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Resolution Approving and Authorizing (i) the Establishment of the Galtier Plaza Tax Increment Financing District (a Redevelopment District) in the Seventh Place Redevelopment Project Area and Adopting a Tax Increment Financing Plan therefor, (ii) an Amendment to the Tax Increment Financing Plan for the Minnesota Event Tax Increment Financing District, (iii) an HRA Budget Amendment, and (iv) the Execution of a Tax Increment Development Agreement and Related Documents, Including the Issuance of a TIF Note and Forgivable Spending Plan TIF Loan for the Project, District 17, Ward 2
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) has heretofore established the Seventh Place 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, as amended (the “HRA Act”); and
WHEREAS, the Redevelopment Plan contains an identification of need and a statement of purpose and objectives, land uses and standards for development 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 establish within the Project Area the Galtier Plaza Tax Increment Financing District (a redevelopment district) (the “TIF District”), as a redevelopment tax increment financing district, and adopt a Tax Increment Financing Plan (the “TIF Plan”) therefor, all pursuant to Minnesota Statutes sections 469.174 through 469.1794 (the “TIF Act”); and
WHEREAS, the HRA has investigated the facts and has caused to be prepared the TIF Plan for the TIF District; and
WHEREAS, the TIF District is being established primarily to facilitate the redevelopment of the building commonly known as Galtier Plaza, a substandard commercial office building, by converting vacant commercial offices into approximately 166 market rate rental housing units, skyway improvements, and streetscaping enhancements, including improvements to public sidewalks and public building entrances (the “Project”) to be developed by Bigos-Galtier, LLC, a Minnesota limited liability company (the “Developer”); and
WHEREAS, Minnesota Statutes section 469.175 requires that before a county auditor may certify a tax increment financing district created under the TIF Act, the governing body of the municipality must approve the tax increment financing plan after a public hearing thereon; and
WHEREAS, the City Council (the “Council”) of the City of Saint Paul, Minnesota (the “City”) at its meeting on June 10, 2026, (a) will conduct a public hearing following duly published notice thereof on (i) establishment of the TIF District in the Project Area, and (ii) the adoption of the TIF Plan, (b) consider the findings required by the TIF Act and the HRA Act, and (c) consider approving the establishment of the TIF District and the adoption of the TIF Plan; and
WHEREAS, subject to approval by the Council following a public hearing, 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 Ramsey County (the “County”) in which the TIF District is located and transmitting a copy of the TIF Plan to the County and Independent School District Number 625 (the “School District”), which have taxing jurisdiction over the property to be included in the TIF District; and
WHEREAS, the HRA previously created the Minnesota Event Tax Increment Financing District (the “Prior TIF District”) located within the Project Area and adopted a tax increment financing plan for the Prior TIF District (as previously amended, and as further amended hereby, the “Prior TIF Plan”); and
WHEREAS, the HRA has determined that it is necessary to further amend the Prior TIF Plan to remove tax parcels PID 31.29.22.44.0443 and PID 31.29.22.44.0610 (collectively, the “Parcels”) from the Prior TIF District in order to establish the TIF District within the Project Area; and
WHEREAS, the HRA has investigated the facts and has caused to be prepared a Fifth Amendment to Tax Increment Financing Plan for the Prior TIF District (the “Prior TIF Plan Amendment”); and
WHEREAS, the total current net tax capacity of the Parcels is at least equal to the net tax capacity of those Parcels in the Prior TIF District’s original net tax capacity, and therefore the Prior TIF Plan Amendment may be accomplished without notice or hearing pursuant to Section 469.175, subdivision 4(e)(2)(A) of the TIF Act; and
WHEREAS, the HRA and the City have previously established several tax increment financing districts located in the City (collectively, the “Qualified TIF Districts”), and adopted tax increment financing plans therefor, pursuant to the HRA Act and the TIF Act; and
WHEREAS, Minnesota Statutes section 469.176, subdivision 4n, as amended (“Subd. 4n”) authorizes the HRA to spend available tax increment from any existing tax increment financing district and interest earned thereon (“Available TIF”), notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist:
(1) Such assistance will create or retain jobs in the State of Minnesota (the “State”), including construction jobs;
(2) Construction commences before December 31, 2026;
(3) The construction would not have commenced before December 31, 2026 without the assistance;
(4) Available TIF under the spending plan is spent by December 31, 2026; and
(5) The City Council approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the HRA to take such actions; and
WHEREAS, the HRA and the City Council have heretofore adopted that certain Second Amended and Restated Spending Plan for Various Tax Increment Financing Districts Adopted Pursuant to Subd 4n (the “Spending Plan”), which authorizes the use of Available TIF to provide improvements, loans or assistance for private development that satisfies the criteria listed above and as further described in the Spending Plan (“Qualified Projects” or singularly, a “Qualified Project”); and
WHEREAS, the Spending Plan expressly authorizes Available TIF assistance to a Qualified Project that advances private development of all types of housing production, and to develop underutilized, privately owned redevelopment sites within the City consisting of construction or rehabilitation of buildings and ancillary facilities, such as the Project; and
WHEREAS, the HRA has caused to be prepared a Development Agreement (the “Development Agreement”) with the Developer setting forth the terms and conditions under which the HRA will provide tax increment financing assistance for the Project, of which a substantially final form is on file with the Executive Director of the HRA.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “Board”) as follows:
Section 1. Findings for Creation of TIF District and Adoption of a TIF Plan therefor.
1.01 The Board 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 Board, 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 market rate rental housing units, skyway improvements, and streetscaping enhancements, including improvements to public sidewalks and public building entrances, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan and TIF Plan.
1.02 The Board 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 - Galtier Block Redevelopment TIF District, prepared for the City of Saint Paul, Minnesota by LHB, Inc., dated February 27, 2026 (the “Redevelopment Assessment Report”), a copy of which is attached to the TIF Plan. 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 will ultimately contain 1 tax parcel. The parcel is occupied since it meets the requirements of Minnesota Statutes section 469.174, subdivision 10(e) in that at least 15% of the area of the parcel is occupied by buildings, streets, utilities, paved or gravel parking lots or similar structures. The parcel consists of 100% of the area of the TIF District, which is greater than 70%. In addition, there is one building located in the TIF District. As set forth in the Redevelopment Assessment Report, the one building (i.e., 100%) is “structurally substandard” to a degree requiring substantial renovation or clearance. The “structurally substandard” building was not in compliance with the building code applicable to new buildings, and the costs of modifying the building to satisfy the building code would be more than 15% of the cost of constructing a structure of the same square footage and type on the site.
1.03 The Board hereby makes the following additional findings:
(a) The Board further finds that the proposed development, in the opinion of the Board, 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 a structurally substandard building that has been vacant 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. This finding is consistent with the Board’s experience on other historic buildings being converted from commercial uses to residential rental housing.
(b) The Board 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 complement 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 Board 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 a market-rate housing development project, together with skyway improvements, and streetscaping enhancements, including improvements to public sidewalks and public building entrances. The development will increase the taxable market valuation of the City and increase the housing supply in the City supporting local businesses in downtown 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 Board 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 $19,709,630, which is the increase in the market value estimated to result from the proposed development (i.e., approximately $26,765,580) after subtracting the present value of the projected tax increments for the maximum duration of the TIF District (i.e., approximately $7,055,950). In making these findings, the Board 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 Board elects to retain all of the captured tax capacity to finance the costs of the TIF District. The Board elects the method of tax increment computation set forth in Section 469.177, Subdivision 3(a) of the TIF Act.
(f) The Board elects to delay the first year to receive increment until tax payable year 2029.
(e) The provisions of this Section 1 are hereby incorporated by reference into and made a part of the TIF Plan.
Section 2. Creation of TIF District and Approval of the TIF Plan therefor.
2.01 Subject to approval by the Council following a public hearing, the creation of the TIF District and the adoption of the TIF Plan therefor are hereby approved and the TIF Plan shall be placed on file in the office of the Executive Director of the HRA.
2.02 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. The HRA’s Executive Director is authorized and directed to negotiate and execute all documents, notes and contracts necessary to accomplish these actions.
