HomeMy WebLinkAbout2000-10-23 00-400 ORDERItem No. 0040
Date; 10-23-00
Item/Subject: ORDER Authorizing Execution Subordination Agrae0terrt
Responsible Department Legal
The City Council previously authorized a mortgage to Freese/Mam Street Housing Associates, Lp
for assisted living units at the Freese Willing. An extended Iow incmne housing commitment agreement
(bdWmded Use Agreement) was W have been recon ed by the Maine State Housing Authority (MSHA) a[
me Closing before the mortgages, including the City's, were W be recorded. MSHA failed to do this and
hence a subordination agreement Is needed W give the extended use agreement priority. This is required
by IRS regulations for the project W qualify for tax credits.
Depammigait Head
Manager's Comments:
Choy Manager
A6sntlatee lnfonnatpn:
Finance Director
Lepel Approval:
City iciwr
-passage
_ First Reading
_Referral page_oP_
00-400
AsvippW roColNClbr oTObNv 23, 20M
CITY OF BANGOR
(TIRE.) Order, Authorizing the City Manger to Execute Subordination AgreemeM—
Fre mise/Main Street Housing Assor3atesi LP
By Ina CRY Cburw/WMe Ery of&s ..
NOW. TH2R M. it is oetiE B use.
The City Manager is hereby i sdwrised roexecuce a subultlieadon agreement between d a City of
BarM Maine State Hcoung AuHwrity and Meme Coeunuedy Remvestmeln Coeedadon fm Ne
reddened redai Mim in a pdrim of the Frtese Building by Pres sfMein Sued Housing Assaisuus,
t . A copy of said SLboNivdm Agreenent is earthed hereto.
IN CPR COOScn
October 23. 2000 00-40O
Marine to introduce C.O. #00-600
Under Suspension of Mules. Made mm
6 Seconded
Mules Suspended ¶tle. AuktiBMZ ENecution Subordim[ion
nation fo Passage Made and Agreement
Seconded
Passed
Assigned WCM cn.�a
Coundlor
m
Thar Submdimum Agwemeat('Agre t)umr t haw thus_ dayof October, 2000 byaod
between the Maine Sere Homing Amhoaiy, a pubk body, corporate and politic and
monumentality of the Sam of Maine with ano fling address of 353 water Svee, Augma, Maine,
043364633, CMSHA') Maine Community Rtimeeanxnt Corpomdon, a Maine noapeof t
coapmation with a wiling add= of Orford Build"mg, 3+Floor, 183 Middle Spee, Portland, Maine,
04102,('MCRC), wad the City of Baugot, a bodypohdc and w,poare duly organized under the
Ian of the R. of Mame with a mad'maddrms of 73 Hadow Sveer, Bangor, Maim 04 1, (dat
aw
.(a)
WITNESSETH
A Freae/Maio Sneer Homing Avocets, IT, aMawe l®rted pavnenhip sh aplace of
buswas wgockpon Make, (she "Develwerl develoi da 39 -unit midesual wood projeec known
n Freese Citta fm Assiated I3vwg band a )4.94 Maw Sitter, Bmgor, Pmobocm Cowry, M'=,
and more particularly dambed in Exurb¢ A attached hecto and rade a pan based (the'Projea").
B. MIX provided a first pm mortgage loan w the original principal amemr of V75= to
the Developer'to conamcomm weir the Project, whbh bang evidenced by a S475,= Commercial
Term hW a bythe Developerso MCRC deed Febwry 14, 2000 and a Morgage Dead, Security
Agmemem, Fammang Statement and Assgummt ofanes given bathe Devebperto MMC dated
February 14,2000 and wooded in the Penobscot CoumyRagisay of Deeds in Book 7292, Pan 5
(collectively, the aim Mortgage').
