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Imp. Proj. #513TO: Broadway LaNel /Golfe Holmes, a Minnesota Limited Partnership, (hereinafter referred to as the "Borrower"): The Economic Development Authority in and for the City of New Hope (hereinafter referred to as the "EDA ") hereby approves Borrower's loan request (hereinafter referred to as the "Loan ") for the community center rehabilitation and expansion and street lighting improvement (hereinafter referred to as the "Project "). The proceeds of the Loan are to be used exclusively to successfully complete the Project. This Commitment is subject to the following terms and conditions: 1. Principal Amount of Loan. The amount advanced pursuant to the Loan and Promissory Note evidencing the Loan shall not exceed One Hundred Forty -Two Thousand Five Hundred and 00 /100 Dollars ($142,500.00). 2. Loan Interest Rate. The Loan shall be made as a deferred repayment loan, and therefore there shall be no interest paid on said Loan unless Borrower defaults on any of the terms of this Commitment, the Building Loan /Grant Agreement or the Promissory Note. In the event of default by Borrower, the interest shall be eight per cent per annum computed from the date of default. 3. Repayment of Loan. The Loan shall be immediately due and payable, in accordance with the repayment terms contained in the Promissory Note referred to in Section 4.A, herein, upon the occurrence of any of the following events within a ten (10) year time period from the date hereof. A. If, without the written consent of the EDA, the Property, as more fully described on Exhibit A attached hereto and made a part hereof, ceases to be used as a "for profit" apartment complex with community center for benefit of the complex residents and public per the License Agreement and strip shopping center upon which the street lighting improvements are intended to be made. B. If, without the written consent of the EDA, which consent will not be unreasonably withheld, Borrower voluntarily sells, transfers, or otherwise conveys, in any way or manner, its fee interest in the Real Property unless Buyer accepts all of herein terms and conditions, will be bound by same, and the EDA consents to the conveyance. C. If any Event of Default occurs under the Promissory Note, Building Loan/Grant Agreement, or License Agreement referred to in Sections 4.A-C herein. If none of the events specified in this Section 3 occurs within ten (10) years from the date the Loan is closed, then the Loan will no longer need to be repaid, and will be extinguished and FA canceled and the Promissory Note shall be deemed paid in full and returned to Borrower. 4. Loan Closing. As a condition precedent to the disbursement of the Loan, each of the following shall be delivered to the EDA in form and substance satisfactory to the EDA: A. A fully executed Promissory Note (hereinafter referred to as the "Note"), in substantially the same form as the document attached hereto as Exhibit A. B. A fully executed Building Loan/Grant Agreement (hereinafter referred to as the "Building Loan/Grant Agreement"), in substantially the same form as the document attached hereto as Exhibit B, which controls the disbursement of the proceeds of the Loan. C. A fully executed License Agreement attached hereto as Exhibit C, which grants the City of New Hope and the EDA a non-exclusive right to use Borrower's community center for public meetings and civic functions, as provided in the License Agreement. D. Evidence of Title establishing Borrower has fee title to the property in a form satisfactory to the EDA. E. Evidence that Borrower has obtained fire and extended coverage insurance, in an amount equal to the lesser of the amount of the Loan or the full insurable value of the Project, with the EDA named as loss payee therein. M F. All such other documents, instruments and/or items which the EDA may reasonably require. 5. Financial Requirements. Prior to, or concurrently with, the disbursement by the EDA of any of the proceeds of the Loan, the Borrower shall deliver to Commonwealth Land Title Company as disbursing agent an amount of One Hundred Forty-Two Thousand Five Hundred ($142,500.00), which is the estimated amount of funds it will take to complete the Project over and above the amount of the Loan. The parties may elect to fund on a pro-rata basis as needed. 6. Changes in Conditions. Any substantial changes in the plans and specifications upon which this Loan/Grant Commitment is based which shall occur after the date hereof must have the written approval of the EDA prior to the closing of the Loan, which written approval shall be subject to such conditions as the EDA may deem to be appropriate. 7. Term of Commitment. This Loan/Grant Commitment shall terminate May 1, 1994 unless the closing of the Loan/Grant shall have occurred prior to such date, or unless this Loan/Grant Commitment is renewed or extended by the EDA. Subsequent to the closing of the Loan, the termination date for this Loan/Grant Commitment shall be as provided in the Building Loan/Grant Agreement. 8. Effectiveness of Commitment. This Loan/Grant Commitment shall not become effective unless the accompanying three (3) 4 duplicate copies hereto are returned to the EDA, with acceptance endorsed thereon by the signature of the party or parties indicated below, or their authorized agent, on or before May 1, 1994. 9. Mutual Enforceability of Loan/Grant Commitment. This Loan/Grant Commitment shall be mutually enforceable by either party, and either party hereto may apply to any court, State or Federal, for specific performance of the agreements and requirements contained herein, and for such other relief as may be appropriate, since the injury to the EDA arising from any failure to 'comply with the requirements contained herein would be irreparable and the amount of damage would be difficult to ascertain. 10. Assignment or Transfer of Loan/Grant Commitment. This Loan/Grant Commitment shall not be assigned or transferred without the prior written consent of the EDA. 11. Additional or Special Conditions. This Loan/Grant Commitment is subject to the following or special conditions, which are hereby made a part hereof: Non recourse to all of the partners of Borrower. Dated: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE M- M- 61 Accepted: ADWAY LANEL/GOf LE H6'WJE, A MIN ESOTA LIMInDIPARTNEN , IP s 0 Its c:\wp5l\cnh\broadway.lc A r 7- PROMISSORY NOTE $142,500.00 New Hope,..Minnesota FOR VALUE RECEIVED, the undersigned, Broadway LaNel /Golle Holmes, a Minnesota Limited Partnership, ( "Borrower "), promises to pay to the order of ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE ( "Lender "), at its business address, 4401 Xylon Avenue North, New Hope, Minnesota 55428, or at such other place as may be designated in writing by the holder hereof, the principal sum of up to One Hundred Forty -Two Thousand Five Hundred Dollars ($142,500.00); or so much thereof that is advanced from time to time together with interest thereon at the rate of eight (8 %) percent per annum computed on the unpaid principal balance pursuant to the terms as set out in the Loan /Grant Commitment executed by Borrower simultaneously with the herein Note and made a part hereof. Any and all payments received hereunder shall first be applied to the payment of accrued interest and the balance of each payment shall be applied on the account of principal. This Note may be prepaid in full or in part at any time without penalty. Borrower agrees that any voluntary sale, conveyance, or other transfer of title to the property described in the Building Loan /Grant Agreement and Loan /Grant Commitment (hereinafter Property), or any interest therein except for the License Agreement to the Lender, without the prior written consent of Lender or a subsequent holder of this Note, shall be an Event of Default on 1 this Note, Building Loan /Grant Agreement and Loan /Grant Commitment. Lender's consent will not be unreasonably withheld. For the purpose hereof, and without limiting the generality of the foregoing, the occurrence at any time of any of the following events, without such prior written consent, shall be deemed to be an unpermitted transfer of title to the subject Property and therefore an Event of Default hereunder: (a) any sale, conveyance, assignment or other transfer of all or any part of the legal and /or equitable title to the Property; (b) any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, more than 49% of the interest of Broadway LaNei /Golle Holmes. In the event Borrower's ownership interest in the partnership interest of Broadway LaNel /Golle Holmes is reduced to less than 51 %, the outstanding principal and accrued interest shall be immediately due and payable upon demand by Lender. A transfer by a limited partner of that partner's limited partnership interest shall not be a violation of this provision. The general partners shall be allowed to transfer their interest to family members for estate purposes. Borrower further agrees to make full disclosure to Lender of any sale, conveyance, assignment or transfer of any and all partnership interest of Broadway LaNel /Golle Holmes owned by Borrower. The failure to make said disclosure and /or make the accelerated payment required by this paragraph shall also constitute an Event of Default; (c) any violation of the terms and conditions set out in the Building Loan /Grant Agreement and Loan /Grant Commitment. Any such written consent, or any waiver of 2 an Event of Default, by Lender, or a subsequent holder of this Note, shall not constitute m consent to or waiver of any right, remedy or power accruing to the holder hereof upon any subsequent Event of Default. In the event a court of competent jurisdiction renders a final judgment wherein it is determined that the payments, or any part thereof, provided for in this Note constitute usurious interest for which Borrower has a defense, and any such excess interest has actually been accepted, then such excess shall not be considered interest but shall apply to reduce the principal balance of this Note by the amount of such excess. Upon the occurrence of an Event of Default in the payment of any sum due hereunder or in the performance of any of the terms, covenants or conditions of this Note, the Building Loan/Grant Agreement or Loan/Grant Commitment, then or at any time thereof at the option of the holder hereof, the entire principal balance of this Note and accrued interest thereon shall become due and payable without notice and without demand or presentment. Failure of Lender to exercise such option or any other right to which the holder may be entitled shall not constitute a waiver of the right to exercise said option or any other right in the event of any subsequent Event of Default. If, in the opinion of the holder, it becomes necessary to employ counsel to collect or enforce this Note, Building Loan/Grant Agreement or Loan/Grant Commitment, Borrower agrees to pay, to the extent permitted by law, all costs, charges, disbursements and 3 reasonable attorneys' fees incurred by Lender in collecting or enforcing this Note. The makers and endorsers of this Note severally waive presentment, protest and demand, notice of protest, demand and notice of dishonor and nonpayment of this Note and expressly agree that any extension of time for the payment required by this Note may be made from time to time without in any way affecting the liability of the makers and endorsers hereof and that they shall severally, as well as jointly, be liable for all payments