Title
Resolution approving and authorizing execution of Funding Agreement with City of Saint Paul for Soccer Stadium Site Infrastructure and Remediation Costs; and approval of a Budget Amendment; District 13, Ward 1
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) improving the tax base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minn Stat Section 469.002, Subd. 14; and
WHEREAS, the City of Saint Paul (“City”) City Council on August 26, 2015 passed Resolution No. 15-1539 (“City Resolution”) supporting the development of a soccer stadium (“Stadium”) at the site located at 400 N. Snelling Avenue, Saint Paul, Minnesota (“Property”) by MUSC Holdings LLC (“Team”); and
WHEREAS, City staff has been negotiating with the Team the terms of a development agreement (“Development Agreement”), a playing and use agreement (“Use Agreement”) and an environmental project management agreement (“Environmental Agreement”) for the design, construction and operation of the Stadium, and has further been negotiating with Metropolitan Council the terms of a net ground lease for the Property (“Lease”)(the Development Agreement, Use Agreement, Environmental Agreement and Lease are collectively referred to as the “Development Documents”); and
WHEREAS, under the Development Documents the Team will pay for all the costs for the design, construction and operation of the Stadium, and the City will pay for certain costs relating to remediation of the Property in an amount not to exceed $1,500,000.00 (“Remediation Costs”) and the installation of standard infrastructure in an amount not to exceed $16,100,000.00 (“Infrastructure Costs”); and
WHEREAS, the City is responsible to pay soft costs outside of the Development Agreement in an amount not to exceed $710,000.00 (“Soft Costs”); and
WHEREAS, the City is requesting that the HRA provide funding for the Remediation Costs, Infrastructure Costs and Soft Costs and the HRA is willing to do so on the terms and conditions of a funding agreement negotiated by staff for the City and HRA (“Funding Agreement”) which Funding Agreement is being brought to the HRA Board for its consideration and approval; and
WHEREAS, the HRA’s obligations under the Funding Agreement and the HRA budget (Attachment A) being approved in this Resolution are subject to approval of all future actions required by Minnesota law to amend certain tax increment financing (“TIF”) plans and TIF budgets (including notices and public hearings) to reflect receipt and spending of tax increment revenues generated from the sale of the Penfield project, and further subject to the HRA receipt of $1,500,000.00 from the Saint Paul Port Authority for the Remediation Costs; and
WHEREAS, the City Council approved at its March 2, 2016 meeting the Development Documents and Funding Agreement; and
WHEREAS, the HRA Board of Commissioners determines there is a public purpose to take all the actions described in and approved in this Resolution since the design, construction and operation of the Stadium and related development will: (i) provide a venue for professional soccer and a broad range of entertainment and commercial activities, (ii) further the vitality of Saint Paul’s midway area by generating increased economic activity consistent with the Snelling Station Area Plan, (iii) further economic development and stimulate the local economy overall, and (iv) cause the property tax base to increase in the surrounding area; and
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 HRA Board of Commissioners hereby approves the Funding Agreement with the City in a form substantially consistent with the form attached hereto, and authorizes and directs that the Chair/Commissioner, Executive Director, and Director of the Office of Financial Services to execute and deliver the Funding Agreement.
2. The budget as detailed in Attachment A is hereby approved.
3. The HRA Executive Director, staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution. The HRA’s Executive Director is authorized to negotiate any amendments to the Funding Agreement that do not materially change the terms and conditions of such agreement with the approval of the City Attorney and execute any other necessary documents and instruments in connection with this Resolution.