St. Louis County HRA and County Board approve pledge to back $4.6 million Washington Manor bond issuance

The St. Louis County Housing and Redevelopment Authority and the St. Louis County Board voted April 15 to allow the City of Virginia HRA to issue up to $4.6 million in bonds to acquire, preserve and rehabilitate Washington Manor, a 63‑unit senior housing development at 801 Ninth Street North in Virginia.

The vote followed a joint public hearing in which county staff and Virginia HRA leaders described the project and the legal steps required for the county to serve as additional security on the bonds. Darren Jablonski, Executive Director of the County HRA and director of Economic and Community Development, told the boards the City and HRA plan to issue bonds “in the amount of not to exceed $4,600,000” with a term of about 35 years and that the city will indemnify the county against defaults.

The county HRA resolution approved ownership and operating arrangements the statute requires when a county pledges credit for HRA debt; the County Board resolution approved pledging the county’s full faith and credit as additional security for the issuance. Commissioner John Nelson moved the HRA resolution; Commissioner Lynn Yukovich seconded. The HRA vote was taken by voice and the motion carried. The County Board later moved and passed a mirror resolution to pledge the county’s credit.

Why it matters: county support of local bond issuances can lower borrowing costs for smaller cities by leveraging the county’s higher bond rating. County officials told the boards that the pledge is meant to reduce the city’s costs so more money can go to capital work in the building rather than interest payments.

DANA HILTONEN, executive director of the Virginia HRA, described Washington Manor as “market‑rate senior housing” that the HRA will acquire from the city for $1 and rehabilitate. Hiltonen said the units are priced in the local market range — roughly $812 for a one‑bedroom on the low end to about $1,200 for a two‑bedroom on the high end — and that the HRA expects to use bond proceeds plus a 0% local public utility loan and other sources to pay for required capital improvements including a steam conversion.

Auditor Nancy Nielsen told the boards she and county staff worked on rating calls and said she was “very pleased” to be able to support the city of Virginia using the county’s bond rating. Kristy Kane, executive director of the Arrowhead Regional Development Commission, spoke in support of the project and noted regional studies that flagged senior housing needs on the Iron Range.

Discussion and safeguards: speakers emphasized that the city will indemnify the county and that, under state law, the county HRA must own part of the facility when county credit is pledged. Jablonski said four parties — the City, the City HRA, the County HRA and the County — will sign a joint powers agreement that spells out the issuance and the pledge and the operating agreement governing management of the property.

Board action and next steps: both HRA and County Board members voted to approve the resolutions at the meeting. Jablonski outlined a timeline in which the City of Virginia and the Virginia HRA will complete their required hearings and bond‑issuance steps; the county will also submit an application to the State Credit Enhancement Program to seek improved borrowing terms.

Community context: Commissioners who spoke noted waiting lists for senior housing in the region and said preserving existing senior units was a priority to avoid losing housing stock in smaller communities. County officials said a similar partnership had been used previously with Ely.

For now the action is a county pledge and approvals to participate in the financing; the City of Virginia and its HRA will complete their public hearings and the formal bond issuance steps before funds are borrowed and work begins.

Ending: The board recessed its regular meeting after the HRA actions and later reconvened to pass the County Board resolution backing the bond issuance. County staff and the Virginia HRA said they will continue required steps and return with final issuance details.