EDA Resolution #2022-35 (Assignment and Assumption of P and D Contract and TIF)CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2022-35
RESOLUTION APPROVING AN ASSIGNMENT AND ASSUMPTION OF
PURCHASE AND DEVELOPMENT CONTRACT AND ASSIGNMENT
OF TAX INCREMENT FINANCING NOTE BY HEADWATERS
DEVELOPMENT LLC TO CHC MONTICELLO TOWNHOMES LLC
WHEREAS, the City of Monticello, Minnesota (the "City") and the City of Monticello
Economic Development Authority (the "Authority") have previously established the Tax
Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project) (the "TIF
District"), a housing district, within the Central Monticello Redevelopment Project No. 1 (the
"Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.001 through 469.047,
Sections 469.090 through 469.1081, and Sections 469.174 through 469.1794, all as amended;
and
WHEREAS, the Authority previously approved providing certain financial assistance,
including tax increment financing assistance in the form of the tax increment financing note (the
"TIF Note") to Headwaters Development LLC, a Minnesota limited liability company (or certain
affiliates thereof, collectively, the "Developer"), pursuant to a Purchase and Development
Contract (the "Agreement") between the Developer and the Authority, in order to facilitate the
Developer's acquisition of property within the TIF District (the "Development Property") and
construction thereon of approximately 60 rental housing units for seniors with attached two -car
garages (the "Project"); and
WHEREAS, the Developer has requested that the Authority consent to an Assignment
and Assumption of Development Agreement (the "Assignment") by and between the Developer
and CHC Monticello Townhomes LLC, a Minnesota limited liability company (the "Assignee"),
which includes the assignment of the TIF Note, by executing a Consent to Assignment and
Assumption Agreement (the "Consent"), the fonn of which is on file with the Authority.
Now, therefore, be it resolved by the Board of Commissioners (the "Board") of the City of
Monticello Economic Development Authority as follows:
1. The Board hereby approves the Assignment and the Consent in substantially the
forms presented to the Board, together with any related documents necessary in connection
therewith, including but not limited to the agreements referred to therein (collectively, the
"Assignment Documents"), and hereby authorizes the President and Executive Director to
execute any such Assignment Documents to which the Authority is a party, on behalf of the
Authority, and to carry out, on behalf of the Authority, the obligations of the Authority
thereunder when all conditions precedent thereto have been satisfied.
2. The approval hereby given to the Assignment Documents includes approval of
such additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and
approved by legal counsel to the Authority and by the officers authorized herein or by the
Authority to execute said documents prior to their execution; and said officers are hereby
authorized to approve said changes on behalf of the Authority. The execution of any instrument
by the appropriate officers of the Authority shall be conclusive evidence of the approval of such
document in accordance with the terms hereof. In the event of absence or disability of the
officers, any of the documents authorized by this Resolution to be executed may be executed
without further act or authorization of the Board by any duly designated acting official, or by
such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their
behalf.
3. Upon execution and delivery of the Assignment Documents, the officers and
employees of the Authority are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the Authority to implement the Assignment
Documents, when all conditions precedent thereto have been satisfied, including without
limitation the payment of tax increments to the Assignee as provided therein.
4. The Board hereby determines that the execution and performance of the
Assignment Documents will help realize the public purposes of the Act.
Approved by the Board of Commissioners of the City of Monticello Economic Development
Authority on November 9, 2022.
E
Preside t
ST:
ti4 Director
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