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Resolution of the Penfield Apartments LLC Board of Governors Approving and Authorizing Distributions of Net Sales Proceeds From the Sale of the Penfield Apartments, Execution of Termination of Development Agreement, and Other Actions, District 17, Ward 2.
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WHEREAS, Penfield Apartments, LLC (the "Company") is a limited liability company established and existing under Minnesota Statutes, Chapter 322B; and
WHEREAS, by Resolution No. 16-103 adopted on March 30, 2016 the Company’s Board of Governors approved and authorized the execution of a Purchase Agreement (“Purchase Agreement”) for the sale of the Penfield Apartments located at 101 10th Street East, Saint Paul, Mn (“Penfield Apartments”); and
WHEREAS, as described in the accompanying staff report, on September 22, 2016 the Company closed on the sale of the Penfield Apartments and received net sales proceeds (“Sales Proceeds”); and
WHEREAS, as part of the sale, the sum of $1,024,814.56 (“Escrow Funds”) was placed into escrow to cover the potential cost for remediating a water problem at the Penfield Apartments and the distribution of those escrow monies is governed by a Water Remediation Escrow Agreement executed among the Company, the purchaser and Stewart Guaranty Title Company (“Escrow Agreement”); and a portion of the Escrow Funds will be held until one (1) year after substantial completion of the repairs made to the Penfield Apartments for the water problem; and such repairs are currently being made by Weis Builders, Inc., and Weis Builders, Inc has filed a $350,000 Warranty Bond to secure its obligation to make these repairs which lowers the risk that any of the Escrow Funds will be needed to complete such repairs; and
WHEREAS, Penfield Apartments has maintained operating, non-operating and other accounts with respect to its ownership and management of this project and there are balances in these accounts (“Account Balances”); and
WHEREAS, by Resolution No. 13-01 adopted ...
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