Title
Approval of loan in the amount of $315,000 to New Verticals Development LLC to be used for acquisition costs at time of closing on 1749 Thomas Avenue, District 11, Ward 4
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
WHEREAS, the HRA previously allocated $3,000,000 of Housing Trust Fund dollars to the NOAH Preservation Fund; and
WHEREAS, staff have determined the $315,000 loan request from New Verticals Development LLC is reasonable and aligns with the per-unit amounts in the NOAH Preservation Fund program guidelines, and will be subject to underwriting and due diligence, and represents a positive public use and purpose to preserve 7 affordable housing units in an area of ongoing displacement identified in the Anti-Displacement Study; and
WHEREAS, after the senior lender mortgage and borrower equity, the HRA NOAH Preservation Fund source will provide sufficient gap financing for acquisition of the project at 1749 Thomas Avenue, 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 Board approves and authorizes issuance of a $315,000 loan for the acquisition of 1749 Thomas Avenue and approves the loan terms of 0% interest and deferred payment with a 20-year term.
2. The Board approves and authorizes entering into loan documents which are to be consistent with applicable compliance requirements and the terms herein.
3. The Board 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.
4. Subject to approval by the City Attorney’s Office and pursuant applicable ordinances and bylaws, the only signature that shall be required on documents in connection with this Resolution is that of the Executive Director 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.
5. 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.