09-18 HRA Resolution No. 1269 HRA RESOLUTION NO. 1269
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; and
WHEREAS, the Borrower will obtain a loan for the acquisition of the Project from Fannie
Mae (the "Senior Lender") which requires that such loan be secured by a mortgage, among other
security; and
WHEREAS, pursuant to a Subordination Agreement (Conventional) (the "Subordination
Agreement") proposed to be entered into between the Senior Lender, the Borrower, and the
Authority, the Senior Lender requires 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, the Authority previously approved the Loan Agreement, the Note, and the
Mortgage at its meeting on August 21, 2017, and the Borrower requested additional changes to the
Loan Agreement, the Note, and the Mortgage which require review and approval of the Authority;
and
WHEREAS, there has been presented before this Board forms of the Loan Agreement, the
Note, the Mortgage, the Declaration, and the Subordination Agreement, as amended; 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, the Declaration, and the Subordination Agreement 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, the
Declaration, and the Subordination Agreement for and on behalf of the Authority in
505579v2 JAE RC125-357
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. The Authority hereby approves the forms of the Note and the Mortgage in substantially
the forms on file.
4. 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 18th day of September, 2017.
'7/ ti
Mary B. pple, Chair
ATTEST:
1
Doris Rubenstein, Secretary