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HomeMy WebLinkAboutA026 - Agreement to Terminate Regulatory Agreement dated May 20, 1987 INST# AGREEMENT TO TERMINATE REGULATORY AGREEMENT FEE S+ ` P F`'T THIS AGREEMENT TO TERMINATE REGULATORY AGREEMENT is made and entered into as of May 20 , 1987 , by and among the Iowa Finance Author- ity, a public instrumentality and agency of the State of Iowa (the "Issuer" ) , First Trust Company, Inc. , a duly organized, existing and authorized Minnesota corporation having its principal offices in St. Paul, Minnesota (the "Trustee" ) , and Mortenson I , A Limited Partnership, an Iowa limited partnership (the "Borrower" ) . W I T N E S S E T H: WHEREAS, the Issuer has issued, sold and delivered its Variable Rate Demand Purchase Small Business Multi-Family Housing Revenue Bonds, Project No. 00220 (Mortenson I Project) (the "1985 Bonds" ) , in the aggregate principal amount of $6 , 300 , 000 in accordance with Section 103 ( b) of the Internal Revenue Code of 1954 , as amended, and regulations promulgated pursuant thereto (the "Code" ) and pursuant to the Small Business Loan Program of the Issuer authorized under Chapter 220 of the Code of Iowa, as amended (the "Act" ) , the pro- ceeds of which were loaned to the Borrower for the purpose of financing the acquisition and construction of a residential rental project (the "Project" ) , to consist of 138 rental units and other related facilities and to be located on the land described in Exhibit A hereto in Story County, Iowa, to be owned and operated by the Borrower as a "small business" as that term is defined in the Act; and WHEREAS, in order to ensure the maintenance of the Project as a residential rental project rented at least in part to persons of low or moderate income, as required by the Code for such projects financed with the proceeds of tax-exempt Bonds, and thereby maintain the tax-exempt status of the interest on the Bonds from federal income taxation, the parties entered into a Regulatory Agreement dated as of December 1, 1985 (the "1985 Regulatory Agreement" ) , and filed for record in the office of the Recorder of Story County, Iowa in Book 229 at Page 56 , establishing covenants on the Project as to the maintenance of the Project as a residential rental project rented at least in part to persons of low or moderate income, as defined in the 1985 Regulatory Agreement and the Code, which covenants run with the land described in Exhibit A; and WHEREAS, the 1985 Bonds have been refunded by the issuance of the Issuer ' s $6, 100, 000 Iowa Finance Authority Multifamily Housing Revenue Bonds (Mortenson I Project) Series 1987 (the 111987 Bonds" ) , and therefore the 1985 Bonds are no longer outstanding; and _.. -1017- 9 INST.NO. IOWA STORY COU"T al FILED FOR .40 31N . 21987 PM a 6 ) POTfE 3 a g Recorder wolk cI r�M L. �R Deputy WHEREAS, in connection with the issuance of the 1987 Bonds and the refunding of the 1985 Bonds, the Issuer, the Borrower and the Trustee of the 1987 Bonds entered into a new Regulatory Agreement dated as of March 2 , 1987 (the "1987 Regulatory Agreement" ) , and filed for record in the office of the Recorder of Story County, Iowa in Book 247 at Page 267 , placing covenants running with the real estate described in Exhibit A identical to those imposed thereon by the 1985 Regulatory Agreement to ensure the continued use of the Project as a residential rental project rented at least in part to persons of low or moderate income, as defined in the 1987 Regulatory Agreement and the Code, and thereby ensure the continued tax-exempt status of the 1987 Bonds; and WHEREAS, with the refunding of the 1985 Bonds, and the filing for record of the 1987 Regulatory Agreement to govern the use of the Project from and after the issuance of the 1987 Bonds in compli- ance with the requirements of the Code, the 1985 Regulatory Agreement is no longer necessary for the maintenance of the tax-exempt status of either the interest previously earned on the 1985 Bonds prior to their refunding or the interest to be earned on the 1987 Bonds; and WHEREAS, the 1985 Regulatory Agreement provides that it may be terminated upon agreement by the parties hereto upon receipt of an opinion of bond counsel that such termination will not adversely affect the exclusion from federal income taxation of interest on the 1985 Bonds, and such bond opinion has been received by the parties from bond counsel. NOW THEREFORE, in consideration of the premises, the parties agree as follows : 1 . The 1985 Regulatory Agreement is hereby terminated, and upon the filing of this Agreement for Termination of Regulatory Agree- ment in the real estate records of the office of the Recorder of Story County, Iowa, the covenants set forth in the 1985 Regulatory Agreement affecting the Project and running with the land described in Exhibit A hereto shall be void and of no further force or effect. 2 . The Recorder in and for Story County, Iowa is hereby author- ized to accept this instrument for recording and filing as a conclusive determination of the termination and release of all covenants and restrictions set forth in the 1985 Regulatory Agreement. 