HomeMy WebLinkAbout2017-06CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION NO. 2017-06
RESOLUTION APPROVING SUBORDINATION OF i'
CONNECTION DEFERRED LOAN
PROGRAM
BE IT RESOLVED By the City Council ( "Council ") of the City of Columbia
Heights ( "City ") as follows:
Section 1. Recitals.
1.01. The City has heretofore established a deferred loan program for the
rehabilitation of single - family homes (the "Program "), administered by the Economic
Development Authority of the City (the "Authority "), and has approved certain deferred
loans to individual applicants in connection with the Program.
1.02. Each loan under the Program is secured by a mortgage (the "City
Mortgage "), which is subordinated to the mortgage of the applicant's primary lender (the
"Primary Mortgage ") pursuant to the Authority's Subordination Policy (the "Policy ").
1.03. Jerome A. McAllister and Pauline A. McAllister, husband and wife
(together, the "Applicants "), who received a loan secured by a City Mortgage under the
Program, now wish to refinance their Primary Mortgage, and have requested that the City
subordinate its City Mortgage to the new Primary Mortgage.
1.04. City staff and legal counsel have reviewed Applicant's request and
documentation, have determined that subordination of the City Mortgage to the new
Primary Mortgage complies with the Policy in all respects, and have prepared a
Subordination of Mortgage (the "Subordination "), attached as Exhibit A, for review and
approval by the Council.
1.05. The Council has reviewed the Subordination and finds that the approval
and execution of the Subordination are in the best interest of the City and its residents.
Section 2. City Approval, Other Proceedings.
2.01. The Subordination as presented to the Council is hereby in all respects
approved, subject to modifications that do not alter the substance of the transaction and
that are approved by the Mayor and City Manager, provided that execution of the
Subordination by such officials shall be conclusive evidence of approval.
2.02. The Mayor and City Manager are hereby authorized to execute on behalf
of the City the Subordination.
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2.03. City staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Passed this 9th day of January, 2017
Offered by: Williams
Seconded by: Murzyn, Jr.
Roll Call: All Ayes
�)M Al Ir-
Donna Schmitt, Mayor
Attest:
� 6k& 6ux-�—
Katie Bruno, City Clerk /Council Secretary
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EXHIBIT A
SUBORDINATION OF MORTGAGE
THIS SUBORDINATION made and entered into this 9th day of January, 2017, by the City of
Columbia Heights, a Minnesota municipal corporation (the "Mortgagee ").
RECITALS
A. The Mortgagee is the owner of a Mortgage Deed by Jerome A. McAllister and Pauline A.
McAllister, husband and wife ( "Mortgagor") dated April 6, 2009 and recorded in the Office of the Recorder
of Deeds, Anoka County, Minnesota on August 19, 2010, as document no. 2016962.007 (the "Mortgage ")
relating to certain real property situated in the County of Anoka, State of Minnesota, legally described in
Exhibit A attached hereto (the "Property ").
C. The Mortgagor has applied for a mortgage loan from Wells Fargo Bank, N.A., its
successors and /or assigns (the "Lender "), in a principal amount not to exceed $82,000 (the "Loan "), and the
Lender has indicated that it is unwilling to accept a mortgage on the Property as security for said Loan unless
the Mortgagee shall subordinate its Mortgage to the lien to be created by the Lender's mortgage (the
"Lender's Mortgage ").
NOW, THEREFORE, in consideration of the premises contained herein, the Mortgagee subordinates
in all respects to the Lender, and to the lien of the Lender's Mortgage, any and all right, title or interest the
Mortgagee has, may have or may hereafter acquire in the Property, and agrees that the Mortgage and
Amendment are in all respects subordinate to the Lender's Mortgage and the lien created thereby
notwithstanding the order of recording or any other priority requirements which may otherwise exist.
(Signature page follows)
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Ite:
Property
Lot 12, Block 2, Rearrangement of Block "A ", Columbia Heights Annex to Minneapolis, Anoka County,
Minnesota, except the following two tracts:
1. The East 165 feet thereof,
2. The South 50 feet except the East 165 feet thereof.
Abstract property.
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CITY OF COLUMBIA HEIGHTS
By:
Its Mayor
By:
Its City Manager
STATE OF MINNESOTA )
)SS.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this _ day of , 2017,
by and , the Mayor and City Manager, respectively, of the
City of Columbia Heights, a Minnesota municipal corporation, on behalf of the corporation.
Notary Public
This document drafted by:
KENNEDY & GRAVEN, CHARTERED (MNI)
470 US Bank Plaza
200 South 6 "' Street
Minneapolis, MN 55402
(612) 337 -9300
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