2026-10-14 - Housing & Redevelopment Authority

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01:00>> To order. Well, call

01:03please. Just here Johnson

01:12here. 5 present.

01:20>> 2 absent that being

01:20Commissioner Yang was excused.

01:21Commissioner Kim. And number

01:25one for discussion resolution

01:26R E S 26 dash 1, 708.

01:30Survation of year 2027, low

01:33income housing tax credits for

01:34that are development located

01:35at 4.70, Wayfair. Avenue

01:37District. One Ward, 7. All

01:42right. Thank you, Kelly. We

01:42had a staff report on this

01:43item last. week. We talked a

01:48little bit about the project

01:49heard aout the submissions

01:50that we had and the staff

01:52recommendation.

01:53>> Make a motion to approve

01:54all those in favor.

01:55>> all posts. 6 and favors or

01:59opposes resolution is adopted.

02:03number 2 resolution Arya 6

02:04Dash 1, 709, approving a

02:07partial waiver of the

02:09substance sustainable building

02:10ordinance for Afton View

02:12Apartments. 3 71, 3.73,

02:14Winthrop Street self. 21 18 21

02:207 day London 3.65 Winthrop

02:22Street South District. 1, And

02:26we also had a staff report and

02:29this had discussion before

02:30about this paper. Other any

02:31other questions about item at

02:32this time for many of my

02:33colleagues.

02:35>> Seeing none Dartmouth. And

02:36is there anything that you

02:36want to add? I'll take motion

02:40vice chair just prove all

02:41those in favor. I all the

02:43polls. 6 and favors or

02:47opposes. The resolution is

02:48adopted. number 3, U.S. public

02:51hearing resolution, public

02:55Reyes Ph 26 dash, 2, 9, 0,

02:58>> Resolution authorizing the

03:00issuance and sale conduit,

03:03multifamily housing, revenue

03:03bonds for the after New

03:05Apartments project located

03:06that 3.71. And Theresa May 3

03:08street self. 21 82, 1, 7, 8,

03:11London Lane. 3.65 Winthrop

03:15Street South approving te

03:16execution related documents

03:19waving and the policy in

03:20developed developers, fees and

03:24adopting a housing program

03:25district one worth 7. All

03:30right. We're at hearing

03:31section for the housing

03:32Redevelopment Authority. If

03:33you're here.

03:34>> To testify, please come to

03:35the mikes, able just to you.

03:38Each person would have 2

03:39minutes to be able to share.

03:42Seeing no one running up to

03:45the podium. Take a motion from

03:47Commissioner Nick or to close

03:48the public hearing. All those

03:50in favor. All the posts 6

03:54favors or oppose. The public

03:55hearing is closed. couple

03:59questions that came up as

04:00going through it. I just want

04:01to open the floor. If there's

04:02any additional questions

04:03regarding the matter, a

04:04discussion or clarification

04:04for that, that's enough. Scene

04:12commissioner. Just thank you,

04:13Madam Chair, thank you to

04:14staff for helping clarify the

04:17conversation about developers

04:17fees. I think in the future it

04:18would be really helpful just

04:19to see.

04:22>> Maybe on a chart. Penciled

04:23out how a project would look

04:25different with different

04:25levels of fees for says

04:28construction costs. I think

04:28what we're talking about last

04:31week was helpful to some

04:33extent, but being able to see

04:35exactly what would happen if

04:36you move the lever in each

04:36direction for project

04:37financing help clarify more. I

04:41also think if if we need to

04:43talk about how to make our

04:43policy and developers fees

04:46more accurately reflect

04:48ongoing increasing costs of

04:51projects while staying true to

04:52what we're trying to do here,

04:53which is to make sure that

04:54nobody gets unduly enriched by

04:55a project like this. then we

04:59should talk about that because

04:60I think it's important to have

05:01a post like this to have it

05:05not keep project from moving

05:07forward are adding costs to

05:08the projects in a weird that

05:09reality way that. Raising fees

05:13can actually increase

05:13financing and lower costs for

05:17and that convoluted way guests

05:19and making 2 suggestions for

05:20the future. But I appreciate

05:21the work that stepped in to

05:22clarify this over the last

05:22week. Yeah. Like Commissioner

05:26Kerik that there was a lot of

05:27discussion and essentially

05:28we're all kind of saying

05:29similar things of trying to

05:30fully understand.

