Title
Resolution approving the adoption of a Sixth Amendment to the Tax Increment Financing Plan for the Ford Site Redevelopment Tax Increment Financing District and authorizing the execution of related documents, including a new Development Agreement for Block 2 and amendments to the redevelopment agreement, minimum assessment agreement and related documents; and approving an HRA budget amendment; District 15, Ward 3
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) has heretofore established the Ford Site Redevelopment Project Area (the “Project Area”) and has adopted a redevelopment plan therefor (the “Redevelopment Plan”) pursuant to Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended (the “HRA Act”); and
WHEREAS, the Redevelopment Plan contains an identification of need and statement of objectives and program of the HRA for carrying out a redevelopment project, including property to be acquired, public improvements to be provided, development and redevelopment to occur, and sources of revenue to pay redevelopment costs within the Project Area; and
WHEREAS, it has been proposed that the HRA amend the Tax Increment Financing Plan (the “TIF Plan”) for the Ford Site Redevelopment Tax Increment Financing District (the “TIF District”), which is located in the Project Area and was heretofore created as a redevelopment tax increment financing district under Minnesota Statutes, Section 469.174, Subdivision 10, pursuant to and in accordance with the HRA Act and Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the “TIF Act”); and
WHEREAS, the HRA has investigated the facts and has caused to be prepared a Sixth Amendment to the Tax Increment Financing Plan (the “6th Amendment to TIF Plan”) in connection with amending the budget for the TIF District, pursuant to Section 469.175, Subdivision 4(b) of the TIF Act; and
WHEREAS, the HRA or the Council has or will have performed all actions required by law to be performed prior to the approval of the 6th Amendment to TIF Plan, including, but not limited to, notification of the Ramsey County Commissioner representing the area of Ramsey County (the “County”) in which the TIF District is located and delivering a copy of the 6th Amendment to TIF Plan to the County and Independent School District Number 625 (the “School District”), both of which have taxing jurisdiction over the property included in the TIF District; and
WHEREAS, the City Council of the City of Saint Paul, Minnesota (the “City”) will hold a public hearing on this same date on the approval of the 6th Amendment to TIF Plan, and will consider a resolution to approve the 6th Amendment to TIF Plan; and
WHEREAS, in connection with the 6th Amendment to TIF Plan, Project Paul, LLC (the “Developer”) has proposed certain amendments to various documents related to the development of the property in the TIF District including without limitation (i) that certain Redevelopment Agreement, dated December 18, 2019, between the City, the HRA, and the Developer (as previously amended, the “Original RDA”), and joined in with respect to certain property within the Redevelopment TIF District, by MN Ford Site Apartment Land LLC (“Weidner”) in accordance with a separate Joinder to Redevelopment Agreement, dated December 19, 2019 (the “Joinder to RDA”), setting forth the terms and conditions under which the City and the HRA agreed to provide certain public financial assistance to the Developer for a portion of the cost of the redevelopment to occur in the Project Area, and (ii) that certain Minimum Assessment Agreement dated as of December 18, 2019 between the City, the HRA, and the Developer (as previously amended, the “Original MAA”) pursuant to (a) a Second Amendment to Redevelopment Agreement (Highland Bridge) between the City, the HRA, and the Developer (the “Amendment to RDA”), (b) that certain Agreement Concerning Development Obligations (Weidner Lots at Highland Bridge, Saint Paul, Minnesota) between the City and Weidner (the “Weidner Agreement”), and (c) a Second Amendment to Minimum Assessment Agreement (Highland Bridge) between the City, the HRA, and the Developer (the “Amendment to MAA”), and (d) a Collateral Assignment of Redevelopment Agreement and Site Improvement Performance Agreement (the “Collateral Assignment”), between the Developer, Park State Bank, the HRA, and the City, replacing a prior collateral assignment of the RDA; and
WHEREAS, the County Board, on May 13, 2025, and the School District, on April 22, 2025, have, or will have approved the Amendment to MAA prior to its execution in accordance with Section 469.177, subdivision 8 of the TIF Act; and
WHEREAS, in connection with the 6th Amendment to TIF Plan, Highland Bridge Property Owner, LLC (the “Block 2 Developer”) has proposed a Development Agreement between the HRA and the Block 2 Developer setting forth certain terms under which the HRA will provide certain public financial assistance to the Block 2 Developer for a portion of the cost of the construction and equipping of a mixed-use development on the property referred to as Block 2 in the TIF District (the “Block 2 Development Agreement”); and
WHEREAS, the City Council of the City will hold a public hearing on this same date on the business subsidy to be provided under the Block 2 Development Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the “Board”) of the HRA as follows:
Section 1. Findings for the Approval of 6th Amendment to TIF Plan. The Board hereby finds that the 6th Amendment to TIF Plan is intended and, in the judgment of the Board, its effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for development and redevelopment activities in the Project Area, including, but not limited to, developing or redeveloping sites, lands or areas within the Project Area, providing necessary public improvements in the Project Area, and otherwise promoting certain public purposes and accomplishing certain objectives as specified in the Redevelopment Plan and the TIF Plan, as amended. The TIF Plan is being amended to amend the budget for the TIF District. The budget amendment merely reallocates expenditures from the interest expense line item to other project expenses and does not increase the budget or change the development proposed for the TIF District. Consequently, the amended TIF Plan does not change the fiscal and economic impact of the TIF District on the taxing jurisdictions compared to the findings made in connection with the establishment of the TIF District, as previously amended. The Board hereby ratifies and confirms the findings made in connection with the establishment of the TIF District, including without limitation that the TIF District qualifies as a redevelopment district that meets the criteria of section 469.174, subdivision 10. In particular, the Board finds that the proposed developments and redevelopments to be assisted from tax increments of the TIF District, in the opinion of the Board, would not occur solely through private investment within the reasonably foreseeable future and, as set forth in Section 13 of the original Tax Increment Financing Plan, the increased market value of property in the Project Area that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan and, therefore, the use of tax increment financing is deemed necessary.
