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From YouTube: April 10, 2019 Housing Policy & Development Committee
Description
Minneapolis Housing Policy & Development Committee Meeting
A
I'm
calling
to
order
our
meeting
of
the
housing
policy
and
Development
Committee
I'm
cam
Gordon,
chair
of
the
committee
I'm
joined
today
by
committee
members,
Kevin
Reich,
Lisa,
bender,
Jeremy,
Schrader
and
Jeremiah
Ellison
who's
vice
chair
of
the
committee
committee,
has
four
items
today:
I'm
one
discussion
item,
one
consent
item
and
two
public
hearings
that
I
think
will
consider
one
public
hearing,
because
it's
about
the
same
project
but
has
to
do
with
two
different
financing
methods.
First,
we'll
take
the
consent
item.
A
This
is
a
grant
application
to
the
Metropolitan
Council
livability
community's
demonstration
account
authorizing
submission
and
priority
ranking
of
the
grant
applications
for
this
for
the
pre
development
program
for
the
upper
harbour
terminal
site
project.
Anybody
want
to
pull
that
for
discussion
or
comment
questions
seeing
none.
Then
all
those
in
favor,
please
say
aye
any
opposed,
say
no.
That
motion
carries
then
next
we
can
move
on
to
our
public
hearing
and
our
public
hearings,
and
this
has
to
do
with
the
lake
street
housing.
A
B
You,
chair
Gordon,
that
was
great
everybody.
The
reports
in
front
of
you
today
represent
the
final
two
funding
approvals
needed
to
move
this
project
forward
to
closing
Lake
Street
housing
phase.
One
will
be
located
at
the
intersection
of
West
Lake,
Street
and
Harriet
Avenue
south
in
the
Whittier
neighborhood
of
South
Minneapolis
and
Ward
10.
The
project
will
include
a
hundred
and
eleven
units
of
rental
housing,
affordable
to
households
at
or
below
60%.
B
Ami,
specifically,
the
project
includes
a
mix
of
zero
one
and
two-bedroom
units,
sixty
six
of
which
will
be
affordable
at
or
below,
60%
ami
42
units
affordable
at
or
below
50%
ami
and
three
units
affordable
at
or
below,
30%
and
ami
of
all
of
those
units.
There
are
also
six
units
of
a
pair
of
permanent
supportive
housing
for
home
and
disabled
veterans
and
three
set
aside
for
Hennepin
County,
Human,
Services
and
Public
Health
clients.
B
The
project
also
features
a
number
of
amenities,
including
bicycle
bicycle
storage
and
repair
station
for
the
residents
underground
parking,
a
green
roof
ground
floor,
walk-up
units
fronting
Harriet,
Avenue,
a
community
room,
a
pet
grooming
station
for
the
residents
an
hour
car
pedestrian
scale.
Lighting
and
business
and
fists
and
fitness
centers,
the
project
will
revitalize
what
is
currently
vacant
and
underutilized
land
into
a
robust,
higher
density,
transit,
oriented
housing
development.
The
total
development
costs
for
the
project
are
currently
estimated
at
twenty-seven
million.
B
Seven
hundred
and
fifty
four
thousand
six
hundred
and
sixty
two
dollars
developer
equity
into
the
project
includes
a
deferred
developer
fee
in
the
amount
of
$500,000
and
a
seller
note
in
an
amount
of
approximately
six
hundred
and
forty
two
thousand
dollars.
The
total
developer
fee
is
two
million
two
hundred
and
fifty
two
thousand
two
hundred
and
nineteen
dollars
and
is
in
compliance
with
our
developer
fee
policy.
B
With
respect
to
the
bond
financing,
which
is
the
first
item
up
for
the
public
hearing,
the
developer
has
requested
and
staff
are
recommending
approval
of
the
issuance
of
up
to
thirteen
and
a
half
million
dollars
in
tax
exempt
multi-family
housing
entitlement
revenue,
bonds.
The
bond
allocation
enables
the
project
to
meet
the
required
50%
test,
and
the
bonds
would
be
issued
in
two
series
series:
a
bonds
will
be
permanent
debt
to
the
project
in
an
amount
of
approximately
eleven
point.
B
Four
million
and
the
Series
B
bonds
are
an
amount
in
an
amount
of
approximately
2.1
million
in
our
representative
of
the
construction
loan.
The
bonds
will
generate
about
nine
point:
three
million
in
tax
credit
equity,
which
acts
as
a
source
of
funds
to
the
project.
The
current
status
of
the
city's
entitlement
is
shown
in
the
table
in
your
report
and
the
additional
financing
information
is
included
on
the
project,
which
is
also
in
your
packet
chair
Gordon's,
want
me
to
go
on
and
talk
about
the
TIF
financing
as
well.