05:31>> The weather, this was like

05:32an accommodation need to meet

05:33a threshold or if it was, you

05:34know, something that to this

05:36task point the inadvertently

05:40raising the financing either

05:42way. And I think that that was

05:44really helpful to get that

05:44clarity and follow-up from

05:45staff about it because as we

05:47go forward, I do think that

05:48will be really helpful. So I

05:52just took of the notes to

05:53commission a car on future

05:54items related to something

05:55like this as all. We're asking

06:01a specific project kind of

06:01look at the specific area,

06:02seems little brighter and just

06:04our practice overall

06:05internally for how we evaluate

06:05that. That's the best option

06:07report. And so that's

06:08something that hasn't, you

06:09know, we haven't taking a look

06:11at our poll, our practices

06:15around that maybe we should

06:16make time for that. And before

06:17something in the future comes

06:19up. So appreciate that. No

06:20commissioner. Seeing no other

06:26items were discovered. No

06:27other discussions are hands.

06:30I'll take a motion

06:31Commissioner Bwie to approve

06:31item. All those in favor.

06:32>> All of us. 6 and favors or

06:36opposed resolution is adopted.

06:39I'm number 4 is the staff

06:42report Sr 26 Dash, 2, 1, 4,

06:44Parks and Recreation Fund

06:45transfer presentation which

06:46laid over from.

06:47>> Yeah, 2 or 7. And meeting.

06:53>> So welcome, Mr.

06:54Congratulations on your recent

06:56promotion within the city. And

06:58also thank you for coming back

06:59this time around. I last week

07:01we were able to get to this

07:04presentation. We place on on

07:05the deck because we are

07:08reviewing all of the Saint

07:09Paul housing and redevelopment

07:10authority transfers that are

07:11coming i and out of the

07:12injuries. Special funds we've

07:15had and talk about the

07:16procurement transfer. And

07:19Biden you in because the right

07:20track transfer from my

07:20colleagues has about $191,000

07:23transfer. That's consecutively

07:24been on the injuries. Budget

07:24for a long time. And I think

07:29much like I think we'll hear a

07:30little bit about housing

07:31coordinator position in the

07:32future as well. But this is

07:35one that doesn't doesn't

07:36necessarily seem to have a

07:37clear origin of when it

07:38started or how it started. But

07:39it's helpful to add some

07:40context behind what funds and

07:44relation to what we do here at

07:44this table in this capacity.

07:46So welcome. Mister Frankel.

07:50>> Thank you. Chair Johnson

07:51Commissioners. I am glad you

07:51were in showing because the

07:55origin of and you're not going

07:56to ask on the origin because

07:58as you know, it's been

07:59long-standing and appreciate

08:00your acknowledgment of fair to

08:01start. And so Carla Franco, I

08:06have come before before as

08:07program coordinator with the

08:11right track program. I'm

08:12leaving workforce for waiting

08:13for the city now serve as the

08:16youth services manager for the

08:17Department of Parks and Rec

08:18still overseeing right track.

08:21>> Sprockets out of school

08:22time network, but also our

08:23safety strategies and all of

08:24our equity strategies for our

08:24department. And so thankful

08:27for the time to share about

08:28the impact of the investment

08:29of the HRA here today. I'm not

08:35going explain what right, Rick

08:35is because you all are very

08:37aware. But what I do want to

08:38just call attention to really

08:40quickly is some of our

08:45preliminary summer outcomes

08:45that are before you today. We

08:46had over 3,000 young people

08:47apply for 760 internship

08:49experiences which was reduce

08:51from previous years. And we

08:55offer opportunities across

08:57ector. And so that is public

08:58sector private sector our city

09:01of Saint Paul nonprofit

09:03organizations as well.

