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277810 WHITE - CITY CLERK u�.J�,��u/� PINK - FINANCE �/• 6� � CANARY -. DEPARTMENT G I T Y O F S A I N T ��U L COUtIC1I � � BL�lE •• MAYOR _ F1I2 N O. i � ' u cil Resolution '�, P re � Referred To Committee: Date � Out of Committee By Date RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR MULTI-FAMILY HOUSING DEVELOPMENTS, GIVING PRELIMINARY APPf;DVAL ', TO THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, ', AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE 'i HOUSING REVENUE BONDS AND AUTHORIZING THE SUBMISSION OF FINANCING I PROGRAM FOR APPROVAL TO THE MINNESOTA HOUSING FINANCE AGENCY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS i IN CONNECTION WITH THE SAID PROGRAM I � WHEREAS, !I (a) Minnesota Statutes, Chapter 462C (the "Act") authorizes cities, or n�using and redevelopment authorities, or port authorities authorized by ordin nce to exercise on behalf of a city the powers conferred by the Act, the power to ssue revenue bonds to finance a program for the purposes of planning, administering rnaking or purchasing loans with respect to one or more multi-family housing developments within the boundaries of the city; � (b) The Housing and Redevelopment Authority of the City of Saint Paul , Minnesota (the "HRA") has been designated, by ordinance, to exercise, on behal of the City of Saint Paul , Minnesota (the "City") the powers conferred by Minneso a Statutes, Chapter 462C upon approval by the City of a specific financing progr ; (c) The City has received from its Department of Planning and Economic Development ("PED") a proposal that the City undertake a Program hereinafter described (the "Program") , through the issuance of revenue bonds. il I , ; COUNCILMEN I Yeas Nays Requestgd by Department of: i Hunt � �evine In Favor � Maddox McMahon B snowalter __ Against Y Tedesco Wilson � Form Approved by City Attorney I Adopted by Council: ' Date — Certified Passed by Council Secretary BY Bv -- I� Approved by ;Vlayor: Date _ Approved by Mayor for Submission to.Council I I sy, _— - - _ By � I i � , _2_ �� /'I,��V � (d) The City desires to: facilitate , the development of housing within the community; encourage the development of affordable housing opportunities for residents of the City; rehabilitate vacant or underused structures; an� prevent the : emergence of blighted or underutilized land ' and structures within the boundaries of the City; and the Project will assist the City in _ - achieving these objectives. (e) The Program to be financed by the . Aonds is the making or purchase of mortgage loans with respect to multi-family � condominium developments located in the Lowertown area of the City (the "Developments") ; (f) The City has been advised by PED . that conventional mortgage loan financing for the Developments is available only on a limited basis and at such high costs of ' borrowing that housing opportunities would be significantly reduced, but that with the aid ofi municipal financing, and resulting lower borrowing costs, the Program will provide more affordable mortgage loan .financing; _ (g) The City has been ac3vised that an ', Urban Development Action Grant has been !I approved for the Broadway Square project, which will be one of the Developments for � . I which mortgage loan financing will be . provided; and the City has further been advised that the Mc�Cnight Foundation is willing to assist the Program; ' (h) Pursuant to a resolution of the I City adopted on December 1, 1981, a Program I has been drafted and, a public hearing on the Program therefor was held on December 15, 1981, after notice was published, all as required by Aiinnesota Statutes, Section 462C.05, subd. 5, at which public hearing all ' those appearing at said hearing who desired to speak were heard; (i) No public official of the City has either a direct or indirect financial interest in the Program or any of the I � ` ��V ' -3- 7 + Developments nor will any public official � either directly or indirectly benefit financially from the Program or any of the , Developments; NOP� THFREFORE, BE IT RESOLVED by the City Council o� the City of Saint Paul, Minnesota, as follows: . 