Title
Authorizing a loan up to $70,000 from the HRA Business Assistance Fund to SIR Cerresso Fort Boxing and Fitness, LLC, 965 Arcade St, District 5, Ward 6
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, Subdivision 14; and
WHEREAS, SIR Boxing is an existing business with a new location in a formerly vacant building located at 965 Arcade St, Saint Paul, Minnesota; and
WHEREAS, SIR Boxing requested a loan to support their renovation project at 965 Arcade St (the “Project”); and
WHEREAS, Staff reviewed and evaluated SIR Boxing’s 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, Staff recommends approval of a loan in the amount of $70,000 to SIR Cerresso Fort Boxing and Fitness, LLC 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 SIR Boxing is an eligible business because it is an existing for-profit business in the City of Saint Paul, and has been unable to obtain other financing. The Board further finds that this loan is an eligible use of funds because it will be used for capital improvements to a formerly vacant space. The Board finds that flexible financing terms are appropriate because the owner’s equity exceeds 10% of the project cost. The Board also finds that there is a proper public purpose to approve the Loan and allocate HRA Business Assistance funds of $70,000 for the Project, for the reasons articulated in the Board Report and Public Purpose Summary accompanying 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 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 City Attorney’s Office.
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 City Attorney’s Office.
3. The HRA Executive Director, Staff, and City Attorney’s Office are hereby authorized to take all other actions needed to implement this Resolution.
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.