Title
Approving and Authorizing the CDBG Loan Extension for Ramsey Hill Apartments, District 8, Ward 1
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act; and
WHEREAS, said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community, (g) engaging in the aforementioned activities, with a focus on targeted neighborhoods, when these needs cannot be met through reliance solely upon private initiative; and
WHEREAS, the HRA is authorized to create redevelopment projects as defined in Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, Trellis Co. is the developer of Ramsey Hill Apartments and is affiliated with both Ramsey Hill Limited Partnership (“Ramsey Hill LP”) and Community Housing Development Corporation Ramsey Hill LLC (“CHDC Ramsey Hill”); and
WHEREAS, in 1995 the HRA issued two deferred loans to Ramsey Hill Limited Partnership, in partnership with Brighton Development Corporation, including one in the amount of $688,949 using Community Development Block Grant (CDBG) funds (“CDBG Loan”) and the second loan in the amount of $250,000 using HOME Investment Partnerships Program (HOME) funds (“HOME Loan”) for the rehabilitation of the Ramsey Hill Apartments scattered site project which consists of six buildings with a total of 54 affordable housing units (“Project”) located at 232 Marshall Ave, 478 Marshall Ave, 486 Marshall Ave, 432 Dayton Ave, 436 Dayton Ave, and 658 Dayton Ave, St Paul, MN 55104; and
WHEREAS, in 2015 the HRA reassigned the CDBG Loan and HOME Loan from Ramsey Hill Limited Partnership to CHDC Ramsey Hill LLC (“Owner”) upon the exit of general partner Brighton Development Corporation; and
WHEREAS, Owner is seeking to modify the CDBG Loan to extend the maturity date and affordability terms from December 21, 2025, through December 15, 2031, for an additional six years to develop a plan to refinance the Project and to align with the HOME Loan maturity date; and
WHEREAS, staff recommends to the HRA approval of extending the CDBG Loan through December 15, 2031, for the reasons described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, by this Resolution the HRA approves extending the CDBG Loan and finds a public purpose for the actions taken in connection with the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA Board of Commissioners hereby approves and authorizes the execution of a loan amendment to extend the CDBG Loan and any related documents.
2. The HRA Executive Director, staff, and legal counsel for the HRA are directed and authorized to take all actions necessary to implement this Resolution.
3. The HRA Executive Director is authorized to negotiate and execute any loan documents and instruments in connection with this Resolution including, without limitation, the execution of a loan amendment to extend the CDBG Loan and any related documents.