HomeMy WebLinkAboutNotice of Mortgage Foreclosure sale-2010 RECEIVED
MES�ERLI & KRAMER SEP 16 2010 Messerli&Kramer P.A.
ATTORNEYS AT LAW
14W Fifth StreetTowers
C�����p��� 100 South Flfth Street
�� Mlnneapolls,MN 55402�1217
Septembel' 15, 2010 pno�e e�z.s�z asoo
fax 6t26723777
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Addltional ofiices In_
CERTIFIED MAIL �� ��°�`��'��`r'°�`" "'���
City Clcrk
City of Orono, Minnesota
2750 Kelley Parkway w�:�er�s�onta�:��.
Crystal Bay Minnesota 55323 �s,z�s��-3s3�
� ndipasquale@messerlikramer com
Re: Notice of Mortgage Forcclosure Salc
Our File No. 16170-6
Dear City Clerk.
Enclosed and served upon you, please tind a Notice of� Mortgage I�oreclosure Sale regarding
Hill School ol�Minnesota, Inc.
Pleasc contact me if you sho�ild have questions.
Sincerely,
MESSERLI & KRAMER P.A.
C V���i��'/ �j4���
Nancy A. I�iPasqhale �
Paralegal
Fncl.
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NOTICE OF MORTGAGE FORECLOSURE SALE
THE RIGHT TO VERIFICATION OF THE DEBT AND IDENTITY OF THE
ORIGINAL CREDITOR WITHIN THE TIME PROVIDED BY LAW IS NOT
AFFECTED BY THIS ACTION.
NOTICE IS HEREBY GIVEN:
That default has occurred in the conditions of the following described mortgage:
DATE OF MORTGAGE: May 1, 2006
MORTGAGOR: Hill School of Minnesota, Inc., a Minnesota nonprofit corporation
MORTGAGEE: William Cooper
DATE AND PLACE OF RECORDING: Recorded May 16, 2006, in the office of the
Registrar of Titles, as Document No. 4260047, Hennepin County, Minnesota.
MORTGAGED PROPERTY ADDRESS: 2180 North Shore Drive, Wayzata,
Minnesota 55391
TAX PARCEL I.D. NOS. 10-117-23-31-0098
LEGAL DESCRIPTION OF PROPERTY: Lot 5 and Lots 4 and 6, except the west 69
feet thereof, Block 3, Markville, Hennepin County, Minnesota
COUNTY IN WHICH PROPERTY IS LOCATED: Hennepin
ORIGINAL PRINCIPAL AMOUNT OF MORTGAGE: $480,000.00
AMOUNT DUE AND CLAIMED TO BE DUE AS OF DATE OF NOTICE,
INCLUDING TAXES, IF ANY, PAID BY MORTGAGEE: $488,280.50
INTEREST RATE AND PER DIEM: Current interest rate is 7.50%, with a daily per
diem of$92.47.
That prior to commencement of this mortgage foreclosure proceeding Mortgagee
complied with all notice requirements by statute; That no action or proceeding has been
instituted at law or otherwise to recover the debt secured by said mortgage or any part thereof;
PURSUANT to the power of sale contained in said mortgage, the above described
property will be sold by the Sheriff of said county as follows:
DATE AND TIME OF SALE: October 29, 2010 at 10:00 a.m.
PLACE OF SALE: Hennepin County Sheriff s Office, 350 South Fifth Street, Room
30, Minneapolis, Minnesota, 55415, to pay the debt then secured by said Mortgage, taxes, if any,
on said premises, and the costs and disbursements, including attorneys' fees allowed by law
subject to redemption within six (6) months from the date of said sale by the mortgagor(s), their
personal representatives or assigns.
DATE AND TIME MORTGAGOR MUST VACATE THE PREMISES: April 29,
2011 at 11:59 p.m.
Dated: September 15, 2010 MESSERLI & KRAMER P.A.
