#HRA 12-04-006 - Laserfiche WebLink

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4591075v1 THIS AGREEMENT, is dated as of April 24, 2012 and the parties to this Agreement are the City of Ramsey, a Minnesota municipal corporation, herein called the "City ", and The Housing and Redevelopment Authority in and for the City of Ramsey, Minnesota, a public body corporate and politic herein called the "Authority ", Recitals: PLEDGE AGREEMENT A. WHEREAS, the City and the Authority have entered into a Development Agreement with F &C Ramsey, LLC and F &C Ramsey Member, LLC (the "Borrower ") dated as of March 9, 2012 (the "Development Agreement ") in connection with the development of an approximately 230 unit, four story, market rate, rental apartment project (the "Project ") within Tax Increment District No. 14 (the "Tax Increment Financing District "); B. WHEREAS, pursuant to Article VIII of the Development Agreement the Authroity will make a loan to the Borrower ( "Loan No. 2 ") to finance eligible costs of the Project. The Borrower has agreed to repay Loan No. 2 and execute and deliver to the Authority Note No. 2 ( "Note No. 2 ") in accordance with the provisions of Article VIII of the Development Agreement. In addition David M. Flaherty will execute a Personal Guaranty (the "Personal Guaranty ") in favor of the Authority to provide security for the performance of the Borrower's obligations under Note No. 2. C. WHEREAS, on April 24, 2012, the City Council adopted a Resolution Providing for the Issuance and Sale of $7,420,000 General Obligation Tax Increment Bonds, Series 2012B (the "Bonds ") providing for their issuance, pledging tax increments for the security thereof and authorizing execution of a tax increment pledge agreement (the "Resolution "). The Bonds are issued for the purpose of financing certain eligible costs of the Project as more fully described in the Development Agreement and as set forth in the Tax Increment Financing Plan for the Tax Increment Financing District; and D. WHEREAS, the Resolution pledges the payments received by the Authority pursuant to Note No. 2 and the Personal Guaranty to the payment of the Bonds and interest thereon. NOW, THEREFORE, the parties hereto agree that all payments received by the Authority pursuant to Note No. 2 and the Personal Guaranty shall be remitted as received by the Authority to the City for payment of the Bonds and the interest thereon and the City shall apply such payments to the payment of the Bonds and the interest thereon.