Loading...
HomeMy WebLinkAbout2022-054CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO.2022-54 RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION WITH A LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT GRANT FROM METROPOLITAN COUNCIL WITH RESPECT TO A HOUSING PROJECT BE IT RESOLVED by the City Council (the "City Council") of the City of Columbia Heights, Minnesota (the "City") as follows: Section 1. Background. 1.01. The Columbia Heights Economic Development Authority and 42 Central Limited Partnership, a Minnesota limited partnership (the "Borrower"), propose to enter into a Contract for Private Redevelopment (the "Development Agreement"), pursuant to which the Borrower agrees to acquire certain property and develop approximately 62 workforce housing apartment units, to be located at 800 42nd Avenue NE in the City, with at least 40% of the of the apartment units made affordable to individuals and their families at or below 60% of the area median income (the "Project"). 1.02. The City proposes to issue and sell its Multifamily Housing Revenue Bonds (42nd & Central Apartments Project), Series 2022A (the "Bonds"), in an amount not to exceed $9,866,800, and loan the proceeds thereof to the Borrower to provide a portion of the financing for the Project. 1.03. In order to assist with the costs of the Project, the City, on behalf of Southern Anoka Community Assistance and the Borrower, applied for and received a Livable Communities Demonstration Account (LCDA) grant in the total sum of $1,232,000, $820,000 of which will be allocated to the Project (the "LCDA Grant"), from Metropolitan Council in connection with Metropolitan Council's Transit Oriented Development (TOD) Program. 1.04. Proceeds of the LCDA Grant are authorized to be used for eligible costs of the Project (the "Grant -Eligible Activities"), as described, along with other terms and conditions of the LCDA Grant, in the Metropolitan Livable Communities Act Grant Agreement (the "Grant Agreement") proposed to be entered into between the City and Metropolitan Council. 1.05. The City intends to loan a portion of the proceeds of the LCDA Grant in the amount of $820,000 to the Borrower to provide financing for the Grant -Eligible Activities pursuant to a Loan Agreement (the "Loan Agreement") proposed to be entered into between the City and the Borrower. 1.06. To secure the repayment of the loan of the proceeds of the LCDA Grant, the Borrower will execute and deliver to the City a promissory note (the "Note") in the original aggregate principal amount of $820,000, and a Combination Mortgage and Security Agreement (the "Mortgage"), providing the City with a secured interest in the mortgaged property described therein, subject to the terms of the Subordination Agreement — Public (HUD 92420M) (the "Subordination Agreement") proposed to be entered into between Colliers Mortgage LLC, a Delaware limited liability company, the City and the Borrower. 1.07. There have been presented before the City Council forms of the following agreements: (i) the Grant Agreement; (ii) the Loan Agreement; (iii) the Note; (iv) the Mortgage; (v) the Subordination Agreement; and (vi) the Subrecipient Funding Agreement (the "Subrecipient Agreement") proposed to be CL205-81-783524.v2 entered into between the City and the Borrower relating to the loan of the proceeds of the LCDA Grant to the Borrower. Section 2. Approvals. 2.01. The City Council approves the Grant Agreement, the Loan Agreement, the Subordination Agreement, and the Subrecipient Agreement (collectively, the "Agreements") in substantially the forms on file in City Hall. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Agreements on behalf of the City. All of the provisions of the Agreements, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Agreements shall be substantially in the forms on file with the City which are hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 2.02. The Mayor and the City Manager are hereby authorized and directed to execute other agreements and certificates deemed necessary to carry out the intentions of the Agreements and this resolution. Section 3. Effective Date. This resolution shall be effective from and after the date hereof. Approved this 9th day of May, 2022, by the City Council of the City of Columbia Heights, Minnesota. Offered by Jacobs, Seconded by Buesgens. All Ayes. or ATTEST: City Cle 2 CL205-81-783524.v2