FINANCIAL_SERVICESPENDING

City of Grand Forks Staff Report Mortgage & Assignment of Rents Subordination Request – 116 S. 3rd St. 2026-05-11

Proposed subordination of City lien to Choice Bank loan

$2,400,000 (narrative) / $2,386,064.67 (draft mortgage amount)City of Grand ForksCHOICE BANKMay 11, 2026

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Description

The City of Grand Forks is considering a request to subordinate its CDBG-backed mortgage and assignment of rents on 116 S. 3rd St. to a new $2.4 million, 36‑month loan from Choice Bank to Rhombus House of Pizza, LLC. The proposed subordination would place Choice Bank’s mortgage in senior lien position on the Metropolitan Opera House property.

Contract Details

Contract Amount

$2,400,000 (narrative) / $2,386,064.67 (draft mortgage amount)

Vendor

CHOICE BANK

Agency

City of Grand Forks, Canada

Contract Type

FINANCIAL_SERVICES

Document Date

May 11, 2026

Contract Term

36 months at 6% interest, mortgage dated in 2026 (exact dates TBD)

Renewal Info

Draft subordination agreements state that the City’s subordinated debt will remain fully subordinate to the Choice Bank senior mortgage for the full extent of all sums secured, including interest, protective advances, and collection costs. No explicit renewal or extension options for the subordination term are described.