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HomeMy WebLinkAboutEDA Resolution No. 2026-05COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.2O2GO5 RESOLUTION APPROVING A Df,VELOPMf,NT ASSISTANCE AGREf,MENT WITH THE CITY OF COLUMBIA HEIGHTS AND ALATUS COLUMBIA HEIGHTS II LLC BE IT RESOLVED by the by the Board of Commissioners (he "Board of Commissioners") of the Columbia Heights Economic Development Authority (the "Authoriry') as follows: I .01 . The City of Columbia Heights, Minnesota (the "City") and the Authority have previously established the Alatus Tax Increment Financing District (the "TIF District"), a redevelopment district within the Downtown Central Business Redevelopment Project in the City, and approved a tax increment financing plan therefor, all in accordance with Minnesota Statutes, Sections 469. 174 through 469.1794, as amended. I .02. Alatus Columbia I leights II LLC, a Delaware limited liability company (the "Developer"), owns certain property located in the TIF District (the "Developer Parcel"), and the City owns certain property also located in the TIF District legally described in EXHIBIT B attached to the Agrecment hereinafter defined (the "City Parcel" and together with the Developer Parcel, the "Development Property"). If ncccssary for the purpose of developing a multi-phased mixed-use development project on the Development Properry, currently anticipated to include high-density residential housing, medium-density residential housing, commercial/retail space, and public open spacc (the "Project"), the City will convey the City Parcel to the Authority, for conveyance by the Authoriry to the Developer pursuant to an amendment to the Agreement. I .03. To make the Project financially feasible, the City provided a bridge loan to the Developer ofthe proceeds ofthe City's Taxable Ceneral Obligation Temporary Tax Increment Bond, Series 2021A, issued by the City on July 21,2021 in the original aggregate principal amount of$5,935,000 (the "Series 2021A Temporary TIF Bond"), which the Developer used to purchase the Developer Parcel and pay costs of demolition and related loan transaction costs. The Series 2021A Temporary TIF Bond was redeemed and prepaid by the City's Taxable General Obligation Temporary Tax Increment Refunding Bonds, Series 20234, issued by the City on December 14. 2023. in the original aggregate principal amount of s6,615,000 (the..Series 2023A Temporary TIF Bond"). The City anticipates issuing its Taxable General Obligation Tax Increment Refunding Bonds, Series 2026A, on or about January 27, 2026, in the original aggregate principal amount of $7,635,000 (the "series 20264 TIF Bond"), to redeem and prepay thc Series 2023A Temporary TIF Bond. 1.04. The Series 2026A TIF Bond is payable primarily liom the tax increments derived from the Development Property and the improvements thereon, as further described in that certain Development Assistance Agreement (the "Agreement") between the Authority, the City, and the Developer. 1.05. There has been presented to the Board a form ofthe Agreement, which also includes a form of a Minimum Assessment Agreement (the "Assessment Agreement") to be executed and delivered by the Developer, the Authority, and the tax assessor for each phase of the Project, including in particular, a multifamily housing development currently anticipated to consist of approximately 275 market-rate and/or 4909-0694-3817 2 Section L Rccitals. workforce apartment housing units and parking to be constructed by the Developer on the Developer Parcel ("Phase l"), as further described in the Agreement. 1.06. The Authority believes that Phase I ofthe Project is in the best interests ofthe City and will help alleviate a housing shortage in the City. Section 2. Aqreement. 2.01. The Board hereby approves the Agreement substantially in accordance with the t€rms set forth in the form presented to the Board. together with any related documents necessary in conneclion therewith, including the Assessment Agreement, and without limitation all documents, exhibits, certifications or consents referenced in or attached to the Agreement (collectively, the "Development Documents") and hereby authorizes the President and the Executive Director (the "Authorized Officers") to negotiate the final terms thereof and, in their discretion and at such time as they may deem appropriate, to execute the Dcvelopment Documents on behalf of the Authority, and to carry ou! on behalf of the Authority, the Authority's obligations thereunder when all conditions precedent thereto have been satisfied. 2.02. The approval hereby given to the Development 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 Authorized Officers prior to their execution; and said officers are hereby authorized to approve said changes on behalfofthe Authority. The execution ofany instrument by the Authorized C)fiicers sirall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 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 ofthe Board by any duly designated acting official, or by such other officer or officers ofthe Board as, in the opinion of the City Attomey, may act on their behalf. 2.03. Upon execution and delivery ofthe Development 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 behalfofthe Authority to implement the Development Documents. 2.04. The Board hereby authorizes staff of the City and the Authority and the City's and the Authority's advisors and legal counsel to proceed with the implementation of this resolution and the Agreement and the Assessment Agreement and to negotiate, draft, and prepare all further plans, resolutions, documents and contracts necessary for this purpose. Section 3. amcndments to th Futu re Amendments. The autho rity to approve, execute and deliver future e Development Documents entered into by the Authority and consents required under the Developm ent Documents is hereby delegated to the Authorized Officers,subject to the following conditions: (a)such amendments or consents do not materially adversely affect the interests of the Authoriry; (b) such amendments or consents do not contravene or violate any policy ofthe Authority, and (c) such amendments or consents are acceptable i n form and substance to the City Attomey or the counsel retained by the Authority to review such amend ments. The authorization hereby given shall be further construed as authorization for the execution and delivery of such certificales and related items as may be rcq uired to demonstrate compliance with the agreements being amended and the terms of this resolution. The execution of any instrument by the Authorized Of'ficers sha ll be conclusive evidence of the approval of such instruments in accordance with thc terms hereof Section 4 Effective Date. This resolution shall be effective upon approval' a,+909-0694-3877.2 Approved this 126 day of January, 2026, by the Board of Economic Development Authority. Presi ommtsslon of the Columbia lleights ( l4909-0691-3811 .2