The URL can be used to link to this page

85-970 WHITE - Ci7V CLERK PINK - FINANCE GITY OF SAINT PAUL Council /� CANARV - DEPARTMENT �/,/ Bl_UE - MAVOfj File �O• � / �� i , � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 8. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City or the Authorities for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City or the Authorities except the revenue and proceeds pledged to the payment thereof, nor shall the City or the Authorities be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the City or the Authorities to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any property of the City or the Authorities. The Bonds shall recite in substance that Bonds, including the interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City or the Authorities within the meaning of any constitutional or statutory limitation. 9. In anticipation of the approval by MHFA and the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Developer is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds, as the Developer considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Bonds, if any, when delivered, but otherwise without liability on the part of the City or the Authorities. 10. The Developer may assign its rights hereunder and under the Memorandum of Understanding on the terms and conditions expressed in the Memorandum of Understanding. - 4 - COUNC[LMEN Requested by Department of: Yeas � Nays � Drew V—'� Masanz In Favor N��a a� , Schelbel _ Against BY Tedesco 1Alil�u. Sonnen ��UL 2 3 1985 Form App oved by Cit A rney Adopted by Council: Date Certified V s ed b uncil c e ry BY � "�-ll-B.S� B � t#ppro �lavor. Dat JUL 2 4 1�5 Approved by Mayor Eor Submission to Councii By By PUBUSHED AU G 3 1985 PEO - Housing DEPARTMENT U�'��`Q�� No 19 � Nancy West CONTACT � � 7494, X-277 PHONE � �� DATE Q� Q, Q ASSIGN NUN�ER FOR ROUTING ORDER Cli All Locations for Si nature) : epartment Director 4 Director of Management/Mayor Finance and Management Services Director � City Clerk O� Budget Director �Y De ut Director - Housin y Attorney 5 Councilman Masanz � WN T WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Rationale) : By signing attached Resolution, you wi11 be preparing, for City Council consideration, action giving preliminary approval to the financing program for Energy Park Rental Housing. The HRA Board gave its approval on July 3, 1985 ,.5 lT��-✓� i5 ,5'GGt�G��r�o� f�i� � � C.dv�r e�� ✓�/ � �Gf%✓r �- �(.�-P�SG��-y, �lc� Z 3 ��, t��;�;': - COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: ��:.� JUL 1 � �985 - 415 new housing units will be built over faur phases (1985 - 1987) - Existing tax increment district at Energy Park will realize substantia��l�t�jror��.] tax increment revenue. - Cost of the bond issue will be paid by the developer. �l � �� FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction: $35,000,000 quired if under $10,00�) Funding Source: Housing Revenue Bonds (to be jointly issued by HRA and Port Authority) Activity Number: (PED Project #33488) ATTACHMENTS (List and Number All Attachments) : 1 . HRA Board Report and Resolution dated July 3, 1985 2. City Council Resolution DEPARTMENT REVIEW CITY ATTORN�Y REVIEW X Yes No Council Resolution Required? Resolution Required? �'�Yes No Yes X No Insurance Required? Insurance Sufficient? Yes No Yes X No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 HOW TO USE THE GREEN SHEET The GREEN SHEET has several PURPOSES: 1. to assist in routing documents and in securing required signatures 2. to brief the reviewers of documents on the impacts of approval 3. to help ensure that necessary supporting materials are prepared, and, if required, attached. Providing complete information under the listed headings enables reviewers to make decisions on the documents and eliminates follow-up cont�acts that may delay execution. The COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS heading provides space to explain the cost/benefit aspects of the decision. Costs and benefits related both to City budget (General Fund and/or Special Funds) and to broader financial impacts (cost to users, homeowners or other