IV.9. Partial Release of Mortgage – 100 19th Avenue South; Beekman (CR2017-040)February 21, 2017 Council Report 2017-040
Partial Release of Mortgage – 100 19th Avenue South
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2017-
019 Approving a Partial Release of Mortgage at 100 19th Avenue South.
Overview
The City of Hopkins funds a housing rehabilitation program using CDBG funds. As part
of that program the city provides deferred forgivable loans to certain property owners to
assist with maintenance and upkeep. One such loan was provided for the property at
100 19th Avenue South. A mortgage is placed on the property for the duration of the
loan and requires the funds to come due in the event that all or part of the property is
sold.
In October 2016, the City approved an administrative subdivision of the property at 100
19th Avenue South in order to allow a small portion that property to be combined with a
neighboring lot, allowing better access to the neighboring property. As a result of the
subdivision, the City is now being asked to allow a release of mortgage of the
subdivided portion of land. The mortgage would remain on the original property where
the home that received the improvements is located.
Supporting Information
Resolution 2017-019
Certificate of Survey showing subdivided portion of property
___________________________
Meg Beekman
Community Development Coordinator
Council Report 2017-040
Page 2
Analysis of the Issues
With approval of this resolution, the City will be releasing the mortgage lien from the
portion of property that is being subdivided and combined with the neighboring lot;
however, the mortgage would remain on the original property where the home is
located.
Alternatives
The Council has the following alternatives:
Approve Resolution 2017-019
Deny Resolution 2017-019
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RESOLUTION NO. 2017-019
CITY OF HOPKINS, MINNESOTA
RESOLUTION APPROVING A PARTIAL RELEASE OF MORTGAGE
FOR THE PROPERTY LOCATED AT 100 19TH AVENUE SOUTH
WHEREAS, Daniel J. Nichols and Sharon L. Nichols are the fee owners (the “Owners”) of the
property located at 100 109th Avenue South in the City of Hopkins, (the “Property”), which is
legally described on Exhibit A, attached hereto ; and
WHEREAS, the Owners granted the city of Hopkins (the “City”) a mortgage dated
December 10th, 2014 in an amount of $45,720.00 (the “Mortgage”); and
WHEREAS, the Mortgage was filed with the Hennepin County property records on or about
December 17th, 2015 as Document number T05314113; and
WHEREAS, the Owners have requested that the City provide a partial release of the Mortgage
to allow them to convey a portion of the Property to a neighbor; and
WHEREAS, a copy of the partial release of mortgage is attached hereto as Exhibit B; and
WHEREAS,the City’s interest in the Mortgage will remain unchanged following a partial
release of the Mortgage, as the full amount of the Mortgage will remain encumbered upon the
land remaining under the ownership of the Owners.
NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Hopkins hereby
approves the adoption of this Resolution approving a partial release of the mortgage at 100 19th
Avenue South, Hopkins. City staff is directed to prepare any other documents that may be
required to effectuate this transaction.
ADOPTED by the City Council on February 21st, 2017.
_______________________
Molly Cummings, Mayor
ATTEST:
______________________
Amy Domeier, City Clerk
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A-1
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
All that part of the Southeast Quarter of the Southeast Quarter of Section 23, Township 117,
Range 22 described as follows: beginning at the point of intersection of the north line of the right
of way of the Chicago, Milwaukee and St. Paul Railway Company with a line parallel with and
660 feet west at right angles from the east line of said Quarter-Quarter, thence North 495.3 feet
to a point of beginning of the land to be described; thence North parallel with the east line of said
Southeast Quarter of the Southeast Quarter a distance of 97 feet; thence West at right angles a
distance of 168 feet; thence South at right angles a distance of 97 feet; thence East at right angles
to the point of beginning, Hennepin County, Minnesota.
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B-1
EXHIBIT B
FORM OF PARTIAL RELEASE OF MORTGAGE
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B-2
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B-3