09-1051rHRA RESOLUTION NO. 1051
RESOLUTION APPROVING A SUBORDINATION
AGREEMENT RELATED TO THE URBAN VILLAGE PROJECT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield ("Authority") and the City of Richfield ("City") have heretofore approved the
establishment of the Urban Village Tax Increment Financing District (the "TIF District")
within the Richfield Redevelopment Project ("Project") .and have adopted a tax increment
financing. plan for the purpose of financing certain improvements within the Project in an
effort to encourage the development of certain designated areas within the City; and
WHEREAS, the Authority and Richfield State Agency entered into that Amended
and Restated Contract for Private Development dated May 21, 2001,and amended by that
First Amendment to Amended and Restated Contract for Private Redevelopment dated
2001; and
WHEREAS, as a condition of providing refinancing on the loan for a portion of the
development known as Oaks on Pleasant, Amerisphere Multifamily Finance, L.L.C, a
Nebraska limited liability company, (the "Lender") has requested that the Authority approve
a Subordination Agreement by and among-the Authority, the Lender, the Noteholder, the
Borrower and the Redeveloper (as such parties are shown in the proposed Subordination
Agreement); and
WHEREAS, the Authority has reviewed the Subordination Agreement and finds that
the execution of the same and the Authority's performance of its obligations thereunder
are in the best interest of the City and its residents.
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 as presented to the Authority are hereby in all
respects approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the Chairperson and Executive Director; provided
that execution of such documents by such ofFcials shall be conclusive evidence of
approval
2. The Chairperson and Executive Director are hereby authorized to execute
the Subordination Agreement (or any certificates of consent related thereto) on behalf of
the Authority and to carry out on behalf of the Authority the Authority's obligations
thereunder.
3. Execution and delivery of the Subordination Agreement are contingent on:
(i) the Authority having received reimbursement from the Redeveloper
of the Authority's legal costs in connection with this matter, in an
amount not to exceed $2,500;
(ii) the staff having reviewed and approved an affidavit evidencing that
the Redeveloper is in compliance with the qualification requirements
contained in the Agreement Regarding Affordable Units.
Approved by the Board of Directors of the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota this 20th day of July, 2009.
S nne M. Sandahl, Chairperson
Attest:
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Jo;~n Helmberger, Secretary