09:07We'll talk a little bit more

09:08about the impact that that has

09:10in terms of our overall

09:13economic development strategy

09:14one thing that's not listed in

09:16here is about 2 million

09:17dollars in wages has been paid

09:18out to young people in the

09:18city of Saint Paul this year.

09:21so with what we also know is

09:25that people are young people

09:26are spending tat money

09:28directly back in the city that

09:29they live in. And that's not

09:32to stand on here. But just

09:32wanted to call attention to

09:33that as well. In turn

09:36experiences every year we're

09:37getting out, you know, not

09:38only rave experiences from the

09:39R. Raved and a from the young

09:45people that are participating

09:46in our program. As you can see

09:46here, they telling proud of

09:47their work. They're learning

09:49new skills. They are

09:51strengthening their skills and

09:53they're getting respected by

09:55organizations over 100

09:56employer partners that we work

09:57with throughout the city of

09:59Saint Paul. And then the

10:01employers are also coming in

10:05with similar feedback that our

10:06interns are bringing new

10:07perspectives are helping in

10:08power, the work that's helping

10:10that's happening at those

10:11sites and and majority of them

10:1780% more sometimes say that

10:18they would hire them if they

10:19had open positions. And there.

10:21And their field at their site.

10:27And as we're here today to

10:27talk about the fun

10:28transferred, this is, of

10:30course, a critical funding

10:32source that supports our right

10:33rate program. Staffing needs.

10:35This has in place for well

10:36over 10 years as I'm chair.

10:40Jonathan, you mentioned and in

10:41this 2026 budget, the

10:44investment from the HRA

10:46covered approximately

10:48two-thirds of the overall

10:51general fund That includes our

10:52program supervisor. And so of

10:55the $191,437 General Fund

11:02transfer. I'm a big expense

11:04from that, of course, is

11:04banned funding our program.

11:05Supervisor artist us follow

11:08that. She, of course, one

11:11program supervisor to oversee

11:12about 8 Ft. Eason are depart

11:13in our section in 12 seasonal

11:17chapel says the 1000 seasonal

11:20in turns. And that alone is a

11:23critical expense that is being

11:24supported by the work of of

11:26out 5, the support of what I

11:31will aso say is that his

11:32expansive write our our team

11:33in cages with hundreds of

11:36employers from across the city

11:38of Saint Paul. Again, public

11:39private and nonprofit sector

11:42to support the work that they

11:43are setting forth in there

11:46across every sector of our

11:47employment in our city. Our

11:52current supervisors also

11:53critical being able to write

11:55plans and fundraise leverage

11:56support. And so what we see is

11:59all the youth wages that we're

12:00providing to young people in

12:01our program. They are covered

12:04by grants, an external funds.

12:08What we always are expected

12:10of, however, is to ensure that

12:11we're demonstrating as an

12:12organization and investment.

12:16Our general fund to ensure

12:17that we maximize what we're

12:18asking for externally. funding

12:22organized station's want to

12:23make sure that we are also

12:27funding a baseline and so that

12:28way the critical work continue

12:30year in year out. I think I

12:33think sample that I can just

12:34provide Rtd Grant's right?

12:38that's state's fiscal year,

12:39which we're all familiar with.

12:41But I'm getting that award in

12:42getting an actual Award a

12:48contract with Dede, right?

12:50That doesn't happen until July

12:52one, right? And so for us, our

12:53program starts in June and we

12:55need to provide that service

12:56to young folks. And so it's

12:57really important that we have

12:58a baseline of funds that we

13:00can initiate. The program has

13:02been a consistent funder of

13:03ours this year. Of course,

13:07$675,000, but reduced from the

13:09last biennium by 100,000. And

13:10so again, as we're looking for

13:11competitive grants, these are

13:11things that are a rality for

13:13all of us. Right? so reiterate

13:21>> this kind of contributes

13:23solidify city contribution.

13:26>> But then again allows us to

13:27really make sure that we're

13:29investing these dollars

13:31directly back into the ones

13:31that were fundraising and I

13:33directly back into.

