think the housing and redevelopment Authority to order roll call. Belief Just. Brodsky here. Yang therefore present our chair genson. I am here and I know council PRESIDENT And council vice PRESIDENT Commissioners can and maker will be joining shortly. We all just left. The Minneapolis APRIL housing Finance Board. So their 5 present to excused absence current commissioner Cam. Item. Number one is a public hearing. Resolution public hearing. 25 Dash 1, 2, 0, Resolution approving and authorizing entering into a parking license agreement. State of Minnesota Department administration. For the Department of Economic Employment and
Economic Development, disability, determination, services for parking spaces in the lower tell parking ramp located at 3.16 Jackson Street District. 17 more too. raise so. We have a for the cure I guess I will ask the procedural standpoint. Simply call a public hearing in. See, that's okay. So so right this is a public hearing and if there's anyone who would like to speak on this item resolution 25, 1.20, now would be the time. And chair, I can give just a brief explanation of the like sure. Yes, we're going to recommend and then we'll come back to the public here. Okay. This is all this is a park in agreement with the related to state employees coming back
to the office, which is great news. It the only reason we need to have a public hearing is it's it's it's agreement related to a cherry property. So so just as the procedure required to have a public hearing for enter into an agreement around a tree and property. But staff recommends approval of them and we're happy to have state employees coming back to the office downtown. Oay. Thank you so much for that update direction. And once again, this is a public hearing and if you hear it all to year to get public comment. On this resolution, tat would be the time to get in my. I people running to the podium to seen that there are 9. I'll take a motion from council member who we are Commissioner Bowie carry. All those in favor. Folks.
5 in favor, 0 post. The resolution has adopted. The public hearing is closed, So we've heard up to Director Newton. Are any questions at on this item the for the clarifying from any of the commissioners? Okay, seeing none. I will take a motion to approve from Commissioner Jones. All those in favor. My neighbors are opposed. Resolution is adopted. Item. Number 2is the staff report. 25 Dash 1, 0, 0, Introduction to a request for host approval for bank qualify. The Cubans for the one 80 degrees. Thank project located at 1, 2, 8, 1, 1, 2, 9, one 13, 0, 1, 7th Street East district to Ward 6. I really thank you so I know that both Commissioner gang and I had a chance for you to set him beforehand. Hope everyone has had a chance to review it. But this is the staff report that
will come for a preference and action for next week. So I headed over to director noon and I see this one coming to That's correct. Chair definite urge any Wolf is here with an introductory presentation, as you mentioned, on an item which will be. Coming to you for action. A future meeting turned over the Welcome as Chair Genson commissioners, thank Oen up my presentation here. We just at this They have ok? Thank So I'm Jenny with Pdm Nature, a dozen ministry there. And I'm here today to introduce an item. For approval next week at the city council and pertaining to host approval for the issuance of conduit revenue bonds for a facility owned by and operated by 180
degrees known as Brittany's Place. And it's on East 7th Street at Johnson Parkway. Dan, Far PRESIDENT And ceo of 10180 degrees is as well and and can come up if there's any questions about the organization. For starters, I wanted to provide a quick overview refresh of kind of a revenue bonds. So first of all, a bond is an obligation and a promise to make a payment of principal and interest conduit revenue. Bonds are special, limited obligations of a governmental issue or they are not secured by any taxing powers and are payable solely from the revenue of the conduit. Far. The conduit for secures alone or funds through a loan or bond underwriter. Ad kind of revenue bonds utilize to provide tax exempt interest
rates for the bar, thereby reducing their interest payments on the debt. A conduit Parra cannot access tax exempt financing without a governmental issue or this must have jurisdiction over the area for which the project is located or they have to receive host approval from an entity that dots. For projects located in Saint Paul Pate Ray, the city and the Port Authority are all qualifying conduit issuers as well as Ramsey County in the state of Minnesota. So absent a qualifying issuer Post-approval would need to be granted with a public hearing before the kind of with bond issuance could occur. Otherwise the fire would have to access taxable conventional loans for their project. 180 degrees is a nonprofit entity
