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CITY OF ST. ANTHONY
<br /> RESOLUTION NO. 10-056
<br /> RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT
<br /> BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING
<br /> AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,
<br /> MINNESOTA,AND APACHE REDEVELOPMENT,LLC (THE "DEVELOPER").
<br /> WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment
<br /> Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as
<br /> amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the
<br /> Commercial Element, Rental Housing Element, Phase IA For Sale Housing Element, and Phase IB For Sale
<br /> Housing Element; and
<br /> WHEREAS,the Developer or its assignee, as applicable, satisfied Developer's obligations to construct
<br /> the Commercial Element, Rental Housing Element and Phase IA Element, and the Authority issued tax
<br /> increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA
<br /> Element and those notes remain outstanding; and
<br /> WHEREAS, Developer assigned its rights and obligations to construct Phase IB, but Developer's
<br /> assignee has failed to commence construction on Phase IB and the Developer will commence action to
<br /> terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase
<br /> IB as part of a Phase III Development; and
<br /> WHEREAS, pursuant to the Phase I Agreement and the Phase H Redevelopment Agreement, dated
<br /> November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer
<br /> agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior Housing Development and
<br /> the Phase IIC Development; and
<br /> WHEREAS, the Developer completed the Phase IIA Patio Homes Development, but has not
<br /> commenced construction of Phase IIB Senior Housing Development or the Phase IIC Development in
<br /> accordance with the default dates in the development timeline in the Phase H Agreement; and
<br /> WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement
<br /> and Phase 11 Agreement related to the Phase IIB Senior Housing Development; and
<br /> WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase B Element and the
<br /> Phase IIC Development; and
<br /> WHEREAS, the City borrowed Three Million Three Hundred and Fifty Thousand Dollars
<br /> ($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the
<br /> acquisition of various parcels of land in the Project Area(the"Authority Loan"); and
<br /> WHEREAS, the Developer has failed to make payments to the City for the Authority Loan as required
<br /> under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10,
<br /> 2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority
<br /> Loan; and
<br /> WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and,
<br /> provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to
<br /> the Developer at a later date; and
<br /> WHEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant
<br /> costs under the Phase I Agreement; and
<br /> WHEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the
<br /> Phase II Agreement prior to the date of the Phase III Redevelopment Agreement; and
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