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2021-08-17 Recorded Subordination AgreementRETURN TO: Erin Carlson 313 Washington Ave S #1119 Minneapolis, MN 55415 Date: August 16, 2021 Doc. No. A1480447 OFFICE OF THE COUNTY RECORDER WRIGHT COUNTY, MINNESOTA Certified Filed and/or Recorded on August 17, 2021 10:36 AM Fee: $48-00 Tanva West, County Recorder SUBORDINATION AGREEMENT THIS SUBORDINATION AGREEMENT ("Agreement") is entered into by and between the City of Albertville, a statutory city and political subdivision of the State of Minnesota (the "City") and CSM FINANCIAL L.L.C., a Delaware limited liability company ("Lender"). FOR VALUABLE CONSIDERATION and on the terms and conditions of this Agreement, the Lender subordinates its liens on certain real property in Wright County, Minnesota (the "Property"), described as follows: Lot 1, Block 1 and Outlots A. B and C, all said property is located in AVA Addition, according to the plat of record in the office of the Wright County Recorder, County of Wright, Minnesota; such liens are evidenced by the following mortgage executed by Darkenwald Holdings, Ltd., a Minnesota corporation, as mortgagor, to Lender, as mortgagee: A Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement dated August 27, 2012, and filed for record September 13, 2012, as document number A 1213189 in the office of the county recorder of Wright County, Minnesota; to that certain document titled City of Albertville Development Agreement/Conditional Use Agreement AVA Addition dated August 16, 2021 (the "DA"), subsequently filed for record as Document Number 14 8y Ll H 5 in the Office of the Wright County Recorder, subject to the following conditions: 1. In the event that Lender forecloses on the Property or obtains a deed in lieu of foreclosure, the City agrees to forbear from requiring Lender to undertake any of the obligations of the "Developer" set forth in the DA from the time that Lender takes title to the Property until such time as (i) Lender shall transfer title of the Property to any other person or entity; or (ii) Lender commences any improvement on the Property. During the term of the forbearance of this paragraph, no part of the Property shall be considered a buildable lot and the Lender shall not be granted a building permit or otherwise be allowed to improve or further 1 subdivide the Property. Notwithstanding anything to the contrary, in the event Lender transfers title to any part of the Property following a foreclosure or deed in lieu of foreclosure to any other person or entity, including an affiliate or subsidiary of Lender (a "Grantee"), the Grantee shall take title subject to the DA and assume all of the rights and obligations of the Developer described therein and Lender shall have no obligations with regard to the DA. 2. The Lender may request the City lift the forbearance terms described above by signing and recording the Consent and Confirmation to Development Agreement attached hereto as Exhibit A, or the Lender may enter into a new development agreement subject the City's approval. 3. This Agreement may be executed in counterparts, which, taken together, shall constitute one original. 4. This Agreement shall run with the land and shall be binding upon and extend to the representatives, heirs, successors, and assigns of the parties hereto. Whereas, the undersigned agrees to the Subordination Agreement as of the date first written above. CSM FINANCIAL L.L.C., a Delaware limited liability company By: Its: STATE OF MINNESOTA ss. COUNTY OF HENNEPIN_ hugene r Manager . Bowar The foregoing instrument was acknowledged before me this Eugene M. Bowar, the Manager of CSM FINANCI company, on behalf of the company. ' • TRACY PUCHTE tar Public _ Notary Public-Minnesot y My Commission Expires Jan 31, 2025 I(# day of August 2021, by 2 CITY OF ALBERTVILLE. a statutory city and political subdivision of the State of Minnesota STATE OF MINNESOTA ss. COUNTY OF WRIGHT Its Clerk The foregoing instrument was acknowledged before me this 16th day of August 2021, by Jillian Hendrickson as Mayor of the City of Albertville, a statutory city and political subdivision of the State of Minnesota, on behalf of the city and pursuant to the authority of the City Council. MICHAEL C. COURI Notary Public, State of Minnesota My Commission Expires January 31, 2025 STATE OF MINNESOTA ss. COUNTY OF WRIGHT Notary Public The foregoing instrument was acknowledged before me this 16th day of August 2021, by Kris Luedke, as Clerk of the City of Albertville, a statutory city and political subdivision of the State of • d pursuant to the authority of the City Council. Notary Public State of Minnesota My Commission Expires January31, 2025 Notary Public THIS INSTRUMENT WAS DRAFTED BY: Couri & Ruppe, P.L.L.P. P.O. Box 369 St. Michael, MN 55376-0369 (763) 497-1930 3 Exhibit A CONSENT AND CONFIRMATION TO DEVELOPMENT AGREEMENT Pursuant to the terms of that certain Subordination Agreement dated the 16t" day of August 2021 for the real property legally described as Lot I. Block 1 and Outlots A, B and C, all said property is located in AVA Addition, according to the plat of record in the office of the Wright County Recorder, County of Wright, Minnesota; CSM FINANCIAL, L.L.C., a Delaware limited liability company ("Lender"), requests that the City of Albertville lift its forbearance of the Developer's obligations set forth in the City of Albertville Development Agreement/Conditional Use Agreement AVA Addition dated August 16, 2021 (the "DA") and recorded as Document Number in the Office of the County Recorder of Wright County. By signing below, Lender, hereby agrees to terms and conditions of the DA, including without limitation, the obligations of the Developer set forth therein. [remainder of page left blank intentionally —signature to follow] A-1 IN WITNESS WHEREOF, the undersigned have executed this instrument effective this day of 920 CSM FINANCIAL L.L.C., a Delaware limited liability company By: Its: STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN_ ) The foregoing instrument was acknowledged before me this day of , 20 , by , the of CSM FINANCIAL L.L.C., a Delaware limited liability company, on behalf of the company. THIS INSTRUMENT WAS DRAFTED BY: Couri & Ruppe, P.L.L.P. P.O. Box 369 St. Michael, MN 55376-0369 (763) 497-1930 Notary Public A-2