Resolution - #25-089 - 04/23/2025

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Councilmember Stewart introduced the following resolution and moved for its adoption: RESOLUTION #25-089 RESOLUTION APPROVING THE ASSIGNMENT AND ASSUMPTION OF TAX INCREMENT FINANCING (TIF) AGREEMENT A. WHEREAS, the City of Ramsey as successor-in-interest to the Housing and Redevelopment Authority in and for the City of Ramsey (the "City") entered into a Development Agreement, dated March 9, 2012 (the "Development Agreement") with the Residence at the COR Apartments LLC, a Minnesota limited liability company, as successor-in-interest to F & C Ramsey, LLC, an Indiana limited liability company, and F & C Ramsey Member, LLC, an Indiana limited liability company (the “Developer”) whereby the City agreed to provide financial assistance for the Developer’s multifamily residential apartment project located in the City (the “Project”); and B. WHEREAS, in connection with the Development Agreement, the City issued a Tax Increment Revenue Note in the original principal amount of $3,000,000 in favor of Developer, as payee and holder, dated as of April 9, 2015 (the “TIF Note”); and C. WHEREAS, the Developer is seeking additional financing (the “Loan”) for the Project from Lument Real Estate Capital, LLC, a Delaware limited liability company (the “Lender”) and in exchange the Lender is requiring that the Developer assign its interest in the Development Agreement and the TIF Note to the Lender pursuant to a Collateral Assignment of Tax Increment Note and Redevelopment Agreement by and between the City and the Lender (the “Assignment”), which requires the consent of the City pursuant to a Consent to Collateral Assignment of Tax Increment Note and Redevelopment Agreement (the “Consent”); and D. WHEREAS, the Loan will be secured by a Multifamily Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the “Mortgage”) on the Project in favor of the Lender; and E. WHEREAS, the Mortgage shall be subject to and subordinate to the Development Agreement pursuant to a Subordination Agreement by and among the City, the Developer, and the Lender (the “Subordination”); and F. WHEREAS, drafts of the Assignment, the Consent, and Subordination have been submitted to the City Council for approval. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA: 1) The City Council hereby approves the Assignment, the Consent, and the Subordination in substantially the forms submitted, and the Mayor and the City Administrator are hereby authorized and directed to execute the Consent and the Subordination on behalf of the City. In the absence of the Mayor or the City Administrator, any document authorized by this resolution to be executed may be executed by an acting or duly designated official.