Title
Approval of the March 13, 2013 HRA meeting minutes.
Body
ROLL CALL
Present: Commissioners Brendmoen, Carter, Lantry, Stark
Excused: Commissioners Bostrom, Thune and Tolbert
1. Resolution Electing a Presiding Officer for the March 13, 2013 Board of Commissioners Meeting of the Housing & Redevelopment Authority of the City of Saint Paul, Minnesota
Commissioner made the motion to elect Commissioner Lantry for the March 13, 2013 HRA Board meeting. Approved as set forth in resolution RES 13-442.
VOTE: Yeas - 4 Nays - 0
CONSENT
2. Approval of the February 27, 2013 HRA meeting minutes.
Commissioner Stark moved approval.
VOTE: Yeas - 4 Nays - 0
3. Authorization to Designate the Neighborhood Development Alliance, Inc. as Tentative Developer for the Property at 72 Cesar Chavez Street, District 3, Ward 2
Commissioner Carter moved approval. Approved as set forth in resolution RES 13-332.
VOTE: Yeas - 4 Nays - 0
4. Authorization to Designate the Neighborhood Development Alliance, Inc. as Tentative Developer for the Property at 430 S Robert Street, District 3, Ward 2
Commissioner Carter moved approval. Approved as set forth in resolution RES 13-333
VOTE: Yeas - 4 Nays - 0
PUBLIC HEARING
5. Resolution approving the Sale of Land and Conveyance of Parcel 751 Edgerton Street under the ISP/NSP Program, Payne-Phalen, District 5, Ward 5
Ms. Cecile Bedor, Executive Director for the HRA, stated that the HRA purchased 751 Edgerton in November 2009 with NSP funds for $44,000. This foreclosed two-story, 2,440 square foot home with 5-bedrooms, 3-bathrooms was built in 1887. The property is being sold to Adam Currie and Joanna Schultz based on the after-rehab appraisal and in consideration of NSP costs for $162,500 with an owner-occupancy deed restriction. Total gap assistance is $163,180, with program income estimated at $137,000.
Chair Lantry announced the public hearing. There being no testimony Commissioner Brendmoen moved to close the public hearing and adopt the resolution. Approved as set forth in resolution RES PH 13-63
VOTE: Yeas - 4 Nays - 0
DISCUSSION
6. Approval of a $943,592 Deferred HOME Loan for Rolling Hills District 5, Ward 5
Ms. Bedor stated that Rolling Hills Apartments is a 108 unit, six-building rental housing complex located primarily on the 1300 block of Westminster Street. The HRA provided a $56,000 loan in July 2012 for roof repair. In addition, in October of last year, this body awarded 100% of Saint Paul's 2013 allocation of 9% low-income housing tax credits to this project. Staff is seeking approval to provide the final piece of financing necessary to preserve this affordable housing asset.
Ms. Bedor explained that RH-Saint Paul Development Limited Partnership will own the property and be responsible for all asset management and property management. The General Partners are Lutheran Social Services and RC Enterprises; Richard Pakonen and Clinton Blaiser are the principals of RC Enterprises. RC Enterprises has formed an LLC, RH Developer LLC, which will manage and oversee the rehab and construction work.
This project includes supportive housing for formerly long-term homeless residents, homeless families, refugees, and women served by the Breaking Free program. In addition to Breaking Free, Lutheran Social Services will provide on-site support services. The partners propose to renovate the entire project, and construct a new community building. 102 of the 108 units will be affordable to households at or below 50% of the area median income; the remaining six units will serve residents coming out of long-term homelessness, with incomes at or below 30% of area median income.
Ms. Bedor continued, stating that this is a $14.9 million project; the $943,592 of HOME funds proposed for this project will leverage a $3.0 million first mortgage, nearly $9.5 million in tax credit investor equity, a combined total of $500,000 from MN Housing and the Family Housing Fund, and a note from the seller. The HOME funds are proposed to be structured as a deferred loan at 1% with a 32 year term; the loan is due in full at the end of the term. The rehabilitation work will generate 40 construction jobs.
Ms. Bedor also explained that in consultation with the Center for Sustainable Building Research at the University of Minnesota, the developer is seeking, and staff is recommending, a partial waiver from the Saint Paul Sustainable Building Policy. The Policy applies only to new construction, and as such will apply only to the Community Center portion of the Rolling Hills project. Staff is requesting the partial waiver because the application of the entire policy to the small, 4,000 square foot Community Center will disproportionately increase costs and administrative workload. Instead, staff recommends applying only the Saint Paul Overlay portion of the Policy. Compliance with the Overlay ensures that the building will conserve energy, reduce use of potable water, divert construction waste from landfills, and attain a high level of indoor environmental quality. All of this will be achieved at a relatively lower cost and with minimal administrative effort than if the Policy was applied in its entirety.
Commissioner Stark asked what the balance of the HOME funds would be for the year after these funds are assigned.
Ms. Bedor did not have the balance information available during the meeting, but stated she could provide the information after the meeting. Ms. Bedor explained that another round of HOME funds will be received later this year from HUD.
Commissioner Brendmoen moved approval. Approved as set forth in resolution RES 13-428
VOTE: Yeas - 4 Nays - 0
STAFF REPORT
7. City of Saint Paul 2011 Informational Report on Tax Increment Districts
Ms. Bedor stated that Ms. Jenny Wolfe from PED would be presenting a high level overview of the Tax Increment District report, which was distributed to the Board members prior to the meeting. Ms. Bedor noted that this report is prepared in consultation with Saint Paul Office of Financial Services, the Saint Paul Port Authority, and was reviewed by Zandy Iverson prior to the report being distributed. Ms. Bedor noted that Ms. Laurie Hansen and Mr. Bruce Kessel from the Saint Paul Port Authority were present, as was John North from Saint Paul Office of Financial Services.
Ms. Wolfe gave a presentation highlighting various sections within the report.
ADJOURNMENT
Commissioner Stark moved adjournment. The HRA meeting was adjourned.