Housing & Redevelopment Authority - Regular Meeting

Here.

Absent. Item number one for discussion is resolution 26 dash four zero five, approving the commercial corridor program guidelines citywide. Alright.

I wanna first just take some time to just say huge thank you to all of the Planning and Economic Development staff and to Kelly and to John and City Attorney's Office for working with us on all of the next items that you'll see regarding amending the guidelines for several different programs. I just also want to thank commissioners as well for your work and for your conversation and for the discussion around these guidelines. I know that we have had many different versions in front of us, and we've had different conversations about what to include, what not to include. And I just want to say I truly appreciate that ability to be able to do that, because I do think that discussion is warranted, especially over programs that truly do impact the entire city. So up until the very last minute, just want to share that all of the work that has went into getting us to this point, I think, going to be rewarding as we go through a smooth transition.

So I am going to we had a staff report on this. We have had robust discussions. So if you will entertain me, I will be able to move motions to the versions that I know are up for discussion. So the first, we'll start with this one, and we're actually gonna move version two, and I'll entertain a motion from commissioner Kim to move version two that that is in front of you as well. And just for clarity, because I know a lot of things have been discussed, this is the is keeping the index score as well as all the corridor inclusions.

The only change in this one is that it is changing the Rice Street Alliance host organization to the North End Neighborhood Organization. And so that is the difference here, but for folks that are watching on the versions and trying to make sure we are moving to version two. So I'll take that motion from Commissioner Kim. Any discussion?

Commissioner Yang. Thank you, Chair Johnson. I first want to share that I am supportive of V2 version two. And I do echo everything that you shared from gratitude to the staff, to the commissioners at the table here, to our city attorneys for helping out with language as well. You all had done a really incredible job. And just wanted to uplift that. The information from our staff was really helpful. I I know you all mentioned that the uses for the vitality fund are different from the commercial corridor program. So it's really helpful just getting that distinguish and with that I am very comfortable with this version here. I also just really want to thank the council members who at the table here have really uplifted questions about how we can use our dollars here more equitably.

That is really important to do. And I remember seeing here at the table many times that it's so important for us to always start off the question or or start off the process and really conversations with equity rooted at it. That way when we get so far along in developing maybe like a program or figuring out what funding is used for, we don't have to figure out like how can we press the reset button or try to like, know, sort of like, I would say retrofit things. And so I would say that because this program, we've come so far in having conversations about how we want to utilize it and wanted to spread it across the city. I am supportive of it and just always want to welcome more conversations for us to figure out how we can continue using these dollars more equitably.

Thank you Commissioner Yang. Any further discussion on the proposed amendment? All right. I will just simply share with you all that in this discussion we had a lot of attitude about where we can make the best use of our dollars and Commissioner Yang, I appreciate your comments as well and I think just the conversation around whether or not to invest in downtown is one that I don't think is the conversation here. I know that we've used words like include downtown or exclude downtown.

And I think that there are multiple actions that will be taken today that actually shows that we do prioritize the downtown corridor. In this case, downtown corridor remained. And I think in this version, it's codified that way to invest across the city. I will share that it is an interest of ours to just continue to make sure that we can add not only to this fund, but to the impact that it holds. It's hard when you're having include or exclusion conversations citywide because everywhere in the city needs the investment right now, and especially around our businesses and especially around our corridors.

There isn't a corridor listed that most likely can't talk about the impact that they've had, especially over the last several months, but for sure for years now. This is the reason why we ultimately put this program in place in the first place why this body was really vocal in 2024 to get into the 2025 budget cycle. And so it's also the reason we added an additional $400,000 back to the investment for 2026 this year. And so I don't think it's ever a debate about whether or not we're including an area of our city that's so vital to the work that we do, but I do think that this version can accomplish the will of the body and that's what I'm most interested in as the chair. Commissioner Baker.

Thanks chair. That was a perfect mic drop so I'm really sorry to speak after But just wanted to say I agree. I appreciate the thoughtfulness we put into this. And also just to back up for a second and recognize this. I know we've done at this table before that while we've been talking about the specifics of the guidelines here for the last few weeks. The big picture of the headline is that we are for a second year in a row getting $1,400,000 out the door to our commercial corridor citywide. And it's a program that we tested last year. Tried and it was wildly successful in terms of those dollars moving out quickly and getting used for all kinds of wonderful things throughout our city. So I'm just really proud of us for doing it last year, committing to continue it this year and I'm excited to see all the great stuff we're going to see this year.

