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HomeMy WebLinkAbout05-01 - ADMIN Resolution - Economic Development Authority - 2005/01/03ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 05-01 RESOLUTION APPROVING EXECUTION OF A CONTRACT FOR PRIVATE DEVELOPMENT INCLUDING SALE OF REAL ESTATE BETWEEN THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY AND 4100 VERNON DEVELOPERS LLC BE IT RESOLVED By the Board of Commissioners ('Board") of the St. Louis Park Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act"), and is currently administering Redevelopment Project No. 1 ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"). 1.02. There has been presented before the Authority a Contract for Private Development (the "Contract") between the Authority and 4100 Vernon Developers LLC ("Redeveloper"), setting forth the terms and conditions under which the Authority will sell the property described therein, located in the Redevelopment Project and commonly known as the Brookside School Property ("Redevelopment Property") described on Exhibit A. 1.03. The Contract will provide for the sale of the Redevelopment Property to the Redeveloper for construction of a residential project, contingent on the Authority accepting the Assignment and purchasing the Redevelopment Property from the School District. 1.04. Pursuant to the Contract, the Authority is providing project assistance for the redevelopment of the Redevelopment Property, which is underutilized property in the City, for 46 units of owner -occupied housing, consisting of 27 condominiums, 14 townhouses (or 41 condominiums), and 5 single-family homes. 1.05. That certain Assignment among the Authority, St. Louis Park District 283 (the "District"), and Foundation Land Development LLC ("Foundation"), is an integral element of the pending transaction between the Authority and Redeveloper as described in the Contract. The Assignment provides in part, that the City will assume the rights and obligations of Foundation set forth in a purchase agreement for the sale of the Redevelopment Property between Foundation and the School District ("Purchase Agreement"), which among other things, obligates Foundation to purchase the Redevelopment Property from the School District. Upon accepting the Assignment, the Authority will be obligated to purchase the Redevelopment Property from the School District. Acceptance of the Assignment and the Authority's obligations thereunder are contingent on execution of the Contract, which requires sale of the Redevelopment Property to the Redeveloper. 1.06. The Assignment is contingent on the execution of the Contract and the sale of the Redevelopment Property to the Redeveloper; the Contract is contingent on the execution of the Assignment and the sale of the Redevelopment Property to the Authority. The closing on the Purchase Agreement and the sale of the Redevelopment Property to the Redeveloper as provided in the Contract are to be contemporaneous. EDA Resolution No. 05-01 -2- 1.07. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Authority, including the sale of the Redevelopment Property to the Redeveloper, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The approval of the Contract as provided in section 2.01 is expressly contingent on the Authority and the Redeveloper closing on the sale of the Redevelopment Property to the Redeveloper as provided in the Contract, and on the execution of the Assignment and the purchase of the Redevelopment Property by the Authority. 2.03. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the St. Louis Park Economic Development ty this 3rd day of January, 2005. Administration Adopted by the Economic Development Authority January 3, 2 bet6r President Attest: ,Wcretary EDA Resolution No. 05-01 -3- EXHIBIT A LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY Lots 1 and 2 Block 1; Outlots A and B, Block 1; and Lots 1 through 5, Block 2, Brookside Lofts