HomeMy WebLinkAbout1988-08-01 HRA Regular Meeting MINUTES
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 1, 1988
Answering rollcall were Commissioners Kelly, Richards, Smith, Turner and Courtney.
MINUTES of the HRA Meeting of July 11, 1988 were approved as submitted by motion
of Commissioner Turner, seconded by Commissioner Kelly.
Ayes: Kelly, Richards, Smith, Turner, Courtney
Motion carried.
SUBORDINATION AGREEMENT OF HRA SECOND MORTGAGE ON EDINBOROUGH ELDERLY DEVELOPMENT
APPROVED. Executive Director Hughes explained that at present the HRA has a
second mortgage on Edina Park Plaza Elderly Housing Development that secures the
repayment of the interest reduction advances that the HRA periodically provides to
the development. The HRA is junior to a $14,628,000 mortgage held by First
National Bank of Minneapolis on the building. The developer has secured an
additional $42,800 in a line of credit from HUD and First National Bank to pay
some unfinished construction costs on the property. The developer is requesting
that the HRA subordinate its mortgage to the additional $42,800 mortgage being
placed on the property. Because the funds will be used to pay construction costs
and will result in satisfaction of all mechanic liens against the Edina Park Plaza
Elderly Development, Attorney Tom Erickson has recommended that the Subordination
Agreement be given by the HRA, subject to obtaining a new opinion of counsel for
the developer and agreement from the guarantors to the effect that the giving of
this new Subordination Agreement by the HRA will not in any way affect the
guaranty. . Following a brief discussion, Commissioner Richards moved adoption of
the following resolution, subject to obtaining said opinion of counsel and
agreement from the guarantors:
RESOLUTION
BE IT RESOLVED by the Housing and Redevelopment Authority of Edina, Minnesota,
that it hereby approves the Subordination Agreement for the additional $42,800
mortgage being placed on the Edina Park Plaza property;
BE IT FURTHER RESOLVED that the Chairman and Secretary or Assistant Secretary of
the HRA are directed to execute the Subordination Agreement.
Motion for adoption of the resolution was seconded by Commissioner Turner.
Rollcall:
Ayes: Kelly, Richards, Smith, Turner, Courtney
Resolution adopted.
There being no further business on the HRA Agenda, motion of Commissioner Turner
was seconded by Commissioner Richards for adjournment. Motion carr"ed
Executi e irector