Loading...
HomeMy WebLinkAbout2005-011 EDAR1 1 1 its adoption: Commissioner Kathleen Carmody introduced the following resolution and moved EDA RESOLUTION NO. 2005 -11 RESOLUTION DETERMINING DEFAULT BY TALISMAN BROOKDALE, LLC AND DIRECTING DELIVERY OF NOTICE OF DEFAULT AND AUTHORIZING TERMINATION OF SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT WHEREAS, the EDA of Brooklyn Center entered into a Second Amended and Restated Development Agreement dated May 13, 2003, by and between the EDA of Brooklyn Center, Minnesota and Talisman Brookdale, LLC; and WHEREAS, pursuant to Section 9.4 the Second Amended and Restated Development Agreement, the EDA is required to give notice of default to Talisman Brookdale, LLC and Fidelity Investments; and WHEREAS, events of default are defined in Section 8.1 of the Second Amended and Restated Development Agreement; and WHEREAS, the EDA of Brooklyn Center has been advised of events of default that have occurred in the performance by Talisman Brookdale, LLC of its obligations under the Second Amended and Restated Agreement; and WHEREAS, attached hereto and incorporated herein by references Exhibit A as a proposed notice of default. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota that the Executive Director be and hereby is directed to send the notice of default attached hereto as Exhibit A to Talisman Brookdale, LLC and Fidelity Investments; and be it further resolved that the Executive Director be and hereby is authorized to take such actions as may be necessary or appropriate to terminate the Second Amended and Restated Development Agreement in the event that all of the events of default have not been cured within any applicable time period. June 27, 2005 L-1214d/t4L4L-d Date Presid nt The motion for the adoption of the foregoing resolution was duly seconded by commissioner Diane Niesen and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. EDA RESOLUTION NO. 2005-11 Michael J. McCauley Executive Director June 28, 2005 Mr. James A. Schlesinger President, Talisman Brookdale, LLC 1500 San Reno Avenue, Suite 135 Coral Gables, Florida 33146 Fidelity Investments P.O. Box 770001 Cincinnati, OH 54277 -0002 1781048v1 Re: Notice of Default Dear Mr. Schlesinger and Fidelity Investments: Exhibit A Offices of the City Manager You are hereby notified, pursuant to Section 9.4 of the Second Amended and Restated Development Agreement dated May 13, 2003 by and between the Economic Development Authority of Brooklyn Center, Minnesota and Talisman Brookdale, LLC (the "Development Agreement that various "Events of Default" have occurred under Section 8.1 of the Development Agreement. The 'Events of Default" include, but may not be limited to, the following: Section 8.1(g). The Holder of a mortgage on the Development Property has commenced foreclosure proceedings. Section 8.1(h). The combined Market Value of the Development Property and Adjacent Development Property was less than $75,000,000 as of January 2, 2005; Section 8.1(i). Anchor Tenants vacated the Adjacent Development Property and were not been replaced by nationally recognized retailers acceptable to the Authority within 12 months; Section 8.1(1). The preconditions set forth in Section 6.1 of the Development Agreement to the issuance of the Note were not satisfied on or before August 1, 2004. 1 EDA RESOLUTION NO. 2005-11 This letter is to notify you that the Authority will exercise any or all of its rights and remedies under Section 8.2 of the Development Agreement if the above mentioned Events of Default are not cured within 30 days of the date of this letter. Sincerely, Michael J. McCauley Executive Director Economic Development Authority of Brooklyn Center 1781048v!