Resolution No. 13-04 EDA - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 13-04 RESOLUTION APPROVING A SECOND AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AND SUBORDINATION AGREEMENT BETWEEN THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AND LINO LAKES HOUSING LIMITED PARTNERSHIP AND A FIRST AMENDMENT TO DECLARATION OF COVENANT AND RESTRICTION RELATED THERETO BE IT RESOLVED By the Board of Commissioners ("Board") of the Lino Lakes Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority administers Development District No. 1 (the "Project)" and Tax Increment Financing District No. 1-5 (the "TIF District") pursuant to Minnesota Statutes, Sections 469.124 to 469.134 ("Development District Act") and Sections 469.174 to 469.179 (the "TIF Act"). 1.02. The Authority and Cottage Homesteads of Willow Ponds (the "Original Developer") entered into a into a Contract for Private Development dated October 3, 1995 (the "Contract"), under which the Authority provided certain tax increment assistance to help develop a 48 -unit housing facility known as the Cottage Homestead of Willow Ponds (the "Project"). 1.03. Lino Lakes Housing Limited Partnership (the "Developer") acquired the Project from the Original Developer, and in connection with that acquisition obtained a loan (the "HUD Loan") insured by the Federal Housing Administration, a division of the United Stated Department of Housing and Urban Development ("HUD"). 1.04. HUD required that the Authority subordinate its rights under the Contract and related agreements, and to that end the Authority entered into a First Amendment to Contract for Private Development and Subordination Agreement between the Authority and Developer dated July 1, 2010 (the "First Amendment"). 105. Pursuant to the First Amendment, the Developer also executed a Declaration of Covenant and Restriction dated July 1, 2010 (the "Declaration") which imposed certain restrictions on the Project. 1.06. Developer has proposed to refinance the original HUD Loan with a new HUD loan in the same principal amount, and to that end has requested that the Authority enter into a Second Amendment to Contract for Private Development and Subordination Agreement (the "Contract Amendment"), and has requested that the Authority consent to a First Amendment to Declaration of Covenant and Restriction (the "Declaration Amendment"), which documents simply reflect the new HUD loan. 1.07. The Board has reviewed the Contract Amendment and Declaration Amendment and 420638v1 SJB LN140-25