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HomeMy WebLinkAbout06-03 - ADMIN Resolution - Economic Development Authority - 2006/01/17ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 06-03 RESOLUTION APPROVING FIFTH AMENDMENT OF CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY AND MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT LLC AND A RELATED SUBORDINATION AGREEMENT WHEREAS, the St. Louis Park Economic Development Authority (the "Authority") and the City of St. Louis Park ("City") have entered in an Amended and Restated Contract for Private Redevelopment with Meridian Properties Real Estate Development LLC ("Meridian") dated July 23, 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, and a Fourth Amendment thereto dated November 1, 2004 (the "Contract") setting forth the parties' respective responsibilities in the redevelopment of certain property (the "Redevelopment Property") in the City; WHEREAS, the development described in the Contract is consistent with the Authority's Redevelopment Project No. 1 ("Project"), administered by the Authority under Minnesota Statutes, Section 469.001 to 469.047; WHEREAS, the parties desire to modify certain terms of the Contract, including the minimum improvements to be constructed upon the Redevelopment Property (the "Improvements"), by executing a Fifth Amendment thereto; WHEREAS, Meridian is assigning certain of its rights and obligations under the Fifth Amendment of the Contract to Excelsior & Grand III LLC ("Redeveloper") under an Assignment and Assumption Agreement; WHEREAS, U.S. Bank National Association, a national banking association (the "Lender"), is making a loan to the Redeveloper for the construction of the Improvements set forth in the Fifth Amendment (the "Loan"), and in connection with the Loan has requested that the Authority and City enter into a Subordination Agreement among the Lender, City, Authority and Redeveloper (the "Subordination Agreement"); NOW, THEREFORE, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The Authority finds that amendment of the Contract by execution of the Fifth Amendment thereto is in the public interest because it will further the objectives of the redevelopment plan for the Project. EDA Resolution No. 06-03 -2- 2. The Authority further finds that execution of the Subordination Agreement is in the public interest because it will further the objectives of the redevelopment plan for the Project. 3. The Authority approves the execution of the Fifth Amendment and Subordination Agreement, and authorizes and directs the President and Executive Director to execute the Fifth Amendment and Subordination Agreement in substantially the form on file with the Authority, subject to modifications approved by those officials that do not alter the substance of the transaction, which approval shall be conclusively evidenced by the execution thereof. Approved by the Board of Commissioners of the St. Louis Park Economic Development Authority this 17th day of Januarx2006. laW ATTEST: WON 01 rt I / / Its 19xecutive Director