HomeMy WebLinkAbout11-01 - ADMIN Resolution - Economic Development Authority - 2011/01/18ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 11-01
RESOLUTION APPROVING A CONTRACT FOR PRIVATE
REDEVELOPMENT WITH AND A CONSTRUCTION
ASSISTANCE PROGRAM LOAN TO CKJ PROPERTIES, LLC,
AND PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR SUCH LOAN.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the St. Louis Park
Economic Redevelopment Authority, St. Louis Park, Minnesota (the "Authority") as follows:
Section 1. Authorization; Award of Loan.
1.01. Authorization. The Authority and the City of St. Louis Park have heretofore
approved the establishment of the Victoria Ponds, Park Center Housing, CSM, Mill City,
Edgewood, Wolfe Lake, Aquila Commons, and Elmwood Tax Increment Financing District (the
"TIF Districts") within Redevelopment Project No. 1 ("Project'), have adopted a spending plan
(the "Spending Plan") pursuant to Minnesota Laws 2010, Chapter 216, Section 32 (the "Job
Creation Act') for the purpose of financing certain improvements within the Project using tax
increments from the TIF Districts to stimulate job creation, and have established a Construction
Assistance Program ("CAP") to provide further guidelines for use of the tax increments from the
TIF Districts under the Spending Plan.
Pursuant to the Job Creation Act, the Authority is authorized to provide loans, interest rate
subsidies, or assistance in any form to private development consisting of the construction or
substantial rehabilitation of buildings and ancillary facilities to create or retain jobs. Such
assistance is payable from all or any portion of revenues derived from the TIF Districts and
authorized for such use under the Spending Plan. The Authority hereby finds and determines that
it is in the best interests of the Authority to provide a CAP Loan to CKJ Properties, LLC (the
"Redeveloper") for the purpose of financing certain Public Redevelopment Costs in connection
with the construction by the Redeveloper of certain Minimum Improvements, all as such terms
are defined in the Contract for Private Redevelopment between the Authority and the
Redeveloper (the "Agreement') presented to the Board on the date hereof.
1.02. Approval of Agreement; Terms of the Loan. (a) The Authority hereby authorizes
the President and Executive Director to execute the Agreement in substantially the form
presented to the Board, 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
Agreement by those officials shall be conclusive evidence of their approval. All capitalized terms
in this resolution have the meaning provided in the Agreement unless the context requires
otherwise.
(b) Pursuant to the Agreement, the Authority will loan to the Redeveloper the CAP Loan
in the principal amount of the lesser of $70,000 or 33% of the Public Redevelopment Costs
actually incurred by the Redeveloper, evidenced by a promissory note (the "Note") and secured
by the personal guaranty of Curt Rahman (the "Guaranty") to be executed and delivered to the
Authority by the Redeveloper in substantially the forms attached hereto as Exhibit A and Exhibit
B. Proceeds of the CAP Loan shall be disbursed in accordance with Section 3.3 of the
Agreement. The CAP Loan shall bear interest at the rate of 6.0% per annum, subject to the
provisions of Section 2 hereof.
EDA Resolution No. 11-01 -2-
Section 2. Repayment of Loan. The entire unpaid balance of principal and interest
shall be due and payable upon the earlier of the following: (i) thirty (30) days after written
notification by the Authority to the Redeveloper of the occurrence of an Event of Default as
defined in the Agreement or Guaranty; or (ii) ten (10) days after the Redeveloper makes or
allows to be made any total or partial Transfer of the Redevelopment Property, if such transfer
occurs within five (5) years after the issuance of a Certificate of Completion for the Minimum
Improvements as provided in Section 4.4 of the Agreement. If no Transfer occurs within five (5)
years of the issuance of the Certificate of Completion for the Minimum Improvements, no
payments of interest shall be payable on this CAP Loan and the principal balance shall be
forgiven.
Section 3. Effective Date. This resolution shall be effective upon approval.
for Administration:
Attest:
Secretary
Adopted by the Economic Development Authority
January 18, 2011