2018-04H HRA ResolutionMOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 18-04H
RESOLUTION APPROVING AMENDED AND RESTATED MASTER
SUBORDINATION AGREEMENT AND ESTOPPEL CERTIFICATE RELATED TO
THE INDIAN KNOLL MANOR PROJECT
WHEREAS, The Housing and Redevelopment Authority of the City of Mound, Minnesota
(the "Authority") previously sold certain property owned by the Authority, located at 2020
Commerce Boulevard, Mound, Minnesota including the housing facility known as Indian
Knoll Manor (the "Property") to IKM Limited Partnership, a Minnesota limited partnership,
an affiliate of Aeon, a Minnesota nonprofit corporation ("IKM"); and
WHERAS, on December 12, 2016, the Authority provided a loan to IKM in the amount of
$2,120,000 (the "HRA Loan") to help finance the acquisition of the Property and to certain
improvements thereto (the "Project"); and
WHEREAS, on December 12, 2016, the Authority also provided a loan of proceeds from
an environmental response fund grant from Hennepin County in the amount of $390,982
(the "ERF Grant" and together with the HRA Loan, the "HRA Financing") to Aeon to
provide a loan to IKM to finance the Project; and
WHEREAS, the Authority agreed to subordinate the HRA Financing to a loan provided to
IKM by the County (the "County Loan") and to construction financing provided by Wells
Fargo, National Association, a national banking association ('Vvells Fargo") to IKM, in
accordance with the Master Subordination Agreement and Estoppel Certificate, dated
December 13, 2016, and filed in the office of the County Recorder for Hennepin County on
December 14, 2016 as Document Number Al 0391059 (the "MSA"); and
WHEREAS, the Minnesota Housing Finance Agency, a public body corporate and
politic of the State of Minnesota ("MHFA"), will serve as the permanent lender for the
Project and has assumed the senior financing position initially held by Wells Fargo; and
WHEREAS, it has been requested that the Authority agree to resubordinate the HRA
Financing to the County Loan and to MHFA's senior financing pursuant to the Amended
and Restated Master Subordination Agreement and Estoppel Certificate (the "Amended
Subordination Agreement"), between the City, the Authority, IKM, Hennepin County, Aeon,
and the Minnesota Housing Finance Agency, which will amend and restate in its entirety
the MSA; and
WHEREAS, the Board of Commissioners has reviewed the Amended Subordination
Agreement and finds the execution of the same is in the best interests of the Authority.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority of the City of Mound as follows:
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1. That the Amended Subordination Agreement is hereby approved, subject to the
modifications that do not alter the substance of the transaction and that are
approved by the City Attorney.
2. That the Chair and the Executive Director are hereby authorized and directed to
execute all appropriate documents, including, but not limited to, the above stated
document, to effectuate the transaction contemplated by this Resolution.
Adopted by the Board of Commissioners this 13th day of March, 2018.
&4va-�JMJU4.0 Chair Mark Wegscheid
Attest: Catherine Pausche, Clerk
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