12-12-2016 EDA Packet - Laserfiche WebLink

Home Search

491614v1 JAE LN140-116 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA RESOLUTION NO. 16-06 RESOLUTION APPROVING COLLATERAL ASSIGNMENT AND SUBORDINATION OF DEVELOPMENT AGREEMENT AND TAX INCREMENT REVENUE NOTE. WHEREAS, the City of Lino Lakes, Minnesota (the “City”) and the Lino Lakes Economic Development Authority (the “Authority”) have established, and the Authority administers, Development District No. 1 (the “Development District”) located within the City and have caused to be created a Development Plan therefor, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and WHEREAS, within the Development District the City and the Authority have created Tax Increment Financing (Economic Development) District No. 1-12 (the “TIF District”), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended; and WHEREAS, the Authority, United Properties Development LLC, a Minnesota limited liability company (the “Developer”), and Distribution Alternatives, Inc., a Minnesota corporation (the “Tenant”), have entered into a Contract for Private Development, dated July 25, 2016 (the “Contract”), pursuant to which the Developer agreed to develop an approximately 400,000 square foot warehouse and distribution facility with related office space and other improvements to be constructed on property located within the TIF District for use by the Tenant in its distribution business (the “Minimum Improvements”), and in turn the Authority agreed to reimburse the Developer for certain public improvements and site preparation costs through the issuance of a Tax Increment Revenue Note, Series 2016 (the “TIF Note”); and WHEREAS, UMB Bank N.A., a national banking association (the “Bank”), has agreed to provide the Developer with a loan (the “Project Loan”) to finance the construction of the Minimum Improvements; and WHEREAS, prior to providing the Project Loan, the Bank requires that the Authority agree to subordinate its interest and rights under the Contract to the Bank and that the Developer agree to assign its interest in the TIF Note to the Bank; and WHEREAS, Section 7.3 of the Contract authorizes the Authority to subordinate its interest and rights under the Contract to the Bank so long as the Authority and the Bank mutually agree to the conditions of subordination in writing; and WHEREAS, there has been presented before the Board of Commissioners of the Authority a Collateral Assignment and Subordination of Development Agreement and Tax Increment Revenue Note (the “Subordination and Assignment”), proposed to be executed by the Developer, the Bank, and the Authority, which provides for the subordination of the Authority’s interest and rights under the Contract and the assignment of the Developer’s interest in the TIF Note to the Bank; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Lino Lakes Economic Development Authority that: 1. The proposed Subordination and Assignment is hereby approved in all respects and satisfies the conditions set forth in Section 7.3 of the Contract .