3. HRSR 05-16-2005 - Laserfiche WebLink

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Housing and Redevelopment Authority in and for the City of Elk River PROMISSORY NOTE $400,000 FOR VALUE RECEIVED, MDI Limited Partnership #70, a Minnesota limited partnership (hereinafter referred to as "Borrower"), with its principal offices located at: 1600 University Avenue West, Suite 212 St. Paul, Minnesota 55104-3825 hereby promises to pay to: the Housing and Redevelopment Authority in and for the City of Elk River, a public body corporate and politic under the laws of the State of Minnesota (hereinafter referred to as "Lender"), with its principal offices located at: 13065 Orono Parkway Elk River, Minnesota 55330 the principal sum of Four Hundred Thousand Dollars ($400,000), together with interest thereon, subject to the terms and conditions hereof, as follows: 1. Security. As security for payment of this Promissory Note, the undersigned shall execute a Loan Agreement and Mortgage regarding certain Real Estate located in the County of Sherburne, State of Minnesota, commonly known as the "Jackson Block", located at 300 Jackson Street, City of Elk River, hereinafter referred to as the "Subject Property", and more fully described in Exhibit I attached hereto and by this reference made a part hereof and subordinate to: A. Existing real estate property taxes upon the Subject Property. B. A first mortgage from MDI Limited Partnership #70 for permanent financing from Minnesota Housing Finance Agency in an amount not to exceed $1,086,284. C. A second mortgage from MDI Limited Partnership #70 to secure the assignment of the Tax Increment revenue note in accordance with Section 5.2 of the Development Agreement, dated as of December 6, 2004 between the City and MetroPlains Development, LLC. D. A Declaration of Land Use Restrictive Covenants for Low Income Housing Tax credits (sometimes referred to as the Extended Use Agreement as required under Section 43 (h) (6) of the IRS Code) to be recorded after construction is complete.