95-1047council File # � /�� �
Green Sheet # � ��?6
RESOLUTION
OF SAINT PAUL, MINNESOTA
Presented By
Referred To
Committee: Date
T�
WHEREAS, on September 28, 1994, the City Council of the City of Saint Paul established the Neighborhood Sales
Ta�c Revitalization (STAR} Program, C.F. 94-1127; and
WHEItEAS, the Neighborhood STAR Program is funded with fifty percent of an additional one-half of one percent
sales tax on sales transactions that occur within the city, pursuant to Minnesota Statutes, chapter 297A, authorized
by the State of Minnesota, Chapter No. 375, Sec.46; and
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WIIEREAS, the purpose of the Neighborhood STAR Program is to fund capital improvements to further residential,
commercial and economic development in the neighborhoods of St. Paul; and
WI�REAS, the Deparhnent of Planning and Economic Development (PED), in the first cycle, has received fifty
applications to the Neighborhood STAR Grant, Loan and Seed Capital Program; and
WIIEREAS, PED, the Neighborhood STAR Board, and the Mayor have evaluated the fifty applications and
forwarded their recommendations to the City Council; and
WIIEREAS, approval of projects at this point means the projects have six months to secure private match
commitments, comply with project stipulations, when applicable, and work with PED and other city departments as
required; and
WIIEREAS, upon conformance, within the six month period, of all project stipulations including credit
requirements as described in City Credit Reports, and in accordance with the STAR loan standards, if applicable,
the STAR grant and loan agreements, notes and other required documents will be signed; and
WfIEREAS, should an entity not comply with stipulations, credit and other requirements, and is not under contract
within the six month period following City Council approval, that entity will not be funded and the funds will be
reallocated to other projects as described in Attachment A; and
WIIEREAS, any STAR funds returned during or following the period an entity is under contract to the Ciry, will
revolve back to the STAR budget to be used for the next funding cycle; and
WFIEREAS, a one time waiver will allow under-utilized Seed Capital funds to be used in the regular loan pool; and
WI3EREAS, projects that are funded at less than the original request will reduce any direct project costs in
proportion to the cut in funding; and
WIIEREAS, the Mayor, Pursuant to section 10.07.1 of the City Charter, recommends changes to the 1995 budget as
listed in Attachment B:
NOW, THEREFOI2E, BE IT RESOLVED, the City Council approves the fixnding priorities and budgets for twenty-
two (22) projects at recommended funding amounts and terms as shown on Attachment A, and described in final
applications, subject to compliance with the program development and implementation requirements of the
Neighborhood Sales Tax Revitalization Program Guidelines; and
Page 1 of 2
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BE IT FURTI�R RESOLVED, that the City Council approves the changes to the 1995 budget listed on
Attachment B; and
BE IT FURTf�R RESOLVED, that the City Council approves the reallocation of STAR Funds as described in
attachment A, and the remrn of STAR funds to the appropriate STAR Program budgets to be used in the next
funding cycle; and
BE IT FURTHER RESOLVED, that a one time waiver is approved that will allow under-utilized Seed Capital
funds to be used in the regulaz loan pool; and
BE IT FURTHER RESOLVED, that the Mayor and City Council wish to extend their appreciation to all applicants
and to the Neighborhood STAR members for their time and efforts in developing proposals and recommendations
during the first cycle of the Neighborhood Sales TaY Program.
FINANCING Budget Change Proposed
Transfers from Escrow Account �t
P7-930-9�x-73ax 0 ?,�I�.d,f9��3,7�.�.
SPENDING
P7-930-9�x-0547
For Attachment B far Financing and Spending details.
Budget Directar ����
y
3,?x2,����3,i:�a,l9$ g�—
Finance and Management Director
Planning and Economic Development
Requested by Department of:
Adopted by Council: Date
Certified by Council
By:
Approved by
By:
n
Page 2 of 2
�E . .� o �- - .. -
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� 3 2 8 7 6
Planning & Economic Development 8/21/95 GREEN SHEE
CONTACTPERSON&PHONE INITIAL�DATE INRIAV�ATE
66694 � DEPAqTMENT DIRECTOR �/ � CITV CAUNqL
Amy Filice 66648, Joan Trulsen ASSIGN �GTYATfOflNEY �— OCINCLEflK
MUST BE ON COUNC�L AGENDA 8Y (DATE) a�B�R FOR � BUDGEf DIFECTOfi � FIN & MGT. SERVICES OIR.
ROUTING
8/30 Public Hearing °pDEP �MAVOR(ORASSISiANn Q t n
TOTAL # OF SIGNATURE PAGES 7 (CLIP ALL LOCATIONS POR SIGNATURE) 1400 City Ha11 An e:
ACTION REQUESTED:
Approval of STAR Board Recommendations for Neighborhood STAR Program.
RECAMMENDAnONS: Approve (A) or Reject (R) pERSONAL SEHVICE CONTRACTS MUST ANSWER TXE FOLLOWING �UESTIONS:
_ PLANNING COMMISSION _ CIVIL SEBVICE CAMMISSION 1. Has this perso�Nirm ever worked untler a contract for this department�
_qBCOMMITTEE A STAR Board ves NO
_ STAFF 2. Has this perso�fltrm ever been a city employee�
— YES NO
_ DISTRICT COUR7 _ 3. Does this perSOnRirm possess a skill not normally possessed by any currem ciry employee?
SUPPORTSWHICHCOUNCILO&IECTIVE7 YES NO
Ezplain all yes answers on separate sheet anE attach to green sheet
INITIATINCa PROBLEM, ISSUE, OPPORTUNIN (Who, What, Whan, Where. Wny):
Cycle 1 of the Neighborhood Sales Tax Revitalization (STAR) Progran — Proposals have been
reviewed by the Neighborhood STAR Board and funding recommendations are attsched for review
of City Council members.
A Public Hearing has been scheduled for the August 30, 1995 Council meeting.
ADVANTAGESIFAPPROVED:
Neighborhood proiects and programs can begin the contracting process and implement the
recommended STAR proposals.
OISADVANTAGES IFAPPflOVED:
None r�,�'b4!'t`,�+.��r;
°�� �� 199�
.�,..,�:�, ,�.�
DISADVANTAGES IF NOT APPqOVE�:
Neighborhood projects/programs will not be implemented.
TOTAL AMOUNT OF TRANSACTION $ �j� r�`� J��" COS REVENUE UDGE7ED (CIRCIE ONE) YES NO
FUNDIfdG SOURCE Sales TaX� ReVOnlle pC71VITY NUMBER � 'J �� 7 S^
FINANCIAL INFORMATION� (EXPLAIN) 9 3 o b
9307
95-10�7
�
C1TY OF SAINT PAUL s9ac�xau re:�r�,�: a�z-zsc-asio
Norm Colemarz, Mayor ZSWatKe7lo�Boulevaid Fac,nmJe: 6I2d28-8513
SaintPaul, AqJ55102
August 24, 1995
David Thune, Council President
Members of the City Council
310 City Hall
Saint Paul, Minnesota 55102
Dear President Thune and Members of the City Council:
RE: Neighborhood Sales Tax Revitalization (STAR) Program Funding
Recommendations
� It is my pieasure to forward for your review and consideration a proposed Council
Resolution which identifies funding recommendations for the 1 st cycle of the
Neighborhood STAR Program. The recommendations are tor projects and programs
to be funded with STAR loan, grant and seed capital loan funds. Applications inciude
economic development projects including construction of a retail center, grocery store,
and retail/office buiiding; residential and commercial rehabilitation programs, pollution
clean-up, street-scape improvements, and community center construction.
The Neighborhood STAR Program funding recommendations before you are based
upon a participatory rating and ranking process that inciudes review by the „
Neighborhood STAR Board, the qepartment of Planning and Economic Devefopment
staff and credit committee, and the Planning Commission. This Neighborhood STAR
Program cycle included a totai of fifty (50) applications. The completion of the review
process came on July 31, 1995, when the Neighborhood STAR Board made its final
recommendations on funding amounts and terms for the twenty-one (21) proposais
listed on Attachment A.
These recommendations reflect a wide variety of needs among St. Paul's diverse
neighborhoods and I commend the STAR Board on their thoughtful and appropriate
recommendations.
•
Neighborhood STAR Program Recommendations
Page Two
August 1, 1995
In addition to the STAR Board recommended projects, I am requesting funding of two
other proposals:
#113 Dayton's Bluff NHS Star Purchase Program for a grant of $90,078; and,
#100 Jerome Shared Arts Facility Project for a loan of $ 156,870.
These projects are next in the STAR Board's recommendations for grants and loans
and provide additional geographic equ'�ty to the mix of proposed projects. The funds
for these projects would come from sales tax receipts collected during the month of
December 1995, allowing the complete calendar year of 1994 to be included for the
1994 funding cycle. (Please see details on attachment C.)
I urge your support of:
• the attached resolution;
• ranking, funding and term recommendations (attachment A); and
• budget revisions (attachment B).
• two additional projects (attachment C).
