Title
Resolution Approving and Authorizing Execution of the Development Agreement with Rathskeller Renaissance, LLC for the Schmidt Rathskeller Building Project, and Termination of Existing Agreement with West 7th/Fort Road Federation, Inc.; District 9, Ward 2
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, on April 5, 2011 the HRA and the West 7th/Fort Road Federation, Inc. (“Federation”) executed a development and loan agreement (“Federation Agreement”) for the development of a portion of the Schmidt Brewery site as more fully described in the Federation Agreement, less that portion thereof subsequently sold by the Federation (“Development Property”); and
WHEREAS, as part of the Federation Agreement, the Federation executed and delivered to the HRA a promissory note in the sum of $1,895,715.00 (“Note”), a mortgage to secure the repayment of the Note (“Mortgage”), and an additional loan of $15,000.00 from the HRA; and
WHEREAS, the Federation was awarded Tax Incremen...
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