Title
Resolution Approving Bond Allocation Transfer Agreement and Related Documents, Citywide
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 Minn Stat Section 469.002, Subd. 14; and
WHEREAS, the pending federal tax reform legislation has created uncertainty on whether tax exempt entitlement bonds will be eliminated in 2018 causing HRA staff to accelerate closing on bond projects before December 31, 2017 using HRA’s current tax-exempt entitlement allocation; and
WHEREAS, the HRA has more requests for bond entitlement than is available and staff has secured a Bond Allocation Transfer Agreement (“Bond Allocation Transfer Agreement”) with the City of Minneapolis to transfer up to $18,098,203 of its 2017 entitlement which it will not be able to use in 2017 and the City of Saint Paul (“City”) is also a party to this Bond Allocation Transfer Agreement since the City receives the federal allocation and then by ordinance designates the HRA to exercise the City’s powers; and
WHEREAS, if Minneapolis determines that tax-exempt bonds are permitted to be issued as private activity bonds from and after January 1, 2018 then the City and HRA will transfer back to Minneapolis the $18,098,203 of bonding authority provided that the City and HRA receive a 2018 allocation in at least this amount; and
WHEREAS Saint Paul City Council will be asked to consider for approval the Bond Allocation Transfer Agreement at its upcoming meeting; and
WHEREAS, by this resolution the HRA finds a public purpose for the actions taken by the HRA Board 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 Board of Commissioners hereby approves and authorizes the execution of the Bond Allocation Transfer Agreement by the Chair/Commissioner, HRA Executive Director and Director, Office of Financial Services of the City, in the form substantially submitted by staff together with any non-significant changes approved by the HRA Executive Director and City Attorney Office.
2. The HRA Executive Director, staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution. The HRA’s Executive Director is authorized to execute any other documents and instruments in connection with this Resolution.