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HomeMy WebLinkAboutResolution No. 125-26 - Resolution - Amendments to Purchase and Development Assistance TIF 82-1 RESOLUTION EDA RESOLUTION NO. COUNCIL RESOLUTION NO. ______ AUTHORIZING THE EXECUTION OF AMENDMENTS TO PURCHASE AND DEVELOPMENT ASSISTANCE AGREEMENTS FOR REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT NO. 82-1 WHEREAS, the Rochester Economic Development Authority (the “EDA”) has established Economic Development District No. 82 (the “Development District”), adopted the Economic Development Plan for the Development District (the “Development Plan”), established DMC Redevelopment Tax Increment Financing District No. 82-1 (Civic Center North Apartments Project) within the Development District (the “TIF District”) and adopted a Tax Increment Financing Plan therefor (the “TIF Plan” and, together with the Development Plan, the “Plans”), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, Sections 469.090 through 469.1082, Sections 469.174 through 469.1794 (the “TIF Act”), and Minnesota Statutes, Sections 469.40 to 469.47 (the “DMC Act”), all as amended (collectively, the “Act”); all as reflected in that certain document entitled in part “Economic Development Plan for Economic Development District No. 82 of the Rochester Economic Development Authority and Tax Increment Financing Plan for DMC Redevelopment Tax Increment Financing District No. 82-1 (Civic Center North Apartments Project),” dated December 9, 2024, and presented for consideration by the Board of Commissioners (the “Board”) of the Rochester Economic Development Authority and the Common Council (the “Council”) of the City of Rochester, Minnesota (the “City”); WHEREAS, the EDA has heretofore approved a Purchase and Development Assistance Agreement, dated as of July 11, 2025 (as amended, the “Affordable PDAA”), between the EDA and Rochester Civic Lot Limited Partnership, a Minnesota limited partnership (the “Affordable Developer”), stating the Affordable Developer’s responsibilities related to the construction of an approximately 5-story, 76-unit affordable residential rental apartment building with approximately 80 structured parking stalls within an adjacent 350-stall parking structure and related amenities to be located at approximately 217 E Center Street in the City (the “Affordable Development”), and a Purchase and Development Assistance Agreement, dated as of July 11, 2025 (as amended, the “Market Rate PDAA”), between the EDA and Rochester Tower LLC, a Minnesota limited liability company (the “Market Rate Developer” and, together with the Affordable Developer, the “Developers”), stating the Market Rate Developer’s responsibilities related to the construction of an approximately 15-story, 265-unit residential rental apartment building with approximately 270 structured parking stalls within an adjacent 350-stall parking structure and related amenities to be located at approximately 217 E Center Street in the City (the “Market Rate Development” and, together with the Affordable Development, the “Developments”); and RC110-146-990478.v4 4910-5250-1944.2 WHEREAS, the Developers have been diligently proceeding towards commencement of construction of the Developments and obtaining necessary financing and equity commitments in connection with financing the cost of the Developments but have experienced unavoidable delays and have requested that the EDA amend the Affordable PDAA pursuant to a First Amendment to Affordable Purchase and Development Assistance Agreement (the “Amendment to Affordable PDAA”) and amend the Market Rate PDAA pursuant to a First Amendment to Market Rate Purchase and Development Assistance Agreement (the “Amendment to Market Rate PDAA” and, together with the Amendment to Affordable PDAA, the “Amendments”) to extend the deadline for closing on the acquisition of property from the EDA and the commencement of construction of the Developments, among other things. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Rochester, Olmsted County, Minnesota, and the Board of Commissioners of the Rochester Economic Development Authority as follows: Section 1. Approval of the Amendments. 1.01. The Board hereby approves the Amendments in substantially the forms presented to the Board, together with any related documents necessary in connection therewith or in connection with the Affordable PDAA or the Market Rate PDAA, including but not limited to any documents, exhibits, certifications or consents referenced in or attached to the Affordable PDAA or the Market Rate PDAA including without limitation a deed and a TIF Note as defined in each such agreement (collectively, the “Development Documents”) and hereby authorizes the President and Secretary, to execute the same on behalf of the EDA, and to carry out, on behalf of the EDA, the EDA’s rights and obligations thereunder. 1.02. The approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the officers authorized herein to execute said documents prior to their execution, and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. 1.03. Upon execution and delivery of the Development Documents, the officers and employees of the EDA are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the EDA to implement the Development Documents. 2 RC110-146-990478.v4 4910-5250-1944.2 1.04. The Board hereby determines that the execution and performance of the Development Documents will help realize the public purposes of the Act. PASSED AND ADOPTED BY THE BOARD OF COMMISSIONERS OF THE ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, THIS 6TH DAY OF JULY, 2026. PRESIDENT OF SAID AUTHORITY SECRETARY OF SAID AUTHORITY The motion for the adoption of the foregoing resolution was duly seconded by member ____________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS _____ DAY OF _____________, 2026 ___________________________________ PRESIDENT OF SAID COMMONCOUNCIL ATTEST: _________________________ CITY CLERK APPROVED THIS ____ DAY OF ___________, 2026. __________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) 3 RC110-146-990478.v4 4910-5250-1944.2