Title
Approval of the December 22, 2011 HRA Special Meeting Minutes.
Body
RECONVENE
ROLL CALL
Present: Commissioners Carter, Harris, Lantry, Stark, Thune
Excused: Commissioners Bostrom, Helgen
PUBLIC HEARING
Conveyance of Land from the HRA to Penfield Apartments LLC
This item was continued from the December 21, 2011 HRA meeting.
Chair Thune announced the public hearing.
Ms. Cheryl Golden-Black, 805 East Fourth St, Saint Paul, MN 55106; and Ms. Ginny Harris, 111 Kellogg Blvd East #1402, Saint Paul, MN 55101 gave testimony opposing the project.
Chair Thune stated that the Board would continue to hear testimony at 4:30 p.m.
The Board agreed to take action on several other items on the agenda until the public hearing continuance.
CONSENT
1. Approval of the December 14, 2011 HRA meeting and Continuation meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 5 Nays - 0
2. Authorization to Enter into a License Agreement and Consent to and Waiver of Special Assessment Appeal at 672 University Avenue West, District 8
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2554
VOTE: Yeas - 5 Nays - 0
3. Authorization to Extend a Lease for Temporary Parking at 1644 University Avenue West as part of the Neighborhood Commercial Parking Program Project in the Block at the Northwest Corner of Snelling and University, Districts 11 and 13
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2556
VOTE: Yeas - 5 Nays - 0
4. Resolution Authorizing Approval of 2011 Technical Budget Amendment and Interfund Loan Under the Tax Increment Financing Act.
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2569
VOTE: Yeas - 5 Nays - 0
5. Resolution Approving Amended Spending Plan Related to the Jobs Bill
Commissioner Lantry pulled this item from the Consent agenda for further discussion.
Ms. Cecile Bedor, Executive Director of the HRA, stated that this action was a housekeeping item. In April 2010, the Minnesota legislature enacted the Jobs Bill, which included provisions to expand the use of Tax Increment Financing to stimulate job creation. The Bill required that a spending plan be adopted by the City Council and the HRA; this was completed in September 2010. In May 2011, the Minnesota legislature extended the Jobs Bill legislation for one year. Today's action is to take advantage of this extension, extending the City's options for another year.
Commissioner Lantry asked what was being done with the funds that have not been designated to any certain project.
Ms. Jenny Wolfe of PED stated that staff does not believe that additional funds will be available. The TIF district budget is a multi-year budget and staff did not want to reduce the amounts in the spending plan, in case the amounts do come in higher. At this point the projections are that the City will not be able to spend the undetermined Jobs bill money. The undetermined dollar amounts will require action from the Board to be placed in a different account.
Commissioner Lantry asked if there was a way to pledge this money in the out years because staff anticipates by 2016 that the City will have this revenue through a budget amendment.
Ms. Wolfe agreed with Commissioner Lantry's statement.
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2570
VOTE: Yeas - 5 Nays - 0
DISCUSSION
6. Resolution Approving and Authorizing the Execution of Development Agreement and Certain Loan Agreements for the Schmidt Brewery Lofts Rental Housing Project.
Ms. Bedor stated that in September 2011, as part of the Jobs Bill Spending Plan, the Board had approved partial funding for the Schmidt Brewery housing project. Staff is seeking approval of the balance of the funding.
The project utilizes approximately eight of the fifteen acres of the Schmidt Brewery site located on the south side of West Seventh Street and includes the renovation and adaptive reuse of two historic buildings that have sat vacant for nearly ten years. This substantially underutilized industrial site presents a prime opportunity for redevelopment along West Seventh, a major transit corridor, while preserving a significant part of Saint Paul's history.
In addition to providing affordable housing, the project will clean up a polluted site, preserve and adaptively reuse challenging historic structures, and re-open and construct new public infrastructure to integrate the site into a mostly residential neighborhood.
The Developer plans to convert the Brew House into 148 units of rental housing, and the Bottle House into 100 units. In addition, there is a strip of currently vacant land on the east side of the site where 13 new rental townhomes will be built. The new construction townhomes will have attached garages; the balance of the units will have surface parking. 100% of the units will be income-restricted to tenants with incomes at or below 60% of the Area median Income (AMI). In addition, at least ten percent (10%), or 27 units, will be affordable to households with incomes at or below fifty percent (50%) of AMI.
