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Reservation of Funds for Certain Saint Paul Projects Applying for Funding from the Minnesota Housing Finance Agency
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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 proceeding toward 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 “HRA Sites”); and
WHEREAS, there are three additional privately owned properties proceeding toward redevelopment: (i) the Torre de San Miguel project owned by CommonBond Communities at 58 E. Wood Street, (ii) a site at 470 White Bear Avenue being purchased by Beacon Interfaith Housing, and (iii) the scattered site Ramsey Hill project located in the Cathedral Hill neighborhood (collectively, the “Private Sites”, and together with the HRA Sites, the “Subject Sites”); and
WHEREAS, the Minnesota Housing Finance Authority (“MHFA”) requires developers of the aforesaid Subject Sites, each of whom are applying for funding via the MHFA 2025 Consolidated 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 contribute to the likelihood of obtaining MHFA funding; and
WHEREAS, the HRA prioritizes the redevelopment of the three HRA Sites and desires to see redevelopment of the Private Sites as the projects collectively represent the creation and preservation of approximately 460 units of affordable housing; and
WHEREAS, staff has determined the maximum funding proposed for the Saint Paul projects is reasonable, and will still be subject to underwriting and final approval by the HRA, represents a positive public use and purpose, and will provide a range of affordable housing opportunities; and
WHEREAS, various 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 Hamm’s site at 680 & 694 Minnehaha Avenue for the East End Apartments project and approves a purchase price of $300,000 for the 2.5 acres of HRA owned land; and
2. 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 $57,820 for the 2.18 acres of HRA owned land; and
3. 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 0.22 acres of saidHRA owned land; and
4. the Board authorizes reservation of up to $1,000,000 for the redevelopment of the Torre de San Miguel project located at 58 E. Wood Street; and
5. the Board authorizes reservation of up to $500,000 for the development of the Aragon project located at 470 White Bear Avenue; and
6. the Board authorizes reservation of up to $1,400,000 for redevelopment of the scattered site Ramsey Hill project located in the Cathedral Hill neighborhood; and
7. 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 2025 funding, and thereafter all appropriate formalities are to be followed.