Title
Approving the September 14, 2016 HRA Board Meeting Minutes
Body
Commissioner Voting
The reader calls the names of all Commissioners. A vote in favor is cast by remaining silent, and a vote against is cast by saying no or nay. When the voting is complete, the reader will state whether the motion passed or failed.
ROLL CALL
Present 7 - Commissioners Bostrom, Noecker, Prince, Stark, Thao, Tolbert and Chair Brendmoen
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
1. Approving the August 3, 2016 HRA Board Meeting Minutes
Adopted as set forth in Min 16-35
2. Approving the August 10, 2016 HRA Board Meeting Minutes
Adopted as set forth in MIN 16-36
Moved by Commissioner Tolbert, Consent Agenda is adopted.
VOTE: Yeas - 7 Nays - 0
FOR DISCUSSION
3. Resolution of the HRA Board of Commissioners Approving 2017 HRA Proposed Budget and Certifying the Proposed HRA Tax Levy Payable in 2017.
Mr. Sage-Martinson, HRA Executive Director, stated this item is to set the maximum HRA levy for the 2017 budget year. The proposed 2017 HRA tax levy is $3,546,597 which is $268,449 increase over this years’ HRA tax levy but it is not the maximum allowed by law.
Commissioner Stark expressed excitement in the expansion of the business retention and outreach program as a part of the budget and thanked staff for the work thus far.
Commissioner Thao shared his support of the proposed budget supporting our local businesses and redevelopment.
Moved by Stark, Resolution Approved as set forth in RES 16-1577
VOTE: Yeas - 7 Nays - 0
4. Resolution Approving and Designating Hmong American Partnership (HAP) as Tentative Developer for the HRA-Owned Parcel Known as Saxon Ford Site, District 7, Ward 1
Mr. Sage-Martinson, HRA Executive Director, stated this item is for the approval of tentative developer status for the parcel owned by the HRA often known as the Saxon Ford Site. The City acquired using a loan from the LAAND (Land Acquisition for Affordable New Development) Fund, a program Minnesota Housing ran to promote affordable housing along transit lines.
Commissioner Prince asked about the extended time frame of the development. Mr. Sage-Martinson stated that there are two parcels involved here. The first parcel; Parcel A, has tentative developer status for seven months. The second parcel; Parcel B, if the conditions are met on Parcel A, tentative developer status will continue on Parcel B for an additional period of time. The proposal includes a federally qualified health center which requires a lengthy application process. This tentative developer status gives the applicant time to get certification.
Commissioner Noecker asked for clarification on the outcome if any of the bench marks are not met. Mr. Sage-Martinson stated that the developer needs to complete conditions one through seven of the proposal for Parcel A in order for the developers to move forward on Parcel A and for the tentative developer status to continue for Parcel B.
Commissioner Thao asked about the potential opportunity lost due to holding the property for three years and the recent changes to the area; the Sears Site and the Soccer Stadium. Mr. Sage-Martinson stated that the HRA is still working through the 2015 RFI process. The proposal was recently brought back to the neighborhood for confirmation that, even with a small proposed change, it still meets the neighborhood interests. In addition, the land was acquired using a loan resource from Minnesota Housing which is meant to be forgiven if affordable housing is built on this site so the risk to the City doesn’t change significantly depending on what the market price would be for the land as long as the policy objective is meant.
Commissioner Noecker asked what happens to the additional funds if the land is sold for more than the original loan amount. Marcq Sung, PED Project Manager, stated that’s under the assumption that we can get more for what the appraised value of the land is. The amount of the note was for one million; the aggregate tax values for those properties are just over one million dollars.
Commissioner Thao requested a two week layover for more discussions between the developer and district council about the change in the proposal.
Moved by Commissioner Thao, RES 16-1586 Laid Over to the September 28, 2016 HRA Meeting.
