EDA Resolution 2021-03CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 2021-03
RESOLUTION APPROVING A PLEDGE OF TIF NOTE BETWEEN GCRE —
RIVERTOWN, LLC AND BELLWETHER ENTERPRISE MORTGAGE
INVESTMENTS, LLC
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 (the "Property") within
the TIF District by means of the construction of a multifamily rental housing facility,
along with associated parking (the "Minimum Improvements"), on the Property.
1.03. The Redeveloper duly completed construction of the Minimum
Improvements, and on November 28, 2020, the Authority issued its Tax Increment
Revenue Note (the "TIF Note") to the Redeveloper pursuant to the Contract.
1.04. The Redeveloper and GCRE — Rivertown, LLC (the "Assignee") have
entered into an Assignment and Assumption Agreement, providing for the conveyance of
the Property to the Assignee and the assumption by the Assignee of Redeveloper's
obligations under the Contract, and have further agreed to the transfer of the TIF Note
from the Redeveloper to the Assignee.
1.05. In order to receive financing for the acquisition of the Minimum
Improvements, the Assignee's mortgage lender, Bellwether Enterprise Mortgage
Investments, LLC (the "Lender") requires a collateral assignment of the TIF Note by the
Assignee to the Lender, as set forth in the Pledge of TIF Note presented to the Authority
(the "Pledge Agreement"), and has requested that the Authority consent to the Pledge
Agreement by execution of a consent thereto (the "Consent").
1.06. Section 3.3(d) of the Contract provides for the assignment of the TIF Note
by the Redeveloper to a third party, and Section 7.3 of the Contract provides for certain
rights of a mortgage lender upon consent of the Authority.
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1.07. The Board has reviewed the Pledge Agreement and finds that the approval
and execution of the Consent thereto are consistent with the terms of the Contract and in
the best interests of the City and its residents.
Section 2. Authority pproval; Other Proceedings.
2.01. The Pledge Agreement 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
Consent to the Pledge Agreement by such officials shall be conclusive evidence of
approval.
2.02. The President and Executive Director are hereby authorized to execute on
behalf of the Authority the Consent to the Pledge Agreement and any other documents
requiring execution by the Authority in order to carry out the transaction described in the
Pledge Agreement.
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 24th day of March, 2021.
President
ATTEST:
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