If you have any questions about the 1st cycle process or woul
information on any of the proposals, please contact Amy Filice
Joan Truisen at 266-6694, or ponna Drummond at 266-6556.
Sincerely,
��� �`��' ��•
46' F `--„
Norm Coleman
Mayor
NC:jmt
Enclosures
d like additional
at 266-6648,
�
n
LJ
•
1 153-95
2�142-95
31165-95
4�151-95
5�152-95
6�130-95
71133-95
8 116-95
9 ll5-95
10 158-95
1 1 160-95
12 146-95
13 166-95
14 141-95
1 5 i4s-95
1 6 104-95
17 125-95
1 8 127-95
.Side Business Dev Loan Fund
hason Supermarket
mbodian Community Center
ilroad Is. Moving on the Rt Track
verview Area Streeucapz Proj
ac-Groveland Mid Income Fie-up
)C Speciat Opportunity Loan Fund
ong Neighborhoods - Safe Ciry
yne Avenue Commercial Gateway
alen Corridor Redev. Proj.
Iby/Dale Retail O�ce Bldg
aryland/Dale Development
uv.-Mazketplace Facade Improv P
le Cross Rd Development Strategy
3 Hague Saint Albans Terxace
sthetic Uplifr & Sr Citizen Assist.
MARC Ext. Renovation Fund
Economic Dev Assoc
ed Cambodian Assoc of MN
�oad Is. Implmm Group,ESNDC,
rview Economic Dev Assoc
�lesterGroveland Comm Council
hborhood Development Ctr
DC & District 5
Side Nhd Development Co.
Paul Port Authority & ESABA
� Area Community Dev Corp
10, Como CC, Ec Dev. Comm
ersity UNIT$D
h End Area Revitalization Inc
;ct foc Pride in Living Inc
�ra St. Anthony Nhd Dev. Corp
Ctr of St Pau]
20 132-95 6ingle Family Home Reinvestment �eDA & Fort Road Federation
27 155-95 ndustrial Expansion/Renov. I,oan P t. Paul Port AuThoriry
113-95 ayton's Bluff NAS Stu Purchase P ayton's Bluff Nhd Housing Serv
100-95 erome Shazed Arts Facili rts ace
*= indicates loan terms have been changed.
**= Project withdrawn 8/3/95. Funds moved to #113, Dayton's Bluff NHS
ATTACH
lS- . - -_ GYCLE 7
i
CR 2
NCC/ED 1
A/CGCR ' 2
� � 6
cs 2
iuz 3,4
Cx/ED I, CW
3R/GP/CR� 5,6
cx 6
Pa/n ' 6,7
NCC i 1
ED/CC i 5
CR 1,4
cEUCS 5
xx�p � 1
xx I 1
Rit i 4
cc , 3
A/RR 2
CR CW
A/RR 7
A/CR � 4
• Seed Capital budget =$275,000 in requests. Moved $88,958 S.C. funds to the regulaz loan pool. NOTE: Funds
� Risk Rating average on recommended loans equals rating of 2.88, this meets the average (3 or less)
113-95 * ayton's Biuff NHS Staz Purchase P ayton's Bluff Nhd Housing Serv nntR ! 7
I15-95 * ayrne Avenua Commercial GaYett�a� ast Sifle Nhd be�eiopmerif Co. cx f 6,7
G3
� Revised August 24 . 1995
$150,000! $50,000'' $150,000
$100,000; '
$74,000 i
J � $150,000
$200,000�
$100,000 $25,000' $35,000
I $80,000
$15QOOOi I
I $300,000
$125,000
$'75,000
$30,000
$45,000
$50,000
$225,500
$100,000
$50,000� i
i
I
$150,OOOt $50,000�
$100,000; '
$74,OOOi
$200,000
$1OQ000i $25,000
-- I i
$300,000
IIl
$1
$90,078
the difference between
recommends reduction of NHS's $
to
�
�
$166,000; 3�
$160,000� 4'i
�rso,000; a'
i
i
$150,000; #2'
! x4 i
$35,OOOI 3,4;
$80,000� 3i
� $300,000': SI
I
$50,000 �3I
$225,500 2�
I $100,000 3�
i $408,000 *I�
>s 4..
V° $300,000 1 s<r::
$I50,000' 21
$156,870 �L
75,000� $2,431,370
yor: $3,695,448 �
totaIs and resolution totals. �
starmayr.wk3
A ..
Ce _.:
CR .
CS' .
fiEGOMIt!iFRF�ATt€}NS `--. -
u -_
�1Qk��#� � � v..,t m �'�� :.
