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HomeMy WebLinkAboutEDA AGN 07-10-06 Special CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E" Columbia Heights, MN 55421-3878 (763) 706-3600 TOO (763) 706-3692 Visit Our Website at: www.ci.columbia-heights.mn.lls EOA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Bruce Kelzenberg Gary L. Peterson Bruce Nawrocki Bobby Williams Tammera Diehm ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 6:00 P.M., MONDAY, JULY 10,2006 CITY HALL, CONFERENCE ROOM 1 AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE. 3. DISCUSSION ITEMS A. Grand Central Lofts Proposal Motion: Move to authorize staff to proceed to apply for grant funding, proceed to negotiate with the developer and amendment to the Development Agreement in accordance with the terms of this memorandum, 4. ADJOURNMENT Walter R. Fehst, Executive Director The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its accommodation will be provided to ailow individuais with disabilities to participate in ail EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at ieast 96 hours in advance. Please cail the Deputy City Cierk at (763) 706-36 i 1 to make arrangements (TDD 706-3692) for deaf or hearing impaired only. H:\EDAAgenda2006\7-10-2006 Special THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER TO: EDA Commissioners FROM: Robert Streetar, Deputy Executive Director DATE: 10 June 2006 SUBJ: Request by New Heights Development, LLC for Tax Increment Assistance This memorandum presents EDA Commissioners with a request by New Heights Development LLC ("the developer") for tax increment financing assistance (TIF) to construct certain improvements related to the completion of the Grand Central Lofts redevelopment project. Background In 2004, the EDA entered into a development agreement with the developer to facilitate the redevelopment of a vacant 15-acre Kmart property. According to the agreement the developer must construct 210 condominium units and 21 townhomes for a total of 231 new for-sale housing units, as well as a minimum of 10,000 square feet of new commercial space. In addition, the developer must complete $300,000 of sanitary sewer improvements and repairs as well as construct a new public road. In return the EDA must provide up to $700,000 of TIF assistance to pay for demolition and site clearing costs. To date, all demolition and site clearing is complete. The developer has completed the first condominium building, as well as 4 townhomes. Another 4 town homes are currently under construction. The sanitary sewer improvements and repairs are yet to be initiated. The new road connecting 4ih and 49th avenues will be complete by September 1. Tax Increment Financing Assistance Request 1. Sanitary Sewer Upsizing and Repair Upsizinq The development agreement requires the developer to install and pay the full cost of increasing the sanitary sewer serving the redevelopment site from 10" to 12" in diameter. The sewer runs from 49th to 51st avenues along Central Avenue. The increased capacity is based upon the number of new housing units and new square feet of commercial space. The engineering feasibility report, completed in June 2003 by SEH, estimated the cost to be $236,814. The updated cost is estimated to be $470,431. The additional cost is due to the increased complexity of increasing the size given the major high pressure 1 gas line, the large fiber optics lines and the storm sewer that rest within the right-of-way surrounding the sanitary sewer line. This complexity was not contemplated as part of the feasibility report. Also included is the increased cost of polyvinylchloride pipe, which is due to the increased cost of petroleum that is used in manufacturing the pipe. The developer is requesting TIF assistance to pay for the increased cost of up to $233,617. The developer remains obligated for the initial $236,814 of costs. Repair In addition, the feasibility report recommended two repairs in the sanitary sewer line. The repairs are not generated by the redevelopment but are required based upon significant existing problems. At two locations in the line the grade is improper resulting in surcharging. This could result sewage overflow in manholes and basements, as the sewage has nowhere to go. The report estimated the cost of repair to be $63,186. The total cost has increased to approximately $85,235. The developer is requesting TIF assistance to pay for the increased cost of up to $22,049. The developer remains obligated for the initial $63,186 of costs. In summary the initial cost of the sanitary sewer upsizing and repair was $300,000. This cost has increased to $555,666. The developer is requesting TIF assistance to pay for the increased cost of up to $255,666. The developer remains obligated for the initial $300,000 of costs. Staff recommends the EDA provide TIF assistance up to $255,666 to pay for the increased cost related to upsizing and repair of the sanitary sewer line. 2. Retaining Wall The developer is requesting $200,000 of tax increment financing to construct a retaining wall in conjunction with the construction of the new commercial space. The wall would run east along 4yth Avenue to Grand Avenue then north along the rear of the commercial parcel to the northerly end of the commercial property. Staff recommends the EDA provide TIF assistance up to $200,000 to pay for the installation of the retaining wall. 3. Structured Public Parking Commercial Development Concept The developer is proposing to build two new commercial buildings. The first building is 31,858 square feet in size. Tenants in this building would include an Axel's Bonfire Grill restaurant on the first floor and office and retail tenants on the second floor. The second building is 15,840 square feet in size and would include office and retail tenants on both floors. Together, both buildings comprise 47,698 square feet and about $4.5 million dollars in new value. This is 37,698 more square feet of commercial space than the minimum required under the development agreement. This would be a significant and welcomed increase in new commercial development along Central Avenue as well as a much needed improvement to the image of Columbia Heights. Please see attached graphics. 2 Structured Public Parkinq To facilitate the new 47,698 square feet of commercial development 280 stalls of parking are required. Two hundred thirty (230) stalls must be provided as structured because the size of the parcel will not accommodate 280 stalls at-grade. The developer is requesting $2,435,000 of TIF assistance to construct 230 stalls of structured parking. The 230 stalls of structured parking could be owned by the EDA. This would include the land beneath the parking, as the developer has agreed to convey ownership of the land, at no cost to the EDA. Public ownership of the structured parking allows the City to apply for Metro Council Livable Communities grant funding to pay for a portion of the construction. This funding source is not available if the parking is private. Even under public ownership the developer has agreed to pay for all costs related to the operation and maintenance of the structured parking. This is very similar to the arrangement the EDA has with the medical clinic and the City owned structured parking located at 40th and Van Buren. If the EDA approves the construction of the public parking, staff recommends the EDA approve only $1,461,631 of TIF assistance and recommend City Council apply for Metro Council Livable Communities grant funding in the amount of $974,369 to cover the balance. The Metro Council requires the grant application be submitted by July 17. Grant awards are announced in December; consequently construction of the structured parking would begin after the grant has been formerly awarded. If the City does not receive the Metro Council grant, the developer would have to either provide alternate development plans for the parcel, as there is not enough TIF to pay the full $2,435,000 cost of the structured parking, or formulate an alternative financing plan. The developer Bruce Nedegaard will be present at the EDA meeting to answer questions Commissioners may have. Summary New Heights Development LLC presents the EDA Commissioners with a request for TIF assistance to construct certain improvements related to the completion of the Grand Central Lofts redevelopment project. Specifically, the developer requests: 1. $255,666 of TIF assistance to pay for increased costs related to sanitary sewer improvements and repairs. 2. $200,000 of TIF assistance to pay for the construction of a retaining wall. 3. $2,435,000 of TIF assistance to pay for the construction of a 230 stall EDA owned structured parking facility. 3 RECOMMENTDATION: Staff recommends the EDA: 1. Consider providing up to $255,666 of TIF assistance to pay for increased costs related to sanitary sewer improvements and repairs. 