95-675��� Sr' I N A L Council File # qS-G7
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- Green Sheet � ✓oc 7 l
RESOLUTION
CITYOF SAINT PAUL, MINNESOTA �
Presented By
Referred To
Committee: Date
RFSOLUTION FSTABLISHING AN EDUCATION CENTER AND TEACHER
TRAINING INSTITUTE, ACCEPTING STATE FUNDS, AND
AUTHORIZING DISBURSEMENT OF SAID FUNDS TO
MIIVNFSOTA HUMANITIFS COMMISSION, PAYNE-PHALEN DISTRICT 5
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WFIEREAS, on 7une 14, 1995, the Boazd of Commissioners of the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota (HRA) will have considered a resolution authorizing
among other acfions final developer designafion to Muuiesota Humanities commission for the
Gillette Hospital west wing and transfer of certain real estate to the City of Saint Paul and on June
21, 1995, the Council of the City of Saint Paul, Minnesota will consider a related resolution
authorizing among other actions the establishment of an education center and teacher trauring
institute and the lease of the Gillette Hospital west wing to the Minnesota Humanities Commission;
and
WHEREAS, in 1979, the City of Saint Paul acquired the Gillette Hospital site from the State of
Minnesota; and
WI3EREAS, a porkion of this total site has been developed for senior housing ]rnown as Phalen
Shores, leaving a lazge vacant parcel and the Gillette Hospital west wing building available for
development; and
WHEREAS, this vacant parcel and the Gillette Hospital west wing are currently owned by the
Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA); and
WFIEREAS, the Gillette Hospital west wing has been designated by the Saint Paul Aeritage
Preservation Commission as a local heritage preservation site; and
WI�REAS, Minnesota Humanities Commission, a Minnesota non-profit corporation, has submitted
a proposal to restore the Gillette Hospital west wing into a 22,000 square foot faciliry for its
education center and teacher training institute and related activities that provide, but aze not limited
to, new models for teachers; and
WHEREAS, the Payne-Phalen District Five Planning Council, the Council's Gillette Task Force the
Gillette Heritage Associafion, the East Side Arts Council, residents of Phalen Shores, and other
neighborhood groups have reviewed and approved the Minnesota Humanities Commission proposal
for the reuse of the Gillette Hospital west wing; and
WE�REAS, in 1994 the Saint Paul Pazks Commission, per Secflon 13.01.1 of the City Charter, has
approved the exchange of park land measuring about 60,000 square feet for a comparably sized
parcel of HRA land to provide for cunent parking and fuhue expansion needs of the Minnesota
Humanities Commission; and
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WHEREAS, the project will result in the rehabilitafion of a long vacant but historically significant
building which will contribute to the cultural vitality of the East Side community; and
WHEREAS, on 7une 14, 1995, the Boazd of Commissioners of the Housing and Redevelopment
Authority of the City of Saint Paul, NTinnesota (HRA) will have approved the following: 1) final
designation of the Minnesota Humanities Commission as developer for the Gillette Hospital west
wing at 987 East Ivy Avenue; 2) a waiver of the Commercial Rehabilitafion Loan program
guidelines; 3) a CIB Grant in the amount of $133,476 for the rehabilitation of the Gillette Hospital
west wing which was approved by the CIB Committee on 7une 9, 1994; and 4) transfer of certain
real properry from the HRA to the City of Saint Paul, Minnesota; and
WHEREAS, the Minnesota Humanities Commission received approval in 1994 of $1,200,000 in
State of Minnesota bond proceeds which funds aze needed to complete the rehabilitation of the
Project; and
WHEREAS, the State of Minnesota has required that the City hold tifle to the Project real estate and
that the City will lease the property to the Mimiesota Humanities Commission; and
WHEREAS, this Ciry Council has considered the issue of rent to be chazged to the Minnesota
Aumanities Commission and has determined that a nominal net rent is vitally necessary and in the
public interest in order to ensure that an education center and teacher training institute and related
activities that provide, but aze not limited to, new models for teachers, will continue to be available
