HomeMy WebLinkAbout25-157 Approving the Collateral Assignment of the Development Agreement and Tax Increment Financing Note for TIF District 1-6 (Cora Apartments)
4646 Dakota Street SE Prior Lake, MN 55372
RESOLUTION 25-157
A RESOLUTION APPROVING THE COLLATERAL ASSIGNMENT OF THE DEVELOPMENT AGREEMENT AND TAX INCREMENT FINANCING NOTE FOR TIF DISTRICT 1-6 (CORA APARTMENTS)
Motion By: Lake Second By: Hellier
WHEREAS, on November 12, 2025 the City Council for the City of Prior Lake, Minnesota (the “City”)
approved a Development Agreement (the "Development Agreement") with Prior Lake B Squared Ventures, LLC, a Minnesota limited liability company (the "Developer") relating to the construction and equipping of a five-story mixed-use building including 105 market rate residential rental units, a street front restaurant of approximately 2,600 square feet, a rooftop bar of approximately 1,435 square feet for restaurant customers, a rooftop deck for tenants, as well as approximately 28 surface parking stalls and two levels of underground parking with approximately 135 parking stalls (the "Project"); and
WHEREAS, pursuant to the Development Agreement, the City is to execute that certain Tax Increment Revenue Note (Prior Lake B Squared Ventures, LLC Project) in the maximum principal amount of up to $3,383,000 (the "TIF Note") upon the terms and
conditions set forth in the Development Agreement; and WHEREAS, the Developer proposes to obtain financing (the “Loan”) for the Project from
Bridgewater Bank, a Minnesota state banking corporation (the "Lender") and as a condition for providing the Loan, the Lender has required that the Developer assign its interest in the Development Agreement and TIF Note to the Lender pursuant to a
Collateral Assignment of Tax Increment Note and Development Agreement (the "Assignment") by and between the City, the Lender, and the Developer; and WHEREAS, a draft of the Assignment has been submitted to the City Council for approval.
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 City Council hereby approves the Assignment in substantially the form submitted, and the Mayor and City Manager are hereby authorized to execute the Assignment on behalf of the City. 3. The approval hereby given to the Assignment includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized
by a resolution of the City to execute the Assignment. The execution of the Assignment shall be conclusive evidence of the approval of the Assignment in accordance with the terms hereof.
Passed and Adopted this 9th day of December 2025. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☐ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☒ ☐ ☐ ______________________________ Jason Wedel, City Manager