HomeMy WebLinkAbout6.g. Detlefsen Mortgage Collateral ReleaseMarine Bank
RECEIVED
Mr. Steve Jilk
City of Rosemount FEB 25 1988
2875 145th Street West
Rosemount, MN 55068 CLERK'S OFFICE
CITY OF ROSEMOUNT
Re: $600,000 Commercial Development Revenue Note
of 1983 (Detlefsen Properties Medical Building
Project)
Dear Mr. Jilk:
As you know from speaking with our attorney, Brad
Syverson, the borrower on the captioned project has approached
us to request the release of the mortgage securing the Guaranty
of William L. Detlefsen and Dolores G. Detlefsen. We are
inclined to grant the request in that the loan to value ratio
at this time is something less than 70 percent. We are basing
that percentage on an appraisal value of the project at
$810,000, pursuant to an appraisal dated February 17, 1988 by
Wiley Appraisal Incorporated, and an approximate loan balance
of $560,000.
If the City consents to the release of the guaranty
collateral, please indicate the consent by executing where
indicated on the enclosed three execution copies of the
Collateral Release Agreement. Upon execution, please return
two of the execution copies to me.
If you have any questions or comments, please feel free to
give me a call.
Sincerely yours,
cc: Mr. David L. Grannis, III
403 Northwest National Bank
Building South
St. Paul, MN 55075
Main Office • 9633 Lyndale Avenue South • P.O. Box 20126 • Bloomington, Minnesota 55420 • 612/887-6000
Sabsidhary of The Marine Corporation which traces its history in t839.
0"
COLLATERAL RELEASE AGREEMENT Q
THIS AGREEMENT, dated as of the day of
V V
February, 1988, by and among William L. Detlefsen and Dolores
G. Detlefsen, husband and wife (collectively, the "Mortgagor"),
Detlefsen Properties, a Minnesota general partnership (the
"Borrower") and Marine Bank, a Minnesota state banking
corporation, formerly known as Community State Bank of
Bloomington (the "Mortgagee")
Recitals
WHEREAS, the city of Rosemount, Minnesota, a political
subdivision of the State of Minnesota (the "City"), issued to
the Mortgagee, under and pursuant to Minnesota Statutes,
Chapter 474, as amended (the "Act"), its commercial Development
Revenue Note of 1983 (Detlefsen Properties Medical Building
Project)(the "Note"), dated December 29, 1983, in the principal
amount of $600,000, with a final maturity date of May 1, 2004,
and bearing interest and maturing as provided therein; and
WHEREAS, the City loaned the proceeds of the Note to
Detlefsen Properties, a Minnesota general partnership (the
"Borrower") pursuant to a Loan Agreement dated December 29,
1983, between the City and the Borrower (the "Loan Agreement")
for the purpose of financing the construction and installation
of a medical and professional office facility (the "Project")
and the Loan Agreement has been assigned to the Mortgagee by
the City pursuant to a Pledge Agreement of even date executed
by the City in favor of the Mortgagee; and
WHEREAS, the total principal amount of the Note was
disbursed from time to time pursuant to the terms of a
Construction, Loan Agreement dated as of December 29, 1983, by
and between the City, the Borrower and the Mortgagee (the
"Construction Loan Agreement"); and
:WHEREAS, pursuant to the Loan Agreement, the Borrower
has covenanted, among other things, to make loan repayments
sufficient to pay amortized installments of principal and
interest on the Note when due; and
WHEREAS, thq City and the Mortgagee required, as a
condition for, the issuance of the Note by the City and for the
purchase and acceptance of the Note by the Mortgagee, that the
Borrower secure (i) payment of all sums payable under the Note
by the Borrower pursuant to the Loan Agreement and (ii) all of
the Borrower's obligations under the Loan Agreement and the
Construction Loan Agreement by that certain Mortgage, Security
Agreement and Fixture Financing Statement dated as of December
29, 1983 (the "Borrower's Mortgage") and by that certain
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Assignment of Leases and Rents dated December 29 1983 (the
"Assignment")(the Borrower's obligations described in this
paragraph, the Borrower's Mortgage and in the Assignment are
collectively hereinafter referred to as the "Secured
Obligations")'; and
WHEREAS, the Mortgagor, as the only partners in the
Borrower, have executed a Personal Guaranty dated December 29,
1983, in favor of the Mortgagee (the "Guaranty") guaranteeing
performance of the Secured Obligations.
WHEREAS, the City and the Mortgagee have required, as
a condition for the issuance of the Note by the City and for
the purchase and acceptance of the Note by the Mortgagee, that
the Mortgagor secure the Guaranty of the Secured Obligations by
that certain Mortgage (the "Mortgage") dated December 29, 1983
and filed January 16, 1984 as Document Number 644864; and
WHEREAS, the City and the Mortgagee no longer require
the Mortgagors to secure performance of the Guaranty by the
Mortgage.
NOW, THEREFORE, in consideration of the foregoing, and
for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties
hereby enter into the following agreements:
i. The.Mortgagee agrees to release, of record, the
Mortgage.
' 2. Any and all references to the requirement of the
Mortgage in the Note, the Loan Agreement, the Pledge Agreement,
the Construction Loan Agreement, the Borrower's Mortgage, the
Assignment and the Guaranty are hereby deleted.
3. Notwithstanding this Collateral Release Agreement,
the Guaranty shall remain 'n full force and effect.
4. The Guarantors hereby reaffirm all terms and
conditions of the Guaranty, including, without limitation, all
of their duties and obligations under the Guaranty..
Dated the day and year first stated above.
MORTGAGOR
William L. Detlefsen
Dolores G. Detlefsen
(signatures continued on
following Page)
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BORROWER: DETLEFSEN PROPERTIES
By
Its partner
MORTGAGEE: MARINE BANK
By
Its
The undersigned hereby consents to the foregoing.
CITY: CITY OF ROSEMOUNT
By
Its
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