HomeMy WebLinkAbout00-06THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF LAKEVILLE
COUNTY OF DAKOTA
STATE OF MINNESOTA
Date November 20, 2000
Motion By
Sindt
Resolution No. 00-6
Seconded By
Mulvihill
RESOLUTION APPROVING AMENDMENT TO INTEREST
REDUCTION LOAN AGREEMENT AND APPROPRIATING
CERTAIN MONIES RECEIVED PURSUANT THERETO
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 "HRA") has heretofore approved and entered into an Interest Reduction Loan Agreement,
dated as of January 1, 1988 (the "Loan Agreement"), with Southfork Apartments Limited
Partnership (the "Developer"), relating to a rental housing development (the "Development")
located generally at 18001 Jubilee Way in the City of Lakeville; and
WHEREAS, pursuant to the Loan Agreement, the HRA made advances to the Developer
at the times and in the amounts set forth in Section 3.01 of the Loan Agreement (the "HRA
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 HRA Loan, with interest, as provided in Section 4.02 of the Loan Agreement; and
WHEREAS, the Developer now proposes to refinance the Bonds (as defined in the Loan
Agreement) originally issued to provide permanent financing for the Development and has
requested that the HRA amend certain terms of the Loan Agreement in connection with said
refinancing; and
WHEREAS, pursuant to said amendment, the Developer would agree to prepay a portion
of the principal balance of the HRA Loan at the time of said refinancing and the HRA would
agree to extend the date for repayment of the remaining balance of the HRA Loan, with interest,
until a date not later than December 1, 2031; and
WHEREAS, a draft of the proposed amendment (the "Amendment"), entitled "First
Amendment to Interest Reduction Loan Agreement," 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 Amendment is hereby approved. The Chair and Executive Director of the
Authority are authorized to execute the same on behalf of the HRA 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. Said
officers are also authorized to execute such other documents and certificates, upon advice
of counsel, as they shall deem necessary, appropriate or desirable to effectuate the
purposes of the Amendment and assist in said refinancing.
2. Funds received from the Developer pursuant to the Amendment, up to the amount
of $500,000, are appropriated to the City of Lakeville for use by the City in the
acquisition and renovation of the former All -Saints campus into a community arts
center, said property being located within the Central Business District Multifamily
Rental Housing/Commercial Project of the HRA.
APPROVED AND ADOPTED this 20th day of November 2000.
L E HOUSING AND REDEVELOPMENT AUTHORITY
By
Chair
bert A. Erickson, Executive Director