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HomeMy WebLinkAboutEDA RES 2017-34C01-1.)MBIA HEIGHTS ECONOMR I I I DEVE'l-OPMEN'T" AU`11-10R.rry RESOIAT110N NO, 2017-34 RESOLUTION APPROVING A COLLATERAL ASSIGNMENT OF INTEREST IN PAYMENTS UNDER TAX INCREMENT REVENUE NOTE, BETWEEN COLUMBIA HE-EIGHT'S LEASED HOIJSING ASSOCIATES 111, LLLP AND CITIBANK, N.A. BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals,, 1,01. Pursuant to their authority under Minnesota Statutes, Sections 469.090 to 469.1081 and 469.174 to 469, 1794, as amended, the Authority and the City of Columbia Heights (the "City") established the 47t" and Grand Tax Increment Financing District within the Downtown CBD Redevelopment Project (the "Project"), for the purpose of facilitating the redevelopment of certain substandard property within the Project. 1.02, the Authority and Columbia Heights Leased Housing Associates 111, LL ,LP (the "Redeveloper") entered into that certain Contract for Private Redevelopment dated as of August 7, 2017, as arnended (the "Contract"), providing, among other things, for the construction by the Redeveloper of certain improvements (the "Minimum Improvements") on the property legally described within the Contract (the "Redevelopment Property"). 1.03. Pursuant to the teens of the Contract, the Authority will issue its Tax Increment Revenue Note, Series 2017 (the -TIF Note") to the Redeveloper on the date of Redeveloper's closing on its construction financing for construction of the Minimum Improvements, which will include execution by the Redeveloper of certain. loan documents with Citibank, N.A. as lender (the "Lender"). 1.04. The Redeveloper has requested that the Authority consent to the terms of a collateral assignment of payments under the TIF Note to the Lender, as memorialized in a Collateral Assignment of Interest in Payments under Tax Increment Revenue Note between the Redeveloper and the Lender (the "Assignment"), in substantially the form presented to the Authority. 1.05. Pursuant to the Contract, the Redeveloper must seek approval from the Authority prior to making any assignment of the Contract or Note. 1.06. The Board has reviewed the Assipiment and finds that the approval and execution of the Authority's consent thereto are in the best interest of the City and its residents. Section 2. Authority A )roval• Other Proceedin S. 101. The Assignryient, including the consent of the Authority related thereto, 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 President and Executive Director, provided that execution of the consent to the Assignirient by Such officials shall be Conclusive evidence of approval, 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the consent attached to the Assignment and any other documents reqUining execution by the Authority in order to carry out the transaction described in the Assignment, 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Adopted by the Board of Commissioners of the Columbia Heights Econornic Development Authority this 27 Ih day of November, 2017, ATTEST: Secretary�,', ....... ....... . ..... - j I aLel- Presidell �J 2