HomeMy WebLinkAboutRES 20-084 APPROVING AMENDED AND RESTATED ASSIGNMENTS AND SUBORDINATIONS OF CONTRACT FOR PRIVATE REDEVELOPMENT WITH DORAN, BREMER BANK, AND BRIDGEWATER BANKCITY OF ST. ANTHONY VILLAGE
RESOLUTION 20-084
RESOLUTION APPROVING AMENDED AND RESTATED ASSIGNMENTS AND
SUBORDINATIONS OF CONTRACT FOR PRIVATE REDEVELOPMENT
BETWEEN THE CITY OF ST. ANTHONY VILLAGE, THE HOUSING AND
REDEVELOPMENT AUTHORITY OF ST. ANTHONY VILLAGE, MINNESOTA,
DORAN SLV, LLC, DORAN ST. ANTHONY, LLC, DORAN SLV II, LLC, BREMER
BANK, NATIONAL ASSOCIATION, AND BRIDGEWATER BANK
BE IT RESOLVED By the City Council ("Council") of the City of St. Anthony
Village, Minnesota ("City") as follows:
Section 1. Recitals.
1.01. The City and the Housing and Redevelopment Authority of St. Anthony
Village, Minnesota (the "Authority") have previously established Tax Increment
Financing District No. 3-5, a redevelopment TIF district (the "TIF District") within
Redevelopment Project Area No. 3, and have previously approved and executed a
Contract for Private Redevelopment with Doran SLV, LLC, as amended (the "Contract").
1.02. Doran SLV, LLC has subsequently partially assigned its rights and
obligations under the Contract to Doran St. Anthony, LLC and Doran SLV II, LLC,
which are affiliates of Doran SLV, LLC (Doran SLV, LLC, Doran St. Anthony, LLC,
and Doran SLV II, LLC are hereafter collectively the "Redeveloper").
1.03. In order to provide a portion of the construction financing for the
Minimum Improvements (as defined in the Contract), the Redeveloper's mortgage
lenders, Bremer Bank National Association ("Bremer") and Bridgewater Bank
("Bridgewater," and collectively with Bremer, the "Lenders") required a subordination of
certain of the City's and Authority's rights under the Contract with respect to the
Minimum Improvements, as set forth in (i) the Assignment and Subordination of
Development Agreement between the City, the Authority, the Redeveloper, and Bremer,
and (ii) the Assignment and Subordination of Development Agreement and TIF Note
between the City, the Authority, the Redeveloper, and Bridgewater (together, the
"Subordinations").
1.04. Section 7.3 of the Contract provides that the City and Authority shall
consent to subordinate their rights under the Contract, so long as such subordination
contains such reasonable terms and conditions as are mutually agreed by the parties in
writing, and the City duly approved the Subordinations.
1.05. In order to clarify certain terms of the Subordinations to preserve the first
position of certain City and Authority rights under the Contract, the parties have
negotiated and propose to execute (i) an Amended and Restated Assignment and
Subordination of Development Agreement, and (ii) an Amended and Restated
Assignment and Subordination of Development Agreement and TIF Note (together, the
"Amended Subordinations"), in the form presented to the City.
1.06. The Council has reviewed the Amended Subordinations and finds that the
approval and execution of the Amended Subordinations are consistent with the provisions
of the Contract and are in the best interest of the City and its residents.
Section 2. City Approval; Other Proceedings.
2.01. The Amended Subordinations as presented to the City are hereby in all
respects approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the Mayor and City Clerk, provided that execution
of the Amended Subordinations by such officials shall be conclusive evidence of
approval.
2.02. The Mayor and City Clerk are hereby authorized to execute on behalf of
the City the Amended Subordinations and any other documents requiring execution by
the City in order to carry out the transaction described in the Amended Subordinations.
2.03. City staff and consultants are authorized to take any actions necessary to
carry out the intent of this resolution.
Approved by the City Council of the City of St. Anth•ny Village, Minnesota this 24th
day of November, 2020.
May
ATTEST:
686767v1 MNI SA730-2