HomeMy WebLinkAboutCC RES 08-80 RESOLUTION AUTHORIZING EXTENSION OF $3,350,000 CREDIT FACILITY FROM FANNIE MAE Meeting Sheet
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104059
Box: 31
Folder: RES 2008
Document: CC RES 08-80 RESOLUTION AUTHORIZING EXTENSION OF
$3,350,000 CREDIT FACILITY FROM FANNIE MAE
• ST. ANTHONY VILLAGE
RESOLUTION NO. 08-080
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, with assignment of portions of the Development Agreement to Silver Lake
Homes, LLC (together, 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 (the "Authority Loan") 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 the Authority Loan; and
WHEREAS, the City subsequently entered into a$3,350,000 Credit Facility with Fannie
Mae on August 27, 2004 (the "Credit Facility"); and
WHEREAS, on December 11, 2007 the Council adopted Resolution No. 07-081
authorizing an extension of the Credit Facility to December 12, 2008, due to delays in
construction of the Phase IB Development (as defined in the Development Agreement); and
WHEREAS, the Developer has granted a mortgage in favor of the HRA securing the
Authority Loan (the "Mortgage"); and
WHEREAS, Fannie Mae has agreed to extend the Credit Facility with principal and
interest payments on the Credit Facility as follows:
January 1, 2009 Interest Only
April 1, 2009 Interest Only
July 1, 2009 $175,000 Plus Interest
October 1, 2009 200,000 Plus Interest
January 1, 2010 200,000 Plus Interest
April 1, 2010 200,000 Plus Interest
July 1, 2010 200,000 Plus Interest
October 1, 2010 200,000 Plus Interest
December 1, 2010 Balance
• ; and
® WHEREAS, Fannie Mae will agree to extend the Credit Facility with principal and
interest payments equal to those stated above with the addition that $75,000 in principal of the
outstanding amount of the Credit Facility be paid by the City upon extension of the Credit
Facility; and
WHEREAS, the Developer has advised the City and the HRA that it cannot make a
corresponding$75,000 principal payment under the Authority Loan•until at least February 15,
2009; and
WHEREAS, in consideration of the City making the required principal payment under
the Credit Facility, the City is currently in negotiations with the Developer in which the City
intends to specify that (i) $75,000 under the Authority Loan will be paid to the HRA on or before
February 15, 2009, (ii)the Mortgage will be amended to extend it through the duration of the
Credit Facility, and (iii) Developer will pay all outstanding amounts due for City, HRA and third
party costs (as specified in Section 11.2(a) of the Development Agreement) on or before
February 15, 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 (i) to proceed
with negotiating with Fannie Mae the terms of an extension of the Credit Facility
until December 31, 2010, (ii) to prepare an amendment to the Mortgage extending
• it for the duration of the Credit Facility, (iii) to negotiate with the Developer for
payments on the Authority Loan consistent with the Credit Facility, (iv) to
prepare necessary documents which are hereby authorized to be executed by the
Mayor and City Manager, and(v) to continue negotiations with Fannie Mae
regarding additional revisions to terms of the Credit Facility based on the progress
of the Phase IB Development.
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• Adopted this 8th day of December, 2008
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ATTEST:
City Cle
Reviewed for Administration:
City Manager
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