Background:
History: On February 12, 2003, the Housing and Redevelopment Authority (HCHRA) Board approved the Transit-Oriented Development (TOD) Program Guidelines and Criteria. The Guidelines and Criteria for these funds support infrastructure and development projects along the county’s transit corridors. Since 2003, the HCHRA has awarded approximately $29 million to over 100 TOD projects, creating or retaining over 7,000 housing units and 2,500 jobs.
Resolution 16-HCHRA-0047 (adopted December 13, 2016) included $2.2 million to fund the 2017 TOD Program.
In January 2017, a Request for Proposals was released, and garnered 26 applications requesting a total of $14.3 million in funding. Twenty projects are located in Minneapolis seeking $10.6 million, while six projects are located in suburban Hennepin County requesting $3.7 million.
Proposals were reviewed by a multi-agency panel consisting of Hennepin County, Metro Transit and Metropolitan Council staff. An independent financial consultant was engaged to conduct a financial analysis, advise staff on financial feasibility, and to propose appropriate award terms.
TOD guidelines require that the municipality in which the project is located adopt a resolution supporting the application for TOD funding, and that the project generally be located in a redevelopment area or district adopted in accordance with Minnesota Statutes, Chapter 469.
Awards are recommended to be made as either a grant or loan. The type of loan, if applicable, will be dependent upon the project’s first mortgage as well as the opportunity to maximize the county’s investment in the project.
Attachments A and B provide a summary and map of the 2017 TOD applications received including the seven recommended for funding.
Recommended Project Awards:
A177307 – Lander Group – 38th Street Station - $400,000
greement A177307 with the Lander Group, or affiliated entity, will support redevelopment of sites immediately adjacent to the 38th Street Station on the Blue Line. The project will construct a new mixed-use development with housing, retail and office space. Additionally, the project will reconstruct the existing bus station and create two new plaza spaces that connect to the light rail transit (LRT) platform. Program funds will be used for lighting, bicycle infrastructure, landscaping and sidewalks/trails. Total project costs are over $35 million.
A177308 – Community Housing Development Corporation – East Town Apartments - $330,000
greement A177308 with Community Housing Development Corporation, or an affiliated entity, will support development of 169 new affordable housing units on an existing surface parking lot. The project, located in downtown Minneapolis within walking distance of the U.S. Bank Stadium Station on the Blue and Green LRT Lines and along several high frequency bus corridors, will include amenities such as a community room and playground. Program funds will be used for utilities, site work, demolition, lighting and bicycle infrastructure. Total project costs are $34.8 million.
A177309 – G4 Partners LLC – Green on 4th - $400,000
Agreement A177309 with G4 Partners LLC, or an affiliated entity, will support a mixed-income development project with 243 multi-family units. Located near the Prospect Park LRT station, this project includes apartment units and some two-story walk-up townhouse style units. Program funds will be used for utilities, bicycle infrastructure, site work and landscaping. Total project costs are $56 million.
A177310 – Bloomington HRA – Knox & American - $400,000
Agreement A177310 with the Bloomington Housing Redevelopment Authority is for the Knox & American project, which is phase III of a multi-phase redevelopment near the future American Boulevard station along the Orange Line Bus Rapid Transit (BRT) corridor. The project will develop 248 units of mixed-income rental units, a 125-room hotel and retain an existing 8,600 square foot restaurant. Program funds will be used for utilities, public infrastructure, wayfinding, lighting, bicycle infrastructure, site work, landscaping, sidewalks/trails, streetscaping, and site furnishings. Total project costs are over $45 million.
A177311 – Northside Partners GP – Penn Avenue Union - $200,000
Agreement A177311 with Northside Partners GP, or an affiliated entity, will develop vacant lots adjacent to the future Penn & Golden Valley station on the C-Line BRT. The mixed-use project will create 64 units of mixed-income housing and approximately 9,500 square feet of commercial space. Program funds will be used for acquisition, utilities, public infrastructure, lighting, bicycle infrastructure, site work, landscaping, sidewalks/trails, stormwater and streetscaping. Total project costs are $15 million.
A177312 – SW Station Partners, LLC – Southwest Station Apartments - $300,000
Agreement A177312 with SW Station Partners, LLC, or an affiliated entity, will redevelop a vacant commercial site next to the existing Southwest Station Park and Ride and future Green Line Extension LRT station. This mixed-use project will add 222 mixed- income units and nearly 13,000 square feet of retail space. Program funds will be used for acquisition, utilities, public infrastructure, lighting, bicycle infrastructure, site work, stormwater and landscaping. Total project costs are $60 million.
A177313 – YouthLink– YouthLink-Downtown View Apartments - $170,000
Agreement A177313 with YouthLink, or an affiliated entity, is a mixed-use project consisting of 47 new affordable housing units for homeless youth and the expansion of YouthLink’s youth service center. Program funds will be used for lighting, bicycle infrastructure, site work, landscaping, sidewalks/trails, streetscaping, site furnishings and an emergency light/call station. Total project costs for the YouthLink expansion are $6 million.
Current Request: Negotiate two grant agreements during the period May 3, 2017 through December 31, 2019 with a total combined not to exceed amount of $570,000, and negotiate five loan agreements during the period May 3, 2017 through December 31, 2062 with a total combined not to exceed amount of $1,630,000 for 2017 TOD projects.
Impact/Outcomes: Seven projects receiving awards will leverage over $250 million in private and public funding, create 1,128 housing units, 74,350 square feet of commercial space, 334 new or retained jobs, and create improved connections to support Transit Oriented Development in current and planned light rail and bus rapid transit station areas and within the high-frequency bus network.