06-10-2026 Council Packet - Laserfiche WebLink

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DISBURSEMENT AGREEMENT THIS AGREEMENT, made this ___ day of ____________, 2026, by and among LC Apartments, LP, a Minnesota limited partnership ("Borrower"); Guaranty Commercial Title, Inc., a Minnesota corporation ("Title"); and the City of Little Canada, Minnesota, a Minnesota municipal corporation (the "Lender"). WHEREAS, pursuant to the Loan Agreement (Metropolitan Council Livable Communities Demonstration Account (LCDA)) between the Lender and Borrower dated as of _____________, 2026 (the "Loan Agreement"), the Lender is this day making a loan to Borrower in the amount of $922,500.00 (the "LCDA Loan"), as described in the Loan Agreement; and WHEREAS, the Lender requires that the proceeds of the LCDA Loan ("Loan Proceeds") be used exclusively to pay only the actual LCDA Project Costs as defined in the Loan Agreement and directly relating to the construction of Project Improvements, as approved by the Lender, at the property located at 99 County Road B, Little Canada, Minnesota (hereinafter referred to as "Permitted Uses"); and WHEREAS, Title will serve as disbursing agent for the Loan Proceeds. NOW, THEREFORE, it is agreed by and among the parties as follows: l. Portions of the Loan Proceeds of up to $922,500.00 will be paid from time to time by the Lender to Title to be disbursed pursuant to the terms of the Loan Agreement and this Agreement upon review and approval of disbursement requests as provided herein. No Loan Proceeds shall be disbursed prior to the Construction Start Date. 2. Title shall disburse the Loan Proceeds to pay LCDA Project Costs as described in the Loan Agreement. Title shall not disburse any Loan Proceeds or other funds for any developer/contractor fees, consultant fees, overhead and interim operating costs reimbursement or any other fee until all other LCDA Project Costs as defined in the Loan Agreement and as approved by the Lender, the Metropolitan Council, and Title have been paid. The Metropolitan Council is the final arbiter of what costs are eligible for reimbursement under the LCDA Loan Agreement. 3. Requests for disbursement of the Loan Proceeds shall be originated by Borrower by delivering to the Lender a Disbursement Request in the form attached hereto as Exhibit A, an LCDA Payment Request Summary Form as required and provided by the Metropolitan Council, and AIA Documents 0702 and 703, (along with an invoice from each provider of service to be paid). Within ten (10) working days after receipt of the Disbursement Request, the Lender shall approve or disapprove the request, and if approved, shall forward the Disbursement Request and a sufficient amount of the Loan Proceeds to pay said Disbursement Request to Title. In the event the Lender fails to approve or disapprove the disbursement Request within ten (10) working days of receipt thereof, the Lender shall be deemed to have approved such Disbursement Request.