HomeMy WebLinkAboutResolution - 2011-25 - Authorizing Amendment to No. 3 to Project Management Agreement and First Amendment to CDBG Loan Documents - 02/15/2011 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2011-25
RESOLUTION AUTHORIZING AMENDMENT NO. 3 TO PROJECT
MANAGEMENT AGREEMENT AND SUBORDINATION AGREEMENT
AND FIRST AMENDMENT TO COMMUNITY DEVELOPMENT
BLOCK GRANT LOAN DOCUMENTS
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; and
WHEREAS, by that certain Second Amendment to the Project Management
Agreement dated as of September 30, 2003 ("Second Amendment") by and between
Developer and City, Developer and City amended the Original Agreement and the First
Amendment as set forth in the Second Amendment. The Original Agreement, First
Amendment, and Second Amendment are hereinafter referred to as the Agreement; and
WHEREAS, Developer and the 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, City made a loan to Developer of Community Development Block
Grant funds in the original principal amount of$200,000 ("CDBG Loan"). Developer
and the City entered in that certain CDBG Mortgage ("CDBG Mortgage") dated
November 15, 2000 and that certain CDBG Promissory Note("CDBG Promissory Note")
dated November 15, 2000 (collectively referred to as the "CDBG Loan Documents")
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 Amendment No. 3 to Project
Management Agreement and Subordination Agreement; and
WHEREAS, the Developer and City deem it necessary and desirable to further
amend the CDBG Loan Documents as provided for in the attached First Amendment to
Community Development Block Grant Loan Documents and to subordinate the CDBG
Mortgage to such first mortgage financing in an amount anticipated to be approximately
$26,711,500.00.
NOW THEREFORE, BE IT RESOLVED, by the Eden Prairie City Council
that:
1. Amendment No. 3 to Project Management Agreement and Subordination
Agreement as described above is hereby approved. The Mayor and City Manager
are hereby authorized to execute Amendment No. 3 to Project Management
Agreement and Subordination Agreement, a subordination agreement relating to
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. First Amendment to Community Development Block Grant Loan Documents as
described above is hereby approved. The Mayor and City Manager are hereby
authorized to execute First Amendment to Community Development Block Grant
Loan Documents, a subordination agreement relating to 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.
ADOPTED by the Eden Prairie City Council on February 15, 2011.
�N �
anc T s or
Yr Ma Y
ATTEST:
KaAleen Porta, City Clerk