1. The City hereby gives approval to the proposal qf PED that the HRA undertake a Program, pursuant to t�iinnesota Statutes, Chapter 462C, consisting of the making or purchase qf . mortgage loans with respect to multi-family condominium housinjg . . developments within the Lowertown area of t'ne City pursuant to'. agreements with terms and conditions and with provisions for , revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal', and interest on th'e Bonds in t�1e total principal amount of approximately $5,000,000 to be issued pursuant to the Act to '� finance the Program; and said agreements may also provide for � the entire interest of the HRA therein to be pledged to the purchasers of the Bonds, or a trustee for the purchasers of th� . Bonds; and the City hereby authorizes the HRA to undertake to issue its bonds in accordance with such terms and conditions; 2.' On the basis of information available to the Cit�t it appears, and the City herEby finds, that the Program will finance mortgage loans with respect to multi-family condominiur�► housing developments within the meaning of subdivision 5 of !, ' Section 462C.02 of the Act; that tY►e developments are located I within a redevelopment project area established pursuant to �� Minnesota Statutes, Chapter 462; the availability of the �i financing under the Act and the willingness of the HRA to furnish such financing will be a substantial inducement to the , developers of the developments to undertake the projects, and that the effect of the Program, if undertaken, will be to encourage the provision of additional multi-family condominium II housing opportunities to residents of the City, to assist in ' tYie prevention of the emergence of blighted and marginal land and to promote more intensive development and use of land with in the City; 3 . The Program, and the issuance of revenue bonds, in connection therewith, is hereby given preliminary approval I by the City subject to the a�proval of the financing Program by ' the I�Iinnesota Housing Finance Agency ( "D4fiFA") and subject to final approval by the HR.A, and the purchasers of the Bonds as to ultimate details of the financing of the Program; 4. The City hereby authorizes the HR�1 to issue t,ie housing revenue bonds to finance the Program and to take all actions necessary or desir�ble in connection therewith, and no further approval or authorization of the City shall be required; WHITE - CITY CLERK CANARY -, DEPARTMENT COURCII e��e � �� - MAYOR G I T Y O F S A I N T PA U L File N O. �� • ` Council Resolution �� Presented By Referred To Committee: Date � Out of Committee By Date I� -4- j- 5. In accordance with subdivision 5 of Section 462C.05, Minnesota Statutes, th Mayor of the City is hereby authorized and directed to submit the Program to MHFA, request'ng its approval , and other officers and employees and agents of the City are hereby authori ed to provide MHFA with preliminary information as it may require: '� i 6. Briggs and Morgan, Professional Association, acting as bond counsel , and Pi er, Jaffray & Hop�vood, Inc. and Dain, Bosworth, Inc. , investment bankers, are authorized to assist in the preparation a�d review of necessary documents relating to the Program o con- sult with the City Attorney, and purchasers of the Bonds (or trustee for the purchas rs of the Bonds} as to the maturities, interest rates and other terms and provisions of th Bonds and as to the covenants and other provisions of the necessary documents and submit t ese documents to the HRA for final approval ; , � 7. PED is hereby authorized to agree to the expenditure of funds granted pursu nt to the Urban Development Action Grant related to the Broadway Square project for the pu poses of the Program; and PED is further authorized to negotiate with the Lowertown Redevelopment Corporation on the terms and conditions for assisting the Program with grants or additional loan funds. 8. Nothing in this Resolution or the documents prepared pursuant hereto shall II authorize the expenditure of any municipal funds on the Program other than the revenu s derived from the Program or otherwise granted to the City or HRA for this purpose. T e Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon an property or funds of the City or HRA except the revenue and proceeds pledged to the p yment thereof, nor shall the City or HRA be 'subject to any liability thereon. The holder o the Bonds shall never have (the right to compel any exercise of the taxing power of the Ci y or HRA to pay the outstanding principal on the Bonds or the interest thereon, or to enfo ce payment thereon against any property of the City. The Bonds shall recite in substanc that Bonds, including the interest thereon, are payable solely from the revenue and procee s pledged to the payment thereof. The Bonds shall not constitute a debt of the City or HRA Within the meaning of any constitutional or statutory limitation. I I Yeas COUNCILME Na s Requestgd by Department of: ,�_ I! Y �Hunt �� Levine In Favor Maddox I McMahon U __ Against BY Showalter Tedesco Wiison .