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Resolution approving and authorizing the sale and conveyance of 800 Robert Street South, 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, District 3, Ward 2
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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 owns a vacant lot with the address 800 Robert Street S (the “Parcel”); and
WHEREAS, the legal description of the Parcel is as follows: Lot 2, Auditor’s Subdivision of Lot 6, Bidwell’s Addition to West St. Paul, Ramsey County, Minnesota; and
WHEREAS, the Parcel was purchased and maintained using Community Development Block Grant (“CDBG”) funds and HRA is therefore required to follow CDBG regulations and is required to meet a CDBG National Objective; and
WHEREAS, construction of a new single-family house, sold to an income-eligible household will meet a CDBG National Objective; and
WHEREAS, there is now lawfully in effect in the City of Saint Paul, Minnesota, a City-Wide Comprehensive Plan and a Consolidated Five-Year Plan; and
WHEREAS, HRA Staff determined that a proposal submitted to the HRA by Neighborhood Development Alliance (“NeDA”), to acquire the Parcel, build a new single-family house there, and sell the newly built house to a CDBG eligible household for homeownership, is a positive Public Purpose, (the “Recommendation”); and
WHEREAS, in the interest of providing NeDA with a competitive enhancement to their pending application to Minnesota Housing Finance Agency for an Impact Fund grant no later than September 1, 2020; and in the interest of facilitation completion of the proposed project prior to a HUD-mandated deadline of December 2021; and in recognition of NeDA’s unique status as a Community Based Development Organization, Staff request that the 45-day ENS notification requirement in HRA’s Disposition Policy be waived; and
WHEREAS, a concurrent CDBG budget action by the City is needed for this project; and
WHEREAS, the Recommendation was considered by the HRA Board pursuant to due notice thereof that was published in the Legal Ledger on August 13, 2020 and after a public hearing held on August 26, 2020 at 2:00 pm, Central Standard Time; 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 Parcel to NeDA 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 NeDA consistent with 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 the Chair/Commissioner, HRA Executive Director, and Director of the Office of Financial Services to execute the Development Agreement.
3. The HRA Board supports, approves, and authorizes a gross subsidy of $125,800, which includes $13,300 in land acquisition financing by an HRA forgivable loan, and a cash subsidy of $112,500 in CDBG funds, also by forgivable loan.
4. The HRA Board approves and authorizes 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 Parcel to NeDA.