12-21 HRA Resolution No. 1382
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1382
RESOLUTION APPROVING THE ASSIGNMENT OF CERTAIN DOCUMENTS IN
CONNECTION WITH A DEVELOPMENT LOCATED WITHIN THE 2020-1 TAX
INCREMENT FINANCING DISTRICT – HENLEY II
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) was created pursuant to Minnesota Statutes, Sections 469.001 through
469.047, as amended, and was authorized to transact business and exercise its powers by a resolution of the
City Council of the City of Richfield, Minnesota (the “City”); and
WHEREAS, the Authority established the 2020-1 Tax Increment Financing District – Henley II (the
“TIF District”) within the Richfield Redevelopment Project in the City (the “Redevelopment Project”)
pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended, in order to facilitate
redevelopment of certain property in the Redevelopment Project and promote the development of affordable
housing within the City; and
WHEREAS, the Authority and 6345 Partners, LLC, a Minnesota limited liability company
(the “Original Developer”), entered into a Contract for Private Development, dated September 22,
2020 (the “Development Agreement”), pursuant to which the Original Developer agreed to acquire
certain property within the TIF District (the “Development Property”), construct on a portion of the
Development Property an approximately 82-unit multifamily housing development, including an
accessible two-bedroom unit at ground level (the “New Housing Development”), and purchase a
22-unit apartment building with naturally occurring affordable rents located on remaining portion
of the Development Property (the “NOAH Housing Development”) and rehabilitate the existing
building without displacing the NOAH Housing Development’s current tenants (other than a
temporary displacement during rehabilitation of each unit, if necessary) and pursuant to which the
Authority agreed to provide tax increment assistance to the Original Developer in the form of a tax increment
note in the amount of $2,025,987 (the “TIF Note”) in order to make the New Housing Development and the
NOAH Housing Development (together, the “Project”) more economically feasible and to improve and retain
affordable housing in the City; and
WHEREAS, pursuant to the terms of the Development Agreement, the Authority requires that
the Original Developer execute a Declaration of Restrictive Covenants (the “Declaration”) to
ensure compliance with certain affordability covenants running with the Development Property for the
Project in consideration for the TIF Note; and
WHEREAS, Richfield Property Holdings, LLC, a Minnesota limited liability
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company (“Richfield Property Holdings”), and 15 NB Property1, LLC, a Minnesota limited
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liability company (“15 NB Property1”), intend to join the Original Developer in developing the Project;
and
WHEREAS, Drake Bank, a Minnesota state banking corporation (the “Lender”), has agreed
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to provide a loan (the “Loan”) to the Original Developer, Richfield Property Holdings, and 15
NB Property1 (collectively, the “Developer”) to assist in financing the Project; and
WHEREAS, as a condition to providing the Loan, the Lender requires that the Developer
assign its rights and interests under the Development Agreement and the TIF Note to the Lender; and
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WHEREAS, there have been presented before the Board of Commissioners of the Authority
forms of the following documents: (i) a First Amendment to Contract for Private Development (the “First
Amendment to Development Agreement”) between the Authority and the Developer, providing for the
“Developer” under the Development Agreement to include the Original Developer, Richfield Property
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Holdings, and 15 NB Property1; (ii) a Declaration of Restrictive Covenants (the “Declaration”) between
the Authority and the Developer; and (iii) a Collateral Assignment of Development Agreement and TIF
Note (the “Collateral Assignment”) between the Developer, the Lender, and the Authority, pursuant to
which the Developer will assign its rights and interest under the Development Agreement, as amended by
the First Amendment to Development Agreement, and the TIF Note, when issued, to the Lender to secure
the Loan; 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 Board hereby consents to the assignment by the Developer to the Lender of the
Developer’s rights and interest under the Development Agreement, as amended by the First Amendment to
Development Agreement, and the TIF Note.
2. The First Amendment to Development Agreement, the Declaration of Restrictive
Covenants, and the Collateral Assignment are hereby in all respects authorized, approved, and confirmed, and
the Chair and the Executive Director are hereby authorized and directed to execute the First Amendment to
Development Agreement, the Declaration, and the Collateral Assignment for and on behalf of the Authority
in substantially the forms now on file with the Executive 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.
3. 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
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this 21
day of December, 2020.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
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