HomeMy WebLinkAbout2016/10/17 - ADMIN - Minutes - Economic Development Authority - RegularSt.Louis s Pa rk OFFICIAL MINUTES
N T ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
OCTOBER 17, 2016
1. Call to Order
President Mavity called the meeting to order at 7:28 p.m.
Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Thom Miller, Susan Sanger, and rake Spano.
Commissioners absent: None.
Staff present: Executive Director (Mr. Harmening), City Attorney (Mr. Mattick), Economic
Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), Deputy
City Manager/Human Resources Director (Ms. Deno), Planning/Zoning Supervisor (Ms.
McMonigal), Assistant Zoning Administrator (Mr. Morrison), Senior Planner (Mr. Walther), and
Recording Secretary (Ms. Pappas).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes September 6, 2016
It was moved by Commissioner Spano, seconded by Commissioner Hallfin, to approve
the EDA minutes as presented.
The motion passed 7-0.
4. Approval of Agenda
It was moved by Commissioner Brausen, seconded by Commissioner Miller, to approve
the EDA agenda as presented.
The motion passed 7-0.
5. Reports
5a. Approval of EDA Disbursements
It was moved by Commissioner Brausen, seconded by Commissioner Spano, to approve
the EDA Disbursements.
The motion passed 7-0.
6. Old Business - None
7. New Business
7a. Assignment and Subordination Agreement — ACSLP, LLC (TPI
Hospitality/AC Hotel by Marriot). Resolution No. 16-20
Economic Development Authority -2-
October 17, 2016
Mr. Hunt presented the staff report. He explained that on April 4, 2016, TPI Hospitality
received its final zoning approvals for the hotel (AC Hotel by Marriott) required under
the Amended and Restated Contract for Private Redevelopment with Central Park West,
LLC. As a requirement of the construction financing for the project, TPI Hospitality's
lender, Johnson Bank, has requested that the EDA and the city approve an Assignment
and Subordination Agreement of Amended and Restated Contract for Private
Redevelopment. The proposal is primarily an agreement by the EDA and city to
subordinate their rights under the contract to the rights of Johnson Bank under TPI
Hospitality's construction loan. The developer is also collaterally assigning its rights
under the contract to Johnson Bank. This primarily means that the lender will have rights
if the hotel developer commits an event of default under the Redevelopment Contract.
Additionally, there are two provisions of particular note within the proposed agreement.
Paragraph 7 provides that although the city and EDA are waiving the required date for
commencement of construction of the hotel, they reserve the right to require a fourth
amendment to the contract if construction is delayed past January 1, 2017. Paragraph 9
provides that the rights of the EDA under the Assessment Agreement for the hotel are not
subordinated to the mortgage. The proposed agreement is similar to other subordination
agreements the EDA has approved previously, and has been reviewed by the EDA's legal
counsel who recommends its approval.
Commissioner Brausen asked when the hotel project was anticipated to be completed.
Mr. Hunt responded the project would begin in November, 2016, and be completed by
February, 2018, hopefully in time for the Super Bowl in Minneapolis.
It was moved by Commissioner Brausen, seconded by Commissioner Lindberg, to waive
the reading and adopt EDA Resolution No. I6-20, approving the assignment and
subordination agreement with ACSLP, LLC (TPI Hospitality) and Johnson Bank, relative
to the amended and restated contract for Private Redevelopment with Central Park West,
LLC
The motion passed 7-0.
8. Adjournment
The meeting adjourned at 7:35 p.m.
U AA
Melisst Kenne y, Secretary
Anne Mavity, President