Title
Approving the partial loan forgiveness of up to $238,949.88 in combined principal and interest on a City mortgage to the Commerce Building Phase I and Commerce Building Phase II projects, 10 4th Street East (District 17, Ward 2).
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WHEREAS, the Commerce Building Phase I and Commerce Building Phase II together are a 100-unit affordable, mixed-use development at 10 4th Street East (the “Project”).? The Project was converted from office to housing from 2007 to 2011 by CommonBond Communities (CBC) to provide affordable housing for Saint Paul residents at 30-60% area median income (AMI); and
WHEREAS, the City of Saint Paul (City) and the Housing and Redevelopment Authority of the City of Saint Paul (HRA) loaned the Project $563,100 of Metropolitan Council funds with a 0% interest rate, fully deferred, with a maturity date of August 30, 2037, in a subordinate lien position; and
WHEREAS, to avoid foreclosure, CBC intends to sell the property to PAK Properties (PAK); and,
WHEREAS, PAK has submitted an application for transfer of ownership of the Low Income Housing Tax Credits (LIHTC) associated with the Project; and
WHEREAS, to ensure the sale, CBC has requested up to $1,255,384 of combined City and HRA debt be forgiven; and
WHEREAS, on February 11, 2025, the City’s Planning and Economic Development Department Credit Committee reviewed and approved the partial forgiveness of the combined City and HRA debt; and
WHEREAS, on March 12, 2025, the HRA approved the partial loan forgiveness of up to $1,255,384 in Combined Principal and Interest on Three (3) Housing and Redevelopment Authority Loans to the Commerce Building Phase I and Commerce Building Phase II Projects,
WHEREAS, as a condition of the City and HRA debt forgiveness, PAK agrees to keep the property affordable in accordance with all existing affordability requirements except for six (6) long term homelessness (LTH) units which will be transitioned to a 30% AMI restriction; and
WHEREA...
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