HomeMy WebLinkAbout2006-214 Council ResolutionCouncil Member Stoltz introduced the following resolution and moved its
adoption:
CITY OF LINO LAKES
RESOLUTION NO 06 -214
RESOLUTION APPROVING EXTENSION OF METROPOLITAN COUNCIL
GRANT AGREEMENT AND LOAN TO LLAH LIMITED PARTNERSHIP
BE IT RESOLVED By the City Council ( "Council ") of the City of Lino Lakes, Minnesota
( "City ") as follows:
Section 1. Recitals.
1.01. 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 Lino Lakes Economic Development Authority ( "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 and Authority have determined to 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.
Section 2. City Approval; Further Proceedings.
•
•
•
2.01. The City hereby approvers the Extension and authorizes the Mayor and City
Administrator to execute that document on behalf of the City in substantially the form on file in City
Hall.
2.02. The City assigns to the Authority the proceeds of the grant under the Grant
Agreement, as extended under the Extension, and approves the loan of such proceeds to the
Borrower pursuant to the Note and the Mortgage.
2.03. The City approves the Note and Mortgage in the forms on file in City Hall and
authorizes the Authority President and Executive Director to execute such documents, subject to
modifications that do not alter the substance of the transaction and that are approved by the
Authority President and Executive Director, provided that execution of the documents by such
officials shall be conclusive evidence of approval.
2.04. The City further authorizes the Authority President and Executive Director to
execute the Master Subordination Agreement, the Master Disbursing Agreement, and any other
documents reasonably required to carry out the intent of this resolution, all in forms approved by
those officials.
2.05. The Mayor and City Administrator are hereby authorized to execute on behalf of the
City any other documents or certificates requiring execution by the City in order to carry out the
intent of this resolution.
Approved by the City Council of the City of Lino Lakes, Minnesota this 18th day of
December, 2006.
Mayo
ATTEST:
The motion for the adoption of the foregoing resolution was duly seconded
by. Council Member Reinert and upon vote eing taken thereon, the following
voted in fabor thereof: Stoltz, Reinert, O'Donnell, Carlson, Bergeson
The following voted against same: none
2