required hereby. Notwithstanding the teCms_ herein, the partner non- recourse provision of the Loan /Grant Comm t`fkent shay apply to this Note. This Note shall be ,`construed in`',ac6ordance with the laws of the State of Minnesota, without giving'` to those provisions of law relating to choice of law. ' x } , BRO W LAN /�OLLE H S, A INN SOT LI ITED P RTNE SHIP r By Its c: \wp51 \cnh \Broadway.PN 4 THIS AGREEMENT is made and entered into on V 1991, by and between Broadway LaNel/Golle Holmes, a Minnesota Limited Partnership (hereinafter referred to as "Borrower"), with its principal place of business located at Suite 601, 4601 Excelsior Blvd., Minneapolis, MN 55416, and the Economic Development Authority in and for the City of New Hope, a Minnesota Municipal Corporation (hereinafter referred to as "Lender"), with its place of business located at 4401 Xylon Avenue North, New Hope, MN 55428. ARTICLE I Definitions Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set out respectively after each (such meanings to be equally applicable to both the singular and plural forms of the terms defined): (a) "Advance" - An advance made or to be made by the Lender to the Borrower pursuant to Article II hereof. (b) "Architect", if any - Lenard Lampert, which will administer the Construction Contract Documents. (c) "Borrower" - Broadway LaNel/Golle Holmes. (d) "Compl et ion Date" - December 31, 1994 (provided that if the Lender shall extend such date in writing, then the I Completion Date shall be such later date), being the date of required completion of the Project, subject, however, to force majeure in which case Lender consent to extend shall not be required. (e) "Contractor" - Any person who shall be engaged to work on or to furnish materials and supplies for, the Project, if applicable, a general contractor. M "Construction Contract Documents" - The document or documents, including but not limited to any construction plans and specifications, which, together with the exhibits thereto, collectively form the contract between the Borrower and Contractor or Contractors concerning construction and/or rehabilitation of the Project. (9) "Disbursing Agent" - Commonwealth Land Title Insurance Company. (h) "Disbursing Agreement" - The disbursement agreement by and between Lender, Borrower and Disbursing Agent which controls the disbursement of the loan proceeds, which such document is incorporated herein by reference as if it were attached hereto as a separate exhibit. (i) "Draw Requisition" - The form, substantially in the form of Exhibit B attached hereto, which is to be submitted to the Disbursing Agent when an Advance is requested, and which is referred to in Section 2.02 hereof. 2 ( i ) "Event of Default" - One of the events of default specified in Section 6.01 hereof. (k) "Inspecting Engineer", if any - Bonestroo, Rosene, Anderlik & Associates. ( 1 ) "Lender" - The Economic Development Authority in and for the City of New Hope. (m) "Loan Commitment" - The commitment of the Lender hereunder to make loan to the Borrower in an aggregate principal amount of up to and including One Hundred Forty-Two Thousand Five Hundred Dollars ($142,500.00), which such document is incorporated herein by reference as if it were attached hereto as a separate exhibit. (n) "Commitment Termination Date" - The completion date or the date of the termination of the Loan Commitment pursuant to Section 6.02 hereof, whichever date occurs earlier. (o) "Loan" - A loan/grant of monies from Lender to Borrower in an amount not to exceed One Hundred Forty-Two Thousand Five Hundred Dollars ($142,500.00). (p) "Note" - The Promissory Note evidencing the Advances to be made hereunder for the Loan which such document is incorporated herein by reference as if it were attached hereto as a separate exhibit. (q) "Project" - The buildings and structures to which the improvements described in the Construction Contract Documents are to be made. 3 (r) "Real Estate" - The land upon which the Project is located, described on Exhibit A attached hereto. ARTICLE II Commitment to Make Advances Terms of Advances and Draw Requests Section 2.01 The Advances. The Lender agrees, on the terms and subject to the conditions hereinafter set forth, to approve Advances from the Loan/Grant to the Borrower from time to time during the period from the date hereof to the Commitment Termination Date in an aggregate principal amount of up to and including One Hundred Forty-Two Thousand Five Hundred Dollars ($142,500.00). The obligation, if required, of the Borrower to repay the Advances from the Loan shall be evidenced by the Note and Loan/Grant Commitment. Section 2.02 Draw Requisitions® Whenever the Borrower desires to borrow hereunder, which shall be no more often than monthly, the Borrower shall submit to the Disbursing Agent and Lender a Draw Requisition, duly executed on behalf of the Borrower, setting- forth the information requested therein. Each draw requisition shall be certified as true and accurate by Borrower's construction control manager relative to the percentage of work completed on which payment is requested. Each Draw Requisition with respect to construction items shall be limited to amounts Cl equal to (i ) the total value of the work by percentage of completion as approved by Borrower and Lender, plus ( i i ) the value of materials and equipment not incorporated in the Project, but delivered and suitably stored on or off the Project site in a manner acceptable to Lender, less (iii) five percent (5%), and less prior Advances. Notwithstanding anything herein to the contrary, no Advances for materials stored on or off the Project site will be made by Lender unless Borrower shall advise Lender of its intention to so store materials prior to their delivery. It is specifically agreed that the propriety of Advances for materials stored on or off the Project site shall be determined in the Lender's sole discretion. At the time of submission of each Draw Requisition, other than the final Draw Requisition, the Borrower shall submit to the Lender and Disbursing Agent the following: (a) A written lien waiver from each Contractor for work done and materials supplied by it in accordance with the terms of the Disbursement Agreement. (b) Such other supporting evidence as may be requested by the Lender or the Disbursing Agent to substantiate all payments which are to be made out of the relevant Draw Requisition and/or to substantiate all payments then made with respect to the Project. (c) A written lien waiver from each Contractor for all 0 work done and all materials furnished by it for the Project. (d) Such other supporting evidence as may be requested by the Lender or the Disbursing Agent to substantiate all payments which are to be made out of the final Draw Requisition and/or to substantiate all payments then made with respect to the Project. (e) Satisfactory evidence that all work requiring inspection by municipal or other governmental authorities having jurisdiction has been duly inspected and approved by such jurisdiction, and that all requisite certificates of occupancy and other approvals have been issued. If on the date an Advance is desired, the Borrower has performed all of its agreements and complied with all requirements therefore to be performed or complied with hereunder, and the Lender approves the relevant Draw Requisition, the Lender shall authorize the Disbursing Agent to pay the amount of the requested Advance, which agent will disburse such funds pursuant to and in accordance with the terms of the Disbursing Agreement. Provided, however, the final Advance to Borrower hereunder shall be payable fifteen (15) days after final completion of the Project and sat i sf act i on of the conditions for final payment as provided in the Construction Contract Documents. Section 2.03 Disbursement of Borrower's Funds. If the Lender shall at any time in good faith determine that the undisbursed 0 amount of the Advances, plus the amount of all other funds committed to the completion of the Project, is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the Project, and shall thereupon send written notice thereof to Borrower specifying the amount required to be deposited by Borrower with the Disbursing Agent to provide sufficient funds to complete the Project, then the Borrower agrees that it will, within ten (10) calendar days of receipt of any such notice, deposit with the Disbursing Agent the amount of funds specified in the Lender's notice. Borrower agrees that any such funds deposited with the Disbursing Agent may be disbursed by the Disbursing Agent before any further disbursement of loan proceeds from the Lender, to pay any and all costs and expenses of any kind in connection with completion of the Project. Section 2.04 Advances Without Receipt of Draw Requisition. Notwithstanding anything herein to the contrary, the Lender shall have the irrevocable right at any time and from time to time, to apply funds which it agrees to advance hereunder to pay any and all of the expenses referred to in Section 7.04 hereof, all without receipt of a Draw Requisition for funds from the Borrower. Conditions of Lending Section 3.01 Condition Precedent to Any Advance. The h obligation of the Lender to approve Advances hereunder (including the initial funding) shall be subject to the condition precedent that it shall have received the following on or before the date of the initial funding hereunder (or in the case of items to be furnished to the Lender on or before the date of a later Advance, on or before the date of the relevant Advance): (a) The Note duly executed by the Borrower. (b) Evidence, in form and substance satisfactory to Lender, that the Disbursing Agent is holding sufficient funds, including the proceeds of the Loan, to complete the Project as contemplated by the Construction Contract Documents. (c) A copy of the fully executed Construction Contract Documents, with such contracts being reasonably acceptable to the Lender. (d) A sworn construction statement duly executed on behalf of the Borrower, in form and substance reasonably satisfactory to the Lender, showing all costs and expenses of any incurred and to be incurred in constructing the Project. (e) Title evidence, in form and substance reasonably satisfactory to the Lender. (f) Evidence reasonably satisfactory to the Lender that all required permits and other permits have been obtained as required. (g) Copies of or binders for the delivery of the policy F -01 of fire and extended coverage and comprehensive general liability insurance required under Section 5.01 (c) hereof, with all such insurance in full force and effect and approved by the Lender. (h) Where applicable, a copy of the partnership agreement or corporate documents of the Borrower. (i) The License Agreement duly executed by Borrower granting the City of New Hope and Lender a non-exclusive right to use Borrower's community center for public meetings and civil functions. (j) Any and all such other documents and agreements which Lender deems reasonably necessary to establish the organization to repay the Loan, and to secure such repayment. (k) Any and all such other documents and agreements which Lender deems reasonably necessary to establish that there is sufficient additional funds, other than the proceeds of the Loan, to pay for the work to be performed under the Construction Contract Documents. Section 3.02 Further Conditions Precedent to Any Advance. The obligation of the Lender to make any Advance hereunder (including the initial binder) shall also be subject to the following