HomeMy WebLinkAbout16-18 - ADMIN Resolution - Economic Development Authority - 2016/08/15ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 16-18
RESOLUTION APPROVING A SUBORDINATION AGREEMENT BETWEEN THE
AUTHORITY AND PNC BANK, NATIONAL ASSOCIATION
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 the Eliot Park Tax Increment Financing District ("TIF District').
1.02. The Authority and Cedar Lake Road Apartments LLC (the "Redeveloper") entered
into a Contract for Private Redevelopment dated as of July 1, 2014, as amended (the "Contract"),
regarding redevelopment of a portion of the property within the TIF District by means of the
construction, in relevant part, of certain multifamily rental housing (the "Minimum
Improvements").
1.03. The Redeveloper has completed construction of the Minimum Improvements
pursuant to the Contract (with construction of the last single-family home pending), and the
Authority has issued its Tax Increment Revenue Note, Series 2016 (Eliot Park Project), in the
original principal amount of $1,100,000 to the Redeveloper (the "TIF Note"). In order to receive
permanent financing for the Minimum Improvements, the Redeveloper's mortgage lender, PNC
Bank, National Association (the "Lender") requires a collateral assignment of the Contract and
TIF Note by the Redeveloper to the Lender and subordination of the Authority's rights under the
Contract with respect to the Minimum Improvements, as set forth in the subordination agreement
presented to the Authority (the "Subordination').
1.04. Section 7.2 of the Contract provides for subordination of the Authority's rights
under the Contract, so long as such subordination contains such reasonable terms and conditions
as are mutually agreed by the Authority and Lender in writing.
1.05. The Board has reviewed the Subordination and finds that the approval and execution
of the Subordination are in the best interest of the City and its residents.
Section 2. Authority Approval; Other Proceedings.
2.01. The Subordination 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 Subordination 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 Subordination and any other documents requiring execution by the Authority in
order to carry out the transaction described in the Subordination.
2.03. Authority staff and consultants are authorized to take any actions necessary to carry
out the intent of this resolution.
EDA Resolution No. 16-18 2
Apprqwd,by the Board of Commissioners of the St, Louis Park Economic Development Authority
this I th d y of August, 2016,
inistration: Adopted by the Economic Development
Authority August 15, 2016
tin , Anne Mavity, President
Executive Director
Attest
Secr tart'