Excused care. Coleman toast here. Commissioner Kim is excused maker here. And Commissioner Yang is excused, therefore present and 3 absence which are excused. Item number one is approval of the minutes. My and 26 dash 2 approval of DECEMBER 2025, a jury meeting minutes. A commotion from council PRESIDENT Maker to approve the meeting minutes. Is there any discussion? Seeing none all favor say aye oppose. 4 in favor. 0 post minutes are approved. Item number 2 for discussion as rsolution r yes. 26 dash 32 resolution authorizing the issuance and sale conduit, multifamily housing revenue bonds and approving the execution of related documents. 200 Wilkins Street Joseph's Point at Landing Project District, 9
war. 2. All right. I'll turn this over to director McMahon to give us an update on this item. Thank Chair commissioners. This is a technical action related to update about structure for the doses point projects located at 200 Vulcan Street. Just this point is an acquisition and preservation of 90 affordable housing units. The project has been presented to the tree board at the end of AUGUST. And on SEPTEMBER 10th, you acted to approve the issuance of up to 13 million and kind revenue bonds. And 1.6 million in city get financing Schafer Richardson. The developer was working with but had to switch gears because of the government shutdown. And as a result change their van structure, just how the bonds are sold and purchased. So this request again as a
technical change approve that new van documents because of the updated van structure. And there's no additional funding. That's great. Appreciate that I will take a motion from council present maker to prove this item. Is there discussion? Seeing none all in favor say Aye. Aye. All those oppose. 5 in Favor. 0 Post resolution is adopted. And number 3 is the staff report Sr 26 dash, one introduction to 6.52 Sherborne Avenue Long extension request. we hve a presentation for Hannah Chong on this item. In time. A second here will get the presentation of on the screen. Kind him. Chair this commission. This on. I'm here to present. Loan extension requests for the 6.52. Sherborne Development. So just
quick project overview, this is this product is a rehabilitation and of a vacant building located at 6.52 Sherman Avenue District 7 Ward, one, the developer Model cities. 100% of the units will be affordable at 30% of am. I and this is units will be rented out for 5 years and they converted to ownership ownership thereafter. And there's a total of 6 units this is a unit next. There's 1, 1, bedroom. 3 or 3 two-bedroom to four-bedroom units. So again, this request is to extend the maturity date of
a spending plan to clone from December 31st. 2025 to JUNE 30th 2026. 0, this is not a request for additional funding is to just extend So quick background. The a jury acquired 6, 50 62 Sherborne as well as 6.48. Sherburne in MARCH of 2018, an rfp was issued in SEPTEMBER 2020 and the Chevron collective was selected as a tentative developer and MAY of 2021. Based on their anti displacement, focus rental to ownership proposal. The collective is made up of Frog Town Neighborhood Association, Hope Community Bank and model cities, all ultimately model cities became the sole developer in partnership with
Rondo Community Land. Trust. And hope community are not a party to any of the city or a jury legal financing. Documents, but they are still leading the resident engagement, education and planning for that committee ownership structure with future residents. So financing closed on. MAY 2024. Construction did not start until AUGUST 2024. Because of permitting issues, which is main driver for this request today. So just a little bit of a model cities, they are community-based nonprofit whose mission is to promote. Social and economic prosperity, opportunities for families. Ad they most recently developed that Brown still lost on University Avenue and then Rondo Community Land Trusts is a nonprofit base, affordable housing community, Land trust
operating Saint Paul and a - county chance to provide affordable homeownership and then to oportunities too. Lowand moderate-income households. So the project structure quite complicated. I'll try my best explain it the land itself was conveyed to Rhonda Community Land Trust while Model City as a developer leases the land and they own the building improvements. So initially. The units will these 2 qualifying residents for 5 years. And in the 6th year. The ownership of the property will be transition to a community ownership model such as a land trust or residential operative. And once all the units or transition to ownership, the between Rondo Community Land Trust and mostly cities will
be terminated. Property will remain and community land trusts and the sales price must be affordable to families at 30% of am. I. Residents of the building will have a part in designing what that community land trust and cooperate. Looks like. That project is I believe one of the first of its kind in that that a jury has undertaken. So it required flexible financing in order to make that a reality, which means suffered. Or forgivable loan terms at 0 to low interest. So this is the current financing and see the lenders are Ramsey County, the Saint Paul hra and the city of Saint Paul. So the loan in question today is the spending plan to loan in an amount of $386,279? It's in the second len position, 0% interest and the
maturity date. As was DECEMBER 31st. 2025. So this loan was originated to be forgiven him to be flexible if 3 of the conditions were met by the maturity date. So all units have to be leased to extremely low income tenants, which is defined as a 30%. Am I? A jobs report submitted to the hra and a certificate of occupancy submitted today so because of the late construction start all cities, the developer is requesting attorney. Day extension by 6 months. So they have time to fulfill these loan conditions so that the loan can be forgiven as it was designed to be. The project is anticipated to be completed by this quarter and have all units stuff by changing. And questions. Any questions from commissioners. It's thank you. Chair tells vice chair goes.
Want to say thank you for all the time that you took with 3 theme of the commissioners everything. My office in advance I'm really excited to see this. A tip housing project to completion. I know it's been so many trance being transformative in doing something different as want to. So just Eckel and emphasize of how this is like a first of its kind. But it's also my commitment that it's not the last right. I think the city and the county in the state can continue this level of model of community development. So as want to say, thank you for all the hands in that went into it and I support this item as well. Great. That's awesome. The other questions from my
colleagues. Perfect. Well, thank you. Hannah will have item before us for action next week. Item number 4 is the staff report 26 dash 2 introduction to the inspiring communities project at 5.16, Brunson Street District 5 or 2. Come up, Joel, most off to give a presentation on the If a local. Thank you. Thank you. Chair Joe Sutton. Thank you. Commissioner in acre for sponsoring this item. That will be before and an upcoming meeting. This is in that introduction to and action that will be before you regarding additional funding for proposed project at 5.16, Francis Street. Under the inspiring communities program. Umbrella. I'm Yousafzai work and the Department of Planning and Economic Development and
Principle Project manager. I'm here to provide an overview of the request and the hra has previously authorized 1 million, 145,000. $59. Gross subsidy the developer is requesting an additional 87,003, 1, 3, I'll show you those numbers in just a minute. But I just wanted to set the stage of what they ask will be. First just a brief orientation to the project location. 5.60, Brownson Street. Is in the southern part of Island neighborhood. This isn't war 2 and the pain fail planning district 5. Zooming in that the line at the northeast Corner from Centre Street Pitt Street. This and 11,325 square-foot
lot point to 6 acres. It has 115 feet of frontage along from the sun and 98 feet of frontage along pet it. There many interesting corks in the Island neighborhood. One of the reasons why I love the neighborhood, some much one of those interesting Quirk says pet it Platted Street. That's only 20 feet wide. The h or this vacant lot was ofered as part of inspiring communities programs. 7 rfp. In JUNE of 2024. By resolution by resolution ph 24 dash, 1, 4, 4, The hra board authorize the sale of te property. To the developer, Amani Construction and development. And also authorized to gross development gap subsidy of the number and mentioned earlier, 1 million, one, 45. 0, 5, 9,
Money, construction and development as a local women and bipoc on for-profit residential developer and builder with over 10 years experience and affordable and market rate residential. And Emani proposes to build 4 town houses for ownership. Each town house containing 3 bedrooms, 2 and a half baths of approximately 1600 square feet. And a 2 car This is proposed to be it to be built all under one I'll show you a couple inches of it. Construction and development has committed restricting these the sales of these to honor buyers at household median household income of 80% area median income or below. Just a quick review of some
property history. The hra acquired this property in This was part of a number of acquisitions that the hra made primarily with the funding source called Neighborhood Stabilization Program, a federal funding source. This was one of alarger transaction purchase from Fannie Mae. There was a single-family house there that was vacant due to foreclosure. It was in a condition that determined to be so dilapidated that we felt the best route was to demolish and eventually rebuild on this property. The House was demolished in 1990, excuse me in 2011 the hra to date has spent around $80,000, including the acquisition and the demolition and some
holding costs. Just a quick slide of. I found of the home that had been on the north end of the lot. Faith on run since Pete Side. And then a few slides containing some images of the. Proposed townhouse development. Here are 2 facade images. The top the top to the left. There is the frontage along Bronson and you can see this is for side by side, two-storey townhouses. Fronting on Bronson with to Carver to car tucked under garages, accessed from the East. Just a quick look site plan, you'll see the building will be sited along the west side of the property. Fronting Bronson with driveway access coming from, put at the self. And I'm just going to go to zoom into a typical floor plan
here. Each of the units will have a garage kitchen, living room and half on the first level. That's on the left side of screen. And 3 bedrooms and 2 full bathrooms upstairs. Since the h arrays Twenty-twenty for approval. The developer encountered encountered unexpected challenges that arose through the site plan review process. The lot size crossed the threshold to require storm water management. This required site redesign and the addition of engineered stormwater retention infrastructure. And so on this slide, you'll see on the right in Green is the development budget presented to the hra in 2024. Resulting in the approval of the 1.1, 4, 5, 0, 5, 9 gross subsidy. The total development project cost has
increased 87,000, $313. And yu can see that new tdc. In the left column and blue and the increases can be seen in the hard construction costs and soft costs, but reflex additional engineering and architectural design fees. The slide is a quick refresher on how the inspiring communities program. Structures. The provision of development gap. The hra finances, the cost of the purchase of the land. And that financing along with the development cap is provided to the developer in the form of a forgivable loan. That carries no interest and is forgiven upon successful completion of the project. And in the case of 5.60, from Sun, the development cap will be
funded in part by an award from Minnesota Housing Finance Agency that's contained within the inspiring communities. Dollars that we're working with. In adition to the development cap, a charity also provides affordability gap assistance to inspiring communities. Buyers. There's no request to change here. You'll see that up to $40,000 will be provided to each the for buyers of which over half of that is funded. Also buying a word from Minnesota Housing Fnance Agency. And then just a summary of. The 3rd request that will be before you reconfirm authorization enter into this development agreement with the money, construction and development. And authorize grossed development kept contribution.
In the amount of 1 million to 30 to 3.72, which is an increase of 87,003, 1, 3, over what was previously authorized. And I'm happy to take any questions. Now are in between now and then action. He questions because from Spurs and Lakers. Thanks, chair, recent. Thanks so much for update. And just to be clear, that's a project I strongly support, especially excited about the fact that it will be kind of unusual form of. And for us for its for ownership. Tech that we see often. I think that kind of missing middle housing is really important. And I just want to highlight the fact that this is another example where regulation and process has caused cars to go again for affordable housing project. I think there's. There's an importance and the processes that we have and it
also cuts. Knowing the fact that this was to decide interview stormwater management, the as helpful context as we consider this request just to make sure there are we ready to go with this project at this point? Is it when do anticipate construction beginning? And is there a possibility that there could be further delay for their cost increases? Chair Justin commissioner in aThanks for pointing out the challenges associated with projects like this. And yes, this project is ready to go upon approval of the additional subsidy can rush. Closing on the property sale execution of development agreement and spring construction Thank you, commissioner, a cure for the for that question. I tink it's very, very important information. Any other questions for my fellow
commissioners? Well, thank you was from south. And I think I so your name correctly reports. The apologies for that. Thank you for your presentation for sharing that information. I guess that is the end of our agenda today. And so with nothing else to come before us,