Section 2. Approval of the 6th Amendment to TIF Plan.
2.01 Contingent upon approval by the City Council of the City after the public hearing, the 6th Amendment to TIF Plan is hereby approved and adopted and the 6th Amendment to TIF Plan shall be placed on file in the office of the Executive Director of the HRA.
2.02 The HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the 6th Amendment to TIF Plan and to negotiate, draft, and prepare all further plans, resolutions, documents and contracts necessary for this purpose.
2.03 Upon approval by the City Council of the City of the 6th Amendment to TIF Plan, the staff of the HRA is hereby directed to file a copy of the 6th Amendment to TIF Plan with the County Auditor of the County. The staff of the HRA is also directed to file a copy of the 6th Amendment to TIF Plan with the Commissioner of Revenue and the Office of the State Auditor.
Section 3. Approval and Execution of Documents.
3.01 Approval of Development Documents. The Board hereby approves the Amendment to RDA, the Weidner Agreement, the Amendment to MAA, the Collateral Assignment and the Block 2 Development Agreement, in substantially the forms on file with the Executive Director, together with any related documents necessary in connection therewith, including, without limitation, all documents, exhibits, certifications or consents referenced therein or attached thereto (collectively, the “Development Documents”).
3.02 Execution of Documents. The Chair or any Commissioner and Executive Director of the HRA and the Director or Acting Director, Office of Financial Services of the City (the “Authorized Officers”) are hereby authorized in their discretion and at such time, if any, as they may deem appropriate, to execute, on behalf of the HRA, the Development Documents and to carry out, on behalf of the HRA, directly or through one or more appointed designees, the HRA’s obligations thereunder when all conditions precedent thereto have been satisfied. The approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the Saint Paul City Attorney to the HRA, the appropriate HRA staff person(s) or by the Authorized Officers authorized herein to execute or accept, as the case may be, said documents prior to their execution; and said Authorized Officers or staff members are hereby authorized to approve said changes on behalf of the HRA. The execution of any instrument by the Authorized Officers shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This Resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. In the event of absence or disability of any of the Authorized Officers, any of the Development Documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any member of the Board or any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the Saint Paul City Attorney to the HRA, may act in their behalf. The electronic signature of a party to the Development Documents, including all acknowledgements, authorizations, directions, waivers and consents thereto (or any amendment or supplement thereto) shall be as valid as an original signature of such party and shall be effective to bind such party to the Development Documents. Any electronically signed Development Documents shall be deemed (i) to be “written” or “in writing,” (ii) to have been signed, and (iii) to constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. For purposes hereof, “electronic signature” means a manually-signed original signature that is then transmitted by electronic means; “transmitted by electronic means” means sent in the form of a facsimile or sent via the Internet as a pdf (portable document format) or other replicating image attached to an e-mail message; and, “electronically signed document” means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.
3.03 Future Amendments. The authority to approve, execute and deliver future amendments to the Development Documents entered into by the HRA and consents required under the Development Documents is hereby delegated to the Authorized Officers of the HRA, subject to the following conditions: (a) such amendments or consents do not materially adversely affect the interests of the HRA; (b) such amendments or consents do not contravene or violate any policy of the HRA, and (c) such amendments or consents are acceptable in form and substance to the Saint Paul City Attorney to the HRA or the counsel retained by the HRA to review such amendments. The authorization hereby given shall be further construed as authorization for the execution and delivery of such certificates and related items as may be required to demonstrate compliance with the agreements being amended and the terms of this Resolution. The execution of any instrument by the Authorized Officers of the HRA shall be conclusive evidence of the approval of such instruments in accordance with the terms hereof. In the event of absence or disability of the Authorized Officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any member of the Board or any duly designated acting official, or by such other officer or officers of the HRA as, in the opinion of the Saint Paul City Attorney to the HRA, may act in their behalf.
Section 4. Approval of HRA Budget Amendment. The Board hereby approves the HRA budget as set forth in the attached Financial Analysis.