2.03 Upon approval of the Council, the staff of the HRA 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.
2.04 The staff of the HRA 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 Council and the HRA.
Section 3. Approval of the Prior TIF Plan Amendment.
3.01 The Prior TIF District and the Prior TIF Plan are hereby amended to remove the Parcels and the Prior TIF Plan Amendment is hereby approved. The Prior TIF Plan Amendment shall be placed on file in the office of the Executive Director of the HRA.
3.02 The staff of the HRA is hereby directed to file a copy of the Prior TIF Plan Amendment with the County Auditor of Ramsey County, the Commissioner of Revenue and the Office of the State Auditor simultaneously with the filings authorized in Sections 2.03 and 2.04.
Section 4. Approval of an HRA Budget Amendment. The Board hereby approves the HRA budget as set forth in the attached Financial Analysis.
Section 5. Approval and Adoption of Policy on Interfund Loans and Advances. The HRA hereby approves a policy on interfund loans or advances (“Loans”) for the TIF District, as follows:
5.01 The authorized tax increment eligible costs (including without limitation out-of-pocket administrative expenses in an amount up to $1,260,900, interest in an amount up to $3,538,100 and other project costs in an amount up to $8,310,000) payable from the TIF District, as its TIF Plan is originally adopted or may be amended, may need to be financed on a short-term and/or long-term basis via one or more Loans, as may be determined by the Executive Director from time to time.
5.02 The Loans may be advanced if and as needed from available monies in any fund or account of the HRA designated by the Executive Director. Loans may be structured as draw-down or “line of credit” obligations of the lending fund(s).
5.03 Neither the maximum principal amount of any one Loan nor the aggregate principal amount of all Loans may exceed $13,109,000 outstanding at any time.
5.04 Any Loan shall mature not later than March 1, 2055, or such earlier date as the Executive Director may specify in writing. All Loans may be pre-paid, in whole or in part, whether from tax increment revenue, TIF bond proceeds or other eligible sources.
5.05 The outstanding and unpaid principal amount of each Loan shall bear interest at the rate prescribed by the statute (Minnesota Statutes section 469.178, subdivision 7), which is the greater of the rates specified under Minnesota Statutes sections 270C.40 or 549.09 at the time a Loan, or any part of it, is first made, subject to the right of the Executive Director to specify a lower rate.
5.06 Such Loans within the above guidelines are pre-approved. The Loans need not take any particular form and may be undocumented, except that the Executive Director shall maintain all necessary or applicable data on the Loans.
Section 6. Findings for the Use of Available TIF.
6.01 The Board hereby finds that the Project is a Qualified Project because:
(a) the Project will create and retain jobs in the State, including the creation of approximately 276 jobs during the course of construction of the Project for workers to be employed by the Developer’s contractor and/or subcontractors;
(b) construction on the Project will commence in 2026 and requires financial assistance to commence in this timeframe;
(c) the construction would not have commenced before December 31, 2026, without the Available TIF assistance; and
(d) the Available TIF for this Project will be spent under the Spending Plan by December 31, 2026.
6.02 The Board further finds that the Available TIF assistance meets the Spending Plan goal of advancing private development of all types of housing production, and to develop underutilized, privately owned redevelopment sites within the City consisting of construction of buildings and ancillary facilities and is authorized pursuant to the Spending Plan and Subd. 4n.
Section 7. Approval and Execution of Development Documents.
7.01 The Board hereby finds, determines and declares that it is in the public interest of the residents of the City of Saint Paul that the Project as described in the Development Agreement be undertaken in order to increase the supply of housing in the City.
7.02 The Board hereby approves the Development Agreement in substantially the form on file with the Executive Director of the HRA, and the Chair or Commissioner, Executive Director and Director, Office of Financial Services (the “Authorized Officers”) are hereby authorized and directed to execute the Development Agreement on behalf of the HRA, together with any related documents necessary in connection therewith, which may be executed by the Executive Director, including, without limitation, all documents, exhibits, certifications or consents referenced in or attached to the Development Agreement, and any subordinations, assignments or consents necessary in connection with the Developer’s financing, (collectively, the “Development Documents”). 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 any 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
7.03 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 Board as, in the opinion of the Saint Paul City Attorney to the HRA, may act in their behalf.