HomeMy WebLinkAbout2023-031 (Approving The Collateral Assignment Of Interest In Revenue Note)City of Stillwater
Washington County, Minnesota
RESOLUTION 2023-031
RESOLUTION APPROVING THE COLLATERAL
ASSIGNMENT OF INTEREST IN REVENUE NOTE
WHEREAS, the City of Stillwater (the "City") and Midnight Real Estate II, LLC (the
"Developer") entered into a Contract for Private Redevelopment, dated November 2, 2017,
and pursuant to the terms and conditions of the Assignment of Rights Under Development
Contract, dated May 1, 2018, from Midnight Real Estate, LLC to the Developer (collectively,
the "Agreement") in connection with the project described in the Agreement (the "Project")
and;
WHEREAS, the City issued a Tax Increment Revenue Note (Crosby Hotel Project),
dated May 1, 2018, pursuant to the Agreement and made payable to the Developer (the
"TIF Note") and assigned to Coulee Bank; and
WHEREAS, the Developer is seeking to finance the Project with Choice Financial
Bank (the "Bank"), and the Bank is requiring the execution of a Collateral Assignment of
Interest in Revenue Note (the "Collateral Assignment"); and
Upon release of the original TIF Note by Coulee Bank, the Developer shall promptly
deliver the original of the TIF Note to the Bank.
WHEREAS, a draft of the Collateral Assignment has been submitted to the City
Council for approval:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater,
Minnesota, as follows:
1. The City Council hereby approves the Collateral Assignment in substantially the
form submitted, and the Mayor and the City Clerk are hereby authorized and directed to
execute the Consent to Assignment of Payments Under Tax Increment Revenue Note (the
"Consent") on behalf of the City. In the absence of the Mayor or the City Clerk, any
document authorized by this resolution to be executed may be executed by an acting or
duly designated official.
2. The approval hereby given to the Collateral Assignment includes approval of
such additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate
and approved by the City officials authorized by this resolution to execute the Consent. The
execution of the Consent by the appropriate officer or officers of the City shall be conclusive
evidence of the approval of the Collateral Assignment in accordance with the terms hereof.
Adopted by the Stillwater City Council this 21 st day of February, 2023.
CITY OI R'
Ted Kozlowski, Mayor
Atte s
Beth Wolf, City CI