HomeMy WebLinkAbout2025-03-03 Promissory Note - 725 Prospect AveDocument Number
PROMISSORYNOTE, COVENANT
Document Title
PROPERTY OWNER: ALPINE PROPERTIES MANAGEMENT
LLC.
CITY: City of Oshkosh
215 Church Avenue
PO Box 1130
Oshkosh, WI 54903-1130
DOC# 1940112
REGISTER OF DEED
i
PAGES: 7
Recording Area
Name and Return Address
City Attorney's Office
PO Box 1130
Oshkosh, WI 54903-1130
Ohar t,,�
Tax Parcel Number: 90504030000
PROPERTY: The real property described below with its address
Commonly known as 725 PROSPECT AVENUE. OSHKOSH, WI 54901.
The Property subject to this agreement, which is a tract of land situated in the City of Oshkosh, Winnebago
County, Wisconsin, is more specifically described as follows: LOT 149 CITY REPLAT #1, CITY OF
OSHKOSH, WINNEBAGO COUNTY, WISCONSIN
CONSIDERATION: To assist Property Owner with the replacement of a lead water service line servicing
the Property described above, the City of Oshkosh (City) will provide a lump sum
loan of Twenty-five hundred dollars ($2500.00) pursuant to the terms of this
Promissory Note, Covenant, and Mortgage (hereinafter "Agreement"). The loan
proceeds shall be exclusively used for payment of up to 50% of the cost to replace a
lead service line and total loan amount shall not exceed $2,700.00 plus Sixty Dollar
($60) fee.
PROMISE TO PAY / REPAYMENT TERMS:
Property Owner promises to pay the amount loaned as follows:
i. Property Owner shall pay the principal amount of the loan plus a fee in the
amount of $60.00 together with interest as provided in (ii) below over a term
of 10 years.
ii. Interest shall accrue at a rate of two percent (2.0%) per annum.
iii. Repayment shall be made annually through special charge on the Property tax
bill on the schedule attached hereto as Exhibit "A" and provided to the
Property Owner.
iv. Property Owner may prepay all, or a portion, of the balance of the loan
without premium or penalty.
CONSENT TO SPECIAL CHARGE:
Property Owner agrees that repayment of the loan amount shall be secured by the
City's right to special charge as provided by §66.0627 of the Wisconsin Statutes.
Each year per the schedule above, Property Owner agrees that the City may levy the
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amount of the obligation against the Property as a special charge pursuant to Wis.
Stat. §66.0627(8)(ag). In connection therewith, Property Owner:
(i) acknowledges that the City has incurred financial obligations in
connection with loan;
(ii) agrees that the amount of the special charge, if levied consistent with this
Note, constitutes a proper exercise of the City's authority to levy special
charges in accordance with Wis. Stat. §66.0627(8)(ag)-(cm);
(iii) agrees that the allocation of the amount of the special charge to the
Property is reasonable;
(iv) consents to the imposition and levy of such special charge;
(v) agrees that the levy of special charges in accordance herewith is
authorized by signature on this Agreement, and that no further procedural
steps need be taken by the City;
(vi) waives all notices, hearings, and appeals provided by Wis. Stat. §66.0627
or any other statute; and
(vii) acknowledges that the City is relying on the terms of this Agreement, and
specifically the terms of this subsection in making the loan and that if the
provisions relating to special charges are not enforced that the City would
not have entered into this Agreement and such Agreement would be
inequitable.
(viii) Acknowledges that an installment payment that is delinquent becomes a
lien on the Property as of the date of delinquency. A lien under this
paragraph runs with the land and has the same priority as a special
assessment lien and may be enforced by foreclosure.
This promise to pay is secured with a covenant on the Property which shall run
with the land and shall bind Property Owner, their heirs,. executors,
administrators, assigns, and successors in interest until payment in full is received
as provided.
The City shall follow its customary practice in collecting special charges placed on
the tax rolls, including assessing penalties and charging interest, and initiating
foreclosure proceedings where appropriate.
Special charges collected for private LSL replacement loan repayments shall be
placed in a segregated fund and disbursed in accordance with the requirements of
the City's funding sources.
City shall keep an accounting of private LSL replacement loans and payments
received by the City and provide Property Owner with such information upon
request.
MORTGAGE: This is not homestead property.
Property Owner (Mortgager) hereby mortgages to the City of Oshkosh (Mortgagee) to
secure the payment of this Promissory Note the Property described herein, including all
fixtures and other appurtenant interests, together with any rents or profits therefrom.
Mortgager shall not transfer, sell or convey any legal or equitable interest in the Property
(by deed, land contract, option, long-term lease or in any other way) without the prior
written consent of Mortgagee, unless either the indebtedness secured by this Mortgage is
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first paid in full or the interest conveyed is a mortgage or other security interest in the
Property, subordinate to the lien of this Mortgage. The entire indebtedness under -the note(s)
secured by this Mortgage shall become due and payable in full, at the option of the
Mortgagee without notice, upon any transfer, sale or conveyance made in violation of this
paragraph.
This is not a purchase money mortgage.
COVENANTS: At all times the Property Owner:
1. Will pay all taxes, special assessments and special charges which may be
levied or assessed against Property subject to this Agreement before they
become delinquent.
2. Will retain title to the Property or upon transfer of title pay in full the
remaining amount due in full or shall notify any purchaser or other
successor in interest of this Agreement and the Covenants contained herein.
3. Will not to commit waste nor suffer waste to be committed on the Property,
and will keep the Property in good condition and repair and pay when due
all indebtedness which may be or become secured at any time by a mortgage
or other lien on the Property.
4. Will keep the Property insured for fire and other perils for at least the full
and fair market value of the Property and pay the premiums thereon when
due.
