90-2026 ORIG�INAL `�
� � ' Council File # �Q -070o��p
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Green Sheet � � �
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented By
Referred To Committee: Date
CITY USE OF ASSIGNMENTS OF RENT AS ADDITIONAL SECURITY
WHEREAS, the City of Saint Paul is engaged in a variety of programs to promote
economic development and preserve affordable housing; and
WHEREAS, the City has supported these programs by granting loans secured by
mortgages to eligible projects; and
WHEREAS, fluctuaCing financial and economic conditions may affect the City's
loan portfolio and the security supporting such loans; and
WHEREAS, the City has an obligation to prudently manage its loan portfolio and
secure the public's interest in faltering or troubled loan projects; and
WHEREAS, additionjal security is available in the right to seek appointments of
receivers to admi;nister property and prevent waste and for assignments of
rents and profits; and
WHEREAS, Minnesota Statutes 559.17 and 576.01 currently limit such
. appointments and assignments to projects in which the original mortgage
principal is $500,000 or more; and
WHEREAS, the Minnesota Legislature has seen fit to waive this limitation in
the public's interest for loans extended under the authority of the Minnesota
Housing Finance Agency, Minn. Stats. 462A.05, Subd. 32; and
WHEREAS, loans made by the City of Saint Paul and its Housing and
Redevelopment Authority are likewise in the public's interest and are similar '
in nature and intent to the loans of the Minnesota Housing Finance Agency;
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BE IT RESOLVED at City lo y the Minn ota Legislature so tha the the
Housing and edewelopmen Authority strengthe ts secur" y inter ts by
obtainin he appoint nt of recei rs and the ssignment rents d pro ts
under nnesota la ithout bei subject to he limita ons rei ng to he
min wn amount o the origina principal ance of t mortga as co ained
Minnesota atutes 559.17, Subd. 2 a 576.01, S d. 2.
BE IT RESOLUED, That the City of Saint Paul work with the Minnesota
Legislature to stren then the securit interests of the Housing and
Redevelopment Authority HRA by allowing the HRA to obtain �e�l��-
�l�e-P9��ese�a-fie��s�a�t��e-ee-�l�a�-��e-E�et3s���-Ree7e�e�epxte��-�4���te����-
�a�-s��e��e�-��s-seet����-���e�es�s-bp-el�a���r�-the appointment
of receivers and the assignment of rents and profits under Minnesota
law without being subject to the limitations relating to the minimum
amount of the original principal balance of the mortgage as contained
in Minnesata Statutes 559.17, Subd. 2 and 576.01, Subd. 2.
yYg�� Navs Absent Requested by Department of:
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Adopted by Council: Date
�Q�/ � � �gga Fa�, Approved by City Attorney
Adoption ertified by Council Secretary By;
By' Approved by Mayor for Submission to
� Council
Approved by Mayors D�te J Q
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By: G By�
PUBL{SHED J��� 81990
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DEPARTMENT/OFFICE/OOUNqL DATE INRIATEO
PED GREEN SHEET No. 3���5�
c�T��T�RSON��E 3357 �DEPARTMENT DIRECTOR �CRY COUNpL
Cynthia Seelha�e 4736 Gar Peltie �� ❑�ATTORNEY �CITY CLERK
MU8T BE ON COUNqI AOENDA BY T� ROU7INO �BUDOET DIRECTOR �FlN.3 MOT.SERVICEB DIR.
� �MAYOR(OR ASSISTANn �
TOTAL#�OF SIGNATURE P GES (CLIP ALL LOCATIONS FOR SIGNATUR�
��uesrEO:
Council Reso ution for Legislative Program: Use of Receivership/Assignments
RENMMENDA710NS:MI+►�e(N a 1�(R) COUNGL COMM�I REPORT OP7IONAL
_PUINNINO WMMISSION CIVIL ERVICE COMMISSION ANALVBT PHONE NO.
_CIB COMMITTEE
COMMENTB:
_STAFF
_DISTRICi OOURT
BUPPORTB WHICH COUNdI�JE VE?
INITIATII�Ni PROBLEM.18SUE,OP NITY ,What,When,Where,Why):
City/HRA needs to s cure its interests in property which receives City/HRA funding.
The use of rec iver and assignment of rents are useful collateral security which
are currently limit d by statute.
ADVANTA(iE3 IF APPROVED:
City will be a le t better protect its security interests in loans granted.
DISADVANTAQE8 IF APPROVED:
018ADVANTAOEB IF NOT APPROVED:
City's secured 'nter st will be limited to mortgage on the property itself.
TOTAL AMOUNT OF TRANSACT COST/REVENUE BUDOETED(qRCLE ON� YE8 NO
FUNDING SOURCE ACTIVITY NUMBER
FlNANqAL INfORMATION:(EXPWI�
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Item #49, Council File #90-2015:
COMFLETELY DELETE FINAL RESOLVED.
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Item #60, Counicil File #90-2026:
�� RESOLVED AMENDED TO READ AS FOLLOW5:
/ BE I� RESOLVED, that the City of Saint Paul work with
� the innesota Le islature to stren then the securi
inte�ests of the Housing and Redevelopment Authority
1HRA� by allowing the HRA to obtain
the
appo�ntment of receivers and the assignment of rents
and �rofits under Minnesota law without being subjec
to the limitations relating to the minimum amount o
the mriginal principal balance of the mortgage as
ont�ined in Minnesota Statutes 559. 17, Subd. and
5 1, Subd. 2 .
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Members:
Bob Long, Chair
Tom Dimond
Paula Maccabee
COMMtTTEE REPORT ,
II�TERGOVERNMENTAL RELATIONS COMMITTEE
SEPTEMBER 28, 1990
1. GO Bonds for hous�ing rehabilitation
SENT TO COUNCIL WITHOUT RECOMMENDATION.
2. Receivership law!
SENT TO COUNCIL WITHOUT RECOMMENDATION.
3. Vacant/Nazardous building law.
SENT TO COUNCIL qS AMENDED WITHOUT RECOMMENDATION.
4. Replacement Hous�ng.
SENT TO COUWCIL WITHOUT RECOMMENDATION.
5. Dislocated worke�*s.
SENT TO COUMICIL AS AMENDED WITHOUT RECOMMENDATION.
6. STRIDE/dayc�re.
SENT TO COUMCIL I�S AMENDED WITHOUT RECOMMENDATION.
7. Funding for stormwater requirements.
SENT TO COU�ICIL AS AMENDED WITHOUT RECOMMENDATION.
8. Funding for EIS for AYD Mill Road
SENT TO COU�ICIL �1S AMENDED WITHOUT RECOMMENDATION.
9. Health care� acceSs.
SENT TO COUNCIL �1S AMENDED WITHOUT RECOMMENDATION.
10. Funding for STD �linics.
SENT TO COUNCIL �1S AMENDED WITHOUT RECOMMENDATION.
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