►
Description
Minneapolis Community Development and Regulatory Services Committee Meeting
A
Good
afternoon
welcome
to
the
regularly
scheduled
meeting
of
the
community
development
and
regulatory
services
committee
for
today,
which
is
july
26th
we've
been
joined
by
all
members
of
the
committee
council
members,
cono,
quincy
fry
reich
and
more
sami.
We
have
a
fairly
short
agenda
today,
starting
with
the
consent
agenda,
which
is
items
3
through
8.
I'm
going
to
pull
item
8
for
a
very
small
amendment.
Are
there
any
other
items?
A
Anyone
would
like
to
pull
for
discussion
or
amendments,
seeing
none
I'll
move
items
3
through
7,
all
in
favor
signify
by
saying
aye,
and
he
opposed
that
item.
Those
items
are
approved
and
on
item
8
under
sub-portion
number
3,
I'm
going
to
amend
the
contract
term
to
Federation
of
one
year
and
then
we
can
come
back
if
everything
is
good
and
extend
for
two
at
that
point
and
see
where
we're
at
on
that.
So
I
see
some
nodding
of
heads
in
the
audience
it
sounds
like
that.
Will
work.
A
Are
there
questions
about
that
amendment
on
item
8
or
any
other
questions
on
item
number?
8
Singh
none
I'll
move
item
8
all
in
favor
signify
by
saying
aye.
Any
opposed
that
item
is
approved
will
then
move
to
our
first
item,
which
is
a
discussion
item
with
the
mcd,
a
operating
committee,
which
is
a
modification
of
the
interest
rate
for
the
loan
at
the
Women's
Club.
Miss
Shaw
welcome.
B
Good
afternoon,
madam
chair
members
of
the
committee,
what
you
have
before
you
is
a
request
for
an
authorization
of
amendment
to
the
documents
related
to
setting
the
interest
rate
for
Women's
Club
of
Minneapolis
series,
2007
MCD,
a
bank
qualified
Bank,
direct
bonds
in
2007,
the
city
of
Minneapolis
and
MCD.
I
authorized
the
issuance
of
two
million
nine
hundred
fifteen
thousand
dollars
of
revenue
bonds
for
the
woman's
club.
The
interest
rate
at
the
time
was
set
up
five
percent,
which
was
fair
for
the
market
and
at
this
time
approximately
1
million
dollars
in
bonds
remain
outstanding.
A
A
Number
one
has
been
moved
for
approval,
further
comments
or
questions,
seeing
none
all
in
favor
signify
by
saying
aye
any
opposed.
That
item
is
approved
before
we
move
forward.
I'll
note:
I
was
working
off
of
an
old
agenda
and
the
numbers
were
all
off
and
the
clerk
is
confused
so
because
of
that,
I
just
want
to
make
sure
that
everyone
knows
the
consent
agenda
is
items
7
through
12,
though
the
same
item
is
just
a
different
number
and
I
just
want
to
note
that
the
amendment
was
to
item
12.
Not
item
number
8.
A
D
The
goals
with
this
amendment
are
threefold:
one
to
reduce
the
number
of
letters
that
we
had
need
to
mail,
so
saving
both
time
and
money
to
to
communicate
with
property
owners
in
a
more
timely
manner
and
three
to
take
better
advantage
of
our
new
enterprise
land
management
system.
Eventually,
this
change
could
allow
inspectors
to
write
inspection
reports,
issue,
orders
and
issue
citations
in
the
field
and
have
them
automatically
emailed
to
property
owners.
D
A
Are
there
any
questions
for
Kim
on
item
number?
Two
seeing
none.
Thank
you
for
your
report,
we'll
open
the
public
hearing
on
item
number
two,
which
is
changes
related
to
electronic
services,
notices
and
orders.
Is
there
anyone
here
to
speak
to
this
issue,
anyone
anyone
sing,
none
will
close
the
public
hearing,
councilmember
Friday
thank.
E
A
The
motion
to
approve
item
number
two,
all
in
favor
signify
by
saying
aye.
Any
opposed
that
item
is
approved
will
then
ruin
upon
two
items:
three,
four:
five
and
six.
