89-2097 WHITE - CITV CLERK
PINK - FINANCE G I TY OF A I NT PAU L Council ///�����,///���
CANARV - DEPARTMEN7 ��yJQ�
BI.UE - MAVOR . Flle NO. ���
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City Attny/JTH Co ncil Resolution /`�-I��,
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Presented By
Referred To Committee:_ Date
Out of Committee By Date
RESOLUTION APPRO ING REVISED GUIDELINES � ''�
FOR THE COMMERCIAL VACANT BUILDING PROGRAM
WHEREAS , by Resolution, C . . No . 88-1087 adopted July 14,
1988, the Council of the City o Saint Paul approved the i
Commercial Vacant Building Prog am ("Program") and Commercial
Vacant Building Program Guideli es ("Guidelines") dated June 22 ,
1988 ;
WHEREAS , the Program is be ng carried out cooperatively
between the City Division of Ne ghborhood Development , Depart-
ment of Planning and Economic D velopment and the Housing and
Redevelopment Authority of the ity of Saint Paul , Minnesota
("HP.A") and funded by the HRA D velopment Fund; and
WHEREAS , the Division of N ighborhood Development and HRA
have submitted for Council cons ' deration revised Guidelines ,
which have been approved by the HRA Board of Commissioners ;
now therefore, be it
RESOLVED by the Council of the City of Saint Paul that
the document entitled "Commerci 1 Vacant Building Program
Guidelines 1989" are hereby app oved as the revised Guidelines
for administration of the Comme cial Vacant Building Program by
the HRA and the Division of Nei hborhood Development, Department
of Planning and Economic Develo ent .
COUNCILMEN Requested b rtment of:
Yeas pi�pn� Nays
Goswitz � [n Favor
Long
Rettman O Against BY
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�onn�n
W].1SOn N�V 3 0 �5�9 Form Approv City Attorney
Adopted by Council: Date /'
Certified ed by Counci�//cretary BY
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By �(�'u
t#ppro by ;Vlavor: Date 4 i 1989 Approv b Mayor for Su ' s' ~ Council
Y� By`
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,��$ "; CITY OF SAINT PAUL
� - N DEPARTM NT OF PLANNING AND ECONOMIC DEVELOPMENT
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�m ha DIVISION OF NEIGHBORHOOD DEVELOPMENT
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25 West fourth Street,Saint Paul,Minnesota,55102
612-728-3200
GEORGE LATIMER
MAYOR
M E M 0 R A N D U M
T0: City Council Housing and conomic Development Committee
FROM: Vince Holschbach, Neighbo hood Development Division v.11�_
SUBJECT: Commercial Vacant Buildin Program
DATE: November 9, 1989
REVISIONS AND ADDIT ONS TO THE GUIDELINES FOR
THE COMMERCIAL VAC T BUILDING PROGRAM
BACKGROUND
On June 22, 1988. the Housing and Rede eloprnent Authority allocated $300,000
to the Commercial Vacant Building Prog am. At that time the HRA adopted
guidelines dated June 22, 1988 for the Program. Since that time three
projects have been completed and sever 1 others are in various stages of
development. (See attached Status Rep rt) At this time the Department of
Planning and Economic Development is pr posing revised and expanded guidelines
for the program.
VACANT COMMERCIAL BUILDING PROGRAM
Purpose: The purpose of the Vacant Co ercial Building Program is to bring
chronically vacant commercial buildings into productive re-use in a way that
supports the broad goal of neighborhood evitalization, consistent with
relevant development plan objectives and design guidelines. The Commercial
Vacant Building Program is intended to i crease the City's property tax base,
remove blight, provide opportunities for development and leverage other
resources in the public and private sect rs.
, . ���j'aaQy
The guidelines for the Commercial Va ant Building Program revisions as
proposed constitutes a substantial r vision of the guidelines. (See Summary
of Changes below)
STAFF RECOMMENDATION
Staff recommend approval of the new g idelines.
