERED 6T
AR
i r:r' I' T RATION TAX.
,-Ei; J iVE COUNTY
AUDITOR/TREASURER
pKt NolCr
Office of the County Recorder
Sherburne County, MN
DOC. No. 816352
Certified, Filed, and/or recorded on
February 12, 2016 2:45 PM
Miche e, County Recorder
Deputy
Fees: $46.00
111111111111111111
816352
Mortgage and Repayment Agreement
(Elk River HRA Owner -Occupied Housing Rehabilitation Program)
This mortgage is exempt front Mortgage Registration Tax imposed by Minnesota Statutes, §287.035,
pursuant to Minnesota Statutes, §287.04, because the principal amount of the mortgage loan referred
to herein is made under an affordable housing program and the mortgagee is the Housing and
Redevelopment Authority in and for the City of Elk River, a Minnesota body corporate and politic.
THIS MORTGAGE AND REPAYMENT AGREEMENT (this "Mortgage"), is made and entered into this
21" Day of April. 2015 (the "Effective Date"), by and between Jon W. Jungers and Ann K. Jungers, a married
couple, the owner of the property located at 928 Main Street, Elk River, MN 55330, and legally described as
set forth in the attached Exhibit A (the "Property") and the Housing and Redevelopment Authority in and
for the City of Elk River. (the "HRA"), having its principal office at 13065 Orono Pkwy NW, Elk River, MN
55330.
NOW THEREFORE, in consideration of the Installment Loan described below and for other good and
valuable consideration, the parties do hereby agree as follows:
1. In accordance with the Elk River Owner -Occupied Housing Rehabilitation Policies and Procedures
(the "Procedures") and the Owner's Application dated March 24 2015 (the "Application"), both of
which are incorporated herein by reference as if fully set forth herein, the HRA has agreed to make
to Owner a Housing Rehabilitation Loan, (the "Installment Loan"), relating to the Property, in the
amount of Twenty -Four Thousand Eight Hundred Eiehty-One and 69/100 ($24,881.69) Dollars.
The Installment Loan shall be disbursed directly to the contractor performing the work on the
Property described in the Application in accordance with the Procedures. The Owner agrees to repay
to the HRA in the Installment Loan plus interest thereon at the rate of 3.25% per annum ir.
installments of principal and interest of $ $174.84 per month, beginning on February 111, 2016
, through and including January 1 ", 2031 (the "Final Maturity
Date") in accordance with the amortization schedule and the Truth in Lending Statement signed by
Owner both attached as Exhibit B. The Owner may prepay the Installment Loan in whole, together
with accrued interest thereon, to the HRA on any business day.
2. Owner covenants and agrees with the HRA that if the Property is transferred or otherwise conveyed,
voluntarily or involuntarily, either while the Owner is living or by reason of the death of the Owner
prior to the Final Maturity Date, the Installment Loan and all accrued interest thereon shall be
immediately due and payable and shall be repaid in full to the HRA.
3. As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and
the cost, including reasonable attorney's fees, of collecting the same, and subject to the terms and
conditions of this Mortgage, Owner hereby grants, and HRA shall and hereby does have, a statutory
mortgage on the Property in accordance with Minnesota Statutes, Section 507.15.
4. The Owner covenants with the HRA the following statutory covenants;
a. To warrant the title to the Property; subject to permitted encumbrances as set forth in
Exhibit C.
b. To pay the indebtedness as herein provided.
c. To pay all taxes.
d. That the Property shall be kept in repair and no waste shall be committed.
e. That the whole of the principal sum shall become due after default, in the payment of any
installment of principal or interest, or of any tax, or in the performance of any other
covenant, at the option of the HRA.
f. To pay principal and interest on prior mortgages.
5. If default be made in any payment or covenant herein, the HRA shall have the statutory power of
sale, and on foreclosure may retain statutory costs and attorney's fees.
6. For the protection of the HRA, the Owner will, during all the time until the indebtedness secured
by this mortgage is fully paid, maintain all risk property insurance, naming the HRA as an
additional insured, in an amount not less than the full insurable replacement value of the Property.