NK ORDER BUT ARE NOT F
.twork of Minnesota Inc itx
Btuff Ctr for Civic Life xx
A/CR
CYCLE 7
5,6
7
4
135-95 *�onomic Dev. Leverage Loan Fund �orth East Neighborhood Dev. Corp cx i 6,7
149-95 * enant Remedy Actions ommunity Stabilization Project x2 � 1
117-95 * aptl I.oan Pool Utility Reduc nvironment & Energy Resource Ctr cx� CW
128-95 �bert L.anding �wertown Redevelopment Corp r I 2
134-95G �ncentive Prog for Residential Insulati t. Paul Nhd Energy Consortium (NE ErRIUCR � CW
157-95G dushial Redev't of Brownfield Sites amt Paul Port Authority rt,�n �,2,5,6,
131-95G yton Pazk Home Recycling Phase I eighborhood Concem Inc. aiaR � 5
1b7-95GL lock StabilizaTion Progiam pper Swede Hollow Nhd Assoc itlt 7
145-95 * vesting in Tomorrow's Commt.
110-95 * i aytpn's B1uff Paint and Fix Progiam
100-95 Jerome Shared Arts Facility
18-95L
12-95GL
19-95GL
Side Streetscapes:Beaver lake WetlanP Art Saint Paul csazs 6
niv./Raymond Revitalization Pt Anthony Pk Business/Northem Cla n 4
Chautauqua on the Rivex utauqua on the River Cx 2
ousing Improvement Proa am AR/Neigh Housing Agenda Comm. 1ut � 5
argeted Homeowner Utiliry Reduct. vironment & Energy Resource Ctr � I CW
� ounds Park Legacy Fstates, Pilot ayton's Bluff Ctr for Civic Life a�1z 'i 7
ome Ownership Purchase Fund amline Midway Area Rehb(H-MAR xx � 4
omeowner Rehab Matching Grant Pr orth East Neighborhood Dev. Coip I xit 6,7
' rogtown Bus. Dev. Fund rogtown Action alliance CR�v 1
omebuyer Incentive Program ; oject for Pride in Living Inc. (PPL) x1t i 1,2
ummit Brewing Co. aint Paul Port Authority rtvED ?
SNHS Retail Revolving Loan Fund est Side NHS Cx I 2
rand Ave- Summit HIlI Trolley d Ave Bus. Assoc & Summitt Hill n 2,3,4
ale St. Shops Redevelopment t Paul Port Auth/Frogtown Actn Alli � Pevn 1
� iller Coaches Comm. Renovation omas Dale Dist 7 Planning Council Cx�D i 1
rogtown Revolving Loan Fund I est Side NHS p�ut I 1
W. Rev.Loans for Non-En .S ' West Side NHS nntx i CW
6fPxO3uL:-____ ---.- ..'_ .- - _ _ _ _ _.__ _ _
_ . _ - - _ . _ . - , - , - _ _ GS -
Con:stinetion(uicittdes fiattuesfequtipmentf _ - -- -- _ - - - - - - - p
Reliab jaLsdincludes rehzb nE child care space, apa[aneM community room; znd tuismus ecgausioa): "=- - PG -
sheetsc?Pa� � � . � _ - - t RR
- . . __ .___ -
evei�mmenriobseie2reiltxeCained -_ . - - - - - -:-- "___ � =- .�- RS
starmayr.wk3
Reuised August 24 1995
- Green spaceDevetopment (melndes community gaideas, resideuual iandscaping„ msssic gacden}
ParkIaiprovemems - Citq prbyercy -
Ptayground Lpprovements (inctudes mflots) Q _
$aside¢vatRehab _ -
1 Acceptabie � - -
2 Speciat �Sention -
3 Subsrendard - -
a Douttul - -
95-10�7
a
C �
J
r�
U
REVISED 8/24/95
N
Pianning and
STAR Progra�
! Sales Tax Revenue transferred from
� Neighborhood STAR Loan Program
� P7-930-90305-7304-00000
Neighborhood STAR Grant Program
P7-930-90306-7304-00000
Neighborhood STAR Seed Capital Program
P7-930-90307-7304-00000
TOTALS
starattb.wk3
Development
� P1an
$Oi $2,431,370
$0� $989,078
Attachment B
$2,431,370
$989,078
$301,750
$3,722,198
Page 1
REVISED 8/24/95 Attachment B `
158-95
160-95
146-95
166-95
141-95
148-95
104-95
125-95
127-95
113-95
132-95
155-95
100-95
�len Comdor Redev, Proj.
