Title
Authorization to Designate St. Paul Euclid, LLC, as Tentative Developer of 234-238 Bates Avenue, District 4, Ward 7
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, HRA staff received a proposal for redevelopment of a HRA-owned historic 12-unit property located at 234-238 Bates Avenue (the “Property”) from St. Paul Euclid, LLC; and
WHEREAS, according to the HRA’s disposition policy, on March 24, 2016, the HRA staff through the Early Notification System indicated that the HRA staff has received an application to purchase and rehabilitation the Property; and
WHEREAS, after more than 45 days of posting the notice, one additional proposal was received by HRA staff; and
WHEREAS, after reviewing the proposal received, staff recommends moving forward with the proposal of St. Paul Euclid, LLC to rehabilitate and renovate the existing building at the Property and to preserve it as a 12-unit multi-family rental housing property (the “Project”); and
WHEREAS, of the proposals received, the Project proposed by St. Paul Euclid, LLC best accomplishes the objectives and goals of the Policy and best comports with the strategies set forth in the Citywide Comprehensive Plan/Redevelopment Plan now legally in effect in the City of Saint Paul, including particularly those related to preserving and promoting established neighborhoods, ensuring the availability of affordable housing, and leading historic preservation efforts in the City; and
WHEREAS, the HRA is empowered by law, including Minnesota Statutes chapter 469, to adopt and enforce this Resolution in pursuit of its mandate to engage in appropriate housing and development projects; to remove or prevent the spread of conditions of blight or deterioration; to bring substandard buildings and improvements into compliance with public standards; to dispose of land for private development; and to improve the tax base and the financial stability of the community,
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that St. Paul Euclid, LLC, is designated as Tentative Developer for the Property until February 1, 2017 on the terms and conditions set forth in this Resolution.
BE IT FURTHER RESOLVED that the Tentative Developer shall complete the following tasks, at its expense, before February 1, 2017:
1. Complete and obtain HRA approval for a formal scope of work with architectural/engineering plans and specifications, which shall be suitable for submission to the Department of Safety and Inspections to obtain the proper building permits, shall incorporate Green/Sustainable Development guidelines, and shall include a site plan, elevations, exterior treatments/materials, and interior schematics.
2. Submit evidence of availability of construction financing for review by HRA staff for acceptability.
3. Finalize a detailed development budget and business plan for approval by HRA staff.
4. Receive all approvals for zoning, licenses and any other required City or State approval, including Heritage Preservation Commission approval, for the Project.
5. Negotiate final terms and conditions of a development agreement, which will include all compliance requirements, details of the bidding process, and a sworn construction cost statement from the selected contractor for the Project.
BE IT FURTHER RESOLVED that the terms and conditions of a development agreement between the HRA and the Tentative Developer shall include the following restrictions:
1. All pre-development costs are the sole responsibility of the Tentative Developer.
2. The Tentative Developer must work with affected community groups.
3. The property will be sold “as is.”
BE IT FURTHER RESOLVED that if the Tentative Developer does not timely complete the specified tasks or otherwise abide by the terms of this Resolution, its Tentative Developer Status shall terminate without further action by this Board upon notification of termination by the HRA Executive Director.