HomeMy WebLinkAbout17-07 - ADMIN Resolution - Economic Development Authority - 2017/04/03ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 17-07
RESOLUTION APPROVING A COLLATERAL ASSIGNMENT OF INTEREST IN
PAYMENTS UNDER TAX INCREMENT REVENUE NOTE, BETWEEN
BADER DEVELOPMENT LLC, MANDALAY INVESTMENT, LLC,
AND CROWN BANK
BE IT RESOLVED By the Board of Commissioners ("Board") of the St. Louis Park
Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. 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 Ellipse on Excelsior Tax Increment Financing District ("TIF District").
1.02. The Authority, the City of St. Louis Park ("City") and Ellipse I1 LLC (the
"Redeveloper") entered into a Purchase and Redevelopment Contract dated as of February 6, 2012
(the "Contract"), regarding redevelopment and construction of certain rental housing (the "Minimum
Improvements") on a portion of the property within the TIF District,
1.03. Pursuant to the terms of the Contract, the Authority issued its Tax Increment Revenue
Note, Series 2015 (the "TIF Note") to the Redeveloper. With the consent of the Authority and City,
the Redeveloper subsequently assigned the TIF Note to Bader Development LLC ("Bader").
1.04. Bader and Mandalay Investment, LLC, an affiliate of Bader ("Mandalay") have now
negotiated a refinancing of the permanent loan for the Minimum Improvements with Crown Bank
(the "Lender"), and have requested that the Authority and City consent to the terms of a collateral
assignment of payments under the TIF Note to the Lender, as memorialized in a Collateral
Assignment of Interest in Payments under Tax Increment Revenue Note between Bader, Mandalay,
and the Lender (the "Assignment"), in substantially the form presented to the Authority.
1.05. Pursuant to the Contract, the Redeveloper must seek approval from the Authority and
City prior to making any assignment of the Contract or Note.
1.06. 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.
Section 2. Authority Approval; Other Proceedings.
2.01. 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.
2.02. 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.
EDA Resolution No. 17-07
2.03. Authority staff and consultants are authorized to take any actions necessary to carry
out(die intent of this resolution.
Reviewed for dministration:
Tho s e ' g%Executive Director
Attest
Meli, sa Keiniedy, Secretary
Adopted by the Economic Development
Authority April 3, 2017
Anne Mavity, President