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• • • WINTHROP WEINSTINE ATTORNEYS AND COUNSELORS A T LAW May 26, 2010 City of Lino Lakes 1189 Main Street Lino Lakes, MN 55014 Attention: EDA Executive Director Amy L. DuMond Direct Dial: (612) 604 -6603 Direct Fax: (612) 604 -6903 adumond((L Winthrop.com VIA MESSENGER RE: NOTICE AND REQUEST FOR SUBORDINATION Contract for Private Redevelopment dated October 3, 1995, executed by and between Lino Lakes Economic Development Authority and Cottage Homesteads of Willow Ponds Limited Partnership (the "Contract ") Ladies and Gentlemen: As you are aware, Lino Lakes Housing Limited Partnership ( "Owner ") is refinancing the real property located at 101 Willow Pond Trail, Lino Lakes, Minnesota (the "Project ") which Project is subject to and encumbered by the above - referenced Contract. The refinance loan will be provided to Owner by Dougherty Mortgage LLC ( "Dougherty ") and such loan will be insured by the United States Department of Housing and Urban Development. Section 8.7 of the Contract states that "[u]pon request by a mortgagee providing financing or refinancing of the Minimum Improvements, the Authority agrees to subordinate this Agreement to the rights of any such mortgagee ". Please be advised that in accordance with Section 8.7, Dougherty hereby notifies the Lino Lakes Economic Development Authority (the "Authority ") that Dougherty is providing financing to the Project and that Dougherty requests that the all of the Authority's right, title and interest in and to the Agreement (including all attached documents and instruments thereto) be subordinated to Dougherty's first mortgage loan and loan documents. As Dougherty's first mortgage loan is insured by HUD, the form of subordination must comply with HUD's requirements for the first mortgage loan. Attached hereto for execution by the Authority is the First Amendment to Contract for Private Redevelopment and Subordination Agreement (the "First Amendment "). The amendment and subordination provisions set forth in the First Amendment are also to be added to and included in the Declaration of Covenant and Restriction (the "Declaration ") prior to its execution and recordation. As the Declaration is part of the Contract, the Declaration is also subject to the Authority's agreement to subordinate as set forth in Section 8.7. The First Amendment and request for revisions to the Declaration have been previously provided to Steve Bubel, the Authority's counsel. CAPELLA TOWER Suite 3500 1 225 South Sixth Street I Minneapolis, MN 55402 -4629 I MAIN: (612) 604 -6400 I FAX: (612) 604 -6800 I wwucwinthrop.com I A Professional Association