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<br />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 II 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 IIousing 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 II Agreement; and
<br />WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement
<br />and Phase II Agreement related to the Phase IIB Senior Housing Development; and
<br />WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase 113 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 />WHERF,AS, 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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