Roll call, please.

Bowie?

Here.

Coleman?

Here.

Just here.

Kim.

Naker.

Here.

Yang.

Here.

Chair Johnson.

There are five present, two absent, those being Commissioner Kim and Chair Johnson.

They are excused.

Chair Johnson, and Chair Johnson will be here shortly, I'm told.

We're going a little out of order this afternoon.

We'll start with Staff Report SR 26-93 Economic Development Strategy update.

And I believe that we have Director Lloyd here for the economic development strategy update.

Welcome.

Thank you for being here.

Thank you, Vice Chair.

Happy to be here.

Thank you, Commissioner.

Today I did the opportunity to update you all on our citywide economic development strategy.

Very exciting, very proud of this effort.

I think it's gonna really uh go well for our city.

I'd like to share with you why I think that way and what we're working on.

Really quickly, I'll just go through um the project background and the consultant team and goals, schedule, um, how I believe this powers our work, uh, what we did in April to kick this off, and next steps and any conclusions for you all to have any questions from the way for after.

So when I first started here, um we had an old economic development strategy that was done in like 2017, and I was really um pushing and hopeful that we could get one that was updating.

Over time, I was able to convince everyone that we should get this going.

So we issued the RFP for this in 2025, and we you know launched with our consultant TIP strategies in 2026 of March.

Um what we try to answer with this RFP is three questions.

Where are we?

Where we should go and how do we get there?

Um we want something that's gonna be tangible, some actionable, something that we can uh point to our work on, and also you know, be able to make some smart strategic investments alongside of this strategy as well.

Uh TIP strategies is who we who we selected.

We received about 11 proposals for the strategies, all very capable um community or companies and and organizations.

We landed on uh TIP strategies because they were the most uh qualified in our opinion.

They were the most um prepared for this work, they've also done work recently in the region, so that was something that was uh key and critical.

And they understood how to deliver on something like this from their um from their previous work.

So we felt really confident about them being the people that lead this effort.

By the numbers, they've had over 600 engagements, uh over 425 clients throughout 44 states and seven countries, so they're expansive in terms of experience.

Uh you'll uh get a chance at some point to uh interact with Jeff Marcel and Elizabeth Scott, they're um each leading point on this project for us.

Jeff's a very seasoned experienced economic development uh professional and Elizabeth is very good at so far.

What I've been able to tell in just community engagement, organizing, asking the right questions, and being able to find out what people are thinking.

Both of them uh will be here again in the future, and they'll be able to discuss.

Um we'll be able to discuss more alongside with you, and I will also say be on the lookout because they'll be reaching out to you each individually to schedule meetings and interviews to talk to you about the strategy work and hear your opinions and thoughts as well.

So here's the schedule.

Um we started in April.

We have now cruised into May, which is amazing how quickly it feels like maybe arrived here.

But we are uh deep in the discovery part.

So we've provided them information along the lines of all the kind of studies and strategies that have been done recently.

Uh they've asked for some specific information around like businesses in St.

Paul and like how many there are, etc.

So we provide a lot of information and data for them.

They are combing through that now, going through that, and we already kicked off our stakeholder engagement.

So this entire portion of discovery will carry us through July.

Uh August and September, we'll get a little bit more focused on the strategic direction and opportunities that are in place, and October through December is when we begin to work on the work for implementation and how this will look on the implementation.

Um, make it.

So what we will receive is a deliverable.

Um we'll get a broad plan, economic development strategic plan, pretty dense document.

I had an opportunity to check out Bloomington's and it's you know it's not shown on details.

We'll get an implementation matrix so we'll know what our goals are, who our partners are, timelines, budgets, funding sources, etc.

to try to work through interactive dashboard for data so we can embed this in a website on our end and we can update that on the back end and give progress reports and updates to the community on like where we are with this.

Which we hope to have you all a part of that presentation and workshops as well.

What I feel the value of this is that it's a living budget and investment tool.

It's not just a document meant to sit on a shelf, it's meant to help try to direct not only economic development work but make recommendations through all of our leadership throughout the city from the mayor's office to HRA to City Council on where we should put our efforts.

Optional, we've included inside of the contract an annual updating strategic check-in through five years.

