Title
Resolution authorizing an estoppel agreement with One Roof community housing and Brae view lllp FOR THE DEVELOPMENT OF THE brae view PROJECT
Body
WHEREAS, pursuant to Resolution 35D-31A, the Duluth Economic Development Authority (“DEDA”) authorized a Development Agreement (the “Development Agreement”) with One Roof Community Housing (“Developer” or “Grantee”) and Brae View LLLP (“Owner”) for development of the Brae View project (the “Project”) which will be entered into upon closing of Grantee and Owner’s financing with the Minnesota Housing Finance Agency (“MHFA”); and
WHEREAS, the Owner’s Investor Member, MHEG Fund 61, LP, has requested that DEDA provide it notice and opportunity to cure any defaults by Grantee or Owner of the Development Agreement; and
WHEREAS, a project lender MHFA has requested certain clarifications of the Development Agreement.
NOW, THEREFORE, BE IT RESOLVED, that the proper DEDA officials are hereby authorized to enter into an Estoppel Agreement with Grantee and Owner, substantially in the form of attached Exhibit A.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an Estoppel Agreement with One Roof Community Housing and Brae View LLLP, for the development of the Brae View project. MHEG Fund 61, LP is an investor member of the project and has requested notice and opportunity to cure defaults of the Development Agreement. Minnesota Housing Finance Agency has also requested clarifications to the Development Agreement. These clarifications are consistent with DEDA staff’s understanding of the Brae View project during the negotiations of the Development Agreement.
The Brae View project will provide 72 units of affordable senior housing as well as a ground floor daycare facility with space for 100 children.