HomeMy WebLinkAboutEDA RES 2008-08
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2008-08
RESOLUTION APPROVING A FIRST AMENDMENT TO CONTRACT
FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA
HEIGHTS ECONOMIC DEVELOPMENT AUTHOIUTY, THE CITY OF
COLUMBIA HEIGHTS, MINNESOTA AND LIGHTHOUSE ACQillSITION
GROUP, LLC
BE IT RESOLVED By the Board of Commissioners (the "Board") of the Columbia Heights
Economic Development Authority (the "Authority") as follows:
Section 1. Recitals.
1.01. The Authority and Pratt Ordway, LLC dba Pratt Ordway Properties (the "Original
Redeveloper") entered into a Contract for Private Redevelopment dated as of November 28, 2006
(the "Original Contract") providing for redevelopment of certain property (as defined in the Original
Contract, the "Redevelopment Propelty") located in the City of Colwnbia Heights, Mitmesota (the
"City").
1.02. The Original Redeveloper assigned all of its rights and interests in the Original
Contract to Colwnbia Heights COH, LLC ("COH") under an assignment and assumption
agreement, dated as of J rummy 26, 2007.
1.03. Lighthouse Acquisition Group, LLC (the "Redeveloper") has entered into a
pW'chase agreement with COH for the Redevelopment Property and will assign all of its rights and
interests in the pW'chase agreement and the Redevelopment Property to a corporate entity created by
the Redeveloper for the sole pW'pose of owning and redeveloping the Redevelopment Property (the
"New Entity"). Upon closing on the pW'chase agreement, COH will assign all of its rights and
interests in the Original Contract (as amended by the First Amendment described herein) to the New
Entity, mld the New Entity will become the Redeveloper under the Original Contract mld the First
Amendment.
1.04. The Original Redeveloper failed to complete constTUction of a senior rental housing
facility (as defined in the Original Contract, the "Minimum Improvements") on the Redevelopment
Property and the Redeveloper has requested certain assistance from the City in order to complete
such improvements.
1.05. The Original Contract is being runended (the "First Amendment") to, among other
items, include the City as a pmty to the Original Contract, as well as to provide for a propelty tax
abatement to the Redeveloper.
336690v3 AlP CL205.34
Scction 2. Authority Approval: Further Proceedings.
2.01. The First Amendment 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 City and the President and Executive Director of the Authority, provided that execution of the
docwnents by such officials shall be conclusive evidence of approval.
2.02. The President and the Executive Director are hereby authorized to execute on behalf
of the Authority the First Amendment and any documents referenced therein, requiring execution by
the Authority, and to cany out, on behalf ofthe Authority, its obligations thereunder.
Approved by the Board of Commissioners of the Columbia Heights Economic Development
Authority this 28th day of July, 2008.
ATrEST:
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Executive Director-Walter R. Fehst
336690v3 AlP CL205-34