HomeMy WebLinkAbout23-15 - ADMIN Resolution - Economic Development Authority - 2023/07/17Resolution No. 23-15
Resolution approving and authorizing the execution of a subordination agreement
Whereas, the Saint Louis Park Economic Development Authority (the “EDA”) has
previously approved a loan in the amount of $200,000 (the “loan”) under its a Revolving Loan
Fund to Pie in the Sky Properties LLC, a Minnesota limited liability company (the “borrower”), to
assist in financing costs associated with the acquisition and construction of an expansion of the
Honey & Rye Bakehouse (the “project”), pursuant to a certain loan agreement between the
borrower and the EDA; and
Whereas, the borrower’s obligations to repay the loan are secured by, among other
things, a mortgage, security agreement, and fixture financing statement providing a security
interest in certain property of the borrower (the “mortgage”) and a collateral assignment of leases
and rents from the borrower (the “assignment” and with the mortgage, the “security
documents”); and
Whereas, the borrower has also received a loan from the Small Business Administration,
an agency of the United States of America (the “lender”) in the approximate amount of
$951,000, and the lender has requested that the EDA subordinate its rights under the security
documents pursuant to a subordination agreement between the EDA and the lender.
Now, therefore, be it resolved by the board of commissioners (the “board”) of the St.
Louis Park Economic Development Authority as follows:
1. The board hereby approves the subordination agreement, together with any
related documents necessary in connection therewith, including but not limited to the
agreements referred to therein (collectively, the “subordination documents”), and hereby
authorizes the executive director to execute the subordination documents on behalf of the
EDA, and to carry out, on behalf of the EDA, the EDA’s obligations thereunder when all
conditions precedent thereto have been satisfied.
2. The approval hereby given to the subordination 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 EDA 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 EDA. The execution of any instrument by the appropriate officers of the
EDA 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
subordination documents shall not be effective until the date of execution thereof as provided
herein. In the event of absence or disability of the authorized 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 legal counsel to the EDA, may act in their behalf.
DocuSign Envelope ID: DB286143-F66E-4028-90BB-A421849CF690
Reviewed for administration: Adopted by the Economic Development
Authority July 17, 2023
Karen Barton, executive director Nadia Mohamed, president
Attest
Melissa Kennedy, secretary
DocuSign Envelope ID: DB286143-F66E-4028-90BB-A421849CF690