This
is
what
screwed
up
my
numbering,
miss
Shaw,
I,
think
that
the
idea
was
to
give
people
a
sense
of
the
of
the
program
itself.
Some
people
like
me,
have
been
here
a
long
time
and
are
very
familiar
with
that.
Others
are
not
at
all,
so
just
a
general
briefing
on
face,
and
then
we
can
take
all
the
public
hearings
for
the
projects.
A
B
You
have
before
you
is
a
request
to
hold
a
public
hearing
and
pass
resolution
for
each
of
four
projects
requesting
property
assessed,
clean
energy
or
pace
financing.
The
pace
program
is
an
innovative
finance
tool
allowing
for
a
private
upfront
capital
to
pay
for
energy
efficiency
and
renewable
energy
upgrades
to
buildings.
The
clean
energy
improvements
include
building
related
energy
systems,
mechanical
systems
and
renewable
energy
systems
such
as
solar
panels.
The
amount
borrowed
for
the
upgrades
is
repaid
using
a
special
assessment
on
the
property
over
a
set
period
of
years.
A
special.
B
And
agreed
to
by
the
property
owner
and
the
property's
mortgage
holder,
the
same
called
Port
Authority
created
the
program
to
administer
pace
financing
in
the
state
of
Minnesota
in
2013,
the
port
authorized
the
issuance
of
up
to
ten
million
dollars
in
taxable
revenue
bonds
to
jumpstart
the
pace
program
and
in
December
of
2013
minneapolis
city
council
authorized
entering
into
a
joint
powers
agreement
with
the
st.
paul
port
authority
to
administer
pace
program
for
the
city
of
minneapolis
projects
per
the
agreement.
B
The
same
I'll
Port
Authority
was
designated
to
implement,
administer
and
provide
up-front
financing
for
the
program.
While
the
city
is
responsible
for
acting
the
special
assessments
necessary
to
pay
debt
service
on
the
financed
improvements
in
a
typical
pace
project,
a
client
will
evaluate
measures
that
achieve
energy
savings
then
apply
to
the
port
for
financing
the
Port
Authority
collects
applicable
finance
and
project
documentation.
That
makes
a
determination
of
a
project
is
eligible
for
pace
after
the
project
is
approved
by
the
Credit
Committee.
For
financing.
B
The
third
project
is
for
teva
investments
located
at
eighteen,
thirty
East
35th
Street
for
the
installation
of
a
solar
array
on
the
roof
of
their
facility
for
a
total
amount
of
thirty-five
thousand
dollars
to
be
repaid
in
twenty
increments
over
a
term
of
ten
years,
and
the
last
project
is
861.
East
hennepin
avenue,
also
known
as
the
miller
bag,
building
for
the
upgrade
of
or
the
installation
of
upgraded
lighting
and
hvac
systems
for
a
total
of
two
hundred
thousand
dollars
to
be
paid
in
thirty
increments
over
a
term
of
15
years.
A
There
any
questions
from
the
shock
you
make
it
sound,
so
easy
yeah,
it's
a
lot
of
work,
so
thank
you
for
all
the
work
you've
done
on
this
sing.
No
further
questions
for
Michelle,
we'll
open
the
public
hearing
on
items
3
through
6,
which
are
pace,
financing
approvals
for
four
different
projects,
as
noted
by
staff.
Is
there
anyone
here
to
speak
to
this
issue,
anyone
anyone
seeing
none,
we'll
close
the
public
hearing
council
member
fry?
A
A
C
F
Started
out
as
a
small
organization
of
community
members
and
over
the
past
eight
years,
they've
grown
to
a
registered
co-op
association
with
over
700
member-owners
they've
signed
a
letter
of
intent
with
the
building
owner
building
blocks
to
move
into
about
4,000
square
feet
of
the
ground
floor
space.
The
total
project
budget
is
approximately
1.2
million
dollars
and
today,
they've
raised
roughly
seventy
percent
of
that.
F
The
majority
of
equity
is
coming
in
the
form
of
a
five
hundred
thousand
dollar
grant
provided
by
Latino
economic
development
center,
who
received
the
money
from
the
US
Department
of
Health
and
Human
Services
for
healthy
food
initiatives.
They've
raised
about
seventy
thousand
dollars
of
equity
from
the
members.
