HomeMy WebLinkAbout23-14 - ADMIN Resolution - Economic Development Authority - 2023/06/05
EDA Resolution No. 23-14
Resolution approving second amendment to purchase agreement,
second amendment to contract for private development and
amendments to loan documents
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; authorization.
(a) The authority and city council of the City of St. Louis Park, Minnesota (the “city”)
have heretofore approved the establishment of the Beltline Station Tax Increment Financing
District No. 1 (the “TIF District No. 1”), a housing district, and Beltline Station Tax Increment
Financing District No. 2 (the “TIF District No. 2” and together with TIF District No. 1, the “TIF
districts”), a renewal and renovation district, within redevelopment project No. 1 (the “project”).
(b) The city, the authority, and Beltline Development LLC, or an entity related
thereto or affiliated therewith (the “developer”) each own portions of certain property within
the project, which has been the subject of certain preliminary negotiations between the parties
for purposes of constructing a mixed-use (multi-family residential and commercial)
development and related parking, including a parking ramp serving in part as a park and ride
facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain
property in the project (the “development”).
(c) The city, the authority, and the developer executed a preliminary development
agreement, dated February 5, 2018, a first amendment to the agreement, dated June 17, 2019 a
second amendment to agreement, dated June 15, 2020, and a third amendment to agreement,
dated June 21, 2021 as amended by providing for the performance of certain activities on the part
of the parties in preparation for the negotiation of a definitive contract relating to development
(together, the “preliminary agreement”).
(d) Pursuant to the preliminary agreement, the developer acquired a portion of the
property for the development (the “Vision Bank parcel”) from a third party, and the authority
financed a portion of the acquisition cost of the Vision Bank parcel pursuant to a loan agreement
between the authority and developer dated as of April 1, 2019 (the “loan agreement”), pursuant
to which the authority loaned $3,100,000 (the “EDA loan”) to the developer to finance such
acquisition as evidenced by a promissory note (the “note”) and secured by a mortgage on the
Vision Bank parcel (the “mortgage”).
(e) The authority and the developer have been working towards negotiating final
development documents for the development as contemplated by the preliminary agreement.
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(f) The authority and developer have amended the loan agreement relating to the
EDA Loan four times to extend the repayment date in the form of a first amendment to loan
agreement, second loan amendment to loan agreement, third loan amendment to loan
agreement and fourth amendment to loan agreement. In addition, developer executed the first
amended mortgage, the second amended mortgage, the third amended mortgage, a fourth
amended mortgage, a first amended promissory note, a second amended promissory note, a third
amended promissory note, and a fourth amended promissory note.
(g) The authority owns certain parcels located in the city and legally described in
exhibit A attached hereto (the “development property”) and is prepared to convey all or a portion
of the authority parcels to the developer for the development.
(i) To facilitate the development, the authority and beltline development entered into
a purchase agreement, dated July 7, 2022, as amended by a first amendment to purchase
agreement, dated December 5, 2022 (as heretofore amended, the “original purchase
agreement”), which provides for the conveyance of all or portion of the development property to
the Beltline Development Entities, provided that following closing on the conveyance and
replatting of the development property certain rights of way will be owned by the city.
(j) On July 7, 2022, the authority and Beltline Station Limited Partnership, a
Minnesota limited partnership, and an entity affiliated with or related to the developer, have
entered into a contract for private development, as amended by the first amendment to contract
for private development, dated March 31, 2023 (collectively, the “affordable contract for private
development”) relating to a portion of the development consisting of a portion of construction of
approximately 82 units of affordable multifamily rental housing together with approximately 59
underground parking spaces a portion of the city and authority parcels (the “affordable minimum
improvements”). The authority, the Metropolitan Council, and the developer continue to work
towards the delivery of a final contract for private development and other documents relating to
the construction of the remainder of the development and the parking ramp that will serve the
development and as a park and ride facility for Metro Transit’s proposed Southwest Light Rail
Transit Beltline station.
(k) The authority and the developer have been working towards negotiating final
development documents for the development and due to changing market conditions, the
developer has requested that the authority agree to extend certain deadlines in the documents to
provide the developer, the Metropolitan Council and the authority more time to negotiate final
documents relating to the development.
(l) To that end, the authority, the city, and the developer have negotiated a second
amendment to contract for private development (the “second amendment to affordable contract
for private development”), a form of which is on file with the board, which amends the affordable
contract for private development to extend the dates of commencement of construction of the
affordable minimum improvements.
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(m) Additionally, the authority and developer have negotiated and now propose to
execute a second amendment to purchase agreement (together, the “second amendment to
purchase agreement”) to extend certain deadlines set forth in the purchase agreement.
(n) Additionally, the authority and developer have negotiated and now propose to
execute a fifth amendment to the loan agreement, a fifth amended promissory note, and a fifth
amended mortgage (together, the “loan amendment documents”) to further extend the
deadline for the repayment of the EDA Loan.
(o) The board has reviewed the loan amendment documents, the second amendment
to purchase agreement, and the second amendment to affordable contract for private
development, including an amended and restated assessment agreement and finds that the
execution thereof and performance of the authority’s obligations thereunder are in the best
interest of the city and its residents.
