HomeMy WebLinkAbout21-10 - ADMIN Resolution - Economic Development Authority - 2021/06/21EDA Resolution No. 21-10
EDA Resolution approving a third amendment to the
preliminary development agreement between the
St. Louis Park Economic Development Authority, the City of St. Louis Park,
and Beltline Development LLC, and a second amendment to the loan agreement
between the Authority and Beltline Development LLC
Whereas, pursuant to its authority under Minnesota Statutes, Sections 469.090 to
469.1082, as amended, the St. Louis Park Economic Development Authority (the “Authority”)
administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the
redevelopment of certain substandard property within the Project; and
Whereas, the City of St. Louis Park, Minnesota (the “City”), the Authority, and Beltline
Development LLC (the “Developer”) each own portions of certain property (the “Property”)
within the Project, which Property has been the subject of certain preliminary negotiations
between the parties for purposes of constructing a mixed-use (multi-family residential and
commercial) development on the Property and related parking, including a parking ramp
serving in part as a park and ride facility for Metro Transit’s proposed Southwest Light Rail
Transit Beltline station (the “Development”); and
Whereas, the City, the Authority, and the Developer executed a Preliminary Development
Agreement, dated as of February 5, 2018 (the “Agreement”), providing for the performance of
certain activities on the part of the parties in preparation for the negotiation of a definitive
Purchase and Redevelopment Contract in connection with the Property, and executed a First
Amendment to the Agreement dated as of June 17, 2019, and a Second Amendment to the
Agreement dated as of June 15, 2020, each extending the dates of performance of each party’s
activities under the Agreement; and
Whereas, pursuant to the Agreement, the Developer acquired its portion of the Property
(the “Vision Bank Parcel”) from a third party, and the Authority financed a portion of the
acquisition cost of the Vision Bank Parcel pursuant to a Loan Agreement between the Authority
and Developer dated as of April 1, 2019 (the “Loan Agreement”), pursuant to which the Authority
loaned $3,100,000 to the Developer to finance such acquisition (the “Loan”), evidenced by a
promissory note (the “Note”) and secured by a mortgage on the Vision Bank Parcel (the
“Mortgage”); and
Whereas, the Authority approved a First Amendment to the Loan Agreement on June 15,
2020, extending the maturity date of the Loan, and the Developer provided an amended Note and
Mortgage in connection with such extension; and
Whereas, the parties have negotiated and now propose to execute a Third Amendment
to the Agreement and a Second Amendment to the Loan Agreement to further extend the
deadline for the completion of necessary preliminary activities for a period of up to twelve
months.
Now therefore be it resolved by the St. Louis Park Economic Development Authority
that the Third Amendment to the Agreement and the Second Amendment to the Loan
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EDA Resolution No. 21-10 2
Agreement as presented to the Board of Commissioners are 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 Third
Amendment to the Agreement and Second Amendment to the Loan Agreement 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 Third Amendment to the Agreement, the Second
Amendment to the Loan Agreement, and any documents referenced therein requiring
execution by the Authority, and to carry out, on behalf of the Authority, its obligations
thereunder.
It is further resolved that 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 June 21, 2021
Thomas K. Harmening, executive director Tim Brausen, president
Attest:
Melissa Kennedy, secretary
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