05-1084Council FIle # ��' �J p�
Presented By
Referred To
RESOLUTION
5AlNT PAUL, MINNESOTA
GreenSheet# 3028390
RESOLUTION NO.
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3 RESOLUTION APPROVING AND AUTHORIZING: 1) EXECUTION OF A
4 DEVELOPMENT AGREEMENT WITH MARKET LOFTS LLC AND THE HOUSING AND
5 REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA; 2)
6 ACQUISITION OF CERTAIN PROPERTY LOCATED AT THE SW CORNER OF EAST
7 STH AND WALL STREETS AND MID-BLOCK ON THE WEST SIDE OF WALL STREET
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BETWEEN 4TH AND STH STREETS; 3) EXECUTION OF AN AGREEMENT WITH
MICHAUD BUILDING LLC; AND 4) EXECUTION OF A LIVEABLE COMMUNITIES
GRANT AGREEMENT WITH MARKET LOF`TS LLC, DISTRICT 17
WHEREAS, the City of Saint Paul, Minnesota (the "City") is desirous of developing an
approxunately 15,Q00 square foot indoor fanner's mazket space (the "Indoor City Mazket") on cerkain
properties located in the Lowertown area of downtown St. Paul adjacent to the present outdoar fanner's
market owned by the City. Located atop and below Indoor City Mazket will be constructed 41 units of far
sale housing, including four (4) units to be sold to persons of moderate income (the "Housing ProjecY')
(hereinafter the Indoor City Mazket and the Hosuing Project shall be collecrively referred to as the
"ProjecY'); and
WHEREAS, in order to help facilitate the Project, the HRA Board of Commissioners adopted
Resolution No. 03-7/9-3, authorizing the HRA to acquire the following two (2) parcels of real property
and legally described as follows:
Lots 1 and 2, Block 14, Whitney and Smith's Addition, according to the recorded piat thereof, and
situate in the City of Saint Paul, Ramsey County, Minnesota; and
I,ot 3, Block 14, Whitney and Smith's Addition to Saint Paul, except the Northwesterly 18 feet
thereof and except the Southwesterly 25 feet ther�f (hereinafter referred to as"Pazcel 2")
(hereinafter the above-described parcels are collectively referred to as the "Properties"); and
WHEREAS, the City desires to enter into a Development Agreement (the "Development
AgreemenY') with Market I.ofts LLC (hereinafter referred to as the "Developer") and the HRA, whereby
the HRA will convey the Properties to Developer, who will then subdivide the Properties so as to create
a Housing Parcel and a City Parcel. The Development Agreement further requires that the Developer (i)
will conshuct upon the Housing Pazcel a 40-space underground pazldng ramp below the Indoor City
Mazket and 41 units of for sale residential condominium lofts above the Indoor City Market, which wiil
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include a miniinum of four (4) housing units that will be sold to persons whose incomes do not exceed
eighry percent (80%) of the area-wide median family income for the St. Paul-Minneapolis metropolitan
area, and (ii) will, in partnership with the City, construct the exterior shell ofthe Indoor City Market upon
the City Parcel. Upon the completion of the subdivision of the Properties and the construcrion of exterior
shell of the Indoor City Market, the Developer wiil convey fee ritle to the City Parcel to the City for the
sum of One Dollar ($1.00) and other good and valuable considerarion; and
WHEREAS, the Project aiso requires that a new public alleywaybe established on the Properties
from East 5�' Street, which wiil allow, among other things, for the vehicular delivery of produce and other
products to a loading dock to be constructed on the City Parcel (the "City I.oading Dock"); and
WHEREAS, the owner of real property adjacent to the City Parcel, Michaud Building LLC
("Michaud"), has requested that the City enter into an Agreement with Michaud that would limit the times
of the day and sizes of the vehicles, by which the City or iYs designees can use the City Loading Dock
(the "Loading Dock AgreemenY'); and
WHEREAS, the Metropolitan Councii has made available to the City, a Liveable Communities
grant in the amount of $450,000.00 (the "Met Council GranY') far the purpose of facilitating the
development and construction of the Project. HRA is desirous of entering into a Grant Agreement
(hereinafter referred to as the "Grant AgreemenY' ) with the Developer in the amount of $450,000.00, for
the purpose of facilitating the conshuction of the Project; and
WHEREAS, unanticipated delays in completing all of the actions necessary to commence the
Project has resulted in an increase in non-property related Project costs and thus the need for the HRA to
amend and increase the original total budgeted Project cost bytransferring an addirional $300,OOOin public
funds from the HRA's Fund 117 Enterprise L,oan Fund; and
WHEREAS, the HRA Board of Commissioners, pursuant to action taken previous to the
consideration of this Resolurion, has approved the Development Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
Minnesota, that:
1. It hereby approves the Development Agreement in substanfially the form submitted, and
ali signatories designated under Chapter 86 of the City's Administrafive Code are hereby authorized and
directed to execute the Development Agreement on behalf of the City. The Director of the City's
Department of Planning and Economic Development is hereby authorized to negotiate and agree to any
amendments, delerions or revisions to the Development Agreement which do not substantially change the
rights or obligations of the City under the Development Agreement provided that such amendments aze
acceptable in form and substance to the 5aint Paul City Attorney.
