Title
Resolution Approving Subordination For Kendall Land Company, LLC, 840 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 2012, the HRA made a CDBG construction loan of $1,305,000 (“CDBG Loan”) to Kendall Land Company, LLC (the “Company”), secured by a third-position mortgage against a two-story commercial building located at 840 Payne Avenue, St. Paul, Minnesota (“Project”); and
WHEREAS, in 2012, the HRA made a land loan of $380,000 (“HRA Loan”) to Kendall Land Company, LLC (the “Company”), secured by a fourth-position mortgage against 840 Payne Avenue, St. Paul, Minnesota (“Project”); and
WHEREAS, the Company has continuously operated the Project since 2013; and
WHEREAS, the Company is proposing to obtain a first-mortgage loan from Peoples Bank to refinance debt on the Project, including senior debt and business debt with a current balance of $699,560.00; and
WHEREAS, as part of the refinancing transaction, the Company is requ...
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