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Approving subordination of mortgage for Uni-Lex Partners.
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WHEREAS, On August 17, 2005 the City of Saint Paul, a municipal corporation, (the ”City”) entered into a City of Saint Paul STAR loan agreement and promissory note in the amount of $150,000 (the “City Loan”) with Uni-Lex Partners, LLC, a Minnesota limited liability company, and James K Vang, an individual person, and Linda Do Pham, an individual person, (collectively the “Borrower”) and a STAR Mortgage (the “City Mortgage”) with Uni-Lex Partners, LLC, a Minnesota limited liability company (“Mortgagor) to secure the City Loan; and
WHEREAS, the City Loan was part of a larger redevelopment project (the “Project”) located at the northwest corner of University and Lexington which consisted of acquisition of additional lots, demolition of the former gas station and new construction of a restaurant facility owned by Uni-Lex Partners and leased to Hoa Bien Restaurant; and
WHEREAS, the primary lender on the Project, BankCherokee issued its loan in July 2012 in the amount of $800,000 (“Bank Loan”) and the City subordinated the City Loan to the Bank Loan and the Bank’s mortgage (“Bank Mortgage”) on the Project; and
WHEREAS, the Borrower is attempting to increase the Bank Loan in the amount of $130,000 (”Proposed Loan”) which will be secured by an amended Bank Mortgage and has requested the City to subordinate its City Mortgage to the amended Bank Loan; and
WHEREAS, the Borrower will be making an additional capital injection of $50,000 and a new tenant, US Investigations Services ,Inc. will by making a $200,000 capital injection for tenant improvements into the Project; and
WHEREAS, the payments are current on the City loan and the balance is $117,250;
WHEREAS, the City’s security position will not be adversely impacted by the proposed new financing; and
WHEREAS, the Credit Committee reviewed and recommended approval of this subordination on October 14, 2013; and
NOW, THEREFORE, be it resolved by...
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