So they are willing to come back annually over the next five years and check how we're doing in our implementation, give us more recommendations and update that with us and proceed, you know, as planned on the strategies.

It also helps us with our business retention and expansion work.

Uh, we just get some really good data backed information in terms of how we can recruit new businesses, retain current businesses, position ourselves for attraction.

So, what things make St.

Paul amazing?

Like I said last week, you know, I have my own opinions of what makes us amazing, but it's really great to have data and information attached to that that makes sense for the business community at large to make a decision to be here.

We have also a land use and redevelopment site selection process.

So when we begin talking about like how should we use our land, what things should we uh push for redevelopment, how should we play a part in that?

This will hopefully provide more insight to us on where we should invest our dollars towards or towards land use and redevelopment as well.

Small business and lending support.

Uh, we'll find out what places that we're not doing so strongly in, what corridors, basically through the community reinvestment act.

There's data maps that show where loans are being made, where they're not, and maybe we can you know begin to really look at how do we focus on the neighborhoods that aren't being invested in with capital access and help them secure that quarter corridor revitalization.

Um we've talked a lot about this, and we are working on our second round of commercial corridors work, but obviously there's so much to be done, and it all can't be done through the commercial corridors program.

So we're looking at opportunities and ways to attract retail and uh what corridors have the highest potential so we can you know speak smartly and strategically about those.

Uh we'll look at workforce development as well with this document and with this with this plan.

It'll help us talk about what quality of access to jobs there will be, then map pathways to careers for you know industries that we feel like we can attract here in St.

Paul.

Um, we'll all again talk about workforce investments where we where have we traditionally put money where have we worked with in partnership with other organizations?

How can we begin to you know build a better spot for people to transition into the to the communities or excuse me, jobs of the future in the community.

This past April, um, on the 23rd and the 24th, we kicked off our work.

So we were extremely excited.

Uh TIP came in the town.

We spent time showing them around some development sites around St.

Paul, so we showed them as an example, uh, United Village as one.

We also showed them uh, you know, the old Ford site, and we walked them through, you know, how did we get there, Highland Bridge, and then we showed them, you know, some of the west side, we showed them some of the east side by being over there.

So they had a really small window.

We talked to them and brought them to also the heights.

So we were just trying to get some high-level things in while they were here.

They're coming back next week.

We have to have more planned for them to see.

So hopefully, um, they'll get a broader scope of where our city, our city sits.

We got a chance to kick off with our steering committee and our um stakeholders.

So we sat down with five stakeholder groups that range from community leadership, or excuse me, economic uh development partners, we looked at developers, we looked at small business, and we all sat down and we talked to them and spent about an hour with each of those groups to hear back from them on saying like what are the challenges of working here in St.

Paul?

What are things that are you know kind of holding your progress of how can we be better?

So that was the first kind of conversation around understanding some of the challenges people on the floor are experiencing.

Arlington Hills and Sunway.

So we chose two different locations within the community.

We wanted to have them uh see different sides of the city, and I think that worked out well, and it was very exciting to hear what some of the people had brought back in terms of you know pain points for them, and I look forward to sharing that information too as we go go further.

Um, Director, uh Commissioner Bowie has a question.

Yes, thank you, Vice Chair Joseph.

Thank you so much, um Director Floyd.

I uh just have a question regarding the stakeholders.

Um, if you could talk about just there's five stakeholder round tables, just kind of the complexities around um that stakeholder table and how um how are they engaged or invited and also um I can tie my second question that's related as well.

As as commissioners or council members, you know, we are hearing from our residents and constituents every single day.

Um, I'm really curious to know how like commissioners are being included, not only as stakeholders, but also can help with ensuring like certain partners, whether it's like non-profit community or the business community, how their voices are also part of the stakeholder round tables or this process.

Yeah, Vice Chair Joe's uh Commissioner Bowie, thank you for that question.

Excellent question.

What we did was we started with our community partners that we already have like strong relationships with at economic development and working through our district councils.

Also, we work through some of our chamber groups, we work through some of our community organizations, like you maybe would think of NDC or um, you know, I'm trying to think there are so many that we had touched on, but like for sure, like an NDC, um LEDC, etc.

So we really work to find our St.

Paul community groups that we could first start our organization and touch points with.

