Title
Resolution approving the re-subordination and extension of the terms and affordability periods of five HRA/City deferred loans associated with Minnesota Vistas and Minnesota Place projects due to refinancing of first mortgages, District 17, 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 Chapter 469 of the Minnesota Statutes, Housing and Redevelopment Act ("Act") and by authority of said Act engages in activities relating to: a) housing projects and development; b) removal and prevention of the spread of conditions of blight or deteriorations; c) bringing substandard buildings and improvements into compliance with public standards; d) disposition of land for private development; 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
WHEREAS, in 2010, the Minnesota Building, a 13-story former commercial building located at the southwest corner of Cedar and 4th Streets, was purchased by Sand Companies, Inc.(“Owners”) and converted to affordable rental housing (the “Project”);
WHEREAS, due to difficulties in obtaining financing, the Project was divided into two different financing structures, with different ownership entities, called “Minnesota Place, LLC” and “Minnesota Vistas, LLC;” and
WHEREAS, at the time of original financing, there were two unique financing programs established as part of the American Recovery and Reinvestment Act (ARRA) of 2009. These programs were put in to place to help tax credit projects such as the Minnesota Buildi...
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