HomeMy WebLinkAbout25-036 - ADMIN Resolution - City Council - 2025/02/18
Resolution No. 25-036
Approving contract for private development and a loan to Terasa,
LLC from the affordable housing trust fund
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; approval and authorization.
1.01. The city and the St. Louis Park Economic Development Authority (the “authority”)
will establish the Terasă Tax Increment Financing District (the “TIF district”), a housing district
within Redevelopment Project No. 1 (the “project”), and will adopt a tax increment financing plan
for the purpose of financing certain improvements within the project.
1.02. 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.
1.03. To facilitate the development of certain property within the project and TIF district,
the authority, the city, and Terasă, LLC, a Minnesota limited liability limited partnership (the
“developer”), have negotiated a contract for private development (the “agreement”) which
provides for the construction by the developer of a 220,580 to 245,099 square foot building
including 200-223 units of multifamily rental housing and 18,601 to 20,668 square feet of retail
space (the “minimum improvements”) on certain property legally described therein (the
“development property”), the issuance by the authority of a tax increment revenue note to the
developer, and the loan of proceeds of funds from the city’s Affordable Housing Trust Fund in the
principal amount not to exceed $1,000,000 (the “city AHTF loan”) to the developer.
Section 2. Approval of city AHTF loan.
2.01. The city agrees to make the city AHTF loan to the developer from the city’s
Affordable Housing Trust Fund in accordance with the terms of Section 3.5 of the agreement in the
maximum principal amount of $1,000,000.
2.02. The city agrees to accept the promissory note and the mortgage, in substantially
the forms set forth in the agreement, from the developer as security for the repayment of the city
AHTF loan.
Section 3. The agreement and related documents.
3.01. The city council hereby approves the agreement in substantially the form
presented to the city council, together with any related documents necessary in connection
therewith, including without limitation all documents, exhibits, certifications, or consents
referenced in or attached to the agreement, including without limitation the mortgage and
promissory note (all as defined in the agreement) (the “development documents”).
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3.02. 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.
3.03. 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, including without limitation the
issuance of tax increment revenue obligations thereunder when all conditions precedent thereto
have been satisfied and reserving funds for the payment thereof in the applicable tax increment
accounts.
Section 4. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the city council February 18, 2025:
Kim Keller, city manager Nadia Mohamed, mayor
Attest:
Melissa Kennedy, city clerk
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