HomeMy WebLinkAbout21-14 - ADMIN Resolution - Economic Development Authority - 2021/08/02EDA Resolution No. 21-14
Resolution approving a Collateral Assignment of Interest in Revenue
Note between Texa Tonka Apartments, LLC 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 its Texa Tonka Tax
Increment Financing District (“TIF District”); and
Whereas, the Authority and Texa Tonka Apartments, LLC (the “Redeveloper”) entered into
a Contract for Private Redevelopment dated as of April 5, 2021 (the “Contract”), regarding
construction of certain multifamily rental housing (the “Minimum Improvements”) on certain
property within the TIF District and issuance of a tax increment revenue note (the “TIF Note”) to
reimburse the Redeveloper for certain qualified costs of construction of the Minimum
Improvements; and
Whereas, the Redeveloper is preparing to close on its construction financing loan for the
Minimum Improvements with Bridgewater Bank (the “Lender”), and has requested that the
Authority consent to the terms of a collateral assignment of the TIF Note to the Lender, as
memorialized in a Collateral Assignment of Interest in Revenue Note between the Redeveloper
and the Lender (the “Assignment”), in substantially the form presented to the Authority; and
Whereas, pursuant to the Contract, the Redeveloper must seek approval from the
Authority prior to making any assignment of the Contract or Note; and
Whereas, the Board has reviewed the Assignment and finds that the approval and
execution of the Authority’s consent thereto are in the best interest of the City and its residents.
Now, therefore, be it resolved:
1. The Assignment, including the consent of the Authority related thereto, 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 consent to the Assignment by such officials shall be conclusive
evidence of approval.
2. The President and Executive Director are hereby authorized to execute on behalf of the
Authority the consent attached to the Assignment and any other documents requiring execution
by the Authority in order to carry out the transaction described in the Assignment.
3. Authority staff and consultants are authorized to take any actions necessary to carry out
the intent of this resolution.
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EDA Resolution No. 21-14 2
Reviewed for Administration: Adopted by the Economic Development
Authority August 2, 2021
Karen Barton, EDA executive director Tim Brausen, president
Attest:
Melissa Kennedy, secretary
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