13:34>> Our

13:36>> our families here in Saint

13:38Paul and what we also know

13:40this is this is a critical

13:42funding source for the family

13:43unit over 80% of our families,

13:45our that this is money that is

13:49helping pay bills, groceries,

13:50cetera, that this is

13:52cultivating kind of the

13:53economic mobility that we

13:54would like to see here in the

13:57city. And I know that a goal

14:00of many different departments

14:01within our city and we as park

14:02and rec and the right track

14:03for him are proud to the

14:05unarmed of an overall

14:05strategy. So I just really

14:10quickly I know this is not

14:11foreign to you all, of course.

14:12But I know that there's been

14:15some misconceptions out

14:16community a little bit. And so

14:16I just wanted to take us

14:17through the mayor's

14:18recommended 2027 budget.

14:19Really briefly, them ears the

14:24mayor's budget. Of course, We

14:29are building our baseline.

14:32Awful continued. I'm hre

14:33investment, right? So the

14:36$191,000 we are using that our

14:37base budget for next year. And

14:38so as we're looking at the

14:41general fund increases that

14:42ripple proposed by the mayor's

14:44budget. That is really just to

14:46maintain the current staffing

14:46levels that we have on the

14:48right track in Sprockets team.

14:49Separately. The current

14:54program planning for 27

14:56doesn't act is being

14:57considered others. $40,000

15:02increase. We, of course, are

15:03trying to build this and will

15:04it will look like the form of

15:07additional or last internship

15:08opportunities for young

15:09people. But you know, there's

15:12going to be a minimum wage

15:15increase here in January one.

15:16And that is something that

15:17will cost is about 40,000

15:18extra dollars. So in the

15:20context of how are building

15:21out our budget with the

15:23additional general fund

15:24dollars that are coming from

15:25mayor's proposed budget. These

15:28are these are other funds that

15:31will still possibly have the

15:31impact of decreasing our

15:37actual impact to do increased

15:37costs. And so that's just a

15:38plain example of what that

15:39looks like. So if the HRA

15:42investment was discontinued, I

15:45just want to acknowledge that

15:45that would have to either be

15:49supported or replaced by a

15:50separate general fund support

15:51or another funding source.

15:53>> We

15:56>> that there is banned. I

15:59recently quite a bit

16:00difficulty solidifying in

16:03securing additional

16:04investments in this program. I

16:05mean, it's foundation. We're

16:06still hoping to hear back from

16:08them on this current grant

16:08cycle. Right. But that's a 30

16:09to $50,000 a year. Typical

16:13investment. Beyond that we've

16:16received the NA Foundation, a

16:17national right NBA Foundation

16:19Grant. We are working closely

16:20with the Greens team on a

16:21national fund or strategy in

16:24applying for any and

16:25everything that we are

16:27eligible for within the

16:28staffing capacity that we

16:31have. But this would any

16:33reduction up to 2, almost

16:34almost $200,000 in our

16:37investment from the general

16:38Fund would certainly shift

16:39what type of programming we

16:40can offer. and in a time

16:45really where the need has not

16:46been demonstrated greater over

16:493,000 young people part for

16:51this year were our matching

16:52percentage used to be a couple

16:53years ago about 33% or 30

16:54young people that we're

16:56acquiring. We're being matched

16:57with positions right now.

16:59We're closer to 20 to 23% and

17:01being able to fill that need.

17:05>> And then lastly, I'll just

17:06add there could be additional

17:09burdens, the kind of the

17:11larger economic development,

17:11trade issues across this

17:13system.

17:14>> We've done a lot of work in

17:14partnership with Ramsey

17:18County, the City of Saint Paul

17:19School District and other

17:21youth workforce providers

17:22across our sector. And we are

17:26seen as the access point to

17:28youth employment throughout

17:29the city of Saint Paul. When

17:31people are like young people

17:32need a job. They're like,

17:33alright Tey, we've done a lot

17:35of work right now over the

17:36last five-plus years to build

17:38that arm out. And I think any

17:42adjustment to our ability to

17:42do that would significantly

17:44impact the ecosystem. And with

17:50that, I stand ready to answer

17:51any questions. appreciate the

17:53time so far.

