IV.4. Resolution Approving a Loan Disbursement to Alatus LIHTC I LLC
CITY OF HOPKINS
City Council Report 2024-028
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Revée Needham, Community Development Manager
Date: March 19, 2024
Subject: Resolution Approving a Loan Disbursement to Alatus LIHTC I LLC
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO approve Resolution 2024-022 Approving Loan Disbursement to Alatus
LIHTC I LLC.
OVERVIEW
The Metropolitan Council offers grant funding through its Livable Communities
Demonstration Account Transit Oriented Development (LCDA-TOD) program to support
high density development projects that contribute to a mix of uses along a major transit
corridor.
In 2021, the City of Hopkins applied for and received a $1,250,000 LCDA-TOD grant to
support the landscaping, public art, and public realm improvements of the 325 Blake Road
project. As part of the financing for Chorus Apartments, the City agreed to loan Alatus
$220,000 of the $1,250,000 grant. The City Council approved the subgrant agreement,
loan agreement, mortgage, and note in 2022 with Resolution 2022-061.
With the construction of the Chorus Apartments complete, Alatus has requested their
$220,000 loan disbursement. Per the Loan Agreement terms and conditions, the City
Council must review and approve the request before disbursing. Alatus has submitted
their receipts and disbursement request form, which have been reviewed by city staff and
submitted to the Metropolitan Council for review and approval. The remaining
disbursement of the LCDA-TOD grant for the site improvements will be handled
administratively once the work is complete.
SUPPORTING INFORMATION
• Resolution 2024-022
Planning & Economic
Development
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2024-022
RESOLUTION APPROVING DISBURSEMENT OF LOAN TO ALATUS HOPKINS
LIHTC I LLC
WHEREAS, Alatus Hopkins LIHTC I LLC (the “Redeveloper”) has acquired or will
acquire and intends to redevelop or cause to be redeveloped the property located at
325 Blake Road in the City of Hopkins (the “Redevelopment Property”) as further
described in the First Amended and Restated Contract for Private Development (the
“Redevelopment Contract”); and
WHEREAS, the Redeveloper intends to construct multiple buildings containing
approximately 791 multifamily units, with 726 units of apartments, and 65 senior
cooperative units, approximately 32 for sale town homes, approximately 8,000 sq. ft. of
ground floor retail, 1,1000 sq. ft. sky lounge and two (2) 4,500 sq. ft. standalone
restaurant pads on the Redevelopment Property (the “Project”), meeting certain
affordability requirements; and
WHEREAS, to assist with the costs of the Project, the City of Hopkins (the “City”), on
behalf of the Redeveloper, applied for and received a Livable Communities
Demonstration Account grant (the “LCDA grant”) from the Metropolitan Council in the
total sum of $1,250,000; and
WHEREAS, to provide financing for a portion of grant-eligible activities with respect to
the construction of Phase IA - Building A (as described in the Redevelopment Contract)
to construct a 6 story building with approximately 116 LIHTC apartments with 100% of
the units affordable at or below 60% AMI, the City agreed to loan a portion of the LCDA
grant in the principal amount of $220,000 to the Redeveloper with the Sub-Grant
Agreement and Loan Agreement adopted by the City Council on the 22nd day of
September 2022 with Resolution 2022-016; and
WHEREAS, the Loan Agreement specifies the minimum conditions and process for
requesting disbursement funds; and
WHEREAS, the Redeveloper has submitted a loan disbursement form (Exhibit A) in the
amount of $220,000; and
WHEREAS, City staff have reviewed the loan disbursement request and submitted the
materials to the Metropolitan Council for final review and approval,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby finds the evidence satisfactory to the City that the grant-eligible activities
completed as of the date of the Disbursement Request Form have been constructed in
accordance with the plans and specifications in all material respects. The City shall
make the disbursement to the Redeveloper per the Loan Agreement terms subject to
the following conditions:
1.The Redeveloper must submit any additional documentation as required by the
Metropolitan Council.
2.The City shall make a disbursement to the Redeveloper in the amount of the
requested disbursement ($220,000) within forty-five (45) days after the date of
the City’s receipt of grant proceeds from the Metropolitan Council.
3.The principal of the loan shall be due and payable to the City per the terms of the
Mortgage Note.
Adopted by the City Council of the City of Hopkins this 19th day of March, 2024.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
EXHIBIT A
DISBURSEMENT REQUEST FORM
City of Hopkins, Minnesota
1010 First Street South
Hopkins, MN 55343
Attn: City Manager
The undersigned, Alatus Hopkins LIHTC I LLC, a Minnesota limited liability company
(the “Borrower”), pursuant to that certain Loan Agreement, dated as September 1, 2022 (the “Loan
Agreement”), between the City of Hopkins, Minnesota (the “City”), and the Borrower, hereby
requests payment of the expenses listed on the attached Expense Listing.
The total amount to be disbursed for this draw is $220,000.00.
In connection with this draw, the undersigned hereby represents as follows:
a. each obligation listed in the attached Exhibit II has been incurred and is a
Project Cost related to the Grant-Eligible Activities,
b. no license or permit necessary for construction of the Grant-Eligible
Activities previously issued has been revoked or the issuance thereof
subjected to challenge before any court of other governmental authority
having or asserting jurisdiction thereover;
c. no event has occurred and is continuing which, but for the giving of notice,
the expiration of any cure period, or both, would constitute an event of
default under the Loan Agreement or the Grant Agreement;
d. all funds of the Borrower’s match, if any, have been fully disbursed for the
payment of Project Costs; and
e. ______% of the Grant-Eligible Activities have been completed.
ALATUS HOPKINS LIHTC I LLC,
a Minnesota limited liability company
By: Alatus Hopkins LIHTC I LLC,
a Minnesota limited liability company
Its: Managing Member
By: ____________________________
Name: Barrett Corwin
Its: Director of Development
Approved:
CITY OF HOPKINS, MINNESOTA
By
Its City Manager
10
Exhibit II
Expense Listing
Expense Description Amount
At Grade Retaining Walls/Pavers
At Grade Plantings, Soil, Irrigation,
Site Bike Racks Boulevard Plantings
See highlighted expenses from subcontractor
Structures Hardscape Specialists
See highlighted expenses from subcontractor
Gardeneer
APRIL BILLINGS
$11,937.50 - $597.00 (retainage) = $11,340.50 (TOD grant)
$132,995.00 - $6,649.75 (retainage) = $126,345.25 (TOD)
SEPTEMBER BILLINGS
$98,943.50 - $4,947.18 (retainage) = $93,996.32
$9,335.00 - $466.75 (retainage) = $8,868.25 (TOD)
$39,409.00 - $1,970.45 (retainage) = $37,438.55 (TOD)