08-21 HRA Resolution No. 1264 HRA RESOLUTION NO. 1264
RESOLUTION APPROVING A LOAN AND THE
EXECUTION AND DELIVERY OF CERTAIN
DOCUMENTS RELATED TO AN AFFORDABLE
HOUSING PROJECT IN THE CITY OF RICHFIELD
WHEREAS, Aeon Seasons Park LLC, Minnesota limited liability company or another
affiliate of Aeon (the"Borrower"), proposes to acquire the 422 unit Seasons Park apartment
complex (the "Project") on certain property located at 951 East 77th Street in the City of
Richfield, Minnesota (the "City"); and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "Authority") has proposed to make a loan to the Borrower in the principal amount of
$150,000 (the "Authority Loan") in order to make the Project more economically feasible and to
preserve affordable housing in the City, pursuant to the terms of a Loan Agreement (the "Loan
Agreement") between the Authority and the Borrower; and
WHEREAS, the Borrower will execute and deliver to the Authority a Promissory Note (the
"Note") and a Mortgage (the "Mortgage") to secure its repayment obligations to the Authority and
will also execute and deliver a Declaration of Restrictive Covenants (the "Declaration") which will
set forth the affordability covenants for the Project;
WHEREAS, the Borrower will obtain a loan for the acquisition of the Project and the lender
(the "Senior Lender") will likely require that such loan be secured by a mortgage, among other
security; and
WHEREAS, the Senior Lender may require that the Authority subordinate its interests
under the Loan Agreement and the Note to the interests of the Senior Lender under the Senior
Lender's loan documents; and
WHEREAS, there has been presented before this Board forms of the Loan Agreement, the
Note, the Mortgage and the Declaration; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Authority Loan is hereby approved and shall be a deferred loan, the repayment of
which shall be as provided by the terms of the Loan Agreement.
2. The Loan Agreement and the Declaration are hereby in all respects authorized,
approved, and confirmed, and the Chair and the Executive Director are hereby
authorized and directed to execute the Loan Agreement and the Declaration for and on
behalf of the Authority in substantially the forms now on file with the Community
Development Director but with such modifications as shall be deemed necessary,
desirable, or appropriate, the execution thereof to constitute conclusive evidence of
their approval of any and all modifications therein.
3. If a subordination agreement is required by the Senior Lender, the Chair and the
Executive Director are hereby authorized and directed to execute a subordination
agreement following review and comment by Authority staff and Authority's legal
counsel.
4. The Authority hereby approves the forms of the Note and the Mortgage in substantially
the forms on file.
5. The Chair and the Executive Director are hereby authorized to execute and deliver any
and all documents deemed necessary to carry out the intentions of this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of August, 2017.
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Mary B. u,ple, Chair
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Dor' Rubenstein, Secretary
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