Title
Resolution recommending approval of funding a loan of $7,108,636 from American Rescue Plan Act (SLFRF) funds, authorizing tax increment financing spending plan authority and approving a tax increment financing loan from unobligated increment in the amount of $684,569, and amending the HRA budget to develop the multi-family housing project at 892 East 7th Street (“Project”); District 4, Ward 6
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act, and said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community; and
WHEREAS, Minnesota Statutes, Section 469.176, subdivision 4n (“Subd. 4n”) authorizes the HRA to spend available tax increment from any existing tax increment financing district (“Available TIF”), notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist:
(1) Such assistance will create or retain jobs in the State of Minnesota (the “State”), including construction jobs;
(2) Construction commences before December 31, 2025;
(3) The construction would not have commenced before December 31, 2025 without the assistance;
(4) Available TIF under the spending plan is spent by December 31, 2025; and
(5) The City Council (the “Council”) of the City of Saint Paul, Minnesota (the “City”) approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the HRA to take such actions; and
WHEREAS, the HRA and the Council have heretofore adopted a spending plan (the “Spending Plan”) pursuant Subd. 4n, which authorizes the use of Available TIF to provide improvements, loans or assistance for private development that satisfies the criteria listed above and as further described in the Spending Plan; and
WHEREAS, the Spending Plan expressly authorizes Available TIF assistance to be transferred to a project that advances private development of multi-family affordable housing and mixed-use properties and creation of jobs (including construction) and the HRA staff has determined the Project qualifies to receive Available TIF; and
WHEREAS, the City of Saint Paul issued a 30% AMI Deeply Affordable Housing Program - Fall 2022 Request for Proposals; and
WHEREAS, Project for Pride in Living, Inc. or its affiliated entity, PPL East 7th Community Limited Partnership, a Minnesota limited partnership (the “Developer”), submitted a proposal to construct an approximately 60-unit multifamily rental housing development and functionally related facilities (the “Proposal”) at 892 East 7th Street, Saint Paul, Minnesota.
WHEREAS, the Developer has requested financing of $7,108,636 in American Rescue Plan Act funding from the Coronavirus State and Local Fiscal Recovery Fund (“SLFRF”) and, in addition, has requested $684,569 in spending plan tax increment financing funding to complete improvements to the Project and staff has identified the sources and terms for this financing in the accompanying staff report (collectively, the “Improvement Financing”); and
WHEREAS, under Resolution No. 24-1152 the City Council for the City of Saint Paul is expected to authorize the transfer of $7,108,636 from the ARPA 30% AMI Deeply Affordable Housing holding account to a project-specific account to finance a portion of the Project to be constructed by the Developer; and
WHEREAS, by this Resolution, the HRA finds a public purpose for the issuance of the Improvement Financing under the Developer’s Proposal because it will increase the tax base in the City, stimulate the development of decent, safe, and sanitary housing, and serve as an impetus for further redevelopment, and further, the HRA finds that the Project meets all conditions of Subd. 4n because it will consist of private development on privately owned land for the development of housing of all types; consists of substantial construction or rehabilitation of buildings; will create and retain approximately 127 construction jobs in Minnesota; will commence construction prior to December 31, 2025; would not have commenced prior to December 31, 2025 except for the use of Available TIF; and the Available TIF for this Project will be spent under the Spending Plan by December 31, 2025.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “Board”), as follows:
1. Based upon HRA findings set forth above, which the Board hereby ratifies and adopts, the Board approves and authorizes the issuance of a loan to Developer (or its affiliated entity) of $684,569 in Available TIF funds to develop the Project, and authorizes the preparation and execution of all necessary agreements for such financing.
2. The Board recommends approval and authorizes the issuance of a loan to Developer (or its affiliated entity) of $7,108,636 in American Rescue Plan Act SLFRF funds to develop the Project, and authorizes the preparation and execution of all necessary agreements for such financing under the terms of a loan agreement (and other documents) that contain all appropriate SLFRF and other compliance obligations.
3. The review and acceptance of the Proposal and the making of the Improvement Financing is hereby ratified, confirmed, and approved.
4. The Board hereby approves the HRA budget amendment as set forth in the attached Financial Analysis.
5. The HRA Executive Director, staff, and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution, including finalizing all documents and agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office
6. the proper HRA official(s) are hereby approved and authorized to execute any and all documents in connection with this Resolution, subject to approval by the City Attorney’s Office. Further, subject to the City Attorney’s Office, the Board empowers and authorizes the Executive Director of the HRA to execute all said documents and instruments, which shall be sufficient to bind the HRA to any legal obligations therein.
7. 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 HRA.