� dEC 15 Form Approved by City Attorney I Adopted by Council: Date .�� CertifiE:d P• Ssed by ncil creta, + By , _ • t � By Approved by a.v Date � � � A by Mayor r u ission to Council sy _ _ �----- Pt16t.tSHED D�C 2 6 1981 ! � �i I I W�V MU LTI-FAM ILY PROGRAM DESCRIPTION LOWERTOWN CONDOMINIUM FTNANCE PROGRAM The revitalization of the Lowertown area of the Downtown District has been a long-tim� goal of the City of Saint Paul. A significant step in accomplishing this objective was aclhieved when, in response to an initiative by the City, the McKnight Foundation pledged $10,000�000 to strengthen efforts to redevelop Lowertown. As part of this commitment, the Lowert�wn � Redevelopment Corporation, a private non-profit corporation, was organized in April, 191I78 � to guide and support private and public efforts to redevelop the area. Pursuant to this effort, a number of major housing projects have been completed or are I', currently in process--including the Mears Park Apartments consisting of 255 units, of ' which 209�6 are subsidized through Section 8 funding; the Butwinick Manor Project, whichi will consist of 56 rental apartments, all to receive Section 8 subsidy; and the Block 40 , Pro jec t. ' a The City's redevelopment objectives for Lowertown include the creation of a substantial' residential base in the area. A summary of a number of projects which may be approved' for financing under the Program follows. �', . projects �, While all projects to be considered for financing under the Program will be reviewed for 'I conformance with unit sales price limits, design compatibility, level of rehabilitation, if ' applicable, occupancy status, etc., the following projects have been identified as potenti�l multi-family developments to be financed. I All the rehabilitation projects which follow, and any to be considered for financing under the Program, shall involve a rehabilitation expenditure of not less than $5,000 per unit. I Rehabilitation Projects , 1. Cardozo Warehouse - Part of the UDAG approved Broadway Square Project, this tu�n- of-the-century warehouse structure at Fifth and Broadway is c�rrently less than 10�9� occupied as cold storage. This building will be renovated as 21,000 net square feet I of retail space complementary to the adjacent relocated Farmers' Market on the fi�st two levels and 65 loft-type condominium units on the upper five levels. Units rang�ng from 800-1600 square feet are expected to sell from $50,000 - $75,000. Total deve opment cost of the housing units is expected to be approximately $3.5 million. As the City's highest priority project for this financing Program, $250,000 of the $�65,000 UDAG for Broadway Square will be contributed to the financing program. ' 2. American Beauty Building - The upper four floors of this vacant five-story commercial building in the vicinity of Fifth and Wacouta may be rehabilitated as ' 16 loft-style condominium units. Total development cost, approximately $1.1 milli�n. Sixteen 1,000 square-foot units to sell in the $75,000 - $80,000 range. i I � ��'��.� New Construction Projects 1. Union Gospel Mission - This site is currently owned by the St. Paul HRA. Demoli�ion of the existing structure is scheduled before the end of the year. A condominium� development of up to 50 new construction units could be accommodated on the si�e. For project locations, see area map attached as EXHIBIT "A". Projects which may be considered for financing under the Program are not limited to the above. Project review and approval criteria shall be consistent with adopted policie�s and ordinances of the City of Saint Paul regarding design, relocation assistance, sale pr�ce and income limits, building code compliance, equal opportunity assistance, sale price anld income limits, building code compliance, equal opportunity in empinyment and housing, etc., as applicable to all housing revenue bond Programs. The Financing Program � The proposed financing program involves the issuance of $4,355,000 of tax exempt Hous�ng Revenue