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Subordination of a City 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, 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 Sibley Park loan in favor of the City of Saint Paul (the “City”) funded with Metropolitan Council funds referred to as the (“Loan”), and
WHEREAS, the City has the institutional, financial and managerial capacity to manage the Loan; and
WHEREAS, the Developer is requesting that the City subordinate the 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 Loan will be amended to include an annual fixed payment of $15,000 for 15 years; and
WHEREAS, the Project will deepen affordability, and rents will be restricted for thirty (30) years until 2054; and
WHEREAS, the Saint Paul Department of Planning and Economic Development Credit Committee reviewed and approved the subordination and revised loan terms; and
WHEREAS, the City of Saint Paul finds a public purpose for the actions authorized by this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota that:
1. The City Council hereby approves and authorizes the subordination of the Loan to the new primary lender and existing MHFA loans of $2,100,000 for the Project and amendment of the $500,000 Loan note, all on terms consistent with those described in the staff report.
2. The Director of the Saint Paul Department of Planning and Economic Development (“PED”) is authorized and directed to execute all documents and instruments necessary to effectu...
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