History: Transit Oriented Development (TOD) is a form of development that promotes a mixture of uses such as housing, retail, services, jobs and open space projects within walking distance of transit. TODs are compact and typically feature pedestrian and bicycle connections, reduced or shared parking, increased density, and building orientation towards the pedestrian environment. Benefits, many of which help to reduce disparities, include lower combined housing and transportation costs, a greater range of housing options, a reduced need to drive and own vehicles, and improved connections to employment and service destinations. For example, many past Hennepin County TOD-funded projects have provided workforce housing immediately adjacent to public transportation access or have provided transit-accessible employment opportunities.

Additionally, TOD helps create a more sustainable region by more efficient use of land and infrastructure, preservation of open space, decreased traffic congestion through increased walking, biking, and transit ridership; reducing emissions; and improved public health by creating walkable neighborhoods.

On February 12, 2003, the Housing and Redevelopment Authority (HCHRA) Board approved TOD Program Guidelines and Criteria (Resolution 03-HCHRA-04). The Guidelines and Criteria support infrastructure and development projects along the county’s transit corridors that enhance transit usage. Since 2003, the HCHRA has awarded approximately $40.1 million to over 145 TOD projects, creating or retaining over 8,300 housing units and 2,845 jobs, and leveraging more than $1.3 billion in development.

TOD guidelines require that the municipality in which the project is located approve the project seeking TOD funding, and that the project generally be in a redevelopment area or district, adopted in accordance with Minnesota Statutes, Section 469.

On April 21, 2020, the HCHRA reallocated $2,040,000 previously programmed for its TOD program and $100,000 from its operating budget to provide culturally specific small business outreach, technical assistance and emergency funding to assist local businesses survive/recover from the economic impacts of the COVID-19 pandemic (Resolutions 20-HCHRA-0013 and 20-HCHRA-0014). Subsequently, Hennepin County received a direct payment of approximately $220 million out of the federal Coronavirus Relief Fund from the U.S. Treasury (CARES Act funding). Consistent with CARES Act criteria and regulations, the county reimbursed the HCHRA for its early pandemic response so that TOD funds could be more appropriately applied towards development/redevelopment objectives (Resolution 20-HCHRA-0032).

In August 2020, a request for proposals (RFP) garnered 20 applications requesting a total of $7.7 million in funding. Fourteen projects requesting TOD funds were in Minneapolis seeking $5.8 million. Six projects were in suburban Hennepin County requesting $1.9 million.

Proposals were reviewed by a multi-agency panel consisting of Hennepin County, City of Saint Paul, Metro Transit, and Metropolitan Council staff and urban design professionals. An independent financial consultant was engaged to conduct a financial analysis, advise staff on financial feasibility, and to propose appropriate award terms.

Attachment A provides a summary of the eight applications recommended for funding.

Housing/Mixed-Use Projects: The recommended funding for the five housing and mixed-use projects below will provide 1,123 housing units including 350 affordable units, 22,000 square feet of commercial space, and 78 total new or retained jobs supporting transit-oriented communities. The total investment value of these projects is approximately $336 million.

• PR00002811 – George Group North – Village Creek - $350,000 Brooklyn Park; 83 units, including 17 affordable units; 19,000 square feet commercial space
  Served by local high-frequency and express bus routes
  
  
• PR00002812 – Bader Development LLC – West Lake Quarter - $200,000
  Minneapolis; 736 housing units, including 118 affordable units
  Located adjacent to the METRO Green Line Extension West Lake Station
  
  
• PR00002815 – Wall Development Company – Malcolm Yards Affordable Housing - $250,000
  Minneapolis; 142 affordable housing units
  Located within the METRO Green Line Prospect Park station area
  
  
• PR00002816 – Beacon Interfaith Housing – Vista 44 - $150,000
  Hopkins; 50 affordable units
  Located within the METRO Green Line Extension Downtown Hopkins station area
  
  
• PR00002817 – Rippley Richard Real Estate Development – Satori Boutique Apartments - $370,000
  Minneapolis; 75 housing units, including 23 affordable units; 3,000 square feet commercial space
  Served by local and high frequency bus routes and the future D-Line BRT  
     

Commercial Community-Based Projects:

The recommended funding for the two projects below support renovations and/or redevelopment for community-based commercial projects. The projects add jobs and critical services in areas well served by transit. Each project provides enhancements to the public realm and transit area through building design elements. The total development value of these projects is just over $4.6 million.

• PR00002810 – Ideal Development Group – Baldwin Square - $320,000
  Minneapolis; 24,000 square feet office, retail and restaurant space; 52 jobs created or retained
  Served by local and high frequency bus routes and the future D-Line BRT
  
  
• PR00002814 – City of Lakes Community Land Trust – Commercial Land Trust Initiative - $150,000
  Minneapolis; 14,000 square feet of office or retail space
  Located near several high frequency and local bus routes

Public Infrastructure Project:

The Border Avenue Extension is a strategic priority project to catalyze development in the Royalston Station Area. At this time, all necessary property owners are willing sellers for the city to acquire needed right of way to allow for the future construction of the street. The extension is also a named priority in the Southwest Transitional Station Area Plan.

• PR00002813 – City of Minneapolis – Border Avenue Extension - $350,000
  Minneapolis
  Located adjacent to the METRO Green Line Extension Royalston Station

Current Request: Negotiate eight grant agreements during the period November 11, 2020 through June 30, 2023 with a total not to exceed amount of $2,140,000.

Impact/Outcomes: Eight projects receiving awards will leverage over $340 million in private and public funding to create 1,123 housing units, over 60,000 square feet of commercial and community space, 130 new or retained jobs, and improved connections to support TOD in current and planned light rail transit, bus rapid transit, and within the high-frequency bus network.