HomeMy WebLinkAboutResolution No. 13-04 EDALINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 13-04
RESOLUTION APPROVING A SECOND AMENDMENT TO CONTRACT FOR
PRIVATE DEVELOPMENT AND SUBORDINATION AGREEMENT
BETWEEN THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
AND LINO LAKES HOUSING LIMITED PARTNERSHIP AND A FIRST
AMENDMENT TO DECLARATION OF COVENANT AND RESTRICTION
RELATED THERETO
BE IT RESOLVED By the Board of Commissioners ("Board") of the Lino Lakes Economic
Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority administers Development District No. 1 (the "Project)" and Tax
Increment Financing District No. 1-5 (the "TIF District") pursuant to Minnesota Statutes, Sections
469.124 to 469.134 ("Development District Act") and Sections 469.174 to 469.179 (the "TIF Act").
1.02. The Authority and Cottage Homesteads of Willow Ponds (the "Original Developer")
entered into a into a Contract for Private Development dated October 3, 1995 (the "Contract"),
under which the Authority provided certain tax increment assistance to help develop a 48 -unit
housing facility known as the Cottage Homestead of Willow Ponds (the "Project").
1.03. Lino Lakes Housing Limited Partnership (the "Developer") acquired the Project
from the Original Developer, and in connection with that acquisition obtained a loan (the "HUD
Loan") insured by the Federal Housing Administration, a division of the United Stated Department
of Housing and Urban Development ("HUD").
1.04. HUD required that the Authority subordinate its rights under the Contract and
related agreements, and to that end the Authority entered into a First Amendment to Contract for
Private Development and Subordination Agreement between the Authority and Developer dated
July 1, 2010 (the "First Amendment").
105. Pursuant to the First Amendment, the Developer also executed a Declaration of
Covenant and Restriction dated July 1, 2010 (the "Declaration") which imposed certain restrictions
on the Project.
1.06. Developer has proposed to refinance the original HUD Loan with a new HUD loan
in the same principal amount, and to that end has requested that the Authority enter into a Second
Amendment to Contract for Private Development and Subordination Agreement (the
"Contract Amendment"), and has requested that the Authority consent to a First Amendment to
Declaration of Covenant and Restriction (the "Declaration Amendment"), which documents simply
reflect the new HUD loan.
1.07. The Board has reviewed the Contract Amendment and Declaration Amendment and
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determined that it is in the best interests of the Authority to approve the same.
Section 2. Authority Approval; Further Proceedings.
2.01. The Contract Amendment and Declaration Amendment as presented to the Board
are hereby in all respects approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the President and Executive Director, provided that execution
of the documents by such officials shall be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Contract Amendment and the consent to the Declaration Amendment, and any
documents referenced therein requiring execution by the Authority, and to carry out, on behalf of
the Authority its obligations thereunder.
Approved by the Board of Directors of the Lino Lakes Economic Development Authority,
this i} 5" day of ()Mize- 4v_ , 2013.
ATTEST:
Secretary
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President