A:VHREVG
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Commercial Vaca t Building Program
Summary of Cha ges in Guidelines
Section I - Purpose
This section is new and provides a ge eral context of purpose for the program.
Section II - Need
This section is new and provides info ation and an explanation as to why the
program is needed.
Old Section I - Strategy
The section entitled Strategy from the old guidelines has been deleted because
it describes an approach that has not, in fact, worked in actual program
operation.
Section III - Selection Criteria
This section is unchanged. It states he minimum requirements for a project
to be eligible for the program.
Section IV - Selection Priorities
This section has been expanded to incl de the following priorities:
1. emphasis on job creation,
2. emphasis on historic strat gy,
3. emphasis on efficiency in he use of program funds,
4. emphasis on older neighbor ood commercial strips,
5. emphasis on shared parking.
The purpose of this section is to prov"de a basis for choosing among projects
in order to select the best projects.
Section V - Operations
This is a new section and provides the ctual operational characteristics of
the program such as the decision making process used in the program.
Section VI - Policies
This is a new section and includes poli ies on such issues as non-profit
developers, funding, services area, Sta e and local laws, owner equity, design
controls, and district council involvem nt.
Section VII - Financing
This is a new section which describes t e type of financing that will be
available, such as subordinated loans, rimary mortgage financing, interim
financing and graduated rent subsidies.
Section IX - Loan Terms and Conditions
This is a new section which describes th specific terms of loans under this
program such as loan amount, interest ra e, and collateral.
Section X - Analysis Process
This is a new section which describes ex ctly how loan applications will be
processed including the role of a PED co mittee in screening and approving
loans, the role of staff and loan author zation.
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Page Two
!
Section XI - Fees
This section is new and states the f es that will be charged in this Program.
Section XII - Eligibility
This is a new section and describes he characteristics of an eligible
applicant and the characteristics of an eligible property.
Section XIII - Contracting and Const uction
This is a new section which defines he Program regulations that apply to
contracting and construction. Such 'ssues as sworn construction statements,
City requirements ie, permits and li ensing, construction monitoring and fund
draws, loan disbursement, lien waive s, etc.
Old Section VII - Developer Section P ocess
This section has been deleted because it assumes that the City will acquire
buildings and then redevelop them thr ugh an RFP process. This is not, in
fact, the process that is used in pro ram operation because the program
focuses on financing redevelopment by private parties rather than acquisition
and RFP process.
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Commercial Vacant Building Program
1988 - 1989
Funds C itted
Vacant Buildin� Funds
1. Payne Avenue Antique Mall $12,000
1055 Payne Avenue
(a new business in a rehabilitate
structure)
Private Investment $171,000
Other Public Funds $ 36,500
2. MA Food Store, Inc. $45,000
721 Jackson
(an expanding business in a
newly rehabilitated structure)
Private Investment $ 75,000
Other Public Funds $ 30,000
3. Merriam Park Office Building $49,776
366 North Prior
(a rehabilitated burned out
structure)
Private Investment $ 70,000
Sub otal $106,776
In Pr cess
1. Antique Store (Woolworths) $75,000
967 Payne Avenue
(a new business in a
rehabilitated structure,
also a URAP)
Private Investment $110,000
Other Public Funds $ 30,000
2. Brooks Barber School $62,000
270, 272 University
(demolition of 2 structures
and parking lot improvement)
Private Investment $100,000
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Page 2
3. Hamline Playground Building $40,000
(rehabilitation of public
building for commercial
use, expanding business)
A Neighborhood priority
4. The Glass House $25,000
457 Wabasha
(acquisition of a vacant
building for a non-profit
community organization)
An unfunded URAP project.
