Background:
History: In 1991, Hennepin County Regional Railroad Authority (HCRRA) purchased the Dome Spur railroad corridor, including the property at 301 10th Avenue South (PID 260-29-24-12-0089) from the Soo Line Railroad Company. In 2001, the HCRRA conveyed the corridor to the Metropolitan Council for the Hiawatha Light Rail Transit (LRT) project with the exception of the 301 10th Avenue South parcel.
Resolution 16-HCRRA-0010 declared property located at 301 10 th Avenue South (in the City of Minneapolis (PID 260-29-24-12-0089) as surplus and authorized staff to proceed with a disposal of the property. This parcel has a gross area of approximately 25,000 square feet (including approximately 6,400 square feet in city unopened road allowance) and is situated between 10th Avenue South and 11th Avenue South, north of US Bank Stadium and adjacent to the green and blue LRT lines. The location of this parcel is highlighted on Exhibit 1.
On August 2, 2017, the HCRRA released a Request for Proposals (RFP) for the purchase of the 301 10 th Avenue South parcel. Eleven responses were received to the RFP, which closed on August 31, 2017. The responses included:
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Proposer: Jeff Arundel, Proposed Use: surface parking lot and outdoor events venue
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Proposer: JNL Parking, Proposed Use: surface parking lot with future mixed use development considerations
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Proposer: Timeshare Properties, Proposed Use: affordable housing
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Proposer: Premier Parking, Proposed Use: surface parking lot
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Proposer: Periscope, Proposed Use: employee parking with future redevelopment considerations
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Proposer: Solhem, Proposed Use: rental housing
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Proposer: Parking Services, Proposed Use: surface parking lot with future mixed use development considerations
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Proposer: Roman Olshansky, Proposed Use: sustainable parking facility
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Proposer: Accede LLC, Proposed Use: 38-unit affordable housing project
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Proposer: Donerly, Inc., Proposed Use: surface parking lot
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Proposer: AEON, Proposed Use: 110-unit affordable housing project
A staff review panel met to consider and evaluate the 11 responses. The responses were evaluated based upon purchase price and financial terms, business terms associated with the acquisition, use or uses proposed, and experience in similar type uses or projects. Purchase prices offered by proposers ranged between $200,000 and $2,450,000. On the basis of this review, staff is recommending the negotiation of a purchase agreement with AEON.
Current Request: This request seeks authorization to negotiate Purchase Agreement A177876 with AEON for the sale of surplus property located at 301 10th Avenue South for an estimated receivable of $2,450,000.
Impacts/Outcomes: Approval of this request will allow for the disposal of surplus property not needed for HCRRA, Hennepin County or LRT uses. Further, the sale will allow for redevelopment of the parcel into affordable housing.