CC RES 07-042 RESOLUTION AUTHORIZING EXTENSION OF $3,350,000 CREDIT FACILITY FROM FANNIE MAE

Home Browse Search

OCITY OF ST. ANTHONY RESOLUTION NO. 07-042 RESOLUTION AUTHORIZING EXTENSION OF $3,350,000 CREDIT FACILITY FROM FANNIE MAE WHEREAS, on December 19, 2003, the City and the St. Anthony Housing and Redevelopment Authority ("HRA") executed a Development Agreement with Apache Redevelopment LLC (the "Developer") for redevelopment of the area now known as Silver Lake Village; and WHEREAS, according to Section 12.11 of the Development Agreement, the City and HRA agreed to obtain short term financing from Fannie Mae for the purpose of acquiring certain commercial properties, relocating the tenants and demolishing those properties for redevelopment; and WHEREAS, by Resolution No. 04-047, adopted June 8, 2004, the City approved entering into a loan with Fannie Mae to provide this short term financing; and WHEREAS, the City subsequently entered into a $3,350,000 Credit Facility with Fannie Mae on August 27, 2004 (the"Credit Facility"); and OWHEREAS, under the Credit Facility, the current principal balance of $3,350,000 is due to Fannie Mae on or before August 27, 2007; and WHEREAS, under the Development Agreement, repayment from the Developer of loans funded through the Credit Facility are due primarily from (1) proceeds of tax increment refunding bonds for Phase IA and Phase 1B For Sale Housing projects (as defined in the Development Agreement); and WHEREAS, the Development Agreement has previously been properly amended to extend certain deadlines related to these housing projects and, therefore, proceeds of the related tax increment refunding bonds and other sources are not currently available in an amount sufficient to repay the Credit Facility on or before August 27, 2007; and WHEREAS, the Developer has requested that the City extend repayment until August 27, 2009. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Anthony as follows: 1. That the City Manager and City Attorney are hereby authorized to proceed with negotiating with Fannie Mae the terms of an extension of the Credit Facility to August O 27, 2009, and to prepare necessary documents which are hereby authorized to be executed by the Mayor and City Manager.