5. Kala Gallery $100,000
902 Payne
(acquisition and
rehabilitation of vacant
building for Art Gallery)
Private Investment $100,000
Other Public Investment $ 30,000
In Process Sub tal $302,000
Grand Total $408,776
Private Investm nt $626,000
Other Public In estment $125,500
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TABLE OF CONTENTS
Page
I. Purpose 1
II. Need 1
III. Selection Criteria 2
IV. Selection Priorities 2
V. Operation 3
VI. Policies 3
VII. Financing 5
VIII. Eligible Project Costs/Inel'gible Costs g
IX. Loan Terms and Conditions �
X. Analysis Process 8
XI. Fees 9
XII. Eligibility 9
XIII. Contracting and Construction 10
� � � � ���i—aa97
Commercial Vacant Buil 'ng Program Guidelines
19 9
I. Purpose: The purpose of the Va ant Commercial Building Program is to
bring chronically vacant commerci 1 buildings into productive re-use in
a way that supports the broad goa of neighborhood revitalization,
consistent with relevant developm nt plan objectives and design
guidelines. The Commercial Vacan Building Program is intended to
increase the City's property tax ase, remove blight, provide
opportunities for development and leverage other resources in the public
and private sectors.
The purpose of the Commercial Vac t Building Program is to provide
financing to redevelop commercial roperties which have been vacant for
at least one year. Residential pr perties may be included when a
commercial re-use is contemplated r for parking. The purpose of the
financing is to fill the financing gap which exists when owner equity
and conventional financing are ina equate to complete a re-use of the
formerly vacant building.
II. Need: Vacant buildings may crea e a blighting influence in a
neighborhood and tend to undermine area revitalization. In March, 1989
there were 6 industrial and 29 co ercial vacant properties on the
Division of Public Health's vacant building list. The vacant building
list includes properties which are abandoned, unsecured, boarded, having
multiple exterior code violations r are unfit for human habitation.
The highest concentration of vacan commercial buildings exists in the
University Avenue and Dale area an in the Payne-Arcade-Forest area
north of Minnehaha and south of Ma yland. Though the Division of Public
Health Vacant Building list is the primary data base, field observation
confirms that the list is merely r presentative of a much larger number
of vacant commercial buildings cit ide, estimated to be 150 buildings.
It is clear that not all vacant bu'ldings pose a problem which requires
public sector intervention. Some roperties will be brought into re-use
through the normal market process ere owners adjust their rents to
meet the real market demand. Whil this may require a certain amount of
time, eventually the property will e occupied.
There are, however, instances where a vacant structure clearly poses a
threat to the health of a commercia area. Developers and owners will
be reticent to invest in an area wi h a vacant (and deteriorating)
structure. Vacant, deteriorating b ildings tend to bring down
surrounding property values. The a e of the vacant structure, its size
and limited development options oft n act as deterrents to its
redevelopment. In such instances, t is necessary for the public to act
in the interest of the overall well being of the area.
There also may be instances where t e owner of vacant property is
unwilling to invest in, or even all w the re-use of, the property
despite the blighting effect it may have on the neighborhood. This is
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Page Two
also an occasion which may warran public sector intervention,
especially in a redevelopment are where powers of condemnation can be
used.
III. Selection Criteria: Propertie must meet the following criteria in
order to be eligible for this pro ram:
A. The building has been vacant at least one year.
B. It has been determine that a financing gap exists which can
only be filled by thi program.
C. The building is no la ger than 25,000 gross square feet
above grade.
D. No more than $100,000 of program funds are used for a single
building.
E. The building must be s ructurally sound and economically
feasible for renovatio .
F. The building size and onfiguration must be viable for
re-use.
IV. Selection Priorities: The follow ng characteristics will be examined
to determine which properties will receive attention through the
Commercial Vacant Building Program
A. The vacant building is located in a designated redevelopment
or URAP area.
B. The property has poten ial for re-use.
C. The vacant building ha high visibility in the area in which
it is located.
D. The vacant building, w en rehabilitated and occupied or
cleared, will stimulat other private redevelopment and
investment.
E. The property's redevelo ment plan includes the leveraging of
private resources. A 1 verage of at least one dollar of
private funds for every one dollar of public funds is
expected.
