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Amending the financing and spending plans in the Department of Parks and Recreation for $1,500,000 streets and public spaces improvements funding from the 8-80 Vitality Fund for acquisition of property for parkland in the area of Griggs Street and University Avenue, and to enter into a purchase agreement with The Trust for Public Land detailing the terms of the purchase.
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WHEREAS, on September 24, 2014, the City Council adopted RES 14-1646 preliminarily approving the 2014 Bond Sale and on October 22nd adopted RES 14-1854 authorizing the issuance and negotiated sale of the 2014F and 2014G Sales Tax Revenue Bonds which closed on December 9, 2014; and
WHEREAS, the proceeds derived from the sale of the Series 2014F and 2014G Sales Tax Revenue Bonds are to be expended for capital projects to further residential, cultural, commercial, and economic development in both downtown Saint Paul and Saint Paul neighborhoods, and payment of the costs of issuing the 2014F and 2014G Bonds, including any underwriters' compensation; and
WHEREAS, $40,000,000 in sales tax revenue bond proceeds and $2,500,000 in street maintenance assessments will be used for the creation of the 8-80 Vitality Fund; and
WHEREAS, on December 17, 2014, the City Council adopted RES PH 14-343, allocating to the 8-80 Vitality Fund: $8,000,000 for Palace Theater Renovations; $8,000,000 for Jackson Street reconstruction and beginning the construction of the Downtown Bike Loop; $13,200,000 for the Grand Round investment; $2,000,000 for Dickerman Park development; $1,800,000 for optical fiber infrastructure; and $9,500,000 for streets and public spaces improvements; and
WHEREAS, the $9,500,000 for streets and public spaces in the 8-80 Vitality Fund was referenced with a list of projects, noted in a memo to Council Members from Jonathan Sage-Martinson, Director of Planning and Economic Development, dated October 8, 2014; and
WHEREAS, RES PH 15-87 was approved by Council on April 1, 2014 allocating 8-80 Vitality Fund: $525,000 for additions to street improvements on North Snelling; $450,000 for Downtown Bike Loop planning and temporary treatments, $300,000 for Little Mekong Plaza development, and $100,000 for River Balcony Phase I design $1,500,000 for acquisition of park land referred to as Lexington Commons but yet to be officially named; and
WHEREAS, RES PH 15-158 was approved by Council on June 17, 2015 allocating 8-80 Vitality Funding to the following: $1,453,270 for Raymond Avenue Phase II; $1,000,000 for the Payne and Bedford Avenue intersection realignment; and $225,000 for the Payne, East 7th Avenue and Bruce Vento trailhead intersection realignment and trailhead parking lot reconstruction; and
WHEREAS, City of Saint Paul (City) plans cite a specific need for a new park in the Griggs Street and University Avenue geographic area; and
WHEREAS, Whitaker Buick, Alerus, and Krebsbach are the current owners of certain real property located in the City of Saint Paul; and
WHEREAS, the Trust for Public Land (TPL) has committed to securing funds through various sources including grants and donations in the amount of $1,035,000 for this same purpose; and
WHEREAS, the TPL has proposed to acquire the Property from Whitaker Buick for the sum of $1,050,000; and
WHEREAS, the TPL has proposed to acquire the Property from Alerus for the sum of $750,000; and
WHEREAS, the TPL has proposed to acquire and the Property from Krebsbach for the sum of $735,000; and
WHEREAS, the City has dedicated $1,500,000 from the 8-80’s Vitality Fund for acquisition of park land in this geographical area; and
WHEREAS, the total purchase price for the SUBJECT PROPERTIES under this Agreement shall total $2,535,000; $1,500,000 streets and public spaces improvements funding from the 8-80 Vitality Fund (RES PH 14-343 and PH 15-87), and $1,035,000 TPL raised funds; and
WHEREAS, the City wishes to purchase the properties from the TPL and the TPL wishes to sell the properties to the City upon TPL’s acquisition of the properties from the current owners in accordance with the terms and conditions set forth in the Terms of Purchase Agreement (attached); and
WHEREAS, if TPL successfully obtains other funding for this project restricted to use as acquisition capital only, and such restricted funds total in excess of $1,035,000, then the purchase price for the properties shall be reduced by such amount dollar for dollar; provided, however, that the City commits to use such reduced amount for initial improvements to the properties; and
WHEREAS, Saint Paul Parks and Recreation Commission recommended that the City of Saint Paul and the Department of Parks and Recreation establish a $1,500,000 budget to enter into a purchase agreement with the TPL for land acquisition at their August 12, 2015 Park Commission meeting; and
WHEREAS, that the Mayor, pursuant to Section 10.07.4 does certify that there are funds of up to $1,500,000 to be used in the land acquisition in the area of Griggs Avenue and University Avenue as described in the PURCHASE AGREEMENT; now, therefore, be it
RESOLVED, that $1,500,000 of the $9,500,000 8-80 Vitality Funds for streets and public spaces improvements be allocated to acquisition of property for parkland in the area of University Avenue and Griggs Street; and be it
FURTHER RESOLVED, that the proper City Officials are hereby authorized to approve said purchase agreements in a form and content substantially as set forth in attached term sheet and the attached Whitaker purchase agreement.
See Attached Terms of Purchase Agreement and Whitaker Buick Purchase Agreement
Financial Analysis
See Attachment