Section 2. Approval of second amendment purchase agreement, second amendment
to affordable contract for private development, and loan amendment documents.
(a) The board approves the second amendment to purchase agreement, second
amendment to affordable contract for private development and the loan document amendments
in substantially the forms presented to the board, together with any related documents
necessary in connection therewith, including without limitation all documents, exhibits,
certifications, or consents referenced in or attached to the second amendment to purchase
agreement, second amendment to affordable contract for private development, and the EDA loan
documents including without limitation the quit claim deeds and any documents required by the
title company relating to the conveyance of development property (the “documents”).
(b) 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 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 documents shall be
in substantially the form on file with the authority and the approval hereby given to the
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 documents shall not be effective until the date of execution
thereof as provided herein.
(c) 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
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execution and delivery of the 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 documents.
Section 3. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the Economic Development
Authority June 5, 2023
Karen Barton, executive director Nadia Mohamed, president
Attest
Melissa Kennedy, secretary
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Exhibit A
Legal description
The property located within the City of St. Louis Park, Hennepin County, Minnesota legally
described as follows:
Lot 17, Block 1, Lewiston Park, Hennepin Co. Minn.
And
Lot 1, 2, 3, 4, 13, 14, 15 and 16, Block 1, Lewiston Park, Hennepin Co. Minn., except that
part of said Lots described as follows:
Commencing at the Southeast corner of said Lot 4; thence Westerly along the South
line of said Lot 4, a distance of 6.00 feet to the point of beginning of the tract of l and
to be described; thence North 00 degrees 19 minutes 53 seconds East, assumed
bearing, parallel with the East line of Lots 5 and 6, said Block 1, a distance of 114.27
feet; thence Northwesterly along a tangential curve to the left having a radius of
15.00 feet and a central angle of 61 degrees 46 minutes 23 seconds, a distance of
16.17 feet; thence North 61 degrees 26 minutes 30 seconds West, tangent to said
curve, a distance of 40.60 feet; thence Westerly along a tangential curve to the left,
having a radius of 24.00 feet and a central angle of 76 degrees 35 minutes 00
seconds, a distance of 32.08 feet; thence Southwesterly along a reverse curve to the
right, having a radius of 361.58 feet and a central angle of 26 degrees 53 minutes 32
seconds, a distance 169.71 feet; thence South 43 degrees 00 minutes 19 seconds,
West, not tangent to said curve, a distance of 71.07 feet to the intersection with a
line distant 46.00 feet Easterly of as measured at a right angle to and parallel with
hereinafter described “Line A”; thence Southerly along said parallel line, a distance
of 26.00 feet to the South line of said Lot 13; thence Easterly along said South line
and the easterly extension thereof, a distance of 128.10 feet to the centerline of
alley; thence Northerly along the centerline of said Alley, a distance of 32.65 feet to
the intersection with the westerly extension of the South line of said Lot 4; thence
Easterly along said Westerly extension and along the South line of said Lot 4, a
distance of 130.61 feet to the point of beginning.
Said “Line A” is described as follows:
Commencing at the most Southerly corner of Lot 1, Block 1 Belt Line Industrial Park
2nd Addition, thence South 59 degrees 15 minutes 24 seconds East of an assumed
bearing along the Southeasterly extension of the Southwesterly line of said Lot 1 a
distance of 40.00 feet to the point of beginning of said line; thence North 30 degrees
44 minutes 36 seconds East 112.38 feet; thence Northerly 768.57 feet along a
tangential curve concave to the West having a radius of 785.30 feet and a central
angle of 56 degrees 04 minutes 30 seconds; thence North 25 degrees 19 minutes 54
seconds West, tangent to last
described curve 180.04 feet; thence Northerly 589.17 feet along a tangential curve
concave to the East having a radius of 1268.10 feet a central angle of 26 degrees 37
minutes 12 seconds, said line there terminating.
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Torrens Property - Certificate Title No. 697371
AND
Lots 9 and 19, Block 2;
Those parts of Lots 10, 11, 17, 18, Block 2, lying north of the southerly right-of-way line
of State Trunk Highway No. 7;
That part of Natchez Avenue vacated, lying east of the West line of the Northwest
Quarter of the Northeast Quarter of Section 6, Township 28, Range 24, north of the
southerly right-of-way line of State Trunk Highway No. 7, and southerly of a line
hereinafter referred to as Line 1; That part of the vacated alley in Block 2 lying north of
the southerly right-of-way line of State Trunk Highway No. 7, and southerly of the
aforementioned Line 1.
All in “Oakenwald Addition St. Louis Park,” Hennepin County, Minnesota;
Line 1 is described as commencing at the north quarter corner of Section 6,
Township 28, Range 24, said county; thence South 00 degrees 26 minutes 06
seconds West, assumed bearing along the north – south quarter line of said Section
6, a distance of 1092.89 feet to the point of beginning; thence North 73 degrees 14
minutes 47 seconds East 51.97 feet; thence northeasterly 174.11 feet along a non-
tangential curve concave to the northwest, having a radius of 5790.08 feet, a central
angle of 01 degrees 43 minutes 22 seconds, and a chord bearing of North 67 degrees
56 minutes 18 seconds East, and said line there terminating.