F. The project will mainta n and increase the City's property
tax base.
G. Projects which will cre te or retain existing job
opportunities for low t moderate income people.
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Page Three
H. Projects which rehabil tate vacant, existing buildings,
especially historic st uctures.
I. Projects which make us of the least amount of Program funds
to accomplish the deve opment project and repay Program
funds quickly at as hi h a rate-of-return to the HRA as
possible.
J. Projects which will co tribute to the revitalization of an
older commercial strip retail centers such as Selby Avenue,
University Avenue, Pay e and Arcade Streets, and West
Seventh/Fort Road, etc
K. Projects which provide shared-parking facilities with other
commercial or resident al development projects to relieve
traffic congestion in eighborhoods.
V. Operation
A. The Board of Commissio ers of the Housing and Redevelopment
Authority and the City Council have the right to approve and
amend these Program gu delines from time to time.
B. The Department of Plan ing and Economic development shall
administer the Program All transactions under these
guidelines will be app oved by the Director, or his
designee.
C. PED staff will solicit proposals on an ongoing basis based
on the availability of Program funds.
D. PED staff will review 11 proposals for use of Program funds
for completeness and c mpliance with Program guidelines. An
analysis will be prepa ed on each request which will include
developer capability, xperience, project costs, revenues
and expenses, sources f developer equity, tax benefits in
order to determine pro ect feasibility and the need for
Program funds.
E. All project proposals hich are determined to be in
compliance with Progra guidelines and financially feasible
will be submitted to t e appropriate District Council for
review and comment.
F. PED staff will negotia e the amount, terms, and conditions
of the Program funds f r each project based on financial
need. PED will finali e all Program transactions and
execute all required d cuments.
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Page Four
VI. Policies
A. Program funds will be provided from the HRA Development Fund
and from federal fund sources and will vary in availability
from time to time.
B. Funds will be provide to private, for-profit corporations,
partnerships or indiv'duals for acquiring and/or improving
commercial real estat .
Neighborhood-based, n -profit development organizations
will be considered fo assistance in accordance with these
program guidelines un r the following circumstances:
a. It is determine that the property will pay real
estate taxes, or
b. The non-profit o ganization enters into an agreement
with the Ramsey ounty Department of taxation to pay
property taxes o individual projects, in accordance
with established assessment and taxation practices for
commercial real state.
C. The Program is availab e in designated development areas.
D. Projects assisted with program funds must comply with all
State and Local Laws a d policies pertaining to the use of
Program funds such as revailing Wage Standards, relocation
requirements, affirmat ve action and set-aside programs, and
the First Source progr m.
E. Funds provided to proj cts will be structured as loans, with
terms and conditions d termined by PED in conformance with
Program guidelines. R payments of Program funds, including
principal and interest, shall be deposited into the Program
account and will be re sed for additional projects under
these Program guidelin s.
F. In no case will a proj t be considered for Program
assistance if private s urces of equity are less than lOg of
eligible project costs nd the private to public leverage is
less than 1 to 1.
G. When determined to be f asible, the HRA will participate in
the appreciated value o the project in exchange for
favorable payment terms below-market interest rates and
deferral of interest an payments on project loans.
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Page Five
H. It will be the res onsibility of project developers to
provide all necess ry documentation, as determined by PED,
for purposes of de rmining Program eligibility and ongoing
Program compliance.
I. PED will determine ppropriate design controls for each
project, including rovisions for project amenities,
neighborhood compat bility, and other project requirements.
All projects must m et the requirements of the site plan
review process and omply with all plan controls which are
approved for indivi ual projects.
J. PED will establish monitoring and control system which
ensures that loan r payments are made under the terms of
each project's agre ents.
K. PED will encourage D'strict Council involvement and review
of projects by notif ing the appropriate District Council of
a project requesting Program assistance in its neighborhood
at least 30 days in dvance of the project. In addition,
PED will prepare an nnual report of fund operations by
Planning District fo distribution to the District Planning
Councils for their r view.