930-90306-0547-77025
by/Dale Retail Office Bldg
�930-90305-0547-77026
�ryland/Dale 4 Corner Master Plan
-930-90306-0547-77027
iv.-Mazketplace Facade Improv P
-930-90306-0547-77028
le Cross Rd Development Strategy
-930-90305-0547-77029
-930-90306-0547-77029
3 Hague Saint Albans Tesace
-930-90305-0547-77030
sthetic Uplifr & Sr Citizen Assist.
-930-90305-0547-77031
MARC Ext. Renovation Fund
-930-90306-0547-79032
vish Communiry Cu Capitat Impr.
-930-90305-0547-77033
yton's Bluff NHS Staz Purchase Prog
-930-90306-0547-77034
igie Family Home Reinvestment
-930-90305-0547-77035
lustrial Expansioa/Renov. Loan P
-930-90305-0547-77036
:d Capital Budget
-930-90307-0547-77037
•ome Shared Arts Facility
TOTALS
PCaR
$OJ $50,000
$0
750
•
•
starattb.wk3 Page 2
ATTACHYIENT C
i
LJ
NEIGHBORHOOD STAR FUND ALLOCATIONS FOR 1995
Grants (30% available funds)
Smali Grants
Lar�e Grants
Total Grants
Loans (60% available funds)
Seed Capitai (10% available funds)
Total available on December 1, 1994
$ 182,128
$ 910,643
$1,092,771
$2,185,542
$ 364,257
$3,642,570
95-1047
NEIGHBORHOOD STAR BOARD RECOMMENDATIONS FOR 1995
Grants (29% available funds)
Small Grant Recommendations adopted 4/26/95 $ 175,254 $ 6,874 remaining
Lar e Grant Recommendations 910 643
$1,085,897
Loan Recommendations (62% available funds)
Seed Capital Recommendations (8%)
Amount remaining (1 %)
$2,274,500
$ 275,000 $ 249 remaining
$ 88,958 transferred
to large loans
Total STAR Board Recommendations $3,635,397 $ 7,173 remaining
(Including Approved Small Grant Projects)
TOTAL FUNDS AVAILABLE INCLUDING SALES TAX PROCEEDS
TIIROUGH DECEMBER 31. 1994
Actual Neighborhood Sales Tax Fund contributions for the months of December 1994 - 7une
1995 to[al $1,830,156. A one month share, or December's shue, equals $261,451.
The proportional distribution for December proceeds is as follows:
Grant portion = .3 x $261,451 = $ 78,435
Loan portion = .6 x $261,451 = $156,870
• Seed Capital = .l x $261,451 = $ 26,145 TOTAL = $261,451 + $3,642,570
_ $3,904,021
PROPOSED USE OF ADDITIONAL DECEMBER FUNDING
Dayton's Bluff NHS $78,435 to be added to $11,643 originat recommendation =
$90,078 (grant funding)
Jerome Shared Arts Facility $156,870
poan funding)
The percentages would then be (given the increased totalfunds available as $3,904,021.
Granu (30% available funds)
Small Grant Recommendations adopted 4/95 $ 175,254 $ 6,874 remaining
Laree Grant Recommendarions $ 989.078
Total Grants $1,164,332
Loan Recommendations (62% available funds)
Seerl Capital Recommendations (7%)
$2,431,370
$ 275,000
$ 26,444 remaining
$ 88,958 transfened
to large loans
i
Remaining (1 %)
Total Mayor's 1994 Proposed Recommendations
(Including approved Small Grant projects)
$3,870,702
$ 33,318 remaining
•
•
95 - loy�
Attachment D
Neighborhood STAR Project: # 158-95 Phalen Corridor Redevelopment Project
Applicant: Saint Paul Port Authority and East Side Area Business Association
Additional language requested by Council Members Janice Rettman and
Dino Guerin.
Whereas the Phalen Corridor covers a large area including Williams hili, etc. and
Whereas the original language in the Phaien Gorridor STAR proposal included the
possibility of acquiring the Poor Richards site and
Whereas the Poor Richards site has been privately acquired by United Waste and
has gone through site plan review, zoning, and planning commission review for reuse
of the site, and
Whereas there is a court order and a judgement monitored by the MPCA regarding
timelines on cleaning the site and
Whereas the Port Authority has removed it from their list of industrial sites and
Whereas United Waste has agreed that they will work to meet any stipulations
regarding set-backs and landscaping finally arrived at regarding the Phalen Corridor,
Therefore be it resolved that this notation be included in the Phalen Corridor STAR
proposal contract which will 4hen allow the STAR proposal to focus on other sites
rather than the United Waste site.
N:UMTSTAR\PHALENCO ATT