By:
Creig Andreasen (Lic. #334832)
1400 Fifth Street Towers
100 South Fifth Street
Minneapolis, MN 55402-1217
(612) 672-3600
Attorney in Fact for William Cooper
IMPORTANT NOTICE
This communication is from a debt collector and is an attempt to collect a debt. Any information
will be used for that purpose.
ssszss.i
-2-
MEMORANDUM
TO: MAYOR AND COUNCIL MEMBERS
FROM: ORONO MANAGEMENT TEAM
SUBJECT: INFORMATION UPDATE
DATE: OCTOBER 1, 2010
Information Update—10/O1/10
• The Orono City Council and Orono School District are scheduled to meet on Monday, October 11 and
Monday October 25 at 5:30 pm in the Orono Council Chambers to continue discussions of the proposed
road improvement project for Old Crystal Bay Road.
• The Environmental Committee of the Metropolitan Council took action on September 22nd to authorize its
Regional Administrator to negotiate and execute a Construction Cooperation Agreement with the City of
Orono for improvements to Orono Orchard Road. Tom and Jessica will be meeting with Met Council staff
to work out an agreement which spells out the cost sharing for reconstruction of Orono Orchard Road.
• The City received the attached Foreclosure Notice far the Hill School property. Stephen Rosholt of Faegre
&Benson has confirmed that the Revenue Notes issued by the City for this project are payable only from
payments by Hill School and enforcement of the Mortgage. The City has no obligation to make any
payments for principal or interest. Also attached is a letter from Faegre&Benson with their approving legal
opinion(see numbered paragraph 2). The letter is followed by a copy of one of the Notes. The absence of
City liability is set forth in the paragraph beginning at the bottom of the second page of the note.
• The new and improved website will be up and running next week! Some behind-the-scenes technical
changes that will take place on Monday to move from the old site to the new site, so there may be a short
period of time when the website will not be available. We're pleased with the new look, colors,buttons,
navigability and search capabilities. Check it out on Tuesday at www.ci.arono.mn.us!
• The Fall Newsletter will be in the mail on Monday and will include an announcement about the new
website, as well as articles about the budget and tax levy, elections, comprehensive plan, tobacco-free parks,
zebra mussels,recycling and organics, fall golf rates and a few other miscellaneous topics.
• On 9-23-2010 there was a sewer back up into two homes on Forest Lake Drive and the damage caused was
a result of a power failure. The League of Minnesota Cities was called and an adjuster was sent out to
access the damage.
• After conferring with Van Erickson, we have postponed the dedication of Lurton Park until next spring
when the parking area and sign installation have been completed. Van suggested they would prefer to have
dedication ceremonies (to include City officials, family, friends, etc.) once the park improvements are
completed rather than trying to push it yet this fall. He also suggested there is no need to do a
groundbreaking ceremony. Staff is moving ahead with getting the sign made and we may still get the
parking area graded before the ground freezes, depending on weather and Public Warks schedules. Van
also indicated that they would like us to move farward with the controlled burn/prairie restoration program
as one of our initial long-term improvements. Staff will make some contacts and follow up on this with
options and costs. (MPG)
• Additional attachments:
o Metro Cities News—September 27, 2010
o Metro Cities News—October 1, 2010
The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic
file m�e asked not to "Forwarrl"or "Reply to All"concerning information contained in this email.
FAE�GRE
BENSON
«.
UNITED STATES � ENGLAND � GERMANY � CHINA
May 16,2006
City of Orono
2750 Kelley Parkway
Crystal Bay,MN 55323
William H. Cooper
200 Lake Street East
Wayzata, MN 55391
Thomas A. Cusick Revocable Trust
c/o Lowry Hill
Attn: Linda Gravenish
90 South Seventh Street, #5300
Minneapolis,MN 55402
Nigel MacLeod
3320 Maplewood Road
Deephaven,MN 55391
RE: $800,000 City of Orono,Minnesota Revenue Notes
(Hill School of Minnesota Project), Series 2006
We have acted as Bond Counsel in connection with the issuance and sale by the City
of Orono, Minnesota (the "Issuer"), a municipal corporation, of its $800,000 aggregate
principal amount of Revenue Notes (Hill School of Minnesota Project), Series 2006 (the
"Notes").
