04-1074Council File # — ��
Resolution #
Green Sheet # 3024034
OF SAINT PAUL, MINNESOTA
Presented By
IC
Referred To �� Committee: Date
1 RESOLUTION APPROVING "1'HE TERMINATION OF AN ASSESSMENT AGREEMENT AND A
2 SECOND AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT
3 (JJ HILL PROJECT)
4
6 A. WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
7 (the "Authority"), the City of Saint Paul (the "City"), and Hill Building Limited Partnership, a Minnesota
8 limited partnership (the "Developer") have heretofore entered into a Second Amended and Restated
9 Development Agreement, dated November 13, 2002, as amended by a First Amendment to Second Amended
10 and Restated Development Agreement dated October 13, 2003 (coilectively, the "Development Agreement")
11 in connection with the renovarion of an existing building in the City known as the Great Northern Building
12 into an owner occupied housing development (the "Project");
13 B. WHEREAS, the Authority and the Developer have heretofore entered into an Assessment
14 Agreement dated as of December 17, 2002 (the "Assessment Agreement"), pursuant to which a minimum
15 market value was established for the Project, which Assessment Agreement were certified by the County
16 Assessor for Ramsey County, Minnesota (the "Assessor");
17 C. WHEREAS, pursuant to a Second Amendment to Second Amended and Restated Development
18 Agreement, (the "Second Amendment") a copy of which is on file with the City Clerk, the City, the Authority
19 and the Developer have agreed to, among other things, terminate the Assessment Agreement in connection
20 with the issuance by the Authority of its tax exempt taa� increment revenue bonds;
21 D. WHEREAS, pursuant to Minnesota law, the City Council must consent to the termination of the
22 Assesment Agreement.
23 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, as
24 follows:
25
26 1. The City hereby consents to the ternunation of the Assessment Agreement.
27 2. The Second Amendment is hereby approved in substantially the form submitted, and the
28 Mayor, Clerk and Director, Office of Financial Services are authorized to execute the same on behalf of the
29 City.
30 Adopted by the City Council of the City of Saint Paul, Minnesota this l Oth day of November, 2004.
31
Adopted by Council
Adoption Certified
Approved by
Date �� //J-�1�
Council File # " �V�
Resolution #
Green Sheet # 3024034
Requested by Department of:
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
�1-101�
Depar6nenNOffiedcouneil: Dafe Initiated: !
PE ����g��nomicDevelopmeat 260CT-04 I Green Sheet NO: 3024034
Deoariment SeMToPerson InitiallD te
Contact Person 8 Phone: � , fa �(
DianeNordquist 0 lanni &EconomcDevelo Carison ��/
��� q55ign 1 Flanuiu4 & Economic Develoo � Susao KimberiV � �� S
Must Be on Council Age�da by (Date): Number 2 i Attornev S. ei v
10-NOV-04 . � For
Routing I 3 inancia Services MattSmiltr
Order 4 r's Oftice Ma or/Assishnt
5 ouncil Council
_ 6 � Clerk CiN Clerk
Totai # of Signature Pages (Clip All Locations for SignaWre) y �
Action Requested:
Resolution Approving the Termination of an Assessment Agreement and a Second Amendment to Second Amended and Restated
Development Agceement (7J IIill Project).
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: .
Planning Commission 1. Has this pewoNFrm ever worked under a contract for this department?
CIB Committee Yes No �
Civil Service Commission 2- Has this person/firm ever been a city employee?
Yes No
3. Does this person/firtn possess a skill not normally possessed by any
curcent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): �
On November 13, 2002, the HRA and City Council approved a Second Amended and Restated Development Agreement with Hill
Building Limited PartnersLip to develop up to 53 units of owner-occupied housing in the historic JJ Hill Building. Per this Agreement, in
order to allow for tas exempt refunded bonds to take out a taxable developer note, the Assessment Agreement must be terminated.
Also, in order to proceed without a Moral Obligation, this Second Amendment to the Second Amended and Restated DevelapmPni-
Agrcetrne�t 1s necessa�.
AdvanWqes If Approved: �
Ta:c exempt bonds can be issued. Also, there is no longer a need fos the City and HRA to issue Moral Obligauon bonds.
DisadvanWpes If Approved: � � � � � � � �
None.
Q�� C
Disadvantages If Not Approved:
The taY exempt bonds could not be issued and/or the moral obligation would be necessary. �` ��� ���� ����
Totaf Amount of � Cost/Revenue Budgeted:
Transaction:
Fundina source: Tax Increment Financinc ActivltY Number:
F i nancial 1 nformation:
(Explain)