Saint Paul Housing & Redevelopment Authority Board Meeting – October 28, 2026

The Saint Paul Housing & Redevelopment Authority (HRA) Board of Commissioners met on Wednesday, October 28, 2026, at 2:00 p.m. in Council Chambers, City Hall. Vice Chair Saura Jost called the meeting to order at 2:04 p.m.; four commissioners were present and three were absent. Commissioner Yang was excused, and Chair Johnson and Commissioner Kim later joined during the staff report portion. The Board voted 4-0 on two resolutions, received a staff introduction to a proposed Model Cities commercial loan restructuring, and continued the 2026 third-quarter budget report to the next meeting.

Roll Call and Opening

• Present: Commissioners Noecker, Bowie, Jost, and Coleman. Absent: Commissioners Yang (excused), Johnson, and Kim.
• Chair Cheniqua Johnson joined remotely during the meeting; Commissioner HwaJeong Kim arrived during the staff report portion.

Discussion Items

• RES 26-1793 – Smith Avenue Parking Ramp easements: Sponsored by Chair Johnson. Executive Director Melanie McMahon presented the request to grant the City of Saint Paul a temporary easement via a right-of-entry permit for the Capital City Bikeway project, and to grant District Heat and Energy (or an affiliate/subsidiary) a permanent easement for heating and chilled water piping at the HRA-owned Smith Avenue Parking Ramp and Transit Center, 145 N. Smith Avenue, District 17, Ward 2. McMahon said no interior ramp access was needed, HRA parking operations would not be affected, and the two-part construction was expected to take about two months.
• RES 26-1794 – Maryland Park Apartments HOME loan actions: Sponsored by Commissioner Yang. According to the minutes, Commissioner Coleman moved adoption approving the assignment and assumption of an existing HOME loan, extension of its maturity date, subordination to a new first mortgage, and execution of related loan documents for Maryland Park Apartments at 1619 Maryland Avenue East, District 2, Ward 6.

Staff Report: Model Cities BROWNstone Commercial Loans (SR 26-236)

• Debt Administrator Jenny Wolfe presented proposed amendments to loans related to the Brownstone, a four-story mixed-use building with 35 rental housing units and approximately 20,000 square feet of commercial/retail space on the north side of University Avenue at Victoria Street.
• Background: Model Cities began operations in 1967 and has been active in community development in Summit-University and Frogtown since 1987. The commercial project was financed separately; the development cost about $5.5 million, and the HRA and city loans totaled more than $3 million.
• The HRA loan originated through a 2003 $2.5 million St. Paul & Minnesota Foundation agreement for the Housing 5000 initiative, was later tied to Green Line transit-oriented development, and $2.3 million was approved for the Brownstone in 2016. The foundation loan matures December 1, 2026, with a current balance of about $1.5 million and a $500,000 recourse obligation for the HRA. Model Cities could not obtain a private loan to repay the maturing balance; staff said the existing HRA loan also had a $1.5 million balloon that came due June 5 and was unpaid.
• Proposed restructuring: amend the foundation loan to extend it 10 years, with first payment due February 2027, maturity in December 2036, 240-month amortization, and potential forgiveness of up to $650,000 at three measurement dates if operating metrics are met. The amended HRA loan would mirror those terms, with payments due 15 days before HRA pays the foundation, 2% interest compared to the 1% rate charged to the HRA, and the HRA's first mortgage retained. Staff said the terms are contingent on forgiving two older city loans.
• Staff also proposed forgiving a $300,000 STAR loan and a $356,000 CDBG loan, and deferring a $120,000 STAR loan with payments beginning January 2037. The two forgiveness amounts total $656,000. The past-due loans placed Model Cities on the adverse lending list; it could be removed after six consecutive on-time payments.
• Staff said the deferral of the $120,000 STAR loan would reduce next year's STAR budget revenue by about $17,000, a roughly 5% variance not considered material. Staff stated that forgiving the CDBG loan would not harm the city's relationship with HUD because it was structured as a cash-flow loan and the HUD national objective had been met.

Commissioner and Stakeholder Positions

• Commissioner Noecker said she was uncomfortable with the HRA remaining in a middleman position with a large recourse obligation. She noted staff's first request had been for the foundation to deal directly with Model Cities, but the foundation declined. She called the large balloon payment structure unrealistic and, at some point, cruel, and encouraged pushing philanthropic partners to support the community; she also took responsibility for not catching the 2016 terms.
• Chair Johnson said she was supportive of Model Cities and had advocated for it behind the scenes, but stressed that any HRA recourse payment would come from public HRA dollars. She asked whether metrics failure would trigger the $500,000 recourse; staff clarified that the HRA's obligation would not be triggered by missed monthly payments, only at loan maturity in 2036.
• Commissioner Bowie praised Model Cities' deep community ties, affordable housing leadership, and low-barrier commercial opportunities for entrepreneurs in the Rondo/Frogtown/University corridor.
• Commissioner Kim said the balloon payment structure was not something she would counsel clients to take on and called it predatory, while expressing trust in Model Cities' leadership.
• Model Cities CEO Kizzy Downie and Community Development Director Dean Carlson thanked the board and described challenges: commercial tenants struggled, especially during the period around Operation Metro Surge; two leases ended and spaces were being refilled; Model Cities also pays rent in the building; and property taxes on the commercial parcel rose from about $45,000 to about $93,000 per year. The transcript at one point says 9300, but later context indicates $93,000. Downie said the organization is making its first-half property tax payment and may structure the second-half payment over five years if needed. Carlson said Ramsey County reduced the property's assessed value for taxes payable in 2027 by roughly 70 percent, which should lower taxes from the 2026 level. Downie asked the board to consider sharing more of the risk that Model Cities carries.

Staff Report: 2026 Third Quarter Budget to Actual (SR 26-237)

• Deputy Director Green began the budget presentation, noting that the board had asked for all information in one place with graphic visuals and that reporting had been adjusted. Because of time constraints, the board agreed to continue the item rather than rush the presentation.

Key Outcomes

• RES 26-1793 was adopted 4-0 (Noecker, Bowie, Jost, and Coleman voting yes; Yang, Johnson, and Kim absent).
• RES 26-1794 was adopted 4-0 on Commissioner Coleman's motion, with the same vote and absentees.
• SR 26-236 was received and filed; formal resolutions authorizing the Model Cities loan amendments and forgiveness are scheduled for November 4, 2026.
• SR 26-237 was referred/continued to the HRA meeting due back November 4, 2026.
• The next regular meeting is November 4, 2026, at 2:00 p.m. The meeting adjourned at 2:56 p.m.