Agenda - Council - 09/26/2017 - Laserfiche WebLink

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RIDER TO LHIA LOAN DOCUMENTS This RIDER TO LOAN DOCUMENTS is made and entered into this day of , 2017, by and between the CITY OF RAMSEY, a Minnesota municipal corporation ("Lender") and RAMSEY STATION APARTMENTS LIMITED PARTNERSHIP, a Minnesota limited partnership ("Borrower"). For purposes of this Rider, the term "Limited Partner" shall mean Wells Fargo Affordable Housing Community Development Corporation and its successors and/or assigns. WHEREAS, as of the date hereof, Borrower is executing and delivering to Lender certain documents, including without limitation, a Note (LHIA Funds), a Combination Mortgage, Security Agreement and Fixture Financing Statement (LHIA Funds)("the "Mortgage"), a Loan Agreement, and all other documents (the "Loan Documents"), evidencing a loan in the amount of $100,000 (the "Loan") to be made from Lender to Borrower in connection with the development of a low-income housing tax credit apartment complex located in Hennepin County, Minnesota and known as Indian Knoll Manor (the "Project"). WHEREAS, Lender and Borrower desire that the following covenants, terms, and conditions shall be part of and shall modify or supplement each of the Loan Documents, as set forth in this Rider. NOW THEREFORE, in consideration of executing and delivering the Loan Documents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree that the Loan Documents at the time of execution will be amended by the provisions of this Rider as follows: 1. Removal and Replacement of General Partner and Pronertv Manager. Notwithstanding anything to the contrary contained in the Loan Documents, removal, transfer, replacement, or withdrawal in lieu of removal, of Borrower's general partner(s) and property manager for cause in accordance with Borrower's Amended and Restated Agreement of Limited Partnership (as amended from time to time, the "Partnership Agreement") shall not constitute a default under the Loan Documents provided that the Limited Partner delivers prior written notice thereof to Lender and that the substituted general partner or property manager shall be reasonably acceptable to Lender. Upon the removal, transfer, replacement or withdrawal of the general partner, an affiliate of the Limited Partner may serve as the substitute general partner until such time as the Limited Partner and Lender each approve a successor general partner. 2. Assignment of Limited Partner Interest. Notwithstanding anything to the contrary contained in the Loan Documents, the interest of Borrower's Limited Partner shall be freely transferable and any amendment to Borrower's Partnership Agreement to effectuate such transfers shall not require Lender consent. 3. Notice and Cure Rights. Notwithstanding anything to the contrary contained in the Loan Documents, Lender hereby agrees that any cure of any default made or tendered by Borrower's Limited Partner shall be deemed to be a cure by Borrower and shall be accepted or rejected on the same basis as if made or tendered by Borrower. Lender agrees to send courtesy copies of all notices which are sent to Borrower under the terms of the Loan Documents to the Limited Partner at Wells Fargo Affordable Housing Community Development Corporation; MAC D 1053-170; 301 South College Street, 17th Floor, Charlotte, NC 28202-6000; Attention: Director of Asset Management; with a copy to: Winthrop & Weinstine, P.A., 225 South Sixth Street, Suite 3500, Minneapolis, MN 55402, Attn.: John Nolde. 4. Extended Use Agreement. The parties acknowledge that Borrower intends to enter into an extended use agreement with Lender, which constitutes the extended low-income housing commitment described in Section 42(h)(6)(B) of the Internal Revenue Code, as amended (the "Code"). As of the date hereof Code Section 42(h)(6)(E)(ii) does not permit the eviction or termination of tenancy (other than for good cause) of an existing tenant of any low-income unit or any increase in the gross rent with respect to such unit not US.113578590.01