1978-97106
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,. HRA RESOLUTION NO. 97
RESOLUTION AUTHORIZING-
AMENDMENT TO CONTRACT
FOR THE.SALE OF LAND
WHEREAS, the Housing and Redevelopment Authority of
Richfield, Minnesota, did by instxument dated December 20,
1977, enter into an agreement for the sale and development of
certain lands with the Lyndale Hub Nicollet Commercial
Redevelopment Area; and
WHEREAS, Section 9.01 of such agreement limits the
amount of encumbrance which can be placed upon the property
to the maximum of the purchase price.paid by the developer
to the Housing and Redevelopment Authority; and
WHEREAS, the developers have informed the Housing and
Redevelopment Authority that the existence of this limitation
is adversely affecting their ability to obtain firm mortgage
financing for the project; and
WHEREAS, it appears likely that, if the above referenced
contract is not amended in. the manner set out below, then
the project will fail.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota, as f ollows:
1. The Contract for the sale of land for private
development is amended by amending Section 9.01 thereof to
read as follows:
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.~~~~~ +_.-~;,~`~~ -"Section 9.01. Limitation Upon Encumbrance of Property.
,. -:_ Prior to the completion-of the improvements as certified
~~ the HRA, neither the Developer nor any. successors in
interest to the property or any part thereof shall
engage in any financing or other transaction creating
any mortgage or other encumbrance or lien upon the
property, whether by the express agreement or operation
of law, or suffer any encumbrance or lien to be
made or attach to the property, except for the purposes
obtaining. (a) funds only to the extent necessary for
making the improvements, and (b) such additional funds
in an amount not to exceed the purchase price paid~by
the developer to the HRA. The Developer, or its
successor in interest, shall notify the HRA in advance
of any financing, secured by mortgage or other similar
lien instrument, it proposes to enter into with respect
by
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to the property or any part thereof, and in any event,
it shall promptly notify the HRA of any encumbrance or
lien that has been created on or attached to the property
whether by voluntary act of the Developer, or otherwise,
the obligation to give such notice shall commence at the
time that Developer has knowledge of such encumbrance
or lien."
2. The Executive Director and Board Chairman are
authorized to execute all documents necessary to accomplish
the above-described amendment.
Passed by the Housing and Redevelopment Authority of the City
of Richfield, Minnesota this 26th day of June, 1978.
ATTEST:
:Ivan deman Secretary
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