3 . The execution and filing of this Agreement shall have no effect on the continued effectiveness of the 1987 Reglatory Agreement and the covenants set forth therein as they relate to the Project and the real estate described in Exhibit A. a 5 i st 3a 9 IN WITNESS WHEREOF, the parties have caused this Agreement for Termination of Regulatory Agreement to be executed on their behalf as of the date first above written. IOWA,"" INA E AUTHO T By L ry L. T ., Executi V ,• i r ©r� r � .1. FIRST TRUST COMPANY INS '*��f41Af�e,ea0°" a Bycw" Its By Its CA. _, A EAL) 3 7"- MORTE SON I , A LIMITED PAW+NERSHIP By Everett W. Cochrane, Managing General Partner PAGE ✓ -3- BOOK_...�-- I STATE OF IOWA ) ss: COUNTY OF STORY) On this 24 day of 1987, before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Everett W. Cochrane, to me personally known, who being by me duly sworn, did say that he is the sole General Partner of Mortenson I, A Limited Partnership, an Iowa limited partnership, executing the foregoing instrument; that said partnership has no seal and that the instrument was signed on behalf of said partnership by authority of its partnership agreement; and the said Everett W. Cochrane ac- knowledged the execution of the instrument to be the voluntary at and deed of the partnership, by it voluntarily executed. * W S. A HONLM ,o.• Notary Public STATE OF IOWA ) ss: COUNTY OF POLK ) On this ',, d-Q day of 12il 1987, before me the undersigned, a Notary Publ c— in and f r fthe State of Iowa, personally appeared Larry L. Tuel, to me personally known, who being by me duly sworn, did say that he is the Executive Director of the Iowa Finance Author- ity, a public instrumentality and agency of the State of Iowa, exe- cuting the foregoing instrument; that the seal affixed to said instru- ment is the seal of said agency; that the instrument was signed and sealed on behalf of the agency by authority of the agency; and Larry L. Tuel, as such officer, acknowledged the execution of the instrument to be the voluntary act and deed of the agency, by it and by him voluntarily executed. ?A KV comw�up" Vry Public XKEM M MIL,&7 � 51PAGE 33 L -4- BOOK ,..,._,... ---- STATE OF MINNESOTA) ) ss: COUNTY OF ( f ) On this day of 1987 , before me the undersigned, aj Notary Public in and the State of Minnesota, personally appeared and to me personally known, who being by me duly sworn, did say that they are the and respectively, of First Trust Company, Inc. , a Minnesota corporation, executing the foregoing instrument, and the seal affixed to said instrument is the seal of said corporation; that the instrument was signed and sealed on behalf of the corporation by authority of the Board of Directors; and t- and as such officers, acknowledged the execution of the instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily exe- cuted. Notary Public p nrv.�nnn.^.•.,;.n:�.^.n.M✓�Nv1MnhMRNv.rt �r tl :. �i°•�f'd i BOOK_.......,. PAGE...----- EXHIBIT "A" Commencing at the Southuest Corner of the NW', of Section 8, Township 83 North, P.ange 24 West of the 5th P.M., Story County, Iowa; thence East along the South line of said NW; a distance of 45.0 Feet to the point of beginning; thence in a Northerly direction, along an assumed bearing of North 0°00'00" East, parallel to and 45.0 Feet Easterly of the West line of said NW; a distance of 371.20 Feet; thence South 28`14'07" East to distance of 260.41 ?eet; thence South 83°01'08" East a distance of 513.91 Feet; thence Nort 72°13'44" East a distance of 224.01 Feet; thence North 20'09'02" East a distance of 57.94 Feet; thence North 77"02'11" East a distance of 303.e0 Feet thence South 66°46'17" East a distance of 12S.26 'Feet; thence South 0°09'22" East a distance of 1,513.3E Feet; thence North 89°05' 12" Vest a distance of 1,232..12 Feet; thence North 0'06'12' West a distance of 981.73 Feet; thence North 0"06'12" West a distance of 291.97 Feet to the point of beginning, Except Willow Creek Estates Firs: Addition tz the City of Ames, Iowa, and except Willow Creek Estates Second Addition :o the City of Ares, Iowa, and except Be-inning at a point on the south line of the NW: SW, Section 8, Township 83 North, Pange 24 west of the 5ti P.N. , Story County, Iowa distant S 89'03'30'E 45.0 feet from the SW Corer thereof; thence 11 0°06'12"W 473.4 feet parallel to and 45.0 feet distant easterly from the west line of the said 1;W-. SW', to the southerly line of the plat of Willow Creek Estates Second Addition to the City of Ames, Ic a; thence along the Southerly boundary of said Addition: S 89°06'12 210.0 feet; S 0*06,12"E 220.0 feet; S 89°06'12"E 390.0 feet; and N 10,53,48"E 77.2 feet; thence S 89'06'12"E 119.3 feet; thence 50°06'12"c' 330.0 feet to the South line of the said NWk SW;, thence N 89'03'30"W 734.1 feet to the point of beginning, subject to public road right-of-way and containing 5.56 acres, all in the City of Ames, Iowa. BOOKPAGE 51 '533 _. c� Q { O C { D W N D C) n 0 rn CJ El