1995-555125
HRA RESOLUTION NO. 555
RESOLUTION ACCEPTING CERTAIN MORTGAGES AND RELEASING
LETTER OF CREDIT
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "HRA") did, on or about April 29, 1994, execute and enter into a contract for
private redevelopment (the "Contract") with CSM Corporation; and
WHEREAS, CSM Corporation subsequently assigned its interest under the contract
to CSM Investors, Inc., a Minnesota corporation (the "CSM"); and
WHEREAS, pursuant to the requirements of section 3.2(d)(3) of the Contract, CSM
has given the HRA security interests first in the form of mortgages covering the Phase I
property; and
WHEREAS, such mortgages are subsequently released in lieu of a letter of credit
and a cash deposit covering CSM's obligations under the Contract with respect to Phase I
and the Colfax Avenue area; and
WHEREAS, in accordance with the provisions of the Contract, the HRA is prepared
to convey to CSM the Phase II Property; and
WHEREAS, the Contract permits the HRA to condition its conveyance upon the
receipt of suitable security to assure CSM's continued performance under the contract
with respect to Phase II; and as substitute security with respect to CSM's letter of credit;
and
WHEREAS, the HRA has reviewed CSM's potential liability remaining under the
contract with respect to Phase II and otherwise, and has determined that security in the
form of First Mortgages on the Phase II property in the total amount of $2,203,500 will be
sufficient to adequately protect the HRA.
NOW, THEREFORE, BE IT RESOLVED by the-Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
Richfi
ATTEST:
1. Mortgages in substantially the form of the attached x ' 't ,and covering the
properties and in the amounts shown in Ex 'bit B are determined to satisfy the
preconveyance security requirement contained in the Contract and are hereby
approved.
2. Upon the recording of such Mortgages, the letter of credit in the amount of
$750,000 shall be released and returned to CSM.
Adopted by the Housing and Redevelopment ority in and fort a City of
eld, Minnesota this 17th day of July, 1995.
Thomas E. arms Chair
Vern Luettinger,