Title
Resolution recommending approval of a $64,046 Community Development Block Grant (“CDBG”) loan to V&I Best Steak House, LLC for a restaurant code repair project at 1676 White Bear Ave, District 2, 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, the operators of V&I Best Steak House, LLC are proposing to make improvements to their restaurant property located at 1676 White Bear Avenue (“Property”) to bring their kitchen into code compliance (the “Project”), as described in the staff report submitted to the HRA Board with this resolution (the “Board Report”); and
WHEREAS, the HRA Board finds there is a proper public purpose for providing the loan to V&I Best Steak House, LLC for the Project, including to retain jobs, support investment in low-to-moderate income areas, and support the tax base; and
WHEREAS, the completion of the Project by V&I Best Steak House, LLC will meet a HUD national objective, as identified by the accompanying Board Report, making it eligible to use CDBG funds, and V&I Best Steak House, LLC has agreed to enter into a loan agreement with the City of Saint Paul governing the use of such funds; and
WHEREAS, on August 24, 2022, the HRA Board adopted Resolution 22-1323 to recommend approval of a $62,386 CDBG loan for V&I Best Steak House, LLC at the same address of 1676 White Bear Ave for a similar project, but because this project never began due to subsequent fire damage, the resolution will be rescinded.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. HRA Resolution 22-1323, adopted on August 24, 2022, and concerning approval of a $62,386 CDBG loan for V&I Best Steak House, LLC, is hereby rescinded.
2. The HRA Board of Commissioners hereby recommends approval of the making of a $64,046 loan to V&I Best Steak House, LLC (or any affiliate that owns or controls the Property) using CDBG funds for the completion of the Project under the terms of a loan agreement that contains appropriate CDBG compliance obligations.
3. The Executive Director of the HRA and PED staff are hereby authorized and directed to negotiate the terms and conditions of the loan agreement, consistent with the terms of these resolutions and the accompanying Board Report, and, upon approval by the City Council, the appropriate City of Saint Paul officials are empowered to execute that loan agreement.
4. The HRA and PED staff and the HRA Executive Director are further authorized and directed to take all actions necessary to implement this resolution.
5. that this Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until approved by the City Council and all said documents are executed by the appropriate official(s) of the City of Saint Paul.