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Authorization to designate F & C Development, Inc., an Indiana corporation (“Flaherty & Collins”) as tentative developer of Central Station Block, Saint Paul, MN, District 17, 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, existing, and operating under the laws of the State of Minnesota pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “HRA Act”); and
WHEREAS, the HRA is empowered by law, including the HRA Act, to adopt and enforce this Resolution in pursuit of its mandate to engage in appropriate housing, development, and redevelopment 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 HRA-owned land for private development; and to improve the tax base and the financial stability of the community; and
WHEREAS, the Metropolitan Council (“Council”) is a public corporation and political subdivision of the State of Minnesota pursuant to the provisions of Minnesota Statutes section 473.123, et seq.; and
WHEREAS, the Council and the HRA each own adjacent real property parcels that are comprised of a combined total of approximately 1.66 acres in the City of Saint Paul, within a block bounded by 5th Street, Minnesota Street, 4th Street and Cedar Street, excluding the 340 Cedar Street parcel (the “Property” or “Central Station Block”); and
WHEREAS, the Council constructed the Green Line LRT Project, which bisects the Council property, and includes light rail transit infrastructure, a stair and elevator tower that connects Central Station Block with the City’s downtown pedestrian skyway system (the “Vertical Access Tower”), and a north-south skyway of approximately 164 feet in length that is attached to and extends from the building at 340 Cedar Street to 5th Street (“CSB Skyway”); and
WHEREAS, the HRA and the Council entered into a Joint Powers Agreement in September 2023 (as amended, the “JPA”) to formally commit to a process for the joint redevelopment of the Central Station Block; and
WHEREAS, the Council and the HRA issued a publicly announced Request for Proposals for the purchase and redevelopment of the Property (the “RFP”) on or around March 25, 2024, with a submission deadline of July 25, 2024, all in material compliance with the HRA’s disposition policy, the Council’s Real Estate Policy, and the Council’s Transit Oriented Development (TOD) Policy; and
WHEREAS, by the deadline indicated in the RFP, one RFP response proposal to purchase and redevelop the Property was submitted to the Council and the HRA; and
WHEREAS, after a formal review process of the proposal, Council staff and HRA staff recommend that the HRA Board of Commissioners (“Board”) and Council accept the proposal submitted by Flaherty & Collins to construct the proposed project on the Property, as described in the proposal (the “Project”); and
WHEREAS, the Project proposed by Flaherty & Collins accomplishes the objectives and goals outlined in the RFP, the HRA Land Disposition Policy, Council Real Estate Policy, Council TOD Policy and, furthermore, the Project complies with the strategies set forth in the Citywide Comprehensive Plan / Redevelopment Plan now in effect in the City of Saint Paul; and
WHEREAS, the Board and Council find the Project serves a public purpose by: 1) increasing the City’s tax base; 2) increasing the number of residential rental units in the city and adjacent to transit; 3) generating private investment in the City; 4) supporting commercial activity; and 5) developing vacant property; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that Flaherty & Collins (or its affiliated entity that is owned and controlled by Flaherty & Collins), is designated as tentative developer for the Property (the “Tentative Developer”) until December 31, 2026, on the terms and conditions set forth below.
BE IT FURTHER RESOLVED that the Tentative Developer must complete or cause to complete, at its own cost, certain activities with respect to the Project to the satisfaction of the Executive Director of the HRA. A list of benchmark activities, and the dates such activities are to be completed by the Tentative Developer include the following:
Prior to April 30, 2025, the Tentative Developer will:
• Submit a reasonably detailed timeline for the Project, for approval by HRA staff.
• Begin engaging surrounding community groups and key stakeholders regarding the Project and its site plan.
• Read the Ramsey County Equitable Development Framework and the 2017 Central Station Block Design Guidelines.
Prior to June 30, 2025, the Tentative Developer will:
• Complete site survey, geotechnical study, and environmental assessment(s).
• Submit an ownership structure, financing plan, concept for tenant type and mix, and any relevant market studies for the commercial component of the Project.
• Begin pursuit of relevant predevelopment and development funding for the Project, such as Department of Transportation funding, Metropolitan Council Grants, Ramsey County Grants, and City/HRA funding, as applicable.
Prior to December 31, 2025, the Tentative Developer will:
• Complete preliminary designs for the Project after having gathered and considered input from affected community groups and stakeholders and address items that were raised during review of the proposal, including how the Vertical Access Tower and skyway will be integrated into the development and how the development will integrate with adjacent transit.
• Identify in the preliminary design any features that satisfy recommendations in the Ramsey County Equitable Development Framework and the 2017 Central Station Block Design Guidelines.
Prior to April 30, 2026, the Tentative Developer will:
• Complete a formal scope of work with architectural/engineering plans and specifications, incorporating Green/Sustainable Development guidelines, and including site plan, elevations, exterior treatments/materials, and interior schematics for approval by HRA staff.
• Begin the site plan review process and submit applications for all property building permits with the Department of Safety and Inspections.
• Finalize a detailed development budget and business plan for approval by HRA staff.
• Submit evidence of availability of construction financing for review and acceptance by HRA staff.
Prior to June 30, 2026, the Tentative Developer will:
• Receive all requisite approvals for site plan review, building permits, zoning, licenses and any other required City or State approvals for the Project.
• Negotiate final terms and conditions of a site development agreement with Council staff.
• Have closed on acquisition of the Capital City Parking Garage, located at 50 4th Street East.
• Submit to Metro Transit a plan for transit closures during construction.
Prior to December 31, 2026, the Tentative Developer will:
• 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.
• Negotiate final terms and conditions of a site construction agreement, operations and maintenance agreement, purchase agreement, and any ancillary agreements identified as necessary by the Council.
BE IT FURTHER RESOLVED that the terms and conditions of a development agreement between the HRA and the Tentative Developer shall include the following terms and 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 HRA will convey its portion of the Property in its “as is” condition.
4. The Tentative Developer will agree to comply with all applicable compliance requirements.
BE IT FURTHER RESOLVED that, in connection with the foregoing actions, the HRA is authorized to (1) enter into an agreement with the Tentative Developer and the Council that restates the foregoing deadlines and requirements (among other Tentative Developer obligations as determined by the HRA), and (2) grant the Tentative Developer access to the HRA-owned portion of the Property that allows the Tentative Developer to perform its due diligence, including environmental investigation, provided that such entry onto the Property shall not interfere with any HRA, Council, or City of Saint Paul operations on or around the Property.
a. HRA access authorization will be under a non-exclusive access license agreement, approved by the City Attorney’s Office.
b. Council access authorization will be pursuant to a non-exclusive license agreement, as duly approved or adopted by the Council.
BE IT FURTHER RESOLVED that if the Tentative Developer does not timely complete the specified tasks or otherwise materially comply with the terms of this resolution to the satisfaction of the Executive Director of the HRA, its status as Tentative Developer may be terminated by the Executive Director of the HRA upon consultation with the and Council’s Regional Administrator (or their designee) without further action by the Board, or, alternatively, the Executive Director, in cooperative consultation with the Council’s Regional Administrator (or their designee), may, without further action by the HRA Board, grant an extension of the Tentative Developer status and/or benchmark activities for a period not exceeding six months upon a showing of significant progress of the tasks defined above by the Tentative Developer.