C The Crypmvided a worm ban mongaphnn in the original principal amowmr of V12,1M
on the Develo it comecvov.vnt the Pmjen, whicA loan is evideocd by a 5212,136 Promissory
Nw and Agreement by the Developer no rhe City dated February, 14, 2000 and a Mortgage Deed
Siem by the Developer to the Grp dined February 14, 2WJ and raoedd mthe Penobscot County
Registry, of Death; in Book 7292, Page 24 (rollecd a 7,, the "Secod Mortgage).
D. MCRCpaovided a thud lam morpge ban in the original principal annum of $1.140,133 to
the Developer to cmneum took the Fmje which loam evidenced bya SI,1M,133 Commercd
Tam Now by The Develops to MOSCdared February, 14,2000 and a Mong} Deal, Security
Agaeewm, Financing Statement and Assignment of a was given by doe Deveho to MCRC dad
February, 14, 2000 and rewrded in the Penobscot CoumyReg'stry of Deeds in Book 7292, Page 39
(co➢aav ly, the "Ttid Mmgage).
E. MSH%, as the homing credit agmcyfor the Sam of Mame, is alocaing law income homing
arced ocatioef the s' covmcdov wvhda Pmjea (ahemal Rev.Asawnddoa6,w
m alae edondo' Code) tre Devalvaeown e o ries otoo a rendedl Revenue Code M 1986, ss
amended.(theeCadeutedor De&dwe mstmnt iconmtaeaddureptry tborbit MSHAnod
want mord alae ncmtdncesont the
agreement incite npproPriam regimyof deeds prarmmy
nitre limsand erevmbrmca civ Se Prgea
F. On or about December 23, 3998, the Developer entered into an Extended LowTmome
Homing Comm®em AVwl== with MS am connection with the Project (the 'Extended Uu
Agrermmue).However. the ExwncW Use Agreement on nor bem ne d re, date.
G. MCRC and the Caryadma%4ege dor sed to subordinate then xw eve secnriryieumts
m 3e Eawadd Ike Apmaxon m sausfytbe wud'woas for all«aion tithe Credit in acodance
Maine Sew Housing Amhorky
Subordination Agwemem
Page 1 of 5
0 400
with the Code and desire to mar into this Agreement with )SpsA to esmbksb the relative paemy of
thrirtapecteve intesau.
IN CONSIDERATION of the mmul promises mmamed bosom and other good and valuable
omuimretion, the same and sufficiency of which a krebyarkwowledged, )SHA, MMC and the
Gyagres as follows:
I. �rc�. Pmsswmmterctu ofthe Fir Mortpge and the ibid Mmtgage,MGtCmamu
anthe aecution, deliareryandaccording of the Exreaded Us Agreements by the Developer. The Cy
waters m the esmbo, delivvyand recording of the Exuded the Agronomist bytlm Developer
pmsu o, to the sena of the Second Morgage.
2. Subord;,ndon
a.
MCMC baebysubwdivua'ns sccmernataat in any real popery, tracer and
pmondProperty of the Prom; whether now or hereafier effiteug Including the Fier
Mortgage and the Thud Mortgage, to rhe. Extendedthe Agoame s.
b. The City herebysubo .. in owmyimount in any reel property, fuures and
pmoml property of the Project, whemer now or latecomer ansung including the Second
Mortgage, so she Emaded the Aar xmeot.
C.
hbredio vdivg the actual date and unce of dzRw yand recording thereof and the
vioaiss that would mdimadyresult dradrom, and nmwidutadiog any bavkniptcy,
reorgv®tion or refer mohenypmttedmg evolving the pmje4 M( Land the Gy
ague that, m A tire, the Extended Us Agreement shag be smbr in pricamym the Fust
Mortgage. the Second Mortgage and dr¢ Tired Mongage and my other smtruy interest m
the prtryerty of the Poles now or became Snared to MCRC and the Guy.
J.
