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HomeMy WebLinkAbout32662 / 83-19November 17, 1983 (CARRIED PURPOSE: INITIATED BY LOST I/ 19 RFSOLUTION LAID OVER WITHDRAWN ) APPROVE LIMITED SUBORDINATION AGREEMENT CITY ADMINISTRATION BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into the attached Limited Subordination Agreement with Chamco, Inc. in order to subordinate their notes to Chamco, Inc. in the amount of $375,000.00. SUSMITTI'i.D gy ,...• � — 20 — � Resolution #19 LIMITED SUBORDINAI'ION AGkEhM�NT AGREEMENT made , 1983, betWeen the CITY OF OSHKOSH, a municipal corporation, located at Winnebago (:ounty, Wisconsin, herein reYerred to as Vendor, and CHAMCO, ING., a Wisconsin corporation, located in the City of �shkosh, Winnebago County, Wisconsin, herein referred to as Purchaser; WITNESSETH: A. Vendor has sold to Purchaser under the terms oY a certain Land Contract dated August 31, 2983, and recorded in [he Winnebago County, Wisconsin Registry on September 19, 1983, as Document No. 5981G7, the following described proper[y: A part of the Northeast Quarter (N� 1/4) of the Northwes[ Quarter (NW 1/4) and the Southeast Quarter (S� 1/4) of the NorthwesG Quarter (NW 1/4) of Section Thirty-three (33), Township Eighteen (18) North, Bange Sixteen (16) East, ThirLeenth (13th) Ward, City of Oshkosh, Winnebago County, Wisconsin, containing 6.464 acres of land and being described by: Commencing at the Northwest corner of Lot 1 of Certified Survey Map No. 845 recorded in Volume 1 on Page 845 of Certified Survey Maps in the Winnebago County Register of Deeds Office, Document No. 558809; thence N00°15'00" E. 6G.00 feet; thence N89°22'29" W. 66.00 feet, to the true point of beginning; thence continue N89°22'29" W. 235.96 feet; thence Westerly l0Ei.73 feet, along the arc of a curve to the left having a radius of 530.00 feet and the chord of which bears S84°44'S3" W. 108.54 teet; thence N00°15'UO" E. 639.3� feet, to a point on the Southeasterly right-of-way line of the Wisconsin Southern Railroad; thence N59°34'0'L" - 20a - Resolution #19 E, 453.48 feet, along the Southeasterly right-of-way line of the Wisconsin Sou[hern Railroad; thence S00°15'00" W. 561.84 feet; thence Southerly 88.57 feet, along Che arc of a curve to the right having a radius of 195.89 feet and the chord of which bears S13°12'10" W. 87.82 feet; thence Southerly 118,41 feet, along the arc of a curve to the lef[ having a radius of 261.89 feet and the chord of which bears S13°12'10" W. 117.40 feet; thence S00°15'00" W. 100.00 feet, to the true point of beginning. B, The principal amount payable under the said Land Contract is the sum of $59,000.00, payable according to the terms of the said Land Contract. C. First Wisconsin National Bank of Oshkosh, a national banking association, located at Oshkosh, Wisconsin, and othets, are about to purchase Ci[y of Oshkosh, Wiscon- sin, Industrial Development Revenue Bonds on behalf of Chamco, Inc., in the principal sum of $375,000.00, to be secuted by, among other things, a mortgage on and covering the premises above described and being acquired by Purchaser. To induce the said Bank and others, to make such purchase it is necessary that the interest of Che Vendor in the said Land Contract be subordina[ed to the lien of the mortgage and other security interests about to be given by Purchaser to First Wisconsin National Bank of Oshkosh, and others, incidental to the purchase by [he said Bank, and others, of the said Industrial Development Revenue Bonds. For this reason and in consideration of the mutual covenants and promises of [he parties hereto, Vendor and Purchaser covenant and agree as follows: 1. Subordination. Vendor hereby covenants, consents and agrees with First Wisconsin National Bank of Oshkosh, its successors and assigns, that the aforesaid Land Contract intetest - 20b - Resolution #19 held by Vendor is and shall continue to be subject and subordinated in lien to the lien oY the said mortgage and otl�er security interests about to be gran[ed by Yurchaser to the said Bank, and others, as aforesaid. 2. Consideration. In consideration oY Vendor so sub- ordinating [he Land Contract, interest held by it to the Mortgage to be made to Purchaser First Wisconsin National Nank of Oshkosh shall make the aforesaid loan for the purposes of enabling Purchaser to construct a 40,000 square foot building on the said premises. The terms of [he loan shall be as follows: In[erest on the unpaid principal is payable at 75� of the prime commercial rate in effect a[ the First Wisconsin National Bank oi Milwaukee, Wisconsin, on the last business day next preceding the first day of each month, and the unpaid principal balance and accrued interest are due and payable not later than Uecember 31, 198b, or upon such earlier event as may be provided by the City of Oshkosh and Chamco, Inc., in the aforesaid Industrial Uevelopment Kevenue Bond. Vendot hereby approves of the terms of such loan. IN WITNESS WHEREOF, the parties have executed this Agreement at Oshkosh, Wisconsin, on , 1983. CHAMCO, INC. By: Attest: By: Russell L. Thill W. C. Hunter - 20c - CITY OF OSHKOSH By: Attest: By: William D. Frueh, City Manager Donna C. Luebke, City Clerk AUTHENTICATION Resolution #19 Signatures of Russell L. Thill and W. C. Hunter authenticated this day of , 1983. Timothy M. Dempsey Member State Bar of Wisconsin ACKNOWLEDGMENT STATE OF WISCONSIN ) WINNEBAGO COONTY ) Personally came before me this day of , 1983, the above named William D. Frueh, City Manager and Donna C. Luebke, City Clerk, City of Oshkosh, to me known to be such officers of the City of Oshkosh, and to me known to be the persons who executed the foregoing instrument and acknowledged the same. Sohn W. Yence Notary Public, Winnebago County, Wis. My commission is permanent. - 20d - APPNOVEll AS TO FOKM AND CONTENT John W. Pence, City Attorney City of Oshkosh, Winnebago County, Wisconsin. 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