in an affordable and cost effective manner; and
WHEREAS, this City Council has considered the Minnesota Humanities Commission's capital
financing arrangements and in particulaz its first mortgage financing and understands that during the
construction period a Subordination Agreement whereby the lease to Minnesota Humanities
Commission will be subordinated to the real estate to the first mortgage is in the public interest in
order to ensure that the Museum secures and retains the private financing needed to complete the
renovation of the Gillette Aospital west wing for use by the Minnesota Humanities Commission to
operate its education center and teacher training institute, and therefore the City shall enter into such
a Subordination Agreement at the request of the Minnesota Humanities Commission is permitted by
law; and
WAEREAS, funds have been appropriated by the State of Mimiesota in the amount of $1,200,000
(the "State Funds") pursuant to Laws of Minnesota, 1994, Chapter 643, Secfion 2, Subdivision 16,
for the purpose of establishing and maintaining an education center and teacher training institute and
related activities that provide, but are not limited to new models for teachers as authorized by 1994
Minnesota Laws, Chapter 643, Section 72, subject to new Minnesota Statutes, Section 16A.695; and
WFIEREAS, the State Funds are an appropriation for a grant to the City of Saint Paul, Minnesota to
establish and maintain an education center and teacher training institute and related acfivities.
NOW, THEREFORE, BE Tf RESOLVED by the Council of the City of Saint Paul, Mimiesota as
follows:
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11. That the Ciry of Saint Paul, Minnesota accepts from the State of Minnesota, funds
appropriated by the State of Minnesota in the amount of $1,200,000 pursuant to Laws of
Minnesota 1994, Chapter 643, Section 2, Subdivision 16, for the purpose of renovating
the Gillette Hospital west wing for use by the Minnesota Humanities Commission to
operate its education center and teacher training institute as authorized by 1994 Minnesota
Laws, Chapter 643, Section 72, subject to new Minnesota Statutes, Section 16A.695.
2. That the City of Saint Paul, Minnesota accepts transfer of tifle to the properry legally described
as Lots 1 and 3, Block 1, Phalen Shores, Ramsey County, Minnesota.
100 3. That the City of Saint Paul, Minnesota approves disbursement of said State Funds to the
101 Minnesota Humanities Commission under the following conditions:
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a. That the City enter into a lease with the Minnesota Humanities Commission for the
property legally described as:
Parcel 1:
L,ot 1, Block 1, Phalen Shores, Ramsey Counry, Minnesota.
Pazce12:
All that part of the South 627 feet of the Northeast 1/4 of the Southwest 1/4 of
Sec6on 21, Township 29, Range 22, except the West 596.67 feet thereof, and
subject to Avenue, described as beginning at a point on the East line of said
Southwest 1/4, and 1,522.31 feet south of the Center of Section 21; thence
Northwesterly on a curve concave to the Southwest with radius of 950 feet, for
1,065.07 feet; thence on a reverse curve with ndius of 1,817.35 feet for 1,017.61
feet to a point on the North line of said Northeast 1/4 and 1,287 feet West of said
Center of Section 21, lying East of the Easterly line of Phalen Shores, and
encompassed by a line described as:
Beginning at a point of beginning on the Southeast corner of Lot 4, Block 1,
Phalen Shores; thence along the South line of said Lot 4 extended Easterly 235
feet; thence South, parallel with the East line of Block 1, said Addition, 252 feet,
thence West, parallel with the South line of said Lot 4, 235 feet; thence North,
along the East line of Block 1, said Addition, to the point of beginning and there
terminating
(the "Property") for the e�ress purpose of renovating the Property for use by the
Minnesota Humanities Commission to operate its education center and teacher training
insfltute on the Property, to carry outthe public purposes of the City of Saint Paul to
establish and maintain an education center and teacher training institute and related
activities that provide, but are not limited to, new models for teachers.
