Title
Resolution Approving and Authorization the Entrance into a Development Agreement, the Approval of a Budget Amendment to Allocate up to $2.2 Million in Project funding, and the Sale and Conveyance of Property at 389 and 425 Maryland Avenue, District 6, Ward 5
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.; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law; 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, 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 Minnesota Statues section 469.002, subd. 14; and
WHEREAS, in 2005 Sparc proposed to purchase the property at 389 and 425 Maryland Avenue West for the purpose of constructing 36 for-sale townhomes and sought financing from the HRA and Greater Metropolitan Housing Corporation (“GMHC”); and
WHEREAS, on August 30, 2005, as lenders for the property acquisition, the HRA and Greater Metropolitan Housing Corporation (“GMHC”) executed a parity agreement to protect their indebtedness; and
WHEREAS, upon Sparc’s default, the HRA took a deed in lieu of foreclosure for the property with the understanding that any sales proceeds would be subject to the parity agreement; and
WHEREAS, as the HRA intends to write down the cost of the land in an effort to minimize the development subsidy, the HRA obtai...
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