03-16 HRA Resolution No. 1355
HRA RESOLUTION NO. 1355
RESOLUTION APPROVING SUBORDINATION OF CERTAIN RIGHTS RELATING TO
CONTRACT FOR PRIVATE DEVELOPMENT WITH CPII DEVELOPMENT LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “Authority”) entered into a Contract for Private Development,
dated September 17, 2018, with NHH Companies L.L.C., a Minnesota limited liability
company (“NHH”), as assigned by NHH to CPII Development LLC, a Minnesota limited
liability company (the “Developer”), pursuant to an Assignment of Contract for Private
Development, dated January 15, 2019, was (the “Developer”), and as further amended by
the First Amendment to Contract for Private Development, dated September 16, 2019
(collectively, the “Development Agreement”), between the Authority and the Developer,
pursuant to which the Developer agreed to acquire certain real property (the “Development
Property”) and construct thereon a development which will include (i) multifamily housing
with approximately 218 units; (ii) a parking ramp with approximately 188 spaces; and
(iii) necessary public infrastructure, including streets and utilities (the “Minimum
Improvements”); and
WHEREAS, the Developer is in the process of obtaining construction financing
from Bridgewater Bank (collectively with any other lender providing a loan to the
Developer, the “Lender”) for the Minimum Improvements; and
WHEREAS, as a condition to providing the construction financing, the Lender will
require that the Authority subordinate certain of its rights under the Development
Agreement, including but not limited to the Authority’s right of reverter under Section 9.4 of
the Development Agreement and the Authority’s right of purchase and right of first refusal
under Section 9.9 of the Development Agreement, to the rights of the Lender under the
construction loan financing documents (collectively, the “Loan Documents”); 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’s rights under Sections 9.4 and 9.9 of the Development
Agreement are hereby subordinated to the rights of the Lender under the Loan
Documents.
2. The Chair and the Executive Director are hereby authorized and directed to
execute a subordination agreement (the “Subordination Agreement”) with the
Developer and the Lender for and on behalf of the Authority upon approval of a
form of Subordination Agreement by general counsel to the Authority and the
Executive Director of the Authority, the execution of such Subordination
Agreement to constitute conclusive evidence of the Authority’s approval of any
and all modifications therein. The Subordination Agreement shall include the
1
HRA Resolution No. 1355
specific terms of the Authority's subordination of its rights under the
Development Agreement.
3. The Chair and the Executive Director are hereby authorized to execute and
deliver all additional 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 16th day of March, 2020.
1/
Mary Supp e, Chair
Maria Regan Gonz, Secretary
2
HRA Resolution No.1355