Working with us through our technical difficulties. We're going to call them, you know, thankful housing, redevelopment authority to Commissioner Boeing Commissioner Joe's here. Commissioner can hear Commission an acre hear commissioner provides here. Commissioner Yang here, Commissioner Johnson here. 7 present that absent. Director Could you read the absentee item? Number one, this resolution, 25, dash, 7, 3, 4, resolution approving the list. Cat Fund Master Participation Agreement Amendment. Citywide. And I'm going to go on into the summary of that chair and commissioners. This is an item. You received a presentation on last week's meeting and it's back today for your action. Staff recommends approval of Thank you, Director Newton for clarification for folks. There
were a couple of tweaks in the - agreement amendment that we were able to reference last last week. We did have a staff report on the item. Are there any questions or anything as a continuation before we get into the book? All right, seeing none. I'll take a motion from Commissioner Yang to approve all tose in favor. Say Aye, All the posts. 7 favorite. Yeah. 7 in favor. And then a post motion passes. The resolution is adopted. All right. Go on to item number 2 resolution, 25 dash 7.36. Recommending the authorization and approval of the purchase of $150,000 participation. Interest in the List Cat Fund for the acquisition of 9 68 paying District 5.8, chair Johnson and commissioners is another item. You received a presentation on it. Last week's meeting and it's back
today for your action. And staff recommends approval of the item. Thank you. Director Newton. And I will see if there's any questions a the time being otherwise. I'm super support of the excited to see this project move forward and to see black press returned to the east side. I'll take a motion again from Commissioner Ian to approve all those in favor. All posts. 7 in favor. None opposed. The motion passes resolution is adopted. Item. Number resolution, 25 dash 7.33. Resolution endorsing propose changes to the Minnesota Minneapolis, Saint Paul housing finance Sports 2026. 2027 low-income housing tax credit, procedural manual and 2026. 2027 qualified allocation allocation. Plan. Citywide. Chair Johnson
commissioners. This is an item we received a presentation last week s as the other suspect today for your action and director, Tony, have made a presentation for you. Then incorporating all of your feedback. That was much appreciated. And staff recommends approval of the item. Everybody. Thank you so much fr that. To all the staff, especially from the planning economic development team, that effort on. Really kind going through this plan. We just want to say thank you to you and the work that you've been able to carry. And I appreciate the staff report on this as well as the individual Again, to commissioners just to get our feedback and questions. I'll take a motion from council, voted to approve any discussion. All those in favor. All the posts. 7 in favor. None opposed. The motion passes resolution
is adopted. The next one is under suspension. We have an item under suspension today. I believe have to make a motion to suspend the rules. At this time. The CHAIRMAN Of the motion to suspend the rules, all those in favor. Aye all opposed. 7 in favor and that oppose rules are suspended. The item that will bring it under suspension is a formal request from the commission to write a letter of support of the housing redevelopment Authority to vocalize our support for the. For Ramsey County to be able to explore the opportunity to have economic development. Added and the flexibility for their tax revenues. This was presented to us a couple weeks ago. If you remember by the county where they came in and presented pretty likely of there plans to go to the session this year to the state
legislature to basically advocate for this change to Bear Saint Paul in a the Ramsey County housing and Redevelopment Authority. We have a letter drafted in front of you that was given to us. Well, so as on the side for those that are here, it's also an item that's currently at the Legistar still be up and ready for people to look at. But we moving forward. But this would be an action to formalize that. And that is what we're bringing forward today. Are there any questions for myself or for staff? Thank you, too. Kelly to director noon and 2, Melanie Johnson, my legislative aide for once again, be miracle workers getting this put together. We do appreciate that being able to be brought forward to this body. I just want to make sure you do that when we're making a letter that it's doing so in a formal process. And so want to be open about the intentions of sending that
letter as well. So he's getting it from a leak on codified in this body. So there are no other questions. I'll take a going to have a resolution before it. Yes. What does that send? It's our yes, 25 dash 808. Yes. Is that a question Commissioner letter of support to request to adopt Ramsey County, a jry to include economic development, authority functions, state and local government. And be busy Memphis this bill. Yes, commissioner just opportunities and gratitude, treasure Johnson for sort navigating keeping o top of some of the conversations happening with the county has one of our strongest partners and economic development. So