Then from there, we were able to build a list of you know stakeholders and and put together a very comprehensive list also from our experience on our economic development team.

So our staff members who have been working here for for a while and also understand the community members.

Um we pulled in as many people as we could from a wide variety of places, so we felt really good about that list.

And our expectation and our hope is that you will, as commissioners and council people also get a chance to give us more people to talk to.

So we're not done by any stretch of the imagination.

We just started.

So, like I mentioned, like kind of at the top of the presentation, you'll hear from the consultant soon, scheduling individual meetings with you all as commissioners, and you'll be able to talk and say, hey, I think it'll be great if you talk to you know this person in the community and get some feedback from them as well.

We want your input, and that's how we that's how we're structured.

But to begin, we started with what we knew and the people that we work closely with and put that list of stakeholders together for you.

Okay, just clarity.

Um, so it sounds like um next steps, or there will be one-on-ones with each of the commissioners.

Yeah, that's that's part of next steps.

I'll share the the next like immediate steps very shortly at the end of the presentation.

Thank you.

I'll let you know.

So, any other questions on that?

I'm so sorry.

I miss anything.

Council Vice President Young has a question.

Thank you, Chair Trost.

Well, thank you so much for the presentation.

This is um a really great layout of just what we can expect for this year, and so I really appreciate getting the rundown of that and very supportive of everything that you've presented to us today.

And I have a couple of questions.

I'm wondering on that very last slide when you uh let me see here when you draw under citywide economic development strategy in conclusion.

Like the part about we want to position ourselves to be able to compete.

Like, can you say a bit more about who we want to compete with?

Because I like just to put an example out there, it's like a whole different story to say we're competing with a city like Mankato or Minneapolis, and so, like, I think it'd be really helpful for us to be able to define what that means to us at the city, just so that we also understand who we aspire to be as a city and where we want to go to.

Absolutely.

Commissioner Jose, uh, excuse me if I should just commissioner again.

Absolutely, I agree with you.

What we're looking to try and do throughout this process is to find more uh comparable peer cities that have similar populations, similar features, similar uh city structures and dynamics that we do to be able to build that roadmap, but immediately we want to try to compete regionally, right?

Like, so we understand there's gonna be some challenges in competing against a Chicago, for example, like we just we just can't we're smaller, you know, we don't have as maybe uh broader resources, but could we compete against the Cedar Rapids?

Could we compete against the you know uh Milwaukee, some some cities to that effect?

Absolutely.

So we want to look at a regional aspect of what makes us dynamic, but there will also be a broader examination of that because peer cities exist outside of our region as well.

You know, I think that is yet to be discovered on like how do we want to be, and that's part of the process of discovery right now.

Okay, great, thank you.

Thanks for the clarification about that.

I thought that was a really great response, and I'm very supportive of that.

And on slide 10 here under Project Hickoff activities, um, the in terms of the topics that the roundtables have discussed.

You have permitting equity, downtown vitality, housing commercial corridors, which to me really covers the topics that come to mind right away, too.

And I just really wanted to uplift that in my ward, ward six in the east side.

We aren't a ward that is abundant in terms of like having large chain stores or even corporations, and so to me, it's so important to make sure that as part of that the economic development strategy does truly um have uh it's like it it really covers each of the uniqueness of the wards and and can serve each of the wards, um, because to me, like for sure, like finding out ways that we can support and boost our small business community is very important because that is what we are abundant and uh in the east side, and that's something we're very proud of and have a lot of pride in it.

So I wanted to uplift that to make sure that we don't lose sight of that.

I think that um typically, like when I think of very large plans or just even you know, ways that we can boost our cities.

Folks often tend to think about the the um larger corporations, businesses that you hear of um nationally or in in a state, and so it um the it's just so important to highlight how we can keep supporting our small businesses too, like they are the core to our city thriving as well, and even when sometimes corporations choose to leave our small businesses are still here, and so I would really like to for us to have a continued focus on that.

Yeah, sir.

Thank you for that.

Uh, I want to also give you the confidence that we're not just focusing on large scale competition.

We understand the backbone of our community is our small business community.

I get the honor of privilege to try and help these businesses every day, so I never lose sight of like who's important and all of this.

So I just want to hopefully instill some confidence that like I would never let that happen.

