Title
Resolution authorizing sale and conveyance of property located at 462 Edmund Avenue, located in Frogtown Planning District 7, to Urban Homeworks Inc.
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA), has duly adopted and there is now lawfully in effect in the City of Saint Paul, Minnesota, a City Wide Comprehensive/Redevelopment Plan (Plan) providing for the acquisition, clearance and resale of land for redevelopment which includes Frogtown District 7 area within the Plan and the City Consolidated Five-Year Plan; and
WHEREAS, on November 19, 2008 the City Council approved by Resolution 08-1270 submittal of an amendment to the 2008 Consolidated Plan to the United States Department of Housing and Urban Development (HUD) in order to receive $4.3 million of Neighborhood Stabilization Program 1 (NSP1) funds, and on January 28, 2009 the City received a letter from HUD approving the amendment and the funding; and
WHEREAS, by Resolution No. 09-103 the City Council approved an Application to the Minnesota Housing Finance Agency and upon approval of such application the City Council approved financing for the NSP in a specified manner; and
WHEREAS, on February 6, 2013, the City Council approved by Resolution PH 13-32 an amendment to both the NSP1HUD and NSP1MHFA budgets authorizing the use of NSP1 program income; and
WHEREAS, on November 28, 2012, the HRA approved by Resolution 12-2129 the Affordable Housing Trust Fund Allocation Plan, which included authorization to fund a development gap financing program at the Twin Cities Community Land Bank (TCCLB) and established certain procedures for the sale of property in conjunction with TCCLB's program; and
WHEREAS, the HRA has purchased, demolished, and prepared for redevelopment certain properties consistent with the aforementioned plans, including property located at 462 Edmund Avenue in Frogtown Planning District 7 "the Property"; and
WHEREAS, in February 2013, the HRA received a proposal from Urban Homeworks Inc., to purchase and redevelop the HRA-owned Property located at 462 Edmund Avenue in Frogtown Planning District 7; and
WHEREAS, upon receipt of the aforementioned proposal, the HRA published notice via the Early Notification System, in accordance with the HRA policy described by Resolution 09-09/23-1, and this notice resulted in no inquiries or counter-proposals; and
WHEREAS, said proposal, pursuant to due notice thereof, was published in the Saint Paul Pioneer Press on Saturday 15 June, 2013, and a public hearing on said proposal and proposed sale and provisions thereof, was held on Wednesday 26 June, 2013 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 Urban Homeworks Inc., a Minnesota non-profit corporation, will proceed to finalize all specifications for new construction, complete the bidding requirements for contract work meeting all the compliance requirements, and comply with all other NSP and City/HRA requirements as they move forward with the purchase of the Parcel located within an ISP/NSP activity area, which conforms to the objectives and specific requirements of the Neighborhood Stabilization Program under the Invest Saint Paul Initiative and meets an intended reuse as identified in the City Wide Comprehensive Plan and Consolidated Plan, legally described as:
462 Edmund Avenue: Lot 25, Block 10, Smith's Subdivision of Stinson's "Division of the Northwest ΒΌ of Section 36, township 29, Range 23, Ramsey County, Minnesota.
further identified as the "Parcel".
2. That the method of disposition of said Parcel is in accordance with the Neighborhood Stabilization Program and Rebuilding Plan 2009-2013 under the Invest Saint Paul Initiative, City Wide Redevelopment Plan and Consolidated Plan and is an appropriate method of making said Parcel available for redevelopment.
3. That the sum of Eighty Five Thousand Two Hundred Nineteen Dollars and 31/100 ($85,219.31) 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 authorizes $85,219.31of NSP1MHFA / NSP1HUD funds be provided to Urban Homeworks in the form of a forgivable loan, which will be secured with a Mortgage and Note against the Parcel according to the terms and conditions outlined in the HRA Board Report accompanying this Resolution, for the redevelopment of the Parcel, to provide affordable housing at or below 120% of the area median income and hereby conform to the objectives and specific requirements of the Neighborhood Stabilization Program and meet the intended reuse of the Parcel under the Program.
5. That HRA hereby authorizes up to $40,995.00 of NSP1HUD funds be reserved for Urban Homeworks in the form of a grant that can be utilized to fund up to $40,995.00 in gap assistance. If the funding gap is less than initially anticipated, any remaining funds would be retained by the HRA.
6. That Urban Homeworks, Inc. has the apparent qualifications and financial resources to acquire said Parcel in accordance with the Neighborhood Stabilization Program and Rebuilding Plan 2009-2013 under the Invest Saint Paul Initiative.
7. That the proposed disposal transaction by and between HRA and Urban Homeworks, Inc. is satisfactory in form and complies with the requirements of state and federal law for all Parcel.
8. That the execution and delivery of a Development, Loan and Grant Agreement between Urban Homeworks, Inc. 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 Deed of Conveyance of Parcel is in accordance with said Development Agreement and will include occupancy and use of the Property only as a single family home for resale to a qualified home buyer for ownership in accordance with NSP/ISP 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 Urban Homeworks, Inc. is hereby authorized by the Board of Commissioners to be executed on its behalf by the Chairperson or his/her designated Commissioner, subject to all the remaining conditions and restrictions required with the use of NSP funds.
11. That the Executive Director of the HRA is hereby authorized to negotiate and agree to any amendments, deletions or revisions to the Development Agreement which do not substantially change the rights or obligations of the HRA or Urban Homeworks Inc. under the Development Agreement, and further continue to comply with all NSP requirements; and is hereby authorized to take such further action necessary to implement this Resolution.