| | | | | | | | | Date: | October 17, 2017
| Agenda Item #: IV.I. | To:
| Mayor and City Council
| Item Type:
| | Other | From:
| Cary Teague, Community Development Director
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Item Activity: | | Subject: | Development Contract Revision: Envi Edina | Action | |
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ACTION REQUESTED:
Approve the revised development agreement.
INTRODUCTION:
The City Attorney has drafted the attached development contract. There are no substantive changes, only date revisions. However, the project lender is requiring an attached rider agreement regarding the affordable housing. HUD is requiring the following:
1. The affordable housing covenants in Section 15.A. of the Development Agreement must be subordinated to the HUD-insured mortgage;
2. The indemnity obligations in Section 16.B. of the Development Agreement cannot apply to HUD in the event it acquires the project;
In order to address these matters while not further revising the Developments Agreement, with the assistance of lender’s counsel the applicant has prepared the attached Development Agreement Rider containing the provisions required by HUD, and also amending the legal description of the project to include the legal description in the new plat.
Without this rider agreement, the applicant would not be able to finance the project. |
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