HomeMy WebLinkAboutCC RES 10-056 RESOLUTION RELATING TO A PHASE II REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSINF AND REDEVELOPMENT AUTHORITY F THE CITY OF SAINT ANTHONY, MINNESOTA, AND APACHE REDEVELOPMENT, LLC (THE "DEVELOPER") Meeting Sheet
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103909
Box: 31
Folder: RES 2010
Document: CC RES 10-056 RESOLUTION RELATING TO A PHASE II
REDEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF SAINT
ANTHONY, MINNESOTA, THE HOUSINF AND REDEVELOPMENT
AUTHORITY F THE CITY OF SAINT ANTHONY, MINNESOTA, AND
APACHE REDEVELOPMENT, LLC (THE "DEVELOPER")
CITY OF ST. ANTHONY
RESOLUTION NO. 10-056
RESOLUTION RELATING TO A PHASE III REDEVELOPMENT AGREEMENT
BY AND AMONG THE CITY OF SAINT ANTHONY, MINNESOTA, THE HOUSING
AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT ANTHONY,
MINNESOTA,AND APACHE REDEVELOPMENT,LLC (THE "DEVELOPER").
WHEREAS, the City of St. Anthony (the "City") and the St. Anthony Housing and Redevelopment
Authority (the "Authority") entered into a Phase I Redevelopment Agreement, dated December 19, 2003, as
amended (the "Phase I Agreement"), under which the Developer agreed to construct, among other things, the
Commercial Element, Rental Housing Element, Phase IA For Sale Housing Element, and Phase IB For Sale
Housing Element; and
WHEREAS,the Developer or its assignee, as applicable, satisfied Developer's obligations to construct
the Commercial Element, Rental Housing Element and Phase IA Element, and the Authority issued tax
increment notes to the Developer or its assignee, as applicable, on the Commercial Element and Phase IA
Element and those notes remain outstanding; and
WHEREAS, Developer assigned its rights and obligations to construct Phase IB, but Developer's
assignee has failed to commence construction on Phase IB and the Developer will commence action to
terminate that portion of the assignment relating to Phase IB and has agreed to facilitate development of Phase
IB as part of a Phase III Development; and
WHEREAS, pursuant to the Phase I Agreement and the Phase H Redevelopment Agreement, dated
November 9, 2005, between the City, Authority and Developer (the "Phase II Agreement"), the Developer
agreed to construct the Phase IIA Patio Homes Development, the Phase IIB Senior Housing Development and
the Phase IIC Development; and
WHEREAS, the Developer completed the Phase IIA Patio Homes Development, but has not
commenced construction of Phase IIB Senior Housing Development or the Phase IIC Development in
accordance with the default dates in the development timeline in the Phase H Agreement; and
WHEREAS, the Parties have agreed to cancel all rights and obligations under the Phase I Agreement
and Phase 11 Agreement related to the Phase IIB Senior Housing Development; and
WHEREAS, the Parties have agreed to renegotiate the terms related to the Phase B Element and the
Phase IIC Development; and
WHEREAS, the City borrowed Three Million Three Hundred and Fifty Thousand Dollars
($3,350,000) from Fannie Mae to finance certain costs and expenses incurred in connection with the
acquisition of various parcels of land in the Project Area(the"Authority Loan"); and
WHEREAS, the Developer has failed to make payments to the City for the Authority Loan as required
under the Mortgage, Assignment of Leases and Rents and Fixture Financing Statement, dated September 10,
2004, and the City and the Developer have negotiated a new plan for the timely repayment of the Authority
Loan; and
WHEREAS, the Developer has agreed to transfer a portion of Phase IB property to the City and,
provided that certain conditions are met, the City has agreed to sell that portion of Phase IB property back to
the Developer at a later date; and
WHEREAS, the Developer currently owes the City certain funds for reimbursement of City consultant
costs under the Phase I Agreement; and
WHEREAS, the Parties agreed to waive the events of default under the Phase I Agreement and the
Phase II Agreement prior to the date of the Phase III Redevelopment Agreement; and
WHEREAS, the Phase III Redevelopment Agreement will identify the remaining obligations of the
Parties under the Phase I Agreement'and the Phase U Agreement and also outline the rights, responsibilities
and obligations of the Parties related to the Phase III Development.
NOW,THEREFORE,BE rr RESOLVED,by the City of St.Anthony,Minnesota as follows:
That the Mayor and City Manager are authorized to enter into a Phase III Redevelopment
Agreement by and among the City of Saint Anthony, Minnesota, the Housing and
Redevelopment Authority of the City of Saint Anthony, Minnesota, and Apache
Redevelopment,LLC.
Adopted this 14th day of September,2010.
Mayor
ATTEST: 1E I,GVc�
City Clerk
Review for Administration:
City Manager