The meeting’s most pressing topic was the resolution, RES 25-1275, addressing a settlement agreement with homeowners Ray and Carolyn Collins. The homeowners had previously secured a forgivable loan of $33,230 for rehabilitation work on their property on Igho Hart. However, the completed work was deemed unsatisfactory and inconsistent with both the contract and set guidelines, as confirmed by third-party inspections. This prompted the necessity for a settlement to resolve the matter.

Director Nicolle Newton introduced the resolution, pointing out that while settlements of this nature are rare for the HRA, they sometimes become essential. The proposed agreement involves discharging the original loan and providing the Collins with $86,372 to hire a new contractor, thereby releasing all claims between the homeowners, the HRA, and the City of St. Paul. The enforceability of the agreement does not obligate the homeowners to use the funds for correcting the deficiencies, and the HRA will have no further commitments beyond the settlement amount. Funding for this resolution will be drawn from the HRA’s general fund. The resolution was approved unanimously, with six votes in favor, after which the meeting transitioned to other topics.

The session continued with an introduction to a conduit bond project for Nova Classical Academy, highlighted by Director Newton. The academy seeks up to $25 million in conduit bonds to refinance previous commitments and finance a new two-story building expansion, which will connect to the existing facility via a skyway. The expansion will include a storm shelter, locker rooms, meeting spaces, and flexible classrooms. Notably, the project has already received approval for necessary amendments to its master plan and required variances from the zoning committee. The total anticipated project cost is approximately $25.33 million, with the school contributing $4.025 million.

Debt manager Ginny Wolf explained the process, emphasizing that the HRA acts only as a conduit for these bonds, which are limited revenue obligations allowing borrowers to benefit from tax-exempt interest rates. The HRA assumes no repayment risk, and the bonds will be secured solely by the borrower’s revenues. The HRA will collect related fees, including a closing fee, upon issuance. The process requires further approvals from both the HRA board and the city council, as well as a public hearing, with final financing anticipated to close in October.

Dr. Brett Wedland, executive director of Nova Classical Academy, elaborated on the project, focusing on the need to enhance the current facilities without increasing student enrollment. Despite having a strong waitlist of approximately 1,500 students, the academy aims to maintain its educational environment by improving existing infrastructure and addressing issues such as traffic hazards and overcrowding.

The discussion also covered the demographics of Nova Classical Academy’s student body, with about 50% residing in St. Paul, primarily from Wards 2 and 3, and the rest coming from nearby areas. The school’s demographics closely mirror those of the city, rather than the broader public school system.

Next on the agenda was the refinancing of bonds for Twin Cities Academy. Director Newton introduced this item, followed by a presentation from the Planning and Economic Development department. Twin Cities Academy, serving 540 students in grades six through twelve, seeks to issue up to $15 million in conduit revenue bonds to refinance bonds issued in 2015. This refinancing aims to lower annual payments by extending the maturity date from 2050 to 2065, without introducing new funds or construction projects.

Ms. Wolf explained the financial structure, clarifying that the bonds are not backed by city revenues or taxing powers, and the HRA will collect fees from the issuance. The refinancing proposal has passed a credit committee review. A public hearing is scheduled for the following week, where further discussions and potential approvals will occur.

Ms. Luth, the executive director of Twin Cities Academy, expressed gratitude for past support and outlined the need for additional revenue to support growing educational demands post-pandemic. She emphasized the academy’s focus on maintaining current enrollment levels and enhancing programs, including college preparatory courses and mental health services, to meet the increased needs of students.