HomeMy WebLinkAbout24-02 - ADMIN Resolution - Economic Development Authority - 2024/02/05
EDA Resolution No. 24-02
Approving a letter regarding certain agreements
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) To facilitate the construction of a multi-phase, mixed use development and related
parking (the “development”) located at 4601 Highway 7 in the city of St. Louis Park (the “city”), the
authority has entered into the following agreements (the “agreements”), including: (i) a loan
agreement (the “loan agreement”) with Beltline Development LLC, a Minnesota limited liability
company (“Beltline Development”), evidenced by a promissory note (the “note”) and secured by
a mortgage (the “mortgage”); (ii) a purchase agreement with Beltline Development (the “purchase
agreement”); (iii) a contract for private development (the “mixed use contract”) with Beltline
Mixed Use LLC, a Minnesota limited liability company (“Beltline Mixed Use”); and (iv) a contract
for private development (the “affordable contract”) with the city and Beltline Station Limited
Partnership, a Minnesota limited partnership (“Beltline Station” and together with Beltline
Development, Beltline Mixed Use and other related affiliates of Sherman Development, the
“developer”). The loan agreement, note and mortgage have been amended six times, the
purchase agreement has been amended four times, the mixed use contract has been amended
once and the affordable contract has been amended three times.
(b) Due to certain delays, the developer has missed certain deadlines in the
agreements and has informed the authority and the city that it will not be in compliance with
certain terms set forth in the agreements. The developer, the city and the authority are currently
working collaboratively on amendments to the agreements (the “amendments”) which should
bring the developer into compliance, and for that reason the authority does not plan to declare
events of default under the agreements at this time.
(d) The developer has requested that the authority and the city execute a letter stating
the facts above, a form of which is presented to the board (the “letter”).
Section 2. Approval of documents.
(a) The board approves the letter in substantially the form 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
letter (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
DocuSign Envelope ID: F0D2B244-2D49-43CA-B72A-3E1054EC9253
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
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 February 5, 2024
Karen Barton, executive director Lynette Dumalag, president
Attest
Melissa Kennedy, secretary
DocuSign Envelope ID: F0D2B244-2D49-43CA-B72A-3E1054EC9253