Title
Approving and authorizing the seventh amendment to promissory notes, loan agreements and mortgages with Frogtown Entrepreneur Center, LLC and subordination of mortgages to Twin Cities Community Land Bank, Ward 1, District 7.
Body
WHEREAS, in 1997 the City of Saint Paul ("City"), through its STAR program, entered into a STAR loan ("Original Loan") in the amount of $154,500.00 with Frogtown Entrepreneur Center, LLC ("Frogtown") to provide financing to acquire and renovate 501 N. Dale Street to establish the Frogtown Entrepreneur Center, a business incubator facility ("Facility"); and
WHEREAS, Frogtown also acquired and renovated 625 University Avenue and combined it with 501 N. Dale Street (the "Original Properties") to operate the Facility whose target is minority, women owned and small businesses; and
WHEREAS, to support the operation of the Facility the City has also made two other loans to Frogtown in the amounts of $86,500 and $124,000 ("Supporting Loans")(the Original Loan and Supporting Loans are collectively referred to as the "FEC Loans"); and
WHEREAS, the FEC Loans are supported by notes, loan agreements and mortgages; and
WHEREAS, due to various circumstances the FEC Loans have been extended and modified six times and the City has executed six amendments to the FEC Loans; and
WHEREAS, Frogtown desires to acquire two adjacent properties located at 629-631 and 633 University Ave ("Adjacent Properties") and combine them with the Original Properties owned by Frogtown for the purpose of redevelopment at this transit corridor station site but Frogtown does not have the financial resources to close on the purchase of the Adjacent Properties at this time; and
WHEREAS, Twin Cities Community Land Bank ("Land Bank") is willing to provide financing to facilitate the acquisition of the Adjacent Properties and the proposed structure of the transaction is as follows: Frogtown (through its aff...
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