| | | | | | | | Housing and Redevelopment Authority Board Action Request 19-HCHRA-0021
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| | | | | | | | Item Description: 2019 TOD funding recommendations-neg 9 TOD grant agmts, 5/15/19-12/31/21, NTE $2,600,000; neg 1 TOD loan agmt, 5/15/19-12/31/66, NTE $250,000; amd agmts A166555 and A111086 modify award terms; sup app to 2019 HCHRA budget |
| | | | | | | | Resolution:
BE IT RESOLVED, that the unused portion of the 2016 Transit Oriented Development (TOD) program allocation to the City of St. Louis Park (Agreement A165443) for the PLACE project (Resolution 16-HCHRA-0018), in the amount not to exceed $75,000, be rescinded and reallocated for distribution under the 2019 TOD program as described herein; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that $575,000 in prior year TOD program loan repayment proceeds be reallocated for distribution under the 2019 TOD program as described herein; that a supplemental appropriation to the 2019 Hennepin County Housing and Redevelopment Authority (HCHRA) budget in the amount of $630,000 be authorized; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate TOD Grant Agreements PR00001153 with the City of Crystal, for the Bass Lake Trail project, with the amount not to exceed $50,000; PR00001161 with the City of Brooklyn Center, for Brooklyn Center Opportunity Site public infrastructure, with the amount not to exceed $595,000; PR00001163 with the Brooklyn Park Economic Development Authority, for the Brooklyn Park Plaza project, with the amount not to exceed $55,000; PR00001154 with the City of Eden Prairie, for the Eden Prairie Town Center TOD Employment Access project, with the amount not to exceed $150,000; PR00001151 with CB LM Redevelopment Limited Partnership, or affiliated entity, for the Gateway Northeast project, with the amount not to exceed $650,000; PR00001155 with Wellington Management, Inc., or affiliated entity, for the Midtown Corner project, with the amount not to exceed $200,000; PR00001156 with Northside Artspace Lofts, LP, or affiliated entity, for the Northside Artspace Lofts project, with the amount not to exceed $350,000; PR00001152 with Northgate Development, or affiliated entity, for Regional Apprenticeship and Training Center project, with the amount not to exceed $250,000; and PR00001160 with the City of Bloomington, for the South Loop Business Expansion project, with the amount not to exceed $300,000, during the period May 15, 2019 through December 31, 2021; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate TOD Loan Agreement PR00001159 with Amber Apartments Limited Partnership, or affiliated entity, for the Amber Apartments project, with the amount not to exceed $250,000, during the period May 15, 2019 through December 31, 2066 contingent upon closing on project financing prior to December 31, 2021; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Amendment 1 to Agreement A166555 with Wall Development Company for the Harris Building Food Hall and Office project, extending the contract period from June 30, 2019 to June 30, 2020, with no change in the not to exceed amount of $300,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Amendment 2 to Agreement A111086 with Emerge Community Development for the Emerge Career and Technology Center project, reducing the remaining loan principal by up to $270,000 and modifying loan documents accordingly; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment and related documents on behalf of the authority; and that the Controller be authorized to accept and disburse funds as directed. |
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| | | | | | | | Background:
History: Transit oriented development (TOD) is a form of development that promotes a mixture of uses such as housing, retail, services, jobs, and open space projects within walking distance of transit. These projects are compact and typically feature pedestrian and bicycle connections, reduced or shared parking, increased density, and building orientation towards the pedestrian environment. Benefits, many of which help to reduce disparities, include lower combined housing and transportation costs, a greater range of housing options, a reduced need to drive and own vehicles, and improved connections to employment and service destinations. For example, many past Hennepin County TOD-funded projects have provided workforce housing immediately adjacent to public transportation access or have provided transit-accessible employment opportunities.
Additionally, TOD helps create a sustainable region by more efficient use of land and infrastructure, preservation of open space, and increased use of greener modes of transportation with benefits including decreasing congestion through increased walking, biking, and transit ridership; reducing emissions; and improving public health by creating walkable neighborhoods.
On February 12, 2003, the Housing and Redevelopment Authority (HCHRA) Board approved TOD Program Guidelines and Criteria (Resolution 03-HCHRA-04). The Guidelines and Criteria support infrastructure and development projects along the county’s transit corridors that enhance transit usage. 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.
In January 2019, a request for proposals garnered 36 applications requesting a total of $15.2 million in funding. Twenty-six projects requesting TOD funds were in Minneapolis seeking $11.7 million. Ten projects were in suburban Hennepin County requesting $3.5 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 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 in a redevelopment area or district adopted in accordance with Minnesota Statutes, Chapter 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.
Attachment A provides a summary of the 10 applications recommended for funding. The 2019 HCHRA budget includes $2.2 million in funding for the TOD program (Resolution 18-HCHRA-0043); additional funding in the amount of $650,000 (prior year loan repayments and unused funding awards) is also recommended for award herein, bringing the total 2019 funding recommendation to $2.85 million.
Housing/Mixed-Use Projects
The recommended funding for four housing and mixed-use housing and commercial projects below will redevelop four acres of contaminated land and/or buildings, create 501 housing units, including 300 affordable units, and over 25,000 square feet of commercial space for up to 41 jobs in walkable neighborhoods well-served by transit. The total development value of these projects is $118.5 million.
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PR00001159 – Amber Apartments Limited Partnership - Amber Apartments - $250,000
Minneapolis; 81 housing units, including 76 affordable units
- PR00001151 – CB LM Redevelopment LP - Gateway Northeast – $650,000
Minneapolis; 129 housing units, including 79 affordable units; 8,500 square feet commercial space
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PR00001155 – Wellington Management, Inc. - Midtown Corner - $200,000
Minneapolis; 191 housing units, including 40 affordable units; 8,600 square feet commercial space
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PR00001156 – Northside Artspace Lofts, LP – Northside Artspace Lofts - $350,000
Minneapolis; 100 affordable housing units; 8,000 square feet amenity space
Commercial Projects
The recommended funding for two commercial projects below will redevelop or reuse 10 acres of vacant or underutilized land and create or retain an estimated 146 jobs accessible by transit. The total development value of these projects is $24 million.
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PR00001152 – Northgate Development – Regional Apprenticeship and Training Center - $250,000
22,000 square feet commercial/office space; 10 jobs created or retained
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PR00001160 – City of Bloomington – South Loop Business Expansion - $300,000
154,000 square feet commercial/office space; 136 jobs created or retained
Infrastructure Projects
The recommended funding for four infrastructure projects below will create pedestrian and bicycle connections between planned light rail and bus rapid transit stations and over 3 million square feet of retail/office space, over 1,400 housing units, over 9,500 jobs, and parks and open space. The total investment value of these projects is over $6 million.
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PR00001153 – City of Crystal – Bass Lake Road Trail - $50,000
Reconstruction of a multi-use trail in the Bass Lake Road LRT station area
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PR00001154 – City of Eden Prairie Eden Prairie Town Center - $150,000
Pedestrian and bicycle improvements in the Eden Prairie Town Center LRT station area
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PR00001161 – City of Brooklyn Center – Brooklyn Center Opportunity Site - $595,000
Public infrastructure to facilitate redevelopment near a C-Line BRT station
- PR00001163 – Brooklyn Park Economic Development Authority – Brooklyn Park Plaza - $55,000
Public infrastructure to facilitate redevelopment near the 85th Avenue METRO Blue Line LRT station
Project Amendments
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Amd 1 to Agreement A166555 - Wall Development Company - Harris Food Hall - $300,000
Agreement A166555 with Wall Development Company supports the renovation of the existing Harris Machinery Warehouse building into a destination food hall and small office. The project, located near the Prospect Park LRT station, also adds greenspace and a trail connection. Approximately 40 jobs will be created. 2016 TOD Program award funds will be used for utilities, site work, sidewalks/trails, stormwater, and building stabilization to preserve the existing façade. Total project costs are $6.375 million. Amendment 1 to Agreement A166555 extends the contract from June 30, 2019 to June 20, 2020, with no change in the 2016 TOD Project award amount of $300,000, allowing the project to proceed after delays in obtaining land use approvals.
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Amd 2 to A111086 - Emerge Community Development - Emerge Career and Technology Center - $400,000
Amendment 2 to Agreement A111086 would forgive the remaining 2011 TOD Program’s loan balance of $270,000. Due to substantial changes in the project’s original financing further loan repayments are financially infeasible.
Current Request: Negotiate nine grant agreements during the period May 15, 2019 through December 31, 2021 with a total not to exceed amount of $2,600,000 and one loan agreement during the period May 15, 2019 to December 31, 2066 with a not to exceed amount of $250,000 for 2019 TOD projects; Amendment 1 to Agreement A166555 extending the contract period to June 30, 2020 with no change in the not to exceed amount of $300,000; and Amendment 2 to Agreement A111086 forgiving the remaining loan amount.
Impact/Outcomes: Ten projects receiving awards will leverage over $148 million in private and public funding to create 501 housing units, over 200,000 square feet of commercial space, 177 new or retained jobs, and improved connections to support TOD in current and planned light rail transit, bus rapid transit, and within the high-frequency bus network.
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