HomeMy WebLinkAbout06-012 - ADMIN Resolution - City Council - 2006/01/17RESOLUTION NO. 06-012
RESOLUTION APPROVING FIFTH AMENDMENT OF CONTRACT
FOR PRIVATE REDEVELOPMENT BETWEEN THE ST. LOUIS PARK
ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF ST.
LOUIS PARK, AND EXCELSIOR & GRAND III LLC AND A
RELATED SUBORDINATION AGREEMENT
BE IT RESOLVED By the City Council ("Council") of the City of St. Louis Park,
Minnesota ("City") as follows:
Section 1. Recitals.
1.01. The City, Authonty and Meridian Properties Real Estate Development LLC
("Mendian") entered into a Contract for Private Redevelopment dated January 16, 2001, as
amended by a First Amendment thereto dated March 3, 2003, a Second Amendment thereto
dated September 15,, 2003, a Third Amendment thereto dated October 7, 2003, and a Fourth
Amendment thereto, dated November 1, 2004 (the "Contract") setting forth the parties'
respective responsibilities in the redevelopment of certain property (the "Redevelopment
Property") in the City (the "Contract"), all pursuant to Mmnesota Statutes, Sections 469.090
to 469.108 ("EDA Act") and 469.001 to 469.047 ("HRA Act").
1.02 The parties desire to modify certain terms of the Contract, including the
minimum improvements to be constructed upon the Redevelopment Property (the
"Improvements"), by executing a Fifth Amendment thereto.
1.03. Mendian is assigning certain of its rights and obligations under the Fifth
Amendment of the Contract to Excelsior & Grand III LLC (the "Redeveloper") under an
Assignment and Assumption Agreement.
1.04. U.S. Bank National Association, a national banking association (the
"Lender"), is making a loan to the Redeveloper for the construction of the Improvements set
forth in the Fifth Amendment (the "Loan"), and in connection with the Loan has requested
that the Authority and City enter into a Subordination Agreement among the Lender, City,
Authonty and Redeveloper (the "Subordination Agreement").
1.05. The Council has reviewed the Fifth Amendment and the Subordination
Agreement and finds that the execution thereof and performance of the City's obligations
thereunder are in the best interest of the City and its residents.
Resolution No. 06-012 -2-
Section 2. Authority Approval; Further Proceedings.
2.01. The Fifth Amendment and the Subordination Agreement as presented to the
Council are hereby in all respects approved, subject to modifications that do not alter the
substance of the transaction and that are approved by the Mayor and City Manager,
provided that execution of the documents by such officials shall be conclusive evidence of
approval.
2.02. The Mayor and City Manager are hereby authorized to execute on behalf of
the City the Fifth Amendment and the Subordination Agreement and any documents
referenced therein requiring execution by the City, and to carry out, on behalf of the City its
obligations thereunder.
Approved by the City Council of the City St. Louis Park, Minnesota this 17th day
of January, 2006.
ATTEST:
---nce,41 9._.)0,
City Clerk
Its City Manager