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
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Adopted by the City Council