10/08/1992 - Housing and Redevelopment Authority (2)
HOUSING & REDEVELOPMENT AUTHORITY
IN AND FOR THE
CITY OF EAGAN, MINNESOTA
October 8, 1992
A meeting of the Eagan Housing and Redevelopment Authority was convened in the Eagan City Council
Chambers at approximately 7:20 p.m. on October 8, 1992. Those present were Chairman Egan, Authority
members Awada, McCrea and Pawlenty, and Executive Director Hedges.
Chairman Egan introduced the business before the HRA as a resolution providing for the subordination
of a mortgage securing interest rate reduction loan for the Cinnamon Ridge project. Executive Director Hedges
explained that because the original action involving the Cinnamon Ridge housing project was as an HRA, any
subsequent changes to the bond issue must also be made as an HRA. Jim Dinnerstein from Dain Bosworth,
and representing the applicant, was present to answer any questions. A copy of the resolution is attached.
McCrea moved, Awada seconded, a motion to approve a resolution relating to the refinancing by the
City of Eagan of the Cinnamon Ridge Housing Project, including the subordination of the HRA's mortgage
securing its interest rate reduction loan to other financing documents. Aye: 3 Nay: 1 (Pawlenty)
KF
EAGAN HOUSING & REDEVELOPMENT AUTHORITY
Thomas L. Hedges
Executive Director
C..tct
THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF EAGAN, MINNESOTA
RESOLUTION NO:
WHEREAS:
A. The City Council of the City of Eagan pursuant to a
notice published in advance as required by state and federal law,
conducted a public hearing held on October 8, 1992 on the proposal
to refinance its $11,350,000 Multifamily Housing Redevelopment
Bonds (Cinnamon Ridge Project) Series 1985 (the "Prior Bonds") and
by a resolution adopted on October 8, 1992 approved the issuance
by the City of its: (a) Multifamily Housing Revenue Refunding
Bonds (Cinnamon Ridge Project), Series 1992 in an aggregate
principal amount not to exceed $8,000,000 (the "Bonds"), and (b)
Multifamily Housing Revenue Second Mortgage Refunding Note of 1992
(Cinnamon Ridge Project) in an aggregate principal amount not to
exceed $3,245,000 (the "Note"), and
B. In connection with the issuance of the Series 1985 Bonds,
The Housing and Redevelopment Authority of the City of Eagan,
Minnesota (the "Authority") passed a Resolution dated June 18,
1985, establishing a tax increment financing district pursuant to
Minnesota Statutes, Sections 273.71 to 273.78, and approved a Tax
Increment Financing Plan for the Cinnamon Ridge Housing Project and
undertook an interest reduction program pursuant to Minnesota
Statutes, Section 462.445, Subdivisions 10 through 13 to reduce the
effective rate of interest on a Mortgage Loan made to the
Developer; and
C. The Developer entered into an Interest Rate Reduction
Loan Agreement for the purpose of providing for the terms and
conditions of the interest rate reduction tax increment assistance
to be provided to the Cinnamon Ridge Housing Project (the
"Development") in connection with the financing of the construction
of the Development. Two mortgages were executed by Cinnamon Ridge
Limited Partnership (the "Developer") in connection with the
financing of the Development. The first mortgage (the "First
Mortgage") was entered into by the Developer in favor of the
Trustee for the Prior Bonds and Mellon Bank, N.A. (the issuer of
the letter of credit which secured the Prior Bonds), jointly, and
the second mortgage (the "Second Mortgage") was entered into by the
Developer in favor of the Authority securing the payment by the
Developer of its obligations pursuant to the Interest Rate
Reduction Loan Agreement; and
D. The Developer now proposes to refinance the Development
through the issuance of the Bonds and the Note, as well as through
certain additional debt incurred by the Developer to Mellon Bank,
N.A. and in connection therewith has requested the Authority to
subordinate its interests under the Second Mortgage to the liens
and security interests securing the Bonds, the Note and Mellon
Bank; and
E. The Second Mortgage, and the obligation of the Developer
to pay the First Note and the Second Note (as defined in the
Interest Rate Reduction Loan Agreement) shall be subordinate to:
i) The Mortgage, Fixture Financing Statement and
Security Agreement entered into by the Developer in
favor of First Trust National Association, as
trustee for the Bonds, and Mellon Bank, N.A. (as
issuer of the letter of credit securing the Bonds),
jointly, relating to the Bonds and secured by the
Bonds;
ii) The Mortgage and Security Agreement entered into by
the Developer in favor of Mellon Bank, N.A. to
secure the Note; and
iii) The Mortgage and Security Agreement entered into by
the Developer in favor of Mellon Bank, N.A. to
secure a promissory note to be dated on or about
October 29, 1992 and to be made by the Developer to
Mellon Bank, N.A. in the approximate principal
amount of $1,000,000 (the "Taxable Note").
