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Approving and Authorizing the Spending Plan TIF Loan Extension for the 652 Sherburne Project, District 7, Ward 1
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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
WHEREAS, 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, (g) engaging in the aforementioned activities, with a focus on targeted neighborhoods, when these needs cannot be met through reliance solely upon private initiative; and
WHEREAS, the HRA is authorized to create redevelopment projects as defined in Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, Model Cities of St. Paul, Inc. (the “Developer”)is the developer of 652 Sherburne (the “Project”) in partnership with The Rondo Community Land Trust; and
WHEREAS, in 2024 the HRA issued a forgivable Spending Plan TIF loan (the “Loan”) to the Developer and The Rondo Community Land Trust, in the amount of $386,279 for the rehabilitation of the property located at 652 Sherburne Avenue into six (6) units of deeply affordable rental-to-ownership housing (the “Project”); and
WHEREAS, the Loan is forgivable if three (3) conditions are met by the maturity date: 1) All Affordable Units are leased to Extremely Low-Income tenants; and 2) A jobs report is submitted to the HRA; and 3) A certificate of occupancy is submitted to the HRA; and
WHEREAS, the Developer is seeking to modify the Spending Plan TIF loan to extend the maturity date from December 31, 2025, through June 30, 2026, to be able to meet the conditions of forgiveness; and
WHEREAS, staff recommends the HRA approve the Loan extension through June 30, 2026, for the reasons described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, staff recommends waiving the loan modification fee of $1,931; and
WHEREAS, by this Resolution the HRA approves extending the Loan and finds a public purpose for the actions taken in connection with the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA Board of Commissioners hereby approves and authorizes the execution of an amendment to the Promissory Note to extend the Spending Plan TIF loan, and any related documents through June 30, 2026.
2. The Interim HRA Executive Director, staff, and legal counsel for the HRA are directed and authorized to take all actions necessary to implement this Resolution.
3. The Interim HRA Executive Director may grant an extension of the maturity date for a period of up to six months relating to leasing up the units without penalty so long as construction is completed, a Certificate of Occupancy has been submitted to the HRA, and a jobs report has been submitted to the HRA.
4. The Interim HRA Executive Director is authorized to negotiate and execute any loan documents and instruments in connection with this Resolution including without limitation the execution of a loan amendment to extend the Spending Plan TIF Loan, and any related documents.
5. Final approval is subject to approval of a companion resolution at City Council.