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Resolution Approving Inter Department Loan of an estimated $1,528,736 and Grant of an estimated $750,182 from the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota to the City of Saint Paul Department of Public Works for the Upgrade of the Riverview Sanitary Sewer Lift Station and Authorizing Execution of Restated and Combined Record of Inter Department Loan and Grant, District 3, Ward 2
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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 HRA and the City of Saint Paul Department of Public Works (“Public Works”) executed a West Side Flats Sanitary Sewer Study Record of Inter Department Loan on August 18, 2015 (“Sanitary Sewer Study Record”) whereby the HRA loaned Public Works the sum of $44,602 to study and provide initial design recommendations for the Enhanced Lift Station, as defined below, (“Study Loan”) with respect to the study area that lay within the Riverfront Redevelopment Project Area in Saint Paul, Minnesota (“Project Area”); and
WHEREAS, the HRA and Public Works executed a First Amendment to the Sanitary Sewer Study Record on January 24, 2017; and
WHEREAS, the HRA and Public Works executed a record of inter department loan on November 30, 2016 (“Riverview Lift Station Renovation Design Record”) whereby the HRA loaned Public Works the sum of $168,780 (“Construction Design Loan”) for the purpose of completing construction and engineering documents for the upgrades to the Riverview sanitary sewer lift station (“Enhanced Lift Station”) that would serve new housing and commercial development in the Project Area; and
WHEREAS, now that the study and design of the Enhanced Lift Station is completed, staff is recommending that additional TIF funds of $2,278,918 (“New Monies”) be used to pay costs for constructing the Enhanced Lift Station, bringing the total funds to $2,492,300 (“Combined Funds”), and that an estimated $1,528,736 of the New Monies would be advanced as a loan (“New Monies Loan”) and an estimated $750,182 be advanced as a grant (“New Monies Grant”) and that a restated and combined record (“Restated and Combined Record”) be executed that would combine all sources of funds for the study, design, construction and upgrade of the Enhanced Lift Station into one document; and
WHEREAS repayment of the New Monies Loan together with the Study Loan and Construction Design Loan will come solely from assessments to be paid by the benefitting property owners once the upgrade is completed and the Saint Paul City Council takes final action to make the assessment against the properties; and
WHEREAS, by this Resolution the HRA Board approves the New Monies and authorizes the execution of the Restated and Combined Record and finds a public purpose for the actions being taken for the Enhanced Lift Station.
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. The HRA Board of Commissioners hereby approves the New Monies that consist of the New Monies Loan and New Monies Grant and the execution of the Restated and Combined Record.
2. The HRA Executive Director, staff and legal counsel for the HRA are directed and authorized to take all actions necessary to implement this Resolution. The HRA’s Executive Director is authorized to execute the Restated and Combined Record and any other documents and instruments in connection with this Resolution.