Title
Resolution Approving Subordination For Old Swedish Bank, LLC, 961-963-965 Payne Avenue, District 5, Ward 6.
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 2007, the HRA made a loan of $230,000 (“HRA Loan”) to Old Swedish Bank, LLC (the “Company”), secured by a first-position mortgage against a two-story commercial building located at 961-963-965 Payne Avenue, St. Paul, Minnesota (“Project”); and
WHEREAS, the Company has continuously operated the Project since 2001; and
WHEREAS, the Company is proposing to obtain a first-mortgage loan from Sunrise Bank to refinance most of the junior debt on the Project, including but not limited to junior debt with a current balance of $34,373.00 owed to East Side Neighborhood Development Company, Inc., which is a controlling member of the Company (the “ESNDC Debt”); and
WHEREAS, as part of the refinancing transaction, the Company is requesting the HRA agree to a subordinate the HRA Loan to the refinanced junior deb...
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