The Notes are subject to mandatory and optional redemption by the Issuer prior to
maturity at the times, in the manner, and upon the terms provided in the Notes and in the
hereinafter-described Loan Agreement. The Notes are not general obligations of the Issuer
and do not constitute a charge against the general credit or assets of the Issuer.
Tn connection with the issuance of the Notes, we have examined a certified copy of a
resolution adopted by the City Council of the Issuer in connection with the issuance by the
Issuer vf the Notes pursuant to and under the provisions of Minnesota Statutes, Sections
469.152 to 469.1651, as amended (the "Act"), an executed counterpart of the Pledge
Agreement (the "Pledge Agreement") dated as of May 1, 2006, among the Issuer and the
lenders named therein (the "Lenders"), an executed counterpart of the Loan Agreement (the
2200 WELLS FARGO CENTER I 90 SOUTH SEVENTH STREET I MINNEAPOLIS MINN$SOTA 55402-3901
TELEPHONE 612-766-7000 � FACSIMILE 612-766-1600 I WWW.FAEGRE.COM
May 16,2006
Page 2
"Loan Agreement") dated as of May 1, 2006, between the Issuer and Hill School of
Minnesota, Inc., a Minnesota nonprofit corporation (the "Borrower"), a form of the Notes,
and such other documents as we deemed relevant and necessary in rendering this opinion.
Based on such examination, and assuming the authenticity of all documents submitted
to us as originals, the conformity to original documents of all documents submitted to us as
certified or photostatic copies and authenticity of originals of such latter documents and the
accuracy of the statements contained in certificates furnished to us by the Borrower and
officials of the Issuer, and based upon federal and State of Minnesota laws, regulations,
rulings and decisions in effect on the date hereof,we are of the opinion that:
1. The Issuer is a municipal corporation under the laws of the State of Minnesota.
Pursuant to the Act, the Issuer is authorized to issue the Notes and to loan the proceeds to the
Borrower for the purpose of financing improvements to an educational facility and to
refinance existing debt of the Borrower (the "Project"), and to assign and pledge to the
Lenders the amounts payable by the Borrower, from which amounts the Notes are payable.
2. The Notes have been validly authorized, executed, and issued in accordance
with the laws of the State of Minnesota now in force and represent valid and binding limited
obligations of the Issuer. The principal of,premium, if any, and interest on the Notes shall be
payable solely from amounts to be received by the Issuer pursuant to the Loan Agreement
(other than certain indemnification rights and certain fees and expenses of the Issuer), which
amounts have been assigned to the Lenders pursuant to the Pledge Agreement.
3. The Pledge Agreement has been duly authorized, executed, and delivered by
the Issuer and, assuming due authorization, execution and delivery by the Lenders,represents
the valid and binding agreement of the Issuer enforceable in accordance with its terms.
4. The Loan Agreement has been duly authorized, executed and delivered by the
Issuer and, assuming due authorization, execution and delivery by the Borrower, represents
the valid and binding agreement of the Issuer enforceable in accordance with its terms.
5. Based on certain representations of the Borrower as to the application of the
proceeds of the Notes, under exisring laws, regulations, rulings and decisions as of the date
of issuance, (i) interest on the Notes is not includable in gross income for purposes of federal
income taxation and is not includable in taxable net income of individuals, estates or trusts
for purposes of State of Minnesota income taxation; (ii) interest on the Notes is subject to the
State of Minnesota franchise tax measured by net income and imposed upon corporations
and financial institutions; and (iii) interest on the Notes is not a specific item of tax
preference for purposes of determining the federal alternative minimum tax applicable to all
taxpayers or the Minnesota alternative minimum taac applicable to individuals, estates and
trusts. The Issuer has designated the Notes as "qualified tax exempt obligations" for
purposes of Section 265(b)(3) of the Internal Revenue Code relating to deduction of interest
expense by financial institutions.