conditions precedent: (a) No Event of Default hereunder, or event which would constitute such an Event of Default but for the requirement that 41 notice be given or that a period of grace or time elapse, shall have occurred and be continuing. (b) No determination shall have been made by the Lender that the undisbursed amount of the Advances plus the amount of all other funds committed to the completion of the Project is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the Project, or if such a determination has been made and notice thereof sent to Borrower, Borrower has deposited the necessary funds with the Disbursing Agent in accordance with Section 2.03 hereof. (c) The requirements of the Disbursing Agent set forth in the Disbursing Agreement has been satisfied. Representations and Warranties Section 4.01 Representations and Warranties. The Borrower represents and warrants as follows: (a) The execution of this Agreement, the Note, the License Agreement, Loan\Grant Commitment, and any and all other documents referred to herein are, where applicable, within the powers of Borrower, and do not violate any provision of law. (b) The Note, when duly executed and delivered for value, will constitute the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms. in (c) This Agreement, the Note, and any and all other documents referred to herein are the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms. (d) The Borrower has title to the Real Estate and Project. (e) The Project will be constructed substantially in accordance with the Construction Contract Documents, will be constructed entirely on the Real Estate, and will not encroach upon or overhang any easement right-of-way of land not constituting part of the Real Estate. (f) The Project and the contemplated use thereof, both during construction and at the time of completion, will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record. (g) The Borrower agrees that it will furnish from time to time such satisfactory evidence regarding the representations and warranties described herein as may be required by the Lender. ARTICLE V Additional Covenants of Borrower Section 5.01 Affirmative Covenants. The Borrower agrees that : 11 (a) Borrower will cause construction of the Project to commence, and thereafter will cause the Contractor or Contractors to diligently proceed with construction of the Project according to the Construction Contract Documents, so that the Project can be completed by the Completion Date. Borrower further agrees to provide all funds required over and above the proceeds of the Loan plus the amount of all other funds committed to the completion of the Project if such additional funds should be necessary to complete the construction of the Project. (b) Borrower will require its construction contract manager to comply with the Uniform Municipal Contracting Law in letting contracts and expending public funds on this project. Also Borrower will require the Contractor or Contractors to comply with all rules, regulations, ordinances and laws bearing on its conduct of work on the Project. (c) The Borrower will provide and maintain, or will cause the Contractor or Contractors to provide and maintain, at all times during the process of building the Project, and, from time to time at the request of the Lender, furnish the Lender with proof of payment of premiums on, the following insurance: ( 1 ) Borrower to maintain fire and extended coverage, in an amount equal to the lesser of the amount 12 of the Loan or the full insurable value of the Project, with the Lender named as loss payee, and to include an overlap endorsement or rider covering the risk of any rehabilitation work; (2) Borrower or Contractor(s) to provide comprehensive general liability insurance, including the Lender as a named insured, including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance with limits (i) against bodily injury of not less than $1,000,000, and (ii) against property damage of not less than $250,000 (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (3) Contractor(s) to provide workmen's compensation insurance, with statutory coverage. The policies of insurance required pursuant to Sections 5.01 (c)(1) and (2) hereinabove shall be in form and content satisfactory to the Lender, and shall be placed with financially sound and reputable insurers licensed to transact business in the State of Minnesota. The policy of insurance delivered pursuant to Section 5.01 (c)(1) hereinabove shall contain an agreement of the insurer to give not less than ten (10) days advance written notice to the Lender in the event of cancellation of such policy or change affecting the coverage 13 thereunder. Acceptance of insurance policies delivered pursuant to Sect ions 5.01 (c) ( 1 ) and ( 2 ) herei nabove shat I not bar the Lender from requiring additional insurance which it reasonably deems necessary. (d) Borrower will pay all taxes and assessments levied or assessed against the Real Estate prior to the date on which penalties attach thereto; provided, however, that the Borrower may pay assessments in installments so long as no fine or penalty is added to any installment for the nonpayment thereof. (e) Borrower will permit the Lender, acting by and through its officers, employees and agents, to examine all books, records, contracts, plans, drawings, permits, bills and statements of account pertaining to the Project and to make extracts therefrom and copies thereof. (f) The Borrower will furnish to the Lender as soon as possible and in any event within seven (7) days after the Borrower has obtained knowledge of the occurrence of each Event of Default, or each event which with the giving of notice or lapse of time or both would constitute an Event of Default, which is continuing on the date of such statement, the statement of the Borrower setting forth details of such Event of Default or event and the action which the Borrower proposes to take with respect thereto. W Section 5.02 Negative Covenants. The Borrower agrees that, without the prior written consent of the Lender, it will not agree or consent to any changes in the Construction Contract Documents, to any change orders, or to any of the terms and provisions of the Construction Contract Documents without the consent of Lender which will not be unreasonably withheld. ARTICLE VI Events of Default and Rights and Remedies Section 6.01 Events of Default. The following shall constitute events of default: (a) The Borrower shall fail to duly observe or perform any of the terms, conditions, covenants, or agreements required to be observed or performed by the Borrower hereunder, under the Note, Loan/Grant Commitment, or under the License Agreement. (b) Any representation or warranty made by the Borrower herein, in the Note, or in any financial statement, certificate, report or Draw Requisition furnished pursuant to this Agreement or the Disbursing Agreement, or in order to induce the Lender to approve any Advance hereunder, shall prove to have been untrue in any material respect or materially misleading as of the time such representation or warranty was made. H61 (c) The Borrower shall be in default under or in breach of any of the terms of the Note, and such default or breach shall not be cured or waived by the Lender within the period or periods of grace, if any, applicable thereto. (d) At the time any Advance is requested by the Borrower the title to the Real Estate is not reasonably satisfactory to the Lender, regardless of whether the lien, encumbrance or other question existed at the time of any prior Advance. (e) The Project is materially damaged or destroyed by fire or other casualty and the loss, in the reasonable judgment of the Lender, is not adequately covered by insurance actually collected or in the process of collection. (f) The Borrower shall make an assignment for the benefits of its creditors, or shall be dissolved, or shall commit an act of bankruptcy under the United States Bankruptcy Act (as now or hereafter amended) or shall admit in writing its inability to pay its debts as they become due, or shall file a petition in bankruptcy, or shall become or be adjudicated bankrupt or insolvent, however defined, or shall file a petition seeking any reorganization, dissolution, liquidation, arrangement, composition, readjustment or similar relief under any present or future bankruptcy or insolvency statute, law or regulation or shall file an answer admitting to or not contesting the material allegations of a petition il NO filed against it in such proceedings, or shall not, within thirty (30) days after the filing of such a petition against it, have the same dismissed or vacated, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of a material part of its properties, or shall not, within thirty (30) days after the appointment (without its consent or acquiescence) of a trustee, receiver or liquidator of any material part of its properties, have such appointment vacated. (g) Execution shall have been levied against the Real Estate or any lien creditor's suit to enforce a judgment against the Real Estate or such other property shall have been brought, and (in either case) shall continue unstayed and in effect for a period of more than ten consecutive calendar days. (h) The construction of the Project is abandoned or shall be unreasonably delayed or be discontinued for a period of twenty ( 20 ) consecutive calendar days, in each instance for reasons other than acts of God, fire, storm, strikes, blackouts, labor difficulties, riots, inability to obtain materials, equipment or labor, governmental restrictions or any similar cause over which the Borrower is unable to exercise control. (i) The Project is not substantially completed to the 17 satisfaction of the Lender in accordance with the Construction Contract Documents by the Completion Date, subject to such extensions as may be permitted in accordance with the Construction Contract Documents. (j) When applicable, upon completion of the Project, the Borrower fails to obtain a certificate of occupancy, or such other equivalent document from the municipality in which the Project is located. (k) Lender shall, in good faith, ascertain that the cost of completing the Project in substantial accordance with the Const ruct i on Cont ract Document s i s great er t han t he sum of ( i the then undisbursed portion of the Advances; and (ii) the amount of Borrower's funds on deposit with the Disbursing Agent. Section 6.02 Rights and Remedies. Upon the occurrence of an Event of Default and at any time thereafter until such Event of Default is cured to the satisfaction of the Lender, the Lender may, at its option, exercise any and all of the following rights and remedies, along with any other rights and remedies available to it: (a) The Lender may, by notice in writing to the Borrower, refrain from approving Advances hereunder (but Lender may make Advances after the occurrence of an Event of Default without thereby waiving its rights and remedies hereunder), or terminate the Commitment. M (b) The Lender shall have the right, in addition to any other rights provided by law, to enforce its rights and remedies under the Note, Loan/Grant Commitment and License Agreement. ARTICLE VII Miscellaneous Section 7.01 Inspections. The Borrower, the Architect, if any, and the Construction Manager, shall be responsible for making inspections of the Project during the course of construction, and shall determine to their own satisfaction that the work done or materials supplied by the Contractors to whom payment is to be made out of each Advance has been properly done or supplied in accordance with the applicable contracts with such Contractors. If any work done or materials supplied by a Contractor are not satisfactory to Borrower and/or the Architect, if any, or if a Contractor does not comply with the Construction Contract Documents in any respect, the Borrower will immediately notify the Lender in writing of such fact. It is expressly understood and agreed that the Lender and the Inspecting Engineer may conduct such inspections of the Project as either may deem necessary for the protection of the Lender's interest, and that any inspections which may be made of the Project by the Lender or the Inspecting Engineer are made, and all certificates issued by the Inspecting Engineer will be issued, solely for the benefit and protection of the Lender, and that the Borrower will not rely thereon. 