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 $38.5 million to over 140 TOD projects, creating or retaining over 7,500 housing units and 2,675 jobs, and leveraging more than $1 billion in development.

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, Section 469.

In January 2020, a request for proposals (RFP) garnered 20 applications requesting a total of $11.2 million in funding. Fifteen projects requesting TOD funds were in Minneapolis seeking $7.4 million. Five projects were in suburban Hennepin County requesting $3.8 million.

Proposals were reviewed by a multi-agency panel consisting of Hennepin County, Ramsey County, Metro Transit, and Metropolitan Council staff and urban design professionals. An independent financial consultant was engaged to conduct a financial analysis, advise staff on financial feasibility, and to propose appropriate award terms. The evaluation process also included close coordination between the TOD Program, Affordable Housing Incentive Fund, and HOME Investment Partnerships programs to support as many priority projects as possible meeting the goals of each respective program.

The 2020 HCHRA budget includes $2.2 million in funding for the TOD Program (Resolution 19-HCHRA-0054); $500,000 of these funds were reallocated to establish the Hennepin County Small Business Relief Program (Resolution 20-HCHRA-0013). Attachment A provides a summary of the five applications recommended for funding.

Housing Projects

The recommended funding for the two housing projects below will redevelop just under 8.5 acres of land into 811 housing units including 141 affordable units and 27 total new or retained jobs supporting transit-oriented communities. The total development value is over $278.4 million.

• PR00002188 – Calhoun Towers Development, LLC – West Lake Quarter - $250,000
  Minneapolis; 736 housing units, including 118 affordable units Located adjacent to the METRO Green Line Extension West Lake Station
  
  
• PR00002189 – Ron Clark Construction, LLC - Shady Oak Crossing - $250,000
  Minnetonka; 75 housing units, including 23 affordable units
  Located within the METRO Green Line Extension Shady Oak Station area

Commercial Community-Based Projects

The recommended funding for the three projects below support expansions, renovations and/or redevelopment for community-based service providers. The projects add jobs, expand the service capacity of each organization, including job training and incubator space, and increase critical services in areas well served by transit. Each project provides enhancements to the public realm and transit area through building design elements. The total development value of these projects is $33.1 million.

• PR00002176 – Family Tree Clinic – Family Tree Clinic Expansion - $350,000
  Minneapolis; 16,900 square feet commercial/office space; 45 jobs created or retained
  Located near several high frequency and local bus routes
  
  
• PR00002177 – Juxtaposition Arts – Juxtaposition Arts Campus Acquisition - $400,000
  Minneapolis; 40,000 square feet office/community space; 45 jobs created or retained
  Served by local and high frequency bus routes and the future D-Line BRT route

• PR00002178 – Minneapolis American Indian Center – Minneapolis American Indian Center Expansion - $450,000
  Minneapolis; 50,000 square feet office/retail/community space; 55 jobs created or retained
  Located within the METRO Blue Line Franklin Avenue Station area.    

Current Request: Negotiate five grant agreements during the period May 13, 2020 through December 31, 2022 with a total combined not to exceed amount of $1,700,000.

Impact/Outcomes: Five projects receiving awards will leverage over $311 million in private and public funding to create 811 housing units, over 106,000 square feet of commercial and community space, 170 new or retained jobs, and improved connections to support TOD in current and planned light rail transit, bus rapid transit, and within the local and high-frequency bus network.