HomeMy WebLinkAboutResolution 26-82 Authorizing the Approval of the Loan Agreement for the Fairway Commons ProjectCITY OF F'ALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-82
RESOLUTION AUTHORIZING THE APPROVAL OF THE LOAN AGREEMENT FOR
THE F'AIRWAY COMMONS PROJECT
WHEREAS, Fairway Commons is a proposed I l0-unit age-restricted multifamily rental
housing development located at 1670 Larpenteur Avenue West, intended to serve low- and
moderate-income households in alignment with the City's comprehensive plan and regional
housing goals; and
WHEREAS, Fairway Commons, Limited Partnership ("Borrower")-affiliated with MWF
Properties/Velair Development Company, requested that the City ("Lender") submit for a
Livable Communities/LCA Development Grant, which the Metropolitan Council awarded on
August 12,2026 in the amount of $63 I ,100, including $88,500 for environmental cleanup and
$542,600 for general construction; and
WHEREAS, Fairway Commons has requested that the City enter into a Master Disbursement
Agreement ("MDA") and Master Subordination Agreement ("MSA") to structure access to
funding sources and to establish loan priority among various lenders involved in the
development;and
WHEREAS, the City is required to enter into a Grant Agreement with the Metropolitan Council
to receive and administer these Livable Communities Demonstration Account funds, with the
Grant Agreement expected to be provided to the City in the near future; and
WHEREAS, in order to distribute the grant funds to Fairway Commons, a Loan Agreement-
evidenced by a Promissory Note and secured by a Mortgage-is necessary, with Fairway
Commons required to provide a mortgage to the City as a condition of disbursement along with
additional required documentation; and
WHEREAS, the Loan Agreement limits the loan amount to the grant proceeds received, capping
disbursement at the lesser of the loan amount or the amount disbursed by the Metropolitan
Council;and
WHEREAS, the Loan Agreement requires the City to disburse the loan once all conditions
established in the Loan Agreement are met; and
WHEREAS, the Loan Agreement gives the City the right, but not the obligation, to inspect and
audit the Borrower's records related to the loan proceeds, enforce the Loan Agreement and
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attached documents, declare default remedies, recover enforcement costs, and require
reimbursement for costs related to the Agreement; and
WHERLAS, the City is required to perform certain obligations under the Loan Agreement,
including coordinating with the Metropolitan Council, submitting required documentation,
completing formal municipal actions, and administering the Grant Agreement; and
WHEREAS, the Fairway Commons development will be subject to long-term income and rent
restrictions, including requirements that at least 40% of units be occupied by households at or
below 60% of AMI, along with additional affordability requirements under an extended-use
agreement related to federal low-income housing tax credits; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights,
Minnesota:
L The City Council hereby approves the Loan Agreement for the Fairway Commons
development and authorizes the Mayor and City Administrator to execute said agreement
and all related financing documents on behalf of the City, including completion of final
documents prior to closing so long as revisions do not materially adversely affect the
City.
Moved by: \i aSS-",r\:*-3
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
Approved
In Favor Attested by:
Against Administrator
IC
Mayor
5
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