NOW THEREFORE, BE IT RESOLVED by The Housing and Redevelopment
Authority of the City of Eagan, Minnesota:
1. The Authority hereby agrees to subordinate the liens and
security interests in its favor under the Second Mortgage to the
liens and security interests in favor of First Trust National
Association, as trustee for the Bonds, and Mellon Bank, N.A., as
the holder of the Note and the Taxable Note and as issuer of the
letter of credit securing the Bonds. The subordination approved
hereby shall extend to all liens, encumbrances and security
interests in favor of the Authority against or related to the
Development, whether encumbrances on real property and
improvements, or security interests in equipment, fixtures, leases
and rents (or proceeds thereof) or intangibles. The subordination
approved hereby shall extend only to the liens, encumbrances and
security interests securing the debt evidenced by the Bonds, the
Note and the Taxable Note, and to no other debt of the Developer
whatsoever.
2. The Executive Director of the Authority is hereby
authorized and directed to enter into, execute and deliver on
behalf of the Authority such agreements or other instruments as may
be necessary or desirable for the purpose of effectuating the
intent of the resolution, upon approval of the form of such
agreements or instruments by legal counsel to the Authority. The
Chairman, the Executive Director, or other authorized officer of
the Authority are hereby further authorized and directed to provide
to the Developer, First Trust National Association, Mellon Bank,
2
N.A. and the title insurance company providing insurance with
respect to the mortgages in favor of them a certified copy of this
resolution and such other evidence as may be reasonably requested
of the action taken hereby and the authority of the officers and
Executive Director of the Authority to carry out this resolution.
Adopted by the Board of Commissioners of The Housing and
Redevelopment Authority of the City of Eagan, Minnesota on
October 8, 1992.
c:\docs\rhm\eagan\hra.res 3
THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF EAGAN, MINNESOTA
RESOLUTION NO: ) -
WHEREAS:
A. The City Council of the City of Eagan pursuant to a
notice published in advance as required by state and federal law,
conducted a public hearing held on October 8, 1992 on the proposal
to refinance its $11,350,000 Multifamily Housing Redevelopment
Bonds (Cinnamon Ridge Project) Series 1985 (the "Prior Bonds") and
by a resolution adopted on October 8, 1992 approved the issuance
by the City of its: (a) Multifamily Housing Revenue Refunding
Bonds (Cinnamon Ridge Project), Series 1992 in an aggregate
principal amount not to exceed $8,000,000 (the "Bonds"), and (b)
Multifamily Housing Revenue Second Mortgage Refunding Note of 1992
(Cinnamon Ridge Project) in an aggregate principal amount not to
exceed $3,245,000 (the "Note"), and
B. In connection with the issuance of the Series 1985 Bonds,
The Housing and Redevelopment Authority of the City of Eagan,
Minnesota (the "Authority") passed a Resolution dated June 18,
1985, establishing a tax increment financing district pursuant to
Minnesota Statutes, Sections 273.71 to 273.78, and approved a Tax
Increment Financing Plan for the Cinnamon Ridge Housing Project and
undertook an interest reduction program pursuant to Minnesota
Statutes, Section 462.445, Subdivisions 10 through 13 to reduce the
effective rate of interest on a Mortgage Loan made to the
Developer; and
C. The Developer entered into an Interest Rate Reduction
Loan Agreement for the purpose of providing for the terms and
conditions of the interest rate reduction tax increment assistance
to be provided to the Cinnamon Ridge Housing Project (the
"Development") in connection with the financing of the construction
of the Development. Two mortgages were executed by Cinnamon Ridge
Limited Partnership (the "Developer") in connection with the
financing of the Development. The first mortgage (the "First
Mortgage") was entered into by the Developer in favor of the
