Agenda - Council - 02/10/2015 - Laserfiche WebLink

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Development Agreement or as a consequence of the Project Mortgage holder treating the Development Agreement as subordinate to the Project Mortgage. E. In consideration of F & C Apartments' election to refinance the Project Loan in an amount that results in the prepayment of Loan No. 1, the City, has agreed to amend the Development Agreement to eliminate the City's right to cancel, rescind or terminate the TIF Note as a remedy for an Event of Default under the Development Agreement or as a consequence of the Project Mortgage holder treating the Development Agreement as subordinate to the Project Mortgage, all as set forth in this First Amendment. AGREEMENT 1. Conditions Subsequent. Section 6.6 of the Development Agreement is deleted in its entirety. 2. Subordination of Development Agreement to Project Mortgage and Extension of Time to Cure. Section 11.3 of the Development Agreement is deleted in its entirety and replaced with the following: The City will, upon the request of the holder of a Project Mortgage, execute and record a subordination agreement pursuant to which the City agrees that, upon a default by Developer under a Project Mortgage, the holder of the Project Mortgage may elect, in an instrument to be recorded in the Anoka County land records and delivered to the City before the commencement of proceedings to foreclose the Project Mortgage, to either (1) treat this Development Agreement as being subordinate to the lien of the Project Mortgage such that the foreclosure of the Project Mortgage and the failure of any owner to redeem the Development Property from such foreclosure will extinguish and terminate this Development Agreement (but not the Assessment Agreement or the TIF Note); or (2) to treat this Development Agreement as having priority over the Project Mortgage in which case this Development Agreement will survive the foreclosure of the Project Mortgage and this Development Agreement will be binding upon the holder of the Sheriffs Certificate issued in conjunction with the foreclosure of the Project Mortgage. If the holder of the Project Mortgage fails to notify the City of its election under this Section 11.3 on or before the commencement of foreclosure proceedings, the holder of the Project Mortgage shall be deemed to have elected to treat this Development Agreement as being subordinate to the lien of the Project Mortgage such that the foreclosure of the Project Mortgage and the failure of any owner to redeem the Development Property from such foreclosure will extinguish and terminate this Development Agreement (but not the Assessment Agreement or the TIF Note). The City further agrees that if the holder of the Project Mortgage elects to treat this Development Agreement as having priority over the Project Mortgage, the City will, upon the completion of the foreclosure without redemption by Developer or any junior creditor, amend this Development Agreement to extend the time for the completion of the Minimum Improvements to a date 12 months following the expiration of all applicable redemption periods. 2 6906278v4