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b. That the lease to the Minnesota Humanities Commission by the City for the Properiy
shall comply with Minnesota Laws 1994, Chapter 643, Section 2, Subdivision 16 and
Minnesota Statutes, Section 16A.695, and shall contain such other terms as deemed
appropriate by City staff and legal counsel.
c. That disbursement of the State Funds shall be made by the Ciry to the Minnesota
Humanities Commission at such times and in such amounts as State Funds are received
from the State of Minnesota, subject to the terms of the lease.
BE TT FURTF�R RFSOLVED, by the Council of the City of Saint Paul, Minnesota that the
Neighborhood Revitalizafion Program fund budget is amended as follows:
Current Amended
Budeet Chanees Budget
FINANCING PLAN:
Grant from the State of Minnesota
Minnesota Humanities Commission Project
101-36301-3490 0
SPENDING PLAN:
Grant to Minnesota Humanities Commission
P6-101-36301-0547-61560 0
Net Increase:
1,200,000 1.200,000
1.200,000 1.200.000
1.200.000
_— ,`�� M. Ru--`--�
Requested by Department of:
�
P1 nc & Eco om c Deve o�ment
By: �
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by Council:
certified by
E.�F'i
Secretary
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Form Approved by City Attorney
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� 3 2 9 51
Planning � Economic Development 6/8/95 GREEN SHEET -
iNR1AUDATE 1NfT1AVDATE
CANTACT PERSON & PNONE Q DEPAflTMENT DIREGTOR � CIN CAUNCIL
Mara 0'Neill 266-6620 ���N �cmnnoaN ciTVC�aK
MUST BE ON CqUNCiL AGENDA BV (DATE) ���FOR � BUDGET DIRECTOF � FIN. & MGT. SERVICES DIR.
June 21, 1995 o"oEp � MAVOR (Ofl ASSISTANn �
TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION flEWE$TE�:
Approval of Resolution establishing an education center and teacher training institute, accepting (staff nds, and
authorizing disbursement of said funds to Minnesota Humanifies Commission, Payne Phalen District 5.
RECOMMENOnn7�ONS: npprove (a) or aejec[ (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS:
_ PLANNING CAMMISSION _ CIVIL SEFVICE COMMISSION �� Has this DersoNfirm ever worketl under a contract for this department? -
_ C1B COMMfTTEE _ YES NO
_ S7AFF 2. Has this person/Firm ever been a city employee?
— YES NO
_ DISTRICT COUR7 _ 3. Does this person/firm possess a skill not normally possessed by any curtent ciry employce?
SUPPOflTS WHICH COUNCIL OBJECTIVE? YES NO
ExpVain atl yes answers on separate sheet antl attach to green sheet
INITIATING PAOBLEM, ISSUE, OPPE7ATUNI7"/ (Who. Whet, When, Whare, Why):
The State of Minnesota approved $7,200,000 in State bond funds to the City of Saint Paul for the purpose of
assisting the Minnesota Humanities Commission (MHC) renovate the Gillette Hospital west wing for use as an
education center and teacher training institute. It is requested that the City Councii accept these funds, that the
City Council accept transfer of title to certain real property from HRA, that the City Council approve a lease with
MHC, and that the City Council authorize disbursement of the State funds to MHC. On June 14, 1995 the HRA
Board wi11 be considering finai developer designation to MHC along with refated aetio�.
ADVANTAGESIFAPPROVED:
The public purpose of estabtishing an education center and teacher training institute as authorized by Minnesota
statutes v,�ill be met. In addition a long vacant but historically signfficant building will be rehabilitated,
contributing to the cultural vitality of the East Side Community.
DISADVANTAGES IF APPROVED:
None
DISADVANTAGES IF NOT APPflOVED:
MHC will be unable to complete fts project to renovate the Gillette Hospitai west wing and the building will
remain vacant.
