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Authorization to Designate the Neighborhood Development Alliance, Inc. as Tentative Developer for the Property at 72 Cesar Chavez Street, in District 3.
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has duly adopted and there is now in legal effect a City-Wide Comprehensive Plan/Redevelopment Plan for the acquisition, rehabilitation and resale of properties which identify the District del Sol, District 3 area as part of this plan: and
WHEREAS, the City of Saint Paul recognizes the problems created by deteriorated and blighting buildings, inappropriate land use and vacant/underutilized land in its neighborhoods, and also recognizes the need to take the initiative to address these issues by providing redevelopment opportunities in a wide range of economic diversity which could include improving neighborhood commercial corridors in order to revitalize and stabilize our existing neighborhoods which in turn assist in improving the City's attractiveness for business development and bringing new jobs into the community; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Chapter 469 of the Minnesota Statutes, Housing and Redevelopment Act (the "Act") and by authority of said Act engages in activities related to: 1) housing projects and development; 2) removal and prevention of the spread of conditions of blight and deteriorations; 3) bringing substandard buildings and improvements into compliance with public standards; 4) disposition of land for private development; and 5) improving the tax base and the financial stability of the community; and engages in the aforementioned activities when redevelopment or development needs cannot be met through reliance solely upon private initiative, and may engage in said activities in targeted neighborhoods; and
WHHEREAS, the HRA had a $300,000.00 mortgage on 72 Cesar Chavez Street, which was owned by the Riverview Economic Development Association; and
WHEREAS, the Riverview Economic Development Association has recently surrendered title and has entered into a Deed in Lieu of Foreclosure with the HRA for 72 Cesar Chavez; and
WHEREAS, HRA staff received a proposal for redevelopment of the now HRA-owned parcel at 72 Cesar Chavez Street from the Neighborhood Development Alliance, Inc; and
WHEREAS, according to the HRA's Disposition Policy, HRA staff posted a public notification and request for proposals on the City's web page from April 20, 2012 to June 25, 2012; and
WHEREAS, no further proposals have been received by HRA staff; and
WHEREAS, after reviewing the submitted proposal, staff recommends accepting the proposal from the Neighborhood Development Alliance, Inc. for 72 Cesar Chavez Street to construct a mixed-use residential/commercial building (the "Project"); and
NOW, THEREFORE, BE IT RESOLVED that the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that the Neighborhood Development Alliance, Inc. be designated as Tentative Developer for 72 Cesar Chavez Street for a period of 365 days, within which period of time the Tentative Developer, at its own cost, will complete the following:
1. Within 365 days, complete a formal scope of work with architectural/engineering plans and specifications to include a site plan, elevations, incorporate Green/Sustainable Development guidelines, exterior treatments/materials and interior schematics for review by HRA and suitable for submission to the Department of Safety and Inspections to obtain the proper building permits.
2. Within 365 days, submit evidence of availability of construction financing for review by HRA staff for acceptability.
3. Finalize a detailed development budget and businesses plan for approval by the HRA staff.
4. A final and HRA approved scope of work must be completed within the 365-day tentative developer period.
5. Within 365-days receive all approvals for zoning, licenses and any other required City or State approvals required for the Project.
6. Negotiate final terms and conditions of a development agreement which will include review of all compliance requirements, details of the bidding process and sworn construction cost statement from their selected contractor for the Project.
BE IT FURTHER RESOLVED, that the Tentative Developer will pay the 2012 ($15,559.04) and 2013 ($19,416.85) property taxes, and all assessments for those years, at 72 Cesar Chavez Street.
BE IT FURTHER RESOLVED if the Tentative Developer does not timely complete the tasks specified in this Resolution by the stated deadlines or abide by its restrictions, the Tentative Developer status shall terminate without further action by this Board.