Bonds for public sale by the Housing and Redevelopment Authority. It is anticipated that the bonds, repayment of which shall be�secured by a Letter of Credit from the Firs� National Bank of St. Paul, would receive, at a minimum, an 'A' rating from a national rating agency or agencies. The term of the bonds shall be 14 years. All of the net proceeds of the bond issue will be used to fund mortgage loans on residentlal condominium units. No portion of the financing shall be applied to the costs of non-hous�ng development. None of the proceeds wil! be used to finance eonstruction loans to developers of projects. � Net proceeds of the bond sale, along with approximately $250,000 of the $565,000 UDAG approved for the Broadway Square Project, shall be used to provide mortgage financing for owner-occupied condominium units in the Cardozo Warehouse Building and other multi- family projects located in Lowertown. The contribution of approximately $250,000 to the mortgage acquisition fund at closing allows the issue to be at parity after payment of issuance costs. As described in the att hed Exhibits, all other costs related to the financing program shall be paid within the allowab�le 1% yield spread. ' Given current market conditions, it is anticipated that the rate on the mortgage loans , shall be in the 12.759� - 13% range. These loans shall be amortized on a 30-year scheduleb with a 12-year maturity (maturity date June 1, 1995). A portion of the loans to be made under the program will contain equity participation loans (EPLS) to be financed through a commitment by the McKnight Foundation and the Lowertown Redevelopment Corporation of up to $1,100,000. Structured as the Minneapolfs/St. Paul Family Housing Fund Program, qualified mortgagors may borrow up to 20% of the purchase price of a unit as an unamortized equity participation to reduce the borrowers' payments to 28% of household income. At the time of sale, the principal amount of the EPL and a portion of the appreciated value of the unit as interest shall be repaid. ��.1! . In cooperation with the Minnesota Housing Finance Agency, the City of St. Paul has sub�nitted an application for the Lowertown NSA as an Area of Chronic Economic Distress to the HUD area office. All multi-family developments to be financed under the program shal�l be within this area, as well as within a redevelopment project area established pursuant � to Minn. Stat. Chapter 462, as required under Chapter 462C.05 Subd. 3. Minn. Stat. 46C.03, Subd. 10, specifies the principal amount of loans which may go to persons with household incomes in excess of 1109�6 of inedian income, and the maximum sale price limits of units eligible for financing under financing programs. The City shall comply with these requirements as follows: Mortgage loans are expected to be made durling both calendar year 1981 and calendar year 1982. The HRf� will implement the provision�, of Minnesota Statutes, Section 462C.03, Subdivision 10, by calculating for each calendar � year the aggregate dollar amount of revenue bond funds appropriated by the City to mak� or purchase loans with respect to single-family housing (including condominiums), and ' then calculating 20% of that figure. The resulting figure will be adjusted by deduction of� amounts allocated or reserved under any other City program to persons wth gross income� more than 110% of inedian income, or purchasing single-family housing, the acquisition , cost of which housing exceeds three times 11096 of inedian income. To the extent that the resulting figure exceeds the amount of bond proceeds available in each calendar ° year under this program, the excess will be restricted to persons or families with gross incomes of less than 110% of inedian income and purchasing homes, the purchase price ' of which does not exceed three times 110% of inedian income. The McKnight Foundation, Lowertown Redevelopment Corporation, and the City of St. , Paul share the objective of creating homeownership opportunities for moderate income ' persons. Consequently, the City, LRC, and the McKnight Foundation will establish incom� eligibility standards for assisted buyers. In addition, the Affordability Test used in previoUs St. Paul financing programs, a form of which is attached as EXHIBIT "B", shall be used. The majority of units expected to be financed under the program shall have sale prices in the $50,000 - $80,000 range. Consequently, most of the units will fall under the three � times rule regarding sale prices. Additionally, the availability of equity participation ' loans will make it possible for persons substantially less than 1109b of inedian income to � purchase these units. ��.o EXHIBIT "A" - �.... � � O � --- :..,y::. : �___:; ❑ � \ � � � � D i �wra.