Title
RESOLUTION AUTHORIZING A CONSENT TO COLLATERAL ASSIGNMENT OF DEVELOPMENT DOCUMENTS BY HISTORIC DULUTH ARMORY, LLC IN FAVOR OF SUNRISE BANKS, NATIONAL ASSOCIATION, RELATED TO THE HISTORIC ARMORY PROJECT
Body
RESOLVED, by the Duluth Economic Development Authority (DEDA) that the proper DEDA officials are hereby authorized to execute the consent to the Collateral Assignment of Development Agreement and TIF Note by Historic Duluth Armory, LLC (Developer) in favor of Sunrise Banks, National Association (Lender), substantially in the form of that attached hereto as Document A, consenting to the collateral assignment of the Development Agreement between DEDA and Developer which bears DEDA Contract No. 26 860 012 and the related TIF Note to Lender as part of the financing of the project that provides space for working artists, inclusive music programs, a food hall, and two large community event spaces, creating new jobs and revenue streams and expanding existing arts programs for the local economy.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize DEDA’s consent to a Collateral Assignment of Development Agreement and TIF Note by Developer Historic Duluth Armory LLC in favor of the Lender Sunrise Banks, National Association. The Lender requires the Collateral Assignment as a condition of the financing the development of the property. The Collateral Assignment creates a security interest in Developer’s rights to payment of under the Development Agreement (also called the TIF Agreement) and TIF Note. This Collateral Assignment relates to the project which provides space for working artists, inclusive music programs, a food hall, and two large community event spaces, creating new jobs and revenue streams and expanding existing arts programs for the local economy.