Title
Approving the November 8, 2017 HRA Board Meeting Minutes
Body
ROLL CALL
Present 6 - Commissioners Bostrom, Noecker, Prince, Stark, Thao and Chair Brendmoen
Absent 1 - Commissioner Tolbert
COMMUNICATIONS & RECEIVE/FILE
1. Amending the 2017 HRA Debt Service Budget to Accommodate Actual Tax Increment Bond Debt Service and Tax Increment Transferred to Tax Increment Financing Districts
Received and Filed as set forth in AO 17-83
2. Amending the 2017 HRA General Fund Budget to Reflect Revised Estimated PED Administration
Received and Filed as set forth in AO 17-84
CONSENT AGENDA
3. Approving the October 25, 2017 HRA Board Meeting Minutes
Adopted as set forth in Min 17-36
Moved by Commissioner Bostrom, Consent Agenda is Adopted
VOTE: Yeas - 6 Nays - 0
FOR DISCUSSION
Commissioner Tolbert Arrived
4. Resolution Approving and Designating The Ackerberg Group as Tentative Developer for the Public Safety Annex at 100 East 10th Street, Saint Paul, MN, District 17, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated this item is the recommendation to designate The Ackerberg Group as Tentative Developer for the building known as the Public Safety Annex at 100 East 10th Street. This building has long served a public purpose, including as a police training facility. As the City was considering use of this site after the police training facility relocated, the City was hearing from a lot of businesses downtown that they couldn’t find creative modern office space that they were looking for. That included two very public cases where we had innovation firms leave the City of Saint Paul because they couldn’t find appropriate space. We also knew that there were other developers beginning to develop this kind of creative office space downtown Saint Paul. The City collectively took a step back. Staff consulted with the local council member and leadership in the council, as well as other departments in the City. We decided to test the market to see whether or not there was use for the Public Safety Annex building and whether this building could serve this missing component of creative office space. The HRA was asked to go to the market and see if there was value in creating that particular use. The HRA put the building on the market for most of the summer and received three proposals from developers. By far the best offer that came in was from the Ackerberg group. They proposed not only to pay more than the appraised value for the site but also to put capital towards the final development of Pedro Park, as well as to operate and maintain the park over twenty years.
Chair Brendmoen requested more information on the steps taken by the City before putting the parcel on the market. Mr. Sage-Martinson stated that a meeting was held at Tin Whiskers with the community, Commissioner Noecker, the Mayor, Mr. Sage-Martinson representing the HRA, and Mike Hahm Director of the Parks and Recreation Department to explain the decision to go to the market and the next steps. Marketing of the building began shortly after that meeting.
Commissioner Prince requested more information on the commitment to downtown park space as stated in the Comp Plan. Mr. Sage-Martinson stated that the block containing the Public Safety Annex and Pedro Park was identified through the Fitzgerald Park Precinct Plan as the home for a full block park. The summary of which was adopted into the Comp Plan. The Fitzgerald Park plan also talks about pursuing the preservation of any historically significant buildings. This building was technically determined as potentially ‘also significant’. It also states that no use currently permitted on the site would be denied because of the long term hope to build a park on this block. All of the work done since then on designing the park has included options for a quarter block, a half block park, and a full block park. The City purposely looked at options for different sized parks because the vast majority of the block is privately owned and the operators of the private land have the ability to do that into the future. Mr. Sage-Martinson added that the Comp Plan is an important guiding document for the City and can always be amended by the City Council as things change.
Commissioner Noecker stated that the Public Safety Annex is not considered to be a historically significant building in the sense that would require it to be preserved, that it has never been designated as such, and the Fitzgerald Park plan was referring to another building across the street. Mr. Sage-Martinson agreed that the building is not designated historic and stated that there was a survey of buildings downtown noting which ones may have historical significance. The Public Safety Annex was listed as a potential historic resource; as ‘also significant’.
Mr. Sage-Martinson spoke about what kind of space Ackerberg is proposing to add and how that meets the goals of putting the building on the market to serve a specific need. Ackerberg has significant experience turning older buildings into creative modern office space; which both employers and developers agree is in high demand. In 2016, the City of Saint Paul had the lowest commercial vacancy rate that it has had in over a decade. That rate has increased in 2017. It’s increased for some very specific reasons; including, Osborn 370 was never counted in the competitive office space because it was privately owned, operated by one company, but has since moved into this competitive office space. There are also a couple of developers downtown who are holding some commercial space open as they’re looking at potential conversion of their commercial buildings to residential uses. The vacancy rate was 16% in 2016 and about 20% in 2017.
Katie Berg, Acting Chair Friends of Pedro Park, spoke in opposition of this resolution.
Stuart Ackerberg, Ackerberg Group, shared the Ackerberg Group vision for the Public Safety Annex and Pedro Park.
Commissioner Noecker shared her thoughts and reasons for voting against this item.
Commissioner Stark shared his thoughts, the need for more jobs in Saint Paul and his reasons for voting in favor of this item.
Commissioner Prince expressed her concerns and reasons for voting against this item.
Commissioner Thao revealed his reasons for voting against this item.
Commissioner Tolbert shared his thoughts and stated his reasons for voting in favor of this item.
Chair Brendmoen shared her thoughts and spoke in favor of this item.
Commissioner Bostrom spoke in favor of keeping the Public Safety Annex building.
Moved by Commissioner Stark, Resolution Approved as set forth in RES 17-1785
VOTE: Yeas - 4 Nays - 3 (Commissioners Thao, Noecker and Prince)
5. Resolution Approving and Authorizing the Removal of Contingencies and Execution of a Development Agreement for: (A) Sale and Conveyance of 940 Selby Avenue, 0 Selby Avenue, 0 Victoria Street, and 838 Selby Avenue, Saint Paul, MN to Rondo Community Land Trust and Community Housing Development Corporation, and (B) Commitment of HOME Funds, CDBG Funds and Net Land Sales Proceeds, District 8, Ward 1
Mr. Sage-Martinson, HRA Executive Director, stated this project is requesting final approval so it can proceed with development.
Moved by Commissioner Thao, Resolution Approved as Amended and set forth in RES 17-1778
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARINGS
6. Resolution Authorizing the Issuance and Sale of Conduit Health Care Facility Revenue Notes for the Cerenity - Marian of St. Paul Project, Located at 200 Earl Street, under Minnesota Statutes, Sections 469.152 through 469.1655 and Approving Related Documents, District 4, Ward 7
Mr. Sage-Martinson, HRA Executive Director, stated this item is requesting final approval of bonds.
Moved by Commissioner Prince, Resolution Approved as set forth in RES PH 17-316
VOTE: Yeas - 7 Nays - 0
7. Resolution Approving and Authorizing the Sale and Conveyance of HRA-Owned Parcels Located In Phalen Village, and Extending Tentative Developer Status, Greater East Side, District 2, Ward 6
Mr. Sage-Martinson, HRA Executive Director, stated this item is a request for the approval of sale and conveyance of HRA owned parcels located in the Phalen Village area and an extension of tentative developer status until December 31, 2018.
Moved by Commissioner Bostrom, Resolution Approved as set forth in RES PH 17-318
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
HRA Board Meeting is Adjourned