HomeMy WebLinkAbout14-03THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF LAKEVILLE
RESOLUTION NO. 14-03
RESOLUTION APPROVING RELEASE OF
INTEREST REDUCTION LOAN AGREEMENT
WHEREAS, as authorized by Minnesota Statutes, Section 469.012, subdivisions 7
through 9, the Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota
(the "Authority") has heretofore approved and entered into an Interest Reduction Loan
Agreement, dated as of January 1, 1988, as amended by a First Amendment to Interest Reduction
Loan Agreement, dated December 20, 2000 (as so amended, the "Loan Agreement"), with
Southfork Apartments Limited Partnership (the "Developer") relating to a rental housing
development located generally at 18001 Jubilee Way in the City of Lakeville; and
WHEREAS, pursuant to the Loan Agreement, the Authority made advances to the
Developer (the "Authority Loan"), in consideration for which the Developer agreed to set aside
certain units in the Development for low and moderate income housing for a specified period of
time and agreed to repay the Authority Loan, with interest; and
WHEREAS, the Developer desires to prepay the Authority Loan, and has agreed to pay
the Authority a mutually agreed upon payment of $2,230,000 in consideration thereof, which
shall constitute payment in full of the Authority Loan (the "Loan Repayment"); and
WHEREAS, a draft of the proposed Release of Loan Agreement (the "Release") has
been submitted to this Board.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Lakeville, Minnesota, as follows:
1. The Release is hereby approved. Upon receipt by the Authority of the Loan Repayment,
the Chair and Executive Director of the Authority are authorized to execute the Release
on behalf of the Authority substantially in the form of the draft submitted at this meeting,
but with such modifications therein as said officers shall in the exercise of their own
independent judgment and discretion, and upon advice of counsel, determine to be
necessary, appropriate or desirable.
2. The Chair and Executive Director of the Authority are authorized to execute such other
documents, certificates, and releases, upon advice of counsel, as they shall deem
necessary, appropriate or desirable to effectuate the purposes of the Release and fully
release the Loan Agreement and the security for the Loan Agreement.
APPROVED this 7t' day of April, 2014.
THE HOUSING AND
REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF LAKEVILLE
By:
Douglas P. derson, Chair
ATTEST:
teve Mielke, Executive Director