groups affected by the action) . The personnel impact is a description of change or shift of Full-Time Equivalent (FTE) positions. If a CONTRACT amount is less than $10,000, the Mayor's signature is not required, if the department director signs. A contract must always be first signed by the outside agency before routing through City offices. Below is the preferred ROUTING for the five most frequent types of documents: CONTRACTS (assumes authorized budget exists) 1. Outside Agency 4. Mayor 2. Initi.ating Department 5. Finance Director 3. City Attorney 6. Finance Accounting ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others) l. Activity Manager 1. Initiating Department 2. Department Accountant 2. City Attorney 3. Department Director 3. Director of Management/Mayor 4. Budget Director 4. City Clerk 5. City Clerk 6. Chief Accountant, F&MS COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others) � 1. Department Director 1. Initiating Department 2. Budget Director 2. City Attorney 3. City Attorney 3. Director of Management/Mayor 4. Director of Management/Mayor 4. City Clerk 5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council 6. City Clerk 7. City Council 8. Chief Accountant, F&MS SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the Green Sheet is well done, no letter of transmittal need be included (unless signing such a letter is one of the requested actions) . Note: If an agreement requires evidence of insurance/co-insurance, a Certificate of Insurance should be one of the attachments at ti.me of routing. Note: Actions which require City Council Resolutions include: 1. Contractual relationship with another governmental unit. 2. Collective bargaining contracts. 3. Purchase, sale or lease of land. 4. Issuance of bonds by City. 5. Eminent domain. 6. Assumption of liability by City, or granting by City of indemnification. 7. Agreements with State or Federal Government under which they are providing funding. 8. Budget amendments. i'' ; � . . � � � r , � � . .. � �-��-�,� HOU�lN,6 ANO REDEVELOPMENT AUTHORITY OF THE CITY OF 3AINT PAUL, MINNESOTA REPORT TO THE COMMtSS10NERS DATE JUNE 28, l9ss � REGARDIN6 PftELIMINARY APPftOVAL OF MULTI-FA�VtILY BENTAL HOUSING DEVELOPMENT AND APPftOVAL OF JOINT POWERS AGREEMENT ENERGY PABK RENTAL HOUSING PROJECT) DISTRICT 10 This report summarizes a proposal to finance the remaining 41� housing units scheduled to be built in, Energy Park and recommends the following actions by the HRA Board of Commissioners: 1. Preliminary approval of the project 2. Authorization to schedule a public hearing before the City Council 3. Authorization to the Executive Director to execute ?Vlemorandum of Understanding with the developer 4. Direction to staff to continue negotiations with developer and bond counsel for the housing program � 5. Approval of a Joint Powers Agreement between the Saint Paul HRA and the Port Authority. . Back�round - Housin� in Ener�y Park At the present time, a total of 356 housing units have been huilt in Energy Park. A total of 415 additional units remain to be bui1L The completion of these units will fulfill AH�N Corporation's housing development obligation to the Saint Paul Port Authority and will complete the housing development slated for Energy Park. AHW's existing rental housing�development experienced rapid lease-up and has continued to maintain a high level of occupancy. . , � �5 �7� ` � bescription of Development The development is located on the eastern edge of Energy Park, next to Bandana Square. The developer, AHW_Corporation, proposes to construct 415 new rental housing units, mixing studios, one-bedrooms, and two-bedrooms. Not less than 2096 of the units to be financed will be required to be occupied by households of low or moderate income for not less than 10 years. Construction is expected to be staged over four phases: Phase # Units Construction Start Stage 1 61 Units Summer 1985 Stage 2 132 Units Fall 1985 �7 Stage 3 1y�9"Units Spring 1986 �3s' Stage 4 �Units Fall 1986 The amount of the tax exempt financing is anticipated to be approxirnately $35 million. � Each stage of the project will be underwritten separately by staff so that the unit mix, rent levels, and amenity package being offered at a particular stage accurately respond to then-existing market demand and City housing needs. . Joint Powers Agreement Because of the unique circumstances surrounding this project, HRA staff and Port Authority staff have structured an arrangement whereby the HRA and Port Authority � would undertake a joint issuance of rental housing revenue bonds. The bonds will be structured so that 30-year, fixed rate mortgage financing can be delivered to the developer. Bonds will be secured by the Port Authority's "876" credit. � The HRA will have sole discretion in all matters related to the real estate aspects of , the transaction (including, bu� not limited to, negotiations with the developer; project . underwriting requirements; need for and amount, nature and term of any subordinate financing; form and content of relevant documents). • *~ � � �� O.J - � 7 C� The Port Authority will have sole discretion in all matters related to the credit of the Port Authority, the "876" fund, and relevant documents. Review By Council 46 Council 46 has continuously monitored the progress of the developer in completing the housing portion of Energy Park. The developer will present the current site plan and development concept to Council 46 at their meeting next week. Recommended Action Staff recommends that the HRA Board authorize a public hearing before the City Council on or about July 23 to consider the proposed financing of the project. The actual date of the public hearing will be arranged with the City Clerk. Staff also recommends that the Board authorize the Executive Director to execute a Memorandum of Understanding with the developer, direct staff to continue negotiations with the developer and bond counsel, and approve the Joint Powers Agreement between the HRA and the Port Authority for the Energy Park transaction. A resolution is attached for your consideration. Nancy West , �7� ..., - , • �tESOLUTION NO. 85-7/3- �� 5^ RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A PROGRAI'I FOR A � MULTI-FAMILY HOUSING DEVELOPI7ENT IN DISTRICT 10 (ENERGY PARK RENTAL HOUSING PROJECT) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act") gives cities, or housing and redevelopment authorities or port authorities, authorized by ordinance to exercise on behalf of a city, the powers conferred by the Act, the power to issue revenue bonds for the purpose of planning, administering, making or purchasing loans to finance one or more multi-family housing developments within the boundaries of the city; WHERF}AS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HftA") and the Port Authority of the City of Saint Paul (the "PASP") have been designated, by ordinance, to exercise on behalf of the City of Saint Paul, Minnesota (the "City") the powers conferred by ti�innesota Statutes, Section 462C.01 to 462C.08; WHEREAS, the City has received from AHW Corporation (the "Developer") a proposal that the City undertake a program to finance a multi-family housing development in Energy Park (the "Project") by the issuance of revenue bonds or obligations pursuant to the Act (the "Bonds"); WHEREAS, the City desires to facilitate the development of rental housing within the community, and specifically within District 10; WHEREAS, before proceeding with consideration of the request of the Developer, it is necessary for the HRA to request the holding of a public hearing by the City Council pursuant to the Act, and to authorize continuing negotiations with thp Developer on the housing finance program (the "Program"). • NOW, THEftEFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, as follows: 1. A public hearing by the City Council to consider the proposal of the . Developer will be held at the time and place set forth in a Notice of Hearing to be published by the Clerk of the City. 2. Staff is directed to•continue negotiations with the Developer and Bond Counsel for the Program. 3. The Executive Director is authorized to execute a Memorandum of Understanding with the Developer. 4. The use and execution of a joint powers agreement by and between the HR.A and PASP, for the purposes of the Project, the Program and the Bonds, is approved. . �� , � �� .