2018-06-18 TIF between Kalland Avenue Properties & American Heritage National Bank CONSENT OF II'
THE CITY OF ALBERTVILLE, MINNESOTA �
The CITY OF ALBERTVILLE ("City") acknowledges that it has reviewed the
Assignment, Pledge and Security Agreement of Tax Increment Financing ("Assignment")
entered into by and between KALLAND AVENUE PROPERTIES, LLC, a Minnesota limited
liability company ("Borrower"), and AMERIC N HERITAGE NATIONAL BANK, a national
banking association ("Lender") dated June � , 2018, and consents to the endorsement of the
TIF Note (as defined in the Assignment), to the assignment of the Collateral (as defined in the
Assignment), and to Borrower's mortgage of the Property
(as defined in the Development Agreement) to Lender, its successors and/or assigns, and to the
pursuit of all of Lender's remedies in connection therewith. Payments under the Note (as defined
in the Development Agreement) shall continue to be made to Borrower, until Lender gives notice
to City that payments under the Note shall be paid to Lender. Upon receipt of such notice,
payments under the Note shall be made to Lender. All terms used herein not otherwise defined
shall have the meanings set forth in the Assignment and the Loan Documents described therein.
City further covenants, represents and warrants to and agrees with Lender as follows:
1. That it has received good and valuable consideration for the TIF Note and the
Development Agreement.
2. That the unpaid principal balance due on the TIF Note as of the date hereof is $263,300,
and no defaults or events of default exist under the terms of said TIF Note or the
Development Agreement.
3. The Minimum Improvements, as defined in the Development Agreement, have been
fully constructed in accordance with the Development Agreement.
4. The Development Agreement and the TIF Note remain in full force and effect.
5. There are no defenses, setoffs or counterclaims against or with regard to the TIF Note
or the Development Agreement or the indebtedness evidenced thereby. The TIF Note
and the Development Agreement constitute all of the documents entered into by the
undersigned in connection with the TIF Note and have not been amended or modified
except as described in the Assignment and are valid and enforceable obligations of
City in accordance with their terms.
6. Cit hereb a rees that should Lender obtain the a ointment of a receiver or become
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the owner of the Property, or otherwise enfarce its rights under the Loan Documents,
Lender shall not be obligated to perform the terms and conditions of the Development
Agreement; provided, however, that performance of the terms and conditions thereof
shall be a condition to City's payment of tax increment under the TIF Note to Lender
under the terms and provisions hereof.
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7. In addition to providing the Borrower notice of default under the Development
Agreement, the City agrees to provide Lender, its successors and assigns, with copies of
any notice of default given under the Development Agreement and that Lender, its
successors and assigns, shall have the right but not the obligation to cure any such
default on behalf of the Borrower within the time specified in the Development
Agreement, provided that should possession of the Property be necessary in order to
cure such default, such time shall include a reasonable amount of time for Lender to
obtain possession of the Property and to cure such default. Should an Event of Default
occur under the Development Agreement, such that the City has the right to cancel,
terminate or rescind the TIF Note and the Development Agreement or the TIF Note and
Development Agreement are cancelled, terminated or rescinded for any other reason,
the City shall upon request of Lender honor the TIF Note and the Development
Agreement as a direct obligation to Lender, its successors or assigns, for the remaining
unpaid principal balance thereof, provided that Lender has cured the Event of Default
under the Development Agreement except Events of Default resulting from a
bankruptcy filing by the Borrower or foreclosure of the Security Instrument.
8. Provided all other provisions of the Development Agreement which are conditions to
payment under the TIF Note are satisfied, the Development Agreement and the
obligations of the City under the TIF Note shall not be relieved, hindered or restricted
in any manner by reason of the foreclosure of the Security Instrument or any other
remedies which Lender may pursue under the Note or other Loan Documents, '
including the transfer of the Project to or by Lender, its successors and assigns. I,
9. The undersigned understands and agrees that this Consent of the City of Albertville
("Consent") is executed and delivered in order to induce Lender to make the Loan (as
described in the Assignment) and but for this Consent Lender would not make the Loan.
10. Notwithstanding the foregoing paragraphs, nothing herein or in the Assignment shall
limit the City's rights and remedies against the Developer under the Development
Agreement, including the ability of the City to suspend or terminate payments under
the TIF Note.
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IN WITNESS WHEREOF, the undersigned authorized representatives of the City have
executed this Consent of the City of Albertville as of the date and year first written above.
CITY OF ALBERTVILLE, MINNESOTA
By �� �,��
Its Mayor (,q c f��n�
By
Its City inistrat r
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526798v3 MNI AL141-24
STATE OF MINNESOTA ;
}ss
COUNTY OF WRIGHT }
The foregoing instrument was acknowledged before me on this day j� of June, 2018, by
'�� �a�, aJ�./,��t��:,-� and ��t�r�. �S c� , the Mayor and City
Administrator of the CITY OF
ALBERTVILLE, MINNESOTA, a municipal corporation under the laws of the State of
Minnesota, on behalf of the CITY OF ALBERTVILLE, MINNESOTA.
r��� ����
(SEAL) �� �
Notary Public
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Nota p annes
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•':�:M;;:;:,..��M Minnesota
r C01Bf"�10^Exp►ea January 3},1019
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