The project will be targeted to artists. Amenities will include a clay studio, paint studio, community/club room, fitness room, sound studios, media studios, dance studio, performance and practice studios, and gallery space.
The Developer, Dominium Development and Acquisition, LLC has extensive multi-family housing experience both in terms of managing and developing units. They operate over 19,000 units in 18 states. Recently in Saint Paul, they completed 808 Berry Place, a new construction luxury apartment building off of University Ave and Highway 280. They have also acted as the developer consultants and oversaw the development of Carleton Place Lofts also on University Avenue.
Dominium Development gave a brief power point presentation later in the meeting.
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2575
VOTE: Yeas - 5 Nays - 0
SUSPENSION
9. Resolution Approving and Authorizing Execution of the First Amendment to Subcontract for Credit Counseling Services Agreement with Minnesota Home Ownership Center.
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2628
10. Resolution Authorizing Participation in the Foreclosure Prevention Re-Housing Grant Program for the Mortgage Foreclosure Prevention Program.
Commissioner Lantry moved approval. Approved as set forth in Resolution RES 11-2638
RECESS
The HRA was in recess until 4:30 p.m.
RECONVENE
ROLL CALL
Present: Commissioners Bostrom, Carter, Harris, Helgen, Lantry, Stark, Thune
PUBLIC HEARING
Conveyance of Land from the HRA to Penfield Apartments LLC
The Public Hearing Continued.
Chair Thune announced the public hearing and stated that the Board would hear testimony for opposing and supporting statements for 15 minutes each side.
Testimony opposing the project was taken from the following individuals:
Ann White, 1731 Portland Ave, Saint Paul, MN 55104
Arline Datu, 1723 Highland Pkwy, Saint Paul, MN 55116
Mary Vitcenda, 535 S Lexington Pkwy #202, Saint Paul, MN 55116
Vaughn Larry, 109 Hatch Ave W, Saint Paul, MN 55117
Ann Jalonen, 105 University Ave W, Saint Paul, MN 55103
Tim Thompson, 570 Asbury St, Saint Paul, MN 55104
Margaret Kaplan, 382 Banfil St, Saint Paul, MN 55102
Testimony supporting the project was taken from the following:
Matt Kramer, 401 N Robert St Suite 150, Saint Paul, MN 55101
Patrick Seeb, 25 W 6th St, Saint Paul, MN 55105
Bernie Hesse, 1602 Thomas Ave, Saint Paul, MN 55104
Maureen Ramirez, 101 E 5th St #240, Saint Paul, MN 55101
Andrew Schlack, 350 Saint Peter St #1011, Saint Paul, MN 55102
Bob Spaulding, 66 E 9th St #1714, Saint Paul, MN 55101
Rich Pakonen, 199 Wildwood Ave, White Bear Lake, MN 55110
Larry Englund, 162 College Ave, Saint Paul, MN 55102
Karen Avaloz, 330 Irvine Ave, Saint Paul, MN 55102
Commissioner Lantry moved to close the public hearing. The public hearing was closed.
VOTE: Yeas - 7 Nays - 0
7. Resolution Approving Administrative Budget Amendments to Tax Increment Plans for the Spruce Tree, Snelling University and Saint Paul Neighborhood Scattered Site Tax Increment Financing Districts (Central Corridor Project)
This action involves moving the financing from TIF districts in Ward 4 and Ward 1, Snelling University TIF district, and the Spruce Tree TIF district, which created excess tax increment over a number of years. Initially the funds were allocated, by this body, for streetscape improvements along the Central Corridor. This Board action today is to move those funds into another project, the Penfield. Commissioner Stark noted that supporters of the project made good arguments for the project; it's a positive project with a lot going for it, but we have a lot of projects that we'd love to get done all across the City that would benefit a lot more people.
Commissioner Stark continued, stating that reallocating resources that had been assigned to improve a particular part of the City to a different part seems problematic and therefore he will not support this action.
Ms. Bedor stated that the Council and HRA allocate money for projects; not money for particular areas in the City. The Council identified several betterment improvements they wanted for Central Corridor; staff identified a project budget, and actual costs came in lower than projected. What the Mayor Coleman and the Council directed be implemented was implemented. The savings are being returned per previous council action, and thus a portion of the savings are available for new projects such as the Penfiled.
Commissioner Stark stated that this excess TIF was being generated by TIF districts along University Avenue and thus should stay on University Avenue.
Commissioner Carter stated that he doesn't see this project as the right priority and that the Board has had many conversations about the important goals around Central Corridor.
Commissioner Lantry stated that she was angry about the process in which the scheduling of the special meeting was handled. Chair Thune explained in detail his process for scheduling the meeting.
Commissioner Harris moved approval. Approved as set forth in resolution RES 11-2568.
VOTE: Yeas - 4 Nays - 3 (Carter, Lantry, Stark)
8. Resolution Approving Financing Plan and Budget Amendment for Penfield Project; Conveyance of Property of Penfield Apartments, LLC; Conditional Approval to Tax Increment Financing; Acceptance of Ramsey County Environmental Response Fund Award; Closing of the Dougherty Loan and Related Actions; and Miscellaneous Actions, District 17.
Mr. Pete McCall, City Attorney for the HRA stated that Commissioner Harris had amendments prepared for the resolution.
Commissioner Harris stated that he had discussed the amendments with the Board members prior to the meeting. An amended resolution was distributed with the proposed changes.
The amendments to the resolution are as follows:
· Strike "City of Saint Paul and HRA Loan Agreement;" from the title.
· Change the total of structured parking spaces from 3 to 328.
· From the # 2 paragraph; strike "subject to City Council approval", "to the execution of an internal loan agreement between the City of Saint Paul and HRA on the terms set forth in the staff report", and add "for a capital contribution of $2,377,524 from Fund 119 for the project."
· Add paragraph #11 "The HUD guarantee shall be in place for the full amount of both HUD mortgages (HUD mortgage 1st in the approximate amount of $34,940,400 and HUD TIF mortgage in the approximate amount of $6,012,500) before construction."
· Add paragraph #12 "The 'Net Cash Flow After Priority Payments' shall be allocated in the following priority order:
A. The $1,505,424 Fund 117 capital contribution shall be reimbursed.
B. After the $1,505,424, Fund 117 capital contribution is reimbursed, 50% shall be allocated to Fund 117 for the HRA for development uses and 50% for the City General Fund expenditures such as property tax relief, fire, police etc."
Commissioner Helgen moved to amend the amendment by striking "such as property tax relief, fire, police etc." to which Commissioner Harris agreed.
Commissioner Lantry moved approval of the amendments. Amendments approved.
VOTE: Yeas - 7 Nays - 0
Commissioner Lantry stated that she understands what is at stake with the Penfield and she understands the perspective of the supporters of the project, but she respectfully disagrees and believes the project presents too great a risk for the HRA.
Commissioner Carter stated that there has been a lot of community process around this project and given the fact that this is going to pass, he hopes it is successful. He also stated that a grocery store downtown can be a really good thing, but that he too is concerned with the risk.
Commissioner Bostrom stated that he supports the project, but believes a skyway connection would make the project more successful.
Commissioner Stark stated that whenever the City puts significant public money into housing there should be an affordability component. Commissioner Stark stated he gives a lot of credit to the staff that have been figuring out how to make this project work, and that his main argument against the project is related to the lack of affordable housing.
Commissioner Harris stated that there is an element of risk in the project and that he is happy with the amendments that were approved. He believes the project will be an incredible asset to the community.
Chair Thune thanked everyone for speaking from the heart about their concerns. Chair Thune especially thanked the downtown residents that participated in the many community meetings to get this project to where it is; he also thanked PED staff that worked tirelessly through many changes, delivering a product that will be transformative to downtown.
Commissioner Harris moved approval. Approved as set forth in resolution RES PH 11-1216
Ms. Bedor gave special thanks to Al Carlson, leading the housing team; Marie Franchett, key project manager; Patty Lilledahl and Jenny Wolfe, and staff from the Office of Financial Services,Todd Hurley,and Bob Geurs.
ADJOURNMENT
Commissioner Lantry moved adjournment. The HRA meeting was adjourned.