�_c1 7� :.0: CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM DATE: JULY 3 , 1985 T0: ALBERT OLSON, CITY CLERK FROM: SHERI PEMBERTON, DEPT. OF PED '� SUBJECT: CITY COUNCIL PUBLIC HEARING FOR JULY 23, 1985 ACtached is a copy of the Public Hearing Notice, which was published in the St. Paul Legal Ledger and the 5t. Paul Pioneer Press and Dispatch on Saturday, July 6, 1985. Please place this Public Hearing on the City Counci`1 Agenda for Tuesday, Ju1y 23, 1985. A City Council Resolution wi11 be forwarded to you by the City Attorney's Office, prior to the City Council Meeting. Thank you. SAP:rmf Attachm�nt cc: Becky Hartman, Vicki Murr�y � . - (��-- �'�� - ��,:t�, � CITY OF SAINT PAUL Y,�G,T T �0`�,. a~�� Y,� DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT °' ,�� '�2 DIVISION OF DOWNTOWN DEVELOPME�: � ° f �` , �i»iillun; ,� 25 West Fourth Street,Saint Paul,h1innesota 5510< G c I�111 1'II Il �a r� 2 6�2-292-15� o`r� ,��7 �::� GEORGE LATIMER ,,.tAYOR St. Paul Dispatch and Pioneer Press July 3 , 1985 345 Cedar St. St. Paul , MN 55101 �ttention: Rosemary Franlc P�E: LEGAL NOTICE NOTIC� OF PLBLIC HEAFING ON PROPOS�IL FOR A PROGRAi` TO FIN?v'vCE A MULTI-FAI�fIL1 RENTAL HOUSING DEVELOP*1F'N1 (ENERGY PAP.K RENTAL HOUSI\G) Gentlemen: 9ttached is a Notice of Public Hearing on <� Proposlal for a Program to Fina:�ce a Multi-Family Rental Housing Deve.lopment (Energy P ark Rental Housing Project) . II, Please publish this Notice in the St. Paul Pioneer., Press and Dispatch f or S aturd ay , July 6 , 1985. I If you have any questions , please do not hesitate to contact me at 292-1577 , extension 231. I Sincerely , J"�-� Sheryl A. Pemberton Real Estate Administrator St'1P: rmf Attacnment bcc: Chron, Paper Legal Bond File, Vicki Murray . . �'�ti , /� �� NOTICE OF PUBLIC HEARING BY THE CITY COUNCIL OF THE CITY OF SAINT PAUL ON PROPOSAL FOR A PROGRAM TO FINANCE A MULTI-FAMILY RENTAL HOUSING DEVELOPMENT (ENERGY PARK RENTAL HOUSING PROJECT) To Whom It May Concern: Notice is hereby given that the City Council of the City of Saint Paul, Minnesota, will meet in the City Council Chambers at the City Hall in the City of Saint Paul, Minnesota, at 10:00 o'clock a.m. on July 23, 1985, to consider the proposal of AHW Corporation,:a Minnesota non-profit corporation, (the "Developer") that the City undertake a program to finance the development located in the City of Saint Paul, hereinafter described, pursuant to the City's housing plan under Minnesota Statutes, Chapter 462C, by the issuance of revenue obligations. THE DEVELOPMENT The Development consists of the construction and equipping of a multi- family rental housing development of approximately 415 rental units, together with funetionally related facilities, located on Energy Park Drive east of Bandana Square within the City of Saint Paul. The Development is located in the Energy Park "Area of Chronic Economic Distress" designated as such by the Minnesota Housing Finance Agency. Not less than 20% of the units in the Development will be occupied by persons of low income, a category presently defined under Federal law to mean persons or families whose income is 80�'0 or less of the median income for the Saint Paul area as determined by the United States Department of Housing and Urban Development. Total approximate development costs will be approximately $43,000,000. The Development will be owned and operated by the Developer, its affiliate Holcomb Corporation, or a partnership or other entity to be formed in which the Developer or Holcomb Corporation will be a general partner or principal. Non-housing components may be included within the Development, but substantially all (90%) of the Development will consist of rental housing and functionally related facilities. The estimated principal amount of bonds or other obligations to be issued to finance the Development will be approximately $35,000,000. Said bonds or other obligations, as and when issued, will not constitute a charae, lien or encumbrance upon any property of the City of Saint Paul, or its housing and redevelopment authority or its