Title
Resolution Approving and Authorizing the Sale and Conveyance of 208-210 Bates; Authorization to Enter into a Development Agreement, and Authorization of Expenditures for Redevelopment. District 4, Ward 7.
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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 HRA has duly adopted and there is now lawfully in effect in the City of Saint Paul, Minnesota, a City Wide Comprehensive/Redevelopment Plan providing for the acquisition, clearance and resale of land for redevelopment and a City Consolidated Five-Year Plan; and
WHEREAS, on July 24, 2013, by Resolution 13-1097 the HRA Board accepted and approved the HRA Disposition Strategy Work Plan and Budget (“Plan”) to address the disposition of certain parcels of real property owned by the HRA; and
WHEREAS, on October 9, 2013, by Resolution 13-1592 the HRA Board accepted and approved key terms of the Plan’s Inspiring Communities Program (“Program”); and
WHEREAS, HRA staff released an RFP on March 31, 2016 to solicit proposals for redevelopment of HRA owned real property including 208-210 Bates (“the Parcel”), utilizing the Inspiring Communities program process structure, and analyzed proposals received; and
WHEREAS, HRA staff determined that a proposal received by a partnership of Eric Foster and Historic Saint Paul scored highest of proposals received for 208-210 Bates, according to the scoring criteria included in the RFP, and therefore recommends proceeding with land sale and development agreement with this partnership (‘the Recommendation”); and
WHEREAS, the cash subsidy required for the recommended proposal is in excess of already budgeted funds for this property; and
WHEREAS, the 2015 CDBG Multifamily Fund has sufficient balance to help fund the excess needed developer subsidy, and this proposal is consistent with CDBG Multifamily Fund programmatic goals; and
WHEREAS, the CDBG 716 Wilson Fund and the CDBG Bates/Conway Fund have sufficient balance to help fund the excess needed developer subsidy, and this proposal is consistent with those funds’ programmatic goals; and
WHEREAS, the legal description of the Parcel is as follows: Lot 9, Auditor’s Subdivision No. 20, St. Paul, Minnesota; and
WHEREAS, the Recommendation was considered by the HRA Board pursuant to due notice thereof that was published in the Saint Paul Pioneer Press on October 1, 2016 and after a public hearing that was held on Wednesday, October 12, 2016 at 2:00 pm, central time, on the third floor of City Hall, 15 West Kellogg Boulevard, Saint Paul, Minnesota; and
WHEREAS, by this resolution the HRA finds a public purpose for the sale and conveyance of the Parcel.
NOW THEREFORE BE IT RESOLVED that the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, hereby approves as follows:
1. The HRA Board hereby approves the Recommendation and authorizes the sale and conveyance of 208-210 Bates Avenue for $1 to Eric Foster and Historic Saint Paul Nonprofit Corporation and their assigns on the terms and conditions described in the staff report and Recommendation.
2. The HRA Board approves the execution of a development agreement with Eric Foster and Historic Saint Paul Nonprofit Corporation and their assigns consistent with the approvals contained in this Resolution and Program requirements and which will contain applicable compliance requirements. The Executive Director is authorized to negotiate development agreements that are consistent with the intent of this Resolution and are approved by the City Attorney Office.
3. The cash subsidy need of $600,000 for redevelopment of the Parcel, as detailed in the staff report is hereby approved and authorized.
4. $321,000 of CDBG funds, as detailed in the accompanying Budget Resolution, are hereby approved and authorized for use on this project.
5. The HRA Board hereby authorizes and directs staff to take all actions necessary to carry out the activities authorized by this Resolution, and the Executive Director is hereby authorized and directed to execute all documents and instruments necessary to effectuate the activities to be undertaken by this Resolution except that the HRA Chair/Commissioner shall execute the deeds of conveyance to the purchasers/developers.