EDA Resolution 2019-01 - Assignment and Subordination for Rivertown Res Suites (Briggs) and Bell BankCITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 2019-01
RESOLUTION APPROVING AN ASSIGNMENT AND SUBORDINATION
AGREEMENT BETWEEN THE AUTHORITY, RIVERTOWN RESIDENTIAL
SUITES, LLC, AND BELL BANK
BE IT RESOLVED By the Board of Commissioners ("Board") of the City of
Monticello Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority is currently administering its Redevelopment Project No. 1
(the "Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, and within
the Project has duly established Tax Increment Financing District No. 1-40 (the "TIF
District").
1.02. The Authority and Rivertown Residential Suites, LLC (the
"Redeveloper") entered into a Contract for Private Redevelopment dated as of July 11,
2018 (the "Contract"), regarding redevelopment of the property within the TIF District by
means of the construction of a multifamily rental housing facility, along with associated
parking (the "Minimum Improvements").
1.03. In order to receive construction financing for the Minimum Improvements,
the Redeveloper's mortgage lender, Bell Bank (the "Lender") requires a collateral
assignment of the Contract and TIF Note (when and if issued pursuant to the Contract) by
the Redeveloper to the Lender and subordination of the Authority's rights under the
Contract with respect to the Minimum Improvements, as set forth in the Collateral
Assignment and Subordination of Contract for Private Redevelopment and TIF Note
presented to the Authority (the "Subordination").
1.04. Section 7.3 of the Contract provides for subordination of the Authority's
rights under the Contract, so long as such subordination contains such reasonable terms
and conditions as are mutually agreed by the Authority and Lender in writing.
1.05. The Board has reviewed the Subordination and finds that the approval and
execution of the Subordination are consistent with the terms of the Contract and in the
best interests of the City and its residents.
Section 2. Authority Approval; Other Proceedings.
2.01. The Subordination as presented to the Board is hereby in all respects
approved, subject to modifications that do not alter the substance of the transaction and
that are approved by the President and Executive Director, provided that execution of the
Subordination by such officials shall be conclusive evidence of approval.
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2.02. The President and Executive Director are hereby authorized to execute on
behalf of the Authority the Subordination and any other documents requiring execution
by the Authority in order to carry out the transaction described in the Subordination.
2.03. Authority staff and consultants are authorized to take any actions
necessary to carry out the intent of this resolution.
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 13th day of February, 2019.
Presiden
ATTEST:
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