They
have
bank
commitments
just
as
last
week
from
sunrise
bank's
insured
capital
cooperative
and
they
have
pending
loan
requests
with
community
reinvestment
fund
and
then
to
pending
grants
with
the
McKnight,
Foundation
and
Hannah.
F
If
we
approve
the
financing,
the
store
is
able
to
open
they
project
the
open
in
November
and
create
roughly
11
jobs,
some
full-time
some
part-time
and
on
all
the
full-time
jobs
would
pay
a
living
wage
and
then
the
terms
of
our
loan
would
be
as
they
meet
those
hiring
requirements.
The
loan
would
be
forgiven.
It
comes
about
26
sixty
eight
hundred
dollars
per
loan.
That
would
be
forgiven
for
Joba
me,
so
this
is
important
projects
providing
healthy
food
to
the
community.
It's
providing
neighborhood
community
members
a
chance
to
own
the
co-op
in
their
neighborhood.
B
D
A
C
Yield
to
you
counselor,
because
I
have
a
feeling
we're
saying
about
the
same
things.
This
is
a
really
good
project.
It's
a
rather
modest
investment
on
the
part
of
the
city
which
big
returns
with
their
existing
in
a
food
desert
in
many
ways,
and
to
have
this
as
a
community-based
cooperative
arrangement
and
a
verse,
diverse,
set
of
funding
streams
coming
in
to
add
support
to
the
project.
I'm
just
pleased
the
city
of
Minneapolis
can
be
a
part
of
it.
A
I
don't
feel
like
I
live
in
a
food
desert,
but
it
is
a
I
live
very
near
north,
and
this
would
be
the
co-op
that
would
be
closest
to
where
I
live
and
for
worth
co-op
to
succeed.
You
need
bryn,
mawr
golden
valley
and
the
Near
North
communities
to
all
shop
at
the
same
place,
and
this
has
been
a
dream
for
a
lot
of
people,
including
my
former
colleague,
and
a
young
in
the
making
over
a
15-year
period.
There
have
been
a
lot
of
ups
and
downs
on
the
location.
A
It's
very
difficult
and
the
margins
are
very
low
and
to
be
able
to
do
something
like
this
in
this
location,
which
has
been
a
dream
of
a
lot
of
people
for
a
long
time
for
this
modest
investment,
given
all
of
the
leverage
I
think,
makes
some
sense
and
those
who
know
me
probably
couldn't
believe
they
saw
it
on
the
agenda,
so
I
do
think
in
the
end.
There's
a
lot
of
leverage
here
for
something
in
a
community
that
quite
frankly
deserves
it.
A
I
think
so,
I'm
happy
to
move
approval
and
really
proud
of
the
work
that
our
staff
is
done,
but
mainly
really
excited
for
those
who
have
toiled
on
this
project
for
a
long
period
of
time.
So
thank
you
for
your
work
on
the
motion
to
approve
the
staff
recommendation,
further
comments
or
questions,
seeing
none
all
in
favor
signify
by
saying
aye.
Any
opposed
that
item
is
approved
will
then
move
on
to
the
deed
applications
for
the
redevelopment
grant
program.
Mr.
Carroll
welcome.
G
Thank
you,
madam
chair
members
of
the
committee
I'm
Kevin
Carroll
from
the
business
development
division
of
see
pet
I'm.
Usually
here
wearing
my
brown
fields,
half
a
couple
of
times
a
year,
but
deed
has
a
redevelopment
grant
program.
You
don't
see
me
as
often
because
the
funding
for
this
is
kind
of
sporadic,
sometimes
the
legislature
funds
it
and
sometimes
it
doesn't,
but
they
have
some
money
now
so
they're
going
to
conduct
around
they
have
about
a
million
dollars
available.
G
The
redevelopment
grant
program
is
different
than
the
brownfield
programs,
in
the
sense
that
you
can't
use
any
of
the
grant
money
to
clean
up
contamination.
It
believes
that
they're
their
own
program
and
other
programs
cover
that
this
is
more
commonly
used
for
things
like
interior
and
exterior
demolition
infrastructure,
new
sewer
and
water
lines.
Things
like
that.
It's
a
50-50
match
program.
