HomeMy WebLinkAboutCC RES 07-042 RESOLUTION AUTHORIZING EXTENSION OF $3,350,000 CREDIT FACILITY FROM FANNIE MAE Meeting Sheet
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Box: 31
Folder: RES 2007
Document: CC RES 07-042 RESOLUTION AUTHORIZING EXTENSION OF
$3,350,000 CREDIT FACILITY FROM FANNIE MAE
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.
® Adopted this 22nd day of May, 2007
Mayor
ATTEST: � l
City Clerk a
Reviewed for Administration:
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