11-21-11 Council Agenda - Laserfiche WebLink

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FIRST AMENDMENT TO CONSTRUCTION LOAN AGREEMENT 'TIIIS AGREEMENT is dated as of the day of November, 2011, by and between Graba Properties, LLC, a Minnesota Limited Liability Company (the "Borrower "), and the City of Little Canada, a Municipal Corporation and Political Subdivision of the State of Minnesota (the "Lender "). RECITALS A. That by a Construction Loan Agreement dated September 19, 2011 (the "CLA "), the terms and conditions of which are incorporated herein by reference, the parties agreed that Lender would disburse to Borrower up to $100,000.00 of a $262,143.48 Credit Facility for build - outs or leasehold improvements to be completed for Borrower's tenant, Neatoscan, Inc., with the balance of the original Credit Facility being loaned to Borrower to pay outstanding Service Availability Charges, to reimburse the Borrower for other improvements to the real property owned by Borrower and described in the Mortgage securing said Credit Facility, and to refinance other charges and expenses incurred by Borrower. 13. The Borrower and Lender have agreed that disbursements of the Credit Facility have been made for build -out costs and improvements to the real property described in the Mortgage, but not necessarily related to the build -outs or improvements for the Borrower's tenant, Neatoscan, Inc., as otherwise provided in the CLA. C. By this Agreement, the parties hereto wish to confirm that amounts disbursed or to be disbursed pursuant to the CLA need not be limited to the $100,000.00 specified therein, nor necessarily related to the build-outs or improvements directly related to the Borrower's tenant, Neatoscan, Inc., as long as used for other improvements to the real property owned by Borrower and described in the Mortgage securing the Credit Facility. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and agreements of the parties hereto, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Notwithstanding any other provision in the CLA to the contrary, the full amount of the Credit Facility in the amount of $262,143.48 may be advanced by Lender for the purposes originally contemplated, with the exception that not all of the $100,000.00 originally allocated for the build -outs or leasehold improvements to be completed for Borrower's tenant, Neatoscan, Inc., need be specifically allocated to such purposes, but may be allocated to other permitted expenditures and as set forth in the recitals set forth in the CLA, including build -outs or leasehold improvements for Borrower's tenant, Neatoscan, Inc., to pay outstanding service availability charges, to reimburse Borrower for other improvements to the real property owned by Borrower and described in the Mortgage securing the Credit Facility, and to refinance other 2