HomeMy WebLinkAbout17-014 SAC Deferral Program Subordination
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-014
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER
TO EXECUTE TWO SUBORDINATION AGREEMENTS
RELATED TO A SAC DEFERRED PAYMENT AGREEMENT
Motion By: Thompson Second By: Braid
WHEREAS, The City of Prior Lake entered into a Deferred Payment Agreement with Water Street
Restaurants Group, LLC (“Operator”) and Lakers Holdings, LLC (“Owner”) on August
8, 2015; and
WHEREAS, The Owner is subject to charges for sewer and water from the Metropolitan Council
Environmental Services Division and the City of Prior Lake based on Sewer
Availability Charge (“SAC”) units related to the development of a restaurant on the
property located at 3950 Green Heights Trail SW, Prior Lake, Minnesota; and
WHEREAS, City Code Section 704.500 allows qualified property owners to defer the payment of
water connection charges and water tower charges and City Code Section 705.600
allows qualified property owners to defer the payment of sewer connection charges;
and
WHEREAS, Said Deferred Payment Agreement deferred 80% of SAC payments with interest at
an annual rate of 2.25% due in equal monthly payments over a term of 60 months;
and
WHEREAS, Lakers Holdings, LLC has requested the City of Prior Lake subordinate the city’s
Deferred Payment Agreement lien position to facilitate a Lakers Holdings, LLC
refinancing application; and
WHEREAS, The City of Prior Lake Economic Development Authority reviewed the request to
subordinate during their January 25, 2017 meeting and approved a motion
recommending the City Council authorize the Mayor and City Manager to execute
the two Subordination Agreements as requested by Lakers Holdings, LLC; and
WHEREAS, The Prior Lake City Council considered the request and approved a motion
authorizing the Mayor and City Manager to execute two subordination agreements
as requested by Lakers Holdings, LLC during their February 13, 2017 meeting.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to execute the two Subordination
Agreements on behalf of the City.
2
Passed and adopted by the Prior Lake City Council this 13th day of February, 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager