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Resolution recommending approval by City Council of an American Rescue Plan Act (SLFRF) loan in the amount of $4,900,000; and recommending approval by City Council of a Metropolitan Council Livable Communities Demonstration Account loan in the amount of $575,000, all to develop a multi-family housing project at 2260 Bohland Avenue, District 15, Ward 3
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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, the City of Saint Paul issued a 30% AMI Deeply Affordable Housing Program - Fall 2022 Request for Proposals; and
WHEREAS, Common Bond or its affiliated entity, CB Ford Site II 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 2260 Bohland Avenue, Saint Paul, Minnesota.
WHEREAS, the Developer has requested financing of $4,900,000 in American Rescue Plan Act funding from the Coronavirus State and Local Fiscal Recovery Fund (“SLFRF”) and, in addition, has requested a $575,000 loan from Metropolitan Council Livable Communities Demonstration Account development grant funds to complete improvements to the Project, and staff has identified the sources and terms for this financing in the accompanying report (collectively, the “Improvement Financing”); and
WHEREAS, under Resolution No. 24-1435 the Saint Paul City Council is expected to authorize the transfer of $4,900,000 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, on February 28, 2024, under RES PH24-44, the Saint Paul City Council authorized the City to enter into the $575,000 Metropolitan Council Livable Communities Demonstration Account development grant agreement and to loan such proceeds to the Developer.
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 recommends approval of the issuance of a loan to Developer (or its affiliated entity) of $575,000 in Metropolitan Council Livable Communities Demonstration Account development grant funds to develop the Project.
2. The Board recommends approval and authorizes the issuance of a loan to Developer (or its affiliated entity) of $4,900,000 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 Board ratifies and approves the review and acceptance of the Proposal and the making of the Improvement Financing.
4. 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
5. if needed, 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.
6. 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.