Title
Resolution Approving the LISC CAT Fund Master Participation Agreement Amendment, Citywide
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act, and said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community; and
WHEREAS, the civil unrest following the murder of George Floyd in May 2020 significantly impacted businesses and properties within the City of Saint Paul; and
WHEREAS, the HRA previously established a $1,000,000 Civil Uprising Budget in fiscal year 2021 to provide necessary business assistance through RES 20-1681; and
WHEREAS, a primary goal was to facilitate the transfer of properties in areas affected by the civil unrest to existing businesses, local residents, and community-based owners to foster economic empowerment and strengthen the community, particularly in light of the dual challenges posed by social unrest and the ongoing COVID-19 public health emergency; and
WHEREAS, the Local Initiatives Support Corporation Twin Cities (LISC) established The Community Asset Transition (“CAT”) Fund to offer adaptable and affordable financial resources specifically for the acquisition of commercial and residential properties within the impacted cultural districts; and
WHEREAS, The HRA Board of Commissioners found a public purpose in participating in the initiatives outlined herein, as they supported Saint Paul’s economic recovery from the impacts of social unrest and the COVID-19 public health emergency; and
WHEREAS, on December 8, 2021, through RES 21-1775, the HRA allocated $500,000 of the Civil Uprising Budget to the LISC CAT Fund, and approved and authorized the HRA to enter into a Master Participation Agreement with LISC; and
WHEREAS, the HRA entered into a Master Participation Agreement (MPA) with LISC on October 2, 2023; and
WHEREAS, the executed Master Participation Agreement established program guidelines for the CAT Fund "1.0" limited loan terms to a maximum of five years and restricted eligible borrowers to seven pre-approved non-profit developers only; and
WHEREAS, a subsequent iteration of the program guidelines, CAT Fund "2.0" (introduced in 2023), incorporated more flexible terms, including loan terms of up to ten years and eligibility extended to both non-profit developers and mission-aligned for-profit developers; and
WHEREAS, the project pipeline currently lacks a non-profit partner, and the initial project, 968 Payne, requires a loan term exceeding five years; and
WHEREAS, an amendment to the MPA is necessary to adopt the CAT Fund "2.0" guidelines to accommodate the initial project needs; and
WHEREAS, these updated terms are anticipated to simplify program access for a broader spectrum of borrowers by expanding eligibility criteria and offering extended loan durations.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, as follows:
The Board approves and authorizes execution of an amendment to the Master Participation Agreement with LISC that expands the borrowers who can access the LISC CAT Fund to include mission-aligned for-profit developers and extends the loan term to up to 10 years.