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individual capacity and in its capacity as a successor -in -interest to the HRA, to amend the <br />Development Agreement to remove therefrom provisions which allow the City to cancel and <br />terminate the "TIF Note," as defined in the Development Agreement, as a remedy for certain <br />defaults by F&C Apartments under the terms of the Development Agreement. <br />WHEREAS, upon F&C Borrower's repayment of Note No. 2 in full, the City is <br />obligated, under the terms of the Development Agreement, to issue the "TIF Note," as defined in <br />the Development Agreement, to F&C Ramsey. <br />WHEREAS, upon F&C Borrower's repayment of Note No. 1 and Note No. 2, in full, the <br />City, both in its individual capacity and as successor -in -interest to the HRA, will be required to <br />return the original Note No. 1 and the original Note No. 2 to F&C Borrower and to release, of <br />record, the security interest which the HRA holds in the membership interest in F&C Borrower. <br />WHEREAS, in Section 11.4 of the Development Agreement, F&C Apartments, as the <br />successor to F&C Ramsey, covenants and agrees to lease not less than 50% of the apartment <br />units in the Project to tenants whose family income is equal to or less than 130% of the median <br />family income. Section 11.4 of the Development Agreement provides that after Note No. 2 has <br />been repaid, in full, the City's and the HRA's sole remedy for a breach of Section 11.4 would be <br />to terminate the "TIF Note." The First Amendment to Development Agreement deletes Section <br />11.4 from the Development Agreement. <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA: <br />1) That the City Council, in its capacity as the governing body of the City and in its <br />capacity as the successor -in -interest to the Board of the HRA, hereby authorizes <br />the Mayor and City Administrator to execute and deliver the First Amendment to <br />Development Agreement, in the form attached hereto as Exhibit A, to F&C <br />Ramsey, F&C Borrower and F&C Apartments contemporaneously with F&C <br />Borrower's repayment in full of Note No. 1 and Note No. 2, and authorizes the <br />recording of the Amendment to Development Agreement in the Anoka County <br />Land records. <br />2) That the City Council authorizes the Mayor and City Administrator to execute and <br />deliver the TIF Note, as defined in the Development Agreement, in the original <br />principal amount of $3,000,000 to F&C Ramsey, contemporaneously with F&C <br />Borrower's payment, in full, of Loan No. 1 and Loan No. 2. <br />3) That the City Council, in its capacity as the governing body of the City and in its <br />capacity as the successor -in -interest to the Board of the HRA, hereby authorizes <br />and directs the Mayor and City Administrator to return the originals of Note No. 1 <br />and Note No. 2 to F&C Borrower and to execute and deliver to F&C Borrower <br />such documents and instruments as may be necessary to evidence the termination <br />of the security interest granted to the HRA in the membership interests of F&C <br />Borrower and the release of the other Loan Documents, all upon F&C Borrower's <br />repayment, in full, of Note No. 1 and Note No. 2. <br />2 <br />6911974v1 <br />