06-18 HRA Resolution No. 1294
HRA RESOLUTION NO. 1294
RESOLUTION APPROVING AMENDED AND RESTATED CONTRACT FOR PRIVATE
DEVELOPMENT WITH CHAMBERLAIN APARTMENTS, LLC
WHEREAS
, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) owns certain property (the “HRA Property”) located or to be located
within one or more certain tax increment financing districts within the Richfield Redevelopment
Project (the “Project”) in the City of Richfield, Minnesota (the “City”); and
WHEREAS
, on October 24, 2017, the Authority and Chamberlain Apartments, LLC, a
Delaware limited liability company (the “Developer”) entered into a Contract for Private
Development, relating to the acquisition and development of certain land located within the Project
and owned by the Authority (the “HRA Property”) for the purposes of constructing a multifamily
housing development; and
WHEREAS
, there has been presented before this Board an Amended and Restated
Contract for Private Development (the “Development Contract”) proposed to be entered into
between the Authority and the Developer, pursuant to which the Developer will acquire the HRA
Property and certain other parcels of property within the Project (collectively, the “Development
Property”) and construct a multifamily housing development with approximately 283 apartment
units, substantially rehabilitate three 11-unit apartment buildings, and construct underground
parking (the “Minimum Improvements”), and the Authority will reimburse the Developer for a portion
of land acquisition costs and certain site improvements costs related thereto with tax increment
generated from the Development Property; and
WHEREAS
, a portion of the HRA Property was purchased with federal grant funds
obtained by the City of Richfield (the “City”) from the Metropolitan Airports Commission (the “MAC”)
under an Agreement dated March 20, 2002, which placed restrictions on the conveyance and use
of a portion of the HRA Property and restricted the use of any proceeds derived from the sale of
the HRA Property;
WHEREAS
, the City has proposed entering into a Memorandum of Understanding (the
“MOU”) with the MAC in order to confirm that the proposed conveyance and use of the HRA
Property for the Minimum Improvements is approved by the MAC and that the Authority’s proposed
use of the proceeds derived from the sale of the HRA Property are also approved by MAC; and
WHEREAS
, under the MOU, the MAC approves a form of a quit claim deed conveying the
HRA Property from the HRA to the Developer (the “Deed”) and Avigation and Clearance
Easements that the HRA must execute and record against the HRA Property prior to conveyance
of the HRA property for redevelopment; and
WHEREAS
, the Authority will allow the Developer the right to enter the HRA Property as
necessary to facilitate the construction of the Minimum Improvements within the dedicated right-of-
way for Richfield Parkway pursuant to a Right of Entry Agreement (the “Right of Entry Agreement”)
between the Authority and the Developer; and
WHEREAS
, the Developer is planning to finance the acquisition and construction of the
Minimum Improvements with financing insured by the Department of Housing and Urban
Development and the lender providing such financing, Dougherty Mortgage LLC (the “Lender”),
has requested a collateral assignment of the payments of the tax increment note to be provided to
526846v2 JAE RC125-348
the Developer by the Authority pursuant to an Assignment of Payments Under Tax Increment
Limited Revenue Note (the “Assignment of TIF Note”) between the Developer and the Lender and
consented to by the Authority; and
WHEREAS
, forms of the Development Contract, the MOU (including the Deed and
Avigation and Clearance Easements), the Right of Entry Agreement, and the Assignment of TIF
Note have been presented to the Board of Commissioners of the Authority.
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 Development Contract, the Deed, Avigation and Clearance Easements, the Right
of Entry Agreement, and the Assignment of TIF Note are hereby in all respects
authorized, approved, and confirmed, and the Chair and the Executive Directed are
hereby authorized and directed to execute the Development Contract, the Deed,
Avigation and Clearance Easements), the Right of Entry Agreement, and the
Assignment of TIF Note for and on behalf of the Authority in substantially the form 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.
2. The Chair and the Executive Director are hereby authorized to execute and deliver to
the Developer any and all documents deemed necessary to carry out the intentions of
this resolution and the Development Contract.
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HRA Resolution No. 1294
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 18th day of June, 2018.
14721/11
Mary B. Supple, Chair J
ATTEST:
7./2
Erin Vrie a Daniels,t ecretary
HRA Resolution No. 1294