Said insurance shall be written by a company or companies licensed to do business in Minnesota
and rated Class A -:VII or better by A.M. Best Company. The term "full insurable replacement
value" shall mean the actual replacement cost of the Property (excluding foundation and
excavation costs and costs of underground flues, pipes, drains, and other items customarily
omitted from replacement cost valuation for insurance purposes), without deduction for
depreciation. The Owner will assign and deliver the policies of such insurance to the HRA so and
in such manner and form that the HRA shall at all times, until the full payment of said
indebtedness, have and hold the said policies as a collateral and further security for the payment of
said indebtedness, or at the option of the HRA will make such policies payable in case of loss to
the HRA as its interest may appear and will deposit them with the HRA, and in default of so
doing, that the HRA may, but has no obligation to, obtain such insurance from year to year, or for
one or more years at a time, and pay the premiums therefor, and that the Owner will forthwith
repay to the HRA the same, with interest at the mortgage rate, and that the same shall become a
part of the debt secured by this mortgage in like manner as the principal sum. The Owner may
retain any moneys received by him/her on the policies, but the same shall apply in part payment of
this mortgage.
7. This Mortgage shall terminate and shall be of no further force or effect upon payment in full of the
Installment Loan and accrued interest thereon.
8. The Owner will indemnify, save, and hold harmless the HRA, the City of Elk River, Minnesota,
Central Minnesota Housing Partnership, Inc., their officers, agents, and employees, from and
against any claim, cause of action, damage, liability, loss or expense, including attorney's fees
incurred by the HRA, made by any party in connection with or arising from (i) the presence, if
any, of hazardous wastes or pollutants on the Property; (ii) any loss or damage to property or any
injury to or death of any person occurring at or about or resulting from any defect in the Property,
(iii) the performance of, or failure to perform, this Mortgage. Nothing herein shall be deemed a
waiver of any statutory limitations of liability or immunity.
9. This Mortgage shall run with the aforesaid real estate and shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, executors, representatives, successors,
and assigns.
10. Any forbearance by the HRA in exercising any right or remedy shall not be a waiver of or
preclude the exercise of any right or remedy.
H. This Mortgage shall be governed by the law of the state of Minnesota In the event that any
provision or clause of this Mortgage conflicts with applicable law, such conflict shall not affect
other provisions of this Mortgage which can be given effect without the conflicting provision. To
this end, the provisions of this Mortgage are declared to be severable.
12. This Agreement may be executed in any number of counterparts, each of which shall constitute
one and the same instrument.
In witness whereof the Owner has duly executed this Rehabilitation Program Mortgage and Repayment
Agreement.
Owner and Mortgagor:
Jo .Junger
Ann K. Jungers
STATE OF MINNESOTA)
)ss.
COUNTY OF
The foregoing instrument was acknowledged before me this a 1 day of ISA r 1 20 r by
Jon W. Jungers and Ann K. Jungers, Owner and Mortgagor.
ALEATHA R SWITZER
Notary Public
Minnesota
19mly.awtsbnEx iresJan 31.2019
S-1
Accepted and agreed to by:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
STATE OF MINNESOTA)
)ss.
COUNTY OF
The foregoing instrument was acknowlgyd�ged before me this ay of 20/5, by
/,(-), 1, the and i d the
e e/, respectively, of the Housing and Redevelopment Authority in and for the City
of Elk River, a body corporate and politic organized and existing under the Constitution and laws of the
State of Minnesota, on behalf of said Authority
Notary Public
DEBORAH KAY HUEBNER
NOTARY PtlLIC-MWNESOTA
M1QMW t WwJK31,2020
THIS INSTRUMENT DRAFTED BY:
Housing and Redevelopment Authority for the City of Elk River
13065 Orono Pkwy NW
Elk River, MN 55330
[.`9►a
Exhibit A
Legal Description of Property
That part of the South Half of Lot 3, in Block 23, in the Village of Elk River, Sherburne County,
Minnesota, described as follows:
Beginning at the Southeast corner of the South Half of Lot 3, Block 23, of the duly recorded plat of the said
Village; thence westerly along the North line of Main Street 27 feet, as the point of beginning; thence
northerly at right angles to the North line of Main Street to the North line of the South Half of Lot 3, in said
Block 23; thence Westerly 60 feet on the said North line of the South Half of Lot 3; thence Southerly to the
North line of Main Street to a point 60 feet westerly from the point of beginning; thence easterly along the
North line of Main Street 60 feet to the point of beginning. Together with that certain "Easement for
Driveway" dated September 5, 1929, and recorded on the Office of the Registrar of Deed in and for County
of Sherburne, and State of Minnesota on December 19, 1929 at 11 o'clock A.M. in Book "L" of Misc.
