09-17 HRA Resolution No. 1311 HRA RESOLUTION NO. 1311
RESOLUTION APPROVING SUBORDINATION
AGREEMENT RELATING TO TOWNHOMES DEVELOPMENT
WHEREAS, the City of Richfield, Minnesota (the "City") and the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") have approved
the creation of Tax Increment Financing District No. 2018-1 (a housing district) (the "TIF District")
within the Richfield Redevelopment Project in the City (the "Redevelopment Project") and have
adopted a tax increment financing plan for the purpose of financing certain improvements within
the Redevelopment Project; and
WHEREAS, on the date hereof, the Board of Commissioners of the Authority (the "Board")
approved a Contract for Private Development (the "Development Agreement") between the
Authority and Cedar Point Investments LLC, a Minnesota limited liability company (the
"Developer"), pursuant to which the Developer agreed to acquire 15 parcels of property (the
"Development Property") located within the TIF District, including four properties owned by the
Authority and conveyed to NHH Companies L.L.C, a Minnesota limited liability company and
proposed to be conveyed to the Developer, and construct on the Development Property a
development which will include approximately 80 owner-occupied affordable townhomes and
necessary public infrastructure, including streets and utilities (the "Minimum Improvements"), and
the Authority agreed to reimburse the Developer for a portion of land acquisition costs and certain
site improvement costs related thereto with tax increment generated from the Development
Property; and
WHEREAS, to make the Minimum Improvements more economically feasible, Hometown
Bank (the "Bank") has agreed to make a loan in the amount of$2,350,000 to the Developer; and
WHEREAS, as a condition to providing the Loan, the Bank is requiring that the Authority
subordinate certain of the Authority's rights under the Development Agreement, including but not
limited to the rights of the Authority with respect to the Development Property, to the rights of the
Bank under the documents to be executed in conjunction with the Loan, pursuant to the terms of a
Subordination Agreement (the "Subordination Agreement") proposed to be entered into between
the Authority, the Bank, and the Developer, a copy of which has been presented before this Board
of Commissioners of the Authority; 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 Subordination Agreement is hereby in all respects authorized, approved, and
confirmed, and the Chair and the Executive Director are hereby authorized and directed to execute
the Subordination Agreement 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
all documents deemed necessary to carry out the intentions of this resolution and the
Subordination Agreement.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 17th day of September, 2018.
(1 �
Mary Supole, Chair
Erin rieze Da.;r , Secretary