Title
Resolution Authorizing Approval of 2012 Technical Budget Amendment
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WHEREAS, on May 25, 2011, the HRA adopted Resolution #11-971 approving a $500,000 loan to Episcopal Homes to partially finance a fifty (50) unit affordable rental housing project for seniors located at the SW corner of Fairview and University in St. Paul (the “Episcopal Project”) and adopted an amended budget allocating CDBG funds to the Episcopal Project; and
WHEREAS, on October 26, 2011, the HRA adopted Resolution #11-2106 approving two loans totaling $854,000 from HRA Fund 117 as a temporary source for the Northern Warehouse Project with the intention to utilize future CDBG and HOME dollars to replace a portion of the HRA Fund 117 dollars; and
WHEREAS, the two loans for the Northern Warehouse Project included a $604,000 Cash Flow Loan and a $250,000 Deferred Loan; and
WHEREAS, the Episcopal Project has received LCDA funds for acquisition and can no longer utilize the CDBG funds making $500,000 of CDBG funds available for spending; and
WHEREAS, a recent repayment of HOME funds has created $200,000 available for spending; and
WHEREAS, $50,000 of the released Episcopal CDBG dollars will now fund $50,000 of the Deferred Loan, $200,000 of available HOME funds will be used of $500,000 will be utilized to fund the balance of the Deferred Loan, in its entirety and $450,000 of the released CDBG dollars will now to fund $450,000250,000 of the Cash Flow Loan (leaving retaining $154,000354,000 in HRA Fund 117 inon the Cash Flow Loan) and repayments on the Cash Flow Loan will be split pro-rata between the two funding sources of CDBG and HRA Fund 117; and
WHEREAS, on May 9, 2012, the HRA adopted Resolution #12-894 approving a $420,000 Loan to BB Housing Associates, LLC to redevelop 242-244 Maria Avenue Under Invest Saint Paul Initiative; and
WHEREAS, HRA Resolution #12-894 resolved that the $420,000 Loan was to be initially funded with ISP funds, and then, up to $330,000 of CDBG funds were to be used to replace the ISP rehabilitation account when the CDBG funds became available after June 1, 2012; and
WHEREAS, HRA Resolution #10-6/23-8 created the Carondelet Village Tax Increment Financing District and adopted a Tax Increment Financing Plan, which included a $10,609,947 budget for the CarondeletCarondolet Village TIF project. This HRA Budget needs to be formally recorded in the Finance System as evidenced by the attachment A; and
WHEREAS, as described in the accompanying staff report, the purpose of this Resolution is three-fold: (1) to remove the $500,000 of CDBG funds from the Episcopal Project and apply those funds to the Northern Warehouse project along with available HOME funds; (2) to replace $330,000 of ISP funds for the 242-244 Maria Avenue project with CDBG funds; and (3) to establish an HRA budget for the Carondelet Village TIF project.
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:
1) The 2012 HRA Budget is amended per Attachment A of this resolution.
2) HRA staff is hereby directed and authorized to take all actions necessary to implement this resolution.