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.