17:57>> Thank you, Mr. appreciate

17:59presentation. And I also

17:59appreciate that additional

18:00contacts about the work. And I

18:01think one of the things that I

18:04to share with my colleagues

18:05like.

18:05>> We. Have had in the past

18:10where the housing and

18:11Redevelopment Authority

18:12special funds have been

18:14utilized for staffing. But

18:16some other feedback from the

18:16office of Financial Services

18:18as often don't hide special to

18:21an ongoing source. And I guess

18:25my question to you, Mr. Franco

18:26is not necessarily why this

18:27position is important because

18:27I actually don't think that

18:30that is really sad for my you

18:31know, I think values lies. I'm

18:32very aligned with the position

18:34remaining. I'm a little

18:35confused, slashed slightly

18:38concerned that every year for

18:3810 years. This has been tied

18:42to a special fund resource,

18:43almost making it almost

18:45reliant on that resource to

18:47keep position that has

18:47remained field since it began.

18:49I'm just curious, like, what

18:50are the discussions around how

18:52parks is prioritizing the

18:55general fund getting the

18:58positions that are on the

18:59general fund has an expense

19:01funded by the general fund not

19:02tied to any sort of graphic or

19:06additional resources, much

19:07similar to how other positions

19:10that maybe had grant funding

19:12or external funding that has

19:13now expired have had to be

19:14accounted for in the general

19:15fund.

19:18>> Thank you for the questions

19:19here. Johnson. I will answer

19:19part of it. I may. I and that

19:23technical finance I this stuff

19:24may default to a fast in some

19:28of that regard. However, what

19:29I can speak to is the impact

19:32what I can also speak to is

19:33that the Cities, General Fund

19:36investment in right tracks

19:38programming has minimal. So as

19:42I mentioned earlier, the 2

19:43thirds of our general fund,

19:47the general fund transfer from

19:47the HRA has has Two-thirds of

19:52our baseline General fund

19:53investment. And so I can't I

19:57can't necessarily speak to

19:59financing strategy around all

20:00of that. What I can say is

20:03that the investment and the

20:05from the Hre General Fund is

20:07allowing us to be able to

20:09secure or additional funds to

20:11make our programming happen. I

20:14know that there was a lot more

20:15to that question. And I don't

20:16know if there's. Director

20:19Rodriguez are some of mall at

20:21O that would like to so a

20:24larger strategy.

20:28>> And council members, I

20:29would just the the origin

20:31story of like our youth

20:32employment program with within

20:33the city was that it was burst

20:34out of the HRA many decades

20:37under a Kelly. I think at one

20:38point was going to live with

20:41MPD ultimately shifted park.

20:43So for some of that, I don't

20:44know if that's helpful

20:45answering some of that

20:46question. But some of the

20:49origin, why lives with So just

20:53wanted acknowledge that. And

20:55then just nte that we

20:57continue to work with all us

20:57and others on just the general

20:59fund support for this program,

21:01as Carlos outlined just

21:03overall for both the salaries

21:04and how we support internships

21:05within the program, it's come

21:07from a variety of funding

21:08sources over the years. That's

21:11private grant funds HRA funds

21:14general fund special funds.

21:15The whole So just noting not I

21:18don't that fully answered your

21:19question, but just been a a

21:22program that exceedingly got

21:24gotten higher in terms of

21:25volume and we've had to

21:26support different funding

21:27sources along the way.

21:31>> And the record has there

21:32ever been a request to put

21:33position on the general fund?

21:37>> I'm sure over the last

21:39couple decades it's been

21:40talked about not recently, at

21:41least in my tenure but just

21:45going back again to the

21:46history parks one rec centers

21:48to can you have in turn

21:49mention expansions week, read

21:50the House and in parks. But

21:53along the way, I think there's

21:53never really been a concerted

21:54effort to. Move it over per

21:58out of the hre. So.

