HomeMy WebLinkAbout16-24 - ADMIN Resolution - Economic Development Authority - 2016/12/19ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 16-24
RESOLUTION APPROVING A SUBORDINATION AGREEMENT
BETWEEN THE AUTHORITY AND U.S. 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 4900 Excelsior Tax Increment Financing District ("TIF District").
1.02. The Authority and 4900 Excelsior Apartments LLC (the "Redeveloper") entered
into a Purchase and Redevelopment Contract dated as of December 7, 2015 (the "Contract"),
regarding redevelopment of a portion of the property within the TIF District by means of the
construction of a mixed-use facility containing certain multifamily rental housing and ground -floor
retail, along with associated parking facilities (the "Minimum Improvements").
1.03. In order to receive construction financing for the Minimum Improvements, the
Redeveloper's mortgage lender, U.S. Bank National Association (the "Lender") requires a
collateral assignment of the Contract and TIF Note (when and if issued pursuant to the Contract)
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. 16-24
Attest
Meli a Kenned , Secretary
Adopted by the Economic Development
Authority December 19, 2016
Anne Mavity, President