HomeMy WebLinkAbout19-03 - ADMIN Resolution - Economic Development Authority - 2019/04/01St. Louis Park Economic Development Authority
Resolution No. 19-03
Resolution approving loan agreement between the St. Louis Park Economic
Development Authority and Sherman Associates Development 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 is currently administering its Redevelopment Project No. 1
("Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"), and is
pursuing the establishment of a tax increment financing district within the Project to finance a
portion of the costs of expected mixed-use development in connection with the planned
Southwest Light Rail Transit (“SWLRT”) Beltline Station.
1.02. The Authority, the City of St. Louis Park (the “City”), and Sherman Associates
Development LLC (“Redeveloper”) have entered into a Preliminary Development Agreement
dated as of February 5, 2018 (the “Preliminary Agreement”), memorializing the parties’
preliminary agreements as to the conveyance and redevelopment of certain Authority-owned
property adjacent to the SWLRT Beltline Station (the “Development”), as well as the
redevelopment of certain other property (the “Property”) currently owned by a third party (the
“Third-Party Owner”), subject to successful acquisition of the Property for the Development.
1.03. In order to expedite acquisition of the Property for the Development and to
successfully negotiate and execute a definitive purchase and redevelopment contract as
contemplated by the Preliminary Agreement, the Redeveloper has entered into a purchase
agreement with the Third-Party Owner for acquisition of the Property, and has requested a
bridge loan from the Authority (the “Loan”) to finance a portion of the acquisition costs of the
Property.
1.04. The Redeveloper and the Authority have negotiated a loan agreement (the “Loan
Agreement”) in the form presented to the Board, memorializing the terms an d conditions of
the Loan, and the Board finds that the approval and 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; Other Proceedings .
2.01. The Loan Agreement as presented to the Board 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 L oan
Agreement by such officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf
of the Authority the Loan Agreement and any documents referenced therein requiring
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EDA Resolution No. 19-03 2
execution by the Authority, and to carry out on behalf of the Authority its obligations
thereunder.
2.03. Authority staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Reviewed for Administration: Adopted by the Economic Development
Authority April 1, 2019
Thomas K. Harmening, Executive Director Steve Hallfin, President
Attest:
Melissa Kennedy, Secretary
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