HomeMy WebLinkAbout21-37 - ADMIN Resolution - Economic Development Authority - 2021/12/06EDA Resolution No. 21-37
Resolution approving an
amended and restated master subordination agreement
and a subordination agreement
Whereas, the Authority and the City of St. Louis Park have heretofore approved the
establishment of the Wooddale Station Tax Increment Financing District (the “TIF District”) within
Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for
the purpose of financing certain improvements within the Project; and
Whereas, to facilitate the redevelopment of certain property within the Project and TIF
District, the Authority and PLACE E-Generation One LLC (the “Redeveloper”) have previously
negotiated a Purchase and Redevelopment Contract (as subsequently amended, the
“Agreement”) which provides for the conveyance of certain property (the “Property”) to the
Redeveloper, the construction by the Redeveloper of a mixed -use, mixed-income, transit-
oriented development, including rental housing, and associated parking on the Property (the
“Minimum Improvements”), and the issuance of a Tax Increment Revenue Note to the
Redeveloper; and
Whereas, in order to allow the Redeveloper adequate time to obtain financing for
construction of the Minimum Improvements (as defined in the Agreement), the Redevelo per
has requested and the Authority has consented to six prior amendments and a partial
termination of the Agreement, extending the date for completion of construction of the
Minimum Improvements on the Property and amending various other provisions; and
Whereas, the Redeveloper has notified the Authority of its inability to complete
construction of the Minimum Improvements and its plans to issue additional corporate debt in the
amount of $10,000,000 (the “Completion Bonds”) in order to complete the Minimum
Improvements; and
Whereas, in order to issue the Completion Bonds, the purchaser requires that the
Authority enter into an Amended and Restated Master Subordination Agreement and a
Subordination Agreement; and
Whereas, the Board has been presented with and reviewed the Amended and Restated
Master Subordination Agreement and the Subordination Agreement and finds that the execution
thereof and performance of the Authority’s obligations thereunder are in the best interest of the
City and its residents.
Now therefore be it resolved that the Amended and Restated Master Subordination
Agreement and the Subordination Agreement as presented to the Board 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 Amended and
Restated Master Subordination Agreement and the Subordination Agreement by such officials
shall be conclusive evidence of approval.
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EDA Resolution No. 21-37 2
It is further resolved that Authority staff and officials are authorized to take all actions
necessary to perform the Authority’s obligations under the Agreements as amended, including
without limitation execution of any documents to which the Authority is a party referenced in or
attached to the Agreements, all as described in the Agreements.
It is further resolved that this resolution shall be effective upon approval.
Reviewed for Administration: Adopted by the Economic Development
Authority December 6, 2021
Karen Barton, executive director Tim Brausen, president
Attest:
Melissa Kennedy, secretary
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