001 Section 7.02 Indemnification by Borrower. The Borrower shall bear all loss, expense (including attorney's fees) and damage in connection with, and agrees to indemnify and hold harmless the Lender, its agents, servants and employees from all claims, demands and judgments made or recovered against the Lender, its agents, servants and employees, because of bodily injuries, including death at any time resulting therefrom, and/or because of damages to property of the Lender or others (including loss of use) from any cause whatsoever, arising out of, incidental to, or in connection with the construction of the Project, whether or not due to any act of omission or commission, including negligence of the Borrower or any Contractor or his or their employees, servants or agents, and whether or not due to any act of omission or commission (excluding however, negligence or breach of statutory duty) of the Lender, its employees, servants or agents. The Borrower's liability hereunder shall not be limited to the extent of insurance carried by or provided by the Borrower, or subject to any exclusions from coverage in any insurance policy. The obligation of the Borrower under this Section shall survive the payment of the Loan. Section 7.03 Additional Security Interest. In the event any Advance is to be made for materials then being fabricated or stored, or both, for later use in the completion of the Project, but which are not then stored upon the Real Estate or installed or incorporated into the Project, then such Advance shall be made only 20 after the Borrower has given to the Lender such security instruments and insurance on such materials as the Lender may reasonably request. Section 7.04 Fees. Whether or not any Advance shall be made hereunder, the Borrower agrees to pay all fees of the Disbursing Agent, inspection fees, appraisal fees, survey fees, recording fees, license and permit fees and title insurance and other insurance premiums, and agrees to reimburse the Lender upon demand for all reasonable out-of-pocket expenses actually incurred by the Lender in connection with this Agreement or in connection with the transactions contemplated by this Agreement, including, but not limited to any and all reasonable legal expenses and attorneys' fees sustained by the Lender in the exercise of any right or remedy available to it under this Agreement or otherwise by law or equity. Section 7.05 Addresses for Notices. All notices to be given by either party to the other hereunder shall be in writing and deemed to have been given when delivered personally or when deposited in the United States Mail, registered or certified postage prepaid, addressed as follows: To the Borrower at: Broadway LaNel/Golle Holmes c/o Francis W. Lang Suite 650 4601 Excelsior Blvd. Minneapolis, MN 55416 cc: Stephen Davis 1601 West 22nd Street Minneapolis, MN 55405-2407 21 To the Lender at: Economic Development Authority in and for the City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 or addressed to such party at such other address as such party shall hereafter furnish by notice to the other party. Any notice delivered personally to Borrower shall be delivered to a general partner of Borrower and any notice delivered personally to Lender shall be delivered to an officer of Lender. Section 7.06 Termination of this Agreement. The obligations of Borrower under this Agreement, but not under the Note, Loan /Grant Commitment or License Agreement or any other agreement(s) attached hereto or incorporated herein by reference, shall cease upon Lender's certification that the construction of the Project has been completed in accordance with the Construction Contract Documents. Section 7.07 Time of Essence. Time is of the essence in the performance of this Agreement. Section 7.08 Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns, except that the Borrower may not transfer or assign its rights hereunder without the prior written consent of the Lender. Section 7.09 Waivers. No waiver by the Lender of any default hereunder shall operate as a waiver of any other default or of the M same default on a future occasion. No delay on the part of the Lender in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof or the exercise of any other right or remedy. Section 7.10 The Lender's Remedies Cumulative. The rights and remedies herein specified are cumulative and not exclusive of any rights or remedies which the Lender would otherwise have. Section 7.11 Governing Law and Entire Agreement. This Agreement and the Mortgage issued hereunder and all security therefor shall be governed by the laws of the State of Minnesota. This Agreement contains the entire agreement of the parties on the matters covered herein. No other agreement, statement or promise made by any party or by any employee, officer, or agent of any party that is not in writing and signed by all the parties to this Agreement shall be binding. Notwithstanding this provision, Lender agrees the partner non-recourse provision of the Loan/Grant Commitment is applicable herein. Section 7.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. (THE REMAINING PORTION OF THIS PAGE WAS INTENTIONALLY LEFT BLANK) 23 - IM WITNESS WHEREOF, the parties hereto have executed this ^ Agreement, or caused it to be executed by their duly authorized officers or partners, as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AN[�FOR THECITY OF NEW HOPE Its COUNTY OF HENNEPIN ) ms. ve Director he foregoing was acknowledged before me this A""', - day of " 1984, by Edw. J. Erickson and Daniel J. Donahue, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. Notar STATE OF MINNESOTA } HENNEPIN COUNTY ) Sa. �� CommbwNnExpires Jan. 31 2000 COUNTY OF HENNEPIN ) K The foregoing was acknowledged before me this day of respectively, of Broadway LaNel/Golle Holmes, a Minnesota Limited Partnership, on behalf of said limited partnership. Notary Public By f tb 14:56 FROM STEPHEN J. DAVIS, ESQ. TO LANG NELSON P.62 COMMONWEALTH LAND TITLE INSURANCE COMPANY APRYwKt CMWNoWi p Conve"r File No. C20248 Policy No. 404- 211469 Schedule A-4 -A Par 1: That part of-the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range 21, described as commencing at the Northeast corner of the Northwest Quarter of.said Section 5; thence East along the North line of the Northeast Quarter of said Section 5 a distance of 644.5 feet; thence Southwesterly, deflecting to the right 104 degrees 40 minutes, a distance of 289.6 feet; thence West to the East line of said Northwest Quarter along a line Which intersects the center line of Osseo Road (County Road No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 275.61 feet Southerly along said center line from the North line of said Northwest Quarter, said line being hereinafter referred to as line "A "; thence South along the East line of said Northwest Quarter a distance of 150 feet to the actual point of beginning; thence West parallel with said line "A" a'distance of 200 feet; thence North parallel with the East line of said Northwest Quarter a distance of 150 feet to said line "A "; -thence Westerly along said line "A" a distance of 605.68 feet; thence South at right angles 95 feet; thence East at right angles 31.4 feet; thence South at right'angles.95 feet; thence West to a point on the center line of said Osseo Road distant 475.61 feet Southeasterly along said center line from the North line of said Northwest Quarter; thence Southeasterly along said center line a distance of 354.92 feet; thence East to the West line-of Registered Land Survey No. 326, Files of the Registrar of Titles, County of Hennepin, along a line which intersects the East line of said Northwest-Quarter at a'point 783.2 feet South from the Northeast corner of said Northwest Quarter; thence North to the Northwest corner of said Registered'Land Survey No. 326; thence Easterly to a point on the East line of said Northwest Quarter distant 783.2 feet South from the Northeast corner of said.Northwast Quarter; thence North along said East line to the actual point of beginning, according to the Government Survey thereof. Par 2: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range•21, described as commencing at a point on the East line of said Northeast Quarter of the Northwest Quarter distant 783.2 feet South from the Northeast corner of said Northeast Quarter of the Northwest Quarter; thence West.398.6 feet to the point of beginning, along a line 'Which Intersects the center line of Osseo Road (County Road No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 830.53 feet southerly along said center line from the North line of said Northeast Quarter of the Northwest Quarter; thence continuing West along said described line a distance of 330.4 feet; thence South at a right angle 176.5 feet; thence East at a right angle 25.4 feet; thence South at a right angle 80 feet; thence West at a right angle,.to an intersection With the center line of said road; thence Southeasterly along said center line to the South ;Line of said Northeast Quarter of the Northwest Quarter; thence East along said South line to a point thereon 401 feet West from the Southeast corner of said Northeast Quarter of the Northwest Quarter; thence North to the point of beginning, according to the Government Survey thereof. • � r .l FEB -17 -1994 14:57 FROM STEPHEN J. DAVIS, ESQ. TO LANG NELSON P.03 COM MONWEALTH LAM . MlE IkWkANCE COMPANY .. Apt .. ... ' File No. C20248 Policy No. 404 - 211469 Page No. 2 Schedule 4-4 -g (Continued) Together With a nonexclusive easement' for driveway and parking purposes over lands as described in Document No. 16171.57, Files of the Registrar of Titles, as amended by Document No. 1591211, Files of the Registrar of Titles, as determined by Court Order, Document No. 1670320. Together with a nonexclusive easement for walkway and garage purposes over adjoining lands as described in Document No. 1591213, Files of the Registrar of Titles, as determined by Court Order, Document No. 1670320. .t s TOTAL P.03 ro G (0 4� — — — — — — -- — — M -4 0 0 4 0 W 0 W 0 -4 0 0 A W W G) co o -n m > w -a m --i a m w - m 0 0 w r - 3 = � 8 (D m 'a ID 0 � - 0 c 3 0 0 = E 0 3 (D 3 D - 0 (D 0 (D l< 0 C 3 (D m. 0 0 5. :* * 0- co C) o 3 CL so = IL u 0 < t 0 Sv 0 L = ! (D M !L :E I TD C p a . Co SD 0 (D 0 T (D 0 5' rA ::E 9L cc 0 CL (D (A 0 3: 90 T 0 =h 0 m < NO M C c co -q 0 U - > 0 CO 0 0 z 0 o n > > 25 <- z m m m m a M m m cl) > m K 0 0 < 3 (D 3 a- CL (D so (D D G (0 4� — — — — — — -- — — M -4 0 0 4 0 W 0 W 0 -4 0 0 A W W G) co o -n m > w -a m --i a m w - m 0 0 w r - 3 = � 8 (D m 'a ID 0 � - 0 c 3 0 0 = E 0 3 (D 3 D - 0 (D 0 (D l< 0 C 3 (D m. 0 0 5. :* * 0- co C) o 3 CL so = IL u 0 < t 0 Sv 0 L = ! (D M !L :E I TD C p a . Co