Agenda Packets - 1998/12/07 - Laserfiche WebLink

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WARCHOL 3433 BROADWAY STREET NORTHEAST,SUITE 110 BERNDT attorneys MINNEAPOLIS-ST.PAUL, MINNESOTA 55413-1783 HAJEK FAX (612) 331-1069 TELEPHONE(612) 331-4211 a professional association CHRIS H. BERNDT November 24, 1998 Mr. Daniel L. Hall Mermaid, Inc. 2200 Highway 10 Mounds View, MN 55112 Re: C & D Enterprises, LLC Development Agreement/City of Mounds View Mounds View Americlnn Hotel & Suites Our File No: 1159.40C Dear Daniel: • I have reviewed the pro forma Development Agreement with the City of Mounds View as you requested. Although the Development Agreement was not complete in a number of material respects, I do have some comments and recommendations that I think should be incorporated into the Development Agreement. My comments in that respect follow: 1. It is my understanding that the Project and the Development Property will encompass the existing Mermaid complex and tracts of land upon which it is situated. The Mermaid complex is currently owned by Mounds-vista, Inc. and Charles Hall, and tha Property will be acquired by the Developer subject to a first mortgage which presently encumbers the Project (including the current Mermaid complex). Accordingly, Section 8.1 of the Development Agreement should be revised to permit the continued existence of the current First Mortgage which encumbers the property and to which the Developer will acquire the Development Property subject to with the understanding that the First Mortgage may be refinanced as part of the financing which will be obtained to further develop the Property and fund in part the Minimum Improvements, (including the soft costs referenced in Section 8.1). This can be accomplished by adding to 8.1 a sub- paragraph which precedes the existing (a) that reads as follows: "(a) Any Mortgage which the Developer purchases the Development Property subject to; and