Title
Authorizing a grant up to $70,000 from the HRA Business Assistance Fund to tenants of the Alliance Bank Building, 55 East 5th Street, District 17, Ward 2
Body
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, The Alliance Bank Building, located at 55 East 5th Street in the City of Saint Paul, has been abandoned by its owner, Madison Equities, and will become uninhabitable by April 1, 2025 because utilities will be shut off to the building on that date; and
WHEREAS, On March 10, 2025, tenants of the Alliance Bank Building were provided notice to vacate the building, by Madison Equities; and
WHEREAS, The tenants of the Alliance Bank Building are facing a hardship due to the abrupt notice to vacate the building, and have requested assistance from the City of Saint Paul to help with expenses incurred to quickly move from the building and build out expenses incurred to keep tenants in St. Paul; and
WHEREAS, Staff reviewed and evaluated this request from the tenants and have determined that providing grants to the affected tenants will help businesses stay in Saint Paul;
WHEREAS, Staff recommends the approval of grants to tenants of the Alliance Bank Building from the HRA Business Assistance Fund (the “Grant”) with the following terms:
A. Grantees must have been a tenant in the Alliance Bank Building as of March 1, 2025;
B. Grantees must sign a Grant Agreement prepared by the HRA;
C. Grants are limited to a maximum of $5,000 per tenant;
D. The total amount that can be awarded under this resolution is $70,000;
E. Grants will be awarded on a first-come, first-serve basis;
F. Grants will be provided on a reimbursement basis only;
G. Grantees must move to a location in the City of Saint Paul;
H. Tenants cannot move to another building Not in good standing with the City’s Department of Safety and Inspections, in process of being condemned, or closed
I. Signed grant agreements identifying the tenants will be kept on file with the HRA;
J. Tenants must acknowledge that they are not being required to move by the City of Saint Paul, or the HRA, but are moving because the building has been abandoned by Madison Equities.
K. Eligible expenses must be incurred after March 10, 2025.
WHEREAS, Staff recommends waiver of the BAF Guidelines. Specifically, that the guideline requiring beneficiaries to be for-profit businesses is waived. Non-profit companies are eligible for this grant. Staff recommends that these awards be given as grants instead of loans, so that they are not required to be repaid. Staff recommends waiver of the 10% equity requirement. Staff also recommends waiver of the business subsidy compliance requirements; and
WHEREAS, This Grant does not trigger either the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, or the Minnesota Uniform Relocation Assistance Act. The tenants of the Alliance Bank Building are not being required to move from the Alliance Bank Building by the City of Saint Paul, or its HRA. The tenants are moving because the owner of the building has abandoned the building, and utilities will be shut off at the building by April 1, 2025.
WHEREAS, the HRA Board of Commissioners find that there is a proper public purpose to approve the Grant and allocate HRA Business Assistance funds of up to $70,000, for the reasons articulated in this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA hereby approves the Grant under the terms articulated in this Resolution, with any additional terms and conditions as deemed necessary and appropriate by the HRA Executive Director and the HRA Attorney.
2. The HRA Chair or Commissioner, the HRA Executive Director, and the City’s Director of the Office of Financial Services are hereby authorized to execute the necessary documents in connection with the Grant, provided that such documents are acceptable in form and substance to the Office of the Saint Paul City Attorney.
3. The HRA Executive Director, Staff, and Office of the Saint Paul City Attorney are hereby authorized to take all other actions needed to implement this resolution.
4. The HRA waives the BAF Guidelines for the Grant. Non-profit companies are eligible to receive a grant. These awards are meant to be grants that are not required to be repaid. Grants awarded under this resolution are not subject to the Business Subsidy compliance requirements. The 10% equity requirement is waived.
5. These grants are awarded to assist existing businesses stay in the City of Saint Paul and are not funds provided under the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, or the Minnesota Uniform Relocation Assistance Act, Minn. Stat. § 117.52. Those Acts are not triggered because the City of Saint Paul and HRA are not requiring any tenant to move.