13-1159r HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
HRA RESOLUTION NO. 1159
RESOLUTION APPROVING THE FIRST MORTGAGE MODIFICATION FOR THE
BENEFIT OF LYNDALE GARDENS LLC AND AUTHORIZING THE EXECUTION
AND DELIVERY OF SUCH FIRST MORTGAGE MODIFICATION
WHEREAS, on May 2, 2012, Lyndale Gardens LLC, a Minnesota limited liability
company (the "Developer"), as mortgagor, executed and delivered a Mortgage (the "Mortgage")
to the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the
"Authority"), as mortgagee, securing certain real property located at 6330 Lyndale Avenue South
(the "Mortgaged Property"); and
WHEREAS, the Mortgage secures the Developer's obligation under the Funding
Agreement, dated November 7, 2011, as amended by the First Amendment to Funding
Agreement, dated April 13, 2013, to repay a forgivable loan provided by the Authority to the
Developer in the amount of $315,000 to help finance the costs of redeveloping the Lyndale
Garden Center site, located at 6430 - 6400 Lyndale Avenue South (the "Development Property")
in the City if Richfield; and
WHEREAS, to facilitate redevelopment of the Development Property, the Developer
intends to plat the Development Property and proposes to sell a portion of the Property to a third
party for the development of a cooperative grocery store; and
WHEREAS, the Authority currently has a first priority mortgage on the Mortgaged
Property, however, upon platting, the Mortgaged Property will be located in portions of two
platted lots; and
WHEREAS, the Developer has requested that the Authority release its existing mortgage
on the Mortgaged Property and accept a first priority mortgage on another lot within platted
Development Property; and
WHEREAS, the Authority previously consented to the Developer placing a second
mortgage for the benefit of Local Initiatives Support Corporation ("LISC") on the Mortgaged
Property pursuant to an Intercreditor and Consent Agreement, dated July 16, 2012 (the "2012
Intercreditor and Consent Agreement") and the Developer would like the Authority's consent to
place a second mortgage for the benefit of LISC on the newly described Mortgaged Property;
and
WHEREAS, the Developer has presented to the Board of the Authority a First Mortgage
Modification (the "First Mortgage Modification") which modifies the Mortgaged Property
description; and
WHEREAS,the Authority has reviewed the First Mortgage Modification and finds that the
execution thereof by the Authority and performance of the Authority's obligations thereunder are
necessary to ensure the redevelopment of the Lyndale Garden Center site; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The First Mortgage Modification 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 documents by such officials shall be conclusive evidence
of approval.
2. The Chairperson and Executive Director are hereby authorized to execute the First
Mortgage Modification on behalf of the Authority and to carry out on behalf of the Authority the
Authority's obligations thereunder.
3. The Authority hereby consents to a second mortgage for the benefit of LISC being
filed against the Mortgaged Property. If required by LISC, the Chairperson and Executive Director
are hereby authorized to execute an Intercreditor and Consent Agreement, in the form and substance
of the 2012 Intercreditor and Consent Agreement.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 29th day of July, 2013.
a.. -e-
Suza M. Sandahl, Chair
ATTEST:
tL
Nancy Gibbs, Ci I Jerk
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