Title
Approving the December 13, 2017 HRA Board meeting minutes
Body
ROLL CALL
Present 4 - Commissioners Noecker, Prince, Stark and Chair Brendmoen
Absent 3 - Commissioners Bostrom, Thao and Tolbert
CONSENT AGENDA
1. Approving the November 8, 2017 HRA Board Meeting Minutes
Adopted as set forth in Min 17-41
2. Resolution Approving a Subordination for Bocce, LLC, doing business as Cossetta Alimentari, 211 West 7th Street, District 9, Ward 2.
Adopted as set forth in RES 17-1984
3. Resolution Authorizing a License Agreement with New Lens Urban Mentoring Society for use of HRA Property Located at 776 and 771 Selby Avenue, District 8, Ward 1
Adopted as set forth in RES 17-2000
Moved by Commissioner Prince, Consent Agenda is Adopted
VOTE: Yeas - 4 Nays - 0
FOR DISCUSSION
Commissioners Thao and Tolbert Arrived
4. Resolution of the HRA Board of Commissioners Approving the Final 2018 HRA Budget and Certifying the Final HRA Property Tax Levy Payable in 2018
Mr. Sage-Martinson, HRA Executive Director, stated this item has to do with the HRA Budget. The details have been presented and discussed previously. This vote increases the HRA Levy for 2018 by $275,562 above the 2017 Levy and is less than the maximum allowed.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES 17-1975
VOTE: Yeas - 6 Nays - 0
5. Resolution Approving and Designating M.O.E Craft Company, LLC as Tentative Developer for Fire House #10 at 754 Randolph Avenue, Saint Paul, MN, District 9, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated this resolution is regarding Fire House #10, also known as Chemical House #5 and Engine House #10. It was originally built in 1885 with an addition built in 1911 and has since been used mostly for storage by the Fire Department. With interest from the City to market the property for redevelopment, the HRA put the property on the market in the summer and received a number of responses. The recommendation before you is to offer tentative developer status to M.O.E Craft Company.
Commissioner Noecker thanked staff for a thorough and robust process on this property.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES 17-1978
VOTE: Yeas - 6 Nays - 0
6. Resolution Approving Inter Department Loan of an estimated $1,528,736 and Grant of an estimated $750,182 from the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota to the City of Saint Paul Department of Public Works for the Upgrade of the Riverview Sanitary Sewer Lift Station and Authorizing Execution of Restated and Combined Record of Inter Department Loan and Grant, District 3, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated with the development activity taking place and proposed with the West Side Flats neighborhood. In an effort to accommodate that activity, we’ve discovered that the Riverview Sanitary Sewer Lift Station needs to be upgraded to handle the increased capacity and the work will be completed by the Public Works department.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES 17-2012
VOTE: Yeas - 6 Nays - 0
7. Resolution Authorizing the Issuance of Conduit Multifamily Housing Revenue Bonds (West Side Flats Phase III B Apartment Project); Approving Related Documents; and Adopting a Housing Program, Northwest corner of Fillmore and Livingston Avenues, District 3, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated this is one of several affordable housing projects on the agenda today. This request is $13 million in tax exempt housing revenue bonds for one of the buildings proposed for the West Side Flats. Building B is an 82 unit affordable housing building with units at 50% & 60% of median and the affordability requirement would remain with the building for forty years.
Commissioner Thao asked how many units are one & two bedrooms and if there will be three bedroom units. Mr. Sage-Martinson stated that building B has 82 units, 32 units are available at 50% of median and 50 units are available at 60% of median. Kyle Brasser, Sherman Associates, stated there are 10 studio apartments, 18 one-bedroom, 30+ two-bedroom and 10 three-bedroom units in this proposed development.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES 17-2010
VOTE: Yeas - 6 Nays - 0
8. Resolution Approving HRA Grant and Loan to The Victoria Theater Arts Center Project Located At 825 University Avenue West, District 7, Ward 1
Mr. Sage-Martinson, HRA Executive Director, stated this item is requesting two actions related to the Victoria Theater. The first is to approve a $200,000 HRA grant that would go to the Land Bank Twin Cities, which currently owns the property. This grant is for immediate stabilization work particularly replacing the roof and other more immediate stabilization. The second action is to approve a $412,000 HRA loan to the Victoria Theater Arts Center for the acquisition and rehabilitation of the property as a community arts center. This would be disbursed upon final construction, a budget, sources and uses put forward and a number of other conditions when the redevelopment project is ready to move forward.
Moved by Commissioner Thao, Resolution Approved as set forth in RES 17-2031
VOTE: Yeas - 6 Nays - 0
Commissioner Bostrom Arrived
9. Resolution Approving the Issuance of Conduit Multifamily Housing Revenue Notes (Thomas Avenue Flats Project); Approving Related Documents; Adopting a Housing Program; and Authorizing a Loan of up to $1,300,000.00 in HOME Funds, 1500 Thomas Avenue, District 11, Ward 4
Mr. Sage-Martinson, HRA Executive Director, stated this item is another affordable housing project request, this one located at 1500 Thomas Avenue. There are two components to this request; $7.2 million in tax exempt housing conduit revenue bonds and $1.3 million loan of home funds to help make this project happen.
