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HomeMy WebLinkAboutResolution No. 10-01 EDALINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 10-01 RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AND SUBORDINATION AGREEMENT BETWEEN THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AND LINO LAKES HOUSING LIMITED PARTNERSHIP 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") proposes to acquire the Project from the Original Developer, and in connection with that acquisition is obtaining 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 has required that the Authority subordinate its rights under the Contract and related agreements, and to have end has requested that the Authority enter into a First Amendment to Contract for Private Development and Subordination Agreement between the Authority and Developer (the "First Amendment"). 1.05. The Board has reviewed the First Amendment and determined that it is in the best interests of the Authority to approve the same. Section 2. Authority Approval; Further Proceedings. 2.01. The First Amendment as presented to the Board is 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 Acting Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Acting Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 370939v1 SJB LN I40-25 Approved by the Board of Directors of the Lino Lakes Economic Development Authority, this 12th day of July, 2010. ATTEST: 370939v1 SJB L1\1140-25 2