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HomeMy WebLinkAboutCity Council Resolution 1998-382CITY OF PLYMOUTH Resolution 98-382 AUTHORIZING EXECUTION OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT AND A SUBORDINATION AGREEMENT RELATING TO THE HOYT PROPERTIES, INC. DEVELOPMENT, TAX INCREMENT DISTRICT 7- 4 WHEREAS, the City of Plymouth, Minnesota (the "City") and Hoyt Properties, Inc. ("Hoyt") have heretofore entered into a Development Agreement, dated August 1, 1995, relating to the development of certain property within Tax Increment Financing District No. 7-4 in the City; and WHEREAS, pursuant to the initial paragraph of Section 8.1 of the Development Agreement, Hoyt may assign its interests in the Development Agreement, with the consent of the City, to another entity, provided that Hoyt or Steve Hoyt has a substantial ownership interest in said entity and said entity assumes all obligations of Hoyt under the Development Agreement; and WHEREAS, Hoyt has requested the City's consent for the assignment of Hoyt's interests in the Development Agreement of Plymouth Partners II, a Minnesota general partnership, composed of Steve Hoyt and his wife as general partners and a proposed form of an Assignment and Assumption Agreement (the "Assumption Agreement") to be used for this purpose has been placed on file with the City Clerk; and WHEREAS, pursuant to Section 10.5 of the Development Agreement, the City has agreed to consider in good faith a request to subordinate its interest in the Development Agreement to a mortgagee who will provide mortgage financing for improvements on the Hoyt property and a proposed form of Subordination Agreement (the "Subordination") where by the City would subordinate its interest to Century Bank National Association has been placed on file with the City Clerk; and WHEREAS, both the foregoing requests are consistent with the provisions of the Development Agreement. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota that the Assumption Agreement and the Subordination are hereby approved and the Mayor and the City Manager are hereby authorized and directed to execute the Assumption Agreement and the Subordination on behalf of the City, substantially in the form of the drafts placed on file with the City Clerk. Adopted by the Plymouth City Council on June 24, 1998.