Yes,.
B
B
B
The
total
development
cost
for
the
project
are
just
over
twenty
seven
million
developer
equity
into
the
project
of
five
hundred
thousand
and
the
developer
fee
of
the
two
and
a
half
million.
The
developer
has
requested
pay-as-you-go
TIF
assistance
from
the
city
to
help
pay
for
eligible
construction
costs
associated
with
the
project.
The
Lake
Street
TIF
housing
plan
establishes
a
new
housing
TIF
district
and
pending
City
Council
approval.
The
city
will
issue
a
pay-as-you-go
tax
increment
no
in
the
amount
of
one
point:
three:
nine:
seven
million
dollars
to
the
project.
B
The
pay-as-you-go
note
does
not
obligate
the
city
to
make
payments
to
the
note
holder
beyond
the
payment
of
ninety
percent
of
the
tax
increment
generated
by
the
project.
The
the
attached
tax
increment
plan
provides
a
detailed
breakdown
of
how
the
increment
will
be
distributed
and
used,
and
the
plan
was
transmitted
for
the
required
45-day
review
on
February
22nd
2019.
We
did
not
receive
any
comments,
I'm
happy
to
stand
for
questions
and
the
developers
representatives
are
here
as
well.
I,
don't.
A
See
any
questions
right
now,
so
I
appreciate
the
report
and
I
think
we
can
open
the
public
hearing
and
seeing
it
if
anybody
wants
to
come
up
and
speak
on
this
matter.
So
anybody
here
who
would
like
to
speak
on
this
seeing
no
one
come
forward,
then
I
can
help
close
the
public
hearing.
You
know
Colin
councilmember,
bender,
Thank,.
C
Can
I
could
comment
briefly
sure
these
are
in
Wharton
and/or,
this
item
this
project?
Is
it
more
ten
that
are
covered
under
items
went
into
and
the
project
has
been
through
some
pretty
significant
changes,
both
in
terms
of
its
design
and
responding
to
neighborhood
and
community
feedback,
as
well
as
changing
the
levels
of
affordability
in
the
populations
served
and
I.
C
Think
both
of
those
kinds
of
changes
have
made
the
project
really
exciting
and
I
particularly
want
to
note
more
antennas
home
to
the
I
think
only
active
VFW
resource
on
the
city,
the
VFW
hall,
which
folks
maybe
know
because
they
go
sing
karaoke
there
or
whatever
or
where.
Sometimes
we
have
board
ten
community
meetings.
But
it's
actually
a
really
important
resource
in
our
community.
A
Well,
thank
you
very
much
for
those
comments.
I,
don't
see
any
other
questions
or
comments
so
on
the
motion
to
approve
both
of
these
items,
all
those
in
favor,
please
say
aye
any
opposed,
say
no.
That
motion
carries
now.
We
can
move
on
to
our
final
discussion
item.
This
is
the
memorandum
of
understanding
with
Minneapolis
public
housing
authority
related
to
public
housing,
subsidy,
conversions,
great.
D
Thank
You
mr.
chair
members
of
the
committee,
my
name
is
Andrea
Brennan
I'm,
director
of
housing
policy
and
development
in
C
ped
on
December
7th,
the
City
Council
December,
7th
2018.
The
City
Council
adopted
a
resolution
establishing
guiding
principles
in
support
of
investments
in
public
housing
and
the
people
who
live
there
on
December
7th
28.
The
City
Council
also
directed
staff
to
negotiate
a
Memorandum
of
Understanding
with
Minneapolis
public
housing
authority.
That
is
consistent
with
the
resolution
establishing
the
guiding
principles
and
to
bring
that
back
to
the
Housing
Policy
and
Development
Committee.
D
So
that's
what
we're
doing
today
and
the
the
memorandum
of
understanding
before
you
recognizes
a
couple
of
sort
of
key
elements
here,
one
of
which
is
that
the
federal
government
has
for
decades
underfunded
the
capital
needs
of
public
housing.
I,
don't
think
we'd
be
here
today
discussing
this.
If
that
were
not
the
case,
we
also
acknowledge
that
the
federal
government
in
the
last
handful
of
years
has
the
created
public
housing,
subsidy
conversion
opportunities
that
may
allow
for
increased
federal
subsidies
necessary
to
repair
and
renovate
public
housing
units.
D
We
also
recognize
that
mPHA
is,
is
exploring
the
use
of
these
potential
subsidy
conversion
tools
and
that
we
have
heard
from
residents
of
Minneapolis
public
housing
authority
units
that
there's
some
concern
with
the
use
of
these
conversion
tools,
especially
as
it
relates
to
continued
public
ownership.
And/Or
control
of
this
really
critical,
important
housing
resource
for
the
city.