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TOTALAMOUNTOFTRANSACTION S �•��Q.�� COSTBEVENUEBUDGE7ED(CIRCLEONE) VES NO
FUNDIfiG SOURCE � /�' �^ �—�_ �'(� �� ACnVi7Y�ER I� � ^ V� �P `U� � I '��Y✓]
PINANCIAL INFORMATION: (E%f'LA1N) �J�J �
Ci���
5. g�`�
HOUSIIVG AND REDEVELOPMENT AUTHORITY OF TtfE CITY OF SAINT PAUL, MINNESOTA
REPORT TO THE COMMISSIONERS DATE June 14, 1995
REGARDING Approval of k�nal Developer Designation and Other Activities
for the 1Vrinnesota Humanities Commission/Gillette Hospital
Project, Payne-Phalen District 5
Purpose
The purpose of this report is to obtain HRA Board authorization for the following:
1. Final designation of the Minnesota Humanities Commission (MHC) as developer for the
Gillette Hospital west wing at 987 East Ivy Avenue.
2. Waiver of program guidelines from the Neighborhood Commercial Rehabilitation Loan
Program, which is consistent with previous HRA actions.
3. Transfer of certain real properry from the HRA to the City of Saint Paul.
This project was most recently presented to the HRA Board in 7anuary 1995, when a sewnd six-
month extension of tentative developer designation was approved. Prior to that, the HRA
granted MFIC tentative developer designation in December 1993 for a 180-day period. The first
siY-month extension was approved by the HRA Board in June 1994.
Background/History
The Gillette Hospital west wing was constructed in 1924 and housed the school, library and
auditorium of the Gillette State Children's Hospital. In 1977, the Hospital was vacated and in
1979 it was conveyed to the City. In 1982, the City determined that a portion of the Gillette
land would be retained as park land, and portions (including the west wing) would be
redeveloped. The HRA is currently in ownership of the Gillette Hospital west wing.
Originally founded in 1972 by an Act of Congress and supported through an annual
appropriation from the National Endowment for the Humanifies Commission, MHC is a
Minnesota non-profit corporation that supports and conducts cultural and education programs
throughout the State. MHC offers professional development instruction and classroom
materiais to K-12 teachers and other educators through vazious programs including a speaker's
bureau, eazhibits and radio and film documentaries. A major program is the Teacher Institute
which provides professional development for teachers on a week-long basis. During the 1980s,
MHC had become increasingly concerned that the benefits of humanities education were not
readily avaz7able to Minnesotans who were economica(ty disadvantaged and who had limited
formal education To meet this need, MHC initiated a statewide family reading and discussion
program, MOTI�I2EAD/FATf3EREAD, which uses multicultural children's books to help
parents and children learn to talk together about the values and truths found in good literature.
After extensive analysis, MHC determined that it would be more affordable and cost effective to
acquire and renovate space rather than depend on rented space for its offices and programs.
MHC chose the Gillette building for its new home because of its beautiful location, its unique
and historic character, and its value to the East Side community. In December 1993, the HRA
granted MHC tentative developer designation for a 180-day period. Additional six-month
extensions were approved by the HRA Board in June 1994 and January 1995.
Project Description
MHC proposes to restore the Gillette building into a 22,000 square foot facility for its
Minnesota K-12 Teachers Institute and for its administrative offices. The garden level would
house 28 sleeping rooms, a lounge, and maintenance and supply rooms. The main floor would
contain the kitchen, dining and meeting rooms, library, auditorium and offices. MHC, which is
currently leasing office space in downtown Saint Paul, employs 14 people. Please see attached
site plan.
A$12 miilion grant from the StaYe of Minnesota, which will provide a significant portion of the
project financing, requires that the City of Saint Paul own the facility and lease it to MFiC. This
grant is discussed in greater detail below.
Park Land Excbange. In addition to the Gillette Hospital west wing, MIiC would lease about
60,000 square feet of park land directly east of the Gillette site to accommodate pazldng and
future expansion needs. To facilitate this use oF park land for MHC, the HRA would convey
approximately the same amount of HRA land which lies northwest of the Phalen Shores/Gillette
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site for the park land in question. The Saint Paul Parks and Recreation Commission approved `
the land exchange for the MHC project in 1994.
Transaction/Credit Information
Minnesota Humanities Commission is a Minnesota non-profit coiporation whose Executive
Director is Cheryl Dickson. To the best of staff's �owledge, MHC has not received City/HRA
loans in the past.