that has been in existence for over 50 years and provide shelter for abused and trafficked youth transitional living programs, community re-entry and safe harbor. They have extensive experience in providing safe space for youth and adults and most of their funding is through donations and government grants. They operate Brittany's Place, which is located in 3 buildings on 7th Street. And that is an emergency shelter, new shelter and provides for transitional living. They also operate facilities in Saint Cloud, Minneapolis, Chanhassen and Rochester. They are requesting that te tree provide a boost to prove or the city provide false approval so that they can access what's called pink qualified tax exempt conduit revenue bonds and they would use the proceeds from those bonds to refinance a taxable
loan. That originated for renovations at Bernie's Place. So that is the project that's being rfinance. That project is in Saint Paul. And so Saint Paul needs to prot, provide full for those funds to be issued. The city of down by Rochester would be the issue or the bonds. And the principal amount is about 850,000 will be capped at that amount. They will also be issuing bonds for a larger project in the Rochester area as well as refinancing a taxable loan for the facility, a facility in Minneapolis and additionally was pro asked to provide host approval. And Dan has said that he was just at Minneapolis yesterday and they were holding their hearing next week somewhere to ours. I did list prior instances of when we've done Post-approval just to kind of reset the stage on on when these have come before you in the past we also can be on the other side of this, for we've done join Issuances for Children's
Hospital or other large health care. There's been facilities in other cities that have had to give host approval to us to issue those funds because portion of the proceeds are used in most other cities. So next Wednesday on JUNE 18th, the city Council will consider a resolution that will grant host approval if approved. The project is set to close in JULY. The a tree does receive a closing of a quarter of one percent of the amount of the bonds issued for the Saint Paul project. That is our standard closing fee for a nonprofit transaction. We are not the issue or the van til so we would not collect any long term ongoing fees. We also would $1500 fee for city attorneys. And then we did collect a 5,000 application fee. For compliance since the
construction has already been completed. 180 degrees will be required to file their affirmative action plan with the city. So that will be a condition before they can close. So we'll be supporting an organization serving our vulnerable populations and as mentioned and far is here. If there's questions about the organization. If any commissioners have any questions offer. Is he a couple commissioner maker and then commissioner, thanks, MADAM Chair, and thanks so much as well for the refresher and just also by way of refresher. Can you remind us why? The city of Saint Paul would an issue that qualified Barnes. Sure. Chair Johnson Commissioner Naik or so. Thank all 5 bonds are special bonds that can only be for it and ensure that doesn't do issue more than 10 million dollars in a calendar year. And so we we do not as matter of
practice issue, been qualified. Bonds. And I'll just say that that is a portion of this. But the other, even if they weren't being qualified. The city of Yoda is is doing like a 5.8 million dollar project. And it just makes sense for the kind of the larger issue to kind of leave the financing. And have the other 2 smaller pieces, especially since our peace and Minneapolis piece is a refinancing. It just makes sense that that this would be the process, even if it wasn't qualified. But these are being qualified, which we do not. As a matter, of question commissioner believe the Fed up for and thank us for what I'm also
know. Thank you for asking question because that's what I was with her well. I'm just so can refresh around just like the process of the transaction? Because it sounds like there's there's a decision. There's 2 things. There's issuing of the bonds and he's also the host seeing proving to be the host of the bonds. Can you just break like what like? How those 2 things are different and if there's any case scenarios where the city who actually host the Bucs also are issuing them. To Johnson. Commissioner Bowie. So the post approval is done through you know, a public hearing and a resolution adopted by that. Government. The closing done
after all, the approvals are in place by the conduit by the governmental issue. Air. So if you are the issuer and you have jurisdiction, you would not also need host approval. So so you would not have to have have a list approval. And b, that is sure the does that make a little Yes, go Commissioner, thank you. And also so it sounded like for this project, which I first want say on record. I am a huge champion of Brittany's Place, especially. Knowing you Brittany Lewis, the Mize murdered and know that her legacy in the community has stepped up to make sure that young people are trapped in te system and now ready. You know, making
sure that we sorry, just getting all slow motion now because I actually went to high school with Britney. So but I think as approaching this, I want to, you know, ensure that we are keeping these facilities open and in an act of. But I'm currently just wondering for this type financing. It's for renovation. Can you share wise it this type like financing is being requested, say no. City has like created lawn, you know, packages before and wise, like this unique, kind of avenue by like, proper appropriate for for this organization, chair Johnson commissioner. But I'm I And to come up as well. But I would just say that
nonprofits can access the conduit bonds and the tax exempt financing that not every entity can. And so that just allows them to have a lower cost to their project and be able to have those dollars go further on the need and can explain how they historically done. Thank Down far actually sent in between the 2 might see. Don't have to touch. I don't have to. Just fine. Thank Problem down far with 180 and thank you. Distinguish Council members and So first, I want recognize Brittany Clarity because next week is her birthday and the gets me kind of emotional as The name we use the namesake of Britney clarity to serve young women who have sexually exploited who are at risk of
exploitation. And it is an amazing program and we have some amazing leaders of who run the program here in Saint Paul. And so I want to be able to honor staff as well. So thank you for your support, but basically for a couple of years ago, we decided that we were going to expand the program and we did 2 things. One, we of rehab, the building to be able to to transitional living along shelter because we realize that a lot of our girls, young women needed a longer to get back on their feet. And that allowed us to serve more young women. And it has been a great success so much so that we added a 3rd facility, which is actually
just the house that we're and the girls that are really stable, going to college and have jobs are now able to move from shelter. 2 are on site. Transitional living to what we call just an off site transitional living, which is independent living actually. So when have the shelter, we talked with the bank at the time and really it was under we were doing fairly quickly. So that long for us is out about 7, 3, quarter percent. Just regular mortgage. And this will allow us to refinance these loans that we have out today of alified rate of 5%. And so in the end, that is saving 10's of thousands of dollars that we can put back into the service of our guests and our clients. So this allows us to be able
to do that through this mechanism, which we have before. And so I probably know too much about it. And I'm not a finance specialist. So probably not all the details. But the city of the lens us their authority. To do the Bonds, Stearns Bank of Saint Cloud. You can go get a public or private buyer. They do the financing at the lower interest rate as a partner of ours. And so then we come to the city of Saint Paul for that host approval it puts no rest on the city or on the local Te bonds become along between us and the bank. And then we are responsible for that. As time goes on. And I don't know if I answered your question. I kind of got lost in Britney clarity
lost train of thought for a second. That and that is how we really are using these bonds is really just a mechanism to save interest rates. And to save as we move forward. Thank you, Mr for him for you for being here today. But also, I think just kind of bringing light as well as adding context behind story as That flood. But just some of the work that you're doing and I. 180 degrees, but places actually right on the cusp of both o our words. And so it's in Ward 6, but it's like what jam like one of those things. That's right on the brink. But it first heard about 180 degrees at my time at the Saint Paul, Minnesota Phoenician where I love the domestic violence prevention portfolio at the foundation and so was able to come out actually visit the site. And so just really, truly, it's great to hear just kind of the
work continuing and I was going to ask if you want to come up to give a little bit more details of the project. But I think yu accomplished that and your update for us, too. And just kind of gave folks the rationale as to why this MAY be beneficial. But I think also gave us a really nice tie to Tim It's even company place in the first place so the any of the other commissioners have any questions for far for Wolf. So genuinely appreciate the time it took to come out here as well. I know I've had a chance to hear from Commissioner Yang into I'll take a motion commissioner going to approve item. Is there any further comments or commissioner and you have any comments that you wish us here this time. Okay. Seeing none. All those. there's there's no vote today, but we're ready for any myself
for that as well. We will do that next week. This going be having 10 year anniversary Britain's place we will make sure that folks get invited and that we're gonna have a breakfast. Here in Saint Paul, up to honor Brittany Clarity, her her mother still comes to the shelter. Puts together special of hole for the girls. So we'll make sure that everybody gets invited. And some of us for all of y'all see next week. The other at the next we'll see you back here next week because we have to do that. Yeah. I now, but please do send 4th. I'm sure that I speak on behalf of council. Want to say, please send the invitation. I I believe it
would have 30 point. I I think 30 next week. And so I'm like I feel like there I read about her turned 30 what she would have turned 30 last year. And so just kind of a space that we hold, you know, just her and her family still and and our hearts for sure. And that's where can so. But really appreciate being able to happened at the junction. So we'll see you next Item number 2, this is staff report. 25 Dash introduction to a jury pledge parking bond refinancing. Okay. So this item also action. No action this and back to thank you. Chair Johnson Jimmy Wolf is still here. This is it's all to today. With this introductory
presentation again, an item which you will be coming to you for action at a few too many. Turning religion. The you're Johnson commissioners. I'm here too. Introduce an for approval at next week's a tree meeting and they're also the action of the City Council. I just wanted to acknowledge who was present here from our team. This is a team process here. And I'm the one That's when the presentation but on staff. We have. It's your a Nicole Green and we have our parking manager grant full. We members of our fast. They're not here in the meeting, but Sarah Brown and and Neil Young guns. And then of course, esteem city Attorney's office has been very involved in this transaction. And then our outside consultant's include Jessica Cameron Mitchell with
Pfm as our municipal Advisor, Ben Johnson and Megan McCarthy with Ballard Spahr and then the kgun with Piper is the underwriters. So they're here. If there are any questions that come up as I go along at the go ahead and get started. And this is an introduction, like I said for something that will be With the tree in the city Council next week. There isn't a tree bard report and other materials that will published and can be shared after this discussion today. One cyclist life. So just a quick overview of parking fund and specifically the pledge parking. So the a tree on sparking facilities and we engage third-party operators to manage the day today oerations of the we
operate 7,062 parking spaces in downtown. And that is about a 3rd o of the supply of off street parking. We have issued pledged parking revenue bonds over the years with the prior bonds originally issued in 2017. We pledge net revenues of certain facilities to the prior bonds along with the first 3 million of the city's meter and fine revenue through a pledge agreement. The crrent principal balance of the prior bonds at the subject of the refinancing is 19 million, 920,000. I mean, we are proposing to issue bonds next month that will refinance the prior bonds and adjust the pledge parking facilities. This is a map showing the a jury on parking facilities. And though those with the blue labels are those that are pledged to the system. this will we question
commissioner. Thanks, MADAM A well. What do we use the what the revenue from the proceeds from the bond sales for? To Johnson Commission Acres. So in this case says a refinancing. So majority of the proceeds of the bonds will be used to pay off the old bonds. And then there are costs that we incur for the refinancing and we'll be paying for those costs. And then we also have to fund what's called a debt service reserve. So those are the 3 uses of of the So these bonds are being sold half to refinance and half old bonds. But I guess. For those bonds, we originally issued that on the parking facilities, Johnson Commission acre. So the original debt. So in 2017, that was a refinancing
as well. And then in 2010, it was a refinancing. And then before that date, we issued bonds to build the ramps. So this is the map with the facilities. And then here's just quick description of which. Which of the parking facilities are pledged. So we have the Robert Street ramp with 880 spaces, the lower town ramp with 910. Just as a reference, that was the deed agreement that you approved from. Earlier in this meeting, I was for that the lower town ramp Kellogg Underground ramp with 428 spaces, black, 19 ramp with 1044 Smith Avenue ramp with 603 and the farmers
market lot with 129 spaces and that is owned by the city. But it is the revenues net income from operation has pledged to the bonds. These pledge facilities include a total of 3,994 spaces, which is about 56% of our total inventory. So 56% of our facilities, our pledge to this financing. To a tree on 7, a ramp adjacent to the gallery Towers Medical building that we're going to remove that from the pledge. It is currently pledge to the prior bonds. That is part of the refinancing. We're going to remove that so that it can be positioned for the reuse of the gallery medical office building in whatever whatever manner is suitable for for
both a tray everyone involved. It's just if we if we pull it out and we don't have to worry about meeting covenants or anything for that regard. So and it's not really a very high robust contributor right now because of all vacancies around there. Commissioner thanks. MADAM Chair, is there a particular reason why we to certain parking facilities to the pledge versus others? I know in our presentation last week we talked about loss of Memphis. Particularly while performing. I notice it's not one of the ones that included proposing to include in the pledge. So I assume the goal is to make sure that those parking facilities will do well enough to cover the costs of the bond payments. But why
certain ones and that others, I guess Johnson Commission Acre. I'm so actually right now, Lawson does still have sme debt on from the original financing. But for that debt, yes, it could be pledged. But to your point, we're trying to size the facility, an ally with the debt service. So if we pledge Lawson at the time that it was no longer and covered with that. We would have way more capacity and that might be something that is done in the future. If we wanted to issue issue additional bonds and we could bring in the ramp at that time. So so we like to operate with, you know, kind of the most flexibility on how we how we operate the ramps and how pay for the debt. So they have
to be debt free to be touched. I mean, right now that the revenues from Lawson paying debt. So yes, it can't. It can't. Pay Ie. Pay for 2 And it's ok and thanks. I know that you have like, you know, removing the 70 ramp. But could you just clarify like, what is that actually? What does it mean something? Because as simple as just taking the for what is the process for removal ramp? Existing pledge Jhnson. It's just a matter of how we define in the offering document in all the van documents of what is pledged. And so very specific about what we're pledging and that facilities just removed. ok, thank you. Commissioner provides get it. You have your hand Okay. I'm sorry. I'm ok.
So if the refinancing proposal will reduce our annual debt service payment to align better with the pledged net. The pledge parking net operating income and remove the 7 a ramp as mentioned. We also be extending the final maturity. 10 years to 2045. Additionally, we will be selling taxable bonds pertaining to the Robert Street ramp and that will allow us to have long-term contracts, which in most cases, are not allowed for tax exempt bonds. So when we have a ramp that isn't covered with tax exempt bonds, we are prohibited from doing long-term agreements that set up a private payment over a long period of time, which is what a long-term contract with The current sizing for the
project. Principal Mon issued is 16 million, 230,000 and 795,000 would be the taxable series and the proceeds from the sale. And when this question was already asked and answered, but they will be used to refinance a prior Vaughn's deposit to a debt service Reserve fund and pay the cost of issuing the bonds. Yes, commissioner maker. funny as well asking the presentation. I have any questions for the precision of summit happening. So I sorry this month. So just just to be clear about te main reason for the refinancing, I assume, is primarily that we would get a better. On debt service now than we were before. That's production or annual debt service. Hey, man, I'm in our interest. Rates are rates favorable now. And then in addition, we happen to also then be able to remove the
seven-day ramthun. A lot of long-term contracts. Robert Street, but ice in the financial motivated motivation is is paramount or at least 6 worth doing all the rest of it. To Johnson Commission Acre not quite one of the post pandemic issues is our net operating income on our ramps is not what it used to be. Our debt service right now is is nearly 2.2 million and where only generating 1.9 in a good year. And we're projecting this year to only generate 1.5, 6. so. Other than trying to, you know, restructure the debt. One of the motivations is to bring down our annual cost of the debt so that we can ensure that were without,
you know, without having worry about dipping into fund balance and doing other things to try to find a way to cover cover the debt so the bonds are call of ul, which means that we have this opportunity to refinance them at this time, that that's not always the case. There's times when you just you can't access any type of refinancing. So this is an opportunity we wanted to take advantage of. Although the rates themselves are not. You know, I mean, they're not great. We are extending the maturity out 10 years and that will allow us to bring down the debt service down to one point 3 Million. So substantially reducing that so that we can comfortably cover the debt within our pledge facilities and still and still you build cash if we need to. So the total amount that will pay over time, this greater yes extension and the rates actually more favorable than
they coming. 17, 19, but we need to yes, See so, so the refinance or reduce annual debt service and I have no, it's too to talk about the numbers. I just did. The city will continue to pledge to 3 million of meter in fine revenue. Those that pledge is only to get the credit enhancement and to allow us to get the lowest barring cost. And that's through our rating with s and p. We recently reaffirmed with our rating on the 2017 bonds at an a plus. We expect to retain that rating, especially to the fact that we will be reducing our debt service considerably. This is the
sources and uses for closing and so just shows the principal amount of the 2 series of Ahn's coming in. And then a premium coming in. And then our prior funds that we have on hand. So those are restricted funds a tree currently has for the 2017 van social need to be used for the refinancing and then we'll be depositing 20 million to the escrow to defuse all bonds deposit to a new reserve and then pay the cost of issuance, which includes the underwriters discount as well. And then as mentioned earlier, the finance team is here with Piper Sandler. Feldspar Npf am. A tree resolution for consideration next week. There will will be to resolution for consideration that we won. That's a general resolution that I required for for any any bond that we do within our
pledge parking system and then what's called a for supplemental resolution, which will include the parameters. And the conditions for the actual sale of the 2025 series of Bonds. The parameters will be up to 19 million of maximum principal and not to exceed interest cost of 5 and a half percent. And then identify a pricing structure that will be leading the eventual pricing of the van. So the the action by the jury and the city council will allow the bonds to be issued, but we won't have be able understand what the cost is until we go through the pricing. And then a soy and got a little ahead of myself. The next steps I talked about the 2 resolutions and then the city council does have to approve the pledge agreement. So the continued pledge of the 3 million and they will also have execute
some other documents for the financing. Like a continuing disclosure agreement because we have to disclose the meter and fine revenue. And after that offer an offering docking will be distributed to the market. Will be able to price the bonds. We'll give notice to the prior bondholders that were redeeming the bonds and then we can close and shooting for JULY 9th. As the closing date. So if there's any questions for me or from anyone from the finance team or for Gary, for questions on the ramp. thank you as well. Appreciate kind of hearing this update as well and advance of actions that we would need to take next week. I saw Commissioner Pro-mask its hand. Yeah, thanks Jonathan and thanks helpful walk some of
commissioner makers questions like that information you share that entered my. I was curious about what current debt service was and what the new debt service would be. Obviously, it's never, you know, a thrilling, exciting thing to stretch out extra 10 years. But I think that dop in debt service is pretty significant. I win my head when I was trying to guess how much is being reduced. I want to guess the high side. I think it obviously makes sense the utility of it alone on annual basis is pretty significant. I'm also happy to see us being. Fairly creative, were thoughtful in terms of how we're managing these ramps in terms of the redevelopment. More broadly downtown, the fact that it could possibly be an asset. To spur more interest in the gallery towers or development. I think it's really savvy on our part. So I
really want thank the team and even I should note t even though new introduced everyone who worked on this, I I'm sure there have been times where more people for introduced as part of a process, but none are jumping to my mind and it shows us all of the angles that had to be covered spoken to in and how much work? I mean, the sheer amount of not just people but entities. You names that were involved I this. I can't even certain getting a headache imagining how bizarre and complex it must have been to work through this. So just want to name. But I especially really appreciate using those ramps as assets because as I've said before in previous meetings, I would love for us to be much, much, much less in the parking business It stresses me out.
It's like one of the biggest, you know, possible stranded assets we have is these huge, huge, expensive aging ramps. And so. I particularly want to name when we clearly are being strategic about when it can be moved in a private transaction. I just want to acknowledge that some say so, you know, outspoken, we complained about how perked up we are. So I really appreciate all all the staff time on this and the reduction debt service is just very, very significant. Like I. It's yeah, it's a very significant moves to really appreciate. kind of funny and where and often you do ask us for your questions at a time. The funny thing is honestly, as the presentation goals despair, it spurs questions and your friends get him task completely. And the fact that the there commissioner maker. And so I think just if there any other questions on this item, I would say over the
next week or so, I'm sure this will fit Canoun are able to answer just any of the technical in the weeds, things that sometimes can. Also coming up, distributing the site again, the actions that will be coming before us next week inferred next steps as well. There are certain things that you need from that will get that to you terms of when next next weeks agendas published So thank you MISS Wolf. Thank you for director for the update well. I don't see anything else on the agenda today. Good news for more Just came just get it. Because center for capital. I'm ok with giving us some time back between 2 because went back to back well. So with that, we are