Please. Here maker here. Yang here. Chair Johnson and Commissioners and Kim are excused. Approval of minutes. Item number one minutes. 25 Dash 50 approval of the NOVEMBER 2025 meeting Minutes. I will take a motion from council PRESIDENT Maker to approve the meeting. Minutes. Is there any discussion? All right. No discussion. All those in favor say Aye. Aye. Those opposed. 4 in favor. None opposed. The minutes are approved. Iem number one for discussion resolution 25 dash 19. 0, 8, Resolution authorizing short-term extensions to parking operation and management agreements collectively ramp agreements at one Robert Street municipal
ramp at 95 East, 7th Street. 2 lower town municipal ramp at 3.16 Jackson Street. 3 Lawson municipal ramp at 10 West 6th Street for 7 a ramp at 13 West Exchange Street 5 block 19 ramp at one. 45 east, 7th Street and 6 wtc ramp at 4.77 Cedar Street, Al in District, 17 war 2. And I'll turn it over to director McMahon for an explanation about the same. Chair commissioners, this item authorizes a charade to extend current contracts with a parking ramp management companies for one year. We are in the process of releasing an rfp for parking ramp operators next year. And the timing of such just that we need to extend our current contracts until that taken. Thank you to Trump any questions from my colleagues. All right. I'll take a motion
from the council PRESIDENT Maker to approve the any discussion. It all those in favor say Aye. Aye opposed post. 4 in favor. None opposed. The resolution is adopted. Public hearings. Item number 3 resolution, public hearing. 25 Dash 2, 8, 0, resolution approving and authorizing the sale inconvenience of a vacant lot at 77. Congress Street east to Iglesia Ni Cristo Church and Westside District 3 war. 2. All right. This item was presented to us previously in this is the public hearing for item. So if you are here to speak item number 3, this is public hearing and you can come forward and you'll have 2 minutes. So this is a public hearing. Is there anyone here to speak to this item? Seeing
no one. I'll take motion from Councilmember Coleman to close the whole public hearing and approved this item. All of those in favor say Aye, All those opposed. 4 in favor not oppose. The public hearing is closed and the resolution is adopted. Item number 4 resolution, public hearing 25 dash, 2, 7, 8, resolution approving and authorizing the conveyance of 3 parcels located in Chestnut Plaza and along the riverfront to the city of Saint Paul District, 9 war 2. All right. Again, this is another public hearing item for number 4. So if you're here to speak to this item, this is your public hearing him. Please come up. Seeing no one of commotion from council member Ying to close the public hearing and approved the all in favor say Aye, All those oppose. Foreign favored. None opposed. The public hearing is closed and the
resolution is adopted. Staff report item number 5, sr 25, dash, 2, 6, 8, introduction to names like property rw mwd Flood Mitigation Project and I'll turn it over to director McMahon for a presentation of this item. Thank you. And welcome for that. This is introduction linked to the Ames Lake Property Flood Mitigation Project. You can see here on property is in Ward 6. We've owned in maintain this property for nearly 30 years. And we originally acquired it to achieve components. The family and village small area plan that was adopted by the Saint Paul City Council in 1990, fact. And so it's over 2 acres and it is prone to flooding. You can see in teal is the property specifically. We're talking about. So here again, you can see
the parcel in red there. So the feeling village, small area plan shows that as the one that said after 90's shows it is open space surrounded by residential use is to the south. And the goal for the land was Tree store aims. Lake and also to preserve wetlands to create wetlands in low areas such as the person question here since they were unsuitable for development due to it being low lying and prevalent for flooding. Again here you can see separated by Magnolia sort of that northern and the southern part for Ames Lake here, there is identify the totals over 8 Lakers for wetland mitigation divided again by making Aliyah. So North Ingoglia did successfully result in the restoration of names like the watershed was heavily involved in that project. And so definitely ready with a
history of the area. The adoptive plans for the area and the environmental needs of the area. You can see here. The watershed proposal came forward. The watershed completed like Flood control, feasibility study just a few years ago in 2023. And as mentioned again, the area, low-lying is prone to flooding and even more s due to lack of storm water management on that, a juror, a parcel that's south of making Aliyah. The watershed is proposing proposing improvements to 3 different parcels. You can see him there. They west aims like burn the main base and options and then the south face and options. Mother and mitigation or what's being proposed in order to better prevent flooding to the adjacent properties. You can see here. As part of the proposal for that West Basin. That they are proposing to do a new Bern there to restore it with the
prayer event, vegetation to replace trees as needed and had the backflow preventer as an outlet pipe from that town. House pond. You can see adjacent their names like. Within the main base. And this is for that parcel south of magnolia that use on the earlier side. The watersheds proposing significant investment to improve water management stormwater management on that prcel. You can see listed some of the specifics of the technical things that they would be doing there. So as watershed continues or technical work to refine what would be needed on that parcel. You can see a few different options emerging here. Both are really similar and provide the same benefits to the surrounding neighborhood and that land immediately adjacent to the hra parcel. You can see here some more details of the
actions that the watershed is exploring. I really just wanted to note here that the public amenities and actually go back a slide to show some of those. I think the visuals MAY be a little easier than the list for him to see the public amenities for the surrounding neighborhood. And to me, it's a really great example of forward thinking work that we're doing and sustainability. That's exciting to see some sort of just going in and having a storm water pond or something that oftentimes just or sister isn't really usable and set the vacant space for the community. What happens is you have all those technical improvements. You have the stormwater management. You have the flood mitigation. What you're doing it in a way. That's an amenity for the community. You can see here the potential of having a path that goes around some benches for seating trees there for
shade, a space that people can really go. And, you know, explore if you've got some green space there for playing kids can run around that sort of thing as opposed to again what it is now, which just prone to flooding low-lying areas. That's essentially unusable. So that design again, there's some more of the details will continue to be refined as that technical work continues from the watershed. And the south facing here. You can see additional storm, water management iprove improvements that are proposed with again, native vegetation, restoration. So will the proposal for improvements to a Charlie and Trey Lance, always great to see. I think the site is especially exciting because it shows that this work will be entirely funded by the watershed. And I think that's something that is a wonderful
partnership w have. Really thankful to the watershed for that partnership and for the work that they're proposing on this land. They're doing a great job applying for grants and finding additional non a train on city resources to help fund this and really important work for the community and for sustainability goals. You can see here some of the timelines and some of the results. Again, noting that improvements for the property go beyond just taking care of the flooding and that risk mitigation on the property itself. But there's some really real and direct benefits for the adjacent properties either by reducing or removing entirely some of those properties from the floodplain and from the flood risks. So next week, what will be before you is this action and the tree action requested
as a resolution of support for this partnership and for moving this work forward and that would then get the watershed, the ability as they apply for grants to be able to, you know, tax resolution show yet we're working in partnership. We're all in support for moving this forward. And then in the future eventually would be back before you with the request of then convey the land to the city. So the water ship would come in. They would entirely fund all of the improvements and do the work. And that parcel just north actually was like restoration north of Magnolia. The intent has always been for that to be owned by the city and the same would be true of this parcel south of Magnolia as well done to the city and would be operated by next. Are there any questions on this? Thank Chair tells I don't have questions, but I do want to say thank you, Director McMahon to you and their staff for meeting with me beforehand.
Getting the familiar with the proposal here. I very pleased that the proposal and also very supportive of that and my time on the council here, I asked by a few developers about whether they can buy this property in develop on and what would we want to see developed? But it is very challenging with the flooding that happens and and so if this is a really great, a proposal provides a public amenity for our committee members and one of the asked that I that share with our staff, Israeli to make sure that when we are ready to have conversations engagement about what sort of you would want like, for example, can have a bench. Where would we have it like that would be engagement that I want to see happen. So that on the committee members can utilize just that many, the way that they would like to. And to also be really clear that this isn't going to
be a space. Where are we going to see a playground, for example, or just not transformation. And to just be really clear about what what is actually possible here and that that's something that the very committed to and also bringing the watershed district on on board for hopefully to do the engagement as well. So I appreciate you all in the communication you've been doing with the watershed district and again and very supportive of this. all any other comments from colleagues. All make it come about this. Thank you, director. Make man. I really appreciate the different options. Again, the amenities, the loop trail. At that the site because I think that any time we can take, you know, what is a a flood mitigation infrastructure? Let's maybe not very exciting but turned it into an amenity and
something that the community can enjoy and also learn more about, you know, more education and awareness around what you know, how these how how these plans work, I think is really exciting to me, especially as an engineer. I just spent some time yesterday at the storm water feature at Highland Bridge. Again, which has won many awards. And so I just appreciative all of our staff's work on this project and look forward to the next steps next week. Item number 6 staff report. 25 Dash 2, 6, 9, introduction to Grand Victorian redevelopment district. All Will come Johnny Woke to give a presentation on this item. Good afternoon. Vice cair Commissioners Jenny Wolf with pd and I will be presenting an introduction to the proposed grand in Victoria tipp District financing, request.
So here's a quick project overview. This isn't straight of rendering of the project, which includes 1, 6, story mixed use building with 90 rental apartments, 12,800 square feet of commercial space. And additionally, the project includes structured parking with 22 public parking spaces to benefit commercial space. By way of comparison. Here is are the current conditions for the 2 properties to be redeveloped it. 57 grand and 8.41 Grand Avenue. This is a map of the proposed tif District and project area which includes the 2 properties to be redeveloped. The developer and owner of the property is a 45 Grand llc repair. It is the managing member. Ari, is the PRESIDENT And founder of Afton Park Development and has 10 years of development
experience partnered with writer Walton to develop the Canton House project just east of development site on Brandon. Same offense. But the developer applied to the tree requesting tax increment financing, otherwise known as 2 f to advance the redevelopment. An iitial step in this process is to ensure that te statutory requirements to create a redevelopment district can be met. A tree retained the services of lhp. A professional engineering firm with decades of experience to complete an assessment of the property to ensure that the statutory flight test is met. Lhp confirmed the property meets the requirement with 3 substandard buildings exhibiting significant cold
efficiencies. A redevelopment plan was prepared by nature, a lining the goals and objectives to advance the proposed creation of the tif district, including the - removal of lighting conditions, increasing the housing supply in creating jobs for local residents to name a few. Additionally, the development objectives outlined in the redevelopment plan include public around energy efficiency and storm water, transportation and parking housing and employment. The proposed project to be constructed in the tif district is consistent with the development objects. NOVEMBER 14th. The same call Planning Commission reviewed trees proposed redevelopment plan and determine the redevelopment plan is
consistent with the 2040 comprehensive plan, including multiple land use policies as well as the development of new housing in our city. Now, I want to step back a bit here and cover broader tiff topics. Tiff is a locally approved financing tool authorized under state law. The state law enables redevelopment authorities municipalities across the state to capture increase local property taxes to advance development in their community. That would not otherwise occur. But for the assistance. The creation of a tiff district captures the increased value from the redevelopment and the value that was in place prior to the tif district is frozen before
it declines for there resulting in a study tax revenue. A the tip authorities and captures the increment. This illustration here is from the Minnesota Department of Revenue to demonstrate the benefit to the Texan jurisdictions. Incremental property taxes are used to finance or reimburse eligible costs related to te development, including administrative costs. The property owners within a tif district still pay their property taxes like any other property owner. The property taxes are divided as shown here. That's if authority captures the local taxes from the increased value with the taxes from the value in place prior still paid to the taxing jurisdictions. Additional 9 local property taxes are not captured in Those include market value based taxes levied by the school district. And state commercial taxes. The proposed district to be created is a redevelopment district. The maximum duration
is 26 total years. And this type of tif districts require certain conditions in place prior to the proposed redevelopment to meet the statutory requirements. As mentioned, this includes lighting conditions with substandard buildings. The tax increment must used to remedy the conditions that allowed the qualification of the tif district. So removal of those substandard buildings and completion of related site improvements and installation of public improvements. Additionally, tax increment MAY be fooled and spent outside the tif District foundry. But within the project area. However, qualifying affordable housing expenditures MAY occur anywhere within the city and are not limited to an Associated Project area. A tif district is located within a project area. The tif district includes the parcels that will
generate the tax increments and the project area is the area where expenditures must occur. As outlined in the redevelopment plan, the proposed grand in Victoria Project area is coterminous with the tif district. This will result in a maximum kuleana to invest in affordable housing anywhere within the city. Any proposed tif district must meet statutory requirements for its creation. Must demonstrate that the but for test has been met. Requiring a determination that the proposed project would not happen solely through private means within a reasonable timeframe. It must include to eligible expenditures consistent with the adopted just plan and associated budget, which budget will establish the maximum amount of tax and permits to be collected and
spent. It must also outlined limitations on expenditures outside the tipp District Foundry and those are referred to All of that, evolved leads to a tiff review process completed by pd staff. Which includes confirmation of the but for test, including engaging outside fiscal consultant. Evaluation of the potential taxable value resulting from the completion of the project, including guidance from Ramsey County assessor's office. And preparation of conservative just projections without any inflation with current tax rates. Pt staff for their evaluates. The proposed project to ensure it meets city. Any tree goals, including increasing housing production, living wage jobs and elimination of light. But if development agreement is then presented to the Tree
Board for approval, it will include the maximum amount of tax increment and specific requirements there for including tiff eligible expenditures of the development are financed on a pay as you go basis this means the developer pays up front all the cost and has reimbursed over time from the tax increment as they are collected. The developer bears the risk that they will b repaid for their upfront investment. And the development agreement includes language to evaluate the appropriateness of the financial assistance throughout the term of the agreement, resulting in a potential reduction in the tough assistance. There has been quite bit of conversations around how we use tif in Sint Paul. For example, there have been
claims tat city taxpayers are at risk for tiff district obligations. This is not true. Especially regarding this current request, which includes the proposed issuance of a pay as you go to funnel it. The collected and pledged tax increment are the sole revenue pledge to the tif district obligation. Nora is too, if a gift to a developer as previously mentioned, the developer must secure the funds necessary and complete the project. Including incurring the tif, eligible costs and then be reimbursed overtime for their original investment. The city benefits from the completed development, including the removal of light and increased housing options for residents. Now back to the grand in
Victoria Redevelopment district and plan. The tif plan and budget utilizes the following assumptions. The expected taxable completion. He's 26 and a half million. And that's compares to the recent 2025 assessed value of around 6 and a half million. This results in over 20 million of increased value. The first receipt of income. It will be delayed until pay 2028. Resulting in a final collection year of 20 53, which is the maximum. 26 total years. The tax increment collected by the Atraer estimated to total $363,076 annually beginning in taxpayer 2030. With lower amounts in the prior 2 years. While the project is constructed and stabilized. The total projected tax increment collected in the tif district is just over 9 million
dollars. The budget included in the 5th plan as shown on this slide. With the proposed pay as you no listed under cites improvement pep costs and other qualifying public improvements and interest. The budget also includes expenditures for a tree administration and construction of affordable housing of nearly 3 million dollars. Specific terms of fish. Thanks, chair before we go and we're going to get to. The analysis that the project requires 2.5, 6 million in debt financing and that icing as the number that's written. Well, it Yeah. Is that number that? Is that why This is 2.5, 6. So maybe when as we get to that
just to explain the difference between the total amount of increment and project costs here compared to what is the If the project vice chair Fisher, acre. So what is shown on the slide is the to plan budget and there's site improvement. Press prep class of 1 million, 2.88 and other qualifying public improvements of 1 million, 6, 6, 8, Those combined total, 2 million, 9.56. That is the amount of assistance that we would reimburse the that's the principal amount. And then the balance of the payment on the people know it would be under the interest expense. So got to just so happens that they find housing. Also, Got it. Thank And then as that, that construction affordable
housing, that's the pool them out also in the city because this development better to have Correct by Sergio's Commission acre. This is market rate housing and Pledge of Tax increment to the developer will on the set such that we maximize the amount we can pull some of and that's on a future slide. But yeah, and then when chair, thank Where did the up and the estimated sources of revenue where the interest in investment earnings come from? At Vice chair Commissioner Nick or so when we collect tax increment, we hold them with the city and the city. Invest all of our our funds and so interest is generated and those are tax increment, the interest that is collected generated from the tax increment as their help with the tree. Thank you. And so that's just a rough estimate. Tree board will consider the approval of a development agreement for the
project. Tree retain dollars as our municipal advisor to determine the need for the financial assistance proposed through the creation of a new tip District. Ehlers is a full-service independent financial advisory firm and works with multiple cities across the metro area. Analyzing requests for tiff assistance. Ehlers evaluated information provided by the developer, including their estimated cost to complete the development and the expected operating revenues and expenses. Concluded that the project requires 2 million, a 2 million, 956,000 dollar tip. No to attract adequate capital and debt financing to complete the project. The following slide includes a proposed sources and uses with a total development cost of. 44 million 605 thousand with sources, including the private
debt that if no developer equity and a Grant, that's this table here. Ellos review. Review signifies it. He runs to the but for test their recommendations are showing here. This review is based on current market conditions and concludes the proposed development is not feasible without the tif assistance of 2 million, 956,000. The Tip Development Agreement includes the following terms regarding the wish issuance of a tiff note for the project. The maximum principal amount of 2 million, 956,000 to be issued upon completion of the project. Pledging 8% of tax increment collected in the first year, which is paid 2028. And then stepping down 5% each year to 60% in the 6 year and then beyond. It'll stay up to 60%. The principal amount will be limited to the tip, eligible costs identified here, including the cost of
the public parking spaces. The proposed plan will authorize 35% of the tax increments to be expended outside the tif district. Enabling maximum maximum pulling for affordable housing. The agreement will include language to allow the a tree to confirm the but for test, which is commonly known as a look back. And compliance will be triggered, including prevailing wages for construction and living wage ordinance for the project operation as well as it to our city sustainable building ordinance. Let's first take question. Thank you, Just looking at the first full as well. So just to make sure I'm understanding of 85% of the tax income in its pledge for the first year, that means that the city will realize 15% of the new tax increment in the first year additional 5% every year going forward. That is correct. And
then 40% of the new income. It will be coming in distributed amongst all the jurisdictions starting in the 6th year. Vice Chair Jones Commission maker. Note The tree will collect 100%. What showing here is the amount that's pledged to the tif note. And then that means a jury retains the balance. And that's what we use for the pulling for affordable housing and for Got Thank you. So the city council in a tree board will consider resolutions in one week on DECEMBER 17th to authorize the following approval of the redevelopment plan and redevelopment Project area and redevelopment plan establishment of the redevelopment district and plan. Public hearing will be held prior to approval of
either resolution. They treat board resolution will include authorization. For execution of a tiff development agreement poviding the tax increment assistance has outlined to the developer for the project. The project construction is anticipated to commence in FEBRUARY complete in the summer of 27. I list here are outside for contact information, Carla and Stacy are both in attendance here. As repair its the developer. If there's any questions for him. Council PRESIDENT Thanks just I thank you so much as well. I don't have specific questions, but do think the developer is here. It would. Thanks in stemming from as we were just talking about. So all our efforts, the developer's going to come up just itself. Thank you. Vice chair and commissioners. It's pleasure
to here in this capacity today. Amari parents and the founder and PRESIDENT Of Afton Park Development. I think I qualify as about as local and neighborhood. The of a developer is you could be living the Summit University neighborhood of Saint Paul. Previously been fortunate to develop in our one of the participating developers and the continuous development. And it really is a privilege to be able to work on such an important site, not just in our neighborhood, but the city and the metro area overall. We started this process 6 months ago in JUNE of this past summer. As the financial realities of financing development construction crystallized for the specific project. We've gotten questions before, but why this wasn't a part of public discourse prior to that. The truth is, we're totally
focused on approvals and land use approvals and the title meant prior this summer when the financial realities crystallize, that's when we put forward or application. And we've been spending quite a bit of time as a city staff will attest making sure this is right. There have questions asked about how much we need this. And is it true that at an intersection as important and iconic in many ways has granted Victoria, why would an intersection like that need this kind of public support? The truth I that in today's economy just about every market rate project needs this kind of public support. It doesn't matter how good of an intersection of this, the best intersection just gets you to the table to be able to have this kind of conversation. That's how hard it is to assemble fnancing for new
developments today. I'll I'll share a statistic that just came across my desk in the last couple days that I think will help illustrate this point specific to the Minneapolis Saint Paul msa. We are rnked dead last of the top essays in the country in field Bility of market rte, multifamily housing and that counts both the inventory that exists in the vacancy rates which in our market are very low. The availability of new supply, many projects are in the pipeline under construction. We are at the end very, very last of the top 50 metros. And that shows you that we have no new supply. This is the reason is because it is this hard to develop in today's economy without the kind of assistance that redevelopment, if districts
can offer, even if it's at as important intersection is granted Torah. I also want to share that because many of us been fortunate to spend time in and around that intersection. It's not immediately apparent to you or to anyone why this site in particular is blighted or why something at Grand Victorian would count as blighted. So above and beyond the report that lhp did, which is the statutorily required analysis. I would invite anyone who's curious to come tour the inside of these buildings and you'll see with your own eyes why these buildings must be torn down. Why they cannot be reused and why they qualify as plate elements on the outside. Anyone can see just by standing up the sidewalk and then there's much more inside that help this pictures. I just want to extend the offer of anybody would like to come
see it. I'm happy to show you around. So I think that covers sort of why here and why now and why. This is a unique featuring function of today's economy in this particular site. A lot of the public benefits, including the polling for affordable have already been discussed. I just want to reiterate how much of a driving factor that was in our whole conceptualization of this site. Ability to not just provide needed new housing units, but also to provide a major improvement to the public realm at this corner. And at this intersection overall new commercial space, which includes a tenant that's coming back into the space, unable to re up for the next 10 to 20 years. They've been
in this location for a long time. But their spaces deteriorated like much of the rest of the physical infrastructure they're able to come back and were able to create 2 new spaces for 2 new tenants together with public parking, which which has been pretty significant issue at this intersection. Many of the criticisms that have been I know shared with you all and kind of circulated in the media have a lot to do with this project, not meeting, but for I tink based off of the information in front of you, hopefully you see it very clearly does meet the but for You hear coming from you. We don't have an ability to create this project without - this, but also this concept of a precedent set. And I just wanted to stay for the record. The 6 months that my team that
spent working with city staff should illustrate that there is no precedent set. Every project has to stand on its own merits, defended its on assumptions in its own time and place to make the case for why. But for applies to it and that. My project is done, that that doesn't mean that me or any other developer 6 months or 12 months from now in a location tat's perceived to be just as nice or a different spot would be able to just somehow as a give come in and say, well, they got me too. That's not how this works. Like based on my own experience in last 6 months, I can guarantee you that's not how this works. And I just want to state that for the record be able to address that concern as it continues to
circulate in the public discourse. Some I'm glad to take any questions. Really appreciate your time and attention to this matter. And thank you in advance. Thank you, MR. Parents for year. Any questions from commissioners? Well, this item is thank you for being spirits. This item again will be before a jury in the council at at council meeting nxt week will be convening the hre within the council meeting to take action at the time before we take action will be the public hearing for this item. Not today. There will be a public hearing next week. Yes, we have the developer come in and just introduce themselves and speak. But the public hearing on the next week. That is the last item on our agenda and with nothing else to come before us, we are adjourned at.