07-08-2015 Council Packet - Laserfiche WebLink

Home Browse Search

BRIGGS ANO MORGAN Joel Hanson, City Administrator June 30, 2015 Page 2 Agreement" and, with the Series 201.113 Loan Agreement, the "Prior Loan Agreements"), between the City and the Borrower, In order to secure its obligations under the Prior Loan Agreements and the Arden Hills Notes, the Borrower executed and delivered to Arden Hills and the City a Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Bents, dated September 9, 2011 (the "First Mortgage"), from the Borrower, as mortgagor, to Arden Hills and the City, as mortgagees. Arden Hills and the City assigned to the Lender their right, title and interest in and to the First Mortgage pursuant to the terms of an Assignment of Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents, dated as of January 1, 2012 (the "Assignment of First Mortgage"), Construction of the Phase I Project has been completed and the Borrower has requested that Arden Hills assist in the development of a senior housing facility comprised of forty (40) independent -living, rental apartments to be located in two buildings (twenty (20) apartments per building), together with necessary common areas and community space (the "Phase II Project"), to be located at 3200 Lake Johanna Boulevard in Arden Hills, In accordance with the terms of an agreement between the Borrower and the Lender, the Borrower has requested that the City approve certain amendments to the outstanding Notes, in conjunction with the financing by Arden Hills of the Phase II Project, Kennedy & Graven, Chartered, as bond counsel with respect to the Phase II Project, has determined that the proposed amendments to the Notes constitute a significant modification to the Notes and will cause a reissuance of the Notes under federal income tax law and, upon the effective date of such amendments, the Notes will be treated as if they were refunded on such dates, The amended Series 201113 Note (the "Amended Series 2011E Note") will continue to constitute a revenue obligation of the City secured by: (i) the revenues derived from the Series 201113 Loan Agreement; and (ii) certain security including a mortgage lien on the Phase I Project, and additional security and collateral required by the Lender, The amended Series 201213 Note (the "Amended Series 2012B Note" and, with the Amended Series 201113 Note, the "Amended Notes") will continue to constitute a revenue obligation of the City secured by: (i) the revenues derived from the Series 2012B Loan Agreement; and (ii) certain security including a mortgage lien on the Phase I Project, and additional security and collateral required by the Lender, 7I59759v1