D
The
purpose
of
the
MOU
Memorandum
of
Understanding,
from
the
city's
perspective
is,
is
to
establish
conditions
for
city
support,
financial
or
otherwise,
for
public
housing
preservation
involving
these
these
subsidy
conversion
tools,
specifically
the
conditions,
relate
to
an
include
public
ownership,
and/or
control.
So
that's
really
fundamental
to
this
memory.
D
Memory
and
understanding
is
that
in
any
scenario,
to
articulate
the
city's
very
strong
interests
and
condition
of
further
support
that
there
be
continued
public
ownership,
and/or
public
control
of
again
this,
this
really
critical
housing
asset,
second
conditions
related
to
post
redevelopment
protections
for
residents
and
third,
the
requirements
that
that
are
part
of
all
of
these
subsidy
conversion
tools,
requirements
for
resident
consultation
and
protection.
So
those
are
the
key
elements
of
this
memorandum
of
understanding.
A
E
E
One,
you
know
we
did
a
resolution
a
while
back
and
I
think
it's
something
to
be
so.
People
interpreted
as
if
we,
the
city,
gave
a
green
light
to
red.
Can
you
speak
on
that
that
it
wasn't
about
that
and
we
don't
have
a
role
to
do
that
as
one
on
behalf
and
and
also
the
MOU.
The
intention
of
it
is
to
protect
tenants
to,
and
also
to
protect
public
housing
to
stay
public.
D
Sure
mr.
chair
members
of
the
committee,
councilmember
were
Sami
that
the
title
of
the
resolution
I
think
is
well,
is
meaningful
and
that
it's
establishing
guiding
principles
in
in
support
of
investments
in
public
housing
and
the
people
who
live
there
and
the
the
yes.
You
are
correct
that
the
subsidy
conversion
tools
that
are
available
to
public
housing
authorities
that
are
being
used
by
public
housing
authorities
around
the
country
are
are
just
that
they're
just
tools.
D
The
city
is
not
in
a
the
use
of
those
tools,
do
not
require
city
approval,
so
the
city
is
not
in
a
position
to
either
approve
them
or
or
not,
approve
them,
and
so
the
intention
here
of
the
resolution
is
to
just
state
the
city's
position
that
the
the
key
elements
of
you
know
what
the
city
really
wants
to
protect.
Is
this
housing
resource
for
the
people
who
are
living
there
and
and
and
however,
recognizing
that
public
housing
in
the
city
does
have
capital
needs?
It
does
require
funding
it
does
it.
D
There
are
needed
improvements
that
need
to
be
made
now
and
in
the
future
and
understanding
that
that
subsidy
conversion
tools
are
under
consideration,
but
the
resolution
and
the
MOU
isn't
doesn't
say
that
it's
a
good
idea
or
a
bad
idea
to
use
these
tools.
They
they
both
just
state
the
city's
position
that
the
the
key
fundamental
principle
here
is
protection
of
existing
tenants.
E
Mr.
chair,
right
for
and
also
we're
not
pioneers
in
this
here,
Minneapolis
or
you
happens,
the
housing
authority
of
us-
you
know
housing
authority
of
our
city
is
not
a
pioneer
in
this
process.
Can
you
talk
about
our
neighboring
city
of
st.
Paul
and
what
they're
doing
and
give
a
bit
of
context
about
that
as
well?.
D
E
A
F
Council
member
of
watch
saw
me
I.
Your
question
was
about
whether
or
not
we're
pioneers
and
I
I'm
I'm,
almost
embarrassed
to
say
no,
we're
not
and
on
this
issue,
I'd
love
to
I'd
like
to
be
pioneering
in
terms
of
the
way
that
we
can
use
their
resources
wisely
creatively
to
benefit
our
community,
but
in
this
case
on
route
in
particular,
there
have
been
a
hundred
and
eleven
thousand
units
across
the
country
that
have
already
been
converted
with
public
housing
residents
who
were
there
before
and
have
moved
back
and
in
terms
of
the
rad
process.
F
Locally
st.
Paul
has
applied
for
conversion
of
their
almost
their
entire
public
housing
portfolio
and
Dakota.
County
understand
is
also
in
the
process
of
applying
for
conversion
of
their
portfolio,
so
we
actually
we're
just
applying
right
now
for
one
building,
and
you
know
we
look
towards
the
future
to
see
whether
it's
applicable
for
other
properties
in
the
future.
Okay,.
E
I
want
to
ask
follow-up
question.
Mr.
chair,
yes,
I
mean:
are
you
in
terms
of
public
housing?
Are
you
trying
to
kick
out
your
tenants?
Are
you
trying
to
make
them
homeless?