Thank you. So we'll do the motion to move a version two with those changes and the resolution will be adopted as amended. All those in favor? Aye. All opposed?

Seven in favor, zero opposed. Resolution is adopted as amended. Item number two is Resolution Res 20 six-four zero seven. Resolution amending

the down payment assistance program guidelines citywide. Once again, I'm very thankful for the robust conversation we had around this.

If you recall, last time we had this conversation was actually two weeks ago. And we talked a bit about renter inclusion and language ments and ways to do that. And I just want to say thank you to the housing team. Thank you to Rachel. Thank you to director Antagina and city attorney's office, counts commissioner Bui and commissioner Nacre for really just the robust conversation around this. Again, we will take a I'll entertain a motion from Commissioner Bui to move version two. Any discussion? Commissioner Bowie.

Thank you, Chair Johnson. I just want to also just echo the gratefulness for the collaboration. I know we had a lot of robust conversations of it and just wanted to ensure that this version two is an improved version that's rooted in inclusion and also historical accuracy. And just also want to just highlight the advocacy that came from community members who were direct descendants of Rondo and who have the lived experience and brought to the forefront how our existing program also although in the spirit of transparency and wanting to right the harms and the wrongdoings, we wanted to make sure everyone's included. So, I think this is a really instrumental change to actually include renters and stick to our values and making sure that what our how our programs are designed meets the moment and also is including everyone who's been impacted.

So thank you so much.

And you all should have the version in front of you. It was what I handed to you as well, but it is on Legisstar and it's attached in that regard. Director McMahon, is there anything further that you want to say about the version before we move to a final vote?

I'll note that you've received information previously from the department about it. I noticed some things about the process that it would take, etcetera, and timeline shifting,

and that we have folks

here to answer questions if you have any.

Thank you, Director McMahon. And I just wanted I just to invite and not to put you on the spot, but Director Antagna or Rachel, I'd love to just have you quickly talk about the three additional urban renewal project add ons for just briefly about like what that actually entails from the Western Reconstruction area, Central Village and the College of St. Paul just like why we the thought around including the urban renewal.

Thank you, Chair Johnson. And I might be staring at Christine over here, who is a vital The part of our research reason that these three specific sites were chosen in particular is because of research that went into them prior to this question being asked of like what might be some urban renewal sites to be focused on. So we had data about them already. So that I know the latest version of your guidelines do have them mapped out as well, so you can see the geographic placement.

Thank you. And I just want to say that we really appreciate that level of detail. I appreciated the versions, the graphics, the, you know, someone who's like a visual learner, but also like someone who likes to visualize what that actually entails. And also because it's such a significant part of our city, you know, I am also heavily invested in the East Side when it comes to just really, you in the neighborhoods. And so that graphic and just kind of the rationale behind it was really helpful to understand. Thank you. Any other discussion? Commissioner Bowie.

Thank you, Chair Johnson. I do want to reiterate to Director McMahon's comments particularly around the process. I fully anticipate to have a follow-up meeting and include Ronald Community Land Trust and who is the organization that does the verification mechanism. I just want to be really clear that we the city is not making those approvals in terms of the historical accuracy around whether someone was displaced on Rondeau Avenue and also with this guideline change we're include other sites that have been impacted by urban renewal. I also want to highlight one of the elders that we have met before, Elder Frank White who's a known historian.

He was instrumental in getting the permanent change for the Rondo Avenue Street. He also was here providing some insight to counsel around the historical accuracy around where Rondo actually existed prior to the construction of '94. So, he actually was someone who lived on 409 St. Anthony which is South St. Anthony that was ran parallel with Rondo Avenue.

So, because of his advocacy and his input, now St. Anthony is also going to be an avenue that's included in this inheritance fund. That is like I said instrumental because we want to just make sure that when we're talking about the displacement of historic Rondo, we're talking about the area not just only that street that had the homes and the businesses there.

Thank you. And I'm just kind of looking as well to Director McManus or anything that you want that you'll need to need to share as a follow-up or?

I would actually maybe turn to our housing staff about the inclusion of St. Anthony.

I apologize. I might need just one minute to, like, look at the map again and orient myself with that.

Okay. Yeah. I think that it might just be worth the follow-up for that. Commissioner Bouley, I do want to actually ensure that that is we have the latest information when it comes to that. I know for today, with the motion that has moved, especially with the pieces that are codified here, I do think it represents some of the renter based priorities that you had. And so moving forward with that, and then we will we'll make sure that we get that follow-up in the follow-up communication. Let's just clarify those things before Thank moving you, Rachel. I appreciate it. Commissioner Nacre.

Thanks, Chair. I I also want to thank staff, and I also want to thank Council Member Bui, Commissioner Bui for your leadership on this because I know that the issue of including renters was something that you would not lose sight of and something that's important to both of our communities and I'm grateful that we've been able to work together but that you in particular have continued to name it and we're getting it in the amendment that you're proposing today. I want to note that I don't want the perfect to be the enemy of the good. I want to move forward with this so that we can get the down payment assistance program open, get those dollars out the door. But I want to state for the record that we're not totally done at least with the concerns that I've raised related to the timing of the Westside Flats displacement.

Staff has a proposal for how to incorporate that second wave of displacement. That's not reflected in these guidelines today. But what I'm hoping is that staff when they come back in mid May to talk to us about the plan for accommodating renters can also, if not before, introduce or let us know the language that they would support that would expand the time frame on the West Side as well. So not doing that today, but don't want to lose sight of that either.

Understand. Yeah. I think that one of the things that we all are in alignment on is just that, yeah, to your point, we're not striving necessarily today for perfection perfection and and for everything to be incorporated, but we are making a step forward to, I think, do some of the language around including inclusion of renters that have been discussed now for for months under your leadership, Commissioner Bui. So thank you for for that and those conversations. And I will just call for a vote in that regard. I'm not seeing any further hands. All of those in favor? Aye. Aye. All opposed?

Seven in favor, zero opposed. Resolution is adopted as amended. Item number three, resolution 26 dash four zero nine, resolution approving updated guidelines for the HRA business assistance fund.

And this one doesn't have a version two. The edits that were made from our previous discussion were accepted and they're in the guidelines for the approval as is. And I'll take a motion from Commissioner Neeker to approve any discussion. Commissioner Neeker.

Thanks so much, Madam Chair. Really excited that we are adopting these guidelines today. Again, sort of high level $5,000,000 investment in Downtown St. Paul, 3,000,000 for conversions of underutilized office space, 2,000,000 for activating retail and specifically vacant storefronts. And I also agree with you chair. I'm really grateful that we spent the time to get the guidelines right because what we want to make sure is that the moment that we approve something at this table, it is ready to go. And I think the guidelines reflect values that we all hold here and get this really ready for ready for action as soon as we say yes today. So thanks to all my colleagues for your support.

Absolutely Commissioner. And I'm super excited about this investment and I know that this is a really big deal and people are watching all across the city because right now is the time to be investing in not only building our tax base, but investing in our downtown in order to do so. It struck me as just it was really mind boggling to see at the Ramsey County presentation that just shared about 49 of our downtown properties being exempt and how that's a unique situation to our county and to our city, but like truly something that something that I walked away being just like, wow, we really need to make sure that we're building the taxable base that we have downtown with the half that we have. And so I see Joe Spencer in the audience, so thank you so much for your continued partnership and advocacy as well. It's

going to

be all hands on deck. And so this is the first step of many, and I'm sure there'll be opportunities to learn from this first initial year of investment. But as we're continuing to build, I welcome the future discussions, especially as we head into 2027 and beyond on how to continue that investment. So appreciate your leadership as well on working with staff and appreciate Director Lloyd and the Planning and Economic Development team as well that have been working on just how our city is going to respond to the now. So seeing no other hands, going once, going twice, wonderful. All those in favor? Aye. All opposed?

Seven in favor? Zero opposed? The resolution is adopted. Item number four is the staff report SR26-fifty four, staff report on authorization of CDBG loan agreement by and between the City of St. Paul and JRDM Investments LLC for 202 Cesar Chavez Street District 3, Ward

2. Wonderful. So now that we've done the guideline changes, I'll be able to hand this over to Director McMahon and welcome Mr. Wolf.

Chair commissioners, this is an item that Nick Wolf will be able to give you information on today in the staff report and you will be voting on on your next HRA meeting for consideration. Welcome Mr. Wolf.

Thank you. Good afternoon commissioners. Nick Wolf, project manager in PED. Okay. So, again, we're here seeking authorization to enter into this $70,000 CDBG loan agreement for the acquisition of two zero two Cesar Chafiz.

I see some four points there and some some background regarding the project. This particular property was acquired from the appointed receiver that was assigned after the prior business, Papa Legba, which you can see pictured above, closed in the 2025 2025. I was working with Judy Lopez on a star grant for La Costa when she saw the space come up for sale and set up a meeting asking how we could be supportive of her expanding her business operations on the West Side. I then referred her directly to a loan officer at Latino Economic Development Center. This is a little background on the business itself.

Per her business plan, Lao Foscina's mission is to provide an inviting casual atmosphere for working class individuals, late shift employees, and neighbors seeking a fun and authentic bar experience. And again, I think with La Costa being located just two doors down, we'll allow both establishments to complement one another, while also serving slightly different audiences. Okay. Here's the budget. You can see a sources and uses table.

Judy contributed $25,000 to the project and is requesting an additional 70,000 here and funding to assist with the building with the purchase price of the building, which was $275,000. The project will create and maintain three full time jobs through year five, which is consistent with the HUD CDBG requirements. The loan itself, there's a little bit on the structure there. Monthly interest only payments for the first year will begin in May. This will ensure that Lyle Fosina is well capitalized in his first year and enable enable to cover all of the start up expenses.

Full P and I principal and interest monthly payments will begin in May 2027, and cash flow is projected to be sufficient for these annual loan payments. We'll be back next week as director McMahon mentioned. And that's about it.

Commissioner Nager.

Thank you

so much, Madam Chair, and thanks, Mr. Wolf. I'm very excited to see a new vibrant use go into the space. But I do want to ask, it was really discouraging when Papua Legua closed. That was obviously also a project that we had helped capitalize here at the HRA and I don't think it was open for a full two years, maybe a little bit over, but very short lived.

And so I guess I'm just wondering if you can speak to not necessarily the due diligence that we do before we decide on financing in general, but in particular when we've had a business that we have tried to support in this exact location that has not been successful. What kinds of additional scrutiny are we putting on? What kind of additional conditions are we factoring in before we decide to refinance another business in the same spot?

Yeah. I too was quite saddened to see Papa Liga close. You know, I don't think it's Commissioner Nacre, I don't think the space itself and its location necessarily, you know, contributed, you know, per se to ceasing operations. I I think conceptually, Papa Legba and again, I I didn't work on that deal and I'm I'm I I I've been there a number of times, but I'm not super familiar with it. You know, I think the concepts are are quite different.

I I think from a market audience, customer base perspective, just don't know candidly, very off the cuff speaking, maybe it was the best fit in that specific location where, you know, in this case, which which again I I think is quite unfortunate. I thought it was a really cool place and had some great live entertainment and the the decor, all of it. This, you know, being specifically built as as Judy, you know, directly describes it, Mexican dive bar. I I think I know prior to Papua Legba, there was a a similar bar up that operated in that space. And I and I think, you know, her success at La Costa, the, you know, the employee base she has, the customer base she has.

I again, I don't think that Lao Foscina will be competing with La Costa. I think it'll be kind of a complimentary customer base. As far as the scrutiny with some of the financing, I mean, you know, we did take this through resource committee, through credit committee. You know, her projections, I think given especially in year one that it's going to be interest only. I I I think we're pretty strong.

And and CDBG, in this case, made a lot of sense given that she was purchasing the building and she was gonna be doing these three hires for these particular roles kind of right upon opening. And if I'm going back to the table, I think oftentimes just based on experience, we see a lot of these bars and restaurants close because they're not well capitalized. And I think this funding, you know, with the additional $62,000 in working capital, including payroll and operating, I think will help her start on the right foot. So does that answer your question?

Yes, I appreciate it. Thank

you, Commissioner Eckert, and thank you, Manager Wolf, for that. I think overall explanation as well. It helps paint the picture for what we're trying to accomplish here and the difference between the two projects. Any other questions from any other commissioners? Well, thank you. This will come forward with above this will come forward next week. Mhmm. Thank you.

Yeah. Thank you, chair.

Item number five is step report 20 six-fifty one, step report on the authorization to designate Ruder Walton development LLC as a tentative developer of the Fox lot district three

board two. Wonderful. I'll hand it over to Director McMahon and also welcome Ms. Chong as well.

Thank you, Chair Commissioners. This is another one that you'll be receiving the information on today and will be acting on next week. It's one that I think is exciting in terms of an HRA owned property because it's one that folks have been hoping that the surrounding properties can move and piece it together. And so it feels like we're at that moment, which is great. I'll turn it over to Hannah Ton. Wonderful. Thank you.

Hello, Hannah.

Thank you. Good afternoon, Chair Johnson, Commissioners. My name is Hannah Tong. I've been here before. I'm project manager in PED.

And today, I'm here to present a tentative developer request for two parcels of HRA owned land. So developer, Reuter Walton, and they're seeking a tentative developer status to build 300 units of affordable housing on vacant HRA owned land located at approximately 137 To 149 Robert Street South in District 3, Ward 2. And this land is also known as the Fox Lot. So the Fox Lot is located right across the river along Robert Street South and it's located across from another HRA supported development called the Sole Apartments. The lot is comprised of is comprised of two parcels that is equal that equals approximately one acre of land.

And these parcels housed two buildings and was owned by Fox Chemicals. So Fox Chemicals use the site for mixing and packaging windshield wiper fluid, gasoline antifreeze, other chemicals. They also leased the the buildings to other companies to conduct mixing and packaging various household goods and garden chemicals. The HRA purchased the site in 1994 and demolished the two buildings in June 1997 due to their deteriorating conditions. So a quick overview about the developer.

Reuter Walton development is a Twin Cities based real estate development firm. They specialize in multi family housing, student housing, commercial properties. They've completed over 5,000 units in the last twenty years within 50 communities including the Morrow on University Avenue and that brought in 243 units of affordable housing to Saint Paul. So, Reuter Walton is proposing to combine the Fox Lot with adjacent property to construct the Livingston. Construction construction will include two buildings with a 150 units each.

The buildings will be five stories with surface and underground parking. The total square footage of the development will be 534,000 square feet and this includes 15,000 square feet of green space. The unit mix will be eighty one two bedrooms, a hundred fifty seven three bedrooms and sixty two four bedrooms. 10% of the units including some larger units will be affordable at 30% of area median income. The rest will be affordable at 60% of AMI.

And the estimated total development cost is 117,000,000. So you can see here, this is an aerial view of all the parcels that are combined to make the Livingston. The Fox Lot is a two on the corner here that's bounded by Fair Fairfield Avenue and Robert Street South. The other parcels are owned by another entity that Reuter Walton has entered into a purchase agreement with. And this is a conceptual rendering of the site.

You can see the green space in the middle with a basketball court and some amenities for residents. And the this is an overview of the site plan. You can see the playground and how the buildings are laid out along Robert Street. And this is a overview of the conceptual floor plan. Let me know if I'm going too fast as well.

Happy to circle back to anything. So again, this request is to designate Reuter Walton as a tentative developer of the Fox Lots for a period of twenty four months to complete the due diligence needed to begin development. So due diligence will include, but not limited to the following benchmarks. Complete architectural and construction drawings, complete site plan review process, complete any environmental studies, receive building and zoning approvals, finalize development budget, negotiate with the HRA on final terms, and submit final financing plan. I'm also going to include work with WISCO to on the design because they've been involved with this as well.

So this request will be back back before the HRA for a vote next week. And I'd also like to acknowledge that Paula Keenan from Brody Walton is here as well and we're happy to answer any questions that you may have.

Thank you, Ms. Chong. Commissioner Nacre.

Thanks Madam Chair. Thanks so much Ms. Chong for all of your work on this. I'm really excited to see this project moving forward. This is a great example of what happens when we are able to take control of property that needed a new use and then combine that with land that is finally for sale that had been set

on for quite a long time

on the Westside Flats and now do this redevelopment that will really bring affordable housing for families and the large size of those units is really impressive. We don't see that often that number of three bedrooms as well as the outside green space. I think sometimes there's sort of a nod at play space for young people, but it's really not sufficient whereas in this case there really is a robust play architecture being planned. I think that's great. I will say and the developers have heard this from me that I think we need to also look at design when we're doing affordable buildings.

Just because they're affordable doesn't mean they shouldn't be beautiful. And we have one example already on Robert Street of kind of a very warehouse y feel of a building, but not very articulated, very uniform. I think it's gonna be important for this building in to do better at that kind of the way that the that the building flows along the street and doesn't give that kind of boxy feel. So obviously, that has to be balanced with costs and the most important thing is providing this volume of housing. But I just wanna state for the record that I don't think the the picture that we're looking at here is a 100% where we should end up. But very excited to see this moving forward and I'm certainly in support.

I appreciate those remarks, Commissioner Nikhir and I completely agree with just ensuring that, you know, folks should not be able to just walk down the street and tell the difference between affordable housing units and non affordable housing units. And so I appreciate that as well. Ms. Chong, I heard you say that the developer applicant is here. And so I just, at this time, would welcome up Reuter Walton Development LLC. And just as they're bringing it up to the podium, I really would appreciate just hearing a little bit more about the 60% AMI, 30% AMI breakdown and just kind of what prompted the 300 units and anything else that you care to share with us.

Yeah, thank you. So I'm Paul Keenan, Vice President of Development for Roger Walton. And I will say that we do have a ways to go on design. Think this is more of a massing and concept and we do, we recognize that we've got some work to do with both you all and Wisko on finding a design that works for everybody. The affordability mix is a function of trying to balance where the highest needs are, and also making a project financially feasible.

So, we are focusing this project on two, three, and four bedrooms, because that's where we see the highest need as a developer. And what we see at, for example, at our Morrow project. And so And then also trying to find a way to target like the deeper AMIs. And so we've set aside 10% at 30% AMI, and to sort of try to balance the project out, we've set the rest at 60% AMI to make sure that it's something that can get built.

Thank you, Paul. And would you care to just share a little bit with our body on like your timeline for this development?

Sure. I think it's gonna be I think we've got a lot of work to do on the site, it's a complicated site. The site owned by the private developer as well as I think the Fox lots have some legacy railroad easements for example, that go back to the early nineteen hundreds, where we've got to kinda track down who who still owns those easements and and get them to release them. As you all know, there's some environmental considerations on the site too. So, I think we're really realistically twelve months away from breaking ground on this project kind of best case.

I will share with you that I you know, one of the things that we understand a little bit here at the HRA is complex sites, and we've had you know, commissioners do a pretty good job of being able to be in communication with developers and with folks that are working to move that forward, especially when there's hundreds of units of affordable housing there. And so I would just encourage continued communication with Commissioner Nacre and with the HRE overall on how it goes if it's awarded next week. I think one of the biggest things is just that communication piece doesn't have to be formal in this way. It can definitely be just periodic updates and kind of any challenges that come up or anything that ultimately goes well. You know, it doesn't always have to be bad news.

It doesn't have to always be urgent. And it definitely can just be more informational as well. So I just would welcome that communication. I do want to thank you for taking the time to come out today as well on a Wednesday, midday. I'm sure there was some some planning that took place to get you here. I appreciate you for being here today.

No problem. I'm a Saint Paul resident, happy to be here.

Yes. It's still during the work day, but you know, come on down. I'm glad that that means that we'll be able to reach out to you at any time. Mister St. Paul resident. Any questions for Paul while he's here from anyone else? Alright. Thank you so much. And thank you, miss Chong. Right. So that brings us to the end of our meeting. I'd say that went pretty well with all the items that we have. That's something that we will continue to do moving forward and just for viewers that are watching at home as well. We will be working to adjust the future meetings that we have to an hour long, ending, know, ending at least not surpassing 3PM. And so that is, you know, something we'll be working towards. But today, we did a pretty good job. It's 02:43. And with that, we are adjourned.