HomeMy WebLinkAbout25-36 - ADMIN Resolution - Economic Development Authority - 2025/12/01EDA Resolution No. 25-36
Approving amendment contract for private development with
Beltline Apartments Limited Partnership and execution of
documents relating thereto
Be it resolved by the board of commissioners (the “board”) of the St. Louis Park
Economic Development Authority (the “authority”) as follows:
Section 1. Recitals.
1.01. The authority and the City of St. Louis Park, Minnesota (the “city”) have
heretofore approved the establishment of the Beltline Station Tax Increment Financing District
No. 1 (the “TIF district”), a housing district within Redevelopment Project No. 1 (the “project”),
and have adopted a tax increment financing plan for the purpose of financing certain
improvements within the project.
1.02. The authority has heretofore created an Affordable Housing Trust Fund, which is
funded in part with pooled tax increment derived from property within certain tax increment
financing districts within the authority as provided in Laws of Minnesota 2022, First Special
Session, Chapter 14, Article 9, Section 5.
1.03. To facilitate the development of certain property within the project and TIF
district, the authority, the city, and Beltline Apartments Limited Partnership, a Minnesota
limited partnership (the “developer”), have executed and delivered an amended and restated
contract for private development (the “original agreement”) relating to the construction of
approximately 82 units of affordable multifamily rental housing together with approximately 59
underground parking spaces (the “minimum improvements”) whereby the authority and the
authority agreed to provide certain financial assistance to the minimum improvements.
1.04. Among other things, the agreement provides for the issuance by the authority of
a tax increment revenue note to the developer in the maximum principal amount of $804,000
(the “TIF note”), authorizes the loan of proceeds of funds from the city’s affordable housing
trust fund (the “city AHTF loan”) in the principal amount of $1,793,238 to the developer and
sets forth certain other conditions for the construction of the affordable minimum
improvements. The agreement also contemplates that the authority will use the proceeds of a
grant in the amount $300,000 (the “SWCW grant”) for costs related to the minimum
improvements, made by the County of Hennepin from the County’s Bottineau and Southwest
Community Works Programs.
1.05. To allow the developer to perform certain obligations under the original
agreement, Cedar Rapids Bank and Trust, an Iowa banking corporation, in its capacity as lender,
together with any other permitted co-lenders and their respective successors and/or permitted
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assigns (collectively, “senior lender”), has agreed to provide the developer with financing by
purchasing the tax-exempt conduit revenue obligations to be issued by the authority and
providing taxable other taxable financing to the dev eloper (collectively, the “senior financing”).
1.06. The authority, the city, and the developer have negotiated a first amendment to
the amended and restated contract for private development (the “first amendment” and
together with the original agreement, the “agreement”) and to update certain provisions to
reflect the senior financing and requirements for disbursement of certain funds provided by the
city and the authority.
Section 2. The first amendment and related documents.
2.01. The board hereby approves the first amendment in substantially the form
presented to the board, together with any related documents necessary in connection
therewith, including all documents necessary for this transaction and including without
limitation all documents, exhibits, certifications, or consents referenced in or attached to the
first amendment, including without limitation the amended mortgage (all as defined in the first
amendment) (the “AHTF loan documents”). In addition, in order to provide the senior financing,
the senior lender requires the execution and delivery by the authority of the following
documents, forms of which are on file with the authority (the “additional lender documents”
and together with the AHTF loan documents, the “development documents”): (i) a master
subordination agreement between the senior lender, the city, and the authority, and such other
parties as may be required to the senior lender, pursuant to which the authority and the city
agree to subordinate their right to, title to, and interest in the development property and the
rights and the remedies and options of the authority under the agreement to those of the
senior lender and the senior financing; (ii) a master loan disbursement agreement between the
developer, the senior lender, the authority, the city, a title company selected by the developer,
and other parties required by the Lender in order to disburse the proceeds of the city AHTF loan
and the SWCW grant; and (iii) two collateral assignments of interest under tax increment
revenue note between the developer and the senior lender and acknowledged by the authority,
pursuant to which the authority consents to the assignment of the TIF note by the developer to
the senior lender.
2.02. The board hereby authorizes the president and executive director, in their
discretion and at such time, if any, as they may deem appropriate, to execute the development
documents on behalf of the authority, and to carry out, on behalf of the authority, the
authority’s obligations thereunder when all conditions precedent thereto have been satisfied.
The development documents shall be in substantially the form on file with the authority and
the approval hereby given to the development documents includes approval of such additional
details therein and such additional documents as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by legal counsel to the authority and by the officers authorized
herein to execute said documents prior to their execution; and said officers are hereby
authorized to approve said changes on behalf of the authority. The execution of any instrument
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by the appropriate officers of the authority herein authorized shall be conclusive evidence of
the approval of such document in accordance with the terms hereof. This resolution shall not
constitute an offer and the development documents shall not be effective until the date of
execution thereof as provided herein.
2.03. In the event of absence or disability of the officers, any of the documents
authorized by this resolution to be executed may be executed without further act or
authorization of the board by any duly designated acting official, or by such other officer or
officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon
execution and delivery of the development documents, the officers and employees of the
board are hereby authorized and directed to take or cause to be taken such actions as may be
necessary on behalf of the board to implement the development documents, including without
limitation the issuance of tax increment revenue obligations thereunder when all conditions
precedent thereto have been satisfied and reserving funds for the payment thereof in the
applicable tax increment accounts.
Section 4. Effective Date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the Economic Development
Authority December 1, 2025:
Karen Barton, executive director Sue Budd, president
Attest:
Melissa Kennedy, secretary
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