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
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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
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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
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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
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