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Approving and authorizing modifications of two STAR loans made to Circus of the Star, a Minnesota nonprofit corporation (“Borrower”).
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WHEREAS, Borrower is a Minnesota nonprofit organization that conducts circus training programs for youth and holds performances for the public; and
WHEREAS, Borrower currently leases a site from the City of Saint Paul’s Department of Parks and Recreation that is located at 1270 Montreal Avenue, Saint Paul, through a land lease agreement executed in 1997 (the “Land Lease”); and
WHEREAS, the Land Lease included options to renew, which Borrower has exercised, and as a result, the Land Lease was amended in 2006, 2011, and 2021, when the term of the Land Lease was extended through December 31, 2031; and
WHEREAS, in September 2000, the Borrower received a Neighborhood STAR Loan in the amount of $250,000 (“Neighborhood STAR Loan”) and in April 2001, the Borrower received a Cultural STAR loan in the amount of $85,000 (“Cultural STAR Loan”) (collectively the “STAR Loans”), to construct the Circus Juventas facility at 1270 Montreal Avenue, Saint Paul (the “Project”); and
WHEREAS, the initial term for each of the STAR Loans matured after five years and included equal monthly payments amortized on a 20-year amortization basis at an annual interest rate of 6.5%, with a balloon payment due on the end of the initial term; and
WHEREAS, each of the STAR Loans have been amended and extended, with extensions corresponding to extensions of the Land Lease, under a total of six loan amendments, with the current term of the Cultural STAR Loan expiring on October 31, 2021 and the current term of the Neighborhood STAR loan expiring on October 31, 2021.
WHEREAS, since Borrower’s current term of the Land Lease has been extended to October 31, 2031, Borrower desires that the maturity dates of both the Neighborhood STAR Loan and Cultural STAR Loan also be extended through October 31, 2031; and
WHEREAS, due to the Covid pandemi...
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