Records on page 345, described as follows: Beginning at a point on Main Street in said Village of Elk
River, Sherburne County, Minnesota 87 feet West of the southeast comer of the South Half of Lot 3, Block
23, thence northerly at right angles 125 feet; thence West to a point 10 feet distant, thence South at right
angles to North line of Main Street, thence along Main Street 10 feet to place of beginning.
FM
Exhibit B
Amortization Schedule and Truth in Lending Statement
(Top 3 inches reserved for recording data)
MORTGAGE SATISFACTION Minnesota Uniform Conveyancing Blanks
by Business Entity Form 20.5.2 (2011)
DATE: February 16, 2017
(month/day/year)
THAT CERTAIN MORTGAGE owned by the undersigned, a
of Minnesota
under the laws
dated April 21, 2015 executed by Jon W.
(month/day/year)
Jungers and Ann K. Jungers, a married couple
(insert name of mortgagor)
as mortgagor, to Housing and Redevelopment Authority in and for the City of Elk River
as mortgagee, and recorded on Februray 12, 2016
(insert name of mortgagee)
, as Document Number 816352
(month/day/year)
of _ Page __), in the Office of the 10 County Recorder 0 Registrar of Titles of Sherburne
(check the applicable boxes)
County, Minnesota, is with the indebtedness thereby secured, fully paid and satisfied.
(or in Book
Housing and Redevelopment Authority in and for the City of
(name)
Elk River
By:
(signature)
Its:
(type of authority)
By:
(signature)
Its:
(type of authority)
Page 1 of 2
Page 2 of 2
State of Minnesota, County of
This instrument was acknowledged before me on , by
and by
as
(type of authority)
(Stamp)
THIS INSTRUMENT WAS DRAFTED BY:
(insert name and address)
Larson Abstract Company, Inc.
701st Avenue SE
Little Falls, MN 56345
Minnesota Uniform Conveyancing Blanks Form 20.5.2
(month/day/year) (name of authorized signer)
FL
(type of authority)
(name of authorized signer)
_ of Housing and Redevelopment Authority in and for the City of Elk River
(name of party on behalf of whom the instrument was executed)
(signature of notarial officer)
Title (and Rank):
My commission expires:
(month/day/year)
13065 Orono Parkway
Elk River, MN 55330
February 15, 2017
Phyllis Ruud
Larson Abstract Company, Inc.
70 SE 1' Avenue
Little Falls, MN 56345
Dear Ms. Ruud,
The Mortgage and Repayment Agreement dated April 21, 2015, recorded February 12, 2016 as
Document No. 816352, executed by Jon W. Jungers and Ann K. Jungers, a married couple, to the
Housing and Redevelopment Authority in the original principal amount of $24,881.69 has been fully paid
and satisfied.
A signed Satisfaction of the Mortgage and Repayment Agreement will be executed at the next, regularly
scheduled meeting of the City of Elk River Housing and Redevelopment Authority on March 6, 2017 and
mailed to your office for recording.
Please let me know if I can be of any further assistance.
ncerely,
Amanda Cthoudt, EDFP
!roe Z-4 0
Economic Development Director
City of Elk River
Enclosure
Phone: 763.635.1000
Fax: 763 635-1090
www.ElkRiverMN.gov
POWERED 0Y