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Authorization to Enter Into A Development Agreement; Approve Financing Assistance; And Approve the Conveyance and Sale Of Land To Kendall Land Company, LLC For the Development Of Parcel 840 Payne Avenue, Payne-Phalen District 5
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota ("HRA") has duly adopted and there is now in legal effect a City-Wide Comprehensive Plan/Redevelopment Plan ("Plan") for the acquisition, demolition, rehabilitation and resale of properties and incorporates the Housing Plan which identify the Payne Phalen District 5 area as a part of this Plan; and
WHEREAS, on November 3, 2004, City Council approved the Payne-Phalen Boulevard Main Street Redevelopment Plan by Resolution 04-1059, and the HRA approved said Plan on same dated by Resolution 04-11/10-1; and
WHEREAS, the Plan talked about the need to undertake major improvements to the this new gateway area created by the construction of Phalen Boulevard to build on the new access to the neighborhood commercial street and gateway to Payne Avenue; Plan outlined the need to bring in new housing in a variety of options combined with commercial/retail services; and
WHEREAS, the neighborhood, HRA and its many partners have been successful in developing the Phalen Senior Lofts in 2007 and the start of the Whitall Town Homes, which completion has been affected by the economic down turn and also that start of new retail activities to the area; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Chapter 469 of the Minnesota Statutes, Housing and Redevelopment Act ("Act") and by authority of said Act engages in activities relating to: 1) housing projects and development; 2) removal of prevention of the spread of conditions of blight or deteriorations; 3) bringing substandard buildings and improvements into compliance with public standards; 4) disposition of land for private development; and 5) improving the tax base and the financial stability of the community; and engages in the aforementioned activities when redevelopment or development needs cannot be met through reliance solely upon private initiative, and may engage in said activities in targeted neighborhoods; and
WHEREAS, on August 8, 2007, by Resolution No. 07-08/08-3 the HRA approved the Invest Saint Paul Initiative including a work plan and budget covering (1) organization Support/Community Outreach; (2) Rehabilitation; (3) Mortgage Financing-incentives; (4) Strategic Acquisition; (5) Neighborhood Commercial Corridors; (6) Large Redevelopments; and (7) Supportive Housing; and
WHEREAS, HRA has received $30.0 million in Federal Neighborhood Stabilization funding to invest in housing in designated NSP areas of which a large portion of Payne-Phalen District 5 is located within, but along with housing comes the need for community and economic development; and
WHEREAS, Ramsey County received federal funding for the widening of Maryland Avenue in several locations to construct turn lanes thereby increasing better traffic flow and reducing accidents, the County has completed the widening at Arcade and Maryland and is completing the widening at Maryland and Rice, with acquisition of properties at Maryland and Payne underway for the widening; and
WHEREAS, with the recent completion of the acquisition of Kendall Hardware on the southeast corner Payne and Maryland as part of the widening has opened an opportunity for new retail development at Payne and Phalen Boulevard which would provide for a strong anchor for the corner; and
WHEREAS, Kendall and Alexandra Crosby, owners of Kendall Hardware were designated tentative developer of Parcel 840 Payne Avenue on September 14, 2011 and have undertaken many meetings in finalizing the plans, securing bank financing commitment, completing bid documents and other necessary documentation to move the purchase of this property forward to continue their presence along the Avenue and continue to be a strong economic player in the community taking this opportunity to show investment at a prime location.
WHEREAS, said proposal, pursuant to due notice thereof was published in the Saint Paul Pioneer Press on October 29, 2011, and a public hearing on said proposal and proposed sale and provisions thereof, was held on Wednesday, November 9, 2011 at 2:00 p.m., Central Standard Time, third floor City Hall, 15 West Kellogg Boulevard, in the City of Saint Paul, Minnesota; and
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota as follows:
1. That Kendall Land Company, LLC, a Minnesota limited liability company will proceed to finalize all specifications for construction of a new hardware store, complete the bidding requirements for contract work meeting all the compliance requirements and comply with all CDBG, City /HRA requirements as they move forward with the purchase of the Parcel all located within Invest Saint Paul/NSP Activity areas and hereby conform to the objectives and specific requirements under the Invest Saint Paul Initiative and the Payne-Phalen Mainstreet Redevelopment Plan meeting the intended reuse as identified in the City Wide Comprehensive Plan and Consolidated Plan, legally described as:
Lots 4 thru 13 consecutively, Block 45, C. Weide's Sub, according to the plat thereof on record in the County Recorder Office in and for Ramsey County, Minnesota, and that portion of Lots 1, 2, 3, and the vacated alley, said block, said plat, that lie westerly and northerwesterly of Line 2 as shown on the sheet 6 of 8, according to the Burlington Northern Railroad Right of Way plat of survey dated 07-24-91 on record in said county. Subject to a sewer easement covering parts of the vacated alley.
