Title
Approving and Authorizing the Non-use of a Project Labor Agreement on a Duplex Housing Development Project at 1087 Ross Avenue.
Body
WHEREAS, the Saint Paul City Council adopted Council File #09-584 on the use of Project Labor Agreements (“PLA”) for projects involving $250,000 or more of City money; and
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) improving the tax base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, reference to the City of Saint Paul in Council File #09-584 also includes the HRA; and
WHEREAS, the Department of Planning and Economic Development (“PED”) and HRA are contemplating a redevelopment project which involves the construction of a new duplex at 1087 Ross Avenue that will result in a building construction contract with more than $250,000 in City money; and
WHEREAS, PED and the HRA sent a written “Notice and Request for Recommendation on the Use of a PLA” to interested parties on April 4, 2026, which resulted in no responses; and
WHEREAS, in considering all criteria for evaluating a PLA as outlined in Council File #09-584 and past practice on substantially similar projects, a PLA will not benefit the project referenced in this resolution for the following reasons:
Work on this project may be suspended and restarted with minimal impacts to the City.
Federal, state and private resources will provide a significant share of project subsidy.
State funding in the project is sourced from a competitive grant process that considers costs per unit in addition to other factors.
Use of a project labor agreement is projected to significantly increase overall construction costs and the need for subsidy, jeopardizing federal, state and private resources allocated to the project.
The City’s experience has demonstrated use of a PLA is not critical to the success of single-family housing redevelopment.
NOW THEREFORE BE IT RESOLVED by the City Council that the non-use of a PLA on the project at 1087 Ross Avenue referenced in this resolution is approved.