2. It hereby approves and accepts the City's conveyance of the City Parcel to the Developer
under the terms and conditions set forth in the Development Agreement.
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3. It hereby approves the Loading Dock Agreement in substantially the form submitted, and
all signatories designated under Chapter 86 of the City's Administrative Code are hereby authorized and
directed to execute the Loading Dock Agreement on behalf of the City. The Director of the City's
Department of Plavning and Economic Development is hereby authorized to negotiate and agree to any
amendments, delefions or revisions to the I,oading Dock Agreement which do not substantially change
the rights or obiigations of the City under the I.oading Dock Agreement provided that snch aznendments
are acceptable in form and substance to the Saint Paul City Attorney.
4. It hereby approves the Grant Agreement, and a11 signatories designated under Chapter 86
of the City's Administrative Code aze hereby authorized and directed to execute the the Grant Agreement
on behalf of the City. The Director of the City's Depattment of Planning and Economic Development
is hereby authorized to negotiate and agree to any amendments, delerions or revisions to the Grant
Agreement which do not substanrially change the rights or obligations of the City under the Grant
Agreement provided that such amendments are acceptable in form and substance to the Saint Paul City
Attorney.
5. The Director of the City's Department of Planning and Economic Development ar her
designees, in consultation with the City Attorney's Office, are fiuther directed and authorized to take
all actions necessary to implement this Resolution and said Director is authorized to execute any
docuxnents and instruments in connection therewith.
6. It hereby approves the transfer of $300,000 HRA Enterprise Funds as detailed in
104 Attachxnent A.
Requested by Department of:
Planning and 8conomic
f Y:
AdoF
AdoF
BY:
Appx
BY:
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ATTACHMENT A
The Council of the City of Saint Paui approves the amendment of Indoor Farmers' Market Budget
2005 Capital Project Fund (CPL)
Indoor Fartners' Market
FINANCING PLAN
COS-7R056-7325-40000 Transfer from 2005 C.I.B.
COS-7R058-7302-00000 Transferfrom HRA Enterprise Fund 117-26505-0565
Total Financing
SPENDING PLAN
CO5-7R058-0547-00000 Indoor Farmers' Market Project
ToWI 5pending
Netlncrease
Current Change
Budget
260,000 -
- 300,000
200,000 300,000
Amended
Budget
200,000
300,000
500,000
200,000 300,000 500,000
200,000 300,000 500,000
300,000
10/10/2005 103.x1w Prepared by PED Accounting
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
pE — Planning & Econonuc Development
Co�ad Person 8 Phone:
Diane Nordquist
266-6640
Must Be on Council Agenda by (Da
���- tG NaY o5
70-OCT-05
�
Assign
Number
For
Routing
Order
Green Sheet NO:
0 lannine & Economic Develon 7 �
1 annin & Economic Develo De a ent Director �
2 "nancial rvites O�ce F'nancial Se ' / � y �� g �
a.3- im Attorne =
� vor's O ce Ma /A sistant
�` ouncil Ci Council
� erk ' Clerk
Total # of Signature Pages _(Clip All Locations for Signature)
City Council Resolution app:oving the Development Agieement and relafed Agceements fox the Mazket Lofts project, a 41 unit
condominium project with first floor in-door fazmer's market.
Recommendations: Approve (A) or K
Planning Commission
CIB Committee
Civil Service Commission
(R):
Answerthe Following Questions:
1. Has this person/firm ever worked under a contract for this departmenY?
Yes No
2. Has this person/frm ever been a city employee?
1'es No
3. Does this person�rm possess a skill not normal4y possessed by any
current city employee?
Yes No
Explain ali yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
OsOctober 12, 2005 the HRA Board will be requested to approve a resolurion approving a Development Agreement with Mazket Lofts
LLC and other related Agreements for the Mazket Lofts project.
Advantaaes If Approved:
The Developers will be able to proceed with the development of 41 units of ownership condominiuxns and a first floor in-door farmers
mazket owned by the Ciry of Saint Paul.
Disadvantaqeslf Appsoved:
None
DisadvantaAes If Not Approved:
The project would not move forwazd.
iL- _ 1��!A� :�. � •,,. , c, _,
NOV � � 2005
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3028390
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Totat t�mourn of � 1�505000 CostlRevenue eudgeted: ��� t;��,�R r
Trensaction: � - - O
Fundinq Source: STAR, Met Coun, CIB, Activitv Number: /� ,3 p 2 �
�o� �DS - �1�. n�� -0.�7 �
Financialinformation: HRAEntespri `-'(� �{3FX
(Explain) P�IVetE �unaS �
STAR and CIB will be shuctured as loans, repayable only if project is not complete. Met Council will be a
grant payable upon completion.
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