Subject to an easement to be recorded by HRA over the southerly portion of Lot 30, Block 37, C. Weide's Subdivision, according to the plat thereof on record in the County Recorder office in and for Ramsey County, Minnesota for ingress and egress.
further identified as the "Parcel".
2. That the method of disposition of said Parcel is in accordance with the Payne-Phalen Mainstreet Redevelopment, Invest Saint Paul Initiative and Rebuilding Plan 2009-2013 under the Invest Saint Paul Initiative, City Wide Redevelopment Plan and Consolidated Plan and is the appropriate method of making said Parcels available for redevelopment.
3. That the sum of Three Hundred Eighty Thousand and No/100 ($380,000.00) for the Parcel represents the purchase price and is satisfactory in accordance with Sec. 469.032 and the Neighborhood Stabilization Program requirements and use and restrictions are in conformance with the City Wide Redevelopment Plan and Consolidated Plan.
4. That HRA hereby approves up to $625,000.00 of CDBG for the redevelopment of the Parcel to assist in the construction of a new 13,600 sq/ft hardware store which services a community that is more that 51% of the median income level and hereby conform to the objectives and specific requirements of the Neighborhood Stabilization Program and meet the intended reuse of the Parcels under the Program.
5. That Kendall Land Company, LLC has the apparent qualifications and financial resources to acquire said Parcel in accordance with all the City/HRA, other local, state and federal requirements and meet the objectives under the Payne-Phalen Mainstreet Redevelopment Plan and Rebuilding Plan 2009-2013 under the Invest Saint Paul Initiative.
6. That the proposed disposal transaction by and between HRA and Kendall Land Company, LLC is satisfactory in form and complies with the requirements of state and federal law for the Parcel.
7. That both the deferred Land Sales Price and the $625,000.00 CDBG deferred loan that have been expended or committed for acquisition and construction, and will be used to complete the development of the Parcel as approved by HRA and will be secured with a Mortgage and Note against the property according to the terms and conditions outlined in the HRA Board Report accompanying this Resolution.
8. That the execution and delivery of said Development, Loan and Grant Agreement between Kendall Land Company, LLC and HRA for the Parcel is hereby authorized by the Board of Commissioners to be executed on its behalf by the Chairperson or his/her designated Commissioner, the Executive Director of the HRA or Acting Executive Director, and the Director, Office of Financial Services of the City of Saint Paul.
9. That the execution and delivery of a Deed of Conveyance for said Parcel is in accordance with said Development Agreement and will include occupancy and use of the property as a hardware store in accordance with local, state and federal regulations and within the deed restriction, and is hereby authorized by the Board of Commissioners, to be executed on its behalf by the Chairperson or his or her designated Commissioner of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota.
10. That upon satisfactory completion of the improvements, and other obligations, in accordance with the terms of said Development Agreement, the execution and delivery of the Certificate of Completion to Kendall Land Company, LLC is hereby authorized by the Board of Commissioner to be executed on behalf by the Chairperson or his or her designated Commissioner of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota subject to all the remaining conditions/restrictions required with the use of the property.
11. That the Executive Director of the Housing and Redevelopment Authority of the City of Saint Paul is hereby authorized to negotiate and agree to any amendments, deletions or revisions to the Development Agreement to provide this funding for the designated activities or revisions that may be necessary which do not substantially change the rights or obligations of the HRA or Developer and further continues to comply with all local, state and federal requirements and take such further action necessary to implement this Resolution.
12. That the Budget Amendment outlined in Attachment A is hereby approved.