�.i.� �� _=Q � o � 9 _ = �. :� . � ��] � � On - - _ � - i...�s-- . � \� � � �` � .. �\ � - - a � : �� Gos 1 � � - � . ;, Mi� .-- � : � � s,��.o. t s...� r�..� " ——-- l � _ ..._ = - o � mo :. _ ,_ _ Q �_ � C? ...........�..,�. Q ` ` I� � : s..w a... �� . _ a ❑ l c� o _ . _ . �. . - � ❑D M .. � .. i � ��'�"��'� �O � i �NI�lr�M . =I � . ._`:Milt , I • � � � � �i�Amer n � � � � � � : � J �� r�.:�a.:.� Illli��i�i��i�i��i- '� ��uau�.• •.�ii�•��•ynm�ti. _ � -- - _ _ - - � I w. - - � � ' - .� - Q �i i �� —�-� �i��i�� ..+.+� . • - _ _.._ S t T111rC1 �, � � , � � , , � , �. a – ----�—�� r _. �. � . . ; . � . . � ��:o� EXHIBIT "$" . . AFFORDABILITY TEST FOR ELIGIBLE B0.�2ROWERS The criterion for determination whether the � . purchase of a dwelling unit in the Crossways P'roject may . � properly be provided in whole or in part by permitting the purchaser to assume a portion of the loan made for construc+ � tion, to be financed on a long term basis by the continued ', obligation of a like principal amount of the Revenue Bond, � or whether such financi.ng is othercaise available from private lenders upon terms and conditions which are affordal�le by a purchaser applying for public financing, shall be whetl�er: 0 (a) The interest rate, discount, and term then . available in the conventional mortgage market for a com- ' para�le mortgage loan is ascertained from a qualified lending institution in accordance with the terms of the Loan Agreeme�nt; (b) The annualized amounts of principal and in- terest payments (based on a market rate established in acc- '. ordance with the terms of the Loan Agreement) taxes, , insurance and common expenses (as defined in Minnesota Statultes Section 515.02, Subdivision 8) are computed by the qualified' lending institution and verified as to mathematical accuracy by duly designated HRA personnel; ' (c) The Adjusted Annual Income of the applicant is computed from information certified by the applicant; as: ' (1) gross family income from all sources, before �� taxes or withholding, which shall include the income of the �� purchaser and any co-owner of the fee interest in the unit, l�is or her spouse, and any member of the purchaser's (or co- owner's) family residing in the unit, less: ' . (2) the following: (a) income of any person described in clause (A) who is under 18 years of age or who is a full-time student and who is related by blood, adoption,� or marriage to a resident income recipient or his or her spouse, (b) non-recurring income, (c) sums received for foste� child care, (d) extraordinary medical or other expense�, (e) income of each additional income recipient 18 years of age or older and described in paragraph (1) , other than the ', orimary income recipient, but not exceeding the �amount of 5��0, (f) an amount equal to $750 for each resident o.f the unit who .is 18 years of age or older (maximum of two) and ' $5�0 for each additional resident; (g) an amount up to $750 for child care expenses that are eligible for deduction under United States Internal Revenue Service tax regulations , but not exceeding the ar.iount of $750. .� � � ;� ��7��:f� � . � . (d) The total of. the annualized amounts referredl'i to in clause (b) exceeds 2A percent of the Adausted Annual ' . Income computed pursuant to clause fc} , in which case the ' . applicant shall be deemed an Eligible Borrower; provided th� � applicant shall not be deemed an "Eligible Borrower" unless at the closing of the sale, the applicant files with the Aa�ik a certificate that he or she intends to use the unit as his' or her primary residence, does not intend to use the unit � as rental or income property, and still qualifies as an Eligible Borrower. ' � � I . � I �� / -� I� � � S . NOTICE OF PUBLIC HEARING ON A ��/� PROPOSAL FOR PROGF�M TO FINANCE P4ULTI-FAMILY HOUSING DEVELOPMENTS ' � (LOW�RTOWN HOUSING PROGRAM) ' 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 C�t Hall in the Cit� of Saint Paul, Minnesota at _� o'clock � on December /s, 1981, to consider the proposal of the Department of Planning and Economic Development ' that the City undertake a program to financ� the developments , hereinafter described. pursuant to the City' s housing plan under Minnesota Statutes, Chapter 462C, by the issuance of , , revenue bonds. The Program � The Program will consist of the making or purchase of mortgage loans made to finance the purchase of condominium units in the Developments. The Program may be assisted by funds provided by the McKnight Foundation through the Lowertown Redevelopment Corporation and by funds to be provided to the City under . an Urban Development Action Grant. . The Developraents All of the Developments will be located in , the "Lowertown" area of the City, which is tYie area east of Robert Street, north of Kellogg Boulevard and south of Interstate 94 , •adjacent to downtown Saint Paul. Each I t Development will be a condominium. Some � commercial or retail development will be � associated with the Developments, but none of � the commercial ar retail development will be � financed through the Program. , The Developments are located within a ' redevelopment project area established puxsuant to tdinnesota Statutes, Chapter 462, i and therefore some or all the mortgage loans may be made without regard to the income of ! the mortgagors. � i , ✓�' ' � � � t . . ' �'"�`� � lC� The Bonds will be issued by the Hou�ing and � Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") . The estimated principal amount of bonds or othe� obligations to be issued to finance the development is , $5,000,000. '- • ! Said bonds or other obli.gations, as and when issued,i will not constitute a charge, lien or encumbrance uoon any property of the City of Saint Paul, or the HRA except the mortgage loans made or purchased pursuant to the Program, and ! certain other grant or loan monies provided to the City or HRA� for the purposes of the Program. Such bonds or obligations will not be a charge against the City' s or HRA's general crediit or taxing powers but are payable from sums to be paid by the , mortgagors (owners of the condominium units) pursuant to the promissory notes executed to evidence each mortgage loan. , Further information concerning the development, and ' the financing program therefor, may be obtained from the Department of Planning and Economic Development (298-4105) . At the time and place fixed for the public hearing, the City Council of the City of Saint Paul, Minnesota will , given all persons who appear at the hearing an opportunity to � express their views with respect to the proposal. Dated this lst day of December. 1981. (BY ORDER OF THE CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA) gy Albert B. Olson City Clerk � (December 5, 1981) ' . �, I , ..� / ��^,�...__.. .�� i�''/ c� � � ' t � � _ ' 7'0.�;, "`Tx •:+i+ r. i . .,.��,�. ,; 'i i�AYt:•�` . � / 'y� ' ..e.:y t ' �� i �j � � �'�, Y'� .�i�' e� .. '�Yrl� ; I .�. . -.,x�R.;.. i � ��t f :C ...:�'.�. ... . � .. .;'4, ' . EY Nro g�� "N�� 1, °��} * s Mon-tl+l�. . � No7 1 or � �� i � � � � F plsa I 't� �'� ,i,t �'� fM: . .,.F ,�'" �t. �. �4, a.9�A.'• � xv w�.,. � -N.in • �C � I _ � ��:.��4 �p4 't'.��Z � .Ti—��• '�'" ,_r�.. i �. � �� . � � �I ; My naa� is Ji� �iehiiler. � live in the Milton Bl�l�. hich ie next Z��r ' t• the Aaerican Bezuty Bld�, I'■ a�pe�lcing �n behalf •f the peeple WNd G.�v+E. � in the Milton �31ct�;. ' � �^�--�--�--� ....�,..�.w. We un�lerat�.nl that funlirag f�r the Milt�n Bld�. is n�t b�ing considerel I zt this hearing, in apite �f wt►at we aa�y have re�.�l in the pa�pers. H�xe*er,� we feel tl�.t ierel�paent ef the Aaerican Beauty and Ca�i�z• Buillin�a i• , h�,�*e an iap�t u��n u��a� xell �s �rwll nusineas�s ani •tl�r resiient� � in l�rert�Mn. qL R�,Gy-Wi a� ai�,� feeli� ttuee sft�sts �f epeoulati�t�. Our rsx�ts ha�e iasre e� t• 2296 every aiz ��aths.. We ar� uyier ��tant threst �f iisp]�u►sesent. I � i TY�e hiet�rical i'act si artist� bein� po�r h�lis hen. M�et •f us c�nn�t � af'�'or� t�igher rents. -____ _._ , —— _. _ . The Miltoa bl��. is ane �t� �eversl builZin� hania6 li�e in stu�i�s.�hea�e buildin�e t�r� beea ixhabitel by �rtists f�r the lzat-�� 5-'( year�. 1t II, one pvint� a eurvsy s�nluctel by the St. ��ul Ra,asey Arts � Sai�nce t;�unci'�1 inZis�tei thAt •ver 250 s�rtista uyed wareh�use spzses in the a�re�. N� �thjsr � aace�:. i� this sity ani a�t t�� other ti�e in th� history ot' St.Paul ha�e se � a�ny artista be�xi se��liia,tel int0 �ne camnunity.�I.�Nert�xn i� the anly � i, f��th�l�i •f t�e artistiu comsunity in this sity. �, �.._...�.�,�...e............�.....�..�,.......�,,,.._..,._.._.��.._.w.�.........._ .��,r��.. ..�.,.:,t,. ,�,,,,..�._, Artist� have been ztrs►cted t� this �rea bes�,.use •f the a�ailability •f �, lax�e�.pen/�.ffordable sp�ee.�These apaces s�n r�c��aaiate the ty�e �f' liwit�g �� I �n1 xarKing requireaexii whic� a.rtiats �eek. �� have rente� � �ru.� uninhabitei wai ab�►n�iine�l rz�r�hou�es, inrestea �i�w� tise s�n�l ■a1e the C'i-�... s�t��r�iui t• atu�li�s at i�s�s-� ezpetLSe. ""� But� s�re than this� +�t"('ifArtffo �S� th.re is the e�a��a realizatian tl�t �re hare esre�.ted a living situ�tion th�.'� n�o�k.OtA,E;,e is unique a� perso�l.��ll��t there is a nigh de;ree �f prafessional�s■ a�d r�speiat f�r �ne another as artist a within �ur e�asunity. C' , � �,i�,�;�'`�" �' We feel that our c�mu�utaity is z e1l�able r�s�urae t� the �ity by rirtue •f its vitality a.ne. expre�s ion •f iZeAa. The questian is, �lses the �ity of '� St. Pa.ul w�t artista as ps�rt �f the fs�brie of' its' social struature — sity glunaia�—a.nl cultuxal �evelopment?1 Certain pl�ns for the Zerels��en� A-R`�'l.fT5 �f l�wert�w� hare been i�ireal by tne co�unity �f �� n�w ezisting � in l�+ertewn and u�ed tU •bt�.in funlir�g but tY�e ee�n��ic ba.se tha.t h�.s I! � , evolvea rroa •ur e�raunity t�as n�t be�tt 6ire� aonsileration, in tnes� plan�� We want t• be ree�gnised rrr� � centributor ta the Qity. We IeCl ths�,t we ha�e been expl�itel./Tbe pr�p�sed pl�ns i'�r re�,evelep�ent in�lule 6alleriea� theaters� studios. Yet the grose�rs •f re�e�el�paent Zispla�ses the arti�;.. ,j� �� de�lev�lu�aent will eauae �11. tlse spa�es in l�wert�wn to be ao ea�pensiv� th�jt ventures into the r�sts will be unthinkable.�Lo�ic zt the z'in�naia�l �tite �fl the arta taZs�y, n�t �nly in�liriluzl artista but or�anizati�n9 whi�h supp�rt, �.ai represent tho Art�. There is �� alterrw.ti�e i�Zet��y��nt �ii�spl�,sc��' the zrtist�. We Zon't want to be ie�late�l fr�m,;,��r�, our zudience, and the publio �+� rre srer�te t�. ' �_.�....�....,..,�..�„�,......�.��,,�.•�.,..,.�w....� ..�..m.....,�...,�...�.�. i.J,� a»u'LA G/rCr� I 'Gt1RTi t301�1Ci11 t l d� l�i ; t`c L�-C��i✓w��y w� wR�r�" �a th� sity ��ur ezistence an�i our neels.f In �r1er t• do this we neeli t� ae�t with repreae�t�.tives •f eity ��ernxer�t to �liscuss alterr�tiwes :uc� �►s s��p,�r�ive ia�sA�eaent, l�x� ter� lea,mea, Zevel�paent •f etu�lioa, ets. /� / Ae.S'� � we �eei to k��w the eity'a u��ssY�nt �f the up�.st �f this pr�ject up�� us. HUD re�ulati�n requirea that an rr�alyaia sf tl�e iwps�st •f a, preject •r� �wY�l reei�lential nei�hb�rh�Nl�, p�rticul�rily th�se ef l�w to s�ier�.te incsue leiels. be sai�e,land the i�paet th�t business �pp�rtunitiee t• be sreatel will ha.ve��n / existit� businesaee. Haa this b�et� �lone? If n�t, we request ths�t a.n inpaE� at�.tete�t be adle bef�re the a,l],�sa�i�n sf funls' frsx UIioG. Thanlc Y�u .'.°.""`."' ` CITY OF SAtNT PAUL .-:,'�C i T T OD�•ry. -=R�' ♦ i. � '� "� ' �� DEPARTMENT OF PLANNING AND ECONOMIC DEVELC.��PMENT �'o � _`', .,; �� i'.I'•!Ili4� v"s '. `'m ��t�`'j�� =� JAMES J.BELLUS, Dt�tECTOR ' '°" 25 West Fourth Street,Saint Paul,Minne#ota 55102 :,::�:�:�.,�"` GEORGE LNTIMER � 61�-298-5775 MAYOR C r �` / ' / � CJj ( Q (r � December 15, 1981 , h1r. l�,�eiming Lu , Executive Director Lowertown Redevelopment Corporation Park Square Court St. Paul , Mf� 55101 � Dear l�lei mi na: ,1t today's City Council meeting, the issue of the future of th� artist colony no�•a located in the Lov�ertown area was raised. Jir� Schiller, representing the artists , indicated a concern abaut how they fit into future plans for the Lowertown area and ho4� their tvorking and living spaces can be preserved. Councilman ��ch?ahon moved and the rest of the Council unanimously aareed to ' refer this issue to the Lov�ertown Redevelopment Corporation since you ' have had previous discussions with the group and since the Council felt the Lowertvvrn P,edevelopment Corporation staff would be the appropriate lead group in resolvin� this issue. It ��iould be helaful if you could nrepare a report for the City Council for their Januar�r 21 r�eeting to update them on the progress you have r�ade The contact people representinc� the artists are �im Schiller (482-2338 or 225-9368) , John Federowicz (227-4106) , and Amy Soarks (ZZ1-0488} . Sincerely, ; � �� James J. Bellus Director JJB:co cc: Pie ers of Saint Paul City Council Olson, City Clerk i