Resolution No. 06-05 EDA - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 06-05 RESOLUTION ACCEPTING METROPOLITAN COUNCIL GRANT AND APPROVING LOAN TO LLAH LIMITED PARTNERSHIP 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 City of Lino Lakes (the "City") previously obtained a grant from the Metropolitan Council (the "Met Council") in the amount of $225,000, pursuant to a Metropolitan Livable Communities Act Grant Agreement dated December 16, 2004 (the "Grant Agreement"). 1.02. Pursuant to the Grant Agreement, the City is authorized to make proceeds of the grant available to help finance a 60 -unit affordable rental housing facility (referred to as the Lakewood Apartments"), as part of the Legacy at Woods Edge project. 1.03. The original Grant Agreement expires as of December 31, 2006, but the Met Council has approved an Amendment and Extension of Metropolitan Livable Communities Act Local Housing Incentives Account Grant Agreement (the "Extension"), which authorizes a one-year extension for use of the grant funds. 1.04. The Grant Agreement, as extended, authorizes the City to use the grant funds to make deferred loans, without interest, to carry out the purposes of the Grant Agreement. 1.05. The Authority currently administers Development District No. 1 (the "Project)" pursuant to Minnesota Statutes, Sections 469.124 to 469.134 ("Development District Act"), within which the Lakewood Apartments is to be constructed. 1.06. The City has determined to assign the grant proceeds to the Authority, with the direction that the Authority loan the grant funds to LLAH Limited Partnership (the "Borrower") to assist in development of the Lakewood Apartments, pursuant to a Promissory Note (the "Note"), payable without interest on the later of the 30th anniversary of the date of the Note or the term of Borrower's MHFA loan, or upon earlier default, and secured by a mortgage on the property on which the Lakewood Apartments will be constructed (the "Mortgage"). 1.07. In connection with such loan, the Authority expects to enter into a master subordination agreement (the "Master Subordination Agreement") and a master disbursing agreement (the "Master Disbursing Agreement") among the Authority, the Borrower, the Borrower's title company, and other lenders participating in financing of the Lakewood Apartments.