VII. Financine
Based on Program criteria, riorities and the financial need of
the project, program funds ay be used in the following ways:
A. Subordinated Loan
This form of assistan e will reduce the amount of project
funds which rnust be b rrowed under a first mortgage at
market interest rates thus, reducing debt service costs of
the project. Interes rate, term and payment method will be
below-market and will be negotiated between PED and the
developer based on pr jected revenues, operating expenses
and development costs of the project, and may specifically
include balloon payme ts.
B. Primar Mort a e Fina in
For projects not excee ing $100,000 in total project costs,
primary or first mortg ge financing will be considered. The
interest rate will be elow-market rate with terms to be
negotiated based on th project's projected revenues,
operating expenses, to al development costs and certified
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Page Six
appraisal of the proj ct and real estate. Projects
considered for this thod of financing must obtain a firm
commitment for constr ction or interim financing from a
private lending insti ution. A first mortgage lien will be
filed against the rea estate and private title insurance
will be required.
C. Interim Financing
This form of assistan e will provide below-market
construction financin to reduce total development costs of
a project. To be con idered for this form of assistance,
the project must have a firm commitment for take-out
financing from a reco nized lending institution. The
interest rate, term a d repayment methods will be negotiated
based on project cost , construction time lines and the
terms of the primary ortgage lender.
D. Graduated Rent Subsid : Rent incentives and graduated rent
subsidies also provid a means of attracting new tenants to
commercial sites. The City may provide a rent subsidy
sufficient to effecti ly market the site and bring it back
into occupancy without a change in ownership. Properties in
target neighborhoods m y not be able to command rent levels
sufficient to cash flo the property after rehabilitation
costs have been incurr d. Therefore a rent subsidy may be
needed to cover the ga between market rents and rent
necessary to support c sts. Eligibility standards and
financial analysis wil be required to target buildings and
tenants who are in nee of a subsidy. Graduated rents may
be used to create an i cubator environment for 3-4 years,
ultimately "graduating the tenants and building into a
market rate environmen . Thus new business development and
long term productive r -use of problem commercial structures
is achieved.
The above strategies a e not mutually exclusive and may be
used in combination. t should be assumed the other
development resources ill be used such as NPP or Commercial
Rehabilitation Loans.
VIII. Eli�ible Project Costs
Development costs which will e eligible for consideration for
subsidy under the Program inc ude:
A. Acquisition cost includ'ng purchase options
B. Demolition costs
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Page Seven
C. Architectural, engine ring, legal, financing and other
expenses directly rel ted to the project including
appraisals
D. Rent subsidies
E. Off-street parking re ated to the project or to be shared
with other adjacent p operty owners or development projects
F. Rehabilitation and le sehold improvements
G. License fees
H. Utility relocation an construction
I. Other expenses determ ned to be necessary for project
completion
J. Clearance: Acquisiti n for clearance will only be
undertaken when an ef ective market exists, or other re-use
such as parking will esult. In addition, acquisition of a
vacant building for t e purpose of clearance for parking
must be accompanied b a written commitment from the local
area business associa ion, the owner or other neighborhood
organization to make e necessary improvements and perform
ongoing maintenance.
K. Ineligible Costs
1. Refinancing exis ing debts
2. Non-fixed impro ments
3. Working capital
4. Inventory
S. Sweat Equity - p yment for the applicant's own labor
and performance or construction or improvements.
6. Residential uses
IX. Loan Terms and Conditions
A. Loan Amount - Maximum vailable from the Housing and
Redevelopment Authorit (HR.A) is $100,000 per building.
B. Interest Rate
1. The HRA will neg tiate the interest rate based upon
the financing ga in the project.
2. Banks - Interest rate charged by banks shall be no
more than 3 perc ntage points over prime rate. Prime
rate defined as he lowest New York prime.
