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HomeMy WebLinkAboutFirst Interstate Bank - Subordination Agreement Space above this line for Recording Prepared by: David H. Mason,415 Clay Street, PO Box 627, Cedar Falls, IA 50613 SUBORDINATION AGREEMENT This Subordination Agreement is entered into this day of , 2024,by and between the City of Waterloo,Iowa(the"City")and First Interstate Bank("Lender"),regarding real estate legally described as follows,which is referred to herein as the"Property": Parcel "I" of Plat of Survey attached to Doc. #2011-17669,being a part of Block 15,Hayes' Addition to the Town of Waterloo,Iowa; except the Northwesterly 45.94 feet in even width thereof as measured along the Northerly right-of-way line of Black Hawk Street,said part of Parcel "I" also being described in Plat of Survey Doc. #2012-3404. WHEREAS, City and 5 Bees, LLC (the"Borrower")entered into that certain Development agreement dated July 13, 2020,recorded as File No. 2021-11025 in the Office of the Black Hawk County Recorder, as amended by that certain Amendment to Development Agreement dated July 3, 2023, and recorded as File No. 2024-7203 (collectively,the"Development Agreement"); and WHEREAS,the Property is referred to in the Development Agreement as the"Phase 4 Lot"; and WHEREAS, Section 4.B. of the Development Agreements grants certain rights of reverter in title to the Property to the City in the event Borrower fails to abide by certain terms of the Development Agreement (the"City's Reverter Rights"); and WHEREAS,Borrower desires to obtain mortgage financing from Lender to enable Borrower to make certain improvements to the Property; and WHEREAS, in order to induce Lender to provide financing and to take a mortgage from Borrower on the Property,the City is willing to subordinate the City's Reverter Rights with respect to the Property mortgaged to Lender. NOW, THEREFORE,the City does hereby agree that the City's Reverter Rights arising out of the Development Agreement are hereby subordinated and declared to be subsequent and junior to the rights, title, interest, and claim of lien of Lender arising pursuant to the mortgage dated , 2024 and filed on ,2024,as Document No. , in the Office of the Black Hawk County Recorder(the"Lender Mortgage"). The undersigned have executed this Subordination Agreement as of the date first set forth above. City of Waterloo, Iowa By `j2 . 1 Quentin Hart,Mayor By4e Li Kelley Feld e, City Clerk First Interstate Bank By Its STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) On this 2 6 day of beCc+n--A,t't---" , 2024,before me, a Notary Public in and for the State of Iowa,personally appeared Quentin Hart and Kelley Felchle,to me personally known,who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council,and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. NANCYANNE HIGBY b ow COMMISSION N0.863884 Notary ublic * ,k MY COMMISSION D�IREB i 3 2 y 7 STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Acknowledged before me on ,2024 by as of First Interstate Bank. Notary Public „ „ _ • KA\ aWc4Z,V.,14. ,e),o „,