88-12 WHITE - CITV CLERK
P�� - FINANCE GITY OF SAINT PAUL Council �_/�
CA' ARV - DEPARTMENT
Bl. E - MAVOR _ Flle NO.
City At�ny/JTH . . �
� , Co cil Resolution ; ; ;:
Presented By � � �
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Re o Commi-ttee: Date
Out of Committee By Date
RESOLUTION APPROVING SUBORDINATION AGREEMENT
MODEL CITIES HEALTH CENTER •
WHEREAS , as a part of the Neighborhood Partnership Program
(NPP) , the City of Saint Paul (City) loaned the sum of $48 ,000 .00
to the Model Cities Health Center , Inc . , (MCHC) for construction of
a new clinic facility; and
WHEREAS , this NPP Loan is secured by a mort;age subordinated
to a first mortga�e in favor of Western State Bank in amount of
$500,000 and a second mortgage in favor of the Housing and
Redevelopment Authority (HRA) in amount of $113 ,500 .00; and
WHEREAS , the new clinic facility experienced a cost overrun
of $30 ,000. 00 which Western State Bank has agreed to fund provided
that such amount would also take priority to the HRA and City
loans and mortgages ; and
WHEREAS , the City Council is willing to further subordinate
?ts loan in accordance with the provisions of the Subordination
�i�reement submitted to and considerea at this meeting; now there-
fore, be it
RESOLVED by the Council of the City of Saint Paul that the
Subordination Agreement by and between the City, MCHC , and �Jestern
State Bank substantially in the form considered at this meeting
with such revisions , if any, as may be approved by the City Attorney,
is hereby approved and the proper City officers are hereby authorized
to execute the same on behalf of the City of Saint Paul .
COUNCILMEN
Yeas DimOnd Nays Requested by De ment of:
Goswitz � In Favor
Long
Rettrnan � Against BY � �
Scheibel �
Sonnen
WilSOn JAN �� �985 Form Approved by City ttor y
Adopted by Council: Date � `Z —/,=�
Certified Ya: e b uncil Se ry BY
gy,
A►pprov ;Nav : a �N — 1 i988 Appro y Mayor for S mi 'on t Council�
B B
pUBUSHE� J A N 1 b 1 y�
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� N°_. 011449
PED - Nei hb4rhood Dev. DEPARTMENT _ - - - - - - -
onn e s CONTACT NAl�
x PHONE
DATE °
ASSIGN NUMBER FOR ROUTING ORDER: (See reverse side.) .
�Department Directox �Mayor (or Assista,nt)
Finaace and Mana ement Services Director o' Cit Clerk '�'Y�°�,
— 8 y `�
Budget Director � ouncilm �e�� l�ilson
�City ettorney Di v i s i on �Hea - Na+tson ;
TOTAL NUMBER OF S�GPIi�TURE PAGES: � (Clip all locations for signature.)
. WHAT ilILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED M�TERIALS? (�urpose/Rationale)
,
Approval to��xecute a Subordinat�on Agreement which will allow Mode1 Cities Health
Center, Inc. (HCIiC) to increase its first mortgage �vith Western St�ate Bank from
$500,�00 to $530,OOA. Said increase will a11ow MCHC to comp1ete its construction
project at 430 North Dale. Because a portipn of this project was f�rnded through the
NPP program, the Council action is necessary.
COST,�BENEFIT. BUDGETABY. AND PERSONNEL IMPACT� ANTICIPATED: NOqE �
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FiNANCING SQIIRCE AND BUDGET ACTiVI�Y NiTMBER C�iABGED OR CREDZTED: None
(Mayor's signature not required if under $10,p00.)
Total Amount of Transgction: Activity Number:
Funding Source: ,
. ATTACHMENTS: (List and number all attactiments.)
1. City `Council Resolution , -
2. Copy of Subordination Agre�ent
ADMINISTRATIVE PROCEDU�ES �
_Yes _No Rules, Regulations, Procedu�es, or Budget Amendment required?
_Yes _No If yss, are they or timetab�e attached?
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�EPARTMSNT REVIEW CITY ATTORNEY REVIEW
_Yes No Council resolution required? � Resolutian required? _Yes _No
TYes No Insurance required? Insurance sufficient? _Yes _No !
Yes !No Insurance attached?
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� TO USE THB GREEN SHEET
F �.,.u�
The GREEN SHEET has three ��$,g¢SES: . .
l. to asstst in routing dac�+e�►fs and in,securing raq�sired signatures;
2. to brief the revieMars of doavments on tne imgacts 'df apgroval;
3. to halp ensure that necessary supporti�sg matarials a�e prepared and, if resquired,�
attached. .
