Title
RESOLUTION AUTHORIZING THE ACCEPTANCE OF AN ALLONGE TO PROMISSORY NOTE RELATED TO VILLAGE PLACE APARTMENTS.
Body
WHEREAS, the city of Duluth, by Resolution 05-0177R, authorized the proper city officials to enter into that certain Section 108 loan agreement with Hillside Business Association ("HBA") and Central Hillside Development Limited Partnership, LLLP (the "Developer") related to construction of the Village Place Apartments dated August 18, 2005 (the "Loan Agreement") and accepted a collateral assignment of that certain promissory note dated August 18, 2005 from the HBA in favor of the HBA in the amount of $7,282,000 (the "Promissory Note"); and
WHEREAS, the city, by Resolution 07-0388R, authorized the proper city officials to enter into that certain loan agreement, note and mortgage modification agreement dated June 1, 2007 with the HBA and the Developer modifying the Loan Agreement reducing the principal amount of the Promissory Note to $2,638,138.83 and assigning all of HBA's rights, title, and interest in the Promissory Note and the modification agreement to the City; and
WHEREAS, the Developer desires to extend the maturity date of the Promissory Note.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to accept the allonge to promissory note, substantially in the form attached hereto as Exhibit A, which extends the maturity date of the Promissory Note, said authorization is subject to the United States Department of Housing and Urban Development's approval of the city's request for principal payment relief and Section 108 loan guarantee assistance.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to accept an amendment to the promissory note it holds from the developer of the Village Place Apartments that extends the maturity date of the note to July 18, 2026. This extension will provide the City, developer, and community partners the time needed t...
Click here for full text