EDA Resolution 2021-02CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. #2021-02
RESOLUTION APPROVING A SUBORDINATION OF MORTGAGE IN CONNECTION WITH A
PURCHASE AND DEVELOPMENT CONTRACT BETWEEN THE CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY AND UMC REAL ESTATE, LLC
BE IT RESOLVED By the Board of Commissioners ("Board") of the City of Monticello
Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority previously entered into a Purchase and Redevelopment Contract
with UMC Real Estate, LLC (the "Developer"), dated as of February 26, 2020 and recorded in the
office of the Wright County Recorder on April 2, 2020 as Document No. A1422590 and as
subsequently amended (the "Contract"), in connection with the acquisition by the Developer of
certain Authority -owned property (the "Property") and the construction by the Developer of
certain improvements thereon.
1.02. Pursuant to the Contract, the Developer gave the Authority a promissory note in
the amount of $300,000 for a portion of the purchase price of the Property, secured by a
mortgage dated April 1, 2020 and recorded in the office of the Wright County Recorder on April
2, 2020 as Document No. A1422592, as amended (the "Mortgage").
1.03. The Developer proposes to obtain construction financing for the required
improvements to the Property from Associated Bank, National Association (the "Lender"), and
as a condition of such financing, the Lender requires that the Authority subordinate the
Mortgage to the Lender's loan documents securing such construction financing (the "Lender
Documents").
1.04. Authority staff and legal counsel have reviewed a proposed Subordination
Agreement between the Developer, the Lender, and the Authority (the "Subordination"), have
determined that subordination of the Mortgage to the Lender Documents complies with the
terms of the Contract, and recommend approval of the Subordination by the Board.
1.05. The Board 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. Authority Approval; Other Proceedings.
2.01. The Subordination as presented to the Board is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are
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approved by the President and Executive Director, provided that execution of the
Subordination by such officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf
of the Authority the Subordination.
2.03. Authority staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Approved by the Board of Commissioners of the City of Monticello Economic Development
Authority this 19th day of March, 2021.
Presiden�
ATTEST:
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