? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Were all called Just camp here maker here, aim here, chair Johnson. 6 in favor sorry, 6 present. >> One absent and commissioner boys excuse. And number one my and 26 21 approval of Jne 2026 meeting minutes. trust that everyone had a chance to view the to review them meeting minutes for June. >> Take a motion from by strict rules approve all those in favor. I all of us. >> 6 in favors or opposed. The minutes are approved. And number 2 staff report SR. 26 dash, 1, 3, 4 introduction to requested Tw V limited partnership alone Amendment district, 3 war, 2, you have
to staff reports used to get in front of us to come back for action on the 22nd. I'll hand it over to directly. Thank you, and lights in here to present this item. ? >> Hello, welcome to fund. Carol. Apologies. I Sprinted over here for I'm a little out of breath. But Johnson my name is when he walks in here. Part of the injured PG E's multifamily housing And today we are going to discuss the requested to give you the limited partnership alone and that. you law for a second because, you know, >> I can feel it beautiful pieces around the staff report. >> you know, water back in the Now the want to folks an opportunity to be able to catch their Appreciate it. No problem. Much. Definitely empathize having to go back and forward today between here and So you're listen, I don't the first that >> But thank you so much. Do I have >> my breath now? So >> So he a combination of 3 different come and gone free so that he stands for Tories and the goal which is on and 42 units located in District Westminster Place is 99 units located in District 5 and disability age is 48 units located in District 3. So back in 2006, these 3 projects work
and never in together because it is advantageous to. All the projects to be underwritten together at point in and as dollar where a lot of things change within the development. And over the last 20 years. And so at this point is unfortunately not advantageous for the 3 projects to be as one under Twe. I want a partnership. Tory being the largest was selected kind of go out on its own for funding. And it also had the biggest rehabilitation needs Tori has now secured all necessary. Funding is poceeding to a November 2026. financial close. And then the other projects, as you mght remember from a couple weeks ago, there is a reservation for a million dollars for that what how the implication for Westminster in this stat. And those applications are due tomorrow. So I think they are well on their way to having that piece of it. So just to geographically you place where we are, the the property, that's for If that is Westminster Place, the property that is for the south is this to village and then the property that is just north of the further is tracing the And the developers commandant over 55 years of experience as a nonprofit owner and developer they've on these properties since at least 2006, but a fairly a well-known entity, any for
housing space and this request is coming right because of what I mentioned before that Torre is proceeding too. Ad financial close for rehabilitation. And so their request is to essentially keep WVU limited partnership, but remove Tory as collateral from the original cdbg And the purpose this is that. This being done helps to decrease the cost and complexity of the financing as move towards close this were to happen a the same time as financial close. The lender would think about this deal as risky because it's essentially like 2 step process instead of a one-step process and at that point, there would cancellation of debt income fees as well. So it's really too decrease cost of compliance on the project in decrease the compliance requirements take a lot of time. And then also and we found out yesterday actually, that the HRA cdbg alone is actually in the first positions. So these slides are inaccurate, but it's actually even less risk for the HRA. And so you'll see It should actually show that the trees and leave position. Number one. So the original loan was $225,000 with interest. it's around $727,000. It was originally originated as a loss all other details about the loan modification or proposed to be the same beyond
moving toward Collateral. I see you can see even with us. The parish for Minnesota being in first position and has shown here the estimate of loan to value ratios around like 15.5% with HR a loan being in first position. It's 6.6, 5.6, 5. So even less risk to the HRA since we're in the first. The imposition. So there is sufficient collateral to. cover the Chinese risk terms of this loan in the event of default, even with Tory being potentially removed. And so staff recommendation is to approve request to modify the GWB. Limited partnership won't remove Tory. In that it will be We proposing that it will still the originated as So no change in that position. And then the next steps and the application for Minnesota housing is due tomorrow for the Wst service to projects. we are proceeding too. The anticipated November of 2026. Closing for Tory. So there will more more items before you to look forward Are there any questions? Commissioner? Thanks, my understanding is that taking out from the rest makes it easier for Tories. Closing to see which is a desirable. Does have any effect on the other twos financing? >> That's a great Chair Jones and Commissioner Nick or apologies find correct order. It actually
is. Well, so the cancellation of debt income fees will still apply for the West to service to projects was kind of like kicking the can down the road a little bit. So I think it's estimated that those fees are going to be like $200,000 right now. and the developer is not actually loan forgiveness because it counts as a committed source of funding for the Minnesota housing applications with actually beneficial for the project to keep the debt on Westminster invest this point in time. So >> and the properties, as I understand, are not interconnected directly for their operations. So really like this, is it changing really anything for their operations? it's really just like. Changing the place on paper, already exists? Does that answer your question? Yes, thank you. And then a follow-up. >> He said that the original principles 175,000, the balance of 727,000. It matures and 242. payments be made over time or when you say this is never going to back. So these are typically and Iran has in every 20 years or so is when housing development projects need to resubmitted rehabilitated. And so no, no, she's had been collected so
