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Resolution Approving and Authorizing the Assignment, Assumption, Modification and Subordination of an Existing HRA Loan in the Amount of $600,000 and a new CDBG Loan in the Amount of $250,000.00 for St. Albans Park Project, District 8, Ward 1
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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, in 1994 the HRA made a deferred loan in the amount of $600,000 ("1994 Loan") to Selby-Dale Cooperative Apartments, the owner of a 74 unit low-income housing project located at 627 Selby Avenue, Saint Paul ("Property") for purposes of rehabilitation of the Property, and there remains outstanding on the 1994 Loan as of May 1, 2013 the sum of $1,183,333.00 (consisting of principal and interest); and
WHEREAS, St. Albans Park II Limited Liability Limited Partnership ("Developer"), of whom Twin Cities Housing Development Corporation is a member, is proposing to acquire and further rehabilitate the Property ("2013 Project"), as more fully described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, in connection with the 2013 Project, the Developer is requesting to assume the 1994 Loan on modified terms and to receive a new CDBG loan of $250,000.00 from the HRA, such assumption and new loan to be on terms more fully described in the staff report ("Financing"), and by this Resolution the HRA approves this Financing and finds a public purpose for the expenditure of public funds for the 2013 Project.
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 the Financing for the 2013 Project contingent on: (a) the Developer securing from other sources the necessary funds to complete the 2013 Project, and (b) compliance with the HRA's contract requirements by the Developer and its contractors and subcontractors.
2. The budget for the 2013 Project is hereby approved as detailed in Attachment A.
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. The HRA's Executive Director is authorized to negotiate and execute any documents and instruments in connection with this Resolution.