Title
Resolution approving and authorizing the sale and conveyance of 47 Douglas Street, approving and authorizing execution of a development agreement, and approving and authorizing expenditures for redevelopment, District 9, 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 has duly adopted and there is now lawfully in effect in the City of Saint Paul, Minnesota, a City Wide Comprehensive/Redevelopment Plan and City Consolidated Five-Year Plan providing for the acquisition, clearance and resale of land for redevelopment; and
WHEREAS, the HRA owns a vacant single-family house with an address 47 Douglas Street (the “Property”); and
WHEREAS, the HRA received the Property as a donation in 2010, and subsequently maintained the Property by utilizing a variety of funding sources including Community Development Block Grant (“CDBG”) funds, and
WHEREAS, on October 9, 2013, by Resolution 13-1592, the HRA Board accepted and approved key terms of the Inspiring Communities Program (the “Program”); and
WHEREAS, the Property was included in the Program, and has been offered for sale through requests for proposals per Program design, and HRA staff has been unsuccessful in identifying an interested developer through this process; and
WHEREAS, on August 8, 2018, by Resolution PH 18-235, the HRA Board authorized the sale and conveyance of the Property to a developer who emerged through an unsolicited offer, approved the execution of a development agreement, and approved allocation of development subsidy funds; and
WHEREAS, the developer mentioned in the previous clause was unable to secure project financing and did move forward as planned; and
WHEREAS, HRA staff determined that a subsequent, unsolicited proposal submitted to the HRA by Historic Saint Paul (“HSP”) to acquire the Property for $1.00 whereby HSP would substantially rehabilitate the Property and sell it to a CDBG-eligible household for homeownership by utilizing a development gap subsidy of up to $130,000, which is consistent with the goals of the Program, and would be compliant with CDBG requirements; and
WHEREAS, HRA Staff has determined that it is in the public interest to pursue this deal for the reasons set forth in the Board Report; and
WHEREAS, prior to the sale of the Property, HRA Staff will document the estimated fair market value of the Property through an established valuation process involving a professional appraiser; and
WHEREAS, consistent with the HRA’s Disposition Policy, notice of HSP’s proposal was published through the City’s Early Notification System, and HRA Staff considered competing proposals that were submitted within 45 days; and
WHEREAS two such competing proposals were received, but HRA Staff has determined that the HSP proposal most closely aligns with Program goals and CDBG requirements.
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 sale and conveyance of the Property for $1.00 to HSP in accordance with the terms and conditions described in the staff report and this Resolution.
2. The HRA Board hereby approves the execution of a development agreement with HSP consistent with this Resolution, Program requirements, and CDBG requirements and which will contain applicable compliance requirements and authorizes the Executive Director to execute the development agreement.
3. The HRA Board approves the allocation of development subsidy in the amount of up to $130,000 for redevelopment of the Property, as detailed in the staff report.
4. 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 Property to HSP.