Agenda - Council - 09/26/2017 - Laserfiche WebLink

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LOAN AGREEMENT BETWEEN CITY OF RAMSEY AND RAMSEY STATION APARTMENTS LIMITED PARTNERSHIP FOR THE METROPOLITAN COUNCIL LOCAL HOUSING INCENTIVES ACCOUNT - METROPOLITAN LIVABLE COMMUNITIES ACT THIS LOAN AGREEMENT is entered into as of the day of , 2017 by and between the CITY OF RAMSEY, a Minnesota municipal corporation (herein called the "City"), and RAMSEY STATION APARTMENTS LIMITED PARTNERSHIP, a Minnesota limited partnership (herein called the "Borrower"). WHEREAS, Minnesota Statutes, Section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which must be consistent with and promote the purposes of the Metropolitan Livable Communities Act; and WHEREAS, the Borrower on behalf of the City has made application (the "Application") to and received funds in the amount of $100,000 from the Metropolitan Council ("Council") under its Local Housing Incentives Account Program (the "LHIA Grant"); and WHEREAS, the City desires to loan proceeds of the LHIA Grant in the amount of $100,000 (the "Loan") to Borrower to finance costs of acquisition and construction of a 54-unit affordable rental housing project at 7562 146th Avenue Northwest, Ramsey, Minnesota. NOW, THEREFORE, it is agreed between the parties hereto that: 1. AWARD. The City agrees to make the Loan to the Borrower for the "Project" described in that certain Grant Agreement No. SG-21549 between the City and the Council (the "LHIA Grant Agreement"), a copy of which is attached hereto as Exhibit A. 2. AUTHORIZED USES. Loan funds must be used in accordance with the eligible uses and costs as described in the LHIA Grant Agreement (the "Project Costs"). The Borrower may not use the Loan for grants or loans to any subrecipients. Notwithstanding anything herein to the contrary, the Borrower understands and agrees that any reduction or termination of the LHIA Grant may result in a like reduction or termination of the Loan, and that any material change in the scope of the Project or budget in the LHIA Grant Agreement must be approved in writing by the City and the Council in accordance with the LHIA Grant Agreement, which approval by the City will not be unreasonably withheld. 3. MATCH REOUIREMENT. The Borrower shall satisfy the 1:1 match requirement set forth in Section 2.03 of the LHIA Grant Agreement. 4. PERFORMANCE MONITORING. The Borrower must comply with all requirements in the LHIA Grant Agreement. The Borrower must submit periodic reports to the City on the status of the Project, the expenditure of the Loan funds, and the sources and expenditure of the match funds. Submission of properly completed payment draw request forms required under Section 7 herein will constitute periodic reports. The Borrower must also complete and submit to the City: (i) annual reports per Section 2.06(c) of the LHIA Grant Agreement and (ii) a closeout report form per Section 3.03 of the LHIA Grant Agreement. 1 US.113578590.01