Title
Authorizing the non-use of a Project Labor Agreement (PLA) on the Sherburne Collective project at 652 Sherburne Avenue (District 7, Ward 1).
Body
WHEREAS, the Saint Paul City Council adopted a policy on the use of Project Labor Agreements (“PLA”) pursuant to Council File #09-584 for projects involving $250,000 or more of City money;
WHEREAS, the Sherburne Collective that includes Model Cities of Saint Paul, Inc. and Rondo Community Land Trust, both Minnesota non-profit corporations or another entity that is affiliated with and controlled by the Sherburne Collective (the “Developer”), will undertake to rehabilitate a vacant multi-family residential property into 6 units affordable at 30% of Area Median Income at the property located at 652 Sherburne Avenue (“Project”);
WHEREAS, on October 25, 2023, through RES PH 23-329 the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) provided a financial allocation in the total of amount of $1,335,779.00 to help with the rehabilitation work of the Project;
WHEREAS, the use of the PLA is one of the requirements attached to the HRA financing;
WHEREAS, Planning and Economic Development staff sent written “Notice and Request for Recommendation on the Use of a PLA” to interested parties on November 15, 2023 with only one response received from the Saint Paul Building and Construction Trades Council;
WHEREAS, the Saint Paul Building and Construction Trades Council responded stating “multi-craft, length, dollar amount, safety” as reasons they recommend a PLA for projects identified herein; and
WHEREAS, in considering criteria for evaluating a PLA as outlined in Council File #09-584 and past practices on similar projects, a PLA will not benefit the Project for the following reason: (1) the substantial increase to overall construction costs that the use of the PLA will generate, (2) the need for additional subsidy to cover the increases would delay the Project and jeopardize federal, county, and local resources that have strict obligation deadlines, (3) the need to keep working with D & J Steele Construction, Incorporated as a general contractor, a contractor that has been involved with the Project since the inception and is not unionized; now, therefore be it,
RESOLVED, that the City Council of the City of Saint Paul:
1. that the City Council hereby authorizes the non-use of a PLA on the Sherburne Collective project at 652 Sherburne Avenue.; and
2. that the City Council hereby authorizes the appropriate city officials to draft and execute such documents as are necessary to implement this resolution.