|
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
<br /> RESOLUTION NO.23-01
<br /> RESOLUTION APPROVING AN ASSIGNMENT AND ASSUMPTION OF CONTRACT FOR
<br /> PRIVATE DEVELOPMENT AND ASSIGNMENT OF TIP NOTE AND RELATED DOCUMENTS
<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("United Properties"), 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 United Properties agreed to develop an approximately 400,000 square foot warehouse and
<br /> distribution facility with related office space and other improvements to be constructed on property located
<br /> within the TIF District for use by the Tenant in its distribution business (the "Minimum Improvements"),
<br /> and in turn the Authority agreed to reimburse United Properties for certain public improvements and site
<br /> preparation costs; and
<br /> WHEREAS,the Authority issued its Tax Increment Revenue Note, Series 2017(the"TIF Note"), in
<br /> the original aggregate principal amount of$1,200,000, to United Properties to reimburse United Properties
<br /> for the public improvements and site preparation costs as provided in the Contract; and
<br /> WHEREAS, United Properties conveyed the Minimum Improvements and the property on which
<br /> the Minimum Improvements are located (the "Property") to AX Lino Lakes L.P., a Delaware limited
<br /> partnership ("AX Lino Lakes"), and also assigned its interest,rights, and obligations under the Contract and
<br /> the TIF Note to AX Lino Lakes;and
<br /> WHEREAS, Bank of America,N.A., a national banking association(the"Lender"),provided a loan
<br /> to AX Lino Lakes in the maximum principal amount of $16,110,000 (the "Lender Loan") to finance a
<br /> portion of the costs of the Minimum Improvements; and
<br /> WHEREAS, AX Lino Lakes, the Lender, and the Authority entered into a Collateral Assignment
<br /> and Subordination of Development Agreement and Tax Increment Revenue Note pursuant to which AX
<br /> Lino Lakes assigned all of its rights under the Contract and the TIF Note to the Lender, the Authority
<br /> agreed to the collateral assignment of the rights of AX Lino Lakes under the Contract and the TIF Note,
<br /> and the Authority agreed to subordinate its rights under the Contract to the rights of the Lender under the
<br /> loan documents executed in connection with the Lender Loan; and
<br /> WHEREAS, AX Lino Lakes intends to convey the Property to OIVF III Clearwater, LLC, a
<br /> Delaware limited liability company (the "Owner"), and the Owner will agree to assume the rights and
<br /> obligations of AX Lino Lakes under the Contract; and
<br /> WHEREAS, Section 8.2 of the Contract permits the assignment of the rights and duties of AX Lino
<br />
|