This is an affordable housing project that includes a mix of one-, two- and three-bedroom units with the vast majority being two and three bedrooms. These will be available to folks earning 60% AMI.
Commissioner Stark shared his excitement about this project.
Moved by Commissioner Stark, Resolution Approved as Amended and set forth in RES 17-2004
VOTE: Yeas - 7 Nays - 0
10. Resolution Approving Bond Allocation Transfer Agreement and Related Documents, Citywide
Mr. Sage-Martinson, HRA Executive Director, stated this item is to approve a bond transfer agreement with the City of Minneapolis. There are a number of affordable housing projects in the pipeline requiring housing revenue bond financing beyond Saint Paul’s current issuance capacity. With the proposed Federal tax bill potentially eliminating private activity bonds including housing revenue bonds in 2018, the City of Minneapolis has agreed to transfer $18 million of their bonding authority that they are unable to use this year to the City of Saint Paul. If private activity bonds are retained, Saint Paul will return a like amount to the City of Minneapolis from our 2018 bonding authority allocation.
Commissioner Stark thanked Patty Lilledahl and the housing team for figuring this out in the last few weeks.
Moved by Commissioner Stark, Resolution Approved as set forth in RES 17-2003
VOTE: Yeas - 7 Nays - 0
11. Resolution Approving Bond Allocation Transfer Agreements and Related Documents, Citywide
Mr. Sage-Martinson, HRA Executive Director, stated this item is to approve a bond transfer agreement with Dakota County and MHFA. Similar to the agreement with the City of Minneapolis (agenda item 10), this agreement would transfer $18.3 million in bonding authority from Dakota County Community Development Agency and $282,000 from MHFA. An equivalent amount of bonding authority will be transferred back to these partners from Saint Paul’s 2018 allocation if private activity bonds are retained.
The amended resolution includes the Como by the Lake project. In the event MHFA is able to fund Como by the Lake this year through their bonding pool, we will return a like amount in 2019.
Moved by Commissioner Thao, Resolution Approved as Amended and set forth in RES 17-2039
VOTE: Yeas - 7 Nays - 0
12. Resolution Approving the Issuance and Sale of Conduit Multi-family Housing Revenue Bonds (Millberry Apartments Project); Approving Related Documents; Waiving the Policy on Developer’s Fees; and Adopting a Housing Program, 700 Emerald Street, District 12, Ward 4
Mr. Sage-Martinson, HRA Executive Director, stated this item is a great affordable housing project at 700 Emerald Street known as the Millberry Apartments project developed by Dominium. This is a 121 unit workforce housing rental building that is part of the former Weyerhaeuser site. This development includes one-, two- and three-bedroom units that are all affordable at 60% AMI with an affordability period of twenty two years. The total development cost is $38 million, and the City’s participation is $19 million in conduit tax exempt housing revenue bonds.
Commissioner Thao asked if the lowest percentage of affordability is 50%. Mr. Sage-Martinson stated that the units are available to residents at 60% AMI.
Commissioner Stark thanked staff for the work on this project and thanked Dominium for involving the community in the design.
Moved by Commissioner Stark, Resolution Approved as set forth in RES 17-2037
VOTE: Yeas - 7 Nays - 0
13. Resolution Approving the Issuance and Sale of Conduit Multi-family Housing Revenue Bonds (Legends at Berry Senior Apartments Project); Approving Related Documents; Waiving the Policy on Developer’s Fees; and Adopting a Housing Program, 700 Emerald Street, District 12, Ward 4
Mr. Sage-Martinson, HRA Executive Director, stated this request is another affordable housing project in the same area. This a 242 unit senior rental building. 100% of the units will be available for folks earning 60% AMI and below with affordability guaranteed for twenty two years.
Moved by Commissioner Stark, Resolution Approved as set forth in RES 17-2038
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARINGS
14. Resolution Authorizing the Issuance of Conduit Revenue Refunding Bonds for District Energy St. Paul, Inc., with Facilities throughout Downtown Saint Paul and Surrounding Areas, under Minnesota Statutes, Sections 469.152 through 469.1655 and Approving Related Documents, District 17, Ward 2
Mr. Sage-Martinson, HRA Executive Director, stated this item is to approve up to $50 million and authorizing execution of the documents for conduit revenue refunding bonds for District Energy. This allows District Energy to refund current bonds they have and experience significant interest savings. This is a conduit bond issue so there is no obligation on the part of the HRA or the City to repay the bonds.
Moved by Commissioner Noecker, Resolution Approved as set forth in RES PH 17-348
VOTE: Yeas - 7 Nays - 0
15. Resolution Approving and Authorizing the Sale and Conveyance of the Property Located at 700 4th Street East to Eden Builders, Inc.; Authorization to Enter into a Development Agreement; and Authorization of Expenditures for Redevelopment, District 4, Ward 7
Mr. Sage-Martinson, HRA Executive Director, stated this item is a request to approve selling 700 4th Street East to Eden Builders and expending funds in our Inspiring Communities program to build a single family house.
Commissioner Prince thanked PED staff for their work on this.
Moved by Commissioner Prince, Resolution Approved as set forth in RES PH 17-350
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
HRA Board Meeting is Adjourned