Title
Resolution Recommending the Authorization and Approval of an Amended Subordination of the $400,000 CDBG Loan to the Dayton’s Bluff Construction Training Center, District 4, Ward 7.
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, Dayton’s Bluff Construction Training Center acquired the building on the parcel located at 809 7th Street East (the “Property”) for the purpose of redeveloping it into the Construction training Center (the “Project”); and
WHEREAS, the Project provides important resources for people pursuing training construction; and
WHEREAS, on April 5, 2018, the Housing and Redevelopment Authority of the City of Saint Paul and the City of Saint Paul entered an Amended and Restated Loan Agreement (A&R Agreement) with the Dayton’s Bluff Construction Training Center for a $400,000 Community Development Block Grant (CDBG) fund to be used for the acquisition, rehabilitation, and creation of the Construction Training Center at 809 7th Street East, Saint Paul, Minnesota; and
WHEREAS, the Mortgage and Debt Subordination Agreement effective as of April 5, 2018 established the mortgage in a subordinate lien position to Sunrise New Markets Fund XIV LLC, the Senior Lender; and
WHEREAS, the Sunrise New Markets Fund XIV LLC compliance terms for Note A of the original principle of $612,493.00, are ending and the note is being reassigned to Sunrise Banks National Association; and
WHEREAS, a Subordination Agreement with Sunrise Banks National Association is required to reassign the New Market Tax Fund loan; and
WHEREAS, by this Resolution, the HRA and City of Saint Paul’s loan of $400,000 to the Dayton’s Bluff Construction Training Center will be subordinate to the $612,493 Sunrise Banks National Association.
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 recommends the authorization and approval of an amended subordination agreement to the CDBG 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.