HomeMy WebLinkAbout24-086 - ADMIN Resolution - City Council - 2024/07/15Resolution No. 24 - 086
Approving the assignment and assumption of Perspectives CDGB deferred loan and transfer of ownership of property to Trellis Co.
Whereas, the City of St. Louis Park, through execution of a joint cooperation agreement
with Hennepin County effective October 1, 1999, cooperated in the Urban Hennepin County
Community Development Block Grant (CDBG) Program and executed a subrecipient agreement
with Hennepin County allocating funds from the CDBG Program; and
Whereas, the City of St. Louis Park and the City of Edina entered into a 30 year deferred
loan agreement December 27, 2001, lending a total of $100,474 of CDBG funds to Perspectives,
Inc. as a no-interest loan to finance a portion of the cost of acquisition of existing residential
housing located at 2759 and 2765 Louisiana Court; and
Whereas, the deferred loan required Perspectives, Inc., for itself and for its successors
and assigns, to take all necessary actions to maintain the Property as rental housing affordable
to very low-income persons and families as defined by HUD for thirty (30) years from the date
of the agreement; and
Whereas, Perspectives, Inc. has filed for Chapter 11 bankruptcy and is required to sell the
properties as part of its bankruptcy proceedings and Perspectives has accepted a suitable offer
from Trellis Co. to purchase the property and maintain all affordability requirement; and
Now therefore be it resolved that the city council of St. Louis Park authorizes the
assignment and assumption of Perspectives CDBG deferred loan and the transfer of ownership
of property to Trellis Co. or a single asset entity whose sole member is Trellis Co. and
It is further resolved that the city manager be authorized to negotiate the agreement
with Trellis Co. or affiliated entity and modify agreement terms as necessary to facilitate a
change in property ownership and to subordinate mortgages to newly incurred debt with no
change in the contract term or the total combined loan principal amount of $104,474; that
following review and approval by the city attorney’s office the city manager and mayor be
authorized to sign the amendments and related documents on behalf of the city.
Reviewed for administration: Adopted by the city council July 15, 2024:
Kim Keller, city manager Nadia Mohamed, mayor
Attest:
Melissa Kennedy, city clerk
Docusign Envelope ID: 5BA0A7EA-ED6C-4183-B660-48F425F7AFC3