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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 I%By e*Ut4 .::MY D"V... 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 TOTtt P.0'