Title
Approval of the April 11, 2012 HRA meeting minutes.
Body
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Lantry, Stark, Thune, Tolbert
CONSENT
1. Approval of the March 28, 2012 HRA meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 7 Nays - 0
2. Authorization to Execute License Agreement with Hollis Lynne Monnett, Trustee for Patio Seating Area on Part of 1433 University Avenue West, District 11
Commissioner Lantry moved approval. Approved as set forth in resolution RES 12-672
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARING
3. Resolution Approving the Sale of Land and Conveyance of Parcel 501 Magnolia Avenue E. under the ISP/NSP Program, Payne-Phalen District 5.
Ms. Cecile Bedor, Executive Director for the HRA stated that this vacant and foreclosed property was purchased in March, 2009 under the Neighborhood Stabilization Program (NSP). It is a two story, 1,650 sq/ft home with four bedrooms, and 1 ¾ bathrooms, and was built in 1916.
The HRA purchased the property for $32,476 representing a discount of more than 38%. The cost of the rehab was a little over $175,000; it's being sold, based on the after-rehab appraisal and consideration of NSP Costs, for $154,900 with a deed restriction requiring owner-occupancy. The gap assistance is approximately $75,000, and program income is approximately $127,900.
Chair Thune announced the public hearing. There being no testimony, Commissioner Brendmoen moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-102.
VOTE: Yeas - 7 Nays - 0
4. Resolution Approving the Sale of Land and Conveyance of Parcel 826 Blair Avenue under the ISP/NSP Program, Thomas-Dale District 7.
Ms. Bedor stated that the HRA purchased this vacant and foreclosed home in June, 2009 under NSP for $28,500, representing a discount of more than 18%. It is a 1½ story, 1,100 sq/ft home with two bedrooms, one bath, and was built in 1911.
The rehab costs were a little over $105,000; it will be sold for $120,000 with a deed restriction requiring owner-occupancy. The gap assistance is approximately $29,900, and the program income is expected to be $96,500.
Commissioner Carter stated the rehab was very well done, and met the HRA goals for improving vacant and foreclosed properties in Saint Paul. This project is a perfect example of what NSP funds are for and PED staff is doing great work.
Chair Thune announced the public hearing. There being no testimony, Commissioner Carter moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-103.
VOTE: Yeas - 7 Nays - 0
5. Resolution Approving the Sale of Land and Conveyance of Parcel 964 Reaney Avenue under the ISP/NSP Program, Dayton's Bluff District 4.
Ms. Bedor stated that this vacant and foreclosed house was purchased in December, 2009 under NSP for $59,400. It is a two story, 1,275 sq/ft home, with three bedrooms, one bathroom, and was built in 1886.
The rehab cost was approximately $125,500; it will be sold for $99,900 with a deed restriction requiring owner-occupancy. The gap assistance is approximately $99,000, and the program income is expected to be $77,000.
Chair Thune announced the public hearing. There being no testimony, Commissioner Lantry moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-104.
VOTE: Yeas - 7 Nays - 0
6. Resolution Approving the Sale of Land and Conveyance of Parcel 1776 Maryland Avenue East, Unit 204, Hazel Park Heights Condominium Project, Greater East Side District 2
Ms. Bedor stated that at the March 28th HRA Board meeting, the Board was given a thorough briefing on this project, detailing the HRA's guarantee/purchase of 5 of the 27 units in this condo project. Ms. Bedor stated the Board approved the sale of one unit in March and that is seeking approval to sell this unit for $94,000. The remaining units consist of one one-bedroom and two two-bedroom units. The HRA will provide the first mortgage on the property for $79,900 at 3.99% interest rate for 30 years, and US Bank will service this mortgage.
Chair Thune announced the public hearing. There being no testimony, Commissioner Lantry moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-105.
VOTE: Yeas - 7 Nays - 0
7. Resolution Approving Sale and Conveyance of Parcel 652 Conway Street to Dayton's Bluff Neighborhood Housing Services, Inc. Located within ISP/NSP Neighborhood, Dayton's Bluff District 4
Ms. Bedor stated that one of the key requirements under the NSP program is that 25% of the total NSP funds be spent on housing units the will serve people with incomes at or below 50% of the area median income. The two ways that staff has determined to meet this requirement is in rental housing, and ownership housing undertaken by Habitat for Humanity.
Ms. Bedor explained that Dayton's Bluff District 4 identified a 4-5 block radius around Dayton's Bluff Achievement Plus School as an immediate area of concern. The property located at 652 Conway had historic significance, and was purchased with CDBG funds in December, 2007. Since this property was foreclosed and vacant when purchased, and meets the NSP requirements, the rehabilitation can be funded under NSP which will free up the CDBG funds. In June, 2010 the HRA approved entering into a Development Agreement, obligating NSP funds of up to $800,000 to Dayton's Bluff neighborhood Housing Services (DBNHS).
Ms. Bedor recognized that Executive Director for DBNHS, Mr. Jim Erchl was present at the meeting and stated that the property was originally built as four one-bedroom apartments; it will rehabilitated into two two-bedroom units with off-street parking, and provide affordable rental housing to people with incomes at or below 50% of the area median income. All other requirements under the Development Agreement have been met.
Chair Thune announced the public hearing. There being no testimony, Commissioner Lantry moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-107.
VOTE: Yeas - 7 Nays - 0
8. Resolution Approving the Sale of Land and Conveyance of Parcel 61 E. George Street under the ISP Program, West Side District 3.
Ms. Bedor stated that this property was purchased for $51,000 in November, 2008 under the ISP initiative. The property is a two-story, 1,250 sq/ft home with three bedrooms, one bath, and was built in 1926. The cost of rehabilitation was estimated at $125,000 and included construction of a new garage. The property is being sold for $130,000, with a deed restriction requiring owner occupancy.
Chair Thune announced the public hearing. There being no testimony, Commissioner Bostrom moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-108.
VOTE: Yeas - 7 Nays - 0
9. Resolution Approving the Sale of Land and Conveyance of Parcel 2112 Ivy Street under the ISP Program, Greater East Side 2.
Ms. Bedor stated that this vacant and foreclosed property was purchased in September, 2008. The property is a one-story, 1,108 sq/ft home with three bedrooms, one bath, and was built in 1954. The HRA purchased the property for $60,000 which was the first mortgage amount. The property is being sold for $152,000 with a deed restriction requiring owner occupancy. The gap assistance is approximately $36,000.
Chair Thune announced the public hearing. There being no testimony, Commissioner Bostrom moved to close the public hearing and approve the resolution. Approved as set forth in resolution RES PH 12-109.
VOTE: Yeas - 7 Nays - 0
DISCUSSION
10. Resolution Authorizing Partnership Agreement with Capital Region Watershed District
As part of the NSP program, the HRA agreed to explore innovative ways to address storm water management on NSP properties. To achieve reduction in storm water volumes, the CRWD created a Stewardship Grant Program for Saint Paul residents or other entities residing or working in CRWD. Ms. Bedor stated that Ms. Roxanne Young from PED has been working with Capital Region Watershed District (CRWD) to develop a Cooperative Agreement between the HRA and CRWD which integrates the City of Saint Paul's Comprehensive Plan goals and CRWD 2010 storm water management strategies into the NSP program at no additional cost to the NSP program.
During the pilot phase of the program from August 2011 - December 2011, CRWD provided complementary, professionally designed site plans for 15 NSP projects to implement storm water best management practices (BMPs). As a component of the pilot phase of the program, CRWD agreed to cover all labor and material costs related to storm water BMPs not to exceed $1,000 per property. As a result, additional costs related to implementing storm water BMPs are reimbursed through both the complementary professional landscaping plan and the reimbursement for BMP related costs.
Ms. Bedor stated that this is a new program and staff is seeking final endorsement from the HRA Board. This program is an excelling example of creative, collaborative problem solving.
Chair Thune asked if the West side was covered in this program. Ms. Young stated that the West side is in the Washington County Watershed District. Ms. Young stated that in the future she'd be interested in having conversations with Washington County Watershed District about a similar program.
Ms. Young continued to state that a majority of NSP properties are located within CRWD boundaries which create a pipeline or approximately 50 -60 properties that staff intends to include in the program.
Chair Thune asked if staff should be petitioning for a change in the boundaries, to coincide with the City. Ms. Bedor stated that staff will research how watershed district boundaries are established.
Commissioner Stark acknowledged that no storm water credits involved with NSP properties.
Ms. Bedor stated that grant program is available to any homeowner in the Capital Region Watershed District.
Commissioner Stark moved approval. Approved as set forth in resolution RES 12-680.
VOTE: Yeas - 7 Nays - 0
11. Approval of Additional Funding for the Snelling-University Parking Improvement District and other Actions to Implement the Neighborhood Commercial Parking Pilot Program.
Ms. Bedor stated that in August, 2009 the HRA Board approved a Parking Program to help mitigate the loss of 85% of the on-street parking on University Avenue. The HRA approved funding for the Parking Program for 24 projects and several have been implemented; 178 spaces have been approved to date at a cost of approximately $2,800 per space. There are three projects in need of additional support, which is what staff is seeking today.
Ms. Bedor stated that 389-393 University Avenue is a shared parking project between two owners, and was awarded $25,000 which will not be enough to complete the necessary improvements. Staff recommends that the HRA award up to $50,000 to complete the project.
Also, the Snelling-University Parking Improvement District Project is a model for the City of Saint Paul as well as the region. The plan is to develop a shared pay public parking lot, with operating costs funded by net revenue from the pay parking kiosks, and any additional costs funded by an assessment on the benefitting property owners. Because of the complexity of the site, and extraordinary costs like storm water management, centralized refuse and recycling structures, and a security camera, the estimated cost of this project has increased beyond the $250,000 originally approved by the HRA. Staff is seeking an additional $100,000 in funding to complete the project.
Staff is also recommending that the HRA approve extending forgivable loans in an amount not to exceed $15,000 each to the owners of 1601 and 1623 University Avenue to make complementary improvements to the sites.
Ms. Bedor stated that staff is also seeking $160,000 for professional services including landscape architecture, civil engineering, surveying, testing, and waste management. Craig Blakely is the project manager. (Mr. Craig Blakely from PED provided background to the Board that had been provided at the time the project was approved in 2009.)
Chair Thune asked if private parties were paying for this project.
Mr. Blakely stated that the private parties will not be paying for the capital costs, but will pay for operating costs not covered from parking kiosks revenue. This is a new source of money that doesn't exist, and staff is asking that the net revenue, after operations, be dedicated to the district that generates it.
Commissioner Stark moved approval. Approved as set forth in resolution RES 12-673.
VOTE: Yeas - 7 Nays - 0
STAFF REPORT
12. 2010 Census Presentation
Ms. Bedor stated that at the last PED quarterly staff meeting, Mr. Matt Wolff and Mr. Sean O'Brien (two PED planning interns) gave a presentation on the 2010 Census.
Mr. Wolff and Mr. O'Brien gave the 2010 Census Presentation.
Staff report only. No action required.
ADJOURNMENT
Commissioner Bostrom moved adjournment. The HRA meeting was adjourned.