far. No one out of the principal or interest, I believe has been collected at this point. deferred know. Yes, okay. Good and so we are anticipating that the developer will request >> A forgiveness of the interest but they will as we are anticipating, they will likely keep the principle of them on their books. D that. front for good some of the more complex financing structures of the deal. But essentially. They are not paying because it's set up as a deferred loan. invented you at the like 20 years indication period either they assume the long or They request for it to for given or something. So kind of like at the inflection point. So which right now so we anticipate that they will request To get rid of the interest portion but still crry the principal balance. hey, any of it? Yes. So as long as they keep. The property for my people, the terms that they have been required to do, typically you those are typically paid back. Any other questions. >> see Thank you so much for kind of bringing on the information around this and it folks have questions they can reach out to lie to you. >> thank Thank you so much. And number 3 is staff reports 26 dash, 1, 3, 6, introduction to propose three-year lease with union Pacific Railroad up
our for exclusive use of a cherry property at 43 Water Street for its reconstruction of the Mississippi River Lift Bridge District, 3 war 2. All right. appreciate it. And get a chance to learn a little bit more about this. We own. >> A few different plots here. One of them isn't paved sun. Is that all over director Rick Man who will be leading in the presentation for it? Chair commissioners, thank you so much. Pitch in here. We've got folks that working hard to miss. appreciate Jindal and to and work on this and on are also available for follow-up and additional questions. This is just introduction. This is an item that would have action on the TWENTY-SECOND and our next feature, a meeting. So you can see outlined in red what we call 43 Water Street is actually 5 different parcels that collectively we just referred to as 43 Water Street is currently in a cherry on parking lot. Managed by Trans Park Incorporated. It is a gravel parking lot that has been sort of gavel and in that state for for quite a while down there. Union Pacific railroad is going to be doing work on Just adjacent Robert Street Railroad Bridge actually three-year project for that bridge work that they're going to be doing. And so they approach us to talk about using some of that
personal views that parcel to be able to have to help support that construction project and to really reduce the impact to the surrounding community and neighborhood from all of the construction and everything going on for that project. Again, that project will take 3 years and Braylon Marine traffic actually remain in service during that bridge. Construction. Interesting, Leigh, a lot of that construction equipment is brought in and use barge. So over the next 3 years, if you're interested or you have kids that are interested or not, a lot of folks really like watching that kind work and actually, it'll be fascinating to see the equipment come in on a barge in the barge kind of parked underneath and use that it's not atypical way. See construction in the city. So looks like watching. It will be an interesting one to watch for the next few years. Under the proposed lease terms. Yeah. Union Pacific can use a lot for construction trailer and employee parking. So like I said, not the equipment necessarily. The equipment coming in via barge. This would be a trailer, an employee parking during those 3 years of construction. This helps keep the employee parking out of the surrounding neighborhood. An area in
really minimize that disruption to the community. Additionally, Union Pacific will then be responsible for maintenance and security of the site during that time, which is an added benefit to that location. They would pay the HRA about 16. Not about it would pay the HRA $1600 and month in rent which will total $19,200 a year to the HRA noting that currently approximately the usual out that the tree receives in parking revenue is around 11,000. So again, we're getting around 11,000 annually now in parking revenue. This being a lease we would get from Union Pacific $19,200 a year. Also noting that were the parking lot to try and continue to operate as a parking lot moving into the future. It doesn't have an adequate stormwater system in place. Again, it is gravel. It is not paved. There would be significant work that would need to be done in order to continue to operate. This is a parking lot into the future. That's significant capital investment. The revenue is just simply don't support that. Can that level of investment to continue to use that as a parking operations? The West Side Flats Master plan identifies the space as future Parkland or for park operations. You know, previously, including for this year, actually, parks has
entered into an agreement with a jury to use a slot to support things like the Yacht Club Festival and other large events at Harriet Island and really support those large events and community festivals. So that encourages people in the neighborhood to have those opportunities to gather and to celebrate after the Union Pacific Le Sands, the intent would be to work with parks and transferring this property to the city for their use. But any future can Vance after the end of the three-year lease with Union Pacific would require additional feature a approvals at that point. And so it would be back before you if the landlord to be proposed to be conveyed to parks at that time. And then just knowning says August 15 August 5th year for that action date should be the 20 seconds the meeting. Not if parties that. there any questions happy to answer and happy to fall off? I do appreciate just getting kind of like a full run through event. I appreciate the added financial piece to it. I think really important to understand. >> You know what we have us many now versus what we stand to, you know, either gain or lose in any situation. So I do appreciate that additional insight as well. So yes, the 3rd Wednesday is coming up. So we will not meet Wednesday,
but we also will not meet on the 5th Wednesday as well. So just a reminder, the 22nd is our Cherry meeting for July and then we'll come back in August and quite a few things. As we hear from defense. >> So with that, we are