Laserfiche WebLink
BRIGGS AND MORGAN <br />the context of the pending sale transaction between F&C Apartments, LLC and Residence at the <br />COR Apartments LLC: <br />1. Resolution Number 1. As an initial matter, the Resolution rescinds Resolution <br />#15-02-044, which the City Council approved on February 10, 2012. Although several of the <br />actions that the City Council is taking pursuant to the current Resolution are substantively the <br />same as the actions that the Council authorized pursuant to Resolution #15-02-044. Resolution <br />#15-02-044 and the First Amendment to Development Agreement it approved were drafted in <br />the context of a refinancing. The City Council is being asked to rescind Resolution #15-02-044 <br />simply to provide a "clean slate" for the proposed Resolution. <br />2. Resolution Number 2. The City Council is ratifying an Assignment and <br />Assumption Agreement that the City and the HRA executed on February 12, 2015 and a <br />Memorandum of Assignment and Assumption Agreement the City and the HRA executed to <br />provide a recordable instrument evidencing the Assignment and Assumption Agreement. <br />Although the City's and the HRA's prior Resolutions authorizing the transfer of the HRA's <br />assets to the City and the dissolution of the HRA are, in my opinion, legally sufficient to <br />authorize the execution of the Assignment and Assumption Agreement and the Memorandum of <br />Assignment and Assumption Agreement, the Anoka County Registrar of Titles will not record <br />the Memorandum of Assignment and Assumption Agreement without a City Council Resolution <br />that expressly authorizes the City's execution of the Memorandum of Assignment and <br />Assumption Agreement. I have added Resolution Number 2 to this Resolution simply to provide <br />a very direct and concise statement of authority that we can present to the Anoka County <br />Registrar of Titles to avoid any delays in the recording of the Memorandum of Assignment and <br />Assumption Agreement. <br />3. Resolution Number 3. Resolution No. 3 authorizes the Mayor and the City <br />Administrator to execute nine separate documents relating to (a) F&C Apartments, LLC's sale of <br />Residence at the COR Apartments and assignment of the right to receive the TIF Note to <br />Residence at the COR Apartments LLC and (b) Residence at the COR Apartments LLC's <br />financing with PNC Bank. Below is an explanation of the purpose of each of the nine <br />documents the City Council is authorizing the Mayor and City Administrator to execute: <br />(a) First Amendment to Development Agreement. The First Amendment to <br />Development Agreement is substantively identical to the First Amendment to Development <br />Agreement that the City Council authorized the Mayor and City Administrator to execute on <br />February 10, 2015 pursuant to Resolution #15-02-044. The only changes to the First <br />Amendment are modifications to reflect the fact that the First Amendment is now being executed <br />in the context of a sale, rather than in the context of a refinancing. The purpose of the First <br />Amendment remains to modify the Development Agreement to remove provisions that would <br />allow the City to terminate the TIF Note based upon a default under the Development <br />Agreement. Since the Housing Bonds that were used to finance Note No. 2 will be repaid as a <br />result of the repayment of Note No. 2, the Amendment also removes the rental restriction <br />included in the Development Agreement. After the First Amendment to the Development <br />2 <br />6983737v1 <br />