SD 0 (D 0 T (D 0 5' rA ::E 9L cc 0 CL (D (A 0 3: 90 T 0 =h 0 m < NO M C c co -q 0 U - > 0 CO 0 0 z 0 o n > > 25 <- z m m m m a M m m cl) LICENSE AGREEMENT THIS AGREEMENT is entered into this R-9 day of 199; by and between the City of New Hope, Minnesota, a Minnesota municipal corporation, (hereinafter the "City"), and Broadway LaNel/Golle Holmes, a Minnesota Limited Partnership (hereinafter "Partnership "). WHEREAS, the Partnership is the fee owner of certain real property known as Broadway Village, located at 6046 West Broadway in Hennepin County, Minnesota and legally described in the attached Exhibit A (hereinafter "the Premises"); and WHEREAS, the Premises -,- improved with a community center located in a building with a common address of 6046 West Broadway; Me WHEREAS, the Economic Development Authority in and for the City of New Hope as consideration for the Partnership's execution of this Agreement has made a $142,500.00 no-interest deferred payment loan to the Partnership to assist in the rehabilitation and expansion of the community center; and WHEREAS, the City wishes to use the community center on a non- exclusive basis for public meetings and civic functions mutually agreeable to the parties hereto; and WHEREAS, the City and the Partnership wish to reach an agreement by which the Partnership licenses the City to use the community center on the Premises for public meetings and civic functions. it NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Use of the Premises. The Partnership agrees to license and allow the City to use the community center on the Premises for public meetings and civic functions mutually agreeable to the parties. The City's right to use the community center shall be on an as-needed non-exclusive basis subject to the following conditions: (a) The City may schedule 24 meetings or functions per year but not to exceed 2 monthly. (b) Hours of operation shall be between 8:00 a.m. and 10:00 P.M. (c) The Partnership shall provide the City quarterly with a schedule of dates and times when the community center will be available for City use. (d) The parties contemplate that meetings or functions will be primarily geared toward senior citizen's issues and activities, however, other appropriate groups, meetings or functions will be permitted by the Partnership if proposed by the City. (e) The City shall provide the Partnership with seven (7) days notice, either verbal or written, of its intent to use the community center. Said notice shall include the date and time of the intended use, the approximate number of participants and the nature of the use. 0 (f) The City agrees to return the community center after completion of a meeting, function or event to a condition equivalent to its pre-use condition. (g) The Partnership agrees to permit the EDA to use the property in excess of 24 times annually if the EDA's use request is reasonable, geared toward senior citizens issues and activities and does not interfere with the use of the community center by the residents of Broadway Village or the Partnership. Said determination will be made solely by the Partnership, but its permission will not be unreasonably withheld. 2. Insurance. During the term of this Agreement, the City shall maintain public liability insurance in the amount of $200,000.00 per person, $600,000.00 per occurrence for personal damage, and $100,000.00 for property damage. The City shall provide the Partnership with a Certificate of Insurance listing the Partnership as an insured party on said policy and providing for 10 days written notice to the Partnership in the event of non-renewal or cancellation of the insurance coverage. 3. Indemnification. The City will indemnify the Partnership and its agents and employees against, and hold the Partnership, its agents and employees harmless from, any and all demands, claims, causes of action, fines, penalties, damages (including consequential damages), losses, liabilities, liens, mechanic's 3 liens, judgments and expenses (including, without limitation, attorney's fees and court costs) incurred in connection with or arising from: a. The use or occupancy of the Premises by the City or any person claiming under the City; b. Any acts, omissions or negligence of the City or any person claiming under the City, or the contractors, agents, employees, invitees or visitors of the City or any such person; c. Any breach, violation, or non-performance by the City or any person claiming under the City or the employees, agents, contractors, invitees or visitors of the City, or any such person of any term, covenant, or provision of this Agreement or any law, ordinance, or governmental requirement of any kind; or d. This indemnification shall not apply to any loss, injury or damage proximately caused by or resulting from the negligent acts or omissions of the Partnership, including but not limited to, any injury or damage to the person, property, or business of the City, it employees, agents, contractors, invitees, visitors or any other person entering upon the Premises under the express or implied invitation of the City. 4. Assignment. The City's interest in this Agreement shall not be assigned, mortgaged, or otherwise encumbered or transferred In without the written consent of the Partnership which shall not be unreasonably withheld. 5. Term/Removal . This Agreement shall run for a term of ten years beginning upon the date of this Agreement, and upon the end of initial ten year term, the City may renew this Agreement for one additional ten-year period if the following conditions are met: a. Notice. The City delivers to the Partnership in writing notice of its intent to renew the term of this Agreement by the additional ten year period, which notice must be received by the Partnership prior to the expiration of the then existing Agreement term. b. Default. The City is not in default under any of the terms of this Agreement. 6. Condemnation. In the event of a complete taking of the Premises by eminent domain, this Agreement and any options to renew shall terminate upon the commencement of the condemnation action, and the City shall not be entitled to any part of the condemnation award of damages. Upon the taking of a part of the Premises by eminent domain, this Agreement shall continue for that portion of the Premises not taken as a result of the condemnation and the City shall not be entitled to any part of the condemnation award of damages. In the event of a loss or damage to the community center located on the Premises (the "Facility") by reason of fire or other 5 event insured against by Partnership in its f i r e and extended coverage insurance policy, the parties agree as follows: a. Partnership shall be allowed a reasonable period of time following the loss or damage to adjust the loss with the insurance carrier and receive the proceeds therefrom. b. Within a reasonable time following receipt of said proceeds, Partnership shall either (i) repair or rebuild the Facility to substantially the same condition that existed prior to such occurrence and this License shall continue for the remaining term hereof or (ii) terminate this License in which event Partnership shall pay City, in full satisfaction of the deferred payment loan herein referred to, an amount of money equal to the product obtained by multiplying $142,500.00 by a fraction, the numerator of which is the number of complete calendar months remaining following the date of damage or loss in the initial term of this License and the denominator of which is 120. 7. Defaul If the City is in default under any of the terms of this Agreement and has not cured said default within 30 days after written notice of the existence of the default by the City, this Agreement shall terminate and the City shall forfeit all right and interest in this Agreement to the Partnership and shall return the Promissory Note marked satisfied. Failure of the Partnership to immediately notify the City of a condition of R default does not waive the right of the Partnership to notify the City of said condition of default at a later date and to require curing of the default. Additionally, failure of the Partnership to notify the City of a condition of default shall not in any way reduce the City's liability for the condition of default. Termination of this Agreement shall not waive or release the City f rom any of its obligations under this Agreement prior to termination. 8. Surrender of Premises. Upon the expiration or termination of this Agreement, the City shall quietly yield and surrender the Premises to the Partnership. 9. Addresses. For the purpose of notice, the following shall be addresses for the parties: a. City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 b. Broadway LaNel/Golle Holmes c/o Francis W. Lang 4601 Excelsior Blvd. Minneapolis, MN 55416 cc: Stephen Davis 1601 West 22nd St. Minneapolis, MN 55405-2402 10. The terms and condition of this Agreement shall be non recourse to the partners of Borrower. CITY 0 NEW HOPl� By Its Ma r 7 By Its City Manager STATE OF MINNESOTA COUNTY OF HENNEPIN Donahue, the Mayor and New Hope, a Minnesota municipal corporation. STATE OF MINNESOTA COUNTY OF HENNEPIM ) sa. D�AY LANEL/GOLL KAI TA LIMITED P No Its /w�� � �°�- day of and Daniel J. of the City of behalf of said S. A � acknowledged before me this 1984 by Edw. J. Erickson City Manager, respectively, municipal corporation, on The foregoing was acknowledge , 1894 by ��A the 4 respectively, of Minnesota Limited Partnership, partnership. c:\wp51\cnh\brnadway.la ���� d before me this ~-"~` day of and and Broadway LaNel/Golle Holmes, a on behalf of said limited , 17-1994 14:56 FROM STEPHEN J. DAVISo ESQ. TO LANG NELSON P.02 COMMONV&ALTH LAM TrrLE IWJRANiCE COMPANY AR fivKeGraspWoW0PC=r0rV File No. C20248 Policy No. 404 - 211469 Schedule A-4 -A Pa_. 1: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range 21, described as commencing at the Northeast corner of the Northwest Quarter of.said Section 5; thence East along the North line of the Northeast Quarter of said Section 5 a distance of 644.5 feet; thence Southwesterly, deflecting to the right 104 degrees 40 minutes, a distance of 289.6 feet; thence West to the East line of said Northwest Quarter along a line which intersects the center line of Osseo Road (County Road No. 8) as said canter line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 275.61 feet Southerly along said center line from the North line of said Northwest Quarter, said line being hereinafter referred to as line "A "; thence South along the East line of said Northwest Quarter a distance of 150 feet to the actual point of beginning; thence West parallel with said line "A" a'distance of 200 feet; thence North parallel with the East line of said Northwest Quarter a distance of 150 feet to said line "A "; thence Westerly along said line "A" a distance of 605.68 feet; thence South at right angles 95 feet; thence East at right angles 31.4 feet; thence South at right•angles.95 feet; thence hest to a point on the center line of said Osseo Road distant 475.61 Peet Southeasterly along said center line from the North line of said Northwest Quarter; thence Southeasterly along said center line a distance of 354.92 feet; thence East to the West line of Registered Land Survey No. 326, Files of the Registrar of Titles, County of Hennepin, along a line which intersects the East line of said Northwest-Quarter at a'point 783.2 feet South from the Northeast corner of said Northwest Quarter; thence North to the 'Northwest corner of said Registered•Land Survey No. 326; thence