Title
Approving the July 12, 2017 HRA Board Meeting Minutes
Body
ROLL CALL
Present 5 - Commissioners Bostrom, Noecker, Prince, Stark and Chair Brendmoen
Absent 2 - Commissioners Thao and Tolbert
CONSENT AGENDA
Note: Items listed under the Consent Agenda will be enacted by one motion with no separate discussion. If discussion on an item is desired, the item will be removed from the Consent Agenda for separate consideration.
Approval of the Consent Agenda
Commissioner Thao Arrived
1. Approving the June 28, 2017 HRA Board Meeting Minutes
Adopted as set forth in Min 17-26
Moved by Commissioner Prince, Consent Agenda is Adopted
VOTE: Yeas - 6 Nays - 0
FOR DISCUSSION
Commissioner Tolbert Arrived
2. Resolution Authorizing the Designation of Phoenix Development Company of Minneapolis, LLC as the Tentative Developer for the Properties Located at 782 - 805 Rice Street, 129 Sycamore and 119 Lyton Place, Saint Paul, MN, District 6, Ward 1
Kristin Guild, Acting HRA Executive Director, stated that the HRA received a redevelopment proposal from Phoenix Development for an assembled property at Sycamore and Rice streets. Phoenix proposes a development of 41 units, including 21 three bedroom apartments and 10 each one- and two-bedroom units.
The HRA has owned most of these properties for redevelopment since 2008 and some parcels since 2000 and we have marketed these properties for redevelopment for years. After receiving the proposal from Phoenix, staff posted the property through the Early Notification System for 45 days, consistent with our marketing policy. No other proposals were received.
The total development costs are currently estimated at $10.38M, with a current financing gap of $2.57M. Phoenix has requested that the HRA award tentative developer status for the property to allow them to secure financing for the proposed project. A subsequent property sale would require a public hearing and additional action by the HRA board. Any financial assistance from the HRA to fill the financing gap would require staff review and negotiation as well as authorization by the board. Staff recommends awarding tentative developer status to Phoenix through December 31, 2018 to allow them a level of site control necessary to pursue financing for this project.
Michael Buelow, BB Housing & Phoenix Development, shared previous work experience and details on this project.
Commissioner Thao shared his appreciation of BB Housing & Phoenix Development investing in that corner of the North End and the need for more affordable three bedroom apartments.
Moved by Commissioner Thao, Resolution Approved as set forth in RES 17-1057
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARING
3. Resolution Authorizing the Issuance and Sale of Conduit Revenue Bonds on Behalf of Fairview Health Services, with Multiple Facilities Located in Saint Paul, under Minnesota Statutes 469.152 through 469.1655, and the Execution of Related Documents, Districts 7 and 17 and Wards 1 and 2
Ms. Guild stated this item is a request for authorization to issue up to 225 million dollars in conduit health care system revenue bonds for Fairview Health Services. On June 1, 2017, Fairview Health Services acquired the HealthEast Care System, with a combined total of over 119 primary and specialty care clinics as well as Saint Joseph’s and Bethesda Hospitals in Saint Paul.
The borrower is pursuing this transaction to consolidate HealthEast debt under the Fairview umbrella, allowing simplification of reporting and disclosure. These conduit bonds will refund bonds issued in 2012 and 2015 by the HRA for HealthEast facilities. This bond issue will also refinance Fairview Health Services debt related to facilities in Grand Rapids. Please note that these are conduit bonds and there is no obligation on behalf of the City or HRA to repay these bonds.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES PH 17-192
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
HRA Board Meeting is Adjourned