Title
Authorization to Approve Funding for Site Clean-up Costs at Parcel 840 Payne Avenue (Kendall Hardware Store Site), Payne-Phalen District 5
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota ("HRA") has duly adopted and there is now in legal effect a City-Wide Comprehensive Plan/Redevelopment Plan ("Plan") for the acquisition, demolition, rehabilitation and resale of properties and incorporates the Housing Plan which identify the Payne Phalen District 5 area as a part of this Plan; and
WHEREAS, on November 3, 2004, City Council approved the Payne-Phalen Boulevard Main Street Redevelopment Plan by Resolution 04-1059, and the HRA approved said Plan on same dated by Resolution 04-11/10-1; and
WHEREAS, the Plan talked about the need to undertake major improvements to the this new gateway area created by the construction of Phalen Boulevard to build on the new access to the neighborhood commercial street and gateway to Payne Avenue; Plan outlined the need to bring in new housing in a variety of options combined with commercial/retail services; and
WHEREAS, Ramsey County received federal funding for the widening of Maryland Avenue in several locations to construct turn lanes thereby increasing better traffic flow and reducing accidents, the County has completed the widening at Arcade and Maryland and is completing the widening at Maryland and Rice, with acquisition of properties at Maryland and Payne underway for the widening; and
WHEREAS, with the recent completion of the acquisition of Kendall Hardware on the southeast corner Payne and Maryland as part of the widening has opened an opportunity for new retail development at Payne and Phalen Boulevard which would provide for a strong anchor for the corner; and
WHEREAS, Kendall and Alexandra Crosby, owners of Kendall Hardware were designated tentative developer of Parcel 840 Payne Avenue on September 14, 2011 and have undertaken many meetings in finalizing the plans, securing bank financing commitment, completing bid documents and other necessary documentation to move the purchase of this property forward to continue their presence along the Avenue and continue to be a strong economic player in the community taking this opportunity to show investment at a prime location.
WHEREAS, on November 9, 2011, HRA held a public hearing and approved sale of 840 Payne Avenue to Kendall Land Company, LLC together with financing assistance in the amount of $625,000 by Resolution 11-1171; and
WHEREAS, upon receipt of final bids for construction in December, 2011 the construction costs exceeded the preliminary construction numbers by $623,661 which was not anticipated; over the next 30 days PED staff, architect, developer and Copeland Building Company reduced the cost by $293,661 without cutting the two basic strategies needed to meet the neighborhood concern of retaining a second floor and City Sustainability Policy and on January 25, 2012, HRA approved $330,000 in additional by Resolution 11-1171; and
WHEREAS, a number of issues have not surfaced with further review of the Public Works documents and additional test pits were dug on site and uncovered that all basements from previous structures were not removed; fill used was full of bricks, concrete and other non-acceptable fill items; old cistern found;
old tank; etc requiring additional costs and geotechnical work, adding an additional cost of $150,000.
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 up to an additional $150,000 of CDBG for the redevelopment of the Parcel to assist in the site clean-up required to have a buildable site for construction of a new 13,600 sq/ft hardware store which services a community that has a population of more than 80% in the service area that is below 80% of the median income level and hereby conform to the objectives and specific requirements for the use of CDBG funding.
2. That additional $150,000 will be a grant to be used for site clean-up to insure a buildable and useable development parcel as approved by HRA and will be secured with a Mortgage and Note and forgiven in full upon completion of the building according to the terms and conditions outlined in the HRA Board Report accompanying this Resolution.
3. That the Executive Director of the Housing and Redevelopment Authority of the City of Saint Paul is hereby authorized to negotiate and agree to any amendments, deletions or revisions to the Development Agreement to provide this funding for the designated activities or revisions that may be necessary which do not substantially change the rights or obligations of the HRA or Developer and further continues to comply with all local, state and federal requirements and take such further action necessary to implement this Resolution.
4. That the Budget Amendment outlined in Attachment A is hereby approved.