AND
That part of West 32nd Street, vacated, lying sout herly of the centerline thereof, westerly
of the northerly extension of the east line of Lot 1, Block 1, said plat of Lewiston Park, and
easterly of a line hereinafter referred to as Line 2;
That part of Natchez Avenue, vacated, lying southerly of the cen terline of West 32nd
Street, northerly of the north line of Lot 4, Block 1, Dalquist Industrial Park, Hennepin
County, and west of the West line of the Southwest Quarter of the Northeast Quarter of
Section 6, Township 28, Range 24;
That part of the vacated alley adjoining Block 1, said plat of Lewiston Park, lying southerly
of West 32nd Street and northerly of Lot 1, Block 1, Brooks McCracken Industrial Park,
Hennepin County.
Line 2 is described as commencing at the north quarter corner of Section 6, Township
28, Range 24, said county; thence South 00 degrees 26 minutes 06 seconds West,
assumed bearing along the north – south quarter line of said Section 6, a distance of
1092.89 feet; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet;
thence southwesterly 220.70 feet along a non-tangential curve concave to the
northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes
46 seconds, and a chord bearing of South 70 degrees 30 minutes 32 seconds West;
thence South 67 degrees 02 minutes 58 seconds West, not tangent to said curve,
65.29 feet to the point of beginning of the line to be described; thence South 00
degrees 20 minutes 22 seconds East 298.91 feet, and said line there terminating.
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AND
Lots 12, 13, 14, 15 and 16, Block 2, Mazey & Langan’s Addition To St. Louis Park, according
to the recorded plat thereof, Hennepin County, Minnesota.
AND
The east 37 feet of Lot 4, Block 1, Dalquist Industrial Park, according to the recorded plat
thereof, Hennepin County, Minnesota.
AND
That part of West 32nd Street, vacated, lying northerly of the centerline thereof, westerly
of the southerly extension of the east line of Lot 14, Block 2, said plat of Mazey & Langan ’s
Addition To St. Louis Park, and easterly of the aforementioned Line 2;
That part of Natchez Avenue, vacated, lying northerly of the centerline of West 32nd
Street, southerly of a line hereinafter referred to as Line 3, and west of the West line of
the Northwest Quarter of the Northeast Quarter of Section 6, Towns hip 28, Range 24;
That part of the alley adjoining Block 2, said plat of Mazey & Langan’s Addition To St. Louis
Park lying northerly of West 32nd Street and southerly of the aforementioned Line 3;
Line 3 is described as commencing at the north quarter corner of Section 6, Township
28, Range 24, said county; thence South 00 degrees 26 minutes 06 seconds West,
assumed bearing along the north – south quarter line of said Section 6, a distance of
1092.89 feet; thence South 73 degrees 14 minutes 47 seconds Wes t 10.28 feet;
thence southwesterly 220.70 feet along a non-tangential curve concave to the
northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes
46 seconds, and a chord bearing of South 70 degrees 30 minutes 32 seconds West,
and said line there terminating.
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Authority Parcels
Lots 12, 13, 14, 15, and 16, Block 2;
That part of Lots 10, 11, 17 and 18, Block 2, lying South of the Southerly right -of-way line
of State Trunk Highway No. 7;
All of the vacated alley in Block 2 lying South of the Southerly right -of-way line of State
Trunk Highway No. 7; That part of Natchez Avenue vacated, lying east of the West line
of the Northwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24,
North of the South line of said Northwest Quarter of the Northeast Quarter, and South
of the Southerly right-of-way line of State Trunk Highway No. 7; That part of West 32nd
Street, vacated, lying between the extensions across it of the East line of Lot 14 and the
West line of Lot 15, Block 2;
All in “Oakenwald Addition St. Louis Park,” Hennepin County, Minnesota;
That part of vacated Monterey Avenue (formerly Oakenwald Avenue as shown on the
plat of “OAKENWALD ADDITION ST. LOUIS PARK,” lying North of the South line of the
Northwest Quarter of the Northeast Quarter, Section 6, Township 28, Range 24 and
south of the Easterly extension of the North line of Lot 10, Block 2, “OAKENWALD
ADDITION ST. LOUIS PARK”.
AND
That part of the Southwest Quarter of the Northeast Quarter, Section 6, Township 28,
Range 24, Hennepin County, Minnesota described as beginning at the Northwest corne r
of said Southwest Quarter of the Northeast Quarter; thence South along the West line
thereof 288.7 feet; thence East to a point on the Northerly right -of-way line of the
Minneapolis and St. Louis Railway Company, distant 46 feet from the intersection of said
right-of-way line with the West line of said Southwest Quarter of the Northeast Quarter
as measured along said right-of-way line; thence Northeasterly along said Northerly
right-of-way line to its intersection with the extension South of the East line of
Monterey Avenue; thence North along the extension of the East line of Monterey
Avenue to the North line of said Southwest Quarter of the Northeast Quarter; thence
West along said North line to the point of beginning.
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