May 16,2006
Page 3
The Internal Revenue Code of 1986, as amended (the "Code"), establishes certain
requirements (the "Federal Tax Requirements") that must be met subsequent to the issuance
of the Notes in order that, for federal income tax purposes, interest on the Notes not be
included in gross income of the owners thereof. Noncompliance with the Federal Tax
Requirements may cause interest on the Notes to become subject to federal and Minnesota
income taxation retroactive to the date of issue, irrespective of the date on which such
noncompliance occurs or is ascertained. The Loan Agreement contains provisions which, if
complied with, will satisfy the Federal Tax Requirements. In expressing the opinion in
paragraph 5 above, we have assumed compliance by the Issuer and the Borrower with the
provisions of the Loan Agreement.
6. No opinion is expressed herein regarding any other consequences of
ownership of the Notes. We express no opinion as to the validity or enforceability of the
three Mortgages, Security Agreements, Assignments of Rents and Leases and Fixture
Financing Statements nor as to the priority of lien created thereby.
The obligations of the parties, and the enforceability thereof, with respect to the documents
described above are subject, in part, to the provisions of the bankruptcy laws of the United
States of America and to other applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws relating to or affecting creditors' rights, now or hereafter in
effect. Certain of the obligations, and the enforcement thereof, contained in the Pledge
Agreement and the Loan Agreement axe also subject to general equity principles which may
limit the specific enforcement of certain remedies, but which do not affect the validity of
such documents.
�
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M1:1318897.02
. UNITED STATES OF AMERICA
• STATE OF MINNESOTA
COUNTY OF HENNEPIN
City of Orono, Minnesota
Revenue Note
(The Hill School Pmject)
Series 2006
Dated May 16,2006
No.R-1 , $480,000
The City of Orono, Minnesota, a public body corporate and politic (the "Issuer"), for
value received, hereby promises to pay to William Cooper or his registered assigns (the
"Lendec,"with the Lender and any subsequent owner of this Note being also hereinafter referred
to as the "Holder'�, by such means and manner as the Holder may designate in writing, solely
from the source and in the manner hereinafter provided, the unpaid principal balance of the
principal sum of Four Hundred Eighty Thousand Dollars ($480,000) as set forth herein. This
Note shall beaz interest on the unpaid principal amount at the rate of 5.50% per annum,
computed on the basis of a year of 360 days cansisting of twelve 30-day months.
Payment of the principal of and interest on this Note shall be made in coin or currency of
the United States of America which at the time of payment is legal tender for payment of public
; and private debts, in semiannual installments. On each May 1 and November 1 commencing
November 1, 2006 (the "Payment Dates'�, 60% of the principal and interest set forth with
respect to such date on the attached schedule shall be paid, to be applied first to accrued but
unpaid inte�rest on the unpaid principal amount of this Note,and second to the unpaid principal of
this Note. On May 1, 2026, all accrued and unpaid interest and the unpaid principal balance of
this Note shall be paid.
In the event interest on this Note shall become subject to federal income taxation
pursuant to a Determination of Taxability, the interest rate on this Note shall be increased to that
rate of interest per annum which is equal to 200 basis points in elccess of the interest rate on the
Note. For the purpose of this paragraph,a"Determination of Taxability"shall mean the issuance
of a statutory notice of deficiency by the Intemal Revenue Service; or a ruling of the National
Office or any District Office of the Intemal�Revenue Service, or a final decision of a court of
competent jurisdiction which holds that the interest payable on this Note is includable in the
gross income of the Holder for federal income tax purposes if the period, if any, for contest or
appeal of such action, ruling or decision has expired without any such contest or appeal having
been properly instituted. The expenses of any such contest shall be paid by the party initiating
the contest and neither the Issuer nor the Holder shall be required to contest or appeal any
Determination of Taxability. The"Date of Taxabi(ity"shall mean that point in time,as specified
in the determination,ruling or decision,that the interest payable on this Note becomes includable
in the gross income of the Holder for federal income tax purposes.
