Title
Resolution Approving Bond Allocation Transfer Agreement and Related Documents, Citywide
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 pending federal tax reform legislation has created uncertainty on whether tax exempt entitlement bonds will be eliminated in 2018 causing HRA staff to accelerate closing on bond projects before December 31, 2017 using HRA’s current tax-exempt entitlement allocation; and
WHEREAS, the HRA has more requests for bond entitlement than is available and staff has secured a Bond Allocation Transfer Agreement (“Bond Allocation Transfer Agreement”) with the City of Minneapolis to transfer up to $18,098,203 of its 2017 entitlement which it will not be able to use in 2017 and the City of Saint Paul (“City”) is also a party to this Bond Allocation Transfer Agreement since the City receives the federal allocation and then by ordinance designates the HRA to exercise the City’s powers; and
WHEREAS, if Minneapolis determines that tax-exempt bon...
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