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Resolution Authorizing the Designation of Phoenix Development Company of Minneapolis, LLC as the Tentative Developer for the Properties Located at 782 - 805 Rice Street, 129 Sycamore and 119 Lyton Place, Saint Paul, MN, District 6, Ward 1
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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, HRA staff received a proposal for redevelopment of a HRA-owned vacant site at 782 - 805 Rice Street, 129 Sycamore and 119 Lyton Place, Saint Paul, MN (collectively, the “Property”), from Phoenix Development Company of Minneapolis, LLC; and
WHEREAS, according to the HRA’s disposition policy, HRA staff posted a request for proposals on the City of Saint Paul’s web page; and
WHEREAS, no further proposals were received by HRA staff in the 45 days after posting the request; and
WHEREAS, after reviewing the submitted proposal, staff recommends accepting the proposal from Phoenix Development Company of Minneapolis, LLC to construct a 41-unit multifamily apartment building with 58 off-street parking stalls (the “Project”) at the Property; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that Phoenix Development Company of Minneapolis, LLC, is designated as Tentative Developer for the Property until December 31, 2018 on the terms and conditions set forth in this Resolution.
BE IT FURTHER RESOLVED that the Tentative Developer shall complete the following tasks, at its expense, before December 31, 2018:
1. Complete and obtain HRA approval for a formal scope of work with architectural/engineering plans and specifications, which shall be suitable for submission to the Department of Safety and Inspections to obtain the proper building permits, shall incorporate Green/Sustainable Development guidelines, and shall include a site plan, elevations, exterior treatments/materials, and interior schematics.
2. Submit evidence of availability of construction financing for review by HRA staff for acceptability.
3. Finalize a detailed development budget and business plan for approval by HRA staff.
4. Receive all approvals for zoning, licenses and any other required City or State approval for the Project.
5. Negotiate final terms and conditions of a development agreement, which will include all compliance requirements, details of the bidding process, and a sworn construction cost statement from the selected contractor for the Project.
BE IT FURTHER RESOLVED that the terms and conditions of a development agreement between the HRA and the Tentative Developer shall include the following terms and restrictions:
1. All pre-development costs are the sole responsibility of the Tentative Developer.
2. The Tentative Developer must work with affected community groups.
3. The Property will be sold “as is.”
BE IT FURTHER RESOLVED that if the Tentative Developer does not timely complete the specified tasks or otherwise abide by the terms of this Resolution, its Tentative Developer Status shall terminate without further action by this Board upon notification of termination by the HRA Executive Director or the Executive Director may grant an extension of the Tentative Developer status for a period not exceeding six months upon a showing of significant progress of the tasks defined above by the Tentative Developer.