Title
Resolution Approving and Authorizing Execution of a Third Amendment to Loan Agreement with D & N, Inc., dba Mai Village Restaurant located at 394 University Avenue, District 8
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the "Act"); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) 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 Minn Stat Section 469.002, Subd. 14; and
WHEREAS, in April 2003 the HRA and Western Bank provided financing to D & N, Inc., ("Borrower") to acquire and construct the Mai Village Restaurant at 394 University Avenue (the "Project"); and
WHEREAS, the HRA's loan was in the amount of $400,000 ("Loan") and was evidenced by a promissory note, mortgage, assignment of rents and leases, fixture financing statement, security agreement and loan agreement executed by Borrower ("Loan Documents"); and
WHEREAS, in 2008 the HRA approved a seven month deferral of Loan repayments from May to December, 2008 and a First Amendment to Loan Documents; and Loan payments were made by Borrower to the HRA from January 2009 through March 2010; and
WHEREAS, on March 24, 2010 the HRA approved a Second Amendment to Loan Documents which deferred, but did not forgive, repayment for the period from April 2010 through March 2011: and
WHEREAS, the Borrower has requested another deferral, but not forgiveness, of the Loan for the period from April 2011 through June 2015 on terms described in the staff report accompanying this Resolution and the HRA is willing to do so on the terms and conditions stated in this Resolution, and
WHEREAS, no budget amendment is needed for the HRA's actions in this Resolution.
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 hereby approves and authorizes a Third Amendment to Loan Documents for the period from April 2011 through June 2015 for deferral but not forgiveness of principal and interest payments under the Loan on the terms and conditions contained in the attached staff report. The HRA Executive Director is hereby authorized and directed to negotiate and execute the necessary Third Amendment to Loan Documents on behalf of the HRA.
2. 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, and the HRA's Executive Director is authorized to execute any documents and instruments in connection therewith.