HomeMy WebLinkAbout06-076 - ADMIN Resolution - City Council - 2006/05/01RESOLUTION NO. 06-076
RESOLUTION APPROVING LOAN AGREEMENTS BETWEEN
THE CITY OF ST. LOUIS PARK AND PPL LOUISIANA COURT
LIMITED PARTNERSHIP AND RELATED DOCUMENTS
BE IT RESOLVED by the City Council of the City of St. Louis Park as follows.
Section 1. Recitals.
1.01. On May 1, 2000, the City issued its General Obligation Bonds (Louisiana Court
Project), Series 2000A (the "Bonds") and lent the proceeds thereof to PPL Louisiana Court
Limited Partnership, a Minnesota limited partnership (the "Borrower"), who agreed to apply
such proceeds to finance the acquisition and rehabilitation of a 130 -unit multifamily rental
housing facility within the City known as Louisiana Court (the "Project"), and
1.02. Enterprise Social Investment Corporation has replaced U.S. Bank as the Borrower's
limited partner, and has committed approximately $1,500,000 m additional equity to ensure the
long-term improvement and viability of the Project; and
1.03. The Council has determined that it is in the best interests of the City to provide certain
additional financial assistance to the Project m order to improve and retain affordable housing in the
City; and
1.04. There has been presented before the Council a form of loan agreement between the
City and the Borrower (the "Loan Agreement"), providing for a deferred loan to the Borrower in the
amount of $400,000 (the "Loan") Community Development Block Grant ("CDBG") funds
available to the City for 2005 will fund $188,900 of the Loan and 2006 CDBG funds will fund an
additional $80,000 of the Loan. The City intends to use $131,100 in City or Economic
Development Authority development account funds to immediately fund the remaimng $131,100 of
the Loan, but subject to the passage of proposed amendments to Minnesota Statutes, Sections
469.174-469.179, the City expects to repay this amount using from tax increment available for
affordable housing related activities from the City's Park Center Tax Increment Financing District,
as provided in the City's' resolution approving an inter -fund loan for this purpose; and
1.05. The Council has reviewed the Loan Agreement and finds that the execution of the
same and the City's performance of its obligations thereunder are m the best interest of the City and
its residents
Section 2. Loan Agreement and Related Documents Approved.
2.01. The Loan Agreement, as presented to the City, is 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 such document by such officials shall be
conclusive evidence of its approval.
2.02. The City Manager is authonzed and directed to allocate its 2005 CDGB funds to fund
$188,900 of the Loan, its 2006 CDGB funds to fund $80,000 of the Loan, and to determine any
other immediate source for the remaining $131,100 of the Loan.
Resolution No. 06-076 -2-
2.03. The Mayor and City Manager are hereby authorized to execute the Loan Agreement
on behalf of the City and to carry out, on behalf of the City, the City's obligations thereunder.
2.04. The Mayor and City Manager are also authorized to execute a Note, a Mortgage, a
Master Subordination Agreement and Estoppel Certificate and a Master Disbursement Agreement
among the City, the Borrower and vanous other parties, providing the terms, disbursement and lien
priority of the City's loan along with various other loans being made in connection with the Project,
the form of which shall be approved by the City's legal counsel, Mayor and City Manager, provided
that execution of such documents by City officials shall be conclusive evidence of their approval.
Mayor and City Manager are further authonzed to execute any collateral certificates or
ents necessary to carry out the Loan transaction.
ed for Administration:
.may Mary
Attest:
Adopted by the City Council May 1, 2006
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City Clerk ��