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Authorization to Extend the Tentative Developer Designation of JB Vang Partners, Inc. as the Tentative Developer of 694 and 680 Minnehaha Avenue East, Saint Paul, MN, District 4, Ward 7
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) is a public body corporate and politic established, existing, and operating under the laws of the State of Minnesota pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “Act”); and
WHEREAS, the HRA is empowered by law, including the Act, to adopt and enforce this Resolution in pursuit of its mandate to engage in appropriate housing, development, and redevelopment projects; to remove or prevent the spread of conditions of blight or deterioration; to bring substandard buildings and improvements into compliance with public standards; to dispose of HRA-owned land for private development; and to improve the tax base and the financial stability of the community; and
WHEREAS, HRA owns approximately 4.8 acres of land that is improved with eight vacant and deteriorated buildings, and certain surface lots, all located at 694 and 680 Minnehaha Avenue East (the “Property”); and
WHEREAS, the HRA designated JB Vang Partners Inc., a Minnesota corporation (“JB Vang”), as the tentative developer for the Property (the “Tentative Developer”) with Resolution 23-71 on January 20, 2023; and
WHEREAS, the Tentative Developer status was extended via an administrative action by the Executive Director of the HRA through December 31, 2025; and
WHEREAS, JB Vang Partners Inc. has made significant progress since the tentative developer designation and subsequent extension, including securing $4,941,625 in funding from local government agencies, a zoning change to T3, City Council consideration of a local historic district designation, and is continuing to apply for relevant funding sources; and
WHEREAS, this Board finds the Project serves a public purpose by: 1) meeting the City’s goal of production of affordable housing; 2) increasing the availability of goods and services; 3) creating public green space; 4) rehabilitating vacant structures; and 5) increasing the tax base capacity for the City; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that JB Vang (or its affiliated entity that is owned and/or controlled by JB Vang), is designated as tentative developer for the Property through June 30, 2027, on the terms and conditions set forth in this Resolution and the prior resolution.
BE IT FURTHER RESOLVED that the Tentative Developer is expected complete or cause to complete, at its own cost, certain activities with respect to the Project within the extension period. A list of benchmark activities to be completed by the Tentative Developer include the following:
• Continue to facilitate communication with community groups and key stakeholders regarding the Project.
• Environmental assessment work has been ongoing with remaining assessment work on the west end to be completed. Submit an updated timeline for the Project, for approval by HRA staff.
• Submit a plan for the commercial marketplace component of the Project, including ownership structure, financing, and any relevant market studies.
• Continue to pursue funding for the Project, such as New Market Tax Credits, Metropolitan Council Grants, and Ramsey County Grants, as applicable.
• Complete application to Minnesota Housing Finance Agency’s Multifamily Consolidated Request for Proposals.
• Identify commercial management partner(s).
• Complete formal scope of work with architectural/engineering plans and specifications, incorporating Green/Sustainable Development guidelines, and including site plan, elevations, exterior treatments/materials, and interior schematics for approval by HRA staff.
• Complete site plan review process and obtain all property building permits approvals with the Department of Safety and Inspection.
• Receive all required approvals for zoning, licenses and any other required City or State approval for the Project.
• Finalize a detailed development budget and business plan for approval by HRA staff.
• Submit evidence of availability of construction financing for review by HRA staff for acceptability.
• Negotiate final terms and conditions of a development agreement, which will include all compliance requirements, details of the bidding process, and a sworn construction cost statement from the selected contractor for the Project.
BE IT FURTHER RESOLVED that the terms and conditions of a development agreement between the HRA and the Tentative Developer shall include the following terms and restrictions:
1. All pre-development costs are the sole responsibility of the Tentative Developer.
2. The Tentative Developer must work with affected community groups.
3. The Property will be sold in its “as is” condition.
4. The HRA and Tentative Developer will maintain regular communication to ensure significant progress is being made toward the tasks defined above.
BE IT FURTHER RESOLVED that if the Tentative Developer does not timely complete the specified tasks or otherwise abide by the terms of this Resolution, its status as Tentative Developer may be terminated by the Executive Director of the HRA without further action by this Board.