Project Financing. Proposed uses and sources of funds for the MFiC project are as follows:
Uses of Funds:
Construction Costs
Furnishings and Telephone
Financing Costs
Appraisal and Environmental Audit
Architectural
Construction Management
Fund Raising
Legal, Title, Insurance
Ciry Permit and Zoning Fees
Other Soft Costs '
Total Uses
$1,760,0��
288,500
91,550
9,650
105,600
50,000
48,000
19,000
26,210
101.490
$2,500,000
Sources of Funds:
State of Minnesota Grant (approved 1994)
CIB Grant (approved 1994)
Bank Loan (St. Anthony Park Bank)
City Vacant Building Loan
City Commercial Rehabilitation Loan
Equiry
Total Sources
$1,200,000
133,476
550,000
100,000
170,000
346 524
$2,500,000
Includes such items as moving costs, temporary power, feasibility study, signage, copying,
bid advertising, and general development contingency.
Bank Loan. St. Anthony Park Bank (in participation with Western and other banks along with
the Minnesota Non-Profit Assistance Fund) has agreed to provide MHC with construction
financing of $12 million as well as a permanent loan of $550,000. The construcdon loan would
be repaid with State bond funds upon completion of the project. The permanent loan would be
amortized at an interest rate of 2 points over prime for a term of 15 years. The permanent loan
would be repaid through MHC operations and/or from capital contributions from MHC's
fundraising efforts.
CIB Grant. The CIB Crrant reflects the Hayden Heights I�brary sales proceeds, greviously
budgeted for demolifion of the Gillette building, which now would be granted to MHC for
renovation of the structure. The CIB Committee approved this grant on June 9, 1994.
State Grant. The 1994 Minnesota I.egisiature approved a grant to the City of Saint Paul in the
amount of $1.2 million. This is similar to the State grant approved for the Minnesota Children's
Museum. Under the terms of the State grant, the Gillette facility must be owned by the City of
Saint Paul. HRA would convey the property to the Ciry, which in turn will lease it to MI3C. A
lease similar to that of the Children's Museum is proposed. The term of the lease will be for 30
years with five ten-year renewal options. The lease rate will be $100 per year. Although the
State grant does not have to be repaid provided aIt the terms and conditions of the Grant
Agreement are met, the City cannot sell the fac�7iry unless it determines that it is no longer
usable or needed as an education center and teacher training institute and unless it has the
written consent of the State's Finance Commissioner. If it is sold, it must be sold at fair market
value with sales proceeds used first to redeem or defease any outstanding State General
Obligation Bonds (which were used to fund the grant) with any excess divided proportionately
among the public and private entities (including the State) which helped finance the projeck
Finally, the State would also require that if the City defaulted on certain terms and conditions of
the grant agteement it would be obligated to repay the grant in fiill (but without interest) during
the first ten years of the agreement and during years eleven through twenty repay the grant
based on a balance which declines by ten percent each year. The events of default aze such that
they are generally in the City's control and if the project is satisfactorIly serviced and monitored
on an annual basis, there is little likelihood that theze will be an event of default.
Commercial Vacant Buildine and Neiehborhood Commercial Rehabilitation Loan Prog�ams•
PED's credit wmmittee has provided a final commitment for a$100,0001oan from the
Commercial Vacant Building Program and a$270,000 from the Neighborhood Commercial
Rehabilitation Loan Program. The credit committee risk rated this financing request as a 3(on
a scale of 1 to �. Payment of principal and interest for both loans would be deferred for a
period of one year from closing. After the deferral period, the loans would be amortized over a
term of twenty (20) years at an umterest rate of two percent (2%) per annum for the
Commercial Rehabilitation Loan and one percent (1%) per annum for the Vacant Building
Loan. These loans would be secured by a leasehold mortgage subordinate to the bank's
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mortgage and the State's interest in the property through the State grant as well as a second lien
(behind the bank) on business assets and certain cash deposits (initially $75,000) held by the
bank. A waiver of the Neighborhood Commercial Rehabilitation Loan Program guidelines to
allow a loan amount greater than the maximum of $100,000 is required. Costs to rehabilitate
and restore an 3ilstoric structure are significant, therefore waiving the maximum loan amount is
jus�ed and consistent with ptevious HRA actions. On March 8, 1995, the HRA Board
approved a similar waiver for a$165,000 Commercial Rehabilitation Loan for the Victory
Parking, Inc./Sakura Restaurant project.
