Title
Resolution approving and authorizing reservation of funds for certain Saint Paul projects applying for funding from the Minnesota Housing Finance Agency, Districts 2, 4 and 5, Wards 6 and 7
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act, and said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community; and
WHEREAS, the HRA owns the following three properties that, pursuant to RFP processes, are scheduled for sale and redevelopment: (i) the former Hamm’s property located at 680 & 694 Minnehaha Avenue E., (ii) the former Hafner site located at 1570 White Bear Avenue, and (iii) 1170 Arcade Street (collectively, the “Subject HRA Sites”); and
WHEREAS, the Minnesota Housing Finance Authority (“MHFA”) requires developers of the aforesaid HRA owned properties, each of whom are applying for funding via the MHFA 2024 request for proposals, provide evidence of other significant commitments of funding and evidence of a purchase price, to earn MHFA funding commitment points which, together with land write down points are necessary to obtain MHFA funding; and
WHEREAS, the HRA prioritizes the redevelopment of these three Subject HRA Sites; and
WHEREAS, staff has determined the maximum funding proposed for the Saint Paul projects is reasonable, and will be subject to underwriting, and represents a positive public use and purpose, and will provide a range of affordable housing opportunities; and
WHEREAS, various HRA funding sources will be sufficient to provide support for the Saint Paul projects referenced below, 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 Board authorizes reservation of up to $4,000,000 for the development of the Hamms site at 680 & 694 Minnehaha Avenue, and approves a purchase price of $300,000 for the 2.5 acres of a portion of such HRA land that is required for the Hamm’s East End Apartment project located at the eastern end of 694 Minnehaha; and
2. the Board authorizes reservation of up to $650,000 toward the development of the Face to Face project located at 1170 Arcade Street and approves of a purchase price of $1.00 for the .22 acres of such HRA land; and
3. the Board authorizes reservation of up to $2,500,000 for the developer of the Gloryville project located at 1570 White Bear Avenue and approves of a purchase price of $1,200,000 for the 2.18 acres of HRA owned land; and
4. This Resolution does not constitute a binding or enforceable legal agreement; rather, the action taken herein is a reservation of funds and shall not become effective for each respective project until each such respective project receives its applied-for MHFA 2024 funding, and thereafter all appropriate formalities are to be followed.