just a few credit for to you chair for your work and also kind of rallying the council around this together. So looking forward to continuing to be supportive, but also and partnership from county as they flee. Come of the additional dollars for economic development for the region. And just income. Commissioner Billie App just for your minus as well. We. Also we'll have to formally make an action later If this were to pass in the state legislature that would in or out. The letter makes an important note about that intentionally too ensure that while we're supporting their efforts to ask the state legislature for this expansion that we have not formally take an action that expensive. So it intentionally tries to allow us to be able to make that decision as a bdy without saying that we're actually going to one way have
input on it. So I just want to make that no space that we do have to make that action. And if it passes legislature, something similar will be back for formal prior to the JULY first deadline. The behalf. Commissioner Johnson also want to host shooter Seaman ship on this. I remember having a chance to hear from John, particularly around this issue. I think that is fair for them to also have the flexibility use their dollars going into economic development. I appreciate you know, in a letter highlighting that this is not creating a new tax authority and this is not increasing property taxes. He's making sure the pool that we already have or we already have can be invested, particularly in small
businesses. Quick question. I was just curious, is this for this session for introducing a bill for next session? Correct? So they're actively that that support and change the session. They've had meetings on it as well. But they're still gathering support from local municipalities within Manatee County as we speak. Up until this point, there was not a like a formal letter. Anything from. But we'll be adding t that and joining other some of the other cities, some of which who have chosen to opt some of them have chosen to make a formal resolution support, others have not. And then for some that are just simply vocalized support for them to be ale pass the state legislature for that change. Will see no further questions.
I will take a motion from commissioner really to approve all of the favorite. Post. 7 in favor oppose the resolution is adopted. We take all hands on deck and this office a whole level and thank you so much for being able to step quickly to get us little chaotic, but we got through it. Love it. Item number 5 is a staff report. sr 25 Dash 80 introduction to a subordination of the injury 2 new financing and modification of the loan terms for the ahs tc limited liability partnership regarding the Sibley Park and simply Court Rehabilitation
Project located at 2, 1, 1, e 7 street and 4.84 Temperance District, 17 war, 2. Ready. So we are now at the point representation. We have our staff reports. I headed over to director noon. I frantic coming up so thank you. Chair Johnson Commissioners, principal project manager Murray French Hens you with an introductory presentation on this item will be coming back to you for action and a future meeting. Handed over to rain. Good afternoon to Johnson commission. I'm here to the second to talk to both the park in civil court. Capitalization in the head, patient project and that request is to allow for subordination of a $5,000. A
cherry long and new, a long As background, the park is 114. Unit building located at 2 11, 7 street ease. It opened in 2002 and on the first floor. There's 3 commercial tenants, including the Better 10 Fest signs. Her lecture. You can't growing. And there's 2,885 square feet vacant. And there's a total of 8,085 square feet of vacant space on the first floor. Then the simply court is across the street is a building with 100. And 22 units. These are well, actually 80% affordable. And then the civil courts project has that there's so many more that will be occupying 1533 square feet for the first 4 starting as of JUNE. 1st. So these are 20 over 20 year old buildings and so substantial
rehabilitation is needed to preserve the 236 affordable units in this building and they'll affordable for an additional 30 years. And as background, you probably remember this poject because in JUNE of 2024, we cherry commissioners approved the city of Mounds view to issue conduit revenue bonds on behalf of this project. In it was 45 million dollars in bonds. And the closing has been. Delayed until after the jury subordination Egypt, a subordination of their loans was aproved for this refinancing. This is a map that shows simply park and to 7 street east. And then across the street is simply court building. This is in the northeast qadrant of downtown Saint Paul and just west could Com Inc. So the existing project is owned by simply
Park in Civil Court, limited partnerships, which are entities of or back affordable housing services. They purchased the project Sherman Associates and in 2019 sure associates or if they originally developed this project. And then upon closing a new entity will be formed and both projects will be merged into one refinance and one rehabilitation project. And then I saw one and then the partnership entity will age. Boy, a just simply tc limited liability, limited partnership. So they are going to the ones that would be taking subordinate this are $500,000 loan. And the commitment by the new entity is to make annual payments to the a jury of $15,000 for 15 years. Currently the $500,000 loan is deferred and upon maturity. Which is year 17,
2042. So with those $15,000 payments, 15 years your remaining balance of $275,000, that will due in year 17. And then the h m Hfa is also getting is going to be subordinate their loans and they'll be getting payments of $60,000 a year for 15 years. The mh, if a has a total of 2.1 million dollars of loans that they'll be subordinate on this project. So with the subordination, I should just mention will be in the same position, which is he'll be this primary lender lawns and then the h or It's here where the that whole project cost is 88.8 million. And 24.4 million true rehabilitation. So they'll be substantial rehabilitation to these units about $100,000 per unit. A little over that. And
then it's this project is also going to deepen the affordability levels because right now. 60% of the units have rents that are lmited to 115% of am. I 20% of the units are limited to 50%. Am I and 20% of the units are market rate under the new recapitalization find issuance the all the projects all of the units will be affordable. With an average of 60%. I but range in rents are 30%. Am I up to 80%? Am I? And then the rents will be restricted for 30 years. An additional 30 years. So the rehabilitation project will include the comprehensive rehabilitation of the building Exteriors and - in ca interior common areas, interior to the department's new mechanical systems and then improvements to the exterior spaces and landscaping. This I a chart
of affordable units and the sizes. You can see simply court has 14 efficiencies. 44 One-bedrooms, 52 bedrooms, 14, 3 bedrooms and 20% the units or 30% am I 60%. And I and then 21% 80%. simply park has 20 efficiencies. 39 one-bedrooms. 45 2 bedrooms. 10, 3 bedrooms for 114 units total. And if you look down at the vry bottom, you can see that between the 2 projects 11% or 30%? And I-10 1% 50%. And I. And 60% are at 60%. And I and 19 alright, 80% I? So those will be the new rents that will be in place. The sources and uses you can see that primary is 23.6 million.
Then there's the existing image. If a loan that will be subordinated. We've subordinated. The hra. Next, how so long? That's a pass at this loan was originally passed it to the hra from the Metropolitan Council. They're syndication proceeds of about 25 million from the low income housing tax credits. So it will be a seller lawn. A 9.9 million approximately. And then general partner loan of 15.4 million. On the count interest earnings of 2.6 different developer fee of 4.5 million. And then there's rate lock we fund the seller loan interest of 2.4 million and then in in income of 2.5 for the total projects proximate Lee. 88.9
million. So the substantial portion of that on the uses side is the purchase price of 40 Million. Rehabilitation is 24.4 mllion. Approximately and financing costs 12.9 million professional fees of 2 point. contingency developer fee of 5 Million. And reserves. So that's that's the capital staff for this project. I should mention that Jay Ryan Hurd, who is the PRESIDENT Of quarterback affordable housing solution is here today in case or any questions. Along another representative. So I can take questions. Commissioner provide scheme and Thank you. Chair Johnson just wanna know really appreciate the presentation
and just want to know. It's always important to maintain a lot of these 2, 3, bedroom units. I'm very excited to see these preserved for another very long length of time. I would also note the the increase and affordability are dropping. And my is also going to see just because even the market rate projects I've worked with in my word before. Typically those on their own can fall below 100%. Am I? And so knowing that we're going from one 15 down to a tee at the max is just really good I just absolutely love seeing the 2, 3, bedroom at 3 50%. Am I having those large family sporting units are just really, really every one of them is so critical that we maintain and so happy to see those move forward. Tank you. Commissioner commissioner Thanks. MADAM This French
at Confused as to who selling and who's Okay. It's so the or back. Affordable Housing Services currently is in a partnership, owns te partnership. They're essentially selling it to themselves. But they're creating a new entity. And I think the reason that's being done is in term because of the bond issuance. You know, they have to create a new new legal entity. Okay. So they're selling it to themselves. Yeah. And why do they need refinancing? Because they need to bring All the funds that are needed to do that. We have rehabilitation. We're talking about $100,000. Per unit for 236 units. So they're bringing in and there it through the issuance of the 4% conduit revenue bonds on this. They're
bringing in about 25 million for the low income housing tax credits to the project. Okay. So the sale is and sometimes we see these projects where the seller or buyer is requiring on condition of purchase that. We support aid alone or something else happened in this case. Ordination would have to happen anyway. The fact that there selling to themselves in creating a new subsidiary of themselves is just a byproduct of having to do. The refinancing to support the work. Is that right yet? And then did we I I agree with MR. Progress. Key Ken chair and I'm glad to see the deeper affordability. 30 years at this point. It sort of the minimum that we look forward and it's in these projects and making accommodations like what we're talking about. Did we have any conversation about? A like a year term of income restriction? I don't I don't recall
that. We did. Guess I should mention that. Age Was sort of in the lead on some of these negotiations. They have the 2.1 million insubordinate financing. And then you said that the folks are here who represents certainly didn't need to come up. But I I wanted put a face to name. I'd love follow up afterwards related we're not talking about the commercial properties in this particular. Proposal. But I seem that the commercial properties are. Are also owned by you you do the right people work. ready and I could commissioner hands off for question. Just had a couple questions. And it was really
just around. Could you just share a little bit more from a contact standpoint of justice like how we got to space being able to. Not necessarily always the action, but I guess just to get see come of the negotiations in place who shared image a kind of lead in some of What were they like? What were some of the negotiations tat kind of gotten to the point where you're bringing bringing this to us anst like to with percentages, those pieces like how does a building go from 115%? Am I too green to to nothing more than 80% am I just kind of what the supply behind the scenes on the Florida bill? Affordable levels. I think that's byproduct in part
because the violence. You know, they have the requirement that. You have you have if you do income averaging the overall. Average has to be at mind. And that allows for you to do. Units as low as 30% up to 80%. Am I? So I think it's a product of refinancing that they're able to do that. Chad Johnson, just to jump not not stuff and rebut often with these negotiations looking different funding various requirements requirements for affordability, them have requirements for the term of affordability. So as they're looking recapitalize or invest in a in a project. Whether or not an entity has been created or certain level of affordability has been met or a certain period of time. A
lot of that is driven by the funding source and the requirements. So not not to try to oversimplify it, but that's kind of a little bit of general background. Thank you. That's helpful context. I think to have I would be, I guess I know there's a PRESIDENT Of hears I'd love to hear a little bit more about the project, a publication p since it's about a 4th of the of the project. I'm just curious. Still like what is going into each unit and just kind of hearing a little bit more about sme of the plans for rehabilitation for those basis, for te relocation. The 24.4 million for rehabilitation t the The rehabilitation yet do you want to come without fans? We thank you for invitation. It did if just can state your name for me again? Sure. I'm Jay Ryan Hurd, I'm
PRESIDENT. Back for Housing Solutions. Awesome. Thank you. PRESIDENT Ray Hunt for being here. To answer your question on the 24 million dollars because we have it's mainly going to take care a thing to get details. Facades windows the facades. We're going get rid of the to it. We The weave was. really about Comey's sorry. Julia Felton because it's created a pigeon problem. Okay. So life aside work is going to take care of the pigeon problem. We're also going to do all the windows to help security, the building and then interior work is going to be kitchens, bathrooms, closets. Hvac work. It's rally it's really a head to toe. Rehabilitation and the majority of that money, really going to be tough aside and
leave some hvac. So that's where majority were kings. There's also going to be interior lighting on also energy-saving appliances and lighting. And what not? So that that's that's where the majority. Yeah. Thank you so much. PRESIDENT Rayner. I appreciate just kind of getting a little bit more contacts. I saw the for a couple of points on the site and the slide. And I was like, I didn't know the 24.0. $4 is really be And and so I just wanted to give an opportunity just to add some further context to that. So I do sincerely. Appreciate it. And it's good to, you know, to be position of property and deeper stoop affordability because we want to get 100% affordable and currently 2% for soon understand yes. And do any other commissioners have any questions for
PRESIDENT, right? Her brother or this printed well? Commissioner thanks So all of the current tenants be maintained in the property and what's the plan for? your location. So the other, it's 2, 2, things. We have a relocation plan either. We move into in newly-renovated unit within the building we have put them in a hotel. then after the renovations done, they'll all be staying in the. Correct. You know, we use a general contractor. We've done this for many years that an affordable housing general contractor, was probably 25 30 years of experience that are. And knows how to handle the sensitive situations. Minimum income means it's possible. I mean, there could be inconvenient because they sure try to minimize much as possible.
But I guess just a timeline as far as like. How how long are they going to be out? Probably. Especially with with with that that this approval we can close in JUNE. And we're thinking that an 18 month construction process and we have process because it just just the weather and to do the facade work you work. It just takes time. The meantime, do all interior work. Thank you so much present right hurt any further questions from commissioners? Well, thank yu so much for being here with us today and actually taking the time to come out and said that ever so exciting. A meeting and just kind of waiting for your item. We appreciate just being able to ask questions. We've had a few different times where some are either develop the
Property owners come out to just kind of add that context. I just think it's there's nothing like hearing from really appreciate you for sharing that. Thank you. Appreciate your time consideration. Yes, the problem. Overall, this is an item that will mostly come back to us next week for adoption. I prsonally just think that it's really great to see any opportunities that we have to just continue to preserve the portability in our city. So really looking forward coming back week. But I know I will. Kind of just be a saying if commissioners have any questions on any of the items, feel free to reach out either to myself. Director to French it. And not to commissioner. Nick, on this topic and shakers. Well, because how word so I move on. Then to the next item item number 6 is staff report Sr 25 dsh one. The staff report and maintenance agreements and decorations, a parking lot improvements and easements at
Skyline Tower located at 12. 47 Saint Anthony Avenue for one district, 13. Are pretty soon. I will be switching over a little bit heading over toward ahead affected Thank you. Chair Johnson Commissioners Project manager to Nelson dollars here with an introductory presentation on this item also be coming back to you for action at a future meeting and I'll hand it over him. Thank you. Director Newton had Johnson commissioners. Thanks for having me today. I'm here to talk about Skyline Tower, which is located in order word one. And so today they are requesting any new funds were merely looking at agreements that will support them in redoing their parking lot. And so just for a little bit of background on this property is originally
constructed in 1971. And is the property in Minnesota. It's 24 stories of 540 units. Think need the presentation fights will try to them. Voice activated to work and for you Well, manually. Yes. And says yeah. 500 for units. Most of those are reserved for Section 8 and then the remaining units are dedicated to households there in 60%, a median income or lower. And then there's also number of community amenities on say, like the means or services center and the playground. And there's also the midway Peace Park right over there. And it was
originally owned by some. No management. Thank Yeah, it was originally on base and management from its inception through 1999. But they're having some challenges with maintenance and management. And so that point they decided to sell and coming communities stepped in to acquire the building. And at that time, the traded support the acquisition of the site and that initial mortgage was satisfied in 2015 after the 15 year term. And then again in 2015, the trees supported the project was $750,000 and deferred Debt of Community Development Block Grant funds. And this was for you having the property after 3rd is a number of maintenance needs and safety issues. And so the actions that band on the property general. And so then a I mentioned, they're looking to redo their parking lot. It has not been
since initial construction. So it's 54 years old and needs, you know, to be used fuel and have some safety improvements for the residents as well. And so there are stormwater documents fom both the capital Region, Watershed District and then also the city ourselves is requesting one. And are just essentially saying that the owners of the building are responsible for maintaining and managing the storm water systems and that if anyone needed to step in to do maintenance on the hash than they would be charged back. And so our existing that would be subordinated to that foot. You know, overall like the actual that structure is not changing. And then the declaration of easements is needed because currently the
project is on 4 separate parcels. They just look at trying to consolidate them. But that didn't work out. So now the city is also requesting that they document that te existing pedestrian pathways and, you know, of course, people are just kind of moving about without humid. And so that we just want to formalize that those properties are connected. And that one just requires consent as a mortgage e but not And so. We basically just have to sign these because we're current lender on the property of mortgage and they have to seek. Can sense from their first mortgage or jail and then also second mortgage major Fay. And they've already signed these. So just orient ourselves a little bit square
shows where the building is and then just north of is where the parking lot is located. And then this is the current parking Leo just to point out a few things, there's like 2 entrances nurse Greg Street and the most Southern one has been a big safety issue with a lot of people just like speeding through and pedestrians. Not feeling safe. There's also not a designated staff parking the roundabout areas. super designated. And then this is what their goal is for improvements. And s as you can see that most entrance on their street street is closed so that it reduces some of the traffic. And then it also includes staff parking on western side of the lot. It connects the southern entryway to some pedestrian walkway so people can walk
around the building and get to their car safely. It has a more. Closed off unsafe residential drop-off area as well. Then there's walkways to Just to the main entrance to the parking lots that folks don't have to walk an actual street basically. And so, yeah, they for this in 2023 and they're hoping to get construction started very soon. Unfortunately, combine can be with us here today, but the team is meeting with side to finalize some permit stuff. And so, let me know if there any questions. Thank you so much us. And commissioner provides your Thanks to Johnson this. This will mark the first of sveral fun items that are technically inward one, but also very close where I work the day.
And I. I think it is my job officially to celebrate their removal of of a curb cut. Any time that mark, street improvement and I. All jokes aside, I walk and bike past year on the time. It's right near the best run and bike bridge. And there's a tremendous amount of kids on the site. Anytime I go by. There's a tremendous amount of kids at the city park that is northeast Kitty corner from here and just south of 94 is Concordia University in those students regularly. Travel north across their to go to the Concordia building. That vaguely recently now used for that universities as well. So AUGUST know that there's just so many neighbors living on this site, but so many other folks who are nearby. So I think this improvement even
though it's a do have a parking lot. And I can't obviously I'm not known to celebrate parking lot. I I do think this improvement is really significant and helpful. So appreciate presentation. Thank you. Commissioner provides que? Yeah, I think I always remind you to mention anything related to biking cuts Are there any questions? Commissioner, get few questions. I really appreciate the presentation. I'm just getting all to think about. The Skyline Towers had many friends elementary. Many spent a night of playdates. I'm here and I'm I'm happy to see over the course of my lifetime. The progress and improvements. I remember, you know, and it didn't have a community center and now it's a community center that's thriving tons of programs and young people there. Brand playground that
was mentioned earlier. And I do remember experience of driving and fill in the goals, a rocky mountains, you and building is is is heavily concentrated a lot of people. Thousands of people live here. So it is it does have a lot of traffic and does have a lot of of movement. So I do think it is very appropriate for us to be invested in whatever was necessary for them to have those improvements. And I guess my question, particularly what a little nerdy question and this out of curiosity, why is it for tax Parcells is that something that Herman face off of Grayson County or is that our own is that the city's regulated zone parcels. Can you explain a little bit more
about why it's divided into 4 parcels, even though it's like when building on there. Yeah, thank you. Can should Yes. There do. Headed for like to answer you know, I believe Ramsey County is the entity in charge that. The parcel process, but it is somewhat common for larger buildings to overlap on multiple parcels. So something like an easement would just formalize that the persons are basically connected. People can move freely between them. if you just clarify again, just be some look at the current requests of the 4 different, different points of it. But could you just in short share again, the jury like action. So we just going have the motion be to simply
too to sign just kind of wondering from the sun. But the actual action will be the next week. Yes, the chain Johnson. So the. It's basically just to agree to sign on to these 3 documents. The team's 2 stormwater ones and this city easements declaration consenting to it as a mortgage e and then the stormwater declarations would taking the above the remote and in the that lean But again, those do carried that with necessary. Okay. Thank you so much for that. I appreciate that. I was looking at it. I was like let me just also And Yes. Appreciate that. Any other commissioners within the questions about that? Okay. Well, thank you really know what's going to come back to us next week, but he's wearing if there's any further action outside of like, you know, imagine
they're like public works with the aside that will come before the commission the council. Sure, I'm not. I don't believe so. The public works. Director will be signing on to the city's storm. Water maintenance agreement. The pd lawyer discuss south of public works lawyer and you know, that makes no sense. And then but this is the only action of becoming for us because they have it fully financed. In part, they ready to go. Just wrapping up the permits. Nallan like I mentioned, meeting with the U.S. I right now check through the last thing so they should be ready to get started. Hopefully by Mid-JUNE. And they're hoping to wrap up before winter. Of course. Brady, thank you so much. Questions. I really think you
see As we head over to item number the meeting with the board of each will be something recess and bring this back up the side and back up at the city council meeting. So we'll have public hearing that the city council meeting but a related item and then we'll recess will reconvene And take this item up for that in order to be respect to the public hearing. So with that, we are recess.