I want to like re-recognize that there's a uh a lot more than just attracting a Fortune 500 company or a larger company as well.

Thank you, Director Lloyd.

Um, so really quickly, is that real as I close our next steps um next week the consultant will be here for an additional set of round tables and um discussions with people that we were unable to uh connect with in the first round because there's so many, so that's positive.

Like I said, be on the lookout for the patients for each of your offices to participate individually in interviews and other ways to communicate as well.

So we really are gonna ramp that up and we really want you all to be a part of that.

Um and we don't have a long runway, it sounds long.

December feels like, you know, a million miles away, but truthfully, we're we're almost halfway through the year, so this will go quick, and we're gonna need everybody's hands on deck to help us with this.

Um, so in conclusion, like I mentioned, this is just a roadmap for us to do equitable, sustainable economic growth.

Um, we're looking at this to be more data driven.

Like I said, we oftentimes can talk about our affinity to St.

Paul and and we can share information, but we want something that can be um very rooted in data and and provide more glaring information.

Uh the implementation matrix is meant to be a living tool.

It's something that we will do and monitor and work on for years to come.

And won't this be something that we point to on the on the shelf?

And lastly, this is intended to hopefully help us think of more creative ways to close racial and economic gap, growth tax base, and again, position this compete across industries, big and small.

So thank you, Director.

Any other questions?

Council President Acre.

Thanks, Vice Chair.

A couple of questions.

One of them is just very specific to I remember the budget for this is $250,000.

Is that right?

And is that the amount of the contract?

It was $200,000.

$200,000.

Yes.

Did we structure the contract in such a way that we pay only as we receive the deliverables?

Yes.

What we did was we structured the contract to have quarterly payments, and those payments should align with bigger chunks of like deliverable work.

So it's I say should be because the schedule has you know opportunity to maybe like change a little bit, whether it's we get more work done in the period of time than we thought or less work done or whatever, it should align exactly with them being able to say we get this part of the the plan, we're receiving payment for that.

And we won't make payment unless we've received the deliverable for that period.

That is correct.

Like we we plan on you know making payment throughout the throughout the year as we receive the work being done.

So great.

And then my second question is um, what's what's the level?

I feel like the I'm appreciative of the idea that the report shouldn't sit on a shelf.

I think that's always the goal.

I think what determines whether or not something either literally or or figuratively sits on the shelf, how useful it is, is the level of specificity.

Um, like I think about the it's I think many of us can sit here and say these are the things we need to do to attract businesses to St.

Paul, sort of high-level or grow jobs high level.

But what's makes something useful is being able to make decisions and decide the trade-offs and what's you know, what is the relative value add of using land in this particular way, for example, or that particular way when everything you know could be beneficial, but we want to know how how beneficial, and we want it to be able to actually guide the work of your team on a regular basis.

So I'm curious um what what is the level of specificity that you expect?

Can you can you give us some examples of like this type of thing is what we would expect to find in this report or in the implementation matrix when you say it's a living tool that we'll use, like what what do you hope specifically that this will tell us?

Absolutely.

I expect for there to be tangible, measure measurable goals.

So, for an example that you're requesting, it would be something to the impact of create X amount of jobs through you know, investment in these types of job programs.

And so we could say we put money here, and by us putting money here, we were able to get this many people trained, which afforded for this many people to enter into the workforce.

So that level of specificity is what I hope to get throughout the entire document.

How many uh parcels of land do we own?

Okay, we own this many parcels of land, these are the best outcomes for development.

We can then say let's get these out to the community of developers for development and work on a strategy to help support that level of development, and then we can track we put out five properties out of those five properties.

We got four of them, you know, under tentative development status that's scheduled to be you know finished here, here, and here that is the granular level that the plan hopefully will give us, so we can then come to you all every year when we you know having these discussions around work plans and what we're doing, and we can point to the strategic uh strategic plan and say we're working on goal one, you know, item three on the strategic plan right now, and here's what we're planning to do for that.

One last question, Vice Chair.

Thank you, Director Lloyd Wood.

Um, one of the conversations we've been having, and I think we'll continue to have, especially with the Port Authority coming to talk to us about their recent report on industrial land, is the value relative value of industrial land um compared to other uses citywide.