22:02>> How I see a few different?

22:04And so did a quick glance to I

22:05order. I see commissioner

22:06maker. I will just share as

22:09I've shared with everyone else

22:10that like.

22:14>> The the age or race special

22:15funds are depleting source us

22:17and that's not going to

22:20change. And so even having

22:22this positions tied to special

22:24funds, it is truly gonna be a

22:25financial concern. If not now,

22:27it will be inevitably

22:28something that will need to be

22:29discussed and talked about

22:31because this petition is super

22:31important. Not only to the

22:32work that you all do, but to

22:35the earth. And you know, that

22:35is happening impacting our

22:36young people across the city.

22:38Is that housing is at

22:39redevelopment. You know, I

22:42think that's the question that

22:44I would hold. But Commissioner

22:46Nick yeah, thanks, Madam

22:47Chair, thanks so much for the

22:49presentation. Obviously, this

22:49is a critical program in the

22:50city and something I'm really

22:52proud to support over the

22:53years. think I'm thinking

22:55about this both in terms of

22:56the chain, but also in terms

22:56of just the budget

22:57conversations here in general.

22:59>> And struggling to remember

23:00the exact number. But I think

23:01we are shifting something like

23:02$500,000 off of special fund

23:03on to the general fund due to

23:07arpa funding ending contending

23:11that leaving just a questions

23:12in general about the the cost

23:13of the program on the general

23:14fund. And we just finished a

23:16conversation about

23:18affordability. And so might

23:18just be because I'm coming off

23:19of that conversation and the

23:22amount of pay going to CEOs

23:23versus 2 workers right now

23:25have its growing over time.

23:25But I'm curious about the

23:26tough private and Mr. Frank

23:30mentioned the fndraising

23:30strategy, National fundraising

23:31strategy, which I'm interested

23:32hearing more about. But

23:35specifically how private

23:37contributions are being

23:38sought. I know when I first

23:39started on the Council Chamber

23:39of Commerce was one of our key

23:40partners that's no longer the

23:43case. But it strikes me that

23:45this is one of those programs

23:46that has so effective, so

23:47compelling, so meaningful to

23:49our community and to directly

23:50to head into the private

23:53workforce that it would be an

23:55ideal candidate, not just for

23:56those public grants that are

23:57super hard to get too far to

23:58administer and require us to

24:00contribute some, but also from

24:02private sector, the employers

24:04themselves. So can you just

24:05speak all that to how much we

24:06get now? What they were

24:06looking to expand that?

24:10>> Yeah. So a big part of our

24:11overall strategy is at getting

24:13employers to pay wages for

24:15their interns. And I think

24:19early estimate right now,

24:19while we're still waiting for

24:21employers to report that bank

24:22is over $500,000 in

24:23individual. just paid directly

24:26from employers now, 2, I

24:30believe in a city of a lot of

24:32Fortune 500 companies that

24:33they support could be very

24:34much higher. Absolutely. But

24:38I've also seen in terms of the

24:39kind of workforce ecosystem is

24:40a lot of these organizations.

24:44Whether or not they're paying

24:46their see, he call a million

24:46plus dollars a year. They're

24:47also not investing in entry

24:52level work the way that they

24:53have in the past. And so I

24:55think for us, it's twofold. I

24:57think we are a little bit

24:58tight in terms of I'm going

25:01out to solicit direct fnding.

25:02That is, of course, something

25:04that elected officials in the

25:07city of Paul Councilmembers.

