HomeMy WebLinkAbout22-02 - ADMIN Resolution - Economic Development Authority - 2022/01/18EDA Resolution No. 22-02
Resolution approving subordination of mortgage
Whereas, the St. Louis Park Economic Development Authority (the “Authority”)
previously entered into a Settlement Agreement (including a Note) with Mary Jo Rochel (the
“Borrower”) pursuant to which the EDA loaned the Borrower $24,250 related to the purchase of
certain property at 3700 Colorado Avenue South (the “Property”), which Note was secured by a
second mortgage on the Property (the “Mortgage”); and
Whereas, the loan documents have been amended, most recently pursuant to a
Forbearance and Loan Modification Agreement dated as of Sept. 15, 2014 (the “Forbearance
Agreement”), to provide for an extended maturity and payment of the Note and all accrued
interest upon certain conditions (the “Extended Maturity Date”), provided that the terms of the
Note and Mortgage remain in full force and effect except as modified by the Forbearance
Agreement; and
Whereas, pursuant to the Forbearance Agreement, any proposed revisions to the terms of
the original Mortgage and Note require formal approval by the EDA; and
Whereas, the Borrower wishes to refinance the Property and has secured a loan
commitment from Third Federal Savings and Loan Association of Cleveland (the “Lender”), which
Lender requires that the Authority Mortgage be subordinated to the Lender’s loan documents; and
Whereas, the proposed Subordination of Mortgage (the “Subordination”) is substantially
similar to subordinations the Authority has previously approved for similar projects, and does not
modify or adversely affect the Authority’s rights under the Forbearance Agreement or Authority
Mortgage; and
Whereas, the Board of Commissioners of the Authority 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.
Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park
Economic Development Authority as follows:
A. 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 approved
by the President and Executive Director, provided that execution of the Subordination by such
officials shall be conclusive evidence of approval.
B. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Subordination.
C. Authority staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
DocuSign Envelope ID: CA73F1D6-8513-4C63-A383-44C3AAEA382F
EDA Resolution No. 22-02 2
Reviewed for Administration: Adopted by the Economic Development
Authority January 18, 2022
Karen Barton, executive director Margaret Rog, president
Attest:
Melissa Kennedy, secretary
DocuSign Envelope ID: CA73F1D6-8513-4C63-A383-44C3AAEA382F