HomeMy WebLinkAbout23-088 - ADMIN Resolution - City Council - 2023/07/24Resolution No. 23-088
Resolution approving a business subsidy by the St. Louis Park
Economic Development Authority and a first amendment to
subrecipient agreement with Metropolitan Council
Be it resolved by the city council (the “city council”) of the City of St. Louis Park,
Minnesota (the “City”) as follows:
Section 1. Recitals; authorization.
1.01. The St. Louis Park Economic Development Authority (the “authority”) and Beltline
Mixed Use LLC, a Delaware limited liability company (the “developer”), intend to enter into a
contract for private development (the “agreement”) pursuant to which the developer will acquire
certain property located within the city (the “development property”) and construct thereon (a) a
building to include approximately 146 units of market rate housing with approximately 96
underground parking spaces an affordable rental housing facility (the “market-rate housing
component”); (b) a building to include approximately 152 units of market rate rental housing
and approximately 18,200 rentable square feet of commercial space (the “mixed-use
component”); and (c) an approximately 571-space parking ramp with approximately 1,850
square feet of commercial space (including approximately 208 spaces to serve the mixed-use
component, approximately 95 spaces to serve the market-rate housing component, and
approximately 268 spaces to be dedicated as public transit park and ride spaces) and driver
restroom (the “parking ramp component,” and collectively with the market-rate housing
component and the mixed-use component, the “minimum improvements”). To make the
market-rate housing component and the mixed-use component of the minimum improvements
economically feasible, the authority will issue separate tax increment revenue notes
(individually, the “market-rate housing TIF note” and the “mixed-use component TIF note,” and
together, the “TIF notes”).
1.02. In addition to the TIF notes, the authority has proposed to provide a grant to the
developer in the amount of $1,554,000 (the “authority TIF grant”) from pooled tax increment
and a grant from the proceeds of a Contamination Cleanup grant in the amount of $283,547
(the “DEED grant”) from the Minnesota Department of Employment and Economic
Development (“DEED”). The developer has also proposed to provide the authority with a
promissory note in the amount of $390,000 (the “purchase price note”) to evidence the
developer’s obligation to repay a loan for the portion of the purchase price for the market-rate
housing component parcel of the development property and the mixed-use component parcel
of the development property.
1.03. The mixed-use component TIF note, along with the portions of the authority TIF
grant, the DEED grant and the purchase price note allocable on a pro rata basis to the mixed-use
component, constitute a business subsidy (the “business subsidy”) pursuant to Minnesota
Statutes, Sections 116J.993 to 116J.995, as amended (the “business subsidy act”). The
agreement includes an agreement whereby the developer will agree to certain goals in
connection with the business subsidy as required by the business subsidy act (the “business
subsidy agreement”).
DocuSign Envelope ID: 284FB477-FB62-4E0E-A7CA-39113148D087
1.04. As required by Section 116J.994, subdivision 5 of the business subsidy act, on
July 17, 2023, the board of commissioners of the authority conducted a duly noticed public
hearing on the proposed business subsidy to be provided to the developer. In accordance with
Section 116J.994, subdivision 3(d), of the business subsidy act, the city council is required to
approve the business subsidy agreement contained in the agreement.
1.05. In order to assist with the costs of the minimum improvements, the authority
applied for and received a Congestion Mitigation and Air Quality Grant Contamination Cleanup
grant in the amount $6,453,054 (the “CMAQ grant”) from Metropolitan Council. Metropolitan
Council and the authority entered into a subrecipient agreement - Beltline Blvd Station Park &
Ride Project – METRO Green Line Light Rail Transit Extension - Federal Congestion Mitigation
and Air Quality (CMAQ) funding (the “original CMAQ grant agreement”). Proceeds of the
CMAQ grant may be used for eligible project components of the minimum improvements (the
“CMAQ grant-eligible activities”) as described in the original CMAQ grant agreement.
1.06. The authority and Metropolitan Council have negotiated and now propose to
execute a first amendment to subrecipient agreement with respect to the CMAQ grant (the
“first amendment to CMAQ grant agreement”), a form of which has been presented to the city
council, to reflect that the authority and the developer will work cooperatively to implement
the construction of the parking ramp component. The authority intends to disburse the
proceeds of the CMAQ grant to the developer to provide financing for the CMAQ grant-eligible
activities as set forth in the agreement.
1.07. The city council finds that the execution thereof by the authority and performance
of the authority's obligations under the first amendment to CMAQ grant agreement are in the best
interest of the city and its residents.
Section 2. Approvals.
2.01. The city council hereby approves the proposed business subsidy and the business
subsidy agreement contained in the agreement.
2.02. The city council hereby approves the first amendment to CMAQ agreement.
2.03. The city council hereby authorizes the president and the executive director of the
authority, in their discretion and at such time, if any, as they may deem appropriate, to execute
the business subsidy agreement and the first amendment to CMAQ agreement (together, the
“authority 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 authority documents shall be in substantially the form on file with the city and the
approval hereby given to the authority 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 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
DocuSign Envelope ID: 284FB477-FB62-4E0E-A7CA-39113148D087
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
authority documents shall not be effective until the date of execution thereof as provided herein.
Section 3. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the city council July 24, 2023
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
DocuSign Envelope ID: 284FB477-FB62-4E0E-A7CA-39113148D087