Easterly to a point on the East line of said Northwest Quarter distant 783.2 feet South from the Northeast corner of said.Northwest Quarter; thence North along said East line to the actual point of beginning, according to the Government Survey thereof. Par 2: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range-21, described as commencing at a point on the East line of said Northeast Quarter of the Northwest Quarter distant 783.2 feet South from the Northeast corner of said Northeast Quarter of the Northwest Quarter; thence West-398.6 feet to the point of beginning, along a line which intersects the center line of Osseo Road (County Read No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 830.53 feet southerly along said center line from the North line of said Northeast Quarter of the Northwest Quarter; thence continuing West along said described line a distance of 330.4 feet; thence South at a right angle 176.5 feet; thence East at a right angle 25.4 feet; thence South at a right angle 80 feet; thence West at a right angle,.to an intersection with the center line of said road; thence Southeasterly along said center line to the South line of said Northeast Quarter of the Northwest Quarter; thence East along said South line to a point thereon 401 feet West from the Southeast corner of said Northeast Quarter of the Northwest Quarter; thence North to the point of beginning, according to the Government Survey thereof. t +II •17 -1994 14:57 FROM STEPHEN J. DAVIS, ESQ. TO COMMONWEALTH LAIC TITLE fNA7RANCE COMPANY ' • , A►Pelia►ceG�otwtickYngstorrprn� .. File No. 020246 Policy No. 404 - 211469 Page No. 2 Schedule JJ-4 -® LANG NELSON P.03 (Continued) Together With a nonexclusive easement' for driveway and parking purposes over lands as described in Document No. 1617157, Files of the Registrar of Titles, as amended by Document No. 1591211, Files of the Registrar of Titles, as determined by Court Order, Document No. 1670320. Together with a nonexclusive easement for walkway and garage purposes over adjoining lands as described in Document No. 1591213, Files of the Registrar of Titles, as determined by Court Order, Document No. 1670320. 9 r DISBURSEMENT AGREEMENT THIS AGREEMENT is made and entered into as of the day of , 1993, by and between Broadway LaNel /Golle Holmes, a Minnesota Limited Partnership (the "Borrower "), the New Hope Economic Development Authority (the "Lender "), and Commonwealth Land Title Insurance Company (the "Title Company ") for the following reasons: A. Borrower and Lender have entered into a Loan /Grant Commitment, Promissory Note and Building Loan /Grant Agreement for rehabilitation and expansion of Borrower's community center at its property known as Broadway Village and street l i g h t i n g improvements at the Broadway Village Shopping Center. Both properties are legally described by the Building Loan /Grant Agreement. The Borrower and Lender desire that the Title Company disburse the monies advanced during the construction phases of the community center and street lighting project (collectively the "Project ") to the contractors and materialmen and the Title Company is willing to do so on the terms and subject to the conditions herein set forth; �,s B. The parties hereto contemplate that approximately 4 disbursements will be made from the Capital Contributions of the Borrower and the loan proceeds of Lender and the total disbursements will not exceed the total amount of Two Hundred Eighty -Five Thousand Dollars ($285,000.00) and that such disbursements shall occur no more frequently than once each month. 1 NOW, THEREFORE, in consideration of the covenants and commitments herein contained, the parties agree as follows: 1. All proceeds will be disbursed pursuant to a draw request to the Title Company as provided in Section 2.02 of the Building Loan /Grant Agreement. 2. At the time of the Loan /Grant closing, or shortly thereafter, the Borrower and Lender will each deposit One Hundred Forty -Two Thousand Five Hundred Dollars ($142,500.00) with the Title Company which: (a) shall invest the money in instruments in which the City of New Hope, Minnesota may legally invest in accordance with Minnesota Statutes Section 475.66; (b) shall disburse the funds so deposited in accordance with the terms of this Agreement and the Building Loan /Grant Agreement to pay the costs of the Project on the premises located i n the County of Hennepin, State of Minnesota, and described in the Agreement as approved by the Lender; and (c) shall obtain partial and /or final lien waivers and releases and satisfactions of liens and other encumbrances, if any, pursuant to the Construction Manager's draw request for amounts due and approved by the Lender. 3. Prior to the deposit of funds with the Title Company: (a) the Title Company shall furnish to the Lender a marked-up" Title Binder in the maximum amount of One Hundred Pa Forty -Two Thousand Five Hundred Dollars ($142.,500.00), which policy shall set forth the condition of title to the Premises; and (b) The Borrower shall furnish to the Title Company: (i) a sworn statement of the Borrower disclosing the sources and uses of the Capital Contributions and loan proceeds in connection with the Project. 4. Prior to each request for payment by the Construction Manager, the Borrower shall cause to be delivered to the Title Company and Lender: (a) A copy of the Construction Manager's draw request for disbursement of funds approved by the Lender including: (i) all change orders; (i i ) the amount due to date on 'all subcontracts; and (iii) all payments for project costs made in excess of those set for the construction cost budget for each line item and any payments for project costs made less than those estimated in the construction cost budget for each line item; and (b) Statements, partial or final lien waivers, and affidavits, as required by the construction contracts, supporting waivers and releases of liens, if necessary, in form and content satisfactory to the Title Company. Not later than three (3) business days following receipt of 3 the documents delivered pursuant to sections 4(a) and (b), the Title Company will orally notify the Lender, Borrower and the Construction Manager whether it has received all such required documents. As soon as the Title Company has received such required documents and the Borrower transmits to the Title Company the amount of the requested payment, the Title Company shall disburse the payment in accordance with this section. It is hereby agreed by and between the parties hereto that simultaneously with the disbursement of funds so deposited by the Lender and Borrower for disbursement by the Title Company, the Title Company shall issue to the Borrower its endorsement to the ALTA Title Insurance Policy, which endorsement shall increase the coverage of said policy to the aggregate amount of the funds then on deposit to be disbursed hereunder and any funds previously disbursed. It is understood by and between the parties that the Title Company shall not be required to make any disbursement until all of the foregoing requirements have been satisfied and that when all of the foregoing requirements have been so satisfied the Title Company shall disburse the funds. 5. Disbursements for construction purposes will be made by the Title Company directly to the contractors set forth on the draw request or to the subcontractors and /or materialmen as the Title Company elects. Each disbursement to said subcontractors and /or 4 materialmen is considered to be a separate disbursement and a payment to any subcontractor and /or materialman and shall not obligate the Title Company to make disbursements to any other subcontractor and /or materialman. 6. In no event shall the final disbursement be made until all conditions are satisfied to enable the Title Company to issue a final endorsement to the ALTA Title Insurance Policy. 7. The Title Company will keep and maintain at all times true and correct books and records, in sufficient detail to reflect the payments made by it. The Lender and Borrower may at any reasonable time and from time to time examine all books and records of the Title Company pertaining to the disbursements made by it and make extracts and copies from the books and records examined. 8. The parties covenant and agree with each other as follows: (a) Any capitalized term used in this Disbursement Agreement and not otherwise defined shall have the meaning ascribed to it in the Building Loan /Grant Agreement; (b) In the event that the Title Company discovers a misstatement in any affidavit, statement or certificate furnished pursuant to this Disbursement Agreement, it shall make no further disbursements until such misstatement has been corrected; (c) The functions and duties of the Title Company 61 include only those set forth in this Disbursement Agreement and Building Loan /Grant Agreement and the Title Company is not required to act and shall not act, except in accordance with the terms and conditions of this Disbursement Agreement and Building Loan /Grant Agreement; (d) The Title Company does not insure that the Project will be completed or that when completed the Project will be accordance with the plans and specifications or that sufficient funds will be available for completion; and (e) If at any time during the course of construction the total of the unpaid disclosed cost of construction, as indicated by the Borrower's sworn statements exceeds the amount of undisbursed proceeds as calculated by the Title Company, the Title Company shall not make further disbursements under the terms of this Disbursement Agreement until the Borrower has provided evidence satisfactory to the Title Company that sufficient funds are available to pay for the unpaid disclosed costs of construction. (f) The partner non - recourse provision of the Loan /Grant Commitment shall be applicable herein. 9. This Disbursement Agreement shall be attached to the Building Loan /Grant Agreement and made a part thereof as Exhibit B. IN WITNESS WHEREOF, the Disbursement Agreement has been executed as of the day, month and year first written above. COMMONWEALTH LAND TITLE INSURANCE COMPANY 1 0 Its STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of 199_, by the of Commonwealth Land Title Insurance Company, on behalf of the partnerships. Notary Public BROADWAY LANEL /GOLLE HOLMES, A MINNESOTA LIMITED PARTNERSHIP 2M Its STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) ' The foregoing was acknowledged before me this day of 199_, by- the of Broadway LaNel /Golle Holmes, a Minnesota limited partnership, on behalf "of said limited partnership. VA THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE By Its By Its STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 199_, by Edw. J. Erickson and Daniel J. Donahue, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public c: \wp51 \cnh \broadway.da 14 CORRICK & SONDRALL, P.A. STEVEN A. SONDRALL ATTORNEYS AT LAW LEGAL ASSISTANTS MICHAEL R. LAFLEUR MARTIN P. MALECHA Edinburgh Executive Office Plaza LAVONNE E. KESKE WILLIAM C. STRAIT 8525 Edinbrook Crossing SHARON D. DERBY Suite #203 Brooklyn Park, Minnesota 55443 TELEPHONE (612) 425-5671 FAX (612) 425-5867 March 13, 1995 Valerie Leone City Clerk City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Loan/Grant for Broadway Village Community Center Expansion City Project No. 513 Our File No: 99.11115 Dear Valerie: Enclosed for your file please find the following documents in connection with the above: 1. Copy of Declaration of Covenants as filed with the Registrar of Titles, Hennepin County. The recording information is on the back of the last page. 2. Amendment of Community Center Loan Documents (fully signed original). 