Title
Authorizing the City to transfer $3,350,000 of American Rescue Plan Act funds from the 30% AMI Deeply Affordable Housing account to a specific account, to approve a loan in the amount of $3,350,000 of American Rescue Plan Act funds, for the Kimball Court housing project at 545 Snelling Avenue North. (District 11, Ward 4).
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WHEREAS, since the first case of coronavirus disease 2019 (COVID-19) was discovered in the United States, impacting every part of life, the public health and economic impacts of the pandemic have fallen most severely on communities and populations that were disadvantaged before it began; and
WHEREAS, on March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President of the United States and established the Coronavirus State and Local Fiscal Recovery Fund (SLFRF), intended to provide support to local governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in communities, residents, and businesses; and
WHEREAS, the SLFRF fund disbursed by the U.S. Department of Treasury includes approximately $45.8 billion to metropolitan cities, of which $166,641,623 is intended for the City of Saint Paul; and
WHEREAS, according to the ARPA guidance, the SLFRF funds may be used for the following expenses (among others) and must be obligated by December 31, 2024 and spent by December 31, 2026:
1) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality and specifically including the development of affordable housing);
2) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
3) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
4) To make necessary investments in water, sewer, or broadband infrastructure; and
WHEREAS, on December 16, 2021, via RES 21-1794, the City allocated $20 Million of its ARPA SLFRF funds to its department of Planning and Economic Development for the provision of deeply affordable housing as a response to the negative economic impacts suffered from the COVID-19 public health emergency; and
WHEREAS, on December 7, 2022, via RES 22-1868, the City allocated an additional $17.5 Million of its ARPA SLFRF to its department of Planning and Economic Development for the provision of deeply affordable housing as a response to the negative economic impacts suffered from the COVID-19 public health emergency; and
WHEREAS, through a formal solicitation and review process for the 30% AMI Deeply Affordable Housing funds, the City identified that the Kimball Court project is eligible for a total allocation of $3,350,000 in SLFRF funds.
WHEREAS, the Kimball Court project is owned by 545 Snelling LLC, of which Beacon Interfaith Housing Collaborative is the sole member to this entity (“Developer”);
WHEREAS, pursuant to Section 10.07.4 of the City Charter, the Mayor recommends the transfer of unencumbered ARPA SLFRF 30% AMI Deeply Affordable Housing appropriations as outlined in the attached financial analysis, which is consistent with the City’s plan to shift ARPA funds to project-specific accounts for spending;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saint Paul does hereby:
1. Authorize the City to transfer $3,350,000 from the ARPA 30% AMI Deeply Affordable Housing holding account to a project-specific account as outlined in the attached financial analysis to finance a portion of the affordable housing development referenced above.
2. Authorize the City to loan $3,350,000 in ARPA SLFRF funds to Developer for the Kimball Court housing project at 545 Snelling Avenue N.
3. Authorize the appropriate City officials to execute agreements and such other documents necessary to carry out this Resolution.
4. Authorize City staff to take all other actions necessary to carry out this Resolution.
5. This Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until said documents are executed by the appropriate official(s) of the City.