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Resolution Approving and Authorizing the Sale and Conveyance of 216-218 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.; 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 Minnesota Statutes, Section 469.002, Subdivision 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 (“the Strategy”) 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 Strategy’s Inspiring Communities Program (“the Program”); and
WHEREAS, HRA staff released a Request for Proposals (“the RFP”) on March 31, 2016 to solicit proposals for redevelopment of HRA owned real property including 216-218 Bates Avenue (“the Parcel”), consistent with Strategy goals and utilizing the Program process, and analyzed proposals received; and
WHEREAS, HRA staff determined that a proposal received by Cory A. Vandenberghe scored highest of proposals received for 216-218 Bates, according to the scoring criteria included in the RFP, and therefore recommends proceeding with land sale and development agreement with this person (‘the Recommendation”); and
WHEREAS, the Recommendation assumes sale of the Parcel for $1, and requires a cash subsidy of $178,000; and
WHEREAS, the adjacent property at 212 Bates Avenue is experiencing drainage issues that may be exacerbated by HRA-subsidized rehabilitation work at 208-210 Bates Avenue and the Parcel; and pro-active corrective work at 212 Bates Avenue will cost $40,000; and
WHEREAS, on September 9, 2009, by Resolution 09-09/09-6, the HRA Board authorized expenditure of $400,000 of Invest Saint Paul Initiative funds for the rehabilitation of 208-210 Bates Avenue (“208 Bates ISP funds”); of which $3,245 has been expended; and of which only $178,755 is necessary for future use at 208-210 Bates Avenue, resulting in a balance of $218,000; and
WHEREAS, the legal description of the Parcel is as follows: Lots 5 and 6, Auditor’s Subdivision No. 20, except the Northeasterly 70.4 feet thereof, Ramsey County, 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 December 24, 2016 and after a public hearing that was held on Wednesday, January 11, 2017 at 2:00 pm, central standard 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, and finds a public purpose for the expenditure of funds for the redevelopment of the Parcel, and finds a public purpose for expenditure of funds for corrective drainage work at 212 Bates Avenue.
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 approves the Recommendation and authorizes the sale and conveyance of 216-218 Bates Avenue for $1 to Cory A. Vandenberghe on the terms and conditions described in the staff report and Recommendation.
2. The HRA Board approves the execution of a development agreement with Cory A. Vandenberghe consistent with the approvals contained in this Resolution and Program requirements and which will contain applicable compliance requirements.
3. The HRA Board authorizes the HRA Executive Director to negotiate a development agreement that is consistent with the intent of this Resolution and is approved by the City Attorney Office.
4. The HRA Board approves and authorizes expenditure of $178,000 of 208 Bates ISP funds for redevelopment of the Parcel, as detailed in the staff report.
5. The HRA Board approves and authorizes expenditure of $40,000 of 208 Bates ISP funds for drainage correction work at 212 Bates Avenue, as detailed in the staff report.
6. The HRA Board authorizes and directs staff to take all actions necessary to carry out the activities authorized by this Resolution, and the HRA Executive Director is 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 deed of conveyance to the purchaser.