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HomeMy WebLinkAboutResolution No. 270-22 (EDA22-009) - Resolution - 5.B EDA - Execution of an updated Development Assistance Agreement with Manor Hills, Limited Partnership EDA RESOLUTION NO. CITY COUNCIL RESOLUTION NO. Rochester Economic Development Authority County of Olmsted, State of Minnesota AUTHORIZING THE EXECUTION OF AN UPDATED DEVELOPMENT ASSISTANCE AGREEMENT WITH MANOR HILLS, LIMITED PARTNERSHIP. BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Rochester Economic Development Authority (the “EDA”) and the Common Council (the “Council”) of the City of Rochester, Minnesota (the “City”), as follows: Section 1. Recitals. 1.01. On April 18, 2022, the Council and the Board established Economic Development District No. 79 (the “Development District”), adopted the Economic Development Plan for the Development District (the “Development Plan”), established Housing Tax Increment Financing District No. 79-1 (Manor Hills 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”), all as amended (collectively, the “Act”). 1.02. The TIF District was established to facilitate the construction of an approximately 72-unit workforce multifamily rental housing development consisting of a mix of 1-, 2-, and 3-bedroom apartments with both underground and surface parking, as well as in-unit laundry, controlled access, a community room, children’s play areas, a dog wash, and an exercise room, with all related improvements to be completed, owned and operated by the Manor Hills, Limited Partnership, a Minnesota limited partnership (or an affiliate thereof or partnership formed thereby, the “Developer”) within the TIF District (the “Development”). 1.03. On April 18, 2022, the Council and the Board approved a certain Development Assistance Agreement (the “Agreement”) between the EDA and the Developer regarding the Development and the terms and conditions of the EDA’s assistance with financing certain costs of the Development and the Council and Board waived the provisions in the EDA and City TIF policy limiting payment of tax increments to the lesser of 15 years or $12,000/unit because the Development provides eight units for persons with disabilities who are experiencing homelessness. 1.04. The April 18, 2022 Council and the Board approval has expired because the Developer has not yet executed the Agreement or commenced the Development within 180 days thereof and the Developer has requested that the Agreement be revised and reapproved to reflect the updated construction timeline. RC110-136-828231.v2 Section 2. Approval of Revised Development Assistance Agreement. 2.01. Subject to obtaining necessary variances, site plan approvals and zoning approvals, the Council and the Board hereby approve the Agreement in substantially the form presented to the Council and the Board, together with any related documents necessary in connection therewith, including but not limited to any documents, exhibits, certifications or consents referenced in or attached to the Agreement including without limitation the TIF Note as defined therein, (collectively, the “Development Documents”) and hereby authorize the President and Secretary to negotiate the final terms thereof and, in their discretion and at such time, if any, as they may deem appropriate, to execute the same on behalf of the EDA, and to carry out, on behalf of the EDA, the EDA’s obligations thereunder; provided however that this authorization by the Council and the Board shall expire if by August 1, 2023, the Developer has not completed the following actions: (i) executed the Agreement, (ii) obtained a footing and foundation permit and commenced construction of the foundation of the Development, and (iii) delivered to the EDA evidence satisfactory to the EDA that the Developer has adequate financial resources available for and committed to the completion of the Development. Prior to such expiration, the Developer may request an extension from the Board. 2.02. 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. This Resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 2.03. 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 Council or 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. 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, including without limitation the issuance of the Tax Increment Revenue Note thereunder, when all conditions precedent thereto have been satisfied. 2.04. The Council and the Board hereby determine that the execution and performance of the Development Documents will help realize the public purposes of the Act. 2 RC110-136-828231.v2 PASSED AND ADOPTED BY THE BOARD OF COMMISSIONERS OF THE ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, THIS 14TH DAY OF NOVEMBER, 2022. PRESIDENT OF SAID AUTHORITY SECRETARY OF SAID AUTHORITY PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2022. ___________________________________ PRESIDENT OF SAID COMMON COUNCIL ATTEST: __________________________ CITY CLERK APPROVED THIS _____ DAY OF ______________________, 2022. ___________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) 3 RC110-136-828231.v2