Item Description:
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Subordination, Non-Disturbance, and Attornment Agreement to Lease Agmt A153899 with Woodlake Centre MOB, LLC and Alerus Financial, N.A. (No change to lease terms)
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Resolution:
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BE IT RESOLVED, that the Chair of the Board be authorized to sign the Subordination, Non-Disturbance, and Attornment Agreement related to Lease Agreement A153899 on behalf of the county.
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Background:
On August 25, 2015 Hennepin County Board adopted Resolution No. 15-0315 to lease 20,188 square feet of space in a building located at 6625 Lyndale Avenue South, Richfield (“Property”). Hennepin County Human Services operates an office from this location. The lease term (Agreement A153899) expires on December 31, 2026.
The Subordination, Non-Disturbance, and Attornment Agreement (SNDA) is a document between Hennepin County (tenant) and Alerus Financial, N.A. (landlord mortgage lender) that lays out certain rights between the parties. The SNDA will establish the priority of the lender’s mortgage lien and ensure the county’s right to occupy the leased premises in the event of a foreclosure. This is a standard practice in the event of a property sale or refinance.
Current Request: Approval of the negotiation and execution of a Subordination, Non-Disturbance, and Attornment Agreement to Lease Agmt A153899 with Woodlake Centre MOB, LLC, and Alerus Financial, N.A. for the Property at 6625 Lyndale Avenue South, Richfield, is requested.
Impact/Outcomes: Approval of the SNDA will not change the terms to Lease Agreement A153899 or impact operations for Human Services at 6625 Lyndale Avenue South, Richfield.
recommendation
Recommendation from County Administrator: Recommend Approval