HomeMy WebLinkAbout13-129 - ADMIN Resolution - City Council - 2013/09/03RESOLUTION NO.13-129
RESOLUTION APPROVING AMENDED AND RESTATED SUBORDINATION
AGREEMENT BETWEEN OAK GROVE COMMERCIAL MORTGAGE, LLC, THE ST.
LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF ST. LOUIS
PARK, AND EXCELSIOR & GRAND LLC
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
("Meridian") 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, a Fourth Amendment
thereto dated November 1, 2004, and a Fifth Amendment dated December 1, 2006 (as amended, the
"Contract") setting forth the parties' respective responsibilities in the redevelopment of certain
property (the "Redevelopment Property") in the City, all pursuant to Minnesota Statutes, Sections
469.090 to 469.108 ("EDA Act") and 469.001 to 469.047 ("HRA Act").
1.02. Pursuant to an Assignment and Assumption Agreement dated December 1, 2001,
Mendian assigned certain of its rights and obligations under the Contract for the construction of
certain improvements known as Phase I to Excelsior & Grand LLC (the "Redeveloper").
1.03. Glaser Financial Group, Inc. ("Glaser") made a loan to the Redeveloper for the
construction of the Phase I improvements (the "Loan"), and in connection with the Loan the
Authority and City entered into a Subordmation Agreement among Glaser, City, Authority and
Redeveloper (the "Subordination Agreement").
1.04. The Redeveloper now desires to refinance the Loan (the "Refinancing") through
Oak Grove Commercial Mortgage, LLC (the "Lender") and has requested that the Authority and
City enter into an Amended and Restated Subordination Agreement with the Lender and
Redeveloper in connection with the Refinancing.
1.05. The Council has reviewed the Amended and Restated 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.
Section 2. City Approval; Further Proceedings.
2.01. The Amended and Restated Subordination 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 City Manager, provided that execution of the
document 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 Amended and Restated Subordination Agreement and any documents referenced therein
requiring execution by the City, and to carry out, on behalf of the City its obligations thereunder.
R
tion No. 13-129 -2-
Review= %Admirnstration:
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on:
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Attest
City Clerk
Adopted b
Mayo
the ity Council September 3, 2013
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