HomeMy WebLinkAboutCity Council Resolution 2021-048
C ITY OF P LYMOUTH
R ESOLUTION N O. 2021-048
R ESOLUTION A UTHORIZING THE M AKING OF A L OAN IN THE A MOUNT OF $527,000, AND A G RANT IN
THE A MOUNT OF $250,000, FOR THE C RANBERRY R IDGE P ROJECT, AND A PPROVING AND
A UTHORIZING THE E XECUTION OF L OAN D OCUMENTS RELATED THERETO
WHEREAS, the City of Plymouth (the "City") has heretofore approved the establishment of Tax
Increment Financing Districts 7-6 and 7-7 (collectively, the "TIF Districts", and each individually a "TIF
District"), and has adopted for each TIF District a Tax Increment Financing Plan (collectively, the "TIF Plans",
and each individually a "TIF Plan") for the purpose of financing certain improvements within the TIF Districts;
and
WHEREAS, the TIF Districts and the TIF Plans allow for, among other things, the collection of "pooled"
increment (the "TIF District Funds") to be used for affordable housing projects; and
WHEREAS, TIF District 7-6 currently has $156,000 available, and TIF District 7-7 currently has
$621,000 available, to be used for such affordable housing projects (the "Available TIF District Funds"); and
WHEREAS, the City Council has heretofore approved the development of an approximately 45-unit
affordable housing project, to be known as Cranberry Ridge (the "Project") and to be developed by Cranberry
Ridge Housing Limited Partnership (the "Developer"); and
WHEREAS, the Developer has requested financial assistance for the Project from the City in the form
of a $527,000 loan and a $250,000 grant, pursuant to the following loan documents, which have been
submitted to the City Council for its review and approval:
Loan Agreement;
Note;
Mortgage;
Disbursement Agreement; and
Declaration of Covenants and Restrictions (collectively, the "Loan Documents"):
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA:
Section 1. Structure and Terms of Loan and Grant.
1.01. The City shall use (i) $527,000 of the Available TIF District Funds to make a zero percent
deferred loan to the Developer, that will be due and payable in thirty years from the date of execution (the
"Loan"), and (ii) $250,000 of the Available TIF District Funds to make a grant to the Developer, which shall
cover certain fees charged by the City for the development of the Project (the "Grant"), all pursuant to the
terms of the Loan Documents.
Section 2. Loan Documents.
2.01. The City Council hereby approves the Loan Documents in substantially the form submitted,
and the Mayor and City Manager are hereby authorized and directed to execute the Loan Documents on
behalf of the City.
2.02. The approval hereby given to the Loan 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 the City officials authorized by
this resolution to execute the Loan Documents. The execution of the Loan Documents by the appropriate
officer or officers of the City shall be conclusive evidence of the approval of the Loan Documents in
accordance with the terms hereof.
APPROVED by the City Council on this 9th day of February, 2021.
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth,
Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City
Council on February 9, 2021 with the original thereof on file in my office, and the same is a correct
transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day
of __________________, _____.
_____________________________________
City Clerk