Do you expect or could we ask that this strategy include guidance on what's the right balance of industrial land in a fully built city?

How to encourage that?

Um, you know, is there no net loss of industrial land policy we should consider?

Like, I think that that very much ties into economic development, but I didn't hear it mentioned in anything that you reported.

Absolutely.

Uh, Vice Chair Joe's Commissioner Naker, yes, we can ask for there to be an examination of that is something in juxtaposition to you know or excuse me, uh residential land and industrial and also other retail commercial corridors spots of land.

That is something that we haven't specifically gotten into the data on just yet in relation to that.

Like I said, we're still doing it, you know, a lot of discovery in this point.

But I can definitely incorporate that as a talking point to see how much information we can get on that too.

Thank you.

Thank you.

Great.

Any other questions, counselor?

Or Commissioner Bowie?

Thank you.

Um Vice Chair Chills.

Um I have a question just um I don't really see it covered here, and it may let me know if it's just this is something that's not part of the scope of this um of this um strategy, but I'm hearing a lot about like external like uh mapping and um creating like a landscape in terms of where investment should go.

Um, but I'm just also wondering just as you're saying, like this is gonna be a living document, a living tool.

Um, you know, do you foresee that part of the recommendations can also be some transformation or some recommendations that's connected to like internal changes?

Um, because I think about, you know, it'll be helpful.

Yes, we get a report and saying, you know, invest into this, create this program, but we're just kind of like we're we're paying for a fisher instead of learning how to fish.

And I'm just wondering, is there gonna be some translation around how we can restructure, you know, PED or restructure some of our um departments to be able to efficiently drive some of these strategies.

Um so it's not just a report and we have a compass or a roadmap, but we also are getting some feedback, some valuable feedback around what type of staffing we should be um creating, what type of programs uh we should be developing, what type of management um styles, um, you know, looking at other cities from across the country.

Uh just because I want I think would be really important is that we're not just like we're not uh looking external to like have someone be the brain trust and um ensure that we are confident in our strategies, but we have that in-house, um, and we can get to a place from managing economic development programs to like leading, you know, um, and I understand that's like a very systems change type of um ordeal, but I'm just curious if that's also what we're getting from these consultants as well.

Thank you.

I should just commissioner believe if you look at the project schedule, um, you'll see in July there's a spot for organizational review, and September, there's a space for operational review.

While this document is this project is meant to really highlight our external economic, you know, landscape, yes, and how we can compete.

There will be some touch points on how are we operating as a as a function of a city or as a function of a department.

I believe what you're looking for may not be in the full scope of this in terms of like operational review or you know, work around, but we will touch on some of those highlights.

I can definitely see how much we can get into this for what we've uh outlined as as uh deliverables, but I just want to show you which one to show you that there is a discussion around like how do we best execute?

Because I I have full agreement with you that like I want to give from a posture of just being in a space of responsiveness to being in a space of proactive leadership on economic things.

Thank you.

Appreciate it.

Oh, Chair Johnson has a question.

Yeah, thank you.

And um, while I wasn't here, I was able to still catch the presentation live.

I have a quick follow-up for you just around like in during the operational organizational review stages.

Will there also be um kind of a preface for the budget season?

I noticed that the deliverables will be in December.

Well, after the budget discussions have already taken place, and so I'm just wondering the checkpoints for staff and how that will play into our economic development team, being able to account for maybe what may come from some of the stakeholder meetings, knowing that that's right in the middle of when our uh city will be doing budget discussions, and we won't actually have like a final product product from it until the end of December.

Yeah, so Johnson, thank you for that question.

I spoke directly with the consultant in anticipation of us trying to get some data and information to respond to or give you what to respond to for the 27 budget.

Um I know we're beginning those talks, and those talks are starting to happen.

I want to be clear that I've asked for us to have things that I can give you, even though this is still being processed and completed.

So my expectation, my hope is that there will be items that along your budget discussion that I can provide for leadership, uh, Director McMahon, Director Green, on how we can, you know, try to weave some of those things into the budget with anticipation of that being inside of the final document for execution.

So we will do our best to try and get there, but um, you know, like I said, this was this is really focused on the external piece, and I just wanted to try to get something um tangible to to start and give you an update on, and there's gonna be some some pieces that get um you know fleshed out as we go along with your requests and what's the information that you're looking to gather.