2. Consider providing up to $200,000 of TIF assistance to pay for costs related to the construction of a retaining wall. 3. Consider providing up to $1,460,631 of TIF assistance to pay for the construction of a 230 stall EDA owned structured parking facility, and recommend the City Council apply for Metro Council Livable Communities grant funding in the amount of $974,369. All three recommendations are subject to all terms and conditions of an appropriate amendment to the development agreement and approval by the Economic Development Authority. S S dU ummary ources an ses Sources Item Uses Tax Increment Met Council Developer Demolition & Site Clearing* $700,000 $700,000 $0 $0 Sanitary Sewer Upsizing $470,431 $233,617 $0 $236,814 Retaining Wall $200,000 $200,000 $0 $0 Sanitary Sewer Repairs $85,235 $22,049 $0 $63,186 Structured Parking 230 Stalls $2.435.000 $1.460.631 $974.369 iQ Total $3,890,666 $2,616,297 $974,369 $300,000 'Already included in the development agreement. RECOMMENDED MOTION: Authorize staff to proceed to apply for grant funding and proceed to negotiate with the developer an amendment to the development agreement in accordance with the terms of this memorandum. 4 i I' Ii I I Grand Central Commons Columbia Heights, MN ~ Landmark Community BuildelO Collaborative . June 21 st, 2006 Grand Central Commons Columbia Heights,MN June 21 st, 2006 Landmark Community Builder Collaborative -, Ie /' ~ENTP AI- Grand Central Commons Columbia Heights, MN Landmark Community Builder Collaborative June 21't, 2006 -!' ;.,~';:" _..' ,'--'; 1 A.V&... I ~ m !; i ~ I.' P , , , , m.- ,. , ' ms ~". ., ,:, I ~,., "^' - ". ."- CIII ~ CITY OF COLUMBIA HEIGHTS MayoI': Gary L. Peterson Councilmembcrs: Brllce Nawrocki Bobby Williams Tammcra Diehm Bruce Kelzenberg City ManageI': Walter R. Fehst 590 40th Avenue N.E.. Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Ollr Website at: IVww.ci.columbia-heights.mn.us DATE: .July 7, 2006 TO: Houorable EDA President, Don Murzyn .Jr. EDA Boardmembers FROM: Walt Fehst, City ManagCl" RE: Subordination Agreement- Huset ParluSchafer Richardson Development Corpomtion I am ,'equesting that the attached Snbordination Agreement be added to the EDA Agenda for consideration at the Monday, .July 10, 2006 meeting. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER 470 US Bank Plaza 200 South Sixth Street Minneapoiis MN 55402 & (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy~graven.com CHARTERED MEMORANDUM TO: Walt Fehst Randy Schumacher FROM: Stephen Bubu1 DATE: July 7, 2006 RE: Subordination and Consent Agreement between City, EDA and BNC National Bank ("Subordination Agreement") The City, EDA and Huset Park Development Corporation ("Redeveloper") entered into a Contract for Private Redevelopment dated as of October 25, 2005 (the "Contract"). In that Contract, the EDA agreed to subordinate its rights under the Contract in order to facilitate the Redeveloper's effOlts to secure financing for the development, subject to reasonable terms and conditions that the EDA and lender agree upon in writing. The Redeveloper is currently seeking a loan from BNC National Bank (the "Bank") to provide additional financing for continued work on the project. The Bank has requested that the EDA (and City, since the City is also a palty to the Contract) subordinate their rights under the Contract, all as detailed in tlle Subordination Agreement referenced above. The Subordination Agreement has two major functions: 1. The City and EDA subordinate whatever rights tlley have in the subject property lmder the Contract. Neither the City nor EDA hold mOltgages on the subject property, and there al'e no minimum value assessment agreements in place. As such, subordination does not materially affect the City and EDA. 2. The City and EDA agree that the Redeveloper is assigning its rights in the tax increment alld related assistance under the Contract to the Bank. That is, as security for the Barue's loan to Redeveloper, the Bank will have the right to receive tax increment notes and other payments that would otllerwise be owed to the Redeveloper. This is a standard request by lenders in redevelopment transactions, and raises no concerns for the City or EDA. Nothing in the Subordination Agreement changes the EDA's or City's obligations regarding the redevelopment effort. I have reviewed the Subordination Agreement and, and in my view, it is a commercially reasonable document that is substantially similar to agreements the EDA has approved in prior redevelopment transactions. If you or members of the Councilor EDA have further questions, please let me know. RECOMMENDED MOTION: Move to approve the Subordination and Consent Agreement between the Columbia Heights Economic Development Authority (EDA) and BNC National Bank; and fmthennore; to authorize the President and Executive Director to enter into an agreement for the same. 2 SUBORDINATION AND CONSENT AGREEMENT THIS SUBORDINATION AND CONSENT AGREEMENT (this "Agreement") made and entered into as of this _ day of Jnly, 2006, by and between the Colnmbia Heights Economic Development Authority, a political snbdivision nnder the laws ofthe State of Minnesota (the "Authority"), the City of Columbia Heights, a Minnesota mnnicipal corporation ("City") and BNC National Bank, a national banking association ("Lender"). PRELIMINARY RECITALS: A. Huset Park Development Corporation, a Minnesota corporation (the "Redeveloper"), the Authority and the City have entered into a certain Contract for Private Redevelopment dated as of October 25,2004 (together with any amendments; the "Contract") relating to the redevelopment of certain real propelty situated in the County of Anoka, State of Minnesota. B. As defined in the Contract, the "Redevelopment Property" now includes the land legally described in Exhibit A attached hereto (said property is also referred to as the "Premises"). C. Redeveloper is receiving a loan from Lender pnrsuant to a Land Development Loan Agreement by and between Redeveloper and Lender dated April 18, 2005 (the "Loan Agreement"), and evidenced by an Amended and Restated Promissory Note in the amount of Twenty Fonr Million One Hundred ThonsandDollars ($24,100,000.00) (the "Note"), which Note is, among other things, secnred by the following instlUments executed and delivered by Redeveloper to Lender (together with the Loan Agreement, Note and other documents executed in connection therewith referred to as the "Loan Documents"): a. Mortgage and Security Agreement and Fixture Financing Statement dated April 18, 2005, recorded April 27, 2005, as Document No. 482662 in office of the Anoka County Registrar of Titles, and recorded April 27, 2005, as Document No. 1974721 in office of the Anoka County Recorder, which was amended by an Amendment to Mortgage dated April 29, 2005, recorded August 8, 2005 as Document No. 484002 in office of the Anoka County Registrar of Titles, and recorded Augnst 8, 2005 as Document No. 1977285 in the office of the Anoka County Recorder, a Second Amendment to Mortgage dated May 24, 2005, recorded , 2005 as Document No. in the office of the Anoka County Registrar of Titles, and recorded , 2005 as Document No. in the office of the Anoka County Recordcr and a Third Amendment to Mortgage dated June I, 2005, rccorded , 2005 as Document No. in the office ofthe Anoka County Registrar of Titles, and recorded ,2005 as Document No. in the office of the Anoka County Recorder, securing the Note (as the same may be amended from time to time, the "Mortgage"), encumbering the Premises; b. Collateral Pledge and Security Agreement dated , 2006 by and between Redeveloper and Lender (as the same may be amended from time to time, the "Security Agreement"), granting a security interest to Lender in all of Redeveloper's rights, title and interest in, under and pursuant to the Contract; and c. Uniform Commercial Code Financing Statements filed in the office of the Mill1lesota Secretary of State. D. Lender has required that tlle Authority and the City subordinate their respective rights under the Contraet to the Loan Documents aud the rights of Lender under the Loan Documents and acknowledge and consent to Lender's rights under the Loan Documents. E. The Authority and the City are agreeable to subordinating their respective rights under the Contract to the Loan Documents and the rights of Lender under the Loan Documents and to acknowledge and consent to the other matters referred to herein. NOW, THEREFORE, in consideration of the sum of One and No/lOO Dollars ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, it is agreed as follows: I. The Authority and the City each certify that as ofthe date ofthis Agreement no default exists under the terms of the Contract. 2. Notwithstanding the provisions of the Contract, the Authority and the City subordinate in all respects to the Loan Agreement, Note, Mortgage and the Loan Documents, and the interest of Lender thereunder, and to the liens of the Mortgage, Security Agreement and the Loan Documents, any and all right, title or interest the Authority and the City has, or may hereafter acquire in the Premises, or any insurance proceeds and condenmation awards with respect thereto, and including without limitation any rights of reversion, reentry or forfeiture ofthe Premises, if any, available to the Authority and the City, which are in all respects subordinate to the Mortgage and the Loan Documents and the liens created thereby, notwithstanding the order of recording or any other priority requirements which may othelwise exist. 3. The Authority and the City each acknowledge receipt of copies of the Mortgage, Note, the Loan Agreement, Security Agreement and the Loan Documents and acknowledge that this Agreement, the Mortgage, Note, Security Agreement, the Loan Agreement, the Loan Documents and the loan evidenced thereby are each hereby authorized and approved under the terms of the Contract. -2- 4. Following the occurrence of any event of default under the Loan Agreement, Note, the Mortgage, Security Agreement or the Loan Documents, the Authority and the City hereby consent to the transfer of the Premises and/or Redeveloper's rights under the Contract to Lender. 