Title
RESOLUTION AUTHORIZING A CONSENT TO COLLATERAL ASSIGNMENT OF DEVELOPMENT DOCUMENTS BY INCLINE PLAZA DEVELOPMENT LLC IN FAVOR OF SOLPACIFIC INCOME FUND, LLC RELATED TO THE INCLINE PLAZA PROJECT
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CITY PROPOSAL:
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 Incline Plaza Development LLC (Developer) in favor of SolPacific Income Fund, LLC (Lender), substantially in the form of that attached hereto as Exhibit A, consenting to the collateral assignment of the Development Agreement between DEDA and Developer which bears DEDA Contract No. 24 860 010 and the related TIF Note to Lender as part of the financing of the first phase of the Incline Plaza Project, the first phase being the construction of a 70-unit condominium development.
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 Incline Plaza Development LLC in favor of the Lender SolPacific Income Fund, LLC. 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 only to the first phase of the Inline Plaza Project, in which Developer will construct a 70-unit condominium.