HomeMy WebLinkAboutResolution 9053RESOLUTION NO. 9053
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION 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
WHEREAS, the Mounds View Economic Development Authority (the "Authority")
and Boulevard Apartments, Limited Partnership, a Minnesota limited partnership
("Boulevard"), have entered into that certain Contract for Private Development setting forth
the terms and conditions regarding a 60 -unit affordable housing facility (the "Project") on
certain real property within Ramsey County, Minnesota and platted as Boulevard (the
"Property"); and
WHEREAS, the City of Mounds View (the "City") has received grant funds in the
amount of $500,000 from the Metropolitan Council under its Local Housing Incentives
Account Program ("LHIA Grant"), in accordance with the terms of that certain Metropolitan
Livable Communities Act Grant Agreement; and
WHEREAS, the City desires to loan proceeds of the LHIA Grant in the amount of
$500,000 to Boulevard to finance Boulevard's costs for acquisition of the Property and
construction of the Project (the "LHIA Loan"); and
WHEREAS, payment of the LHIA Loan will be secured via certain loan documents,
including a loan agreement between the City and Boulevard and mortgage on the
Property, and it has been requested that the City agree to subordinate the LHIA Loan, in
accordance with a Master Subordination Agreement and Estoppel Certificate, and agree to
a certain order of priority for disbursement of Project funds, in accordance with a Master
Disbursement Agreement; and
WHEREAS, there has been presented before the City Council a loan agreement,
mortgage, and promissory note related to the LHIA Loan (collectively, the "Loan
Documents"), a Master Subordination Agreement and Estoppel Certificate, and a Master
Disbursement Agreement; and
WHEREAS, the City Council has reviewed the Loan documents, the Master
Subordination Agreement, and the Master Disbursement Agreement and finds the
execution of the same are in the best interests of the City and of its residents.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Mounds View, Minnesota as follows:
1. That the Loan Agreement between the City of Mounds View and Boulevard
Apartments, Limited Partnership for the Metropolitan Council Local Housing
Incentives Account — Metropolitan Livable Communities Act, and the
corresponding mortgage and promissory note, are hereby approved, subject to
modifications that do not alter the substance of the transaction and that are
approved by the City Attorney.
2. That the Master Subordination Agreement and Estoppel Certificate is hereby
approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the City Attorney.
3. That the Master Disbursement Agreement is hereby approved, subject to
modifications that do not alter the substance of the transaction and that are
approved by the City Attorney.
4. That the Mayor and the City Administrator are hereby authorized and directed to
execute all appropriate documents, including, but not limited to, the above stated
documents, to effectuate the transactions contemplated by this Resolution.
Adopted by the City Council this 10th day of December, 2018.
ATTEST:
4 16 //1 Z /I
Nyl ikrry nd, City Administrator
2
Carol A. Mueller, Mayor