25:08The mayor's office where we

25:10see it being super successful

25:12in cities like Boston holes in

25:14the 11 million dollars a year

25:14in private funding. It's

25:17really elected bodies that are

25:18going out and saying. We need

25:21you to invest in this program

25:22because it's so much of it. So

25:26able to turn out dollars in

25:27the way that Boston is? I

25:28mean, they're mere Michelle

25:30with been instrumental in

25:31being able to bring in that

25:33that dollar dollar amount. And

25:34so I I think we are really

25:38interested in putting together

25:39some sort of cabinet of sorts

25:43that can kind of help guide in

25:44our funding strategy. Part of

25:45my goal is really to try to

25:46see how we can develop a

25:49longer term sustainable

25:50funding strategy. We just left

25:53a convening with Minneapolis

25:54step up program which is

25:56equivalent to across the

25:57river. But that also, Brooke

25:58Link, which is Brooklyn Center

25:59in Brooklyn Park. And outputs

26:03that we're putting in terms of

26:04our. Program for the amount of

26:07general fund dollars are being

26:08invested is The same if not

26:13more than Minneapolis in terms

26:15of youth wages that are being

26:16paid out. And also the number

26:17of staff that we operate our

26:18program. I currently it 6 FT

26:23East. and so I think that

26:25there is I'm a lot that we are

26:27getting in comparison to the

26:30Metro wide use workforce

26:30ecosystem for the investment

26:31that's being made now. I'll

26:35just having totally support

26:37the idea of elected officials

26:38making. Those asks as well as

26:39any partnerships with step up

26:40and that makes sense.

26:43>> I have had conversations

26:44about this in the past with

26:45staff and I think the key is

26:46for there to be that strategy

26:46that you're talking about

26:48because, you know, sending us

26:49excel spreadsheet of all of

26:51the different companies, you

26:52know, isn't the same thing as

26:54that strategic look at who's

26:56best to make, which ask, who

26:58is the warm contacted each of

26:58these places that are so I

26:59really look forward to. I'm

27:02happy to partner with you on

27:04that. I just think we live in

27:06a generous community PCR

27:07Pierce and he's bringing in

27:08much more in. Well, I

27:09appreciate that. Employers are

27:10paying their workers for the

27:10work that they're doing.

27:15They're getting work from

27:15their interns for that work.

27:16And I would expect that. And

27:17so I'm I'm talking about

27:18beyond that baseline. So

27:21commission any

27:24>> Yes, as a former right

27:25track set for myself, I want

27:26to support that and especially

27:28around like just how that

27:28happened and how to continue

27:29to help and support as we're

27:31thinking of ways to contain a

27:32reas funds for because as we

27:36go back through and for

27:37planning. And I think this is

27:38true for all of te cty's

27:41staffing that remains on the

27:41jury is balance every year

27:44like there is a real need to

27:46talk about what that looks

27:48like. Can more years from now

27:50if the funding isn't there to

27:51be able to give so is this

27:55something we already met? We

27:56already do for a jury general

27:58for your contacts. We levy the

27:59max every year for the jury.

28:01So we can't necessarily can

28:04raise taxes to a certain level

28:04when it comes to the jury

28:05levy. But

28:07>> Levy is the levee for the

28:09jury. We often do the There

28:11isn't any more that we can

28:13levy.

28:13>> Also per state statute.

28:21♪

28:21Thank you guys for the time

28:22today as well. We really

28:22appreciate it.

28:28>> And number 5, a staff

28:28report SR 26 dash, 2, 1, 5

28:30introduction to the Maryland

28:32Park property sale and loan

28:33assumption. a strong. Good

28:48afternoon. aired on Sun

28:52commissioners. My name is

28:53Hannah. in here, too. Today to

28:56present on the property sale

28:57and loan Assumption request

28:59for the Maryland Park

28:59Apartments.

29:03>> So Maryland par departments

29:04is located at 16, 19 Maryland

29:06Avenue East in District 2 or

29:086. It is currently owned by

29:10Saint Paul. These housing

29:10associates and I was developed

29:12by to so to is seeking to sell

29:17the building. And has I

29:19identified Al I h Maryland

29:20Park Associates otherwise

29:21known as Ledge capital as the

29:22fire. In order to support the

29:27acquisition alleges requesting

29:28an assumption and that term

29:29extension of an existing

29:30$600,000 home own as well as a

29:34subordination to a new first

29:36mortgage existing mortgages.

