Title
Resolution Approving and Authorizing Execution of a Workout Agreement for a Loan Made to 4DJ, LLC, For Property located at 281-285 N. Snelling, Disctrict 13, Ward 4.
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the "Act"); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) improving the tax base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minn Stat Section 469.002, Subd. 14; and
WHEREAS, in June 2003 the HRA, the US Small Business Administration ("SBA") and Liberty State Bank (now Associated Bank) provided financing to 4DJ, LLC ("Borrower") to acquire, renovate and install a new gas pumping operation and car wash at 281-285 N. Snelling, Saint Paul, Minnesota (the "Project"); and
WHEREAS, the HRA's loan was in the amount of $200,000 ("Loan") and was evidenced by a promissory note, mortgage, assignment of rents and leases, fixture financing statement, security agreement and loan agreement executed by Borrower, and personal and corporate guaranties of the owners of the Borrower ("Loan Documents"); and
WHEREAS, the HRA Loan was subordinate to the first mortgage loan made by Associated Bank and the second loan to the SBA; and
WHEREAS, payments ...
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