HomeMy WebLinkAboutResolution No. 2024-49 CDBG AssumptionADOPTED
ATTEST:
July, 2024
RESOLUTION NO. 2024-49
RESOLUTION APPROVING ASSIGNMENT AND ASSUMPTION OF PERSPECTIVE CDBG DEFERRED
LOAN AND TRANSFER OF OWNERSHIP OF PROPERTY TO TRELLIS CO.
WHEREAS, the City of Edina, through execution of a Joint Cooperation Agreement with Hennepin
County effective October I, 1999, cooperated in the Urban Hennepin County Community Development Block
Grant (CDBG) Program and executed a Subrecipient Agreement with Hennepin County allocating funds from
the CDBG Program, and
WHEREAS, the City of Edina and the City of St. Louis Park entered into a 30-year deferred loan
agreement December 27, 2001, lending a total of $100,474 of CDBG funds to Perspectives, Inc. as a no-
interest loan to finance a portion of the cost of acquisition of existing residential housing located at 2759 and
2765 Louisiana Court, and
WHEREAS, the deferred loan required Perspectives, Inc., for itself and for its successors and assigns, to
take all necessary actions to maintain the Property as rental housing affordable to very low-income persons and
families as defined by HUD for thirty (30) years from the date of the agreement, and
WHEREAS, Perspectives, Inc. has filed for Chapter 11 bankruptcy and is required to sell the properties
as part of its bankruptcy proceedings and Perspectives has accepted a suitable offer from Trellis Co. to
purchase the property and maintain all affordability requirements; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of Edina authorizes the assignment and
assumption of Perspectives CDBG deferred loan and the transfer of ownership of property to Trellis Co. or a
single asset entity whose sole member is Trellis Co. and
BE IT FURTHER RESOLVED that the city manager be authorized o negotiate the agreement with
Trellis Co. or affiliated entity and modify agreement terms as necessary to cilitate a change in property
ownership and to subordinate mortgages to newly incurred debt with no ch nge in the contract term or the
total combined loan principal amount of $100,474; that following review and approval by the city attorney's
office the city manager and mayor be authorized to sign the amendments and elated documents on behalf of
the city.
Sharon Al ison, City Clerk ames B. Hovland, Mayor
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
EdinaMN.gov • 952-927-8861 • Fax 952-826-0389
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA
CERTIFICATE OF CITY CLERK
I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached
and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of July 16, 2024,
and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of , 2024.
Sharon Allison, City Clerk
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
EdinaMN.gov • 952-927-8861 • Fax 952-826-0389