So this is helpful for me.

Thank you.

Great.

Any other questions on this item?

All right.

Well, thank you so much, Director Lloyd.

I really am excited about the path ahead and um you know the consultant and uh you know where we're heading here.

So thank you so much to you and all of your staff for your work on this.

Thank you very much.

Appreciate it.

Um, we're gonna do item one next.

Item number one for discussion is resolution RES 26-786.

Resolution giving preliminary approval to conduit multifamily housing revenue bonds, 365 Winthrop Street South, Afton View Apartments Project District 1, Ward 7.

Thank you.

It looks like we have Hannah Chong here to give our presentation on this item.

Welcome.

Thank you.

Good afternoon, Chair Johnson, Vice Chair Joe, some commissioners.

I'm here to present on the Afton View Apartments request for preliminary approval for of multi-family conduit revenue bonds.

So, as a brief overview, Afton View is located at 363 or 365 Winthrop Street South in District 1 ward 7.

The project is an acquisition and rehabilitation, the developer's terrine development partners.

There's a total of 286 units, and the proposed affordability is that 100% of those units will be affordable at 60% of area median income, and 268 units are reserved for project-based vouchers, and that is based on an existing uh HAP contract with HUD.

So terrine development is requesting a preliminary approval of multifamily conduit revenue bonds.

This is a preliminary step that is needed to preserve the tax credit basis because the acquisition of the site is being conducted before the closing on the financials later this summer.

So to acquire this property, the developer went through a competitive selection bidding and would not have been able to acquire without with a closing contingent on financing.

So the property acquisition must take place prior to financial closing on any potential bond issuance and tax credit equity.

So that's why they're requesting this preliminary preliminary approval to preserve the tax credit basis and financial feasibility.

So this preliminary approval authorizes the reimbursement from the pros from the proceeds of the bonds for acquisition and thereby preserves the acquisition as part of tax credit basis.

So this is just an aerial overview of the site.

And this is the current um conditions of the building, some of the units.

So the building was um the two buildings were built in 1971, and there are 143 units each split between the two buildings, and um they're three stories tall.

Each building is approximately 131,000 square feet, and there's 393 parking spaces.

There's also an office space and an on-site Daker facility.

And the site itself has gone undergone some major rehab in the last 10 years, including window replacement, water line replacements, and most of the roof replaced, most of the roof has been replaced.

They're twin cities based real estate firm founded in 2021 with the mission to create high quality and lasting projects.

Pete Nelson, vice president of affordable housing at Terrine, is here today in case the board has any questions.

So the proposed plan is to acquire and rehabilitate Afton View.

Um the developers have submitted an application for up to 20.5 million in multifamily conduit revenue bonds.

They also anticipate to use 4% tax credit equity.

So rehab would include replacement of mechanical systems such as the boilers and water heaters, and in addition, the developers also propose to propose a site improvements on the units themselves, common areas, lighting replacements, office space, amenity spaces, and more.

And like I said earlier, the proposed affordability is that 100% of the units will be affordable at 60% AMI for at least 40 years, and the project-based vouchers that are on the 268 units will expire in 2043, and that's a term that's set by HUD based on a current HUD mortgage that's on the property right now.

But that uh those units are eligible to be renewed at the time at um in 2043 based on current HUD guidelines.

Um the developer and PED staff will also work together on the application of a sustainable building ordinance, and the developer will also prepare and submit a tenant communications plan that details construction and any possible displacement or relocation of the current residence.

So this is a rendering of the proposed landscape and picked areas.

So the unit is the unit mix will stay the same after acquisition.

There's a mix of one, two, and three bedrooms, and um, again, the two 268 units are project-based voucher units, and those have a lower income requirement.

So the developer is anticipating a private first mortgage, tax credit proceeds, cash flow from the building, a deferred developer fee, and general partner loan in order to finance this project.

26 million will be used for acquisition, which is why the preservation of the acquisition for tax credit bases is crucial to this project.

The total total development cost is estimated to be 46 million dollars.

Um just pause you there for a second, Council President Acre has a question.

Thanks, Vice Chair Jost.

Can you go back, Mr.

On one slide?

I just wanted to look at the numbers of project-based vouchers again.

