Title
Resolution recommending approval of a $65,000 CDBG Loan to Life Juices, LLC or a related entity for acquisition, rehabilitation and code compliance project at 450 Lexington Parkway North, District 8, Ward 1
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 Minn. Stat. Section 469.002, Subd. 14; and
WHEREAS, the operator of Life Juices, LLC or a related entity (“Borrower”) is proposing to purchase and rehabilitate an existing building and open a new pressed juice and smoothie bar at 450 Lexington Parkway N to construct the food and beverage establishment (“Project”), which meets the CDBG national objective of area benefit, meaning that the services the business provides will be available to all the residents in a particular area, where at least 51 percent of the residents are low and moderate income all as described in the staff report submitted to the HRA Board with this resolution (the “Board Report”); and
WHEREAS, the HRA Board finds there is a proper public purpose for providing the loan to Life Juices, LLC for the Project, including to provide a benefit to an area in which at least 51% of the residents are low and moderate income, create jobs, support investment in low-to-moderate income areas, and support the tax base and therefore recommends that the City Council of the City of Saint Paul approve the requested $65,000 CDBG Loan; and
WHEREAS, the Borrower has agreed to enter into a loan agreement with the City of Saint Paul governing the use of such funds.
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. it hereby recommends approval to the City Council of the making of a $65,000 loan to Borrower using CDBG funds for the building acquisition and rehabilitation Project under the terms of a loan agreement that contains all appropriate CDBG compliance obligations.
2. upon approval by the City Council, the HRA staff and the HRA Executive Director are further authorized and directed to take all actions necessary to implement this resolution.