This Note is subject to optional or mandatory redemption at a redemption price equal to
the principal amount of the Note to be redeemed,plus accrued interest to the date of redemption,
as follows:
(a) This Note is subject to mandatory redemption in whole, at the option of
the Holder, following an "Event of DefaulY' under the Loan Agreement, dated the date
hereof(the "L,aan Agreement"), between the Issuer and Hill School of Minnesota, Inc.
(the"Boaower").
(b) This Note is subject to optional redemption at the election of the
Borrower,in whole not in part,on any date upon thirty(30)days' notice to the Holder.
(c) This Note is subject to mandatory redemption in whole, at the option of
the Borrower or the Holder, following a Determination of Taxability, on any date upon
thirty(30)days' notice to the Issuer and the Borrowcr.
This Note is issued under a resolution of the Issuer's governing body adopted on May 8,
2006(the"Resolution").
This Note is issued by the Issuer in the principal sum of 5480,000 for the purpose of
making the Loan of the proc,eeds thereof to the Borrower undec the provisions of the Loan
Agreement. Under the provisions of the Loan Agreement, the Borrower has agreed to use the
prooeeds of the loan to pay the costs related to improvements to an educational facility located at
2180 North Shore Drive in the City of Orono, Minnesota and to refinance existing debt of the
� Botrower (the "ProjecY'). Under the Loan Agreement, the Boirower has agrced to repay the
Loan, together with interest thereon, in installments scheduled to be sufficient to pay the
principal of and interest on this Note,when due. As security for the obligations of the Borrower
under the Loan Agreement, the Borrower has agueed to oonvey a lien on the Pmject to be
evidenced by the Mortgage (as defined in the Loan Agreement). The Issuer has also assigned
and pledged to the Lender the Issuer's interest in the Loan Agreement The Issuer makes no
repr�sentations as to the sufficiency of the amounts, if any, that may be realized from the
collateral in order to pay the principal of or the interest on this Note in the case of a default by
the Borrower under the Loan Agreement Reference is hereby made ta the Loan Agreement for
a description of the agreements and covenants of the Borrower contained therein.
This Note is issued pursuant to and in full compliance with the Constitution and State of �
Minnesota, particulazly Minnesota Statutes, Sections 469.152 to 469.165, as amended, and
' pursuant to the Resolution. This Note is not a general obligation of the Issuer, and the taxing
power or general assets or revenues of the Lssuer are not pledged to the payment of this Note or
the interest thereon. This Note is a special limited obligation of the Issuer. Principal of and
interest on this Note is payable solely out of the revenues derived from the Loan Agreement and
enforcement of the Mortgage. The State of Minnesota, the County of Hennepin and the Issuer
shall not in any event be liable for the payment of the principal of or interest on this Note or for.
the perfonnance of any pledge, mortgage, obligation or agreement of any kind whatsoever that
may be undertaken by the Issuer. Neither this Note nor any of the agreements or obligations of
the Issuer shall be construed to constitute an indebtedness of the State of Minnesota,the County
� of Hennepin or the Issuer within the meaning of any constitutional or statutory provisions
.,�•
whatsoever, nor constitute or give rise.to a pecuniary or moral obligation or be a charge against
the general credit or taxing powers of the State,Hennepin County or the Issuer.
This Note shall be registered and shall be transferable upon the books of the Issuer at the
office of the Issuer by the Holder hereof in person or by the Holder's attorney duly authorized in
writing, upon surrender hereof together with a written instivment of transfer satisfactory to the
Issuer,duly executed by the Holder or the Holder's duly authorized attorney. Upon such transfer
the Issuer wiil note the date of registration and the name and address of the new Holder upon the
books of the Issuer and in the registration blank appearing below. Alternatively, the Issuer will
at the request and expense of the Holder issue a new note or notes in an aggregate principal
amount equal to the unpaid principal balance of this Note, and of like tenor except as to number,
principal amount and the number and amount of the installments payable thereunder, and
registered in the name of the Holder or such transferee as may be designated by the Holder. The
Issuer may deem and treat the pecson in whose name this Note is last reg'�stered upon the books
of the Issuer with such registration also noted on the Note, as the absolute owner hereof,whether
or not overdue, for the purpose of receiving payment of or on account of the principal balance,
prepayment price, or interest and for all other purposes, and all such payments so made to the
Holder or upon its order shall be valid and effectual to satisfy and discharge the liability upon
this Note to the extent of the sum or sums so paid, and the Issuer shall not be affected by any
notice to the contrary.
Time is of the essence under this Note. If an"Event of DefaulY' occurs under the Loan
Agreemen�, or if any other event occurs which entitles the Holder to accelerate payment under
the Loan Agreement, then the Holder may at its right and option (subject, however, to such
' _� notice as may be required under the Loan Agreement) declare immediately due and payable the
principal balance of this Note, the premium, if any, due hereon, and interest accxued thereon to
the date of declaration of such default, together with any attorneys' fees incurred by the Holder
in collecting or enforcing paym�t thereof,whether suit be brought or not,and all other sums due
hereunder,in which event this Note shall be prepaid in accordance with the provisions hereof.
The Holder shall not be deemed,by any act of omission or commission,to have waived
any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder
and then only to the extent specifically set forth in the writing. A waiver with reference to one
event shall not be construed as continuing or as a baz to or waiver of any right or remedy as to
any subsequent even�
It is intended that this Note is made with reference to and shall be construed as a
Minnesota contract and governed by the laws thereof.
The Issuer has designated this Note as a "qualified tax-exempt obligation" pursuant to
Section 265(b)(3)of the Internal Revenue Code of 1986,as amended.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things
required to exist, happen, and be performed precedent to or in the issuance of this Note do exist,
have happened and have been performed in regular and due form as required by law.
PROVLSIONS AS TO REGISTRATION
The ownership of the unpaid principal balance of this Note and the interest accruing
thereon is registered on the books of the City of Orono,Minnesota,in the name of the
registered holder last noted below.
Signature of
Date of Name and Address of City Clerk,
Registration Regist�red Holder As Note Re i� strar
May 16,2006 William Cooper
TCF Bank
200 Lake Street East
Wayzata,MN 55491
July 15,2008 Thomas A. Cusick ; �ielu `/��
Revocable Trust
2637 Bulrush Lane
Naples,FL 34105
PROVISIONS AS TO REGISTRATION
The ownership of the unpaid principal balance of this Note and the interest accruing
thereon is registered on the books of the City of Orono, Minnesota, in the name of the
registered holder last noted below.
Signature of
Date of Name and Address of City Clerk,
Registration Registered Holder As Note Re i�
May l6,2006 William Cooper
TCF Bank
200 La1ce Street East
Wayzata, MN 55391
July I5, 2008 Thomas A. Cusick
Revocable Trust
2637 Bulru.sh Lane
Naples,FL 34105
�
June 15,2009 William Cooper
TCF Bank
200 Lake Street East
Wayzata,MN 55391
. IN WITTiESS WHEREOF, the Issuer has caused thi.s Note to be duly executed by the
� manual or facsimile signature of its Mayor and City Clerk.
CITY OF ORONO,MINNESOTA
By ���c�� �a'�
Its Mayor
By G��� !/-e-�-
Its City Clerk,
.
June 15,2009
City of Orono,Minnesota
Orono Village Hall
PO Box 66
Crystal Bay,MN 55323
RE: Hill School of Minnesota, Inc.
School Facility Bonds
2180 North Shore Drive
Wayzata,MN 55391
Ladies and Gentlemen:
I,Thomas A. Cusick Revocable Trust,the registered holder of the attached
Revenue Note, Series 2006(The Hill School of Minnesota Project)issued by the City of
Orono,Minnesota(the"City'�in the aggregate principal amount of$480,000(the
"Note")hereby transfer and assign the Note to William A.Cooper whose address is 200
Lake Street East,Wayzata,MN 55391. I request the City to register such transfer as of
the date hereof on the books of the City and on the registration form attached to the Note
in accordance with the terms of the Note.
Very truly yours,
�
Thomas A. Cusick Revocable Trust
Signature Guazantee .
�
.;`