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HomeMy WebLinkAbout22-099 - ADMIN Resolution - City Council - 2022/06/20Resolution No. 22-099 Resolution approving contract for private development, a loan to Beltline Station Limited Partnership and execution of documents relating thereto Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park, Minnesota (the “City”) as follows: Section 1. Recitals. 1.01. The City and the St. Louis Park Economic Development Authority (the “Authority”) have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF District”), a housing 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. 1.02. The City has heretofore created an Affordable Housing Trust Fund, which is funded in part with pooled tax increment derived from property within certain tax increment financing districts within the City as provided in Laws of Minnesota 2022, First Special Session, Chapter 14, Article 9, Section 5. 1.03. To facilitate the development of certain property within the Project and TIF District, the Authority, the City, and Beltline Station Limited Partnership, a Minnesota limited partnership (the “Developer”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Developer of an affordable rental housing facility on certain property described therein (the “Development Property”), the issuance by the Authority of a tax increment revenue note to the Developer, and the loan of proceeds of funds from the City’s Affordable Housing Trust Fund (the “City AHTF Loan”) in the principal amount of $618,238 to the Developer. 1.04. To allow the Developer to perform certain obligations under the Agreement, Cedar Rapids Bank and Trust, an Iowa banking corporation, in its capacity as lender, together with any other permitted co-lenders and their respective successors and/or permitted assigns (collectively, “Senior Lender”), has agreed to provide the Developer with financing by purchasing the tax-exempt conduit revenue obligations to be issued by the City and providing taxable financing in the combined estimated principal amount of $21,000,000 (collectively, the “Senior Financing”). Section 2. Approval of City AHTF Loan. 2.01. The City agrees to make the City AHTF Loan to the Developer from the City’s Affordable Housing Trust Fund in accordance with the terms of Section 3.5 of the Agreement in the approximate principal amount of $618,238. 2.02 The City agrees to accept the Promissory Note and the Mortgage, in substantially the forms set forth in the Agreement, from the Developer as security for the repayment of the City AHTF Loan. DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006 Resolution No. 22-099 2 Section 3. The Agreement and Related Documents. 3.01. The City Council hereby approves the Agreement in substantially the form presented to the City Council, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement, including without limitation the Mortgage and Promissory Note (all as defined in the Agreement) (the “AHTF Loan Documents”). In addition, in order to provide the Senior Financing, the Senior Lender requires the execution and delivery by the City of the following documents, forms of which are on file with the City (the “Additional Lender Documents” and together with the AHTF Loan Documents, the “Development Documents”): (i) a Master Subordination Agreement between the Senior Lender, the City, and the Authority, pursuant to which the Authority and the City agree to subordinate their right to, title to, and interest in the Development Property and the rights and the remedies and options of the City under the Agreement to those of the Senior Lender and the Senior Financing; and (ii) a Master Loan Disbursement Agreement between the Developer, the Senior Lender, the Authority, the City, and a title company selected by the Developer, in order to disburse the proceeds of the City AHTF Loan. 3.02. The City Council hereby authorizes the Mayor and City Manager, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the City, and to carry out, on behalf of the City, the City’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the City and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 3.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the City Council are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the City Council to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. Section 4. Effective Date. This resolution shall be effective upon approval. DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006 Resolution No. 22-099 3 Reviewed for administration: Adopted by the City Council June 20, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk DocuSign Envelope ID: F6785B6E-5055-4B21-ACEB-F4AB45FD7006