Title
Resolution approving and authorizing the sale and conveyance of 0 7th Street West aka 788 Thurston to West Seventh LLC for the sale price of $8,000, District 9, Ward 3
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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 the Minnesota Statutes sections 469.001 et. Seq.; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota Law; 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 development, and (e) improving the tax base and the financial stability of the community, 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 Minnesota Statutes section 469.002, subd. 14; and
WHEREAS, the HRA owns property located at 0 7th Street West (the “Parcel”) which is legally described as follows: Victoria Park Outlot A to the City of Saint Paul, according to the recorded plat thereof, and situated in Ramsey County, Minnesota; and
WHEREAS, on or around April 6, 2023, the HRA received a proposal from West Seventh LLC with an offer of $8,000.00 for acquisition of the Parcel; and
WHEREAS, the Parcel is adjacent to Pilgrim Dry Cleaners, a business owned by West Seventh LLC; and provides an access point to the business; and
WHEREAS, the Parcel’s size is 3,049.20 square feet and it was determined by an appraisal that its best and highest use is assemblage; and
WHEREAS, West Seventh LLC will maintain the Parcel as is and has no plans to construct any structures on the Parcel; and
WHEREAS; the Parcel is a vacant lot and is therefore subject to the HRA’s Disposition Policy and Procedure for the Sale of Vacant Lots for Market Value (“Disposition Policy”); and
WHEREAS, on April 7, 2023 staff posted a written notice of the offer on ENS in accordance with the notice requirement in the Disposition Policy and did not receive comments or competing proposals; and
WHEREAS, pursuant to the HRA’s Property Valuation Policy, staff obtained a private appraisal of the Parcel which determined a fair market value as of March 23, 2023 of $15,000.00; and
WHEREAS, according to Minnesota Statutes Section 469.032, the HRA is not required to base its sale price upon the appraisal; and
WHEREAS, staff analyzed the offer and has determined that due to not receiving other offers and due to the unique characteristics of the Parcel, which make it best suited for assemblage with the abutting property, a price lower than the appraised value is appropriate. Staff recommends the sale and conveyance of the Parcel to West Seventh LLC for a purchase price of $8,000.00; and
WHEREAS, a notice of public hearing regarding the potential sale and conveyance of the Parcel was published in the Pioneer Press on July 26, 2023 and a public hearing on the matter was held on Wednesday, August 23, 2023; and
WHEREAS, there is a public purpose in selling and conveying the Parcel to West Seventh LLC for ownership and maintenance; now, therefore, be it
RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, as follows:
1. The HRA Board hereby approves the process described above for marketing and sale of the Parcel.
2. The HRA Board hereby approves and authorizes the sale and conveyance of the Parcel to West Seventh LLC.
3. The Parcel shall be sold “as is” by quit claim deed and West Seventh LLC shall be responsible for a $500.00 nonrefundable earnest money payment and for all closing costs.
4. The HRA Board hereby approves and authorizes the Executive Director and staff to take all actions necessary to implement the activities authorized by this Resolution,
5. The HRA Board hereby approves and authorizes the proper officials of the HRA to enter into and execute a purchase agreement with West Seventh LLC consistent with applicable HRA compliance requirements and other documents and instruments necessary to effectuate the actions in this Resolution, provided that such agreements and documents are acceptable in form and substance to the City Attorney’s Office.
6. This Resolution does not constitute a binding legal agreement; rather, the purchase agreement and related documents shall not be effective until executed by the appropriate official(s) of the HRA.