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Authorizing a loan up to $30,000.00 from the HRA Business Assistance Fund to Selby Property Investments LLC, 1675 Selby Avenue, District 13, Ward 4
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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 Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, Selby Property Investments LLC (“Selby Property Investments”) is a new business entity which purchased a property located at 1675 Selby Avenue and intends to renovate the building; and
WHEREAS, Selby Property Investments requested a loan to pay for certain renovation costs related to its $124,000 renovation project to provide updated space for both commercial tenants on its first floor, updated façade, and some exterior improvements to its storage building (“The Project”); and
WHEREAS, Staff reviewed and evaluated Selby Property Investments request and prepared the Board Report attached to this Resolution, which provides a more detailed summary of the Project and proposed loan terms; and
WHEREAS, Selby Property Investments is a limited liability corporation in good standing in the State of Minnesota; and
WHEREAS, Selby Property Investments is an eligible business because it is a new for-profit business located in the City of Saint Paul, and has been unable to obtain other financing before submitting an application to the Business Assistance Fund; and
WHEREAS, The Project is an eligible use of the Business Assistance Fund because the loan will be used to make improvements to a blighted building which will in turn strengthen and improve a Saint Paul neighborhood; and
WHEREAS, The total project financing will include more than 10% equity from Selby Property Investments and less than 50% of the total Project cost comes from HRA and other City funding sources; and
WHEREAS, The Project meets all of the stated Business Assistance Fund program guidelines; and
WHEREAS, Staff recommend approval of a loan in the amount of $30,000.00 to Selby Property Investments from the HRA Business Assistance Fund (the “Loan”), consistent with the loan terms articulated in the attached Board Report; and
WHEREAS, the HRA Board of Commissioners find that there is a proper public purpose to approve the Loan and allocate HRA Business Assistance funds of $30,000.00 for the Project, for the reasons articulated in the Board Report and Public Purpose Summary accompanying this Resolution, to wit: this project will create new jobs in the City of Saint Paul and will benefit the community by making a positive tax base impact through capital investments to real property, and by renovating a vacant building.
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 hereby approves the Loan under the terms articulated in the Board Report accompanying this Resolution, with any additional terms and conditions as deemed necessary and appropriate by the HRA Executive Director and the HRA Attorney.
2. The HRA Chair or Commissioner, the HRA Executive Director, and the City’s Director of the Office of Financial Services are hereby authorized to execute the necessary documents in connection with the Loan, provided that such documents are acceptable in form and substance to the HRA Attorney.
3. The HRA Executive Director, Staff, and HRA Attorney are hereby authorized to take all other actions needed to implement this resolution.