HomeMy WebLinkAbout20-13 - ADMIN Resolution - Economic Development Authority - 2020/06/01EDA Resolution No. 20-13
Resolution approving a Subordination Agreement between
the Authority and Bridgewater Bank
Whereas, the St. Louis Park Economic Development Authority (the “Authority”) is
currently administering its Redevelopment Project No. 1 ("Project") pursuant to Minnesota
Statutes, Sections 469.001 to 469.047 ("HRA Act"), and within the Project has established the
Parkway Residences Tax Increment Financing District (“TIF District”); and
Whereas, the Authority and Parkway Place, LLC (the “Redeveloper”), along with other
affiliates of the Sela Group, LLC, entered into a Contract for Private Redevelopment dated as of
May 18, 2020 (the “Contract”), regarding redevelopment of the property within the TIF District
by means of the construction of a multiphase multifamily rental housing development, along
with associated parking facilities (the “Minimum Improvements”); and
Whereas, in order to receive construction financing for the Minimum Improvements,
the Redeveloper’s mortgage lender, Bridgewater Bank (the “Lender”) requires a collateral
assignment of the Contract and TIF Note (when and if issued pursuant to the Contract) by the
Redeveloper to the Lender and a subordination of the Authority’s rights under the Contract
with respect to the Minimum Improvements, as set forth in the subordination agreement
presented to the Authority (the “Subordination”); and
Whereas, Section 7.2 of the Contract provides for subordination of the Authority’s rights
under the Contract, so long as such subordination contains such reasonable terms and
conditions as are mutually agreed by the Authority and Lender in writing; and
Whereas, the Authority’s Board of Commissioners and legal counsel have reviewed the
Subordination and find that the approval and execution of the Subordination are in the best
interest of the city and its residents.
Now, therefore, it is resolved that the Subordination 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 Subordination by such officials shall be conclusive evidence of approval.
It is further resolved that the President and Executive Director are hereby authorized to
execute on behalf of the Authority the Subordination and any other documents requiring
execution by the Authority in order to carry out the transaction described in the Subordination.
It is further resolved that Authority staff and consultants are authorized to take any
actions necessary to carry out the intent of this resolution.
DocuSign Envelope ID: 4D569023-15B1-4B77-AA0F-8E8B8CCD85E0
EDA Resolution No. 20-13 2
Reviewed for Administration: Adopted by the Economic Development
Authority June 1, 2020
Thomas K. Harmening, executive director Rachel Harris, president
Attest:
Melissa Kennedy, secretary
DocuSign Envelope ID: 4D569023-15B1-4B77-AA0F-8E8B8CCD85E0