07-1139Council File # 6 �-1139
Green Sheet # 3046391
CITY
Presented by
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RESOLUTION OF THE CTTY COUNCIL OF 'Tf� CITY OF SAINT PAUL,
MINNESOTA APPROVING A BUDGET AMENDMENT TO THE URBAN
REVITALIZATION ACTION PROGRAM FOR THE RELOCATION OF
TENANTS IN'I'IIE CORNERSTONE APARTMENT5.
WHEREAS, one of the City of Saint Paul's housing goals is the maintenance of its housing stock and
the ability of its citizens to have safe and affordabie housing; and
WHEREAS, as described in the accompanying staff report there is a need to relocate the tenants in the
Cornerstone Apartment building located at 754 Payne Avenue and the City has been asked to provide funding
for this relocation; and
WHEREAS, the funding source for the relocation is the Urban Revitalization Action Program
(URAP) Income Fund.
NOW, THEREFORE, BE IT RESOLVED THE CITY COUNCIL OF THE CITY OF SAINT
PAUL hereby approves the budget amendment to URAP in the form of the Attachment A in the amount of
$40,000 for the relocation of tenants in the Cornerstone Apartments project.
RESOLUTION
AINT PAUL, MINNESOTA
�
BE IT FURTHER RESOLVED, that City staff is authorized and directed to take a11 action
necessary to implement this Resolution and the appropriate City officials are authorized to execute all
necessary documents.
Benanav
Bostrom
Harris
Helgen
Absent I ReauesYed bv Deoartment of:
Dev.
Form
Thune
�
Adopted by Council: Date ��d��,�/�Q7 Form
��
Adoption Certified by Council Secretary By;
By: /, �
Approved b r: Date � p Appro �b he ce Fi a] Services
Sy: By:
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
07-1/3�
Departmenllo�ce/council: Date Initiated:
PE - Plannine&EconomicDcvclopment ' 15-NOV-07
Green Sheet NO: 3046391
Contact Person & Phone: �artment Sent To Person InitiallDate �
Dan6aye5 � 0 PSauniuQ&EconomicDevelo➢mei �D'�}y_r__� (�
266-6685 - pssj9n 1 Plannin¢ & Economic Developme� Deoartment Director
Must Be on Council Agerida by (Date): ' Number 2 g}nancial Services Office Financial Services
28-NOV-07 � O �5 �.�.� ,�� For — 1���, t i
Routing � 3 C�tyAttornev CiriAttarnec
Doc. Type: RESOLUTION W/$ TR4NSAC Order ) 1
4 rlayor's O%ce Mavor/Assis[an[ �
E-DoCUment Requiled: Y '� > _ Council ' City Council
Document Contact: , �,, 6 Citv Clerk Citv Clerk '
Contatt Phone: ��, �, � �
—
Totaf # of Signature Pages _(Cfip All Locations for Signature) '
�Action Requested:
City Council Resolution authorizing approva] for the relocation of [enants in the amount of �40,000 for the Cornerstone Apartments '� -
' located oa 754 Payne Avenue. ;
� Recommendations Approve (A) or Reject (Rp I Personal Service Contrects Must Answer the Foilowing Questions:
Pianning Commission 1. Has this person/frm ever worked under a contract for this department?
CB Committee I Yes No
l i Qvd Service Commission I 2. Has this persoMfirm ever 6een a city employee?
Yes No
3 Does this personlfirm possess a skill not normally possessed by any
current 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):
� East Side Ne�ghborhood Development Company has requested assistance from the City of saint Paul to help relocate the existing
'� tenants the at are ]ocated at the CorneTStone Apartments. If ihe resoluYion is appzoved, the tenants w�ll be celocated to other existing
I, housing units in Samt Paul by the end of the year.
! Advantages If Approved:
''�, The tenants aze being removed fox safety and health reason from a building that needs $625,000 in repa�rs.
' Disadvantages If Approved:
� None.
I Disadvantages If Not Approved:
�, The pro�ect will not be completed.
tl Amount of
7ransaction: $40,000.00
Funding Source: URBAN REVITALIZATION
Financial lnformation: ACTION PROGRAM
(Explain) '
CostlRevenue Budgeted: y
Activity Number: p6 10136200-0547-61718 • �
November 15, 2007 1124 AM Page 1
D�-l/3y
ATTACHMENT A
Budget Amendment
City State Program Fund # 101
CORNER STONE RELOCATION
FINANCING PLAN
P6 101-36200-9830-00000 Use of Fund Balance
Changes to Financing Plan
SPENDING PLAN
P6 101-36200-0547-61718 Comer Stone Relocation
Changes to Spending Plan
Current Amended
Budget Changes Budget
0 $ 40,000 $ 40,000
$ 40,000
0 $ 40,000 $ 40,000
$ 40,000
CORNER STONE RELOCATION.xIs
b�-!13�J
CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA
REPORT TO THE CITY COUNCIL DATE: November 28, 2007
REGARDING: RESOLUTION APPROVING A BUDGET AMENDMENT TO THE
URBAN REVITALIZATION ACTION PROGRAM FOR
ASSISTANCE TO THE CORNERSTONE APARTMENTS PROJECT.
PURPOSE
To request approval of $40,000 to assist the East Side Neighborhood Development Company in the relocation of
tenants who currently occupy the Cornerstone Apartment building located at 754 Payne Avenue. Attached is a
resolution for the City CounciPs consideration which approves the use of $4Q000 in unexpended Urban
Revitalization Action Program funds.
BACKGROUND
The Cornerstone Apartments building was rehabilitated in 1991, HRA participated in the funding, for use as a low
income rental project and consists of six - small efficiency and six - one bedroom units located at the north east
corner of Payne Avenue and Reaney Avenue. The building is a three story (no elevator) walk up and tenant rents aze
$392 and $45l per month. The building currently has five units occupied and seven units unoccupied. For the past
several years the project has been suffering annual operating losses due to the limited rents they are able to charge to
attract tenants. The project is now at the end of the initial 15 year Low Income Housing TaY Credit period and has
started the second 15 yeaz Low Income Housing Tax Credit period. The Declaration of Land Use Restrictive
Covenants for Low Income Housing Credits (LURA) indicated that the second fifteen year requirement maybe
extinguish if the property is either foreclosed on or a deed in lieu of foreclosure is filed. However, the LURA also
states if the property is foreclosed or a deed in lieu of foreclosure is accepted, an additional three years reauirement
applies where the tenants can not be removed except for cause. In this case, all five existing tenants will need to
agree to voluntarily move from the property or the relocation of these tenants will not take place.
ESNDC is the limited general partner in this project and is requesting assistance. The building is in need of major
repairs that have been estimated at $623,000. Staff has determined that at this time the cost of rehabilitating the
building and subsidizing the annual operating expenses is too costly. The proposal from ESNDC is to relocate the
current tenants to safe and suitable housing. The Cornerstone Apariments building would be boarded until a future
neighborhood p(an for the area is undertaken that would address the potential building and for this area.
It is PED Staff's recommendation that at this time, the building should be vacated for safety reasons.
FINANCING
The funding ofthe $4Q000 would come from the unexpended Urban Revitalization Action Program budget and
would leave an unexpended balance of $141,554.56
ATTACHMENTS
City Counci] Resolution
Prepared by: Daniel K. Bayers, PED East Team, 266-6685