port authority except the Development and the revenues to be derived from the Development. Such bonds or obligations will not be a charge against the City's general credit or taxing powers, but are payable from sums to be paid by the owner of the Development pursuant to revenue agreements. The City will authorize and direct the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, and the Port Authority of the City of Saint Paul, acting pursuant to a joint powers agreement, to issue bonds or other obligations to finance the Development. . . : ' C'/�-�,5� �j 7 Further information concerning the Development, and the financing programs therefor, may be obtained from the Housing Division, Department of Planning and Economic Development, City Hall Annex - 12th Floor, 25 West Fourth Street, Saint Paul, Minnesota 55102 (telephone 292-1577). At the time and place fixed for the public hearing, the City Council of the City of Saint Paul, Minnesota will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. Written comments will also be considered if submitted prior to the date of the public hearing. Dated this 3rd day of July, 1985. (BY ORDER OF THE CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA) gy ALBERT OLSON City Clerk /,� ,(/�- _ !f ;;i/'; 5 .J • i.. .a., ��..!':��'�-. T£.i:�F s'.:�:"ir 'F� `T-vsr __e•.,n -..E�`s� i� �ali3.�i«�/S`��f.�'.�i�.f�:•,5�. _ +� , :+��'�;�.�� ' _ y � � � ' . � � .. � �_. , ��"�� 5.��t�.:. .tFSt' ."d�JL.x�.C7,'�€�t#il'�'��;i�'f-at�4�;i� (!��A.'�*�g.�tfi��if��1�'. #; : . ' . $ �--.�..� .�`iV V2l�lil Mi�'� �t�' ��t"��i��t ; � ON PEUiMOSAL��`AI,HQ �� i��>�, ��_ ti�� .n; s ' �� r R�Nr�i,;�±p��xa , �.��< ;:�,. � � , ��II � �h—~ u��. � ... _ y "^ x� �t_] 1T�p � � 1�Vn:'13� '.t�'.'. i A�k`,��-A:� c /' �t��.�-s�F� i' h� " � �, � �til�L': �, ,�.,��i r ; _ _ :_.: _ _._ � Y --.�� , ,. r#B�+C��Y t�keissuance of reve�e +ob�gat��r�s. , , � :� � ,�. . , � ._ ,. � `�`��;?�T�.._'�f ,�NT �rr� .. , The Develt��$��tt�ic�#wn and�uipping of•s inultai : fs�nilY t�ftt��ie�iC#�F�i�d€'�S��rOxima��'y 415 renLal nni#s. = together wtt� fuactf .`r'�l�Ed ��es, ioc�►�d oa £�rgy Patk � c Dsive east a! Bandan�t= ,`�thi[t-�e Cit�=�t S�int Paut. Th� - DeveloP�ent is�te��k$tt!'Xgy'P�c`•Are�=e�Chronk F,�cmc�acn#� � - Distress"d��tieti��Ii�iota Ho�g Finance�enG� ;'' Not less��ian�1�:�t�e��ini'f��the�la�m��ivill be oc�upi�'}by ,�. perso�s et io�t►�a�WE►�t� re�i"f l¢aetineda�der Feder�i larv to.��. me� persons ar families who�e income is 80% ar le�s of ttie.mediet�: , �fntwme for�the �Sainx�F�t�t��mt:aissde� t�� th�3 F3��*r ' ` ;�!!�!�1��. �°t`�f r�� :� �`�°.� .�� ' -w��cc��aniT�op�r`a��Ioper, its:a#�iliala; eog� � ;�'. ,�,�firRa � �tr a��►or ot�er�it,#ty.to_ t4 , �1�► � '��'� �� . 3Y38y�� 1. ��iV� t ��7�Tt �? ` ub i�ily�[11 t9096);ot t�se De�►�ld �`�I '��tt + ' '�nil io��#�attetf'faci�t�si.� � �,> �. �'�� ;� �': -: � - p �4� �� y��(�� ti�K��!��i1�P � �. . �� . ,�. : { �� ,� , ��y��,�`�� t p � :+, r 4�". � A ' . � � ` '• �;r��V��I�p�leTi� s�ttho", j�` t�'.`��"�"'si�a y , , , t and.the revenues to be deri�ed fram the Dev e,�t�5��+�a � ofi obYi�at�ef�c:a�'s11 not be a charge ag��+ �i�e�di�er�t�ng �r�.�t��ab�.��s so t��t��T��t � `pursu�►t to reve�e agreemeests. d�y- .�.��: . _ > The City will authorize and ditrect the�Fio��nd R�e�evQlopment Autho�,'��y oi the City oi Saint Pau1,Minx�eso�a,acii�t�ie f�t�i�uthority of the City oi Saint paul� �cting pursuanf to a aoin��r�.��t, #o issue bonds or other obligations.to tiasace the Development. _� • - � Further informatiott cozieeerning tt}e..Aeve1 �nt.;�and thR,� � a c� p . r t�erefar,znay be obtau�gd irem�t�e,l�o�i�g Division, � Q p ' ��EsQa�iriic��5��t• Ilo��#�` �12t��'lo�i, � ,�� h _ s� 3 :��.. 19.�. .i . '. �P 1 R� �. x � � z..� �€ �r�;�s .,�.14'#`�e t3�e.� glace fiae��or tfie publ�h��e�}� e � : � of Sdint Pau�,:a _ ��,F�i.l},, ,a��, �AP„��,. ��}W31!"'�3D��4P1� `:�!` r .. ��$ � � i�:.. hearing.. � '� �;�`-�� , � �t � r,:- ��.� "�` � � ,., ;p�tted�tb3,s 3rr1'day`oi Jn��► � (�!Y��OF'THE�:i�'Y`'CO'tTN,L'"t1.'��.�~ :��.. �� .: � r ::_ : ` , � '�� ,�� . _ ��Y Clet'k '., = - --� �.: , R.�,'y-�� i _ . __ E.,�• (3`uly 6,]�85); . , _.> <.,3 ��s� �. _v; ,�, .. . y .. . . --r,: .,