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Page Eight
C. Term - The maximum t rm allowed shall be up to 25 years.
The actual term will e an appropriate term relating to the
applicant's ability pay and the collateral securing the
loan. Balloon payme s shall be allowed.
D. Collateral Required
l. The HRA shall h ve the initial responsibility of
determining the applicant's credit risk.
2. The bank may ha e senior lien on any collateral
required.
3. The HRA may hav collateral on par or subordinated to
the bank.
4. The HRA and/or he bank shall each file any liens they
require on coll teral.
5. The HRA has the right, at its option, to require
additional coll teral, or to require an appraisal of
collateral.
6. Collateral is re uired in the form of a real estate
mortgage or pers nal guaranty to be determined by the
HRA.
X. Analysis/Process
A. A committee comprised f Neighborhood Development Division
staff will pre-screen pplicants to determine if their
requests meet the prog am eligibility standards and planning
consideration establis ed by the City and/or District plans.
B. A second committee com osed of Community Service Department
staff, Housing Divisio staff and Neighborhood Development
staff will review the roject for coordination with all
facets of the Vacant B ilding Initiative and HRA plans
bearing on that proper y.
C. Finally, the Neighborh od Development Division staff
committee will review d approve or deny a specific
property, including als the terms and conditions of the
proposed financing.
D. All transactions involv'ng program funds will be approved by
the Deputy Director of eighborhood Development.
E. Documents will be execu ed and signed by appropriate HRA
staff and officers.
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Page Nine
F. Coordination with t e Community Services Department: The
Community Services epartment will provide its normal
activities of enfor ing emergency abatement, substantial
abatement and the n isance ordinance, as well as providing
on-going surveillan e of vacant properties. In addition,
Community Services ill provide inspection reports to insure
properties rehabili ated meet all applicable codes and
enforce the demolit'on process when necessary. PED and
Community Services staff will meet on a regular basis to
discuss priorities, roblems, and other matters.
G. Typical Conditions o the Loan Authorization: The loan
authorization will g nerally include, but not be limited to,
the following requir ments:
1. Hazard insuran e on the assets pledged as collateral
2. Personal guara tees of the principals
3. Collateral assi nment of life insurance
4. Collateral assi nment of lease
5. Submission of b rrower's financial statement to the
HRA when reques ed
6. Execution of re ired collateral documents, for
example: mortga , personal guarantees, loan
agreements, note, etc.
7. Title insurance
XI. Fees
A. The bank can charge it normal fees.
B. The HRA will charge a 1 1/2 � loan origination fee on its
portion of the loan bef re any disbursements.
C. The HRA will charge 1$ f the monthly payment as a late fee
per month on payments o er 30 days delinquent.
XII. Eli�ibilitv
A. The property must be loc ted in Saint Paul
- The property must be c mmercially zoned, meaning the
property must have a bus ness or industrial zoning.
Properties with resident al zoning are eligible if approved
by the HRA staff. Prope ties with conditional use permits,
or non-conforming use pe mits are eligible with HRA staff
approval.
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Page Ten
B. Applicants
1. The applicant may be: individual property or business
owners, partn rships, corporations, tenant operators
or contract f r deed purchasers.
2. An applicant st have the ability to repay the loan
and be an acce table credit risk as determined by a
bank and the C'ty. See Attachment (1) for
Underwriting S andards.
3. An applicant's property must conform to use under an
approved Distr ct Plan if applicable.
4. Upon completio of improvements, the applicant's
property must omply with all applicable code, permit
and license re uirements and must have a current
Certificate of Occupancy upon completion.
5. Applicant must ake adequate progress toward
completing the roject and closing of loan (as
determined by s aff) . Failure to do so can mean
eliminating thi project as an eligible loan.
6. Prior to perfor ing leasehold improvements, the
tenant must obt in written permission from the
building owner or the improvements.
XIII. Contractin and Constructio
A. All applicants shall ovide the HRA with information on the
"Loan Application For " detailing applicant's interest
regarding re-use of b 'lding, giving permission for code
inspection and any oth r requested supplements necessary to
achieve the City appro al for this project.
B. The applicant must sub it to the HRA a sworn construction
statement with support ng bids for contractors detailing the
work to be performed, stimated contract and any other
documentation necessar to achieve the HRA's approval for
this project.
C. It shall be the loan r cipient's responsibility to comply
with all City procedur s and requirements such as securing
permits, providing acc table site plans, etc.
D. Contractors and all sub ontractors providing work under this
program are to meet the licensing, insurance and bonding
requirements of the Cit . The contractor and/or
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Page Eleven
subcontractor is to be knowledgeable of and/or responsible
for quality and wor manship, conducting proper business
practice, be financ'ally capable, and be an Equal
Opportunity Employe .
E. The quality and prog ess of the work is to be monitored
throughout the term f the contract by the loan recipient
and general contract r.
F. Draws (either partia or final) cannot be released to the
contractor until a w itten request for payment is made and
the loan recipient a d the City have accepted the eligible
improvements in writ ng. If the contractor requests
periodic draws on co pleted work, the draws shall be limited
in amounts equal to e value of materials furnished and/or
services performed a the time of request. Payments are to
be subject to a final 10� holdback. The holdback may be
used to correct unsat'sfactory work, or defray costs to
obtain a replacement ontractor and/or to complete the
project. The contrac or is to furnish the necessary lien
waiver for all paymen s.
G. Loan Disbursements - ayments to consultants and/or
contractors shall be ade by the bank, title insurance
company or City, but ot before written a roval from the
HRA is provided Loa disbursements will be limited to one
per month, plus one ( ) final payment (minimum of lOg of
total loan) when all ork is completed and inspected.
H, Lien Waivers - Lien W 'vers will be collected by the bank or
HRA.
r
I. All work must be inspe ted by the City Building Inspection
Division to insure con ormance with code and must be
verified for proper co pletion by HRA staff to insure
compliance with specif cations prior to final payment. The
final draw will not be released until all permits taken out
have been signed off b field inspectors.
J. All eligible improveme t work performed pursuant to a
commercial rehabilitati n loan must provide a 12 month
warranty from the date f accepted completion by the loan
recipient and the City. This warranty must cover the
quality of materials us d and workmanship in performing the
work. This warranty is the responsibility of the loan
recipient.
K. All work must be perfor ed under provisions of the City of
Saint Paul's "Little Da is Bacon Act" or applicable Federal
Standards, and comply wi h Affirmative Action and Human
Rights requirements, as pplicable. A:vhguid2
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Atta hment I
Underwrit' g Guidelines
A• When the property is to be occu ied by the owner for the purpose of
operating a business the follow'ng is required:
l. An analysis of three years financial statements, if available.
2. Positive net worth
3. After tax income of busine s positive with a positive trend
4. Debt to net worth less tha 4:1
5. Cash flow sufficient to se ice all debt
6. Operating cycle in line wi industry standards (see Robert Morris
and Associates Annual Stat ent Studies)
7. Personal financial statemen of borrower with personal debt
payment/income ratio less t an 40�
8. A defined business strategy
9. A positive information cred t check
B. When the property is to be operat d as a real estate development the
following is required:
-__ �
��ao9�
DEPARTM[NTIOFFlCE/COUNdL DATE INITMTED �� ,��
PED Neighborhood Development Div. 11-13-s9 GREEN SHE r NO. �a7Nm�,�w�r�
OONTACT PEH80N 6 PHONE �PARTMENT DIREC'rOR �61TV OOUNpL
Vince Aolschbach 228-3304 �� ��� ❑c;RV c��nc
MU8T BE ON OOUNq�AOENDA 9Y(DAT� RONTMq BUDOET DIRECTOR �FIN.8 M(�T.SERVIC�S DIR.
