Title
Resolution approving and authorizing modifications to development agreement and promissory note made with 754 Randolph, LLC, for property at 754 Randolph Avenue, District 9, Ward 2
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 when needs cannot be met through reliance solely upon private initiative, which can also be undertaken in targeted neighborhoods, 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
WHEREAS, in 2020 754 Randolph, LLC, a Minnesota limited liability company (“Borrower”) purchased from the HRA the subject property at 754 Randolph Avenue, which was the old Fire Station #10 building and was in substandard condition, and thereafter Borrower brought the improvements into compliance with public standards, improved the tax base, improved the financial stability of the community, and created jobs for low and moderate income persons; and
WHEREAS, in connection with such purchase of the building, and pursuant to HRA Res. No. 18-282, the HRA and Developer executed a Development Agreement dated March 13, 2020 (“Development Agreement”), and Borrower executed and delivered to HRA a certain Promissory Note dated March 13, 2020 in the original principal amount of $220,000 and maturing on June 1, 2030 (the “Note”) as payment for the purchase price; and
WHEREAS, the Borrower, as developer, experienced substantial construction delays due to the coronavirus pandemic and related economic events, but eventually completed construction and began makings its payments under the Note and under related STAR and CDBG loans made to Borrower by the City of Saint Paul; and
WHEREAS, the parties hereto now desire to modify the Note and the Development Agreement to change the first payment date and the maturity date, along with other related modifications;
WHEREAS, staff from the Department of Planning and Economic Development, after the Credit Committee’s approval on March 29, 2022, now recommends that the Board of Commissioners of the HRA approve the loan modifications that are set forth below.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota:
1. that the HRA hereby approves amending the Development Agreement, Note, and any related loan documents made with 754 Randolph, LLC under the terms and conditions described in the staff report and consistent with the following:
a. The maturity date of the loan may be extended to November 1, 2031;
b. The first payment due date of the loan may be modified to December 1, 2021;
c. In connection with such modification, late fees and loan modification fees may be waived.
2. that the HRA hereby approves and authorizes staff, under the direction of the Executive Director, to take all actions necessary to carry out the activities authorized by this Resolution, including finalizing all documents and agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office.
3. that the only signature that shall be required on any and all documents in connection with this Resolution, subject to approval by the City Attorney’s Office, is that of the Executive Director of the HRA who is hereby approved and authorized to execute all said documents and instruments, which shall be sufficient to bind the HRA to any legal obligations therein.
4. that this Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until said documents are executed by the appropriate official(s) of the HRA.