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4.5. HRSR 10-07-2019 Request for Action To Item Number Housing and Redevelopment Authority 4.5 Agenda Section Meeting Date Prepared by Consent October 7, 2019 Amanda Othoudt, ED Director Item Description Reviewed by Satisfaction Agreement - Barbara and Jerome Cal Portner, City Administrator Olesen Reviewed by Action Requested Approve, by motion, the Satisfaction Agreement for Barbara and Jerome Olesen. Background/Discussion On May 20, 2015, Barbara and Jerome Olesen received a loan from the HRA in the amount of $25,000 to make improvements to the property located at 420 Main St. NW through the HRA’s Rehabilitation Loan program. On October 13, 2019, The Mortgage and Repayment Agreement dated May 20, 2015, recorded October 14, 2015 as Document No. 811093, executed by Jerry and Barbara Olesen, a married couple, to the Housing and Redevelopment Authority in the original principal amount of $25,000 has been fully paid and satisfied. Financial Impact N/A Attachments  Mortgage and Repayment Agreement  Satisfaction of Mortgage The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Office of the County Recorder Sherburne County, MN Doc. No. 811093 Certified, Filed, and/or recorded on —October 14, 2015 3:00 PM I`klr'j i F{UM hr i,i iir iJN T(i)(, �Rr� coyin�IMichel A County Recorder y v ti; i CASUr?cR g Deputy Fees: $46.00 41�L" III 111111111 Mortgage and Repayment Agreement 811093 (Elk River HRA Owner -Occupied Housing Rehabilitation Program) This mortgage is exempt from 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 20" Day of May. 2015 (the "Effective Date"), by and between Jerome D. Olesen and Barbara J. Olesen, a married couple, (the "Owner") the owner of the property located at 420 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 101, 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 -Five Thousand and 00/100 ($25,000.00) 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 in installments of principal and interest of $ 175.67 per month, beginning on October 111, 2015 , through and including September V, 2030 (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 tern "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. 11. 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. Own and agar: Jerqmep. esen Barbara J. Olesen STATE OF MINNESOTA) )ss. COUNTY OF (Sties b �r d The foregoing instrument was acknowledged before me this 2 day of �k y 2015, by Jerome D. Olesen and Barbara J. Olesen, a married couple. 9 ry iblic 4Rr?� MATTHEW P BONIN Notary Public y Minnesota f M mi,sion Es res Jamia 31.2017 Accepted and agreed to by: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY STATE OF MINNESOTA) )ss. COUNTY OF The foregoing instrument was acknowledged before me this _day of 204, by tf Ori the and tt the 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 NOTARYK#8LIC•INNE80M �ArO1mnlNknF�pMpJMW31,20MM, THIS INSTRUMENT DRAFTED BY: Housing and Redevelopment Authority for the City of Elk River 13065 Orono Pkwy NW Elk River, MN 55330 Exhibit A Legal Description of Property Lot 9, Block I, Auditor's Subdivision No. 5 in the Village of Elk River, together with an easement over and across the East 6 feet of the South 65 feet of Lot 8, Block 1, Auditor's Subdivision No. 5, Sherburne County, Minnesota A-1 Exhibit B Amortization Schedule and Truth in Lending Statement Form No. 2051-51M—SATISFACTION OF MORTGAGE By Corporation or Partnership Satisfaction of Mortgage Date: 9/17/2019 THAT CERTAIN MORTGAGE owned by the undersigned, a corporation under the laws of Minnesota, dated 5/20/2015 executed by Jerome D. Olesen and Barbara J. Olesen, a married couple married to each other, as Mortgagor(s), to the Housing and Redevelopment Authority in and for the City of Elk River, Minnesota, as Mortgagee to, and filed for record on 10/14/2015 as Document Number 811093 (or in Book ________ of ________ Page ______), in the Office of the ☒ County Recorder of Sherburne County, Minnesota, is with the indebtedness thereby secured, fully paid and satisfied. City of Elk River, Minnesota STATE OF MINNESOTA } } ss. COUNTY OF SHERBURNE } The foregoing instrument was acknowledged before me on _________________, by ________________________, the ____________________ of _______________, a corporation under the laws of Minnesota, on behalf of the corporation. _________________________________ Signature of Notarial Officer taking acknowledgement (Reserved for recording data) THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS) Center for Energy and Environment 212 Third Avenue North, Suite 560 Minneapolis, MN 55401 NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) ____________________________ (Signature) By:_________________________________ (Name of authorized signor) __________________________________ (Title of authority) DocuSign Envelope ID: 4A3ABFEF-45F0-47C5-95FB-FE68F58C0884 Electronic Record and Signature Disclosure Certificate Of Completion Envelope Id: 4A3ABFEF45F047C595FBFE68F58C0884 Status: Completed Subject: Satisfaction of Mortgage Source Envelope: Document Pages: 2 Signatures: 0 Envelope Originator: Certificate Pages: 4 Initials: 0 Marco Landoni AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 212 3rd Avenue North Minneapolis, MN 55401 mlandoni@mncee.org IP Address: 65.121.0.34 Record Tracking Status: Original 9/17/2019 4:23:45 PM Holder: Marco Landoni mlandoni@mncee.org Location: DocuSign Signer Events Signature Timestamp In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Amanda M Othoudt AOthoudt@elkrivermn.gov Security Level: Email, Account Authentication (None)Using IP Address: 64.90.92.146 Sent: 9/17/2019 4:30:35 PM Viewed: 9/17/2019 4:32:56 PM Electronic Record and Signature Disclosure: Accepted: 3/25/2019 1:49:11 PM ID: 7b67470c-67ec-4b25-8725-ad9a3aa20ad1 Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/17/2019 4:30:35 PM Certified Delivered Security Checked 9/17/2019 4:32:57 PM Completed Security Checked 9/17/2019 4:32:57 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, Center for Energy and Environment (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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