3. Second Promissory Note (this is the only signed original we have). Please keep these documents in a safe place, particulary the Promissory Note. Please contact me if you have any questions. Sincerely Martin P. Mal echa s3m Enclosures cc: Daniel J. Donahue, Executive Director Kirk McDonald, Management Asst. Steven A. Sondrall, City Attorney DECLARATION OF COVENANTS This declaration is made this 22A1 day of ,5��i� 1994, by Broadway LaNel /Golle Holmes, a Minnesota Limited Partnership, (hereinafter "the Declarant "). WHEREAS, the Declarant is the fee owner of the following described real estate located in the County of Hennepin, State of Minnesota, (hereinafter "the Property "): See attached Exhibit A, F1T1 WHEREAS, the Declarant is constructing a community center on the Property, and WHEREAS, there exists under the surface of the Property a 48" storm sewer pipe, and WHEREAS, the improvements contemplated for the Property will involve the construction of a bridge or walkway above the surface of the ground over the location of the sewer pipe, and WHEREAS, construction of the improvements will involve footings and foundations in close proximity to the sewer pipe, and WHEREAS, such improvements will cause additional expense if and when the City of New Hope finds it necessary or advisable to repair or maintain the sewer pipe, and WHEREAS, Declarant wishes to proceed with its construction project and the City of New Hope wishes to be protected from additional costs of repair or construction of the sewer pipe due to the improvements contemplated by Declarant. 2. Duration The covenants set forth herein shall run with the land and shall be binding on all persons claiming ownership thereunder for a period of thirty (30) years from the date this Declaration is recorded. Thereafter, the covenant shall be automatically extended for successive periods of ten years. 3. Amendment or Dissolution No amendment or dissolution of this Covenant shall be effective without the written consent of the City. 4. Enforcement In the event the Declarant, its successors or assigns, violates any terms or conditions set forth herein, the City may proceed to enforce this covenant by appropriate legal or equitable Court proceedings and the Declarant, its successors or assigns, agrees to pay all costs of such enforcement, including reasonable attorney's fees, costs and expenses of any kind in connection with the enforcement of these cotenants. IN WITNESS WHEREOKand he Dec ran hereto h s executed this declaration on the day year ind'ca below. is By Its STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me, a Notary Public within and for said County, this z2,✓0 day of h i (y►yll S /`/L' 1994, by and _ the 1,RAJg �9 q -1L_ and a Minnesota partnership. PAUL G. BREWER NOTARY PUSUC - MINNESOTA WINONA COUNTY My commiss1w expires 114&863 , respectively, of Broadway LaNel /Golle Holmes, Limited Partnership, on behalf of said limited Notary Public The foregoing Declaration of Covenants is hereby accepted as of the date hereof. CITY OF NEW HOPE, MINNESOTA 0 STATE OF MINNESOTA COUNTY OF HENNEPIN -The foregoing was Donahue, the Mayor an New Hope, a Minnesota municipal corporation. ss. } ack9�+1 edged before me this _ 199x, by Edw. J. Erickson City Manager, respectively, municipal corporation, on day of and Daniel J. of the City of behalf of said Notary Public x Is S STEVEN A. SONDRALL NOTARY PUBLIC INNESOTA HENNEPIN COUNTY My Commission Expires Jan. 31, 2000 W x THIS INSTRUMENT DRAFTED BY: CORRICK & SONDRALL, P.A. 8525 Edinbrook Crossing, #203 Brooklyn Park, MN 55443 (612) 425-5671 c:\ w p51 \cnh\broad way. dec Schedule 1-4 -A Par 1: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range 21, described as commencing at the Northeast corner of the Northwest Quarter of—said Section 5; thence East along the North line of the Northeast Quarter of said Section 5 a distance of 644.5 feet; thence Southwesterly, deflecting to the right 104 degrees 40 minutes, a distance of 289.8 feet; thence West to the East line of said Northwest Quarter along a line Which intersects the center line of Osseo Road (County Road No. 8) as said canter line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 275.61 feet Southerly along said center line from the North line of said Northwest Quarter, said line being hereinafter referred to as line "A "; thence South along the East line bf said Northwest Quarter a distance of 150 feet to the actual point of beginning; thence West parallel with said line "A" a distance of 200 feet; thence North parallel with the East line of said Northwest Quarter a distance of 150 feet to said line "A "; -thence Westerly along said line "A" a distance of 605.68 feet; thence South at right angles 95 feet; thence East at right angles 31.4 feet; thence South at right angles .95 feet; thence West to a point on the center line of said Osseo Road distant 475.61 feet Southeasterly along said center line from the North line of said Northwest Quarter; thence Southeasterly along said center line a distance of 354.92 feet; thence East to the West line of Registered Land Survey No. 326, Files of the Registrar of Titles, County of Hennepin, along a line wThieb intersects the East line of said Northwest Quarter at a'point 783.2 feet South from the Northeast corner of said Northwest Quarter; thence North to the Northwest corner of said Registered Land Survey No. 326; thence Easterly to a point on the East line of said Northwest Quarter distant 783.2 feet South from the Northeast corner of said .Northwest Quarter; thence North along said East line to the actual point of beginning, according to the Government Survey thereof. Par 21 That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range -21, described as commencing at a point on the East line of said Northeast Quarter of the Northwest Quarter distant 783.2 feet South from the Northeast corner of said Northeast Quarter of the Northwest Quarter; thence West .398.6 feet to the point of beginning, along a line which intersects the center line of Osseo Road (County Road No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 830.53 feet southerly along said center line from the North line of said Northeast Quarter of the Northwest Quarter; thence continuing West along saifl described line a distance of 330.4 feet; thence South at a right angle 176.5 feet; thence East at a right angle 25.4 feet; thence South at a right angle 80 feet; thence West at a right angle, to an intersection with the center line of said road; thence Southeasterly along said center line to the South line of said Northeast Quarter of the Northwest Quarter; thence East along said South line to a point thereon 401 feet West from the Southeast corner of sald Northeast Quarter of the Northwest Quarter; thence North to the point of e beginning, according to the Government Survey thereof. .l -CONTINUED- Exhibit A � Sch @dale (Continued) Together With a nonexclusive easement'for driveway and p ].ands as described in Document Ito. 16971 7, Files of tht Registrar�fes over amended by Document So. 1591219, Files of the Regiatr�r of Titles iiles, ' by Court Order, Document Ito. 16 ?0320. ' � det ed Together with a nonexclusive easement for aallar adsoining 'lands as described in Document Ito. 1549213, F�e of Titles, as determined by Court Order, Document Noe 1670320. 0 � j . AMENDMENT OF COMMUNITY CENTER LOAN DOCUMENTS THIS AGREEMENT is dated the day of 1994, by and between Broadway LaNel/Golle Holmes, a Minnesota Limited Partnership (the "Borrower "), the New Hope Economic Development Authority (the "Lender"), and Commonwealth Land Title Insurance Company (the "Title Company") (collectively "the Parties") and is entered into for the following reasons: A. Borrower and Lender have previously entered into various agreements relating to a loan of money for the rehabilitation and expansion of Borrower's community center at its property known, as Broadway Village and for street lighting improvements at the Broadway Village Shopping Center (collectively "the Project"), namely that certain Loan/Grant Commitment between Borrower and Lender dated March 14, 1994 for Lender and March 8, 1994 for Borrower (the "Loan/Grant Commitment"), that certain Building Loan/Grant Agreement dated March 8, 1994 between Borrower and Lender (the "Loan/Grant Agreement") , that certain License Agreement dated March 8, 1994 between Borrower and Lender (the "License Agreement"), and that certain Disbursement Agreement dated March 8, 1994, between Borrower, Lender and Title Company (the "Disbursement Agreement") (collectively the "Project Documents"). The Project Documents affect property legally described in the attached Exhibit A. B. Due to unforeseen construction circumstances, the Project will cost an additional $28,000.00 to complete, above and beyond the amounts set forth in the Project Documents. Lender and Borrower have agreed to each pay an additional $14,000.00 toward the cost of the Project, above and beyond their initial $142,500.00 commitments as set forth in the Project Documents. C. It is the intent of this Agreement to increase the Loan amount by $14,000.00 to $156,500.00, and to increase the Borrower capital contribution by $14,000.00 to $156,500.00. NOW, THEREFORE, in consideration of the covenants and commitments herein contained, the parties agree as follows: 1. This Amendment shall amend the Project Documents, and any conflicts between the terms of this Amendment and the Project Documents shall be resolved in favor of this Amendment. 2. The principal amount of the Loan, which amount Lender shall deliver to Title Company as disbursing agent shall be increased by $14,000.00 to a total of $156,500.00. 3. The capital contribution of Borrower, which Borrower shall deliver to Title Company as disbursing agent, shall be increased by $14,000.00 to a total of $156,500.00. 4. The total disbursements by Title Company pursuant to the Disbursement Agreement of the combined capital contributions of Borrower and Loan proceeds of Lender, shall not exceed $313,000.00. 5. Borrower and Lender shall not deposit their entire capital contribution and loan amount, respectively, with Title 2 Company at the time of the Loan/Grant closing, but instead shall use the following procedure. Prior to each requested payment a meeting will be held involving a representative of each of Borrower, Lender, and the contractors making the request, to determine whether the work for which payment is requested has in fact been properly completed. After said meeting, Borrower and Lender shall each sign to indicate consent to the payment request, and shall deposit with Title Company their respective one-half share of the approved payment request. 6. All references in the Project Documents to the Promissory Note which refer to that certain Promissory Note dated March 8, 1994 in the amount of $142,500.00 and signed by Borrower in favor of Lender (the "Promissory Note") shall refer to the Promissory Note plus a Second Promissory Note in the amount of $14,000.00 dated -YA-'411-1 1994 and signed by Borrower in favor of Lender (the "Second Note") , a copy of which Second Note is attached hereto and incorporated by reference. All references to the Loan amount of $142,500.00 in any of the Project Documents other than the Promissory Note and Second Note shall read $156,500.00 rather than $142,500.00. 