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HomeMy WebLinkAbout23-12 - ADMIN Resolution - Economic Development Authority - 2023/05/01 EDA Resolution No. 23-12 Resolution approving contract for private development with and loans to PPL Union Park Community Limited Partnership and taking other actions in connection therewith Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Recitals. 1.01. To facilitate the development of certain property within the City of St. Louis Park, Minnesota (the “City”), the Authority, the City, PPL Union Park Community Limited Part nership, a Minnesota limited partnership, or another entity affiliated with or related to Project for Pride in Living, a Minnesota nonprofit corporation (the “Developer”), and PPL SLP LLC, a Minnesota limited liability company and the general partner of the Developer (the “General Partner”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Developer of 60 units of multifamily rental housing, approximately 70 underground parking stalls, and approximately 9 surface parking stalls (the “Minimum Improvements”) on certain property legally described therein (the “Development Property”). 1.02. In order to assist with the costs of the Minimum Improvements, the Authority, on behalf of the Developer, applied for and received a Livable Communities Demonstration Account (LCDA) grant in the amount $1,900,000 (the “LCDA Grant”) from the Metropolitan Council and a Tax Base Revitalization Account (TBRA) grant in the amount of $236,800 (the “TBRA Grant”) from the Metropolitan Council. In addition, the Authority, on behalf of the General Partner, applied for and received an Environmental Response grant in the amount of $177,000 (the “ERF Grant”) from Hennepin County, Minnesota (the “County”) through its Environment and Energy Department. 1.03. The Metropolitan Council and the Authority entered into a Metropolitan Livable Communities Act Grant Agreement, providing for an award date of October 14, 2020 and an expiration date of December 31, 2023 (the “LCDA Grant Agreement”). Proceeds of the LCDA Grant may be used for eligible project components of the Minimum Improvements (the “LCDA Grant-Eligible Activities”) as described in the LCDA Grant Agreement. 1.04. The Authority intends to loan the proceeds of the LCDA Grant (the “LCDA Loan”) to the Developer to provide financing for the LCDA Grant -Eligible Activities. To that end, the Authority and the Developer have negotiated a Loan Agreement (the “LCDA Loan Agreement”) between the Authority and the Developer. 1.05. The Metropolitan Council and the Authority entered into a Metropolitan Livable Communities Act Grant Agreement, providing for an award date of January 12, 2022 and an expiration date of December 31, 2024 (the “TBRA Grant Agreement”). Proceeds of the TBRA Grant may be used for eligible project components of the Minimum Improvements (the “TBRA Grant-Eligible Activities”) as described in the TBRA Grant Agreement. DocuSign Envelope ID: 36302AD9-EB5B-4D35-896D-A68C06C0D65C 1.06. The Authority intends to loan the proceeds of the TBRA Grant (the “TBRA Loan”) to the Developer to provide financing for the TBRA Grant -Eligible Activities. To that end, the Authority and the Developer have negotiated a Loan Agreement (the “TBRA Loan Agreement”) between the Authority and the Developer. 1.07. The Authority and the Hennepin County Environment and Energy Department have entered into an Environmental Response Fund Grant Agreement (Contract No. PR00004027) describing the use of the proceeds of the ERF Grant. The Authority intends to disburse the proceeds of the ERF Grant to the General Partner in accordance with the Agreement. Section 2. LCDA Loan. 2.01. The Authority agrees to make the LCDA Loan to the Developer in accordance with the terms of the LCDA Loan Agreement. 2.02. The LCDA Loan Agreement is hereby approved in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation a disbursing agreement providing for the disbursement of the Loan in accordance with the LCDA Loan Agreement and all documents, exhibits, certifications, or consents referenced in or attached to the LCDA Loan Agreement (the “LCDA Loan Documents”). The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the LCDA Loan Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The LCDA Loan Documents shall be in substantially the forms on file with the Authority and the approval hereby given to the LCDA Loan 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 Authority 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 Authority. The execution of any instrument by the appropriate officers of the Authority 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 LCDA Loan Documents shall not be effective until the date of execution thereof as provided herein. 2.03. 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 Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the LCDA Loan Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the LCDA Loan Documents. 2.04. The Authority agrees to accept the Note and the Combination Mortgage and Security Agreement, in substantially the forms on file with the Authority, from the Developer as security for the repayment of the LCDA Loan. DocuSign Envelope ID: 36302AD9-EB5B-4D35-896D-A68C06C0D65C Section 3. TBRA Loan. 3.01. The Authority agrees to make the TBRA Loan to the Developer in accordance with the terms of the TBRA Loan Agreement. 3.02. The TBRA Loan Agreement is hereby approved in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation a disbursing agreement providing for the disbursement of the Loan in accordance with the TBRA Loan Agreement and all documents, exhibits, certifications, or consents referenced in or attached to the TBRA Loan Agreement (the “TBRA Loan Documents”). The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the TBRA Loan Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The TBRA Loan Documents shall be in substantially the forms on file with the Authority and the approval hereby given to the TBRA Loan 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 Authority 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 Authority. The execution of any instrument by the appropriate officers of the Authority 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 TBRA Loan 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 Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the TBRA Loan Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the TBRA Loan Documents. 3.04. The Authority agrees to accept the Note and the Combination Mortgage and Security Agreement, in substantially the forms on file with the Authority, from the Developer as security for the repayment of the TBRA Loan. Section 4. The Agreement. 4.01. The Board hereby approves the Agreement in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation a disbursing agreement and all documents, exhibits, certifications, or consents referenced in or attached to the Agreement including without limitation the Declaration of Restrictive Covenants (collectively, the “Development Documents”). Such approval includes the Authority’s authorization of the disbursement of the ERF Grant in accordance with the Agreement. DocuSign Envelope ID: 36302AD9-EB5B-4D35-896D-A68C06C0D65C 4.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the forms on file with the Authority 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 Authority 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 Authority. The execution of any instrument by the appropriate officers of the Authority 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. 4.03. 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 Board by any duly designated acting official, or by such other officer or officers of the Board 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 Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Development Documents. Section 5. Effective date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the economic development authority May 1, 2023 Karen Barton, executive director Nadia Mohamed, president Attest Melissa Kennedy, secretary DocuSign Envelope ID: 36302AD9-EB5B-4D35-896D-A68C06C0D65C