HomeMy WebLinkAbout23-076 - ADMIN Resolution - City Council - 2023/06/05Resolution No. 23-076
Resolution approving a revision to the contract for private
development and a deferred loan from the Affordable Housing Trust
Fund for PPL Union Park Community Limited Partnership
Be it resolved by the city council (“city council”) of the City of St. Louis Park, Minnesota
(“City”) as follows:
Section 1. Recitals.
1.01. The city has heretofore created an Affordable Housing Trust Fund, which is funded
in part with pooled tax increment derived from property within certain tax increment financing
districts within the city as provided in laws of Minnesota 2022, First Special Session, Chapter 14,
Article 9, Section 5. The city is authorized to make loans from its Affordable Housing Trust Fund to
provide funding for affordable housing developments in the city.
1.02. To facilitate the development of certain property within the city, the St. Louis Park
Economic Development Authority (“authority”), the city, PPL Union Park Community Limited
Partnership, a Minnesota limited partnership, or another entity affiliated with or related to Project
for Pride in Living, a Minnesota nonprofit corporation (“developer”), and PPL SLP LLC, a Minnesota
limited liability company and the general partner of the developer, have negotiated a contract for
private development (“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 (“minimum improvements”) on certain property legally
described therein (“development property”) and provides a deferred loan from the city in the
principal amount of $450,000 (“deferred loan”) to the developer from the city’s Affordable
Housing Trust Fund.
1.03. The developer has requested that the maturity date of the AHTF deferred loan be
revised to be 42 years from the date of closing on their senior financing (anticipated to be no later
than December 31, 2065) (“maturity date”).
1.04. The city will agree to subordinate the AHTF deferred loan and other loans as
detailed in the agreement pursuant to the terms and conditions set forth in a subordination
agreement to be considered by the city council on a future date.
Section 2. Agreement.
2.01. The city council hereby approves the agreement with the revised maturity date
in substantially the form presented to the city council, 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 agreement and all
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documents, exhibits, certifications, or consents referenced in or attached to the agreement
(together, “development documents”).
2.02. The city council hereby authorizes the mayor and city manager, in their
discretion and at such time, if any, as they may deem appropriate, to execute the development
documents on behalf of the city, and to carry out, on behalf of the city, the city’s obligations
thereunder when all conditions precedent thereto have been satisfied. The development
documents shall be in substantially the form on file with the city 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 city 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 city. The execution of
any instrument by the appropriate officers of the city 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.
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 city council by any duly designated acting official, or by such other officer
or officers of the city council 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
city council are hereby authorized and directed to take or cause to be taken such actions as
may be necessary on behalf of the city council to implement the development documents.
Section 3. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the city council June 5, 2023
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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