Title
Amending the City’s 2024 Capital Improvement Budget to allocate $6,789,929.00 of HOME-ARP funds.
Body
WHEREAS, on April 7, 2021, the Saint Paul City Council (“Council”) adopted Resolution 21-490 (the “2021 Resolution”), authorizing the submission of the 2021-22 Consolidated Plan-Annual Action Plan (“Consolidated Plan”) to the U.S. Department of Housing and Urban Development (HUD).
WHEREAS, on April 11, 2021 HUD allocated the sum of $6,789,929 in HOME-ARP funding to the City of Saint Paul (“City”) to address homeless assistance needs by creating affordable housing; and
WHEREAS, the City now intends to use the HOME-ARP funding to purchase and rehabilitate a property located in the City at 268 Marshall Avenue, for the purpose of creating affordable housing; and
WHEREAS, the City is drafting a purchase agreement to acquire the real property and building located at 268 Marshall Avenue for a total cost of $2,500,000.00; and
WHEREAS, the City estimates that it will cost $3,580,700 to make necessary improvements to the property at 268 Marshall Avenue in order to convert the building from congregate living to individual housing units, to comply with HUD requirements; and
WHEREAS, the Mayor recommends to the City Council, pursuant to Legislative Code § 57.09(1), to amend the Capital Improvement Budget to allocate the $6,789,929.00 for the City to purchase and remodel the property located at 268 Marshall Avenue; and
WHEREAS, pursuant to City Charter § 10.07.1, the Mayor certifies that there are funds in the amount of $6,789,929 available for appropriation in excess of those estimated in the budget; and
WHEREAS, the City will contribute $2,500,000.00 to purchase the land and building located at 268 Marshall Avenue; and
WHEREAS, the City will contribute $3,580,700.00 to make necessary improvements to the property located at 268 Marshall Avenue; and
WHEREAS, the City’s expenditure of $6,789,929.00 for the purchase and rehabilitation of 268 Marshall Avenue to be used for low-income housing is done on terms acceptable to the City’s Director of the Office of Financial Services; and
WHEREAS, on this date, the City Council conducted a public hearing on the City Budget Amendment, after published notice thereof; and
WHEREAS, at said public hearing the City Council heard testimony from all interested parties regarding the City Budget Amendment; and
WHEREAS, the City Council has considered the documentation submitted in support of the actions being taken in this Resolution and has taken into account the information and knowledge gained in hearings upon and during consideration of other matters relating to the developments proposed in this Resolution; and
WHEREAS, the City Council has taken into consideration the recommendations of the City Capital Improvement Budget Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the “City”) as follows:
1. Upon recommendation of the Mayor that $6,789,929.00 in HOME-ARP will be available for appropriation in the 2024 City Capital Project Budget, above what was previously budgeted, the City Council hereby approves the City Budget Amendment, as specified in the attached financial analysis.
2. The Council hereby authorizes and directs that the Director of Planning and Economic Development (“PED”) and PED staff take all actions necessary to implement this Resolution and the appropriate City officials to execute all necessary documents in connection therewith, in consultation with the Office of the City Attorney.
Financial Analysis
See Attachment.
CIB Recommendation
The St. Paul Long-Range Capital Improvement Budget Committee reviewed this request on November 4, 2024 and recommended approval.