Title
Approving Loan Modifications for the Model Cities BROWNstone Commercial Project, located at 837 University Avenue West, including Payment Forgiveness on a STAR Loan and a CDBG Loan (District 7, Ward 1).
Body
WHEREAS, the City of Saint Paul (the “City”) is a home rule charter city established and existing under the laws of the State of Minnesota; and
WHEREAS, in 2016 the City and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") provided acquisition and construction financing for the Model Cities BROWNstone building (the “BROWNstone”) at 837 / 839 University Avenue West, a four-story mixed-use building with 35 units of affordable rental housing units affordable to households earning 50% to 60% Area Median Income (AMI) and with 20,580 square feet of commercial/retail space;
WHEREAS, the City Council adopted RES PH 16-126 authorizing the execution of a Development Agreement and loan documents to advance the development of the commercial portion of the BROWNstone, CIC Unit 2 (the “Commercial Project”) (the HRA Board adopted RES 16-652 authorizing an overall financing plan); and
WHEREAS, the BROWNstone project is subdivided into two CIC condominium units, where Unit 2 is comprised of the Commercial Project and is owned by Model Cities BROWNstone Commercial, LLC (the “Borrower”), whose sole member is Model Cities Properties, a Minnesota non-profit corporation, an entity that is, in turn, owned by Model Cities of St. Paul, Inc., a Minnesota non-profit corporation (“Model Cities”); and
WHEREAS, in 2003, the HRA Board authorized a resolution accepting $2,500,000 from the Saint Paul and Minnesota Foundation, a Minnesota non-profit corporation (the “Foundation”) and executed a Loan Agreement (the “Foundation Loan”), requiring the HRA to provide a $500,000 security pledge obligation, which obligation is on-going; and
WHEREAS, in 2016 the HRA loaned to the Borrower $2,300,000.00 of the Foundation funds to finance the...
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