Providing coa�plete information under the iisted headings enables ravis�rer�� to make
decisions on the docwnents and eliminates follow-up contacts that may del�y execution.
.. Belo�► is the g�ef�rred ROUTING for the five most frequent types of documents:
CONTRACTS (astumes sutt�orized budget exists) �
° 1. Outside Agency 4. Mayor
3. Initiating Depart�ent 5. Fiaance Director
3. City Attorney 6. F3narice A�cco�nti�g
Note: If a CONTRACT amo�mt is less than $10,600, the Mayor's �ignature is not required,
if the aepartment director si,gns. � contract raust alvays bs signed by the outside agency
before routing through City offices. �
ADMINISTRATIVE OI�DER (Budget Revision) AD'MI�jISTRATIVE ORDLR (all others)
1. Activity Manager 1. Init�ating Department
2. Department Accountant 2. City Attorney
3. Department Director � 3. Mayor/Assistant
4. Budget Director 4. City Clerk
5. City Clerk
. 6. Chief Accountant, Financa and Management Services
COUNCIL RESOLUTION (Budget Amendment/Grant Acceptance) COUNCIL RESOLQTION (all others)
1. Department Director ' 1. Department Director
2. Budget 1?irector - 2. City Attomey
3. City Attorney 3. Mayor/Assistant
4. Mayor/Assistant 4. City Clerk
5. Chair, 'Pinance, l�igmt. , and Pers. Cte. 5. Citq Council
6. City Clerk
7. City Council
8. Chief Acca�ntant. Finance and Management Services
The COST�BENEFI�. $UDGETARF. AND PERSONNEL IMPACTS heading provides space to explain the
cost/benefit aspects of the decision. Costs and benefits relate both to Gity bu�get
(General Fund and/ar Special Funds) and to broader financ3.al impacts (cost. to users,
homeowners, or other groups affected by the aetion) . The personnel impact is a description
of change or shift of Full-Time Equivalent (FTE) positions. : �,
The ADMINISTRATIVE FROC�D[�t�S section must be completed to indicate whether additional
administrative procedures. including rules, regulations., or resource proposals are
necessary for implementation of an ordinance or resolution. Tf yes, the procedures or. a
timetable for the completion of procedures must be attached.
SUPPORTING MAT�RIALS.. In the A�TACHMEIQTS section, identify all attachments. If the Green
Sheet is well done, no letter of transmittal ne�d be included (unless signing suah a letter
is one of the requested actions).
Note: If an agreement�requires evidence of insu�ance/co-insurance, a Certificate of
� Tnsurance sho�ld be ong o�: .ths atta�hme�ts� et t.ia►e of routing.
Note: Actions which require City Council resolutions include contractusl relationships
with other gover�nmental un�.ts; �collective bargaining contracts; purchase, sale, or lease of
land; issua.nce of bonds by City; emi,nent domain; assump�ion of liability by City, or
granting by �City of indemnification; agreements �rith state or federsl governm�nt under
which they are providing funding; budget amendments.
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SUBORDINATION AGREEMENT .
THIS AGREEMENT, made and entered into as of , 1987,
by and between Model Cities Health Center, Inc. , a Minnesota
non-profit corporation ("Borrower") , Western State Bank of St. Paul,
a Minnesota corporation ("Lender") and the City of Saint Paul, a
municipal corporation under the laws of Minnesota, ("Subordinated
Creditor") .
WITNESSETH:
WHEREAS, Subordinated Creditor is the owner and holder of a
Combination Mortgage and Security Agreement ("Subordinated
Mortgage") dated March 17, 1987, between Borrower, as Mortgagor, and
Subordinated Creditor, as Mortgagee, filed for record on March 17,
1987 in the Office of the County Recorder for Ramsey County,
Minnesota as Document No. 2368218, pertaining to the premises
("Subject Premises") situated in Ramsey County, Minnesota, described
on Exhibit A attached hereto; and
WHEREAS, Uniform Commercial Code Financing Statement
("Subordinated Financing Statement") naming Borrower as debtor and
Subordinated Creditor as secured party was filed in the Office of
the Ramsey County Recorder on March 18, 1987 as UCC No. 87-101183;
and
WHEREAS, Lender is the owner and holder of a Combination
Mortgage, Security Agreement and Fixture Financing Statement dated
March 17, 1987, between Borrower, as Mortgagor, and Lender, as
Mortgagee, filed for record on March 17, 1987 in the Office of the
County Recorder for Ramsey County, Minnesota as Document No.
