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 $32 million to over 110 TOD projects, creating or retaining over 7,000 housing units and 2,500 jobs.

In the summer of 2017, staff identified $1.7 million in repaid TOD loans and recommended an additional competitive funding opportunity in the current year with focus on readiness with projects to begin construction by June 2018.

In August 2017, a Request for Proposals garnered 26 applications requesting a total of $11.9 million in funding. There are 17 projects located in Minneapolis seeking $7.4 million, while nine projects are located in suburban Hennepin County requesting $4.5 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, section 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 fall 2017 TOD applications received including the four recommended for funding.

Recommended Project Awards: PR00000094 – Minnehaha Creek Watershed District – 325 Blake - $500,000 - Agreement PR00000094 with the Minnehaha Creek Watershed District, will support the demolition of the existing commercial building to prepare the site for redevelopment and reconstruction of the roadway/pedestrian connections. The project, located in Hopkins, is situated near the future Blake Road Light Rail Transit (LRT) station on the METRO Green Line Extension. Program funds will be used for utilities, site work, and demolition. Total project costs are $3 million.

PR00000095 – Oppidan Investment Company – The Capp - $200,000 - Agreement PR00000095 with Oppidan Investment Company, or affiliated entity, will support a mixed-use project near the 46th Street LRT station. The project will construct a new mixed-use development with 146 multifamily units of housing and 53,500 square feet of new retail space. Program funds will be used for acquisition, utilities, public infrastructure, bicycle infrastructure, site work, landscaping, sidewalks/trails, streetscaping, stormwater, site furnishings, plaza, and transit shelter. Total project costs are $43 million.

PR00000096 – Robbinsdale Economic Development Authority–Robbinsdale Station Area Acquisition - $400,000 - Agreement PR00000096 with the Robbinsdale Economic Development Authority (EDA) is for a strategic acquisition of property located near the future Robbinsdale LRT station along the METRO Blue Line Extension. The property will be purchased and held by the EDA until a larger redevelopment site is assembled. It will also provide the ability to make transportation and pedestrian/bicycle improvements in the area. Total project costs are $500,000.

PR00000097 – G4 Partners LLC – Green on 4th Apartments - $600,000 - Agreement PR00000097 with G4 Partners LLC, or an affiliated entity, will support a mixed-income development project with 243 multifamily units. Located near the Prospect Park LRT station on the METRO Green Line, this project includes apartment units and some two-story walk-up townhouse style units. Program funds will be used for acquisition, utilities, bicycle infrastructure, site work, and landscaping. Total project costs are $55 million.

Amendment 1 to Declaration associated with Agreement A091102 - City of Maple Plain - The City of Maple Plain fulfilled the obligations of 2009 TOD Program funding for site acquisition by securing additional funds and constructing a park and ride facility in 2011, allowing for the expansion of transit service to Maple Plain. The facility is underutilized, and the City of Maple Plain is seeking to relocate, reduce the capacity, and preserve the park and ride while enabling a phased redevelopment of surrounding properties, including 140 senior and assisted living housing units, 24 market-rate housing units, and up to 40,000 square feet of commercial space.

Current Request: Negotiate three grant agreements during the period November 8, 2017 through June 30, 2020 with a total not to exceed amount of $1,100,000, and negotiate one loan agreement during the period November 8, 2017 through December 31, 2063 with a not to exceed amount of $600,000 for the implementation of the fall 2017 Transit Oriented Development projects. This request also seeks authorization to negotiate Amendment 1 to loan securing documents associated with Agreement A091102.

Impact/Outcomes: Four projects receiving awards will leverage over $102 million in private and public funding, create 389 housing units, over 53,000 square feet of commercial space, over 51 new or retained jobs, and create improved connections to support TOD in current and planned light rail and within the high-frequency bus network; and will increase the estimated market value in the Maple Plain project area by an estimated $15 million.