Title
Resolution approving an amendment to the project budget to allocate additional funds to the Willow Reserve project for the purpose of contamination cleanup, District 6, Ward 5
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.; and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law; 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, 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 Statues section 469.002, subd. 14; and
WHEREAS, on March 23, 2016, by Resolution 16-99, the HRA authorized funding the development gap for the construction of 11 single-family homes, public infrastructure, and a public alley by Habitat for Humanity; and
WHEREAS, as construction began, Habitat encountered a significant amount of contamination, including buried construction debris and asbestos; and
WHEREAS, the cost to mitigate the contamination on the site is $700,000, of which Habitat has offered to contribute $459,000, leaving a gap of $241,000; and
WHEREAS, the additional funding will be from the Community Development Block Grant program (CDBG); and
WHEREAS, The CDBG funds will replace HRA funds that were previously allocated for construction of public infrastructure, along with a previous allocation of CDBG dollars for public infrastructure. This replacement of sources will allow the HRA to address the contamination cleanup with the HRA funds and will result in consistent use of CDBG funds for public infrastructure, and therefore will meet the original National Objective; and
WHEREAS, the HRA has made significant investments in this property and the Willow Reserve passive recreation space; and
WHEREAS, as the additional funds are directed toward public infrastructure, they will be structured as a grant to TCHFH; and
WHEREAS, the HRA Board finds a public purpose in the additional investment of $241,000 in CDBG grant funds for public infrastructure and in utilizing HRA dollars to ensure that the contaminants are appropriately mitigated;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA hereby approves an additional investment of $241,000 in grant funds to the Willow Reserve project.
2. The HRA Executive Director, staff and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution. The HRA’s Executive Director is authorized to execute any documents and instruments in connection with this Resolution.