HomeMy WebLinkAbout12-06 - ADMIN Resolution - Economic Development Authority - 2012/04/16ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 12-06
RESOLUTION APPROVING A SUBORDINATION AGREEMENT BETWEEN THE
AUTHORITY AND GRANDBRIDGE REAL ESTATE CAPITAL LLC
BE IT RESOLVED By the Board of Commissioners ("Board") of the St. Louis Park
Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority is currently administering its Redevelopment Project No. 1
("Project') pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"), and
within the Project has established The West End Tax Increment Financing District ("TIF
District").
1.02. The Authority, the City of St. Louis Park ("City") and Duke Realty Limited
Partnership entered into an Amended and Restated Contract for Private Redevelopment Dated as
of May 17, 2010 (the "Contract"), regarding redevelopment of a portion of the property within
the TIF District.
1.03. Duke Realty Limited Partnership conveyed a portion of the property that is the
subject of the Contract to WEA, LLC (the "Redeveloper") pursuant to an Assignment and
Assumption of Redevelopment Contract on October 10, 2010, on which portion the Redeveloper
intends to construct a multifamily rental housing facility (which development and related
property is referred to in the Contract as Phase IIC).
1.04. In order to receive mortgage financing for construction of the Phase IIC facility,
the Redeveloper's mortgage lender, Grandbridge Real Estate Capital LLC (the "Lender")
requires a collateral assignment of the Contract by the Authority and subordination of the
Authority's rights under the Contract with respect to Phase IIC, as set forth in the subordination
agreement presented to the Authority (the "Subordination").
1.05. The Contract provides for subordination of the Authority's rights under the
Contract, so long as such subordination contains such reasonable terms and conditions as are
mutually agreed by the Authority and Lender in writing.
1.06. The Board has reviewed the Subordination and finds that the approval and
execution of the Subordination are in the best interest of the City and its residents.
Section 2. Authority Approval; Other Proceedings.
2.01. The Subordination as presented to the Board is hereby in all respects approved,
subject to modifications that do not alter the substance of the transaction and that are approved
by the President and Executive Director, provided that execution of the Subordination by such
officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf
of the Authority the Subordination and any other documents requiring execution by the
Authority in order to carry out the transaction described in the Subordination.
2.03. Authority staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Approved by the Board of Commisioners of the St. Louis Park Economic Development
Ailthority this 16a' day of April, 2012.
Administration: Adopted by the Economic Development Authority
April 16, 2012
Attest
Secretary