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARINGS
5. Resolution Approving and Authorizing the Sale and Conveyance of 314 Harrison Avenue West under the Inspiring Communities Program; Authorization to enter into a Development Agreement, and Authorization of Expenditures for Redevelopment of Said Property under the Saint Paul Housing and Redevelopment Authority’s Inspiring Communities Program.
Mr. Sage-Martinson, HRA Executive Director, stated this item is part of our Inspiring Communities Program. The proposal is to convey 314 Harrison Avenue West to Twin Cities Habitat for Humanity for development.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES PH 16-302
VOTE: Yeas - 7 Nays - 0
6. Resolution giving Preliminary Approval to the Proposed Issuance of Conduit Revenue Bonds for the Hmong College Prep Academy Charter School Project, 1515 Brewster Street, under Minnesota Statutes, Sections 469.152 through 469.1655 District 10, Ward 4.
Mr. Sage-Martinson, HRA Executive Director, stated this item is preliminary authorization for $80 million in conduit lease revenue bonds for refunding existing HRA-issued bonds, expansion to the existing school, and to acquire and improve adjacent land with parking and athletic facilities. The Hmong College Prep Academy is a successful charter school looking to expand. Mr. Sage-Martinson also stated these are conduit bonds and do not represent an indebtedness to the HRA or City.
Moved by Commissioner Stark, Resolution Approved as set forth in RES PH 16-297
VOTE: Yeas - 7 Nays - 0
7. Resolution giving Preliminary Approval to the Proposed Issuance of Conduit Revenue Bonds for the Nova Classical Academy Charter School Project, 1455 Victoria Way, under Minnesota Statutes, Sections 469.152 through 469.1655 District 9, Ward 2.
Mr. Sage-Martinson, HRA Executive Director, stated this item is also the issuance of conduit revenue bonds and preliminary authorization to another successful charter school of $26,500,000 to refund existing HRA-issued bonds, acquire adjacent land, and complete site improvements.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES PH 16-296
VOTE: Yeas - 7 Nays - 0
8. Resolution Approving and Authorizing the Execution of a Purchase Agreement with SR Development, LLC for sale of 1.31 acres of land located at 217 Chestnut Street, Saint Paul, MN, District 9, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated this item is for a Conditional Purchase Agreement for a parcel currently owned by the City of St. Paul. It is contemplated the City will transfer this property to the HRA and the HRA will execute a conditional purchase agreement for sale of that parcel to SR Development, an entity of Schafer Richardson. Shafer Richardson approached the City of St. Paul about doing development at 217 Chestnut Street; which the HRA currently operates as surface parking lot. Shafer Richardson also met with the neighborhood and received approvals on the plans. Of the two proposals received the HRA staff recommends moving forward with Shafer Richardson. The site totals 1.31 acres and the proposal includes a 175-unit market rate, six-story apartment building with 168 enclosed parking spaces and will be a great addition to that part of downtown.
Chair Brendmoen asked what the purchase price was. Mr. Sage-Martinson stated the offer was $2,960,000 which is more than the appraised fair market value.
Commissioner Tolbert asked if that was the highest bid and who the committee is that decided to go with Shafer Richardson. Mr. Sage-Martinson said yes, this is the higher of the two bids and the recommendation is from HRA staff.
Tod Elkins, UrbanWorks Architecture, and Brad Schafer, Co-Founder of Shafter Richardson, shared goals and site plans with the commissioners
Moved by Commissioner Noecker, Resolution Approved as set forth in RES PH 16-303
VOTE: Yeas - 7 Nays - 0
STAFF REPORT
9. Housing Toolkit Information Report
Patty Lilledahl, PED Housing Director, gave an overview presentation on the PED Housing Resources. The second half of the presentation will be given at the October 12, 2016 HRA Board meeting.
Received and Filed as SR 16-81
ADJOURNMENT
Moved by Commissioner Noecker, HRA meeting is adjourned.
VOTE: Yeas - 6 Nays - 0