HomeMy WebLinkAbout10-148 - ADMIN Resolution - City Council - 2010/12/06•
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CITY OF ST. LOUIS PARK
RESOLUTION NO. 10-148
RESOLUTION APPROVING A LOAN AGREEMENT BETWEEN
THE CITY OF ST. LOUIS PARK AND PPL LOUISIANA COURT
LIMITED PARTNERSHIP AND RELATED DOCUMENTS
BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park (the
"City") 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"), which 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").
1.02. On May 1, 2006, the City approved additional financial assistance to the Borrower in
the form of a loan in the principal amount of $400,000 to stabilize and improve the Project.
1.03. The Council has now determined that it is m the best interests of the City to provide
certain additional financial assistance to the Borrower in order to further improve the Project and
retain affordable housing in the City.
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 $500,000 (the "Loan"). The City will use tax increments from the City's Park Center
TIF District to fund the Loan.
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 in the best mterest 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 authorized and directed to allocate Park Center tax increments in
the maximum amount available to fund the Loan.
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.
Resolution No. 10-148 -2-
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 various other funding sources, 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. The Mayor and City Manager are further authorized to execute any collateral certificates
or documents necessary to carry out the Loan transaction.
pproved by the City Council of the City of St. Louis Park this 6th day of December, 2010.
Revie fo Administration
NCE:a iV.
City41 ID
Attest:
City Clerk
y the City Council December 6, 2010