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Resolution Approving and Authorizing Execution of First Amendment to Development and Loan Agreement, Promissory Note, and Combination Mortgage, Security Agreement and Fixture Financing Statement with West 7th/Fort Road Federation, Inc., District 9, Ward 2.
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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 Minn Stat Section 469.002, Subd. 14; and
WHEREAS, on April 5, 2011 the HRA and the West 7th/Fort Road Federation, Inc., (the "Borrower") executed the following documents: (i) a Development and Loan and Agreement with respect to that portion of the Schmidt Brewery site ("Property") on West 7th Street in Saint Paul, Minnesota as described in said agreement ("Development Agreement"); (ii) a promissory note in the sum of $1,895,715.00 ("Note"); and (iii) a combination mortgage, security agreement, and fixture financing statement ("Mortgage"); (collectively the Note, Mortgage and Development Agreement are referred to as the "Loan Documents"); and
WHEREAS, the Borrower has requested an additional period of one year to complete financing for Phase II on the Property; and
WHEREAS, staff has negotiated the terms of a First Amendment to the Loan Documents with the Borrower ("First Amendment"), which is available for review in the office of the HRA Executive Director; and
WHEREAS, staff recommends to the HRA Board approval of the First Amendment for the reasons described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, by this Resolution the HRA approves the First Amendment and finds a public purpose for the actions taken in connection with the Property.
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 and authorizes the execution of the First Amendment.
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.
3. The HRA's Executive Director is authorized to negotiate and execute any documents and instruments in connection with this Resolution including without limitation the execution of the First Amendment and any related documents.