2. MCRC hereby agree to give LIS L worm ooze of anyddauh under the First
Mortgage and the Ihud Mortgage a the ams fine notice of such default is given o the
DevelodeGuh and shag ssa*r, whirl the smteksthm ww6eht6e [Nov ham yro
arm We dduo RmS' P� dreg elOPer °PP°rm°hY
b. Tbe
to
rmaa notice of
Second Morgag a tbe�s� me �dohu� default eDevel Iertlae
,w
eanlopen which
catice snes be his D. costs de6uh and shell
speothe Men Proud
durectwhulthe Developer
b"moppormuryrtcome
the dehuh.
C. MSFIAhereby ages wgive MCRC and the City wmm notice of myvidmon or
ddauk under the EmendedUs Agreement retie were doe sodce cd owls defra or
viohteon u gvmothe Develops. The nmze"idmcfythevidadm ordefaeh and
shall spedfymethrcp" .- •during whzbrie Developuba m oppmtuvbyo cure du
ddauh
d Allmtiresmga4edwderthis Agreereatsbdlbebaod.debvsadersmtby
regum 1 or candied sell, rmua r«riq required, postage pr4aid, to the potters at the
uldrssa net above, or such sheraddierou at than pamee shag provide to wmmg to ap
other Sodium otiv Agrarianism.
MaiceS ate Agreement
Pape f5 Agasemea
Page x of 5
e.VJ ate' If aoyparryso this Agnemena shall commence. Prosecute or Samepotea my
kgalx =orproceediugav"tionoftbt Agvemm,myonewmoreofrheoderpav'sw5rc
Agreemmrmryaorywe u a defense aheteams and cooddiom of this Agreement, aadmy
mreay..ne andweryose such defeme alias name orfir the sate of the Developer.
Fes'+=-� 5 m
a. MCRG the (ayrvd WHA haw all of rhe powermd legal right wall are ddy
authorized m exaure and deliver this Agrremrnt and to perfecto rbeir respective olakporor
hereunder.
e. Anyparsy's dehya wfagme w eavdse myriglt or remoody shal) wt
commute atwaivwof aryoblg'oo wai& a a paryead all of rhe parsyws mpecdve tigers
and remedva hesemdersha➢be cnmdatie. Mo verslvll be dadwbe mark byapatry
of anyd ns sidm heremdervolessthe saes6Jl be in writing and as a waiver, g my, sball be
odywnh reopen to the spm rotor" involved ands shall Inco wayimpztthe
pmyy rW= wotberpanyas oblipuom to hm anyodw respect wnarywhervme
f. If anypmvisien dm's Agrewcaa, or as apphaum on aoypmw wcimmmmca
shag for reyreuw and to my men; be Invalid or uneoformabk rhe ratraincter of tbis
Apeemeat ared the applicaum ofaacd pw.uirmw other person wc'vamslaores sball not
be affecW tbmlry bo rather sbd be enforced to the greaten mem permmed bylaw.
Eli the (Zitv al of the dm East set forda above.
`VIII e
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al
N ine Slate Henning Authority
Subordirurion Agmemem
Page 3 of 5
m
MAINE COb161g TYREI STMENT
CORPORATION
QfYOFBA (m
PwonZyappe drhe abov nam jodw Sreemc, m Cmmael df cSure Hn 4
Aud=iw2ndgmeoawrbeforegoingaad admowle4befomme the foregoing w be ha free
sa &n d in hersaid cgmckyandrbc hee a a 2nd deed ofsari Mame Sure Plous:vg Aanbo2ky
N AIS— � TP�p a0A/[
NowyPvblir/Amm�eyar-Iew ROMRTAJ.L URNRAU
MymMM uS nEapisee: uNary Pub&, MaM
My LpnmlssFln 6prea AWW 25.2 W
Mame Sum Fbasag AU6
SUboNinadon Ag2eemma
Page 4 d5
P.m/w
00-100
Swe of Maine
Cnuuryof Onober�2000
PenonaQyappwed dce eboeemwed
ifv
bdme rhe fog��J8h�vfrsemd doreOf the Gafaogor. aaaoddeed�mwb�u/hoe�rnida�px
hyud
Maine Swe Homing Awhoiay
Subordination Ag nnevr
Page 5 of
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