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LAID OVER WITHDRAWN )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
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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"
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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
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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
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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.
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APPNOVEll AS TO FOKM
AND CONTENT
John W. Pence, City Attorney
City of Oshkosh, Winnebago County,
Wisconsin.
This instrument drafted by:
Attorney Timothy M, Dempsey
Oshkosh, Wisconsin 54902
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Resolution #19
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