Title
Agreeing to Consent as Mortgagee and Subordinate the HRA’s Mortgages to a Maintenance Agreement and Declarations for Parking Lot Improvements and Easements at Skyline Tower Located at 1247 Saint Anthony Avenue, Ward 1, District 13.
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 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, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, Common Bond Communities is an experienced affordable housing developer and is the owner of Skyline Tower of St. Paul Limited Partnership ("Developer") and is proposing to make improvements to its housing project known as Skyline Tower located at 1247 St. Anthony Ave, Saint Paul, Minnesota (“Project”); and
WHEREAS, on June 10, 2015 via RES 15-1042, the HRA approved a $750,000 loan in Community Development Block Grant funds for Skyline Tower to make window improvements and piping replacements; and
WHEREAS, the Developer is seeking to improve the Project’s parking lot and requires mortgagee consent on and subordination of HRA’s mortgage to related permit documentation; and
WHEREAS, the City is requiring a Maintenance Agreement to subject the Project to the City’s permitting requirements and ensure the Developer provides for the maintenance of the stormwater facilities constructed pursuant to City of Saint Paul Project 23-077760; and
WHEREAS, the City is requiring a Declaration of Easements that provides reciprocal access and utility easements across the 4 tax parcels of the Project; and
WHEREAS, the Capitol Region Watershed District (“CRWD”) is requiring a Declaration of Operations and Maintenance Obligations for Stormwater Facilities to subject the Project to certain conditions and restrictions imposed by the CRWD as a condition of issuance of CRWD Permit #23-024; and
WHEREAS, the first mortgage on the Project was initially issued by Oak Grove Commercial Mortgage, LLC and was transferred to Jones Lang Lasalle Multifamily, LLC (“JLL”) in 2015 upon JLL’s acquisition of the initial lender; and
WHEREAS, the second mortgage on the Project was issued by Minnesota Housing Finance Agency in 2015; and
WHEREAS, the HRA’s $750,000 loan is in third lien position after the Minnesota Housing Finance Agency’s mortgage; and
WHEREAS, the HRA agrees to consent as a mortgagee and subordinate its mortgage to the Declaration of Easements, the Maintenance Agreement, and the Declaration for Operations and Maintenance Obligations for Stormwater Facilities; and
WHEREAS, the HRA agrees to consent as a mortgagee to the Declaration of Easements; and
NOW, THEREFORE, BE IT RESOLVED by the HRA Board of Commissioners that:
1. The HRA approves the consent of and subordination of its mortgage to the Maintenance Agreement; and
2. The HRA approves the consent of and subordination of its mortgage to the Declaration for Operations and Maintenance Obligations for Stormwater Facilities; and
3. The HRA approves the consent of and subordination of its mortgage to the Declaration of Easements; and
4. The HRA Executive Director, staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution. The HRA's Executive Director is authorized to execute any documents and instruments in connection with this Resolution.