2368215, pertaining to the Subject Premises which Mortgage has been
amended by Amendment to Combination Mortgage, Security Agreement and
Fixture Financing Statement dated , 1987 and recorded in
the Office of the Ramsey County Recorder on , 1987 as
Document No. , (jointly referred to as "Lender ' s
Mortgage") ; and
WHEREAS, Uniform Commercial Code Financing Statement ( "Lender' s
Financing Statement") naming Borrower as debtor and Lender as
secured party were filed in the Office of the Secretary of State of
Minnesota on March 18, 1987, as File No. 951225 ; and in the Office
of the Ramsey County Recorder on March 18, 1987 as UCC No. 87-101185.
NOW, THEREFORE, in consideration of the foregoing premises and
One Dollar ($1. 00) and other valuable consideration paid by each
party hereto to the other, the parties hereto hereby agree that the
lien of the Subordinated Mortgage and all of the provisions thereof
be and they hereby are subordinated to the lien of the Lender ' s
!�!��*�?�° �c12C� �!! O� rr?? provisiQ!1G t�?er�4r ; 3!Tr! r!1�� tnQ secur;zy
interest of Subordinated Creditor in the property described in the
Subordinated Financing Statement be and it hereby is subordinated to
the security interest of Lender in the property described in the
Lender' s Financing Statement.
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IN WITNESS WHEREOF, each of the parties hereto has caused these
presents to be duly executed as of the day and year first above
written.
SUBORDINATED CREDITOR:
Approved as to Form: CITY OF SAINT PAtTL
sy
Its Mayor
By
Assistant City Attorney Its Director, Department o Planning
and Economic Development
By
Its Director, Department o inance
and Management Services
LErdDER:
�dESTERN STATE BANK OF ST. PAUL
By
ts
BORROWER:
MODEL CITIES HEALTH CENTER, INC .
By
Its
STATE OF P�INNESOTA )
) ss .
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this day
of , I987 , by George Latimer, Mayor of the Citr o
Saint Paul , a municipal corporation of the_State of Minnesota, on
behalf of said City of Saint Paul .
�Totary Public
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STATE OF MINNESOTA )
) ss .
COUNTY OF R.AMSEY )
The foregoing instrument was acknowledged before me this day
of , 1987 , by Ken Johnson, Director of the Department of
Planning an Economic Development of the City of Saint Paul , a municipal
corporation of the State of Minnesota, on behalf of said City of Saint
� Paul .
� Notary Pu ic
STATE OF MINNESOTA ) `
) ss .
)
The foregoing instrument was acknowledged before me this day
of , 1987 , by Eugene Schiller, Director of t e� Department
of Finance an Management Services of the City of Saint Paul , a municipal
corporation of the State of Minnesota, on behalf of said City of Saint
Paul .
, Notary Pu ic
STATE OF MINNESOTA )
) ss .
COUNTY OF )
The foregoing instrument was ackno�aledged before me this
day of , 1987 , by ,
the of Western State Ban o St . Pau , a
Minnesota corporation, on e a of said corporation.
Notary Pu ic
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STATE OF MINNESOTA)
) ss.
COUNTY OF )
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The foregoing instrument was acknowledged before me
this day of % , 1987, by ,
the of Model Cities Health Center, Inc. , a
Minnesota non-profit corporation, on behalf of the said corporation.
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Notary Public
This instrument was drafted by:
PETERSEN, TEWS & SQUIRES '
PROFESSIONAL ASSOCIATION
Suite 600 - Norwest Center
55 East Fifth Street
St. Paul, Minnesota 55101
(612) 291-1611
0337W/111787
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LCGN�
� D1:�CP.IPTIOPi: 1111 tliat part of Lot 3, IIlock 1, Central Village
1ldciition, ly�ing �outherly of tl�e follo���ng clescribe�l
line:
J3egitining at a point at the Piortliwe�C corner. of saicl
Lot 3; tlience �our.h 0 �legrees OG mic�utes 07 �ec�n�ls
West , �3ist�nt 314.02 feet; tlience Tdortli F3� clegrees 22
minutes 07 seconcls �ast, a �iistance of 175.�2 f.eek to
the �o��thwest corner of Ouf_lot B, Central Village
J1cic3ition, znri there ter.minaLing.
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