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547340v2 MU205-47 Item No 8H Meeting Date: December 10, 2018 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Resolution No. 9053 Approving Loan Documents, Master Subordination Agreement, and Master Disbursement Agreement Related to the Local Housing Incentives Account Program (LHIA) Loan and the Boulevard Apartment Project Introduction: At the request of Boulevard Apartments, Limited Partnership (MWF), the City applied for and received grant funds in the amount of $500,000 under the Metropolitan Council’s Local Housing Incentives Programs (the “LHIA Grant”). Pursuant to the terms of the LHIA Grant Agreement, the City will loan the LHIA Grant funds to the developer to help finance the costs associated with the Boulevard apartment project. Discussion: The City intends to loan the LHIA Grant funds to the developer, and therefore must approve and execute certain forms and loan documents. These documents are attached and include a mortgage, promissory note, loan agreement, master subordination agreement, and master disbursement agreement. Resolution No. 9053 is also attached, which effectively approves all of the aforementioned documents. The City’s legal consultant, Kennedy & Graven, has reviewed each document and will be present at the City Council meeting to further discuss and answer questions pertaining to the documents. It is recommended that the City adopt Resolution No. 9053. Recommendation: Consider Resolution No. 9053 for approval. Respectfully submitted, ________________________ Brian Beeman Business Development Coordinator Attachments: 1) Resolution No. 9053 2) Mortgage 3) Promissory Note 4) LHIA Loan Agreement 5) Master Subordination Agreement 6) Master Disbursement Agreement