HomeMy WebLinkAboutResolution No. 06-05 EDALINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 06-05
RESOLUTION ACCEPTING METROPOLITAN COUNCIL GRANT AND
APPROVING LOAN TO LLAH 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 City of Lino Lakes (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 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 has determined to assign the grant proceeds to the Authority, with the
direction that the Authority 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. Authority Approval; Further Proceedings.
2.01. The Authority accepts the assignment from the City of the grant proceeds under the
Grant Agreement, as extended under the Extension, and agrees to be bound by all terms and
conditions of the Grant Agreement and the Extension.
2.02. The Authority 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.
2.03. The Authority further authorizes the 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.
Approved by the Board of Commissioners of the Lino Lakes Economic Development
Authority this 18`h of December, 2006.
ATTEST:
2
drr
GEORGIA A. WOLTJER
NOTARY PUBUC - MINNESOTA
My Commission Expires Jan. 31, 2009