Title
Resolution Approving the Sale of Land and Conveyance of Parcel 1776 Maryland Avenue East, Unit 307, Hazel Park Heights Condominium Project, Greater East Side District 2
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA), has duly adopted and there is now lawfully in effect in the City of Saint Paul, Minnesota, a City Wide Comprehensive/Redevelopment Plan (Plan) providing for the acquisition, clearance and resale of land for redevelopment and/or properties completed under redevelopment which includes Greater East Side District 2 area within the Plan and the City Consolidated Five-Year Plan; and
WHEREAS, on July 5, 2001, City Council approved the White Bear Avenue Small Area Plan which became part of the City's comprehensive Plan and encouraged housing development on marginal commercial sites along White Bear Avenue; and
WHEREAS, on September 9, 2005, HRA approved by Resolution 05-09/28-05 the development of Hazel Park Condominiums and committed both gap assistance in the amount of $1,190,000 and a $600,000 Guaranty to meet the pre-sale requirements to qualify for private financing and Fannie Mae mortgage underwriting; and
WHEREAS, the Certificate of Occupancy for Hazel Park Heights was issued in 2007, and to date 15 units have been sold; project came on line just as the economy and housing market began to decline and in 2008, in accordance with HRA Guaranty, a payment of $600,000 was made to the Lender, Anchor Bank, for the purchase of five units meeting the pre-sale requirements; and
WHEREAS, since that time, Hazel Park Heights, LLC and HRA have continued to market the properties both as rent-to-own and contract for deed with little success, with many of the buyers that had purchase agreements for units being empty nesters or elderly and had to sell their homes first, with the market limited their ability to do so and many of the sale fell through; and
WHEREAS, the townhouse and condominium market has virtually vanished for financing because many of the condominium buildings have had too many foreclosures and can no longer meet the Fannie Mae/FHA requirements; and
WHEREAS, HRA has continually marketed these properties, and recently listed all the properties under the ISP/NSP marketing strategy and received a purchase agreement for one of the l-br units; and
WHEREAS, the HRA and Ronald Stanley Snaza entered into a Purchase Agreement for the sale and conveyance of Parcel 1776 East Maryland Avenue, for one of the l-br condominum units located at Hazel Park Heights Condominium Project; and
WHEREAS, the disposal price of the Parcel is in accordance with and subject to the home owner occupancy restriction this home available to family at an income up to 120% of the median income.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota as follows:
1. That the Purchase Agreement submitted by Ronald Stanley Snaza to purchase Parcel 1776 Maryland Avenue East, Unit 307 located in Greater East Side District 2 hereby conform to the objectives and specific requirements of the and meets the intended reuse as identified in the City Wide Comprehensive Plan and Consolidated Plan. The Parcel is legally described as:
1776 Maryland Avenue East - Unit No. 307, Common Interest Community No. 729,
Hazel Park Heights Condominium, a condominium located in Ramsey County,
Minnesota.
2. That the method of disposition of the Parcel is in accordance with the City Wide Redevelopment Plan and Consolidated Plan and is the appropriate method of making the Parcel available for sale.
3. That the sale of Parcel in the amount of $94,000.00 is satisfactory and in accordance with Sec. 469.032 use and restrictions are in conformance with the City Wide Redevelopment Plan and Consolidated Plan.
4. That Ronald Stanley Snaza has the qualifications and financial resources to purchase the Parcel.
5. That the proposed disposal transaction by and between HRA and Ronald Stanley Snaza is satisfactory in form and complies with the requirements of state and federal law for the Parcel
6. That said Purchase Agreement is satisfactory and the same is hereby accepted, and the execution and delivery of said Deed of Conveyance to Ronald Stanley Snaza for the Parcel is hereby authorized by the Board of Commissioners to be executed on its behalf by the Chairperson or his/her designated Commissioner of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota.
7. That financing assistance is satisfactory and meets the terms and conditions of the HRA funding requirements, and other obligations, and the execution and delivery of the said Mortgage documents and other required documents are hereby authorized by the Board of Commissioner of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota.
8. That the Executive Director of the Housing and Redevelopment Authority of the City of Saint Paul is hereby authorized to negotiate, agree to any amendments/changes, deletions or revisions to conclude the sale and conveyance of this Parcel which do not substantially change the rights or obligations of the Housing and Redevelopment Authority of the City of Saint Paul or Purchaser under the Purchase Agreement and take such further action necessary to implement this Resolution.