7. The Building Loan/Grant Agreement dated March 8, 1994 shall be amended by the addition to Article Five, Additional Covenants of Borrower, Section 5.01, of the following: (g) If repair or maintenance of the existing 48 inch storm sewer pipe located on the property (the "Pipe") is ever necessary or advisable, Borrower shall pay to the City of 9 New Hope all additional costs associated with maintaining, reconstructing or repairing the Pipe in a conventional construction manner which are incurred because of the existence of any improvements to the Property constructed by Borrower or at Borrower's direction (the "Additional Costs"). The Additional Costs shall be determined by the City Engineer with verification to Borrower, and shall include, but are not limited to, the costs of removing any existing walkway or bridge and constructing sheeting to protect the existing buildings on both sides of the Pipe. Borrower will execute a covenant running with the Property to give permanent effect to this paragraph (g). (h) Prior to commencing construction of any bridge or walkway on the Property, Borrower shall supply the City with plans for any such bridge or walkway in a form acceptable to the City Engineer. 8. Title insurance provided by Title Company to Lender and paid for by Borrower shall not be required. 9. All terms and conditions of the Project Documents other than those modified herein shall remain in full force and effect. 10. The Parties waive any defenses or objections they may have to the enforcement of the rights of other Parties contained in the Contract Documents, which defenses or objections arise from the fact that this Amendment was made. rd COMMONWEALTH LAND TITLE INSURANCE COMPANY/ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN > M C STATE OF MINNESOTA COUNTY OF HENNEPIN ) ss~ ItS Its ~ - The f9regoing was acknowledged f this V7-w1 t d a y of respectively, of Broadway LaNel/GVlle Holmes, o Minnesota limited partnership, on behalf of said limited partnership. 5 Nota'ry Public PM_�L G, BREWER §� W_2" a, NOT WINONA COUNTY my commission expires 11 THE ECONOMIC AUTHORITY IN CITY OF NEW �� �� �� �� STATE OF MINNESOTA ) \ ss. COUNTY OF HENNEPIM ) DEVELOPMENT AND FOR THE HOPE ^� The foregoing acknopledged before me this day of 1984; by Edw. J. Erickson and Daniel J. Donahue, ƒhe President and Executive Director" respectively, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. :"' Notary Public c:\wp51\cnh\broadway.arne STEVEN A. SON kLL NOTARY PUBLIC-MIN (9 HENNEPIN COUNTY MY Commission Expires Jan. 31,2WO 9 Par 1: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range 21, described as commencing at the Northeast corner of the Northwest Quarter of.said Section 5; thence East along the North line of the Northeast Quarter of said Section 5 a distance of 644.5 feet; thence Southwesterly, deflecting to the right 104 degrees 40 minutes, a distance of 289.8 feet; thence West to the East line of said Northwest Quarter along a line which intersects the center line of Osseo Road (County Road No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 275.61 feet Southerly along said center line from the North line of said Northwest Quarter, said line being hereinafter referred to as line "A "; thence South along the East line bf said Northwest Quarter a distance of 150 feet to the actual point of beginning; thence West parallel with said line "A" a distance of 200 feet; thence North parallel with the East line of said Northwest Quarter a distance of 150 feet to said line "A "; thence Westerly along said line "A" a distance of 605.68 feet; thence South at right angles 95 feet; thence East at right angles 31.4 feet; thence South at right angles .95 feet; thence West to a point on the center line of said Osseo Road distant 475.61 feet Southeasterly along said center line from the North line of said Northwest Quarter; thence Southeasterly along said center line a distance of 354.92 feet; thence East to the West line of Registered Land Survey No. 326, Files of the Registrar of Titles, County of Hennepin, along a line which intersects the East line of said Northwest-Quarter at a'point 783.2 feet South from the Northeast corner of said Northwest Quarter; thence North to the Northwest corner of said Registered Land Survey No. 326; thence Easterly to a point on the East line of said Northwest Quarter distant 783.2 feet South from the Northeast corner of said .Northwest Quarter; thence North along said East line to the actual point of beginning, according to the Government Survey thereof. Par 2: That part of the Northeast Quarter of the Northwest Quarter, Section 5, Township 118, Range .21, described as commencing at a point on the East line of said Northeast Quarter of the Northwest Quarter distant 7$3.2 feet South from the Northeast corner of said Northeast Quarter of the Northwest Quarter; thence West .398.6 feet to the point of beginning, along a line which intersects the center line of Osseo Road (County Road No. 8) as said center line is shown in Registered Land Survey No. 21, Files of the Registrar of Titles, County of Hennepin, at a point 830.53 feet southerly along said center line from the North line of said Northeast Quarter of the Northwest Quarter; thence continuing West along said described line a distance of 330.4 feet; thence South at a right angle 176.5 feet; thence East at a right angle 25.4 feet; thence South at a right angle 80 feet; thence West at a right angle,to an intersection with the center line of said road; thence Southeasterly along said center line to the South line of said Northeast Quarter of the Northwest Quarter; thence East along said South line to a point thereon 401 feet West from the Southeast corner of said Northeast Quarter of the Northwest Quarter; thence North to the point of beginning, according to the Government Survey thereof. ,( -CONTINUED- Exhibit A OTIMAIM ' C t OTIMAIM y 7 SECOND PROMISSORY NOTE $14,000.00 New Hope, Minnesota 3k/2- z 1994 FOR VALUE RECEIVED, the undersigned, Broadway LaNel /Golfe Holmes, a Minnesota Limited Partnership, ( "Borrower "), promises to pay to the order of ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE ( "Lender "), at its business address, 4401 Xylon Avenue North, New Hope, Minnesota 55428, or at such other place as may be designated in writing by the holder hereof, the principal sum of up to Fourteen Thousand Dollars ($14,000.00); or so much thereof that is advanced from time to time together with interest thereon at the rate of eight (8 %) percent per annum computed on the unpaid principal balance pursuant to the terms as set out in the Loan /Grant-C Cmmitment executed by Borrower March 8, 1994 and made a part hereof. All references in the herein Note to the Loan /Grant Commitment, the Building Loan /Grant Agreement, and License Agreement shall refer to the same documents as amended by that Amendment of Community Center Loan Documents executed by Borrower simultaneously with the herein Note. Any and all payments received hereunder shall first be applied to the payment of accrued interest and the balance of each payment shall be applied on the account of principal. This Note may be Prepaid in full or in part at any time without penalty. Borrower agrees that any voluntary sale, conveyance, or other 1 transfer of title to the property described in the Building Loan /Grant Agreement and Loan /Grant Commitment (hereinafter Property), or any interest therein except for the License Agreement to the Lender, without the prior written consent of Lender or a subsequent holder of this Note, shall be an Event of Default on this Note, Building Loan /Grant Agreement and Loan /Grant Commitment. Lender's consent will not be unreasonably withheld. For the purpose hereof, and without limiting the generality of the foregoing, the occurrence at any time of any of the following events, without such prior written consent, shall be deemed to be an unpermitted transfer of title to the subject Property and therefore an Event of Default hereunder: (a) any sale, conveyance, assignment or other transfer of all or any part of the legal and /or equitable title to the Property; (b) any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, more than 49% of the interest of Broadway LaNel /Golle Holmes. In the event Borrower's ownership interest in the partnership interest of Broadway LaNel /Golle Holmes is reduced to less than 51 %, the outstanding principal and accrued interest shall be immediately due and payable upon demand by Lender. A transfer by a limited partner of that partner's limited partnership interest shall not be a violation of this provision. The general partners shall be allowed to transfer their interest to family members for estate purposes. Borrower further agrees to make full disclosure N to Lender of any sale, conveyance, assignment or transfer of any and all partnership interest of Broadway LaNel /Golle Holmes owned by Borrower. The failure to make said disclosure and /or make the accelerated payment required by this paragraph shall also constitute an Event of Default; (c) any violation of the terms and conditions set out in the Building Loan /Grant Agreement and Loan /Grant Commitment. Any such written consent, or any waiver of an Event of Default, by Lender, or a subsequent holder of this Note, shall not constitute a consent to or waiver of any right, remedy or power accruing to the holder hereof upon any subsequent Event of Default. In the event a court of competent jurisdiction renders a final judgment wherein it is determined that the payments, or any part thereof, provided for in this Note constitute usurious interest for which Borrower has a defense, and any such excess interest has actually been accepted, then such excess shall not be considered interest but shall apply to reduce the principal balance of this Note by the amount of such excess. Upon the occurrence of an Event of Default in the payment of any sum due hereunder or in the performance of any of the terms, covenants or conditions of this Note, the Building Loan /Grant Agreement or Loan /Grant Commitment, then or at any time thereof at the option of the holder hereof, the entire principal balance of this Note and accrued interest thereon shall become due and payable 3 without notice and without demand or presentment. Failure of Lender to exercise such option or any other right to which the holder may be entitled shall not constitute a waiver of the right to exercise said option or any other right in the event of any subsequent Event of Default. If, in the opinion of the holder, it becomes necessary to employ counsel to collect or enforce this Note, Building Loan /Grant Agreement or Loan /Grant Commitment, Borrower agrees to pay, to the extent permitted by law, all costs, charges, disbursements and reasonable attorneys' fees incurred by Lender in collecting or enforcing this Note. The makers and endorsers of this Note severally waive presentment, protest and demand, notice of protest, demand and notice of dishonor and nonpayment of this Note and expressly agree that any extension of time for the payment required by this Note may be made from t i m e to t i m e without in any way affecting the liability of the makers and endorsers hereof and that they shall severally, as well as jointly, be liable for all payments required hereby. Notwithstanding the terms herein, the partner non - recourse Provision of the Loan /Grant Commitment shall apply to this Note. This Note shall be construed in accordance with the laws of the State of Minnesota, without giving effect to those provisions Of law relating to choice of law. 4 WYi7 r , • � 1 � • �� Its By Its c: \ wp51 \cnh \Broad way. P2 5 u