Title
Resolution Authorizing Approval of $420,000 Loan to BB Housing Associates, LLC to Redevelop 242-244 Maria Avenue Under Invest Saint Paul Initiative Located in Lower Dayton's Bluff Historic District, Ward 7, District 4
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 which includes Dayton's Bluff District 4 area within the Plan and the City Consolidated Five-Year Plan; and
WHEREAS, Invest Saint Paul Initiative is an effort to bring together all the necessary and needed stakeholders committed to promoting, supporting and helping people grow viable and sustainable communities by building on the strengths of Saint Paul's neighborhoods, by insuring that neighborhoods remain strong and that where confidence is clearly declining, that we work collaboratively to stimulate changes to restore and build confidence and sustainable pride; and
WHEREAS, on August 8, 2007, by Resolution No. 07-08/08-3 HRA approved the Invest Saint Paul Initiative including a work plan and budget covering (1) Rehabilitation; (2) Mortgage Financing; (3) Strategic Acquisition; (4) Neighborhood Commercial Corridors; (5) Large Redevelopment-unspecified; and (6) Supportive Housing in the amount of $17.0 million and that all these activities be considered in the context of working with neighborhood organizations and residents; and
WHEREAS, the City and HRA have continued to build on the Invest Saint Paul Initiative Plan with the adoption of; (1) Resolution 08-1270 on November 19, 2008 and Resolution 09-103 on January 28, 2009 covering NSP 1; (2) with the adoption of Resolution 10-3/24-3 on March 24, 2010 covering NSP 2; (3) with the adoption of Resolution 11-387 on April 20, 2011 covering NSP 3; and
WHEREAS, the ISP work plan included identification of an 8-10 block area surrounding the Dayton's Bluff Achievement Plus Elementary School as an immediate and long term area for investment concentration including addressing both single family and rental properties; and
WHEREAS, the neighborhood has been attempting to address these types of concerns for some time and within the last several years has partnered with Dayton's Bluff NHS, Marpe Development, Historic St. Paul and BB Housing Associates, LLC and together have been slowly addressing these community issues; and
WHEREAS, the community would like to explore alternatives to secure and reuse of this property in order to preserves character, improve neighborhood stability and provide good housing options; and
WHEREAS, BB Housing Associates, LLC has been working with the community to secure a purchase agreement on 242-244 Maria Avenue (vacant building) in an attempt to address this property and bring it back to its original use as a side-by-side duplex with good quality property management;
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota as follows:
1. That HRA hereby approves a loan of up to $420,000.00 to BB Housing Associates, LLC, a Minnesota limited liability company to proceed to finalize the purchase, specifications for rehabilitation, bidding requirements for contract work meeting all the compliance requirements and complying with all other ISP, CDBG and City /HRA requirements for developing this Property located within Invest Saint Paul activity area and hereby conforms to the objectives and specific requirements under the Invest Saint Paul Initiative and meet the intended reuse as identified in the City Wide Comprehensive Plan and Consolidated Plan, legally described as:
2. That the loan of $420,000.00 will come from ISP funds being used in accordance with the approved strategic acquisition and flexible rental rehab components two identified activities under ISP and that CDBG funds that have been budgeted and are to be available as of June 1, 2012 are to provide up to $330,000 from the Housing Real Estate fund to replace the ISP rehabilitation funding and that the ISP funds when replaced will again become available for budgeting under ISP work plan activities.
3. That the loan in the amount of $420,000.00 will be secured by an Acquisition Mortgage and Note; and the rehabilitation costs will be secured by a mortgage and note and represent the total development costs for 242-244 Maria and is satisfactory in accordance with requirements and use and restrictions and are in conformance with the City Wide Redevelopment Plan and Consolidated Plan.
4. That HRA hereby obligates $420,000.00 of ISP funds for the redevelopment of the Property to provide affordable housing at or below 80% of the area median income and hereby conform to the objectives and specific requirements of the Invest Saint Paul Initiative and work plan and meets the intended reuse of the Property under both ISP and CDBG funding.
5. That BB Housing Associates, LLC has the apparent qualifications and financial resources to acquire and redevelop said Property in accordance under the Invest Saint Paul Initiative and work plan 2009-2013.
6. That the proposed financial assistance by and between HRA and BB Housing Associates, LLC is satisfactory in form and complies with the requirements of state and federal law for said Property.
7. That the Early Notification System (ENS) for Certain HRA Actions is hereby waived on this Property based on supporting action from the neighborhood, immediate need to proceed with the purchase of the property or forfeit the purchase agreement do to the short time line the owner wanted on the PA.
8. That $420,000.00 of ISP funds for acquisition/rehabilitation and subsequent CDBG funds for only rehabilitation will be expended/obligated for acquisition, rehabilitation and contingency/reserve and will be used to complete the development of Property as approved by HRA and will be secured with a Mortgage and Note against the Property according to the terms and conditions outlined in the Financing Section of the HRA Board Report and becomes incorporated in to this Resolution.
9. That the execution and delivery of said Loan and Grant Agreement between BB Housing Associates, LLC and HRA for Property is hereby authorized by the Board of Commissioners to be executed on its behalf by the Chairperson or his/her designated Commissioner, the Executive Director of the HRA or Acting Executive Director, and the Director, Office of Financial Services of the City of Saint Paul.
10. That the Executive Director of the HRA is hereby authorized to negotiate and agree to
any amendments, deletions or revisions to the Loan and Grant Agreement which do not substantially change the rights or obligations of the HRA or Developer under the Loan and Grant Agreement to carry out and complete the improvements and further continues to comply with all ISP and CDBG requirements and take such further action necessary to implement this Resolution.
11. That the Budget Amendment outlined in Attachment B is hereby approved.