Title
Resolution Approving and Authorizing an Amended HOME Loan Agreement for the West Side Flats Project, District 3, Ward 2
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 HRA has previously entered into a Second Amended and Restated Development Agreement with West Side Flats Urban Development, LLC. ("WSFUD") for the construction of the West Side Flats redevelopment project that is more fully described in the staff report accompanying this Resolution ("Project"); and WSFUD will be conveying its developer interests in the Project to an affiliated entity by the name of West Side Flats Apartments LLC ("Developer"); and
WHEREAS, the Developer has requested gap financing from the HRA for the construction of the West Side Flats Apartments development that is more fully described in the staff report accompanying this Resolution ("Project"); and
WHEREAS, on June 9, 2010 the HRA previously approved a $1,000,000 HOME loan for the Project; and the Developer has requested an additional $1,500,000; and
WHEREAS, the HRA Board finds there is proper public purpose for providing the additional $1,500,000 in HOME fund financing ("HOME funds") to the Developer for the Project for a total of $2,500,000 in HOME fund financing for the Project; and
WHEREAS, the Developer has also requested tax increment financing for the proposed development for which future HRA approval will be requested; and
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 hereby approves the additional $1,500,000 HOME funds for the Project, and the HRA Chair or Commissioner, HRA Executive Director and Director, Office of Financial Services are hereby authorized and directed to execute all loan documents on behalf of the HRA. The Executive Director of the HRA is hereby authorized and directed to negotiate and agree to the terms of the loan documents needed to effectuate this Resolution provided that such documents are acceptable in form and substance to the Saint Paul City Attorney.
2. The HRA budget is hereby amended and approved as detailed in Attachment A.
3. The HRA staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution and the HRA's Executive Director is authorized to execute any documents and instruments in connection therewith.