You
calculate
how
much
deed
eligible
costs
you
have
indeed
will
give
you
a
grant
for
up
to
half
of
that.
G
Typically,
the
developer
page
of
the
remainder
we
solicited
applications
in
the
usual
manner,
with
email,
blasts
and
information
put
on
our
website
and
informational
meetings
and
that
type
of
thing
we
have
four
projects
here,
which
we
think
are
interesting.
As
far
as
we
can
tell
they're,
supported
by
city
staff
and
also
we've
heard
no
objection
from
the
neighborhood
groups
to
these
projects.
G
De
desi
set
has
about
a
million
dollars
available.
They
try
to
give
fifty
percent
of
that
to
Greater
Minnesota
projects
if
they
get
enough
Apple
and
they
typically
do
so.
These
projects
and
and
others
are
basically
fighting
for
fifty
five
hundred
thousand
dollars.
We've
got
grant
applications
here
that
probably
exceed
that
by
a
two-to-one
ratio,
but
this
is
a
hard
program
to
get
projects
to
fit
into
need
has
a
very
narrow
definition
of
redevelopment.
In
their
view,
what
they're
kind
of
looking
for
is
a
classic
situation.
We've
got
an
abandoned
industrial
building.
G
All
the
windows
are
gone.
The
roofs
gone,
it's
full
of
pigeons
and
you're
going
to
tear
that
down
to
build
something
completely
different.
We
very
often
don't
get
those
types
of
projects
we
get:
adaptive,
reuses
and
rehabilitations,
and
things
like
that.
So,
with
your
consent,
we
will
submit
these
and
see
what
deeds
staff
think
of
them
and
we
hope
to
get
one
or
possibly
two
of
them
funded
with
luck.
Mr.
G
A
H
A
Going
to
move
approval
of
the
staff
recommendation
and
and
just
note
that
every
one
of
these
projects
are
big
push
they're
all
a
big
uphill
push.
Obviously,
I'm
very
familiar
with
that
glenwood,
which
is
the
rehabilitation
of
a
whole
bunch
of
abandoned
buildings
that
should
turn
into
something
really
interesting.
A
The
hair
of
food
buildings
suggestion
that
has
de
Nord
craft
spirits
participating
in
it
would
be
a
great
thing
for
them,
and
the
north
market
proposal,
which
is
in
a
long-abandoned
site
and
council
president
johnson's
ward,
that
used
to
be
a
grocery
store,
actually
would
I,
don't
know
enough
about
the
penn
avenue
union
project
to
comment
on
it,
but
they're
all
really
important
projects
in
in
tough
locations.
It.
G
A
H
To
present
very
often
in
front
of
cdq
a
so
it's
it's
always
a
pleasure
to
be
here.
I'm
here
today
on
hennepin,
theater,
trust
or
https
request
for
a
loan
of
2.8
million
dollars
for
the
acquisition
and
renovation
of
the
former
solera
building,
which
is
located
at
909
06
and
up
an
avenue.
In
addition
to
the
request
for
the
loan,
hdt
has
made
a
request
for
a
$250,000
grant
its
staff's
recommendation
to
approve
the
terms
of
the
loan,
as
well
as
the
grant
tomahawk
president
and
CEO
of
HTTP
is
with
us
today.
H
For
several
years
now,
hdt
has
been
renting
office
and
small
space
theatrical
space
in
city
center
acquisition
and
renovation
of
Solara
building
would
create
a
permanent
home
and
allow
them
to
consolidate
their
operations
and
move
the
new
century
theater
over
to
the
celerra
building
and
the
the
celerra
building
would
also
potentially
help
with
respect
to
fundraising
and
better
serve
its
current
and
future
theater
guests
and
since
they
2005
I,
just
want
to
mention,
because
I
think
it
comes
over
Goodman
you're.
The
only
health
number
here
was
there.
H
When
we
did
the
police
with
HTT
back
in
2005
I
just
want
to
report
that
hdt
is
complied
with.
All
the
terms
of
its
lease
with
the
city
for
the
state
morpheme
advantage
theaters,
including
fulfilling
and
exceeding
performance
standards,
tracking
hundreds
of
thousands
of
people
downtown
every
year
for
a
variety
of
performance,
including
Broadway,
and
just
a
little
bit
of
background
insular
ability
itself.
