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HomeMy WebLinkAbout25-159 - ADMIN Resolution - City Council - 2025/12/01 Resolution No. 25-159 Approving amendment contract for private development with Beltline Apartments Limited Partnership and execution of documents relating thereto Be it resolved by the city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) as follows: Section 1. Recitals. 1.01. The city and the St. Louis Park Economic Development Authority (the “authority”) 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 city 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 city 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 city and the authority agreed to provide certain financial assistance to the minimum improvements. 1.04. The agreement 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 minimum improvements. 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 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 city and providing taxable financing (collectively, the “senior financing”). Docusign Envelope ID: 37C10A08-89B5-4E08-9DD2-84E158031B4F 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 city council hereby approves the first amendment in substantially the form presented to the city council, 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 city of the following documents, forms of which are on file with the city (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 city under the agreement to those of the senior lender and the senior financing; and (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. 2.02. The city council hereby authorizes the mayor and city manager, in their discretion and at such time, if any, as they may deem appropriate, to execute the development documents on behalf of the city, and to carry out, on behalf of the city, the city’s obligations thereunder when all conditions precedent thereto have been satisfied. The development documents shall be in substantially the form on file with the city 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 city 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 city. The execution of any instrument by the appropriate officers of the city 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 city council by any duly designated acting official, or by such other officer or officers of the city council as, in the opinion of the city attorney, may act in their behalf. Docusign Envelope ID: 37C10A08-89B5-4E08-9DD2-84E158031B4F Upon execution and delivery of the development documents, the officers and employees of the city council are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the city council 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 city council December 1, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Docusign Envelope ID: 37C10A08-89B5-4E08-9DD2-84E158031B4F