History: On July 28, 2016 the Hennepin County Housing and Redevelopment Authority (HCHRA) adopted resolution 16HCHRA0028R1 to accept the transfer of $18,000,000 from Hennepin County for the purpose of land acquisition, environmental cleanup of property, development, construction and the purchase of parking stalls for the North Minneapolis Community Wellness Center (CP 1004688).

The resolution also authorized Land Exchange Agreement A165725 with Estes Funeral Chapel for the acquisition of property and the development of the southwest corner of Penn Avenue North and Plymouth Avenue North and the construction of site development and a “shell” building.

As a wood framed structure, the Estes Funeral Chapel “shell” building provides a unique opportunity to include a significant percentage of workers from the Hennepin County Productive Day Enterprise Program in framing the structure.

MN Stat Sec. 471.345, Subd. 8 allows the Housing and Redevelopment Authority to award construction contracts to a firm certified as a Small Targeted Group Business at a contract price no greater than five percent of the county’s estimated price for procuring the services in the open market and not under the set-aside program.

The county negotiated with Noor based on an “open book” process wherein the county had full access to Noor’s subcontractor and supplier bids. Noor solicited multiple firms for each scope of work including from known certified Small Business Enterprise firms, including small women and minority owned firms. The $2,800,000 not to exceed amount reflects a competitive market price in accordance with the set-aside statute.

Noor Construction Group is certified as both a Small Business Enterprise (SBE) under the CERT Program and a Small Targeted Group Business by the Minnesota Department of Administration. It has experience successfully working with ex-offenders, having contracted with Sentence To Service Homes to construct affordable housing.

Current Request: This request seeks authorization for the Executive Director to utilize set-aside contracting authority under MN Stat Sec. 471.345, Subd. 8 and award a contract to Noor Construction Group, for a not to exceed amount of $2,800,000, to construct the Estes Funeral Chapel.

Impact/Outcomes: Approval of this request advances county policies that promote employment of ex-offenders. Through the set-aside contract with Noor, ex-offenders with a relevant background in the construction industry will be recruited through the Productive Day Enterprise Program to be employed as part of the crews that will frame the Estes Funeral Chapel