City Council Action. In order for the MHC project to move fonvard, the Saint Paul City
Council must approve certain actions in addition to the HRA Board approval requested here.
The City Council must accept the transfer of certain real estate from the HRA, establish an
education center and teacher training institute per the requirements of the State grant, approve
a lease to MHC, and accept the State grant funds. A copy of the proposed City Council
resolution is attached hereto and would be presented to the City Council for approval on 7une
21, 1995.
Budget Information
Budget information for the Commercial Vacant $uilding Loan Program (CDBG) (Account
number 100-37812-0583-61331) is as follows:
Budget as of 7une 1, 1995
Committed/Encumbered
Ava$able
MHC Request
Balance
$342,300
(120,000)
222,300
(100,000)
$122,300
Budget information for the Commercial Rehabilitation I,oan Program (CDBG) (Account
number 100-37812-0583-61101) is as follows:
Budget as of June 1, 1995
Committed/Encumbered
Available
MHC Request
Balance
$713,815
(268,000)
445,815
(170,000)
$285,815
In addition, the I3RA Board will need to approve a budget amendment-for the proposed
$133,476 CIB grant (Account number 456-36612-6922) to MHC.
Public Purpose
The project will result in the rehabilitation of a long vacant but historically significant building
whicli will contribute to the cultural vitality of the East Side community. A permanent facility
will enhance the MHC's ability to provide important seminars, iraining and development for
MinnesoYa's K-12 teachers. "
Neighborhood Review
Throughout the project development stages, MHC has actively sought and maintained contact
with the Payne-Phalen District 5 Planning Council, the Council's Gillette Task Force, the
Gitlette Aeritage Association, the East Side Arts Council, the residenYS of Phalen Shores located
immediately north of the Gillette west wing, and other neighborhood groups. MHC has
received support from all these groups. In addition, on January 17, 1995, the Gillette Task
Force recommended approval of the project as presented by ME3C.
Recommendation
Staff recommends approval of the foltowing:
1. Final designation of the Minnesota Humanities Commission as developer for the Gillette
Hospital west wing at 987 East Ivy Avenue.
2. Waiver of the Neighborhood Commercial Rehabilitation Loan Program guidelines,
consistent with previous HRA actions.
3. CIB Grant in the amount of $133,476 for the rehabilitation of the Gillette Hospital west
wing Building as approved by the CIB Committee on 7une 9, 1994.
4. Transfer of certain real property from the HRA to the City of Saint PauL
Mara O'Neill
Business and Development Division
266-6620
Sponsor. Commissioner Marie Grimm
�'s-��s
Sponsor:
RESOLUTION NO. 95-6/14-
RESOLUTION DESIGNATING MINNESOTA HUMAi�TITIES COMMISSION
AS FINAL DEVELOPER FOR THE GII.LETTE HOSPTTAL WEST WING SITE AT
987 EAST iVY, AI�TD APPROVING FINANCING AND OTFIER ACITVITIES
PAYNE-PHALEN DISTRICT 5
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WHEREAS, on 7une 14, 1995, the Board of Commissioners of the Housing and Redevelopment,
Authority of the City of Saint Paul, Minnesota (E3RA) will have considered a resolution
authorizing among other actions final developer designation to Minnesota Humanities
Commission for the Gillette Hospital west wing and transfer of certain real estate to the City of
Saint Paul and on 7une 21, 1995, the Council of the City of Saint Paul, Minnesota will consider a
related resolution authorizing among other actions the establishment of an education center and
teacher training institute and the lease of the Gillette Hospital west wing to the Minnesota
Humanities Commission; and
WHEREAS, in 1979, the City of Saint Paul acquired the Gillette Hospital site from the State of
Minnesota; and
WHEREAS, a portion of this total site has been developed for senior housing known as Phalen
Shores, leaving a large vacant parcel and the Gillette Hospital west wing availabie for
development; and
WHEREAS, this vacant parcel and the Gillette Hospital west wing are currenfly owned by the
Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA); and
WHEREAS, the Gillette Hospital west wing has been designated by the Saint Paul Heritage
Preservation Commission as a local heritage preservation site; and
WHEREAS, HRA has previously considered other proposals for the redevelopment of the
Gillette Hospital west wing; and
WHEREAS, IvLinnesota Humanities Commission, a Minnesota non-profit corporation, has
submitted a proposal to renovate the Gillette Hospital west wing into a 22,000 square foot
facility for its education center and teacher training institute and related activities that provide,
but are not limited to, new models for teachers; and
WHEREAS, the Payne-Phalen District Five Planning Council, the Council's Gillette Task Force,
the Gillette Aeritage Association, the East Side Arts Council, residents of Phalen Shores, and
other neighborhood groups have reviewed the Minnesota Humanities Commission proposal for
the reuse of the Gillette Hospital west wing; and
WF3EREAS, on 7anuary 17, 1995 the Payne-Phalen District Five Planning Council's Gillette
Task Force recommended approval of the project proposed by the Minnesota Humanities
Commission; and
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WHEREAS, in 1994 the Saint Paul Parks Commission, per Section 13.01.1 of the City Charter,
approved the eschange of park ]and measuring about 60,000 square feet for a wmparably sized
parcel of HRA land to provide for current parking and future expansion needs of the Minnesota
Humanities Commission; and
WHEREAS, on December 13, 1993 the HRA Board of Commissioners designated Minnesota
Humanities Commission as tentative deveioper for the Gillette Hospital west wing site for a
period of 180 days and on 7une 8, 1994 and 7anuary 25, 1995, the HRA Board extended this
tentative developer designation for additional 180-day periods based on positive progress and
actions made by the Minnesota Humanifies Commission; and
WHEREAS, the Mianesota Humanities Commission has applied for a$100,QOQ loan from the
Citg's Vacant $uilding Laan Program and a$170,000 loan from the Neighborhood Commercial
Rehabilitation Loan Program; and
WHEREAS, the $170,000 Neighborhood Commercial Rehabilitation I.oan requires a waiver of
Program guidelines because it exceeds the $100,0001oan limii established in the Program
guide3ines and said waiver is consistent with previous actions by the HRA; and
WI3EREAS, on 7une 9, 1994, the CIB Committee approved a CIB grant for the renovation of
the Gillette Hospital west wing by Minnesota Hnmanities Commission; and
WHEREAS, the project will result in the rehabilitation of a long vacant but historically
significant building which will contn'bute to the cultural vitality of the East Side community; and
WHEREAS, the 1994 Minnesota Legislature authorized the issuance of bonds in the amount of
$1,200,000 for the renovation of the Gillette West Wing building for use by the Minnesota
Humanities Commission to operate its education center and teacher training institute; and
WHEREAS, a requirement of the State bond funds is that the facility be owned by the City of
Saint Paul; and
WI�REAS, St. Anthony Park Bank has a�eed to provide construction financing in the amount
of $1.2 million to MHC as well as a$550,000 permanent loan; and
WHEREAS, the Minnesota Humanities Commission has expended appro�mately $130,000 to
date out of its own funds toward project costs; and
WHEREAS, the Minnesota Humanities Commission has completed extensive community review
and all the necessary documentation to proceed to final developer desigiation.
NOW, THEREFORE, BE TT RESOLVED by the Board of Commissioners of the Housing and
RedevelopmenY Authority of the City of Saint Paul as follows:
1. Final developer designation for the Minnesota Humanities Commission is hereby
approved for the HRA parcel known as the Gillette Hospital west wing site at 987 East
Ivy.
2. A waiver is granted of the Neighborhood Commercial Rehabi7itation Program Guidelines
for the purpose of maldng a loan of $170,000 from the Neighborhood Commercial
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