5. The Authority and the City each acknowledge that under the terms of the Loan Agreement, Lendcr may at its option upon an event of default, complete or cause the completion of the Project (as defined in the Loan Agreement). The Authority and the City agree that if Lender elects to complete or cause the completion of the Minimum Improvements (as defined in the Contract) (and each Phase thereof), upon completion of the Minimum Improvements (and each Phase thereof) the Authority shall issue a Certificate of Completion in recordable form as required by the Contract, notwithstanding any default by Redeveloper under the Contract. Nothing contained in this paragraph shall be deemed to require Lender to complete the Minimum Improvements, nor shall anything in this paragraph be deemed to prevent Lender from commencing foreclosure proceedings or pursuing any other remedy it may have under the Loan Agreement, Note, Security Agreement, the Mortgage or the Loan Documents. 6. If Lender exercises its rights to foreclosc its Mortgage against the Premises, accepts a deed in lieu offoreclosure to the Premises, or exercises its rights under the Security Agreement, the Authority agrees that, subject to the performance of the terms and conditions of the Contract by Lender, or its successors or assigns, Lender shall be entitled to all of the rights and benefits afforded Redeveloper under the Contract as though Lender were the Redeveloper, including without limitation any rights the Redeveloper has to receive Initial Notes and payments under those Initial Notes, proceeds of any Refinancing Notes, proceeds of any Deed or Met Council grants, or any other payments owed by City or Authority to Redeveloper under the Contract. 7. a. The Authority and City each acknowledge that Redeveloper has assigned to Lender all of its right, title and interest in and to all the Initial Notes to be issued under the Contract and proceeds of any Refinancing Notes to be issued under the Contract, all to the extent such interests have not been previously assigned to The Ryland Group, Inc. by the Redeveloper. Upon written instruction from Lender, Initial Notes shall be issued to Lender, Lender shall be the registered owner of such Initial Notes as are issued to Lender, and/or all payments under any Initial Notes shall be made directly to Lender, and proceeds of any Refinancing Notes shall be paid directly to Lender. Notwithstanding the foregoing, the Authority and City shall be fully protected in making payments under any Initial Note, and paying proceeds of any Refinancing Note, to the registered owner thereof. If the Redeveloper and the Lender make inconsistent demands on the Authority or City for payment of any Initial Note or Refinancing Note, or otherwise challenge the appropriate party to which payment is to be made, the Authority shall be entitled to pay the disputed amount to the registered owner ofthc relevant Initial Note, and upon such payment the Authority's obligation with respect to making such payment will be deemed fully satisfied. b. The Authority acknowledges that (i) the aggregate principal amount of the Initial Notes to be issued to Redeveloper is Seven Million Nine Hundred Fifty-Five Thousand Four Hundred Dollars ($7,955,400.00), which amount represents the amount of assistance -3- initially detcrmined by the Authority as required to provide Rcdeveloper a fifteen percent (15%) return on costs as master Redeveloper, all as described in Section 3.8 of the Contract; (ii) the maximum principal amount is subject to increase ( or decrease) as described in Section 3.9 of the Contract if Redeveloper's actual costs are higher or lower than shown in Schedule H of the Contract; (iii) the actual aggregate principal amount of all Initial Notes will depend on the actual Schedule H costs, the timing of development and market value of such development, and the Projected Tax Increment as defined in Section 3.8(b) of the Contract; (iv) no Initial Notes have been issued as of the date of this Agreement; (v) the aggregate principal amount of the Initial Notes may be significantly greater than Seven Million Nine Hundred Fifty-Five Thousand Fonr Hundred Dollars ($7,955,400.00) after adjustments described in the Contract, and (vi) the Authority restates the qualifications made in Section 3.8(g) of111e Contract, applying to Lender as assignee of any rights of Redeveloper under the Contract. 