HomeMy WebLinkAboutResolution No. 040-24 - Resolution (EDA) - Second Amendment to Development Assistance Agreement with Bryk Apartments Rochester, LLC
EDA RESOLUTION NO.
CITY COUNCIL RESOLUTION NO.
Rochester Economic Development Authority
County of Olmsted, State of Minnesota
Authorizing the Execution of Second Amendment to Development Assistance
Agreement and a Satisfaction of Mortgage.
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Rochester
Economic Development Authority (the “EDA”), as follows:
Section 1. Recitals.
1.01. The EDA has heretofore approved a Development Assistance Agreement,
dated as of August 31, 2021, as amended by the First Amendment to Development
Assistance Agreement, dated as of March 20, 2023 (collectively, the “Original
Agreement”), between the EDA and Bryk Apartments Rochester LLC, a Minnesota limited
liability company (the “Developer”), stating the Developer’s responsibilities related to the
construction of an approximately 6-story, 180-unit affordable workforce residential
apartment building to be known as “Bryk on Broadway Apartments,” with approximately
100 underground parking stalls and 40 surface level parking stalls, an exercise facility,
board room, indoor and outdoor community spaces, and approximately 7,261 square feet
of commercial/retail space (the “Project”);
1.02. In connection with the Project and pursuant to the terms of the Original
Agreement, the EDA provided a loan to the Developer in the amount of $2,200,000 (the
“Principal Amount”) from certain general state infrastructure aid received by the City
pursuant to the Minnesota Statutes, Sections 469.40 through 469.47, as amended, and
transferred to the EDA (“GSIA”), to assist in financing certain Public Infrastructure Costs
of the Improvements (as both of those terms are defined in the Original Agreement), as
evidenced by a certain Promissory Note, dated as of August 31, 2021 (the “Developer
Note”), and secured by a Combination Mortgage, Security Agreement and Fixture
Financing Statement, dated as of August 31, 2021 (the “Developer Mortgage”);
1.03. The Developer and the EDA now wish to amend the Original Agreement
pursuant to a Second Amendment to Development Assistance Agreement (the
“Amendment to Agreement”) to provide the Principal Amount as a reimbursement to the
Developer, rather than as a loan, and in so doing, wish to cancel the Developer Note and
deliver to the Developer a Satisfaction of Mortgage related to the Developer Mortgage
(the “Satisfaction of Mortgage”).
Section 2. Approval of the Amendments.
2.01. The Board hereby approves the Amendment to Agreement in substantially
the form presented to the Board, together with any related documents necessary in
connection therewith, including, but not limited to, the Satisfaction of Mortgage
(collectively, the “Development Documents”), and hereby authorizes the President and
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Secretary, 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
EDA shall expire if the Development Documents are not executed by the Developer within
90 days after the date hereof.
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. 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.
2.03. 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.
2.04. 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 ____ DAY OF
FEBRUARY, 2024.
PRESIDENT OF SAID AUTHORITY
SECRETARY OF SAID AUTHORITY
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CITY COUNCIL RESOLUTION NO.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2024.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2024.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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