Trustee for the Prior Bonds and Mellon Bank, N.A. (the issuer of
the letter of credit which secured the Prior Bonds), jointly, and
the second mortgage (the "Second Mortgage") was entered into by the
Developer in favor of the Authority securing the payment by the
Developer of its obligations pursuant to the Interest Rate
Reduction Loan Agreement; and
D. The Developer now proposes to refinance the Development
through the issuance of the Bonds and the Note, as well as through
certain additional debt incurred by the Developer to Mellon Bank,
N.A. and in connection therewith has requested the Authority to
subordinate its interests under the Second Mortgage to the liens
and security interests securing the Bonds, the Note and Mellon
Bank; and
C,
E. The Second Mortgage, and the obligation of the Developer
to pay the First Note and the Second Note (as defined in the
Interest Rate Reduction Loan Agreement) shall be subordinate to:
i) The Mortgage, Fixture Financing Statement and
Security Agreement entered into by the Developer in
favor of First Trust National Association, as
trustee for the Bonds, and Mellon Bank, N.A. (as
issuer of the letter of credit securing the Bonds),
jointly, relating to the Bonds and secured by the
Bonds;
ii) The Mortgage and Security Agreement entered into by
the Developer in favor of Mellon Bank, N.A. to
secure the Note; and
iii) The Mortgage and Security Agreement entered into by
the Developer in favor of Mellon Bank, N.A. to
secure a promissory note to be dated on or about
October 29, 1992 and to be made by the Developer to
Mellon Bank, N.A. in the approximate principal
amount of $1,000,000 (the "Taxable Note").
NOW THEREFORE, BE IT RESOLVED by The Housing and Redevelopment
Authority of the City of Eagan, Minnesota:
1. The Authority hereby agrees to subordinate the liens and
security interests in its favor under the Second Mortgage to the
liens and security interests in favor of First Trust National
Association, as trustee for the Bonds, and Mellon Bank, N.A., as
the holder of the Note and the Taxable Note and as issuer of the
letter of credit securing the Bonds. The subordination approved
hereby shall extend to all liens, encumbrances and security
interests in favor of the Authority against or related to the
Development, whether encumbrances on real property and
improvements, or security interests in equipment, fixtures, leases
and rents (or proceeds thereof) or intangibles. The subordination
approved hereby shall extend only to the liens, encumbrances and
security interests securing the debt evidenced by the Bonds, the
Note and the Taxable Note, and to no other debt of the Developer
whatsoever.
2. The Executive Director of the Authority is hereby
authorized and directed to enter into, execute and deliver on
behalf of the Authority such agreements or other instruments as may
be necessary or desirable for the purpose of effectuating the
intent of the resolution, upon approval of the form of such
agreements or instruments by legal counsel to the Authority. The
Chairman, the Executive Director, or other authorized officer of
the Authority are hereby further authorized and directed to provide
to the Developer, First Trust National Association, Mellon Bank,
2
N.A. and the title insurance company providing insurance with
respect to the mortgages in favor of them a certified copy of this
resolution and such other evidence as may be reasonably requested
of the action taken hereby and the authority of the officers and
Executive Director of the Authority to carry out this resolution.
Adopted by the Board of Commissioners of The Housing and
Redevelopment Authority of the City of Eagan, Minnesota on
October 8, 1992.
C E R T I F I C A T I O N
I, Thomas A. Egan, Chairman of the City of Eagan Housing and
Redevelopment Authority, Dakota County, Minnesota, do hereby certify
that the foregoing resolution was duly passed and adopted by the HRA
of the City of Eagan, in a regular meeting thereof assembled this 8th
day of October, 1992.
omas A.
E gan, Chairm
c:\docs\rhm\eagan\hra.res 3