HomeMy WebLinkAbout12-03 - ADMIN Resolution - Economic Development Authority - 2012/02/06EDA RESOLUTION NO. 12-03
RESOLUTION APPROVING A SIXTH AMENDMENT TO THE CONTRACT FOR
PRIVATE REDEVELOPMENT BY AND BETWEEN THE ST. LOUIS PARK
ECONOMIC DEVELOPMENT AUTHORITY AND UNION LAND II LLC ET AL.
BE IT RESOLVED BY the Board of Commissioners ('Board") of the St. Louis Park
Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows:
Recitals.
1.01. The Authority currently administers Redevelopment Project No. 1 (the "Project'),
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act') within an area
located in the City, and has approved a modified Tax Increment Financing Plan for the Elmwood
Village Tax Increment Financing District pursuant to Minnesota Statutes, Sections 469.174 to
469.1791 (the "TIF Act'), made up of the area to be developed by Union Land II, LLC, Medley
Row, LLC, Adagio Apartments, LLC, and Camerata, LLC (collectively, the "Redeveloper") and
certain other property within the Project (the "Redevelopment Property").
1.02. The Authority and the Redeveloper executed a certain Contract for Private
Redevelopment, dated as of March 6, 2006, as amended by a First Amendment thereto dated as of
July 10, 2006, a Second Amendment thereto dated as of March 5, 2007, a Third Amendment thereto
dated as of April 28, 2008, a Fourth Amendment thereto dated as of August 17, 2009, and a Fifth
Amendment thereto dated as of October 18, 2010 (the "Contract'), whereunder the Authority
pledged Available Tax Increment (as defined in the Contract) to pay or reimburse certain costs
incurred by the Redeveloper in connection with the development of four stages of minimum
improvements to the Redevelopment Property (the "Minimum Improvements").
1.03. Due to delays in construction of the Minimum Improvements, continued
instability in the market for condominium units, and a weakened market for tax increment
revenue bonds, the parties propose to modify certain provisions of the Contract by executing a
Sixth Amendment to the Contract (the "Sixth Amendment').
Section 2. Sixth Amendment Approved; Amendment to Note Approved.
2.01. The Sixth Amendment 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 documents by
such officials shall be conclusive evidence of approval. The President and Executive Director
are hereby authorized to execute, on behalf of the Authority, the Sixth Amendment, upon receipt
of a fully executed Assignment and Assumption of Contract from Webster Group, LLC to
Adagio Apartments, LLC in connection with Stage 2 of the Minimum Improvements.
2.02. By resolution on December 19, 2011 (the "Authorizing Resolution"), the Board
approved the issuance of its Tax Increment Revenue Notes to Webster Group, LLC and Medley
Row, LLC in connection with the construction of Stages 2 and 3 of the Minimum Improvements.
Due to the assignment to Adagio Apartments, LLC by Webster Group, LLC of its rights in and
obligations under the Contract with respect to the Stage 2 Minimum Improvements, the Board
hereby approves modifying the Authorizing Resolution by replacing all references to "Webster"
or "Webster Group, LLC" with "Adagio Apartments, LLC" or "Adagio'. Subject to this
modification, the Authorizing Resolution is ratified and confirmed in all respects.
EDA Resolution No. 12-03 -2-
Attest
Secretary
Adopted by the Economic Development
Authority Feb r y 6, 2 12
resident