HomeMy WebLinkAboutResolution No. 2013-019 CITY OF COLUMBIA HEIGHTS
RESOLUTION 2013-19
RESOLUTION TO AGREE TO THE SUBORDINATION OF THE CITY MORTGAGE TO WELLS FARGO FOR
PROPERTY AT 4648 FILLMORE STREET IN THE AMOUNT OF$49,500.00.
RECITALS
WHEREAS, the City is the owner and holder of a mortgage currently encumbering the property
located at 4648 Fillmore Street, dated June 25, 2008 and recorded July 19, 2010 as Anoka
County Registrar of Titles Document No. 502077.010 in the original amount of$4,630.22; and,
WHEREAS, Wells Fargo proposed to be the owner and holder of a Mortgage given by Constance
Fitzgerald, as Mortgagor, currently encumbering the property, if subordination is approved by
the City; and
WHEREAS,Wells Fargo has requested that the City subordinate the City Mortgage to the wells
Fargo; and,
WHEREAS,the City has agreed to subordinate the City Mortgage to the Wells Fargo.
NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights as
follows:
1. The City hereby covenants and agrees that the City Mortgage shall be considered, and in all
respects shall be, subordinate to the Wells Fargo and any extensions or renewals of the Wells
Fargo Mortgage; provided, however,that the amount of this subordination shall not exceed the
amount of indebtedness outstanding under the Wells Fargo of$49,500.00, with interest thereon
as provided in Wells Fargo promissory note,together with all other costs or expenses advanced
pursuant to the terms of Wells Fargo Mortgage or promissory note.
2. The City Council authorizes and directs staff to take all actions and execute any documents
necessary to carry out the intent of this resolution.
Passed this 111h day of February 2013.
Offered by: Diehm
Second By: Williams
Roll Call: All ayes
Mayor Gary L. Peterson
Attest:
"ardt, /Council Secretary
SUBORDINATION AGREEMENT
THIS SUBORDINATION AGREEMENT("Agreement") is entered into on , 2013 by and between the
City of Columbia Heights, a Minnesota municipal corporation ("City'), and Wells Fargo Mortgage, a
National Bank("Wells Fargo").
RECITALS
WHEREAS, Constance Fitzgerald, a single person ("Owner") is the fee owner of that certain real
property in Anoka County, Minnesota, legally described on the attached Exhibit A("Property");
and
WHEREAS,the City is the owner and holder of a mortgage currently encumbering the Property,
dated June 25, 2010 and recorded July 19, 2010 as Anoka County Registrar of Titles Document
No. 502077.010 in the original amount of$4,630.22 (the"City Mortgage"); and
WHEREAS,Wells Fargo is the owner and holder of the proposed mortgage of the refinance; and
WHEREAS, Wells Fargo has requested that the City subordinate the City Mortgage to the Wells
Fargo Mortgage; and
WHEREAS, the City has agreed to subordinate the City Mortgage to the Wells Fargo Mortgage.
NOW,THEREFORE, in consideration of the above recitals the parties agree as follows:
SECTION 1. SUBORDINATION
The City hereby covenants and agrees that the City Mortgage shall be considered, and in all
respects shall be, subordinate to the Wells Fargo Mortgage and any extensions or renewals of
the Wells Fargo Mortgage; provided, however,that the amount of this subordination shall not
exceed the amount of indebtedness outstanding under the Wells Fargo Mortgage of$49,500,
with interest thereon as provided in Wells Fargo's promissory note,together with all other costs
or expenses advanced pursuant to the terms of the Wells Fargo Mortgage or promissory note.
SECTION 2. FURTHER ASSISTANCE
The City covenants and agrees that, if reasonably deemed necessary by a title company or an
attorney for a title company to properly document the subordination by the City contained in
this Agreement,then City shall duly execute and deliver to Wells Fargo and such title company
any instrument, document, conveyance, release or waiver which will more fully and adequately
subordinate the right, title, estate, lien and interest of the City to the right,title, estate, lien or
interest of Wells Fargo.
SECTION 3. MISCELLANEOUS
A. All rights and obligations arising out of this Agreement shall inure to the benefit of and
being binding upon the respective successors and assigns of the parties hereto.
B. This Agreement shall be governed by, construed,and enforced in accordance with the
laws of the State of Minnesota.
C. This Agreement shall remain in full force and effect until all amounts due Wells Fargo
pursuant to the Wells Fargo Mortgage and promissory note have been fully paid and
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satisfied, and thereafter it shall terminate.After said termination,the parties shall
execute such documents or instruments as may be reasonably necessary or required to
remove any cloud on title caused by this Agreement.
D. This Agreement or a memorandum hereof may be recorded in the appropriate office in
Anoka County, Minnesota to protect and give notice of the respective rights of the City
and Wells Fargo hereunder.
[Signature pages follow]
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SIGNATURE PAGE TO SUBORDINATION AGREEMENT
CITY OF COLUMBIA HEIGHTS
IN WITNESS WHEREOF,the parties have caused this Agreement to be executed the year and
day above first written.
City of Columbia Heights,
A Minnesota Corporation
By: Date:
Walt Fehst, City Manager
STATE OF MINNESOTA)
)ss
COUNTY OF )
The foregoing instrument was acknowledged before me this_day of_2013, by
Walt Fehst, City Manager of the City of Columbia Heights, a Minnesota municipal corporation on behalf
of the corporation.
Notary Public
City of Columbia Heights,
A Minnesota Corporation
By: Date:
Gary Peterson, Mayor
STATE OF MINNESOTA)
)ss
COUNTY OF )
The foregoing instrument was acknowledged before me this_day of_2013, by
Gary Peterson, Mayor of the City of Columbia Heights, a Minnesota municipal corporation on behalf of
the corporation.
Notary Public
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SIGNATURE PAGE TO SUBORDINATION AGREEMENT
WELLS FARGO NATIONAL BANK
Wells Fargo
A
By:
Name:
Its: Date:
The foregoing instrument was acknowledged before me this day of 2013, by
the if Wells Fargo a on behalf of the
Corporation.
Notary Public
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