Title
Approval of the January 23, 2013 HRA meeting minutes.
Body
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Lantry, Stark, Thune, Tolbert
CONSENT
1. Approval of the January 9, 2013 HRA meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 7 Nays - 0
2. Resolution authorizing the Issuance of Revenue Bonds for Saint Paul Conservatory for Performing Artists Project under Minnesota Statutes, Sections 469.152 through 469.1651 and Approving Related Documents, District 17, Ward 2
Commissioner Lantry moved approval. Approved as set forth in resolution RES 13-140
VOTE: Yeas - 7 Nays - 0
3. Approval and Authorization to Set Aside Funds for 940 Selby Avenue Taxes/Assessments and Holding Costs, District 8, Ward 1
Commissioner Lantry pulled this item from the Consent Agenda for further discussion.
Commissioner Lantry stated that she's glad we are including holding costs now (and a budget source) for a property the HRA is acquiring, but asked for clarification on the $50,000 debt owed to the Saint Paul Parks Department.
Ms. Cecile Bedor, Executive Director for the HRA, stated that the Saint Paul Parks Department is owed $50,000 by Selby Area CDC. In exchange for a deed to the property at 940 Selby, the HRA will essentially assume the $50,000 debt; the HRA will pay $50,000 to Parks from the Victoria Park account. This will be booked as a loan, which will be repaid to the Victoria Park fund, if possible, upon the sale of the 940 Selby property. Ms. Bedor explained that this action was approved by the HRA Board at its last meeting; however staff made an error and did not include holdings costs in the budget action. This action today essentially increases the loan from the Victoria Park account to cover anticipated, albeit worst case, holding costs. Ms. Bedor noted that while the holding cost budget covers a 10-year period, it is certainly hoped that market conditions will lead to redevelopment in a much shorter time period.
Commissioner Lantry expressed concern that the Board authorizes the purchase of properties each year, and then forgets about them, creating significant holding costs.
Commissioner Lantry explained that she believes it important to include holding costs in all acquisitions, and believes staff should be aggressive in marketing/developing all sites to get them off the HRA books and back on the tax rolls. Commissioner Brendmoen agreed.
Commissioner Carter stated that he definitely understands the concern about hanging on to the property for a long period of time, and noted than a long hold period is not the intent. Rather, staff will combine this lot with an adjacent lot already owned by the HRA to create a much more developable parcel.
Commissioner Bostrom stated that holding land/land assembly is an important function as well. He noted that because the City had held a vacant lot (for a long time) where an old tent and canvas building was, we were able to save and move an important hardware store to this location; the hardware store was being taken out to make room for another important library and recreation center. Commissioner Bostrom stated that without having the vacant lot available, the library/rec center development would probably not have happened.
Ms. Bedor stated that a work session is being scheduled for the end of March to address the issue of land disposition, and further discuss how to address continuing requests of HRA staff to acquire property. She noted that staff is in the process of looking at every piece of property the HRA owns, completing an analysis to determine a disposition recommendation. This work was precipitated by the increasing holding costs of HRA-owned property, and productive conversations with Ramsey County staff on tax forfeit properties, and HRA plans for ensuring properties acquired via tax forfeit are put back on the tax rolls as quickly as possible.
Ms. Bedor explained that the situation with this property (940 Selby) is unique, and that the HRA is simply helping the City's Finance and Parks department with a budget issue, with the benefit to the neighborhood of a now larger, and more marketable, redevelopment site. Ms. Bedor reiterated her hope that the property can be redeveloped in the relatively near future.
Commissioner Carter moved approval. Approved as set forth in resolution RES 13-139
VOTE: Yeas - 7 Nays - 0
4. Resolution Authorizing HRA Participation in the Minnesota Housing Finance Agency Community Revitalization Fund Program for the Rehab Support Program, Targeted Blocks of Ward 1 and Ward 5
Commissioner Lantry moved approval. Approved as set forth in resolution RES 13-132
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARING
5. Resolution Authorizing and Approving 1) The Sale of HRA Parcel to Covenant Capital, LLC for the Purchase Price of $50,000; 2) Approval of HRA Land Sale Loan of $50,000 to Assist in the Purchase of the Property; 3) Approval of a Development Agreement with Covenant Capital, LLC; 4) Authorizing the Executive Director to Finalize the Loan and Land Sale Documents for Execution by the Appropriate HRA Officials in Connection with the 699 East 7th Street Project, District 4, Ward 7
Chair Thune announced the public hearing. There being no testimony Commissioner Lantry moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 13-26
VOTE: Yeas - 7 Nays - 0
Mr. Scott Zak and Mr. Benjamin Hosfield from Covenant Capital, LLC came forward and stated that rehabilitation of the project would begin immediately.
6. Approval of Budget Amendment to Transfer Funds for Central Corridor Ready for Rail Small Business Loan Program.
Commissioner Carter moved approval. Approved as set forth in resolution RES 13-155
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
Commissioner Stark moved adjournment. The HRA meeting was adjourned.