HomeMy WebLinkAbout23-114 - ADMIN Resolution - City Council - 2023/10/02
Resolution No. 23-114
Resolution approving revisions to the contract for private
development and a loan from the Affordable Housing Trust Fund for
PPL Union Park Community Limited Partnership
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 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 (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.
1.03. On June 5, 2023, the city council and the board of commissioners of the authority
approved certain revisions to the original agreement by resolution (as amended, the
“agreement”).
1.04. 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 that is 40 years following the closing on
the developer’s senior permanent financing with Minnesota Housing Finance Agency (currently
contemplated to be June 30, 2066), and revised repayment terms (as revised, the “revised
agreement”).
1.05. Further, the developer has requested that the city enter into a master
subordination agreement and estoppel certificate (the “construction loan subordination
agreement”) with the developer, the authority, 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
DocuSign Envelope ID: 47BBAC52-6B0E-4D7B-AAB7-F8108933F6AC
“permanent loan subordination agreement”) with the developer, the Minnesota Housing Finance
Agency, the county and the authority, subordinating the AHTF loan and the revised agreement to
the developer’s construction and permanent financing..
Section 2. Development Documents.
2.01. The city council hereby approves the revised agreement, the permanent loan
subordination agreement and the construction loan subordination agreement in substantially
the forms 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 AHTF loan in accordance with the revised agreement and all documents,
exhibits, certifications, or consents referenced in or attached to the revised agreement, the
permanent loan subordination agreement and the construction loan subordination agreement
(collectively, the “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.
DocuSign Envelope ID: 47BBAC52-6B0E-4D7B-AAB7-F8108933F6AC
Reviewed for administration: Adopted by the city council October 2, 2023
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
DocuSign Envelope ID: 47BBAC52-6B0E-4D7B-AAB7-F8108933F6AC