|
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY,MINNESOTA
<br /> RESOLUTION NO.18-01
<br /> RESOLUTION APPROVING COLLATERAL ASSIGNMENT AND SUBORDINATION OF
<br /> DEVELOPMENT AGREEMENT AND TAX INCREMENT REVENUE NOTE.
<br /> WHEREAS, the City of Lino Lakes, Minnesota (the "City") and the Lino Lakes Economic
<br /> Development Authority (the "Authority") have established, and the Authority administers, Development
<br /> District No. 1 (the "Development District") located within the City and have caused to be created a
<br /> Development Plan therefor, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as
<br /> amended; and
<br /> WHEREAS, within the Development District the City and the Authority have created Tax
<br /> Increment Financing(Economic Development)District No. 1-12(the"TIF District"),pursuant to Minnesota
<br /> Statutes, Sections 469.174 through 469.1794,as amended;and
<br /> WHEREAS, the Authority, United Properties Development LLC, a Minnesota limited liability
<br /> company (the "Developer"), and Distribution Alternatives, Inc., a Minnesota corporation (the "Tenant"),
<br /> have entered into a Contract for Private Development, dated July 25, 2016 (the "Contract"), pursuant to
<br /> which the Developer agreed to develop an approximately 400,000 square foot warehouse and distribution
<br /> facility with related office space and other improvements to be constructed on property located within the
<br /> TIF District for use by the Tenant in its distribution business (the "Minimum Improvements"), and in turn
<br /> the Authority agreed to reimburse the Developer for certain public improvements and site preparation costs;
<br /> and
<br /> WHEREAS, the Authority issued to the Developer its Tax Increment Revenue Note, Series 2017
<br /> (the "TIF Note"), in the original aggregate principal amount of$1,200,000, to reimburse the Assignor for
<br /> the public improvements and site preparation costs as provided in the Contract;and
<br /> WHEREAS, the Developer conveyed the Minimum Improvements and the property on which the
<br /> Minimum Improvements are located to AX Lino Lakes L.P., a Delaware limited partnership(the"Owner"),
<br /> and also assigned its interest,rights,and obligations under the Contract and the TIF Note to the Owner;and
<br /> WHEREAS, Bank of America, N.A., a national banking association (the "Lender"), has agreed to
<br /> provide a loan to the Owner in the maximum principal amount of $16,110,000 (the Lender Loan") to
<br /> finance a portion of the costs of the Minimum Improvements;and
<br /> WHEREAS, as a condition to providing the Lender Loan to the Owner, the Lender requires that
<br /> the Owner assign all of its rights under the Contract and the TIF Note to the Lender, that the Authority
<br /> agree to the collateral assignment of the Owner's rights under the Contract and the TIF Note, and that the
<br /> Authority agree to subordinate its rights under the Contract to the rights of the Lender under the loan
<br /> documents to be executed in connection with the Lender Loan (collectively, the "Lender Loan
<br /> Documents"); and
<br /> WHEREAS, there has been presented to the Board of Commissioners of the Authority a form of
<br /> Collateral Assignment of and Subordination of Development Agreement and Tax Increment Revenue
<br /> Note (the "Collateral Assignment"), proposed to be entered into between the Owner, the Lender, and the
<br /> Authority, which sets forth the terms of the collateral assignment of the Owner's rights under the
<br /> Contract and the TIF Note, the Authority's approval of such assignment, and the Authority's
<br /> 516094v1 JAE LN140-116
<br />
|