01-15 HRA Resolution No. 1323
HRA RESOLUTION NO. 1323
RESOLUTION APPROVING COLLATERAL ASSIGNMENT OF SECONDARY
DEVELOPER TIF NOTE
WHEREAS
, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “Authority”) has entered into an Amended and Restated Contract
for Private Development, dated July 16, 2018 (the “Development Agreement”), between
the Authority and Lyndale Gardens, LLC, a Minnesota limited liability company (the
“Master Developer”), pursuant to which the Master Developer, or a secondary developer
selected by the Master Developer, agreed to construct 8 rental townhome units and a
66-unit multifamily apartment complex, including 7 affordable residential units (collectively,
the “Secondary Developer Improvements”), on property located within the City of Richfield,
Minnesota (the “Development Property”); and
WHEREAS
, to make the Secondary Developer Improvements economically
feasible, the Authority agreed to provide to the Master Developer a Tax Increment Limited
Revenue Note (the “TIF Note”) in a maximum principal amount of $1,491,077; and
WHEREAS
, pursuant to an Agreement between Master Developer and Secondary
Developer executed in December 2018 (the “Master Developer/Secondary Developer
Agreement”) between the Master Developer and Richfield Property Holdings, LLC, a
Minnesota limited liability company, and 15TH NB Property1 LLC, a Minnesota limited
liability company (together, the “Secondary Developer”), the Secondary Developer agreed
to construct the Secondary Developer Improvements as required under the Development
Agreement, and the Master Developer agreed to cause the Secondary Developer TIF
Note defined in and contemplated by the Development Agreement to be issued in favor of
the Secondary Developer in place of the TIF Note; and
WHEREAS
, Drake Bank, a Minnesota banking corporation (the “Lender”), has
agreed to make a loan to the Secondary Developer (the “Lender Loan”) in the amount of
$1,340,000 to finance in part the development of the Secondary Developer Improvements;
and
WHEREAS
, prior to making the Loan, the Lender requires that the Secondary
Developer assign all of its interests in the Secondary Developer TIF Note to the Lender to
secure the obligations of the Secondary Developer with respect to the Lender Loan and
that the Authority issue the Secondary Developer TIF Note directly to the Lender; and
WHEREAS
, the Secondary Developer is permitted under Section 3.4(c) of the
Development Agreement to assign the Secondary Developer TIF Note to the Lender; and
WHEREAS
, there has been presented before this Board of Commissioners of the
Authority a form of Collateral Assignment of Secondary Developer TIF Note (the
“Collateral Assignment”) proposed to be entered into between the Authority, the
Secondary Developer, and the Lender, pursuant to which the Secondary Developer will
HRA Resolution No. 1323
assign its right, title, and interest in the Secondary Developer TIF Note to the Lender,
including the Secondary Developer's right to receive payments under the Secondary
Developer TIF Note, and the Authority will issue the Secondary Developer TIF Note
directly to the Lender; 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 that:
1. The Collateral Assignment is hereby in all respects authorized, approved, and
confirmed, and the Chair and the Executive Director are hereby authorized and
directed to execute the Collateral Assignment 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 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 15th day of January, 2019.
, Chair
, Secretary
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HRA Resolution No. 1323