10-13-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator DATE: October 13, 2021 RE: Termination of Regulatory Agreement for Bigos-Cedars Lakeside, LLC. ACTION TO BE CONSIDERED: The City Council is asked to consider a motion to approve a termination of a Regulatory Agreement between the City of Little Canada and Cedars Lakeside Limited Partnership. BACKGROUND: The owner of the multifamily rental housing development (Bigos-Cedars Lakeside, LLC) known as Cedars Lakeside located at 2800 Rustic Place in Little Canada has requested a termination of an existing Regulatory Agreement. The current owner is successor in title to Cedars Lakeside Limited Partnership who, in 1997, executed a Regulatory Agreement with the City of Little Canada. This project is currently being refinanced, and the expired Regulatory Agreement (see attached) was discovered by the title company. The original bonds have all been paid, and the developer requests that the City execute a Termination of the Regulatory Agreement is no longer in effect. The Regulatory Agreement (dated January 1, 1997, filed January 29, 1997, as Document No. 2976196, by and between Cedars Lakeside Limited Partnership, a Minnesota limited partnership, City of Little Canada, Minnesota, a Minnesota political subdivision and body corporate and politic) relates to refunding bonds that were issued in 1997 as part of a payment on a prior set of bonds that were issued in 1986. All bonds have been paid off and there is no other condition which would otherwise cause this Regulatory Agreement to remain in effect. Section 2(d) of the Regulatory Agreement states that the Regulatory Agreement terminates on the date which the Occupancy Restrictions and Rental Restrictions terminate. Section 2(a) (Occupancy Restrictions) and 2(b) (Rental Restrictions) are no longer are applicable and are terminated, and thus, the Regulatory Agreement itself is no longer in effect. The title company and current lender have requested that a termination be executed by the City. RECOMMENDED ACTION: Staff recommends Council approval of a motion to approve the Termination of Regulatory Agreement between the City of Little Canada and Cedars Lakeside Limited Partnership.