HomeMy WebLinkAboutResolution - 2003-138 - 2nd Amendment to Project Management Agreement, First Amendment to Regulatory Agreement and Amended Subordination Agreement (Lincoln Parc) - 09/16/2003 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,NIINNESOTA
RESOLUTION NO. 2003-138
RESOLUTION AUTHORIZING AMENDMENT NO. 2 TO
PROJECT MANAGEMENT AGREEMENT,AGREEMENT AMENDING
REGULATORY AGREEMENT AND AMENDED SUBORDINATION AGREEMENT
WHEREAS, Hartford Associates, LLC, ("Hartford") and the City of Eden Prairie
("City") entered into that certain Project Management Agreement ("Original Agreement") dated
June 20, 2000, as assigned to Lincoln Parc Apartments, LLC ("Developer") pursuant to an
Assignment of Project Management Agreement dated October 25, 2000, relating to the
development of an 186 unit apartment building(the"Project"); and
WHEREAS, by that certain First Amendment to the Project Management Agreement
dated as of November 20, 2000 ("First Amendment") by and between Developer and City,
Developer and City amended the Original Agreement as set forth in the First Amendment. The
Original Agreement and the First Amendment are hereinafter referred to as the Agreement; and
WHEREAS, Lincoln Parc Apartments, LLC ("Lincoln") and the City of Eden Prairie
("City") entered into that certain Regulatory Agreement ("Regulatory Agreement") dated
November 1, 2000, relating to the $27,270,000 Multifamily Housing Revenue Bonds, Series
200A and the $539,000 Taxable Multifamily Housing Revenue Bonds, Series with respect to the
"Project"; and
WHEREAS, Lincoln Parc Apartments, LLC ("Lincoln") and the City of Eden Prairie
("City") entered into that certain CDBG Mortgage ("CDBG Mortgage") dated November 15,
2000, relating to the $27,270,000 Multifamily Housing Revenue Bonds, Series 2000A and the
$539,000 Taxable Multifamily Housing Revenue Bonds, Series B (collectively referred to herein
as the "Bonds")with respect to the"Project"; and
WHEREAS, the Developer and City deem it necessary and desirable to further amend
the Agreement as provided for in the attached Third Amendment to Project Management
Agreement, to amend the Regulatory Agreement as set forth in the Agreement Amending
Regulatory Agreement and to subordinate the CDBG Mortgage to such first mortgage financing
in an amount anticipated to be approximately $28,000,000.00 that provides the funds necessary
to pay in full the Bonds.
NOW THEREFORE,BE IT RESOLVED,by the Eden Prairie City Council that:
1. Amendment No. 2 to Original Agreement, the Agreement Amending Regulatory
Agreement and the subordination of the CDBG Mortgage as described above is
hereby approved. The Mayor and City Manager are hereby authorized to execute the
Third Amendment to Project Management Agreement, the Agreement Amending
Regulatory Agreement, a subordination agreement relating to the CDBG Mortgage
and such other documents and certificates as may be necessary, as determined by the
officers executing such documents referred to above,to give effect to the transactions
herein contemplated.
2. The approvals granted herein are contingent upon (i) the receipt by the City of the
written consent of the United States Department of Housing and Urban Development
and(ii)payment in full of the Bonds,which payment shall be deemed conclusively to
have occurred upon the tender by U.S. Bank National Association as trustee under the
Bonds to Lincoln of a satisfaction of that certain mortgage covering Lot 1, Block 1,
Lincoln Parc Apartments, Hennepin County, Minnesota dated November 7, 2000,
executed by Lincoln to Reilly Mortgage Group, Inc., and recorded in the office of the
Hennepin County Registrar of Titles as Document No. 3331476.
ADOPTED by the Eden Prairie City Council on September 16, 2003.
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ATTEST:
(Seal)
K hleen Porta, City Clerk