So it looks like the vast almost all of them are project-based vouchers.

And in the previous slide, you talked about this will preserve affordability for um 40 years.

But then there's an asterisk that the project-based vouchers expire in 2043.

So, what was that, 17 years?

So what does that mean in terms of the vast majority of the units in this building?

So in 2043, the property will have an opportunity based on current HUD guidelines to apply again for project-based vouchers.

If they do not get project-based vouchers, then the building will remain affordable at 60%.

They'll just will not have project-based vouchers in the building.

And then the 60% AMI would apply to all of the units in the building.

That's correct.

Um if they do apply and become project-based, that would then extend their term for those units even further into the future.

Yes, that's correct.

Okay, thank you.

The and the site acquisition will take place in this month with closing on financials in July 2026.

That's when construction will also start, and it's anticipated that the construction will finish by February 2027.

So the request for the preliminary approval of bonds is before this board for action today.

So this only acts at to preserve the opportunity to count the purchase price in the tax credit basis.

So this allows the project to generate more tax credits otherwise than it otherwise would and contribute to the equity of the project.

So this action does not commit the HRA to a final bond approval or any subsequent waivers.

A public hearing and request for the issuance of bonds and waivers will be submitted at a later date.

Anyone has questions.

And you just say is the developer.

So if anyone has okay, great.

If anyone has questions for them, I'll turn over to Council President Baker.

Thanks, Vice Chair.

Not necessarily a question for the developer, but Ms.

Chang, wondering.

I know this is only preliminary approval.

It doesn't commit us, you just said that.

I think it it would be really helpful since our four percent bonds are limited.

Um, and this is true really for every project where we are considering at least when we get to the point of actually approving them.

I'd like to see um where that will set us in terms of our total amount available left and where we have that already programmed or or where it's still completely unallocated, just because um, and I know we've talked about this in the past, they're they're limited and we get increasing, it's they're increasingly competitive, so it does feel like um we're making a decision about a project, but we're also making a decision about what we'll have available for future projects and knowing how much we have left helps us balance that out.

Okay.

Um does Director Natanga or Sarah have any comments on that.

We can follow up with uh bonds.

We can follow up with you at a later date, but then we get to the approval.

Okay, any other questions.

Um, so this item is before us for approval.

Um, sorry, I figured you did okay, thank you.

Uh Chair Johnson.

Yeah, I just wanted to know.

I know that the developers are here, and so before we vote, I actually had a couple questions for them.

I guess we'll welcome the developer up.

And I guess maybe you want to introduce yourself too when you when you come up.

Thank you for being here.

Good afternoon, Chair and and Council members.

My name is Pete Nelson with Green Development Partners.

Wonderful.

Okay, wonderful.

Thank you so much for um for being here today and thank you for being able to just communicate with us about this the this particular development.

Overall for context for my colleagues as well.

This particular development is one of the larger uh project-based factor apartment buildings in Ward 7.

It also is predominantly occupied by East African residents, uh, specifically vast majority of the East African residents are Somali.

And I'm just kind of looking through the communications piece, and I just want to hear a little bit more about how you were intending to communicate with those residents, especially during the construction close and just some of the timeline pieces for you, like what the plan looks like, especially from the closing and the construction start to finish.

Cause I I don't believe that there's been that residents know this is necessarily happening.

I see a lot of things uh that are positive here, especially around regaining affordable housing and keeping that here until 2040.

But knowing that communication has been an issue in the past with this building for the residents and for the tenants that are there.

I'm just curious as to what exactly that's gonna look like moving forward.

Yeah, sure.

So so we are planning on acquiring Afton View tomorrow, where we will get give out a tenant notice to each door each door at the at the property.

Um sale management will be taking over property management at Afton View.

Um we are retaining a hundred percent of the existing staff at the property, and they also hired on a very experienced property manager that they've had on, they hired her back in April, um, who has vast affordability experience and um will be will be property manager as of tomorrow that um um will will we'll communicate with the residents.

I I wish I had a representative from our management company here, but I don't.

Um, but I could follow up with you after the meeting with our tenant notices for what we're gonna give out tomorrow once we acquire the property.

Um, during construction, we we will be using Ferric's construction as a general contractor.

They have done multiple projects in the city of St.

