HomeMy WebLinkAbout26-03 - ADMIN Resolution - Economic Development Authority - 2026/01/20
EDA Resolution No. 26-03
Approving a subordination agreement with Bigos-9920 Wayzata, LLC
and JLL Real Estate Capital, LLC
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; authorization.
1.01. The authority and Bigos-9920 Wayzata, LLC, a Minnesota limited liability
company (the “redeveloper”), entered into a purchase and redevelopment contract, dated
March 21, 2022, as amended by the first amendment to purchase and redevelopment contract,
dated June 6, 2022 (together, the “redevelopment agreement”), pursuant to which the
authority agreed to convey certain property located in the City of St. Louis Park, Minnesota (the
“city”) to the redeveloper, and the redeveloper agreed to construct thereon approximately 233
units of multifamily rental housing and approximately 203 structured parking stalls (the
“minimum improvements”). The authority issued a Tax Increment Revenue Note, Series 2024
(Bigos Development Project), in the original principal amount of $6,045,000 (the “TIF note”) in
accordance with the redevelopment agreement to make the minimum improvements
economically feasible.
1.02. On Nov. 3, 2025, the board approved the execution and delivery of a consent to
a collateral assignment of tax increment note and redevelopment agreement between the
redeveloper and JLL Real Estate Capital, LLC, a Delaware limited liability company (the
“lender”), as a requirement for the lender providing a mortgage loan in the approximate
amount of $53,235,000 (the “loan”) to the redeveloper, pursuant to which the redeveloper will
assign certain rights under the redevelopment agreement and the TIF note to the lender.
1.03. In connection with the loan, the lender also requires that the authority
subordinate the lien of the redevelopment agreement to the lien of the multifamily mortgage,
assignment of rents, security agreement and fixture filing to be executed and delivered by the
redeveloper in favor of the lender to secure the loan and the other documents evidencing and
securing the loan (collectively, the “loan documents”).
1.04. There has been presented to the board a form of subordination agreement for
regulatory agreement (the “subordination agreement”) between the authority, the
redeveloper, and the lender, pursuant to which the authority agrees to subordinate the lien of
the redevelopment agreement (referred to as the “regulatory agreement” in the subordination
agreement) to the lien of the loan documents.
Section 2. Approval of the subordination agreement.
2.01. The board approves the subordination agreement in substantially the form
presented to the board, together with any related documents necessary in connection
therewith.
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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 subordination
agreement 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 subordination agreement shall be in substantially the form on file with the authority and
the approval hereby given to the subordination agreement includes approval of such additional
details therein 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 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 subordination
agreement 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 on their behalf. Upon
execution and delivery of the subordination agreement, 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 subordination agreement.
Section 3. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the Economic Development
Authority January 20, 2026:
Karen Barton, executive director Yolanda Farris, president
Attest:
Melissa Kennedy, secretary
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