Agenda - Council - 04/22/2025 - Laserfiche WebLink

Home

CONSENT TO COLLATERAL ASSIGNMENT OF TAX INCREMENT NOTE AND REDEVELOPMENT AGREEMENT LUMENT REAL ESTATE CAPITAL, LLC, a Delaware limited liability company ("Lender") has agreed, subject to the satisfaction of certain terms and conditions, to make a loan in the original principal amount of $ (the "Mortgage Loan") to RESIDENCE AT THE COR APARTMENTS LLC, a Minnesota limited liability company ("Borrower"), which loan is or will be secured by a lien on that certain multifamily residential apartment project located at 7700 Sunwood Drive NW, Ramsey, MN 55303 (the "Mortgaged Property"). Lender is requiring this Consent to Collateral Assignment of Tax Increment Note and Redevelopment Agreement (the "Consent") as a condition to making the Mortgage Loan. The City of Ramsey, Minnesota (the "City"), as successor -in -interest to The Housing and Redevelopment Authority in and for the City of Ramsey (the "Authority"), hereby consents to the collateral assignment by Borrower of (1) that certain Development Agreement (the "Redevelopment Agreement") between the City and Borrower and (2) that certain Tax Increment Revenue Note in the original principal amount of $3,000,000.00 in favor of Borrower, as payee and holder, dated as of April 9, 2015 (the "TIF Note"), from the City, as Maker, pursuant to the terms of that certain Collateral Assignment of Tax Increment Note and Redevelopment Agreement from Borrower to Lender, dated as of , 2025 (the "Assignment"), for the purpose of (i) securing the Mortgage Loan, (ii) assigning the Redevelopment Agreement to Lender as collateral for the Mortgage Loan as provided in the Assignment, and (iii) redirecting the payments under the TIF Note directly to Lender in accordance with the Assignment after Lender's written demand has been delivered to the City in the manner set forth in the Redevelopment Agreement. For the avoidance of doubt, until the City receives Lender's written demand for payment under the TIF Note, the City shall continue to make payments under the TIF Note to Borrower. Until such time that Lender succeeds to Borrower's interest under the Redevelopment Agreement and TIF Note pursuant to the terms of the Assignment, the City agrees that Lender shall not be deemed to have assumed any of the obligations or liabilities under the Redevelopment Agreement or TIF Note, nor shall Lender be liable to the City by reason of any default by any party under the Redevelopment Agreement or TIF Note. At such time that Lender succeeds to Borrower's interest under the Redevelopment Agreement, Lender's liability shall be strictly limited to acts and omissions of Lender occurring during the period of ownership and operation of the Mortgaged Property and the improvements located thereon by Lender. (1) The City Representations and Warranties. The City hereby represents and warrants to Lender that: (a) it has the right to exercise and deliver this Consent under the terms of the Redevelopment Agreement and the TIF Note. The execution of this Consent and performance and observance of its terms have been duly authorized by necessary city action and do not contravene or violate any provision of the City's municipal code; Consent to Collateral Assignment of Tax Increment Note and Redevelopment Agreement Form 6418 Fannie Mae 05-24 Page 1 © 2024 Fannie Mae 172179231v1