HomeMy WebLinkAbout24-08 - ADMIN Resolution - Economic Development Authority - 2024/05/06
EDA Resolution No. 24-08
Approving a partial release of mortgage and a consent to
environmental covenants
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) The authority and the Metropolitan Council (the “grantor”) entered into a Livable
Communities Demonstration Account development grant agreement, grant number SG-14542, on
December 3, 2020, as amended by a first amendment of Metropolitan Livable Communities Act
Livable Communities Account development grant agreement (collectively, the “grant agreement”),
pursuant to which the authority was awarded $1,430,000 (the “grant funds”) to fund stormwater
management, holding costs, and site acquisition (“grant-eligible activities”) for an affordable
housing development on certain property (the “project”) within the city of St. Louis Park (the
“city”) to be developed by CB SLP Housing Limited Partnership, a Minnesota limited partnership
(the “developer”) on behalf of CommonBond Communities.
(b) On July 1, 2022, the authority and the developer entered into a loan agreement, as
amended by a first amendment to loan agreement, dated October 10, 2023 (collectively, the “loan
agreement”), pursuant to which the authority agreed to loan the grant funds to the developer to
finance the grant-eligible activities (the “lcda loan”). The lcda loan was secured by a promissory
note (the “lcda note”) and a mortgage on the development property (the “lcda mortgage”), both
from the developer to the authority and dated July 1, 2022.
(c) It was discovered that the lcda mortgage inadvertently contains the incorrect legal
description for the development property, and to correct the error, the developer has requested
that the authority execute a partial release of mortgage (the “partial release of mortgage”)
releasing and discharging from the lien of the mortgage a certain portion of the mortgaged
premises.
(d) On July 1, 2022, the authority, the city, and the developer entered into a contract
for private development whereby the authority agreed to make a loan from the city’s affordable
housing trust fund in the amount of $1,800,000 (the “ahtf loan”) for the costs of the project. The
ahtf loan was secured by a promissory note (the “ahtf note”) and a mortgage on the development
property (the “ahtf mortgage” and together with the lcda mortgage, the “mortgages”), both from
the developer to the authority and dated July 1, 2022.
(e) The developer plans to record an environmental covenant and easement on the
development property (the “environmental covenant”), as required by the Minnesota Pollution
Control Agency, and has requested the authority to execute consents of mortgagee (the
together, the “consent”) to record the environmental covenant and subordinate the mortgages
to the environmental covenant.
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(f) The board has reviewed the partial release of mortgage and the consent and finds
that the execution thereof and performance of the authority’s obligations thereunder are in the
best interest of the city and its residents.
Section 2. Approval of documents.
(a) The board approves the partial release of mortgage and the consent in substantially
the forms 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 partial release of mortgage and the consent (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
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 May 6, 2024
Karen Barton, executive director Lynette Dumalag, president
Attest:
Melissa Kennedy, secretary
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