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HomeMy WebLinkAbout12-115 - ADMIN Resolution - City Council - 2012/08/20RESOLUTION NO. 12-115 APPROVING AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT IN CONNECTION WITH HOUSING IMPROVEMENTS WITHIN THE WESTWOOD VILLA ASSOCIATION HOUSING IMPROVEMENT AREA BE IT RESOLVED by the City Council ("Council") of the City of St. Louis Park (the "City") as follows: Section 1. Recitals. 1.01. The City is authorized under Minnesota Statutes, Sections 428A.11 to 428.21 (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. The Council adopted a Housing Improvement Area policy on July 16, 2001. 1.02. In order to facilitate Housing Improvements to property known as the "Westwood Villa Association" the Council on May 7, 2012, established the Westwood Villa Association Housing Improvement Area by Ordinance No. 2413-12 (the "Enabling Ordinance") and approved a Housing Improvement Fee (the "Fee") by Resolution 12-066. 1.03. Pursuant to the Enabling Ordinance, the City entered into a Development Agreement (the "Agreement") between the City and the Westwood Villa Association (the "Association"), dated as of July 1, 2012, under which the City agreed to make a loan of funds legally available for such purpose (the "Loan") to the Association to finance the Housing Improvements as described in the Agreement. The Agreement provides that the Loan will be funded both from the proceeds of an internal loan from the EDA Development Fund (the "Internal Loan"), as provided in the Internal Loan Resolution adopted by the EDA on July 16, 2012, and from the proceeds of the City's taxable general obligation housing improvement area bonds, to be issued in September of 2012. 1.04. Due to lower costs to construct the Housing Improvements and higher levels of prepayment of the Fee than anticipated, the City has determined that the entire Loan may be funded from the proceeds of the Internal Loan, and that it is not necessary to issue bonds to finance the Westwood Villa Housing Improvements. 1.05. .The City and the Association have agreed that it is necessary to amend and restate the Development Agreement to reflect the City's determination not to issue bonds to finance the Housing Improvements, and have proposed to enter into an Amended and Restated Development Agreement (the "Amended Agreement") in the form presented to the Council. Section 2. Amended Agreement approved. 2.01. The Amended Agreement as presented to the Council 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 Deputy City Manager, provided that execution of the document by such officials shall be conclusive evidence of approval. The Mayor and Deputy City Manager are hereby authorized to execute, on behalf of the City, the Amended Agreement. Resolution No. 12-115 Reviewed for Administration: Attest City Clerk -2- Adopted by the City Council