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Resolution approving and authorizing the sale and conveyance of 699 Preble Street, 1025 Sims Avenue and 633 Hall Avenue under the Inspiring Communities program, authorization to enter into a development agreement, authorization of expenditures for redevelopment and authorization to waive the 45-day written notice in the HRA Disposition Policy, Districts 3 & 5, Wards 2, 6 & 7
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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 Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, the HRA has duly adopted and there is now lawfully in effect in the City of Saint Paul, Minnesota, a City Wide Comprehensive/Redevelopment Plan providing for the acquisition, clearance and resale of land for redevelopment and the City Consolidated Five-Year Plan; and
WHEREAS, on July 24, 2013, by Resolution 13-1097 the HRA Board accepted and approved the HRA Disposition Strategy Work Plan and Budget (“Plan”) to address the disposition of certain parcels of real property owned by the HRA; and
WHEREAS, on October 9, 2013, by Resolution 13-1592 the HRA Board accepted and approved key terms of the Plan’s Inspiring Communities Program (“Program”); and
WHEREAS, the legal descriptions of the properties described in this Resolution (collectively the “Properties” and each individually a “Property”) are as follows:
699 Preble Street - Lot 6, Block 4, Irvine’s Second Addition to Saint Paul, Ramsey County, Minnesota; and
1025 Sims Avenue - Lot 28, Block 72, Dawson’s Earl St. Addition to St. Paul, Ramsey County, Minnesota; and
633 Hall Avenue - Parcel 1: Lot 9, except the south 10 feet thereof in Block 121, West St. Paul together with the benefits and burdens of easement granted and reserved in Book 843 of Deeds, Page 267, Ramsey County Minnesota.
Parcel 2: The South 3 three of Lot 10, Block 121, West St. Paul, except the following portion of said lot: Commencing at a point 6.5 feet East of the Northwest corner of said Lot 10; thence West 6.5 feet on the North line of said Lot 10, to the Northwest corner of said Lot 10; thence 50 feet South along the Westerly line of said Lot 10; thence East on the Southerly line of said Lot 10, 3.5 feet thence on a straight line of said Lot 10 to the place of beginning together with a Maintenance Agreement filed for record in book 282 of Misc.; Page 447, Ramsey County, Minnesota.
All that part of Lot 10 in Block 121 of West St. Paul, and described as follows, to wit: Commencing at a point 6.5 feet East of the Northwest corner of said Lot 10, to the Northwest corner of said Lot 10; thence South 50 feet along the Westerly line of said Lot 10; thence East on the Southerly line of said Lot 10, 3.5 feet thence on a straight line of said Lot 10 to the place of beginning.
Parcel 3: All that part of Lot 10, Block 121 of West St. Paul and described as follows, to wit: Commencing at a point 6.5 feet East of the Northwest corner of said Lot 10; thence West 6.5 feet on the North line of said Lot 10 to the Northwest corner of said Lot 10; thence South 50 feet along the Westerly line of said Lot 10; thence East of the Southerly line of said Lot 10. 3.5 feet; thence on a straight line across said Lot 10 to the place of beginning, Ramsey County, Minnesota.
WHEREAS, the Properties are now vacant single-family lots that have been purchased, were demolished, and/or maintained using CDBG funds, in addition to federal Neighborhood Stabilization Program (NSP) funds received through the State of Minnesota and are therefore required to follow CDBG and NSP regulations to meet a national objective; and
WHEREAS, the national objectives to be met as a result of the projects, will be a new single-family, owner-occupied home on each Property sold to an income-eligible household; and
WHEREAS, HRA Staff determined that an unsolicited proposal submitted to the HRA by Dayton’s Bluff Neighborhood Housing Services (“DBNHS”), to acquire, develop, and sell the Properties to eligible households for homeownership, is consistent with the objectives and goals of the Program and therefore recommends proceeding with a land sale and execution of a Development Agreement with DBNHS (the “Recommendation”); and
WHEREAS, in the interest of beginning these projects in the spring 2020 construction season, meeting CDBG spending deadlines and NSP close out requirements, staff requests that the 45-day ENS notification requirement be waived; and
WHEREAS the Inspiring Communities’ HRA, NSP and CDBG allocations have a sufficient balance to fund DBNHS’s subsidy request that is described in the staff report accompanying this Resolution; and
WHEREAS, the Recommendation was considered by the HRA Board pursuant to due notice thereof that was published in the Saint Paul Pioneer Press on February 29, 2020 and after a public hearing that was held on March 11, 2020 at 2:00 pm, Central Standard 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 Properties.
NOW THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, as follows:
1. The HRA Board hereby approves the Recommendation and authorizes the sale and conveyance of the Properties to DBNHS on the terms and conditions described in the staff report and this Resolution.
2. The HRA Board hereby approves and authorizes the execution of a Development Agreement with DBNHS consistent with Program requirements, applicable HRA compliance requirements, and the approvals contained in this Resolution, with the approval as to form of the City Attorney’s Office and authorizes and directs the Chair/Commissioner, HRA Executive Director, and Director of the Office of Financial Services to execute the Development Agreement.
3. The HRA Board approves a gross subsidy of $493,946, which includes $20,651 in financing, and a cash subsidy of up to $473,295 from the Plan budget.
4. The HRA Board approves the waiver of the 45-day notification requirement in the Policy and Procedures for Disposition of HRA Owned Real Estate.
5. The HRA Board hereby authorizes and directs staff to take all actions necessary to carry out the activities authorized by this Resolution, and the Executive Director is hereby authorized and directed to execute all other documents and instruments necessary to effectuate the activities to be undertaken by this Resolution except that the HRA Chair/Commissioner shall execute the deeds of conveyance of the Properties to DBNHS.