10-11-2021 EDA Packet - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: October 11, 2021 TOPIC: Consider Resolution No. 21-02, Approving Assignment of Contract for Private Development and TIF Note with Lyngblomsten at Lino Lakes, LLC VOTE REQUIRED: 3/5 BACKGROUND The EDA approved the Amended and Restated Contract for Private Development with Lyngblomsten at Lino Lakes, LLC on September 7, 2021. As part of the agreement, the EDA will issue a Tax Increment Revenue Note in the principal amount of $3,656,000 to the developer. In order to finance the Lino Lakes Project, the Developer, asked the City of Bethel to issue conduit note in the amount of $42,700,000. Choice Bank has agreed to purchase the conduit note. In addition to purchasing the conduit note, Choice bank has also agreement to provide a loan to the Developer in the amount of $2,600,000. As security for the repayment of conduit note and the loan provided by Choice Bank, the bank has requested that the Contract for Private Development and the TIF Note be assigned to Choice Bank. The bank’s attorney has drafted the attached Assignment of Contract for Private Development and TIF Note. This agreement subordinates the Contract for Private Development to the mortgage security and specifically subordinates the commencement and completion date requirements and the insurance proceeds provisions of the Contract for Private Development. However, no provision of the agreement restricts the EDA from exercising its rights and remedies under Article IX (Default Section) of the Contract for Private Development. RECOMMENDATION Staff is recommending approval of Resolution No. 21-02. ATTACHMENTS 1. Resolution No. 21-02 2. Assignment of Contract for Private Development and TIF Note 3. Choice Investor Letter