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Home My WebLink About23-23 - ADMIN Resolution - Economic Development Authority - 2023/10/02 EDA Resolution No. 23-23 Resolution approving revisions to the contract for private development with PPL Union Park Community Limited Partnership and taking other actions in connection therewith Be it resolved by the board of commissioners (the “board”) of 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 or St. Louis Park, Minnesota (the “city”) , the 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 (the “developer”), and PPL SLP LLC, a Minnesota limited liability company and the general partner of the developer, approved by resolution on May 1, 2023, a contract for private development (the “original agreement”) which provides for the construction by the developer of 60 units of multifamily rental housing, approximately 70 underground parking stalls, and approximately nine surface parking stalls (the “minimum improvements”) on certain property legally described therein (the “development property”) and provides a loan from the city in the principal amount of $450,000 (the “AHTF loan”) to the developer from the city’s Affordable Housing Trust Fund to assist with the costs of the minimum improvements. 1.02. On June 5, 2023, the city council of the city and the board approved certain revisions to the original agreement by resolution (as amended, the “agreement”). 1.03. The developer has now requested certain changes to the agreement related to the terms of the AHTF loan, including an increase in the principal amount of the AHTF loan to $650,000, an extension of the maturity date to the date 40 years following the closing on the developer’s permanent senior financing with the Minnesota Housing Finance Agency, which maturity date is currently contemplated to be June 30, 2066, and revised repayment terms (as revised, the “revised agreement”). 1.04. In order to further 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. On May 1, 2023, the board approved (i) a loan agreement with the developer pursuant to which the authority agreed to loan the LCDA grant funds to the developer (the “LCDA loan agreement”), together with any related documents necessary in connection therewith, including without limitation a disbursing agreement providing for the disbursement of the LCDA grant funds 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”); and (ii) a loan agreement with the developer pursuant to which the authority agreed to loan the TBRA grant funds to the developer (the “TBRA loan agreement”), together with any related documents necessary in connection therewith, including without limitation a disbursing agreement providing for the disbursement of the TBRA grant funds 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”). 1.05. The developer has requested that the maturity date in the LCDA loan documents and the TBRA loan documents be extended to the date 40 years following the closing on the developer’s permanent senior financing with the Minnesota Housing Finance Agency, which maturity date is currently contemplated to be June 30, 2066, and there is now presented to the board the LCDA loan documents and the TBRA loan documents, all as revised (the “revised LCDA/TBRA loan documents”). 1.06. Further, the developer has requested that the authority enter into a master subordination agreement and estoppel certificate (the “construction loan subordination agreement”) with the developer, the city, Hennepin County, Minnesota (the “county”), the Hennepin County Housing and Redevelopment Authority, and Capital One National Association, and an amended and restated master subordination agreement and estoppel certificate (the “permanent loan subordination agreement”) with the developer, the Minnesota Housing Finance Agency, the county and the city, with the developer, the Minnesota Housing Finance Agency, the county and the authority subordinating the AHTF loan, the LCDA loan, the TBRA loan and the revised agreement to the developer’s construction and permanent financing. Section 2. Development Documents. 2.01. The board hereby approves the revised agreement, the revised LCDA/TBRA loan documents, the permanent loan subordination agreement and the construction loan subordination agreement in substantially the forms 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 AHTF loan in accordance with the revised agreement and all documents, exhibits, certifications, or consents referenced in or attached to the revised agreement, the revised LCDA/TBRA loan documents, the permanent loan subordination agreement and the construction loan subordination agreement (collectively, the “development documents”). 2.02. 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 form 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. 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 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 3. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the Economic Development Authority October 2, 2023 Karen Barton, executive director Nadia Mohamed, president Attest: Melissa Kennedy, secretary