5. Agrees that, in the event that an enforcement or collections action is filed,
that all expenses, including reasonable attorney's fees, will be added to the
amount of the loan and will become immediately due.
MODIFICATIONS: Any change or modification of this agreement must be in writing and signed by all
parties signing this original Agreement.
NOTICES: All notices must be sent or copied to all parties identified above, or to their
successors in interest upon written notice.
DEFAULT: Events of Default
Property Owner agrees that time is of the essence with respect to payment of
principal and interest when due, and in the performance of the terms, conditions
and covenants contained herein. The occurrence of any of the following events shall
constitute an "Event of Default" under this Promissory Note, Covenant and
Mortgage.
1. The Property Owner fails to make any loan payment when due;
2. The Property owner breaches any covenant, representation, or warranty
contained in this Agreement;
3. The Property Owner becomes insolvent, files for bankruptcy, or is the
subject to any bankruptcy or insolvency proceeding;
4. The Property Owner fails to maintain the required insurance on the
Property or lets the property taxes become delinquent;
5. Any legal suit or proceeding is initiated, including but not limited to a
notice of foreclosure or foreclosure action, that in the City's opinion,
may impair the City's interest in the Property.
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Consequences of Default
In the event of default, Property Owner agrees that the City may, at its option,
declare the whole amount of the unpaid principal, fees, and accrued interest due
and payable, and may exercise any rights and remedies available under law,
including but not limited to:
1. Foreclosure of the mortgaged property.
2. Collection of past due amounts through legal proceedings.
3. Recovery of costs and expenses incurred, including reasonable
attorney's fees.
4. Inclusion of the entire balance of the unpaid principal and interest in the
current year's special charge as provided above.
Notice of Default
Upon default of the obligations under this Note and Covenant, City shall mail notice
to Property Owner specifying: (a) the default; (b) the action required to cure the
default; (c) a date, not less than 30 days from the date the notice is mailed by which
date the default must be cured; and (d) that failure to cure the default on or before
the date specified in the notice may result in acceleration and the outstanding
balance becoming immediately due and owing.
TERM: The term of this Agreement shall begin as of the date indicated below and shall
terminate upon payment in full of the loan amount including all fees, costs and
interest that are due and owing pursuant to this Agreement.
[Signature Pages to follow]
0
Dated this 24t' day of January, 2025.
RECEIVED
PROPERTY OWNER FEB
3 2025
DEPT OF PUBLIC WORKS
OSHKOSH, WISCONSIN
By:
Mary Eiden
STATE OF 152OR Djq )
) ss.
-CH,/9L.o-7"C COUNTY )
Personally, came before me this I?q 7� day of n a , 2025, the above -named
/t-�i4R r-Drto me known to be such persons who execut d the foregoing instrument and
acknowledged the same, for the purpose herein contained.
V110" JANI
Notary Public
State of Florida Notar3oublic, State of FCoRr0,-
j
Comm#HH627050 My C ssion expires: o j-oq- 2o4
e Expires 1/9/2029
[signature pages continued on next page]
W
CITY OF OSHKOSH
STATE OF WISCONSIN )
) ss.
WINNEBAGO COUNTY )
Personally, came before me this jLA day of 2025, the above -named John
Fitzpatrick and Diane Bartlett of the City of Oshkosh, to me known to bb such persons who executed the
foregoing instrument and acknowledged the same, for the purpose herein contained.
CHERYL PIONKE
Notary Public Notary P c, State of Wisconsin
State of Wisconsin My Commission expires: -oil
APPROVED AS TO FORM: APPROVED AS TO FUNDING AVAILABILITY:
Lynn k.Urenson, ttorney Julie'Imes, Finance Director
DRAFTED BY: Lynn A. Lorenson
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City EXHIBIT A
of
Oshkosh
January 24, 2025
Owner: Mary Eiden
Parcel ID: 05-0403-0000
Parcel Address: 725 Prospect Ave
Total Loan Amount: $2,560.00
Interest Rate: 2% per year
Please find enclosed the amortization schedule for the above referenced property's lead
pipe replacement loan. Your yearly installment plus 2% interest will automatically roll
onto the current year's tax bill and every consecutive year thereafter until paid in full.
The loan will be due in full plus accrued interest upon sale or transfer of title of
property. Please request a payoff statement from the City of Oshkosh at
CityLetter@oshkoshwi.gov_.
10 Year Loan Amortization for Lead Pipe Replacement:
LOAN AMOUNT:
$2,560.00
LOAN TERM IN YEARS:
10
ANNUAL INTEREST RATE:
2.00%
START. DATE:_. ° ,
1/24/2025
Tox Year;:
Beg►nning
` f M Balance '
Pdn'cipol
lnteres# ° ; `
°
Bill Total, .'I
Balance.
2025
$2,560.00
$256.00
$47.69
$303.69
$2,304.00
2026 ._:
$21304.00
$256.00
$46.08-°f
° $302.08
$2,048.00
2027
$2,048.00
$256.00
$40.96
$296.96
$1,792.00
2028 °,
„$1,792.00.
;,.. $256.00
$35.84
= $291.84
�$1536.00
2029
$1,536.00
$256.00
$30.72
$286.72
$1,280.00
2030"`
°- °°' $1 280.00
$256.00°
,`: $25.60}
$281''60,
$1,024.00
2031
$1,024.00
$256.00
$20.48
$276.48
$768.00
2032 '
$768.00
$256.00
$15.36
$271.36
$512.00
2033
$512.00
$256.00
$10.24
$266.24
$256.00
2034 :
$256.00
$256.00
$5.12 '
' $261.12
`'$0.00
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.oshkoshwi.gov