Agenda - Council - 08/08/2017 - Laserfiche WebLink

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LOAN AGREEMENT MK Johnson Properties, LLC LOAN: $100,000.00 TERM LOAN PART 1. PARTIES, DATE, TERM AND PURPOSE 1.1. Parties. The parties to this Agreement (this "Agreement") are as follows: The City of Ramsey, Minnesota, a Minnesota municipal corporation whose business address is 7550 Sunwood Dr. N.W., Ramsey, MN 55303, (hereinafter referred to as "Lender"). Lender administers a loan program to facilitate development and redevelopment. MK Johnson Properties, LLC, a Minnesota limited liability company, whose registered address is 7800 Sunwood Dr. N.W., Ramsey, MN 55303, (the "Borrower"). Michael & Kristen Johnson, whose (the "Personal Guarantor" or "Guarantor"). 1.2. Date of this Agreement. The date of this Agreement is August 2017 and said date is the date of closing on the loan ("the Date of Closing"). 1.3. Term of this Agreement. The term of this Agreement shall be from the date of this Agreement set forth above and continue thereafter until all indebtedness has been paid in full. 1.4. Purpose of this Agreement. Borrower requested credit accommodations from Lender, to which Lender has agreed. Lender has granted to Borrower the following credit accommodations, on the conditions set forth herein. 1.5. Term Loan of One Hundred Thousand Dollars ($100,000.00) (the "Loan") to be used for the purchase of real estate and construction of improvements. The real estate has an Anoka County, Minnesota PID 28-32-25-23-0010, and is to be platted into a 0.85 acre parcel, LOT 1, BLOCK 1, COR STONE BROOK ACADEMY, COUNTY OF ANOKA (the "Property"). PART 2. LOAN TERMS AND REPAYMENT 2.1 Promissory Note. In consideration of the receipt of the ("Loan"), Borrower shall repay to the Lender the Loan pursuant to the terms of the Promissory Note of even date (the "Note"), the form of which is attached hereto as Exhibit A and which terms include the following: interest at a rate of 3.0 % per annum (the "Rate"); Principal and Interest payments of $690.58 per month beginning November 01, 2017 and continuing on the first day of each month thereafter, until October 01, 2032, (the "Loan Maturity Date"). Borrower shall pay the principal of and interest rate then in effect over the term of the Note. Said payments to continue each month thereafter until the Loan Maturity Date on which date the entire remaining principal balance plus accrued interest shall be due and payable in full. PART 3. LOAN DISBURSEMENT OF LOAN PROCEEDS 3.1. Disbursement of Loan Proceeds. The Loan proceeds shall be disbursed to Borrower upon satisfaction 1