Title
Approval of the February 22, 2012 HRA Meeting and Continuation Meeting Minutes.
Body
MINUTES OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL, MINNESOTA
Wednesday February 22, 2012
Kelly Bauer, Assistant Secretary
(651) 266-6604
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Lantry, Stark, Tolbert, Thune
ROLL CALL
CONSENT
1. Approval of the February 8, 2011 HRA meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 7 Nays - 0
DISCUSSION
2. Reservation of Additional 2012 Low Income Housing Tax Credits for St. Alban's Park, District 8
Ms. Cecile Bedor, Executive Director for the HRA, stated that the Low Income Housing Tax Credit is a tool the federal government created in 1986 as a strategy to bring more private capital into affordable housing development, providing 30-40 percent of the capital needed to complete these projects. The State of Minnesota's allocation of tax credits is based on population; the City of Saint Paul is one of three sub-allocators, and generally receives enough tax credits for one project.
Every year the HRA Board revises the Low Income Housing Tax Credit Procedural Manual and the Qualified Allocation Plan, which essentially detail HRA priorities. At the end of 2011, the HRA provided the full 2012 allocation of $966,557 to St. Alban's Park, a 74-unit affordable housing preservation project on Selby and Dayton. Twin Cities Housing Development Corporation (TCHDC) is the developer.
Minnesota Housing Finance Agency (MHFA) received an additional $265,197 of 2012 tax credits because the State's volume cap was increased. Saint Paul will receive approximately $22,000 in additional tax credits. Staff is recommending the additional credits be awarded to St. Alban's Park to help cover the gap in financing.
Commissioner Carter moved approval. Approved as set forth in resolution RES 12-358.
VOTE: Yeas - 7 Nays - 0
3. Resolution Approving the Assignment, Assumption, Modification and Subordination of a CDBG Loan in the Amount of $240,000.00 and a CDBG Loan in the Amount of $150,000.00, and Authorizing the Execution of Various Documents in Connection with the St. Philip's Gardens Project, District 8
Ms. Bedor stated that this is a 56-unit affordable housing preservation project. Twin Cities Housing Development Corporation (TCHDC) is the developer and is purchasing the property from St. Philip's Gardens, Inc, a nonprofit organization established by St. Philip's church to originally build this project.
The project has one, two, and three bedroom units, and will cost approximately ten million dollars with a great deal of renovation both inside and out. The current average household income is $7,469.
Ms. Bedor explained that need to keep debt service low in order to keep rents low. Most affordable housing projects have deferred loans. This project has two deferred loans at 2% interest with current balances of approximately $302,000 and $183,000. TCHDC is requesting an assumption of the two loans, and a reduction in the interest rate from 2% to 1%, plus a deferral for another 31 years.
Mr. Ken Isaacson from Twin Cities Housing Development Corporation was present at the meeting.
Commissioner Carter moved approval. Approved as set forth in resolution RES 12-355
VOTE: Yeas - 7 Nays - 0
4. Resolution of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, Approving Issuance of Refunding Bonds Under the Minnesota Municipal Industrial Development Act, and Approving and Authorizing the Execution of Documents in Connection Therewith (HealthEast Care System Project)
Ms. Bedor stated that in 1997 the City issued approximately $29.17 million of Series 1997A, and $4.91 million of Series 1997B revenue bonds to HealthEast in order to refund bonds previously issued by the HRA in 1987. The City has been a long-term partner with HealthEast, issuing bonds in 1993, 1994, and 1996 for the expansion of St. Joseph's Hospital in downtown Saint Paul, which has been completed.
HealthEast is asking to refund the bonds, and approve the conduit bonds which are approximately $12 million. This action has no liability, or obligation on the part of the City of Saint Paul or the HRA.
Mr. Mike Nass, CFO for HealthEast and Mr. Paul Tietz from Briggs and Morgan were present at the meeting.
Commissioner Brendmoen moved approval. Approved as set forth in resolution RES 12-373
VOTE: Yeas - 7 Nays - 0
RECESS
Commissioner Lantry made the motion to recess. The HRA was in recess until after the City Council meeting at 3:30 p.m.
VOTE: Yeas - 7 Nays - 0
CONTINUATION MINUTES OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL, MINNESOTA
Wednesday February 22, 2012
RECONVENE
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Lantry, Stark, Tolbert, Thune
5. Resolution Approving the Establishment of the Schmidt Brewery Redevelopment Project Area and the Schmidt Brewery Tax Increment Financing District and the Adoption of a Redevelopment Plan and Tax Increment Financing Plan, District 9
Commissioner Tolbert moved approval. Approved as set forth in resolution RES 12-363
VOTE: Yeas - 7 Nays - 0
6. Resolution Approving the Establishment of a Tax Increment Financing District and Approving an Amended and Restated Tax Increment Plan and Approving an HRA Budget Amendment (Penfield Redevelopment Project)
Commissioner Bostrom moved approval. Approved as set forth in resolution RES 12-375
VOTE: Yeas - 4 Nays - 3 (Carter, Lantry, Stark)
ADJOURNMENT
Commissioner Lantry moved adjournment. The HRA meeting was adjourned.