8. The Authority and the City each represent to Lender as follows: a. The making, delivery and performance of this Agreement have been duly authorized by all necessmy action and this Agreement, when executed, shall be the legal, valid and binding obligations of the Authority, enforceable in accordance with its terms; b. The Proj ect is permitted by, and if completed in accordance with the Construction Plans (as defined in the Contract) snbmitted to and approved by the Authority under the Contract, will, to the knowledge ofthe Authority, comply with all applicable zoning ordinances; and c. The making, delivery and performance of the Contractis the legal, valid and binding obligation of the Authority. 9. In the event that there occurs a default under the Mortgage or the Loan Documents, Lender agrees to provide a copy to the Authority of any written default notice given to Rcdeveloper relating to a defanlt under the Mortgage or the other Loan Documents contemporaneously with the delivelY of such written default notice to Redeveloper and Lender agrees to that the Authority shall have the right, but not the obligation, to cure any such default on behalf of Redeveloper within such cure periods as are available to Redeveloper under the Mortgage or the other Loan Documents. In the event there is a default under the Contract, the Authority shall transmit to Lender a copy of any notice of default given by the AutllOrity pursuant to the Contract. 10. All notices, certificates or other communications hcreunder shall be sufficiently given and shall be deemed given when mailed by registered or certified mail, postage prepaid, with proper address as indicated. Lender, the City and the Authority may, by written notice given by each to the others, designate any other address or addresses to which notices, certificates or other communications to them shall be sent when rcquired as contemplated by this Agreement. Until othelwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows: -4- (a) To Lender: BNC National Bank 333 South Seventh Street, Suite 150 Minneapolis, Minnesota 55402 Attn: Brian K. Whitemarsh (b) To the Authority or the City: Columbia Heights Economic Development Authority 590 40th Avenue NOltheast Columbia Heights, Minnesota 55421 Attn: Executive Director / City Manager 11. The Authority and the City and Lender acknowledge and agree that Lender is not a party to the Contract (and by executing this Agreement does not become a party to the Contract); nor does Lender assume any obligation thereunder; that this Agreement contains the entire agreement among the parties with respect to the matters set forth herein; that this Agreement may be amended only in writing signed by all the parties hereto; that this Agreement shall be constmed under the laws of the State of Minnesota; that this Agreement shall be binding upon and inure to the benefit of each of the pmties hereto and their respective successors and assigns; and that this Agreement may be executed in any number of countelparts, each of which shall constitute the same instmment. [Signatures begin on next page] -5- IN WITNESS WHEREOF, the parties hereto have cause this Agreement to be executed as of the date first above written. Columbia Heights Economic Development Authority By: Don Murzyn Jr. Its: Pres i dent By: Walter R. Fehst Its: Executi ve Di rector STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this _ day of ,2006, by and the and ,respectively, of the Colnmbia Heights Economic Development Authority, a public body politic and corporate, on behalf of the Authority. Notary Public [Signature page 1 of 3 to Subordination and Consent Agreement) -6- City of Columbia Heights By: Gary L. Peterson Its: Mayor By: \1alter R. Fehst Its: City Manager STATE OF MINNESOTA) ) ss. COUNTY OF ANOKA ) The foregoing instlUment was acknowledged before me this _ day of ,2006, by and , the Mayor and the City Manager, respectively, of the City of Columbia Heights, a MiImesota municipal corporation, on behalf of the municipal corporation. Notary Public [Signature page 2 of 3 to Subordination and Consent Agreement) -7- BNC National Bank (A National Banking Association) By: Brian K. Whitemarsh Its: Executive Vice President STATE OF MINNESOTA) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of June, 2006, by Brian K. Whitemarsh, the Executive Vice President ofBNC National Bank, a national banking association, on behalf of said banking association. Notary Public TIlis Document was Prepared By, Recording is Requested By and When Recorded Mail To: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Mimlesota 55402 Attn: Grover C. Sayre, III @PFDesktop\;:ODMAlGRPWISE/GWDSTP.GWPOSTP,SWLlBl:344616,3 [Signature page 3 of 3 to Subordination and Consent Agreement} -8- EXHIBIT A TO SUBORDINATION AND CONSENT AGREEMENT Legal Description The Property refened to in this Agreement is situated in the County of Anoka, State of Minnesota, and is legally described as follows: