HRA approves rehab guideline change and Children's Healthcare conduit bonds; introduces TIF action for The Heights and Dayton's Bluff subordination

At its meeting, the Saint Paul Housing and Redevelopment Authority approved two resolutions and received staff introductions on two finance and development items scheduled for action next week.

The board approved a citywide amendment to the Homeowners Rehab program guidelines. Director Newton noted the changes had been presented at prior meetings and were split into two pieces for clarity; the staff recommendation was approval. Commissioners described the amendments as relatively minor changes that will help the program operate more smoothly. The resolution passed on voice vote, recorded as "6 in favor, 0 opposed."

The board also closed a public hearing and approved a resolution authorizing the issuance and sale of conduit revenue bonds on behalf of Children’s Healthcare for property at 345 Smith Avenue. Director Newton opened the public hearing and, with no members of the public present to speak, Chair Naker moved to close the hearing and approve the resolution; it passed 6-0.

Debt Manager Ginny Wolf introduced an item to obligate the remaining unobligated tax-increment financing (TIF) spending-plan authority under Minnesota statutes to advance private development at The Heights (Ward 6). Wolf said the HRA and city council previously adopted a spending plan and the HRA has authorized nine projects to date, allocating $21,768,845 and leaving approximately $5,780,202 in uncommitted spending authority. Staff recommends using that balance to fund public infrastructure that would allow private development — including an Xcel Energy service center project — to commence construction next year. Wolf said projects must commit to construction next year and expenditures must be completed by the end of next year; the board will consider the formal authorization next week.

Senior project manager Annie Burn presented an introduction to a subordination request from Dayton's Bluff Construction Training Center and its lender, Sunrise Banks, asking to amend the existing subordination so the HRA's $400,000 CDBG loan would be subordinated to Sunrise Banks National Association following an assignment from Sunrise New Markets Fund. Burn summarized the center’s origins (2017 acquisition; total project cost just over $2.2 million), the loan structure (two notes, one deferred and one forgivable), and a current CDBG deferred-note balance of about $31,723. Staff recommended approving an amended subordination agreement; the item will return next week for board action.

Chair Naker closed the meeting and said staff would return with the TIF and subordination items for formal votes next week.