�u►von(oA�ssisT�wn 0 Warren Ha �" �'f
TOTAL A�OF SIQNATURE PAGE8 � (CLIP ALL LO ATIONS FOR SIGNATUR�
ACTION REOUEBTED:
City Council Resolution ap.proving Revised G idelines for the Commerrial Vacant Building
Program.
COMMEND�►7IONS:MP�(N a Ry�t(pl OOUDICN. OPTWNAL
_PLANNIN(i WMMI8810N —CNII SE I I 8 y YST PHQNE WO.
_d8 COMMIT�EE _ ���
A.8TAFF _ COMMENTB: , r.+
�D18TRICT COURT � �r�,`l��r� Q� �a�`..�
suw�rs wHia+opuNa�oa�cnve� � ��AY'tDR'S OFFICE
�c�ariov�.,�G CG
�naru►nrro aROe�,issue.oraonTUNrrv ,wna,wnen,wn�s.w�:
The purpose of the Vacant Commercial Building Program is to bring chronically vacant'
commercial buildings into productine re-use i a way that supports the broad goal of
neighborhood revitalization, consistent with eleva,�t development ob�ectives and design
guidelines.
ADVMITA(1ES IF APPROVED:
The Commercial Vacant Building Program is int ded to increase the City's property tax
base. remove blight, provide opportunities for development and leverage other resources
in the public and private sectors.
as�v�rr�s��ov�a
None �G,`�
RECEIyEp �
�nv � � HI��i98�.9
� �989 CITY:CLERK
+��t�����
�,��8�F��:
Inefficient program operation. '
Continuation of blight.
�ouncii Research Center.
N av � > >98s
TOTAL AMOUNT OF TRANSACTION a N/A T/REVENUE W0�#ETEO(CHiC1.E ON� E� NO
FuNa�ro Sou� N/A � vrrv Nu�n N/A
FlNANCIAL INFORAAA710N:(EXPLAII�
This is not a financial t ansaction. �j_.
vy
WHITE - CITY CLERK
PINK - FINANCE GITY OF SAINT PAUL Council
CANARV - OEPARTMENT
BLUE - MAVOR File NO.
City-At'tny/JTH • • �----..
Co nci Resolution ��`,
Presented By
,��,,,,� ___�
Referred To Committee: Date
Out of Committee By Date
RESOLUTION ACILITATING SALE OF
ETA SYSTEMS INC. , PROPERTY TO 3M
WHEP.EAS , ETA Systems , Inc . , 3M Company and the Port Authority
have reached agreement for the sale and purchase of ETA Systems ,
Inc. , Property in Energy Park; and
WHEP.EAS , part of the Prop rty consisted of a coke processing
plant operated by Koeppers Cok Company which generated certain
hazardous waste and groundwate contamination conditions on the
Property; and
WHEREAS , the Port Authori y in acquiring the Property obtained
from 1�.oeppers an indemnificati n for the costs of removing hazardous
wastes and monitoring and corr cting groundwater contamination; and
WHEREAS , in selling the P operty to ETA the Authority gave a
similar indemnity to ETA and w 11 give such indemnity to 3M; arid
T�'HEnEAS , it appears proba le that further remg�c��,.al action with
respect to groundwater contami ation and hazardous waste removal
must be undertaken and the Aut ority is requesting City Council
consideration of the creation f a hazardous substance subdistrict
in the Energy Park Tax Increme t District to assist in financing
necessary remedial action; and
WHE:tEAS , the creation of azardous substance tax increment
subdistrict will require chang s in the Energy Park Joint Powers
Agreement between the City and the Authority and other cooperative
action on the part of the City; now therefore, be it
COUNCILMEN Requested by Department of:
Yeas Nays //��
In Favor PLANN N A E NOM M
_ Against BY -'��"` v'- a�_
Adopted by Council: Date Form Approved by City ttor �
Certified Passed by Council Secretary BY
�`
By
A►pproved by 14avor: Date Appro by or for ission to C cil
By