Title
Resolution approving and authorizing execution of a development agreement for the sale and development of HRA owned Seven Corners Gateway site to Gateway QOZ Ventures LLC, District 17, Ward 2
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 HRA owns a parcel of land located at 150 Smith Avenue, Saint Paul, Minnesota, that is across from the Xcel Energy Arena and is bounded by Smith Avenue, Kellogg Boulevard, West Seventh, and Fifth Streets (“HRA Property”) that is commonly referred to as the Seven Corners Gateway Site and is being used as a surface parking lot; and
WHEREAS, the HRA proposes to sell and convey the HRA Property to Gateway QOZ Ventures LLC, an affiliate of Kaeding Management Group (“Developer”) under a development agreement (“Development Agreement”) for the construction of both a market rate rental housing development and a hotel development with first floor active retail space and an open plaza space in the center of the site, as more fully described in the staff report submitted to the HRA Board with this Resolution (“Project”); and
WHEREAS, the sale of the HRA Property will be at an appraised fair market value and no HRA funds will be contributed to the construction of the Project; and
WHEREAS, notice of this proposed sale was published in the Saint Paul Pioneer Press and a public hearing was held on Wednesday, April 10, 2019, at 2:00 pm, central daylight time, on the third floor of City Hall, 15 West Kellogg Boulevard, Saint Paul, Minnesota; and
WHEREAS, by this resolution the HRA finds a public purpose for the sale and conveyance of the HRA Property to the Developer.
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 Board of Commissioners hereby approves the sale and conveyance of the HRA Property to the Developer on the terms and conditions described in the Development Agreement together with any non-substantive modifications thereto approved by the HRA Executive Director with the consent of the City Attorney Office.
2. The HRA Board of Commissioners further approves the execution and delivery of the Development Agreement and authorizes and directs the Chair or Commissioner, HRA Executive Director, and Director, Office of Financial Services to execute the Development Agreement.
3. The HRA Executive Director is authorized and directed to finalize all other documents and agreements necessary to effectuate the sale and conveyance of the HRA Property to the Developer.
4. 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 other documents and instruments in connection with this Resolution and the HRA Chair shall execute the deed of conveyance of the HRA Property to the Developer.