06-10-2026 Council Packet - Laserfiche WebLink

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PROMISSORY NOTE (Metropolitan Council Livable Communities Demonstration Account (LCDA) $922,500.00 ___________, 2026 Little Canada, Minnesota FOR VALUE RECEIVED, the undersigned (herein called the "Borrower"), promises to pay to the order of the City of Little Canada, a Minnesota municipal corporation (herein called the "Lender"), or its assigns, the sum of $922,500.00 (herein called the "Loan Funds"), at the rate of zero percent (0.00%) interest per annum. Said sum was made available to the Borrower by that certain Loan Agreement (Metropolitan Council Livable Communities Demonstration Account (LCDA)) dated as of __________, 2026 (the "LCDA Loan Agreement"), between the Lender and the Borrower to redevelop the property located at 99 County Road B, Little Canada, Minnesota (herein called the "Project"), and legally described in the LCDA Mortgage (defined below). Unless otherwise set forth herein, all capitalized terms used but not defined herein shall have the meanings ascribed to them under the LCDA Loan Agreement. The entire principal amount of this Note shall be due and payable on or before December 31, 2066; provided, however, that at any time prior to the full repayment of the LCDA Loan, the entire outstanding principal balance will be immediately due and payable upon the occurrence of any one of the following events of default: (a) The sale, assignment, conveyance, transfer, lease, lien, encumbrance, or refinancing of the Project by the Borrower without the Lender's prior written consent, except a lease to a tenant of the Project in the ordinary course of business or transfers of limited partnership interests in the Borrower pursuant to Borrower's partnership agreement or the replacement of the general partner or Borrower pursuant to Borrower's partnership agreement with the reasonable approval of the replacement general partner by the Lender; or (b) Termination of use of the Project as a low- and moderate-income housing project as required by the LCDA Loan Agreement; or (c) Any use of the Project or a portion of the Project which violates any federal, state or local law, statute, or ordinance, which includes illegal discrimination, pornography, gambling or drug related activities; provided, however, that Borrower shall not be in default as a result of illegal activities at the Project by tenants of the Project if Borrower is pursuing all reasonable actions to prohibit such illegal activities. (d) Default by the Borrower in the performance of any other covenant, term or condition of this Promissory Note, the LCDA Mortgage, the LCDA Loan Agreement, or any other agreement or mortgage relating to or encumbering the Project. Upon the occurrence of one of the events specified above, the Lender shall mail notice to the Borrower specifying: (1) the event of default; (2) the action required to cure such event; (3) a date not less than thirty (30) days from the date the notice is mailed to the Borrower by which date such default must be cured; and (4) that failure to cure such default on or before the dates specified