Title
Resolution Approving a Subordination for Bocce, LLC, doing business as Cossetta Alimentari, 211 West 7th Street, District 9, Ward 2.
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 Minnesota Statutes Section 469.002, Subd. 14; and
WHEREAS, in 2011, the HRA made a TIF loan of $437,000 (“HRA TIF Loan”) to Bocce, LLC (the “Company”), secured by a third-position mortgage for the expansion of the Cossetta Alimentari restaurant located at 211 7th Street West, St. Paul, Minnesota (“Project”); and
WHEREAS, the Company completed their expansion project in 2013 and has since continuously operated the Project; and
WHEREAS, the Company is proposing to restructure their first-mortgage loan with Western Bank to refinance debt on the Project, including a Western Bank term loan and a private loan with an estimated balance of $901,840.00 (the “New First Mortgage”); and
WHEREAS, the Company is proposing to secure a third-mortgage loan with Western Bank to refinance an additional private loan on the Project, with an estimated balance of $304,969.00 (the “Third Mortgage”); and
WHEREAS, as part of the refinancing transaction, the Company is requesting the HRA agree to subordinate the HRA TIF Loan to the New First Mortgage and the Third Mortgage for the reasons and on the terms stated in the staff report accompanying this resolution (the “Subordination”); and
WHEREAS, by this Resolution the HRA Board of Commissioners finds a public purpose for the Subordination for 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 the Subordination to the New First Mortgage and Third Mortgage to Western Bank and for the existing Western Bank term loan and two private loans to be paid off.
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. The HRA’s Executive Director is authorized to negotiate the terms of and execute any agreements, documents and instruments in connection with this Resolution.