29:38Better in position before the

29:39loan. So this is aerial view

29:44of the parcel. It's right off

29:44of Maryland Avenue, East

29:45Canard Street near Lake

29:46Phalen. Let's capital is a

29:51national firm that focuses on

29:52acquisition and development of

29:55affordable housing. They own

29:5560 properties across 13 states

29:58and this is going this is

29:59their first dealing in

30:00Minnesota and says their

30:02national from consultant is

30:03here with us today. As far as

30:09the site, the it is a proxy

30:14150,000 Square feet. It is

30:16constructed in 1969. Has 172

30:19units and 187 parking spaces.

30:22So to acquired and

30:22rehabilitated this building,

30:24this property in 2014. And at

30:27that time, the if the teacher

30:29issued conduit revenue funds

30:31and south funding in the form

30:33of home to support these

30:34activities. This what the

30:39interior looks like, a typical

30:40kitchen bedroom and bathroom.

30:43And these are shared common

30:44spaces for the residents. So

30:47the existing home loan was

30:48approved in 2014. O for

30:52$600,000 and it carries a one

30:56percent interest and is in the

30:573rd position after a private

30:58first mortgage and image of a

31:00loan payments are deferred

31:02until maturity, which is 2046.

31:06So the buyer can is requesting

31:06the assumption about home loan

31:09to extend the maturity until

31:122056 or 30 years from closing

31:15of the property sale and then

31:17subordination to the new first

31:17mortgage and existing

31:18mortgages. Afordability it

31:22remains the same as the

31:25original 2014 terms 172 units

31:26with 143 of them being section

31:318 units and 100% of the units

31:32are 60% of am I so the project

31:37based out jurors issued by HUD

31:39and and Ledge has submitted an

31:46application to HUD to execute

31:48a new contract, which extend

31:51PVV units for an additional 20

31:51years. As part of the

31:56application is requiring that

31:57the project demonstrate local

31:58support. And one way to

32:00demonstrate that local support

32:04is to extend the terms of the

32:05existing home loan instead of

32:07new financing into the

32:08project. So the proposed

32:14structure includes the newest

32:16new first mortgage of 17.5

32:17million fire equity of 1.3,

32:21the assumed MHS a loan then

32:22and the assumed

32:25>> A jury home loan. I will

32:26note that may Jeff, a home,

32:30the requested assumption of

32:30that loan is still in process

32:31and is subject to change. The

32:35acquisition. Price is 19.3

32:39million dollars. The buyer

32:40will fund a Capital Reserve

32:41account of 200,000 and the

32:43rest will go for towards the

32:44cost purchase. As far as next

32:49This request for the death

32:51Sumption extension and

32:53subordination will go before

32:55the board on October 28th the

32:58projected closing of the

32:59property sale is 5 or on

33:00November. 30th.

33:09>> I just have one for you.

33:10child when the use of the the

33:14application is going to head

33:15for an extension. But what is

33:17the current expiration So

33:18right now, the Pete, the have

33:20contract will expire in 2034

33:21without exception.

33:25>> But there applying for an

33:26extension to how.

33:29>> To

33:29>> Until the 20 years, so 20

33:30years from 2056. So 2046 2026.

33:39The solid 20 years from from

33:41their purchase. Yes, Politics.

33:48It's led to the capital here

33:48today. They're consultant is

33:49here. Okay. We sometimes will

33:54take the opportunity to

33:55welcome the developers of the

33:56partners that they're here. So

34:00>> if led, she that something

34:00is here and want to speak.

34:01Now's the time. 2 in the same.

34:20He said he was excited about

34:20the property and that led to

34:22ledge is excited to be working

34:23here. It's a pause. It's their

34:24first project. The Q A strong.

34:28If we have follow-up questions

34:29will make sure to get that to

34:29you before action on the 28th.

34:30All right. Thank you so much.

34:31Chair.

34:36>> As a reminder, don't have a

34:37median on the 21st. that is

34:42the 3rd Wednesday. take now

34:45half we will make a port in

34:46November. We have a meeting

34:47with 3rd Wednesday. with that,

34:48we are adjourned.