HomeMy WebLinkAboutResolution - HRA 2012-02 - Sterling Ponds/Prairie Village Limited Partnership Amendment #3 - 06/05/2012 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY
H.R.A. RESOLUTION NO. 2012-02
RESOLUTION RELATING TO PRAIRIE VILLAGE REDEVELOPMENT PROJECT
AREA NO. 2; ADOPTING AMENDMENT NO. 3 TO FIRST AMENDED AND
RESTATED PROJECT MANAGEMENT AGREEMENT RELATING THERETO AND
AUTHORIZING EXECUTION OF A SUBORDINATION AGREEMENT AND
RELEASE OF MORTGAGE
BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of
Eden Prairie, Minnesota, as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of Eden Prairie,
Minnesota(the "Authority") has previously entered into the Project Management Agreement, by
and between the Authority and Prairie Village Limited Partnership (the "Developer"), dated
November 19, 1985 (the "Agreement").
1.02. The Agreement relates to a redevelopment project under Minnesota Statutes,
Sections 469.001 to 469.047, designated as Prairie Village Redevelopment Project Area No. 2
(the "Redevelopment Project"). The Redevelopment Project consists of housing intended for
occupancy, in part, by persons or families of low and moderate income, as defined in chapter
462A, Title 11 of the National Housing Act of 1934, the National Housing Act of 1959, the
United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as
amended, or similar present or future federal, state or municipal legislation and the regulations
promulgated thereunder, and that satisfies the income limitations of Minnesota Statutes, Section
469.1761.
1.03. The Agreement was amended and restated by the First Amended and Restated
Project Management Agreement, dated October 1, 1989.
1.04. The Agreement was further amended by the 1991 Amendment to First Amended
and Restated Project Management Agreement, dated May 31, 1991.
1.05, The Agreement was further amended by Amendment No. I to First Amended and
Restated Project Management Agreement, dated April 1, 1999.
1.06. The Agreement was further amended by Amendment No. 2 to First Amended and
Restated Project Management Agreement, approved July 18, 2006.
1.07, The Authority proposes to enter into Amendment No. 3 to First Amendment and
Restated Project Management Agreement, dated as of June 5, 2012 (the "Amendment").
1,08. In the Amendment,the Authority agrees to conditionally release its equity interest
in the Redevelopment Project and the Developer agrees to maintain the affordability of the
housing units in the Redevelopment Project for five additional years.
1.09 As part of the Developer's refinancing of the project, the HRA is requested to
subordinate the Project Management Agreement as amended to the Developer's new mortgage
financing and to execute a release of the mortgage held by the HRA.
Section 2. Adoption of Amendment. The Authority hereby adopts and approves the
Amendment in substantially the form presented to and on file with the Authority as of this date.
Section 3. Transmittal. The Authority does hereby transmit the Amendment to the Eden Prairie
City Council for approval.
Section 4. Execution. The Authority hereby directs the Chair and Executive Director of the
Authority to execute the Amendment, the Subordination Agreement and the release of Mortgage
and such other documents as are necessary for consummation of the transaction as are
recommended by counsel to the HRA and approved by the officers executing the same, upon
approval by the Council.
Adopted by the Housing and Redevelopment Authority in and for the City of Eden
Prairie, Minnesota, this 5th day of June, 2012.
N cy uk
ATTEST: SEAL
Rick Getschc4, Executive Director