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HomeMy WebLinkAbout2015-012 EDAR Commissioner Lin Myszkowski introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2015-12 RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF COLLATERAL ASSIGNMENT OF SUB-GRANT AGREEMENTS (HOWE FERTILIZER SITE) WHEREAS, the Brooklyn Center Economic Development Authority ("EDA") has entered into the following agreements providing grants for environmental cleanup on the Howe Fertilizer Project: a) Contamination Cleanup Grant Contract CCGP-1`4-0025-Z-FY15, Howe Fertilizer Project, between DEED and the Authority; b) Environmental Response Fund Grant Agreement between the Authority and Hennepin County Department of Environmental Services, Contract No. A140836; and C) Metropolitan Livable Communities Act Grant Agreement, MBC II Grant No. SG- 02013 between the Metropolitan Council and the Authority. (collectively the "Grant Contracts"); and WHEREAS, MBC II, LLC has entered into the following sub-grant agreements for each of the Grant Contracts, under which MBC II, LLC, as sub-grantee, assumed the responsibilities of the EDA under the Grant Contracts: a) The Sub-Grant Agreement between the EDA and MBC II, LLC, dated May 15, 2015, for $610,000 in grant funds from DEED; b) The Sub-Grant Agreement between the EDA and MBC II, LLC, dated May 15, 2015, for$400,000 in grant funds from the Metropolitan Council; and C) The Sub-Grant Agreement between the EDA and MBC II, LLC, dated October 17, 2014, for $440,400 in grant funds from the County of Hennepin by its Department of Environmental Services. (collectively the "Sub-Grant Agreements"); and WHEREAS, MBC II, LLC has obtain mortgage financing from First National Bank of Omaha ("First National Bank") and MBC II, LLC desires to assign its interests in the Sub-Grant Agreements to First National Bank to secure its obligations under the loan documents;and WHEREAS, the EDA has determined that it is reasonable, appropriate, and in the best interests of the public that the EDA enter into the proposed Collateral Assignment of Sub-Grant Agreements to allow the assignment of MBC II, LLC's rights under the Sub-Grant Agreements. RESOLUTION NO. 2015-12 NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. That the Collateral Assignment of Sub-Grant Agreements is approved. 2. The President and Executive Director are authorized and directed to execute the Collateral Assignment of Sub-Grant Agreements. 3. The Executive Director is authorized and directed to take any and all additional steps necessary or convenient to effect the terms of the Collateral Assignment of Sub-Grant Agreements. June 22, 2015 0 6r Date q6111AJ Pr ent 6J A The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kris Lawrence-Anderson and upon vote being taken thereon,the following voted in favor thereof: Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted.