HomeMy WebLinkAbout2001/11/19 - ADMIN - Minutes - Economic Development Authority - RegularAUn CITYOF
ST. LOUIS
PARK
OFFICIAL MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
November 19, 2001
1. Call to Order
President Young called the meeting to order at 7: 11 p.m.
2. Roll Call
The following Commissioners were present at ro ll call: Jeff Jacobs, Ron Latz, Susan Sanger,
Sue Santa, and President Robert Young.
Commissioners Brimeyer and Nelson were absent.
Also present were the City Manager (Mr. Meyer); City Attorney (Mr. Scott); Director of
Finance (Ms. McGann); Director of Community Development (Mr. Harmening); and
Recording Secretary (Ms. Samson).
3. Approval of the Minutes of November 5, 2001
The minutes were approved as presented.
) 4. Approval of Agenda of November 19, 2001
It was moved by Commissioner Jacobs, seconded by Commissioner Latz, to approve the
agenda.
The motion passed 5-0.
5. Reports--None
6. Old Business--None
7. New Business
7a. MSP Real Estate Subordination and Consent
Tom Harmening, Director of Community Development, stated the EDA is being asked to
approve the Subordination Agreement and a Consent document relative to the Louisiana
Oaks project, otherwise known as the multi-family housing project on the Mill City Plywood
site. The EDA entered into a development contract for this project in 2000, and the project is
now nearing completion of construction. Some time ago, the City Council approved a
similar action for the initial financing the developer had placed on this site, and in the
development agreement the City has with the developer the City agreed to such an action.
The developer is refinancing the project and is asking the City to undertake a similar action
to subordinate the City's interest in the project to the lender. If that be the case, the City
would be in a second position relative to a mortgage the City has on the property as well as to
the redevelopment contract that is in place.
EDA Meeting Minutes -2-
This subordination would not relieve the developer from its obligations under the
redevelopment contract. In the event of a default, the bank has the ability to step into the
position of the developer. The City's legal counsel has participated in the preparation of the
documents and has agreed to it.
It was moved by Commissioner Santa, seconded by Commissioner Latz, to authorize
execution of the Subordination Agreement and the Consent to Assignment, Subordination and
Estoppel Agreement.
The motion passed 5-0.
8. Communications and Bills--None
9. Adjournment
President Young adjourned the meeting at 7: 15 p.m.
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