11-1110r HRA RESOLUTION NO. 1110
RESOLUTION APPROVING THE EXECUTION AND
DELIVERY OF A FUNDING AGREEMENT BETWEEN THE
RICHFIELD HRA AND [PIZZA LUCE ENTITY]
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "Authority") and the City of Richfield (the "City") have previously
established the Interchange Tax Increment Financing District and the Lyndale Gardens
Tax Increment Financing District (collectively, the "TIF Districts") within the Richfield
Redevelopment Project Area and adopted tax increment financing plans therefor,
pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended, and
Sections 469.174 to 469.1799, as amended; and
WHEREAS, Minnesota Statutes, Section 469.176, Subd. 4m (the "Temporary
TIF Authority Act") authorizes the Authority to spend available tax increment from any
existing tax increment financing district, notwithstanding any other law to the contrary, to
provide improvements, loans, interest rate subsidies, or assistance in any form to
private development consisting of construction or substantial rehabilitation of buildings
and ancillary facilities, if certain conditions are met; and
WHEREAS, at its meeting on July 25, 2011, the Authority approved a spending
plan for the TIF Districts in accordance with the Temporary TIF Authority Act (the
"Spending Plan") to utilize existing tax increment revenues from the TIF Districts in
order to stimulate construction or rehabilitation of private development in a way that will
also create or retain jobs; and
WHEREAS, on August 9, 2011, the City Council of the City held a public hearing
regarding the Spending Plan and approved the Spending Plan; and
WHEREAS, [Pizza Luce Entity], a Minnesota corporation (the "Developer") has
requested assistance from the Authority under the Spending Plan in the amount of
$250,000 to assist in the financing of the acquisition and substantial rehabilitation of the
former Bridgeman's building located at 800 66th Street West in Richfield, Minnesota and
legally described in the attached Exhibit A (the "Property").
WHEREAS, the Board of the Authority has been presented with a Funding
Agreement, between the Authority and the Developer (the "Funding Agreement"),
pursuant to which the Authority will provide $250,000 of the funds available under the
Spending Plan to the Developer to acquire and rehabilitate the Property under certain
terms and conditions; and
WHEREAS, pursuant to the Funding Agreement, $250,000 in assistance will be
provided to the Developer as a forgivable loan secured by a second mortgage on the
Property; and
WHEREAS, the Authority has reviewed the Funding Agreement and finds that the
execution of the same and the Authority's performance of its obligations thereunder are in
the best interest of the City and its residents; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The Funding Agreement presented to the Authority and on file with the
Community Development Director is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by
the Chairperson and Executive Director; provided that execution of such document by
such officials shall be conclusive evidence of approval.
2. The Chairperson and Executive Director are hereby authorized to execute
the Funding Agreement on behalf of the Authority and to carry out on behalf of the
Authority the Authority's obligations thereunder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of December, 2011.
Suz' ne M. Sandahl, Chair
ATTEST:
/s Acting Secretary