Title
Approving and authorizing the execution of the Sibley Park Apartments second amended and restated master subordination agreement and estoppel certificate, District 17, Ward 2.
Body
WHEREAS, the City of Saint Paul, Minnesota (the "City") is a municipal corporation and a participant in grant programs available through the Metropolitan Council (“Met Council”); and
WHEREAS, the City was awarded a grant in the amount of $500,000 from Met Council (“Grant”) to undertake the construction of Sibley Park Apartments (“Project”) located on real property in Saint Paul Mn legally described as Lot 1, Block 1, Sibley Park Apartments (“Property”); and
WHEREAS in November 2000 the City loaned to Sibley Park Limited Partnership (“Partnership”) the amount of the Grant for the Project (“City Loan”); and
WHEREAS, by a Sibley Parks Apartments Amended and Restated Master Subordination Agreement, Modification Agreement and Estoppel Certificate dated May 1, 2013 the City agreed to subordinate the priority of the City Mortgage to two other lenders, and
WHEREAS, the owner of the Partnership desires to sell its Partnership interest to Orbach Affordable Housing Solutions (“Orbach”), an affordable housing preservation focused developer, to preserve the opportunity to pursue tax credits in the future for the Project; and
WHEREAS, Orbach has secured first mortgage financing and has requested re subordination of the City Loan and has requested that the City execute the Sibley Park Apartments Second Amended and Restated Master Subordination Agreement and Estoppel Certificate (“Second Amended Subordination”); and
WHEREAS, the City Loan is deferred with 0% interest and will balloon on April 15, 2042, and these terms will not change when the City Loan is resubordinated; and
WHEREAS, there is a Land Use Regulatory Agreement (“LURA”) in place until 2023, which ensures that the current levels of affordability are maintained; and
WHEREAS, Orbach has been working with the Saint Paul Publi...
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