Paul, they're very experienced in occupied rehabs.

They we typically hold a tenant meeting 45 to 30 days prior to construction commencement specific when when FairX is planning on entering in a specific unit, they give uh a 30-day notice, a 14-day notice, and then a notice uh the day prior to when they start entering in their unit.

Um for the most part, it will be an occupied rehab.

There are 15 units at the 286 that will be converted to converted to accessible units, and that's a more uh intrusive renovation, and we will temporarily relocate those tenants into a nearby hotel and provide the meal stipends and and so forth.

Um, but that's typically that's typically how what we're thinking at this point.

And will the tenant notices be available in Somali?

We you can absolutely translate the tenant notice into Somali, yes.

I would highly recommend that.

I you know, having knocked every door in that building, you know, knowing exactly the language barriers that come through for residents there where Somali is our native language.

I'd highly recommend highly recommend that.

We we absolutely will do that, yes.

Um, as a follow-up, if I may, um, one of the things that I want to just make sure is that as this process goes forward, just that the communication between the city and the developers will remain consistent.

Um, I know there's a few different things that will be moving forward uh as the next few months come along, including things around the sustainable building ordinance and other uh items that have required communication with NPED's housing team.

Um at times there has been a little bit of a communication lapse, and so I'm just wondering what is the plan for communication with us as well.

Um I believe that you know, yes, there was a little a hiccup and misunderstanding about the sustainability ordinance, but um I've been working really closely with you and Sarah and Jenny Wolf at the city, and um we'll continue to update them as the project moves forward.

Yeah, I think that will be like you know, definitely just something that I would echo as an expectation.

Um communication with the city is indicative of what the communication looks like with future residents and individuals who live there, and so it's really important that the communication is tight moving forward.

In addition, I do want to share just I'm uh not I my vice chair is chairing today, but one of the things that is typical within our HRA meetings is the two meeting cadence.

This meeting, you know, we brought it forward in respect to the timeline that you had proposed for for us, but usually there is an introduction item and then a follow-through with that, and I intend to be able to do that moving forward so we're not rushed for time, especially on future action items that have to come up across this body.

And so I would just really appreciate your partnership with that in mind.

Absolutely, and I really appreciate what you did for us for this project today.

Thank you.

Thank you.

And overall, just really supportive of the investment that you're making in our community.

This is a really um it's an important building with a lot of families and a lot of small children, um, and honestly, has been uh a space that I have been able to spend a lot of time with with a lot of the residents that are there, and so I think that everyone's looking a little bit for a uh a fresh start and a renewal, and I think that that's really important for future development opportunities, and I'm glad that this is getting um not only to remain affordable but also getting a much needed um renovation and updating, and so appreciate the investment that you're placing there.

I uh very supportive of this today and uh appreciate folks being willing to bring this forward for an action item, even though it's uh didn't have an interjection.

So, appreciate that.

Thank you.

Thank you.

Any other questions?

Um I'll take that as a motion from Chair Johnson for approval.

Yes, great.

Um, so that's a motion for approval on this item.

Uh all those in favor say aye.

Aye, aye.

All those opposed, six in favor, zero opposed.

The resolution is adopted.

Item number three is a staff report SR 26 94.

Update to housing policy study and plan for 2026.

All right, I'll turn it over to Director McMahon.

Thank you, Vice Chair Chost.

Um, commissioners.

Just a brief update on the housing policy study, noting that multiple departments, PED, DSI, and HERO, met with council staff earlier this spring to coordinate on the housing policy study.

After discussing the goals and the scope of the study, Director Ledger provided the group with a worksheet to identify the priorities of the study.

That worksheet's completed and it's been sent to HERO, and a buyer is being assigned to be able to move forward with releasing an RFP, which is really exciting, and that after that RFP is released, there will be an evaluation committee to meet to review the responses.

And on that evaluation committee, there will be staff from both PED and DSI as well as council.

Great.

I appreciate the update.

Are there any questions from our commissioners on this update?

All right.

Um, well, I also uh thank everyone for being here today.

I want to um mention that our next meeting date, we're not meeting next week, uh, but we are meeting the week after that, so our next meeting date will be Wednesday, May 27th.

Um and with nothing else to come before us, we are adjourned.