EDA Resolution 2021-04CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 2021-04
RESOLUTION RATIFYING APPROVAL AND EXECUTION OF A
COLLATERAL ASSIGNMENT OF TIF NOTE BY GCRE — RIVERTOWN, LLC
TO 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 currently administers 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 23, 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, and previously presented a Pledge of TIF Note to the Authority
(the "Pledge Agreement"), to which the Authority approved the execution of a consent at
a special meeting held on March 24, 2021.
1.06. On March 29, 2021, the Assignee presented a proposed form of Collateral
Assignment of Redevelopment Agreement and TIF Note between the Assignee, the
Lender, and the Authority (the "Collateral Assignment") to Authority staff and requested
execution on behalf of the Authority of the Collateral Assignment in place of the Pledge
Agreement.
DOCSOPEN\MN 190\156\711528.v 1-3/30/21
1.07. Authority legal counsel has reviewed the Collateral Assignment and
determined that it is substantially similar to the Pledge Agreement previously approved
by the Authority, such that additional formal approval of the Collateral Assignment is not
required prior to execution of the Collateral Assignment by the President and Executive
Director.
Section 2. Authority Ratification of Approval; Other Proceedings.
2.01. The Collateral Assignment is hereby found and determined to be
substantially similar to the Pledge Agreement previously approved by the Board, and the
Board ratifies its approval of the Collateral Assignment.
2.02. The Board hereby approves and ratifies the actions of the President and
Executive Director in executing the Collateral Assignment in the form presented to such
officials.
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 — day of April, 2021.
r
0
President
ATTEST:
Secre
DOCSOPEN\MN 190\156\711528.v 1-3/30/21