The
building
is
a
31,000
square
foot
vacant,
three-story
building,
which
is
right
next
door
to
the
Orpheum
Theater
on
Hennepin
Avenue,
as
I
mentioned,
the
Hennepin
theatre.
H
Trust
intends
to
convert
the
main
floor
to
serve
trust
donors
and
subscribers
and
to
alleviate
pressure
on
the
Orpheum
lobby
and
lounge.
The
sentence
of
the
floor
would
provide
lobby
space
for
HTC
staff,
while
a
third
floor
would
be
flexible
space
for
theatrical
and
arts
education
uses
and
the
roof.
Finally,
the
roof
will
serve
as
an
outdoor
lounge
in
classroom
in
preparation
for
the
acquisition
of
Solara.
Htt
undertook
considerable
due
diligence
and
there
were
no
major
issues
found
with
respect
to
the
property
itself.
H
The
city
and
hdb
jointly
commissioned
an
appraisal
for
the
property
which
indicated
the
current
value
to
be
about
2.5
million
dollars.
The
current
assessed
value
is
roughly
2.8
million
dollars.
Htt
will
engage
in
the
capital,
will
engage
a
capital
campaign
consultant
to
conduct
a
feasibility
study
to
detail
new
fundraising
opportunities
to
be
created
by
the
project,
and
the
capital
campaign
goal
is
to
raise
five
million
dollars
over
the
next
ten
years.
H
With
the
bulk
of
the
fundraising
occurring
in
the
first
five
years,
a
major
component
of
the
capital
campaign
will
be
the
potential
naming
rights
up
for
the
donor
lounge
on
the
first
floor
of
samara.
The
trust
will
also
see
property
tax
exemption
for
all
parts
of
the
facility
that
directly
serve
the
nonprofit
mission,
which
at
the
moment
is
anticipated
to
be
the
entire
building.
So
let
me
just
take
a
minute
to
outline
the
I
just
highlight
the
financing
structure
for
the
project.
The
loan
amount
would
be
2.8
million
dollars.
H
As
I
mentioned,
the
total
project
cost
is
3.3
million
dollars.
Htt
will
provide
250
thousand
dollars
in
equity
and
there'd,
be
a
city
grant
which
I've
got
backed
with
a
second
of
two
hundred
fifty
thousand
dollars,
and
the
3.3
million
dollars
will
be
used
as
follows.
There
would
be
2.3
million
dollars
for
acquisition
of
the
building
itself
and
then
1
million
dollars
for
planning
and
renovation
costs.
Initially,
the
loan
will
be
funded
through
the
city's
development
account
and
permanent
funding
will
come
from
the
common
project,
execute
funds.
H
Ultimately,
in
order
to
do
that,
we
need
to
amend
the
common
project
that
will
to
include
the
celerra
block
and
that
amendment
would
be
for
CD
committee
in
in
September.
The
loan
maturity
date
is
eight
years
which
can
be
extended
under
certain
circumstances.
The
loan
will
be
interest
only
for
the
first
two
years.
The
interest
rate
is
3.25
percent
and
the
loan
will
be
secured
by
a
city
first
mortgage
on
the
property.
H
During
the
eight
year
period,
HTT
will
seek
a
private
fight
and
private
first
mortgage
loan
that
will
take
up
cities,
financing
and
the
loan
will
be
repaid
to
a
combination
of
capital,
support,
ongoing
fundraising
concession
revenues
and
savings
in
office.
Rent
I've
mentioned
the
city
grant
of
$250,000
a
couple
times
now
without
going
to
detail
when
the
the
terms
of
the
blocky
ideal
will
renegotiate
back
in
2014,
there
was
a
payment
by
the
owners
of
blocky
to
this
to
the
city
of
$250,000.
H
At
that
time,
several
council
members
expressed
the
desire
for
those
funds
to
be
to
go
to
HTT,
and
the
crust
has
requested
that
those
funds
be
granted
at
this
time
for
the
acquisition
and
renovation
of
the
building.
Finally,
just
a
word
of
business
subsidy.
Neither
the
grant
nor
the
loan
constitutes
a
business
subsidy,
because
the
intent
is
not
job
creation
and
then
finally,
Development
Finance
Committee
city's
development
financed
me.
