06-10-2026 Council Packet - Laserfiche WebLink

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The two awards consist of: • A 2024 LCDA allocation of $490,000. • A 2025 LCDA allocation of $432,500. To streamline administration, reporting, and regional compliance, these awards are being rolled into a single subrecipient agreement totaling $922,500. Because the City serves as the primary grantee to the Metropolitan Council, a formal pass-through structure is required to transfer the funds and compliance obligations to LC Apartments, LP as the developer. The City Attorney has prepared the comprehensive subrecipient framework, which is comprised of five unique documents: the Loan Agreement, Promissory Note, Combination Mortgage, Disbursement Agreement, and Subordination Agreement. Together, these instruments legally establish the program loan, secure the public funding against the project's real estate, outline the construction draw and title clearance procedures, and satisfy the priority requirements of the project's senior lenders. Approval of the subrecipient agreement will authorize the execution of these five documents, allowing the developer to initiate the reimbursement draw process as project construction advances Recommendation: Staff recommends the Council: Approve The Livable Communities Demonstration Account (LCDA) Subrecipient Agreement, comprised of the following five documents, for the 106-unit Little Canada Senior Apartments project at 99 County Road B East: 1. The Loan Agreement between the City of Little Canada and LC Apartments, LP, which rolls the 2024 ($490,000) and 2025 ($432,500) allocations into a single $922,500 program loan; 2. The Promissory Note in the principal amount of $922,500.00 executed by LC Apartments, LP; 3. The Combination Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Financing Statement executed by LC Apartments, LP for the benefit of the City; 4. The Disbursement Agreement by and among LC Apartments, LP, Guaranty Commercial Title, Inc., and the City; and 5. The Subordination Agreement by the City and LC Apartments, LP in favor of U.S. Bank Trust Company, National Association (as Fiscal Agent) and Allianz Life Insurance Company of North America (as Senior Funding Lender); and to authorize the Mayor and City Administrator to execute all applicable documents on behalf of the city. Attachments: • Attachment A: Loan Agreement • Attachment B: Promissory Note • Attachment C: Combination Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Financing Statement • Attachment D: Disbursement Agreement • Attachment E: Subordination Agreement