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Approving the Establishment of the Grand and Victoria Redevelopment Project Area and the Grand and Victoria Tax Increment Financing District (a Redevelopment District) and Approving the Adoption of a Redevelopment Plan and Tax Increment Financing Plan Therefor and the use of a Project Labor Agreement.
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WHEREAS, the City Council of the City of Saint Paul, Minnesota (the “City Council”) has the statutory responsibility under Minnesota Statutes section 469.028, to approve redevelopment plans and projects of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”), after public hearing thereon; and
WHEREAS, Minnesota Statutes section 469.175 requires that before a county auditor may certify a tax increment financing district created under Minnesota Statutes section 469.174 to 469.1794 (the “TIF Act”), the governing body of the municipality must approve the tax increment financing plan after a public hearing thereon; and
WHEREAS, the HRA proposes to establish the Grand and Victoria Redevelopment Project Area (the “Project Area”), and has submitted to the City Council a redevelopment plan (the “Redevelopment Plan”) therefor; and
WHEREAS, the proposed Redevelopment Plan identifies conditions existing in the proposed Project Area, contains an identification of need and a statement of purpose and objectives, land uses and standards for development for carrying out a redevelopment project, and lists the redevelopment activities and techniques to be employed in carrying out these objectives, including provision for the elimination of conditions of substandardness, blight and deterioration existing in identified neighborhood areas by private development and construction or rehabilitation of real property for housing with provision of public parking and other public improvements to be provided, development and redevelopment to occur, and sources of revenue to pay redevelopment costs within the Project Area; and
WHEREAS, the City of Saint Paul Planning Commission has reviewed the Redevelopment Plan for the Project Area and approved the same as being in conformity with the 2040 Saint Paul Comprehensive Plan, the general plan for the development and redevelopment of the City as a whole, on November 14, 2025, by Resolution File Number 25-47; and
WHEREAS, the HRA has asked the City Council to approve the creation, within the Project Area, of the Grand and Victoria Tax Increment Financing District (a redevelopment district) as a redevelopment tax increment financing district under Minnesota Statutes section 469.174, subdivision 10 (the “TIF District”), and the adoption of a Tax Increment Financing Plan (the “TIF Plan”) therefor, all pursuant to and in accordance with the TIF Act; and
WHEREAS, the HRA proposes to undertake a project in the Project Area and has received a proposal from 845 Grand LLC, a Minnesota limited liability company (the “Developer”), that the Authority assist with certain public costs to redevelop the Project Area, which contains vacant and substandard buildings, with the construction of a mixed-use development consisting of approximately 12,800 square feet of commercial space on the first floor, approximately 90 residential units, approximately 22 public parking stalls and approximately 99 residential parking stalls and related improvements (the “Project”) and intends to recommend the approval of a development agreement with the Developer in connection therewith following creation of the Project Area and TIF District and the City Council and the HRA’s approval of the Redevelopment Plan and TIF Plan; and
WHEREAS, the TIF District is being established to facilitate the Project; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the creation of the TIF District and adoption of the TIF Plan therefor, including, but not limited to, notification of the Ramsey County Commissioner representing the area of the County in which the TIF District is located and transmitting a copy of the TIF Plan to Ramsey County and Independent School District Number 625, which have taxing jurisdiction over the property to be included in the TIF District; and
WHEREAS, the City Council adopted a policy on the use of Project Labor Agreements (“PLA”) pursuant to Council File #09-584 for projects involving a City or HRA contract with $250,000 or more in City or HRA money; and
WHEREAS, the Project includes a proposed financing contract over $250,000, which will be financed by a taxable tax increment financing note issued by the HRA; and
WHEREAS, Planning and Economic Development staff sent written “Notice and Request for Recommendation on the Use of a PLA” to interested parties on November 10, 2025, with only one response received from the St. Paul Building and Construction Trades Council on November 24, 2025; and
WHEREAS, the St. Paul Building and Construction Trades Council responded stating “multi-craft, dollar amount, length of project” as reasons they recommend a PLA for the Project; and
WHEREAS, on this date, the City Council conducted a public hearing on the Redevelopment Plan and TIF Plan, after published notice thereof; and
WHEREAS, at the public hearing the City Council heard testimony from all interested parties on the Redevelopment Plan and TIF Plan; and
WHEREAS, the City Council has considered the findings and determinations of the City of Saint Paul Planning Commission and the City and HRA respecting the Project, Project Area, Redevelopment Plan, TIF District and TIF Plan, together with the documentation submitted in support of the same and has taken into account the information and knowledge gained in the hearing upon and during consideration of the matters relating to the Project for the Project Area.
NOW, THEREFORE, BE IT RESOLVED by the City Council, as follows:
Section 1. Findings and Approval of Project Area and Redevelopment Plan.
1.01 It is hereby found and determined that the undertakings and the site of the Project Area constitute a “redevelopment project” within the meaning of Minnesota Statutes section 469.002, subdivision 14; that the land in the Project Area would not be made available for, nor would redevelopment be financially feasible without the public financial assistance proposed for the development; that the Redevelopment Plan will afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment of the Project Area by private enterprise; and that the Redevelopment Plan conforms to the 2040 Saint Paul Comprehensive Plan, and the general plan for the development of the locality as a whole.
1.02 The Redevelopment Plan and the redevelopment project activities thereby proposed are hereby adopted and approved as necessities and in the public interest by removing conditions of blight and deterioration by preventing the spread of deteriorating conditions through redevelopment of cleared or renovated property, by preserving and enhancing the municipal tax base, by providing housing opportunities, including housing facilities for all income levels, and by providing necessary public improvements, serving the public safety, health, morals and general welfare of the residents of this City and State, by promoting the sound growth and development of neighborhoods and communities.
1.03 The Project Area is hereby established and the Redevelopment Plan is hereby adopted and approved by the HRA.
Section 2. Findings for Creation of TIF District and Adoption of a TIF Plan therefor.
2.01 The City Council hereby finds that the creation of the TIF District and the adoption of the TIF Plan therefor are intended and, in the judgment of the City Council, the effect will be, to carry out the objectives of the Redevelopment Plan by creating an impetus for the redevelopment of blighted structures and the construction of mixed-use rental housing, commercial space, parking and related improvements in the City, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and TIF Plan.
2.02 The City Council hereby finds that the TIF District qualifies as a “redevelopment district” within the meaning of the TIF Act for the following reasons:
(a) The TIF District is a redevelopment district established pursuant to Minnesota Statutes section 469.174, subdivision 10(a)(1). The reasons and supporting facts for these determinations are set forth in that certain Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District - 857 Grand Redevelopment TIF District, prepared for the City of Saint Paul, Minnesota by LHB, Inc., dated October 15, 2025 (the “Redevelopment Assessment Report”), copies of which are on file with the Executive Director of the HRA. These findings are based in part upon on-site examination and written reports substantiating the structurally substandard nature of the buildings.
(b) The TIF District currently contains two parcels. Both parcels are occupied since they meet the requirements of Minnesota Statutes section 469.174, subdivision 10(e) in that at least 15% of the area of each of these parcels is occupied by buildings, streets, utilities, paved or gravel parking lots or similar structures. The parcels consist of 100% of the area of the TIF District, which is greater than 70%. In addition, there are three buildings located in the TIF District. As set forth in the Redevelopment Assessment Report all three buildings (i.e. 100%) are “structurally substandard” to a degree requiring substantial renovation or clearance. The “structurally substandard” buildings were not in compliance with the building code applicable to new buildings, and the costs of modifying the buildings to satisfy the building code would be more than 15% of the cost of constructing structures of the same square footage and type on the site.
2.03 The City Council hereby makes the following additional findings:
(a) The City Council further finds that the proposed development, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being:
The property on which the development will occur would not be redeveloped in the reasonably foreseeable future because it currently contains structurally substandard buildings that have been underutilized for many years. The anticipated costs to redevelop the property that achieves many City goals and objectives is unlikely to occur without public financial assistance. The Developer has represented that the development is not feasible without tax increment financing assistance.
(b) The City Council further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being:
The TIF Plan will generally compliment and serve to implement policies adopted in the City’s comprehensive plan. The contemplated Project is in accordance with the Redevelopment Plan and the City’s 2040 Comprehensive Plan.
(c) The City Council further finds that the TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the TIF District by private enterprise. The specific basis for such finding being:
The proposed development to occur within the TIF District is mixed-use housing and commercial space. The development will increase the taxable market valuation of the City, expand commercial space and access to local jobs and increase the housing supply in the City with the completion of the development contemplated by the TIF Plan.
(d) For purposes of compliance with Minnesota Statutes section 469.175, subdivision 3(2), the City Council hereby finds that the increased market value of the property to be developed within the TIF District that could reasonably be expected to occur without the use of tax increment financing is $0, which is less than $15,494,848, which is the increase in the market value estimated to result from the proposed development (i.e., approximately $20,034,200) after subtracting the present value of the projected tax increments for the maximum duration of the TIF District (i.e., approximately $4,539,352). In making these findings, the City Council has noted that the property has not been redeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the use of tax increment financing will be a positive net gain to the City, the School District, and the County, and the tax increment assistance does not exceed the benefit which will be derived therefrom.
(e) The City Council elects to retain all of the captured tax capacity to finance the costs of the TIF District. The City Council elects the method of tax increment computation set forth in Section 469.177, Subdivision 3(b) of the TIF Act.
(f) The City Council elects to delay the first year to receive increment until tax payable year 2028.
(e) The provisions of this Section 2 are hereby incorporated by reference into and made a part of the TIF Plan.
Section 3. Creation of TIF District and Approval of the TIF Plan therefor.
3.01 The creation of the TIF District and the adoption of the TIF Plan therefor are hereby approved.
3.02 The HRA’s Executive Director and staff of the HRA and the HRA's advisors and legal counsel are authorized and directed to proceed with the establishment and implementation of the TIF District, the TIF Plan and this Resolution and for this purpose to negotiate, draft, prepare and present to the Board of Commissioners of the HRA for its consideration all further plans, resolutions, documents and contracts necessary for this purpose.
3.03 Upon approval of the HRA, the staff of the HRA and the City is directed to file a copy of the TIF Plan with the County Auditor of the County (the “County Auditor”) and to request the County Auditor to certify the original tax capacity of the TIF District.
3.04 The staff of the HRA and the City is also directed to file a copy of the TIF Plan with the Commissioner of Revenue and the Office of the State Auditor within 60 days after the latest of: (a) the filing of the request with the County Auditor to certify the TIF District and (b) the date of approval of the TIF Plan by the City and the HRA.
Section 4. Authorization for Use of a Project Labor Agreement (PLA).
4.01 The City Council hereby approves the use of a PLA on the Project.
4.02 The City Council hereby authorizes the appropriate City officials to draft and execute such documents as are necessary to implement the use of a PLA.