He
took
it
up
last
week
and
the
committee
voted
to
support
the
staff
recommendation,
but
they
suggested
two
additions
to
it.
H
A
number
one
that
there
be
a
recapture
provision
of
250
thousand
dollars
are
the
two
hundred
fifty
thousand
dollar
grant.
If,
if
the
building
is
sold
or
repurposed
during
the
term
of
the
loan,
and
that
also
there
be
a
requirement
that
any
excess
cash
flow
after
death
service
be
used
for
repayment
of
the
loan,
that
I'm
sure
that
concludes
my
presentation.
Thank.
A
H
A
A
Instead
of
to
the
hennepin
theater
trust,
and
so
if
we
can
make
the
experience
better
for
all
of
those
that
are
attending
the
theater
and
that
they
buy
their
food
and
beverage
from
the
hennepin
theater
trust,
then
it
would
be
better
for
the
hennepin
theater
trust
to
generate
additional
sources
of
revenue
because
they
are
us.
It's
not.
Unlike
a
G
at
the
Target
Center,
unfortunately,
we
still
own
it,
but
they
operated
on
our
behalf
and
the
Hennepin
theatre.
A
Trust
has
a
similar
arrangement,
so
this
is
almost
like
us
loaning
ourselves,
money
since
we
own
theaters
and
that
doesn't
seem
to
be
changing
anytime
soon,
despite
our
best
efforts
to
try
to
do
that.
So
are
there
other
questions
or
comments
I?
Mr.
Houk
did
you
want
to
say
something:
ok,
possible,
Quincy.
Well,.
C
Thank
you,
madam
chair
I,
just
wanted
to
express
my
interest
in
support
of
this
initiative,
I
think
from
a
financial
point
of
view,
it's
common
sense
for
the
city
to
take
care
of
some
of
our
greatest
assets,
and
this
makes
a
lot
of
sense
because
there's
not
much
at
risk
for
that.
We
have
a
trusted
partnership
in
the
trust
and
and
they're
going
to
do
a
magnificent
job.
As
you
mentioned,
it's
not
about
job
creation.
This
is
about
job
preservation
and
just
moving
offices.
C
I
A
madam
chair,
councilmember,
the
building
has
been
vacant
for
about
a
year
and
a
half
now
so
there's
nothing
going
on
inside
the
building,
as
you
can
imagine,
because
of
the
work
that
we
do,
we
actually
have
to
be
close
to
our
theaters.
We
settle
shows
at
night
were
over
there
regularly.
So
this
is
actually
ideal
in
terms
of
location.
The
fact
that
it
came
on
the
market
when
it
did
you
know,
left
us
with.
We
hadn't
really
planned
for
that.
I
I
I
should
say
to
that
with,
in
addition
to
the
theater
operation,
because
we
are
leading
with
the
Walker
Art
Center
and
art
space
and
the
city
of
Minneapolis
through
your
city
coordinator
on
the
creation
or
activation
of
this
cultural
district.
This
is
going
to
give
us
a
great
hub
for
doing
that,
because
we
work
with
a
lot
of
individual
artists.
I
In
fact,
in
the
restoration
of
this
building,
we
see
a
lot
of
opportunity
and
it's
in
really
good
structural
shape,
but
there's
a
lot
of
if
you
will
decoration
that
needs
to
happen,
and
we
think
that's
a
great
opportunity
to
engage
artists
from
throughout
our
community
and
doing
that.
Yes,
thank
you.
Many.
C
I
Yeah,
madam
sure
councilmember,
I
think
you
know
they're.
There
are
several
good
reasons
to
do
this,
not
the
least
of
which
is
the
defensive
play.
We,
you
know
witness
the
lion
king
right
now
that
is
running
at
the
Orpheum
Theater
five
weeks
p
families
are
coming
downtown,
that's
exactly
what
we
want
to
see
happen.
Those
are
families
that
are
sensitive
to
what
they
bring
their
children
by
and
so
a
use
that's
incompatible
with
attending.
The
theater
works
against
our
ability
to
continue
continue
to
use
the
theater
as
a
magnet
for
people
to
come
downtown
yeah.