Background:
History: On February 12, 2003, the Hennepin County 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 $36 million to over 130 TOD projects, creating or retaining over 7,000 housing units and 2,500 jobs, and leveraging more than $1 billion in development.
Among the many benefits of TOD, the program helps reduce disparities through greater mobility and access to places to live, work, and play; decreased household spending on transportation; increased walkability for a healthier lifestyle; and diminished pollution and environmental destruction.
In January 2018, a Request for Proposals was released which garnered 34 applications requesting a total of $16.3 million in funding. There are 23 projects located in Minneapolis seeking $10.5 million, while 11 projects are located in suburban Hennepin County requesting $5.8 million.
Proposals were reviewed by a multi-agency panel consisting of Hennepin County, Ramsey County, Washington 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 and Criteria 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 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 2018 TOD applications received including the five recommended for funding.
Recommended Project Awards:
PR00000387 – Clement LLC – 318 Lake - $100,000
Agreement PR00000387 with Clement LLC, or affiliated entity, will support the redevelopment of a Minneapolis site to mixed-use along the high frequency bus network of Lake Street West and the Midtown Greenway. The project will create 44 new housing units and over 8,000 square feet of commercial space. Program funds will be used for acquisition, site work, demolition and public bike infrastructure. Total project costs are $7.9 million.
PR00000361 – City of Bloomington – BCS3 Multifamily - $250,000
Agreement PR00000361 with the City of Bloomington, will support public realm improvements in conjunction with a mixed-use project near the Bloomington Central Light Rail Transit (LRT) station on the METRO Blue Line. The mixed-use development will create 402 multi-family units of housing and over 2,000 square feet of new retail space. Program funds will be used for public infrastructure including lighting, landscaping, sidewalks/trail, streetscaping and public bike infrastructure. Total project costs are $93 million.
PR00000368 – Lake Street Apartments, LLC – 410 Lake Street W. - $300,000
Agreement PR00000368 with Lake Street Apartments, LLC, or affiliated entity, will support the high density residential project located along the high-frequency bus network of Lake Street West and the Midtown Greenway. The project, located in Minneapolis, will contain 111 units of housing affordable at 60% area median income (AMI) or less. Program funds will be used for acquisition, utilities, site work, sidewalks/trails, stormwater, and streetscaping. Total project costs are $27 million.
PR00000367 – Red Lake Band of Chippewa Indians – Mino-bimaadiziwin - $450,000
Agreement PR00000367 with the Red Lake Band of Chippewa Indians, or an affiliated entity, will support a mixed-use development project with 109 multi-family affordable units. Located near the Franklin Avenue LRT station on the METRO Blue Line, this project will also include a wellness center and the Red Lake Nation Embassy. Program funds will be used for acquisition, landscaping, streetscaping, and site furnishings. Total project costs are $35 million.
PR00000366 – Northside Partners GP LLC – Penn Avenue Union - $250,000
Agreement PR00000366 with Northside Partners GP LLC, or affiliated entity, will support a mixed-use project on the northwest corner of Penn Avenue and Golden Valley Road adjacent to the METRO C-Line Bus Rapid Transit. The project will construct 64 units of affordable housing and over 20,000 square feet of commercial/community space. Program funds will be used for utilities, acquisition, public infrastructure, sidewalks/trails, streetscaping and site furnishings. Total project costs are $15 million.
PR00000365 – Newport Midwest LLC – The Mariner - $450,000
Agreement PR00000365 with Newport Midwest, or affiliated entity, will support a mixed-income, multi-family development project near the future Opus LRT station along the METRO Green Line Extension. The project will have 246 total units, of which 55 units will be affordable to those at 60% AMI or less. Program funds will be used for acquisition, utilities, lighting, landscaping, streetscaping and site furnishings. Total project costs are $65 million.
PR00000364 – West Broadway Limited Partnership – West Broadway Curve - $400,000
Agreement PR00000364 with West Broadway Limited Partnership, or affiliated entity, will support a mixed-income development project along the high-frequency bus service network on West Broadway near a C Line Rapid Bus station. The project will construct 69 units, of which 54 units will be affordable to those at 60% AMI or less. Program funds will be used for utilities, site work, lighting, public bike infrastructure, landscaping, streetscaping, and plaza. Total project costs are $14.5 million.
Modification to 2017 TOD Program award to Lander Group — 38th Street Station - $400,000
In 2017, Lander Group, or affiliated entity, was awarded $400,000 in TOD funds as a loan for public realm improvements in conjunction with the mixed-use 38th Street Station project along the METRO Blue Line. At the time of application, the project was 100% market-rate, and able to support loan repayments. The project has changed and now includes an affordability component with 20% of the units affordable at 60% AMI or less, and can no longer support a loan. The proposed modification would provide TOD funds for public realm improvements, in the form of a grant, with no change in award amount. Eligible activities will include the portion of acquisition and demolition costs for the public realm improvements, lighting, public bike infrastructure, landscaping, sidewalks/trails, streetscaping, site furnishings and plazas.
Current Request: Negotiate two grant agreements during the period May 9, 2018 through December 31, 2020 with a not to exceed amount of $350,000 and five loan agreements during the period May 9, 2018 to December 31, 2065 with a total combined not to exceed amount of $1,850,000 for 2018 TOD projects. This request also seeks to modify the award terms from a loan to a grant for Agreement A177307 and change the contract end date from December 31, 2062 to December 31, 2020.
Impact/Outcomes: Seven projects receiving awards will leverage over $258 million in private and public funding, create 1,045 housing units, over 52,000 square feet of commercial space, 97 new or retained jobs, and create improved connections to support TOD in current and planned light rail and within the high-frequency bus network.