Title
Approval of the June 13, 2012 HRA meeting minutes.
Body
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Lantry, Stark, Thune, Tolbert
CONSENT
1. Approval of the May 23, 2012 HRA meeting minutes.
Commissioner Bostrom moved approval.
VOTE: Yeas - 7 Nays - 0
DISCUSSION
2. Resolution Approving and Authorizing and Amended HOME Loan Agreement for the West Side Flats Project, District 3, Ward 2.
Ms. Cecile Bedor, Executive Director for the HRA, stated that in 2011 the HRA Board approved a $1 million HOME loan for the West Side Flats Apartments project; this action was taken due to the spend down requirements of the available HOME funds. Ms. Bedor noted that both CDBG and HOME funds have federal requirements on how quickly you awards must be spent.
In June 2011 staff had contemplated a total loan of $2.5 million for this project and that amount has not changed. The project remains a 178-unit apartment building; 20% of the units will be affordable. The only revision to the development pertains to the alignment of Harriet Island Blvd.
Ms. Bedor stated that the HOME loan terms will essentially remain the same except for the interest rate which has been reduced from 2% to 0%. The amended HOME loan agreement must be executed by June 29, 2012, or the City is in jeopardy of losing the HOME funds due to, again, spend down requirements. Thus, staff is seeking approval of $1.5 million and will return to the Board with the final sources and uses within the next month.
Commissioner Stark asked what other sources and uses will be used to fund this project.
Ms. Marie Franchett, from PED stated that the sources and uses provided in this Board report are the same sources and uses that were provide last year. The project has undergone some changes, therefore a revised sources and uses will be provided when staff returns for final approval, which will include the development agreement and TIF. The sources and uses presented today provides for $3.3 million of Tax Increment Financing, $2 million from Minnesota Housing, $2.5 million from the HOME loan, the Developers equity, and the mortgage from HUD. The project will also receive DEED grant funds as well as funds from the Metropolitan Council Livable Communities.
Commissioner Stark moved approval. Approved as set forth in resolution RES 12-1149.
VOTE: Yeas - 7 Nays - 0
3. Resolution Authorizing Approval of an $80,000 Loan under the Strategic Investment Fund Program to Snacks Holding Corporation for 380 Saint Peter Street; and Budget Amendment, District 17, Ward 2.
Ms. Bedor stated that staff is excited to welcome a new global headquarters to downtown Saint Paul. Snacks Holding Corporation, soon to be renamed Flagstone Foods (pending TM approval), is the holding company for Ann’s House of Nuts (“Ann’s”) and Amport Foods (“Amport”). Ann’s is currently based in Columbia, MD, and Amport is based in Minneapolis.
Ms. Bedor explained that Snacks Holding will be consolidating Ann’s and Amport headquarters to downtown Saint Paul, and is looking to lease 11,000 sq. ft. in the Lawson Building. Snacks Holding is committed to having a minimum of 40 full-time employees on site by the end of their first year in Saint Paul, primarily professional positions earning on average $95,000 per year. This will be the first food manufacturer headquarters located in downtown Saint Paul, and hopefully will attract more manufacturers to do the same.
Mr. Brian Zellmer, Vice President of Finance for Snacks Holding thanked Ms. Bedor and PED staff, as well as the City of Saint Paul for the support in their relocation to Saint Paul. Mr. Zellmer also stated that a good portion of the executive team grew up in Saint Paul, and they are very excited to get the team here, and perhaps start a trend of getting other food manufacturers to move to Saint Paul as well.
Commissioner Lantry moved approval. Approved as set forth in resolution RES 12-1151.
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
Commissioner Lantry moved adjournment. The HRA meeting was adjourned.