Is
there
some
thing
that
we
haven't
heard
about
that
these
ten,
especially
the
area
twins?
Are
they
going
to
be
this
place?
I
think
I
did
kicked
out
the.
F
D
G
You
mr.
chair
and
just
sort
of
following
through
with
some
of
our
Sammy's
inquiries
and
I,
think
it's
a
giving
voice
to
a
lot
of
issues
and
concerns
not
only
trying
to
express
what
we
value
as
a
city
in
terms
of
our
poor
housing
portfolio,
we're
also
sort
of
giving
some
voice
to
issues
and
concerns
that
we've
heard
from
constituents,
sometimes
in
a
rather
heated
and
pointed
manner.
So
just
exploring
a
few
detailed
questions
and
so
from
ownership
to
what's
less
than
ownership
control.
D
Mr.
chair
council
member
reg
the
way
that
I
think
that
there
are
it
gets
a
little
complicated
in
in
the
sense
of
some
of
the
public
housing
subsidy
conversion
tools,
some
of
the
public
housing
that
use
those
tools
may
also
use
other
tools.
Financing
tools,
such
as
the
low-income
housing
tax
credit
program
and
in
those
cases,
the
ownership
structure
of
that
particular
financing
tool
requires
that
there
is
some
whoever
is
purchasing
those
tax
credits
as
part
of
the
ownership
entity.
D
So,
for
a
period
of
time
you,
which
typically
is
15
years,
there
is
the
possibility
of
having
ownership
that
includes
private
ownership,
as
well
as
some
element
of
public
ownership,
most
likely
or
nonprofit
ownership.
So,
whether
it
technically
is
owned
by
the
mPHA
is
is
did
there
may
potentially
be
a
scenario
where
mPHA
has
control
of
a
non-profit
owner?
That
is
part
of
the
ownership
entity,
but
technically
it's
not
wouldn't
be
defined
as
public
ownership.
G
G
Just
want
to
get
that
clarification
for
the
record,
I
think
it's
a
very
key
point
and
obviously
a
key
point.
Just
and
here
we
are
trying
to
explain
it.
People
who
are
very
engaged
in
this
topic
matter
think
of
how
we
might
have
to
boil
that
down
and
communicate
it
to
lay
people
or
people
in
the
in
the
public
who
might
have
a
concern.
G
A
I
have
a
couple.
Questions
to
this.
Mou
would
only
come
into
play.
It
says
here
when
the
city
has
any
financial
support
with
regard
to
the
public
housing
efforts.
Is
that
likely
for
most
projects
or
it
was
going
to
be
rare,
and
could
you
tell
us
a
little
bit
more
about
what
the
financial
support
would
include
sure.
D
Mr.
chair
the
right
now
my
understanding
and
again
Tracy
can
perhaps
speak
in
more
detail
to
this
issue,
but
MP
H
a
is
undergoing
comprehensive
strategy
for
the
preservation
needs
of
the
entire
portfolio
and
I.
Think
it's
it's
our
understanding
that
there
will
be
the
need
for
some
form
of
city
support
in
some
aspect
of
that
preservation
strategy
that
could
come
in
the
form
of
city.
D
You
know:
support
for
the
use,
for
example,
of
its
tax-exempt,
bonding
allocation
and
allocation
of
4%,
low-income
housing,
tax
credits
that
I
referred
to
earlier,
but
until
we
see
that
sort
of
broad
portfolio
strategy,
we
don't
have
any
level
any
any
more
detail
at
this
point
about
the
level
of
financial
request
that
will
be
before
the
city
in
the
future.
Do.
D
Mr.
chair,
my
understanding
is
that
is
that
the
there
one
of
the
scenarios
that's
being
considered
for
the
Eliot
twin
renovation
and
preservation
project
is
the
use
of
tax
exempt
bonding
authority
and
4%
tax
credit
equity.
So
in
that
case
those
would
be
resources
that
would
be
allocated
by
the
city
if,
if
that
were
to
be
approved,
I.
A
Appreciate
that
the
two
parts
that
I
liked
best
out
of
the
MOU
include
the
public
ownership
piece
and
then
also
the
right
of
first
refusal.
The
public
ownership
piece
includes
many
different
options
and
it
says
that
mPHA
will
commit
using
one
or
a
combination
of
the
following
and
the
one
thing
that
I
see
there.
That
seems
to
we
call
our
public
ownership.
A
Is
the
long-term
ground
lease
I
guess
I'm
concerned
that
if
they
only
had
to
choose
one
and
there's
actually
it
looks
like
there's,
eight
of
them,
I,
don't
know
I
wish
it
was
stronger
and
I
wish.
It
was
clearer
that
their
public
ownership
would
be
maintained
in
these
ways
and
the
ground
the
the
ground
lease.
