Title
Approval of the February 12, 2014 HRA Meeting Minutes.
Body
ROLL CALL
Present: Commissioner Brendmoen, Lantry, Stark, Thao, and Tolbert
*Absent: Commissioner Bostrom and Commissioner Thune
CONSENT
1. Approval of the January 22, 2014 HRA Meeting Minutes.
Commissioner Stark moved approval. The HRA meeting minutes were approved.
VOTE: Yeas - 5 Nays - 0
2. Resolution Approving and Authorizing Acceptance of $840,000 From the Minnesota Housing Finance Agency and $200,000 from the Metropolitan Council and Amending the Budget of the HRA Disposition Work Plan.
Commissioner Stark moved approval. Approved as set forth in RES PH 14-295.
VOTE: Yeas - 5 Nays - 0
PUBLIC HEARING
*Commissioner Bostrom and Commissioner Thune arrived.
3. Resolution Approving and Authorizing the Sale and Conveyance of Four Properties under the Inspiring Communities Program; Authorization to Enter into Development Agreements; and Authorization of Expenditures for Redevelopment under the Saint Paul Housing and Redevelopment Authority's Disposition Strategy, Citywide.
Ms. Cecile Bedor, HRA Executive Director, stated that the HRA Disposition Work Plan & Budget, approved by the HRA board in July of 2013, was designed to address 240 parcels owned by the HRA which are categorized as: parcels with obligations, cluster area parcels, splinter parcels, and buildable lots. The plan prioritizes subsidy to address cluster area parcels and parcels with obligations.
The HRA issued an RFP for 29 properties in October 2013 and last month the HRA board approved the sale of, and value gap for, 27 of those properties. Four of those properties were awarded to Urban Homeworks, however, Urban Homeworks has determined they do not have the capacity to complete all four properties and thus is no longer seeking the purchase of 515 and 675 Lafond Avenue. Staff is recommending those two properties be sold to Habitat for Humanity, which was the RFP respondent with the second highest score. Habitat has another, previously awarded, subsidy from the HRA they can use on these properties; therefore, they will not need value gap funding from the Disposition Strategy budget. Thus, $178,990 that had been awarded for these two properties (for Urban Homeworks) is now available to address additional properties issued under the RFP.
NEDA submitted proposals for the last two properties in the RFP, 1082 Galtier and 113 Winnipeg, which included a value gap request of $258,047. The $178,990 noted above will be moved to these properties, and thus authorization for only $79,057 is needed in additional value gap. All totaled, $2,544,409 will have been awarded to, and is sufficient to address, all 29 properties under the RFP.
Chair Brendmoen asked if 1082 Galtier and 113 Winnipeg are vacant properties; Ms. Bedor replied that both are vacant lots.
Chair Brendmoen announced the public hearing. There being no testimony, Commissioner Lantry moved approval. Approved as set forth in RES PH 14-42.
VOTE: Yeas - 7 Nays - 0
DISCUSSION
4. Resolution Approving the Issuance and Sale of Conduit Health Care Facility Revenue Refunding Bonds, Series 2014 and Authorizing the Execution of Documents Relating Thereto (HealthPartners Obligated Group Project), District 17, Ward 2.
Ms. Bedor stated that HealthPartners is a large and important Saint Paul company, employing over 11,000 people in Minnesota and over 6,600 in Saint Paul. HealthPartners is requesting the HRA issue conduit revenue bonds to refund prior HRA bonds including 1998 bonds issued by the HRA for Regions Hospital in the amount of $50 million, and 2003 bonds issued jointly by the HRA and the City of Minneapolis for facilities located throughout the metro in the amount of $80 million. The outstanding balance to be refunded is $79 million. As a result of this refunding, HealthPartners is projected to achieve a net present value savings of nearly $7.8 million. Ms. Bedor noted that this is a conduit bond issue and therefore does not constitute any obligation whatsoever on the part of the HRA or the City of Saint Paul.
Ms. Bedor acknowledged that Frank McQuillan, Vice President, Treasury and Real Estate with HealthPartners, John Henningsgard, Managing Director with Piper Jafray & Co., and Jenny Boulton, Bond Counsel with Kenney & Graven were in attendance.
Chair Brendmoen asked to verify the 1998 and 2003 bonds will be combined under this refunding, to which Ms. Bedor responded in the affirmative.
Commissioner Thune moved approval. Approved as set forth in RES PH 14-265.
VOTE: Yeas - 7 Nays - 0
STAFF REPORT
5. Penfield Update, District 17, Ward 2.
Ms. Bedor presented an overview of the status of The Penfield, which was distributed to the Board members prior to the meeting.
ADJOURNMENT
Commissioner Thune moved adjournment. The HRA meeting was adjourned.