EDA Resolution #2022-36 Approving Acknowledgement and Consent to Pledge of TIF Note CHC to BremerCITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2022-36
RESOLUTION ACKNOWLEDGING AND CONSENTING TO THE
PLEDGE OF A TAX INCREMENT FINANCING NOTE BY CHC
MONTICELLO TOWNHOMES LLC TO BREMER BANK, NATIONAL
ASSOCIATION
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, "Headwaters"), pursuant to a Purchase and Development Contract
(the "Agreement") between Headwaters and the Authority, in order to facilitate Headwaters'
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, at the request of Headwaters, the Authority consented to an Assignment and
Assumption of Development Agreement by and between Headwaters and CHC Monticello
Townhomes LLC, a Minnesota limited liability company (the "Developer"), which includes the
assignment of the TIF Note, by executing a Consent to Assignment and Assumption Agreement;
and
WHEREAS, the Developer now requests that the Authority acknowledge and consent to
the pledge of the TIF Note pursuant to a Pledge Agreement (the "Pledge Agreement") by and
between the Developer and Bremer Bank, National Association, a national banking association
(the "Bank"), by executing a Consent and Acknowledgement (the "Consent and
Acknowledgement"), the form of which is on file with the Authority; and
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 Pledge Agreement and the Consent and
Acknowledgement 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 "Pledge Documents"), and hereby authorizes the President
and Executive Director to execute any such Pledge 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 Pledge 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 Pledge 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 Pledge Documents,
when all conditions precedent thereto have been satisfied, including without limitation the
delivery of the TIF Note to the Bank and the payment of tax increments to the Bank as provided
therein.
4. The Board hereby determines that the execution and performance of the Pledge
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 22, 2022.
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