EDA Resolution #2022-37 Approving Subordination Agreement - HeadwatersCITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2022-37
RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A SUBORDINATION AGREEMENT
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, in connection with the Developer's financing for the Project, Bremer Bank,
National Association (the "Lender") has requested that the Authority subordinate its right of
reentry to the Development Property under Minnesota Statute and Section 3.8 of the Agreement
to the Lender's financing documents pursuant to a Subordination Agreement among the
Authority, the Developer and the Lender (the "Subordination Agreement").
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 Subordination Agreement, together with any
related documents necessary in connection therewith, including but not limited to the agreements
referred to therein (collectively, the "Subordination Documents"), and hereby authorizes the
President and Executive Director to execute any such Subordination 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.
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2. The approval hereby given to the Subordination 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.
Approved by the Board of Commissioners of the City of Monticello Economic Development
Authority on November 22, 2022.
Presiden
S\T: I
Director
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