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Subordination of HRA Loan to New Financing, and Modification of Loan Terms, for the OAHS Sibley TC Limited Liability Limited Partnership, Regarding the Sibley Park and Sibley Court Rehabilitation Project, Located at 211 East 7th Street and 484 Temperance, District 17, Ward 2
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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, Orbach Affordable Housing Solutions (“Developer”) is proposing to recapitalize and rehabilitate the Sibley Park Apartments and Sibley Court Apartments housing project (“Project”); and
WHEREAS, there is an existing $500,000 HRA Sibley Park loan funded with Metropolitan Council funds referred to as the (“HRA Loan”), and
WHEREAS, the Developer is requesting that HRA subordinate the HRA loan to the new financing for the Project, which will be owned by OAHS Sibley TC LLLP; and
WHEREAS, the proposed repayment terms of the HRA Loan will be amended to include an annual fixed payment of $15,000 for 15 years; and
WHEREAS, the...
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