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Resolution Approving and Authorizing Subordination of Three HRA Loans for Refinancing of The Sibley Park Apartment Project, Amendment of $750,000 HOME Loan Note, and Sale of $750,000 HOME Loan Note and of $250,000 HRA Loan Note to Sherman Associates LLC
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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, Sibley Park Apartments Limited Partnership ("Developer") is proposing to refinance its HUD insured mortgage for the Sibley Park Apartments housing project ("Project"); and
WHEREAS, there are three existing HRA loans on the Project that Developer is asking to be subordinated to the new HUD financing and those loans are: 1) $750,000 HOME loan ("$750,000 HOME Loan"); 2) $500,000 loan funded with Met Council funds ("$500,000 Loan"); and 3) $250,000 loan funded from HRA Enterprise Fund 117 ("$250,000 Loan") (collectively the three loans are referred to as "HRA Loans"), and
WHEREAS, the existing repayment terms of the HRA Loans are described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, Sherman Associates LLC, an affiliate of the Developer, has proposed to purchase the $750,000 HOME Loan and purchase the $250,000 Loan and staff is recommending the sale of these two loans on the terms set forth in the board report, and WHEREAS, the HRA Board of Commissioners finds a public purpose for the actions authorized by 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 Board of Commissioners hereby approves and authorizes the subordination of the HRA Loans to the new HUD refinancing for the Project, amendment of the $750,000 HOME Loan, and sale of the $750,000 HOME Loan and $250,000 Loan to Sherman Associates LLC, all on terms consistent with those described in the staff report.
2. The HRA Executive Director is authorized and directed to execute all purchase agreements, documents and instruments necessary to effectuate this Resolution.
3. The HRA Executive Director, staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution.