Title
Approving a subordination of a $2,602,255 Community Development Block Grant (CDBG) / Community Development Block Grant Covid (CDBG-CV) loan to Keystone Community Services, 1790-1800 University Avenue West (District 13, Ward 4).
Body
WHEREAS, the City of Saint Paul (“City”) is an entitlement grantee that receives direct funding from the United States Department of Housing and Urban Development (“HUD”) for the Community Development Block Grant Program (the “CDBG program award”); and
WHEREAS, on March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which authorized a variety of programs to address issues related to the COVID-19 public health emergency; and
WHEREAS, the City, as a CDBG program award entitlement grantee, was awarded special allocations of CDBG-CV funds through the CARES Act to prevent, prepare for, and respond to the COVID-19 public health emergency (the “CDBG-CV program award”)
WHEREAS, Keystone Community Services acquired two buildings located at 1790 and 1800 University Ave W (the “Property”) for the purpose of redeveloping them into a consolidated, transit-accessible food center (the “Project”); and
WHEREAS, the Project will create greater efficiencies and increase service to the community and in particular to low- and moderate- income persons; and
WHEREAS, on October 20, 2021, City Council approved the transfer of $902,255 in CDBG-CV award funds via RES 21-1438 for the Project; and
WHEREAS, on November 9, 2022, the Saint Paul Housing and Redevelopment Authority (“HRA”) recommended and authorized the approval of financing a $1,260,214 CDBG loan and a $439,786 CDBG-CV loan for the Project via RES 22-1728; and
WHEREAS, on November 16, 2022, City Council authorized the transfer of $1,260,214 in CDBG and $439,786 in CDBG-CV funds to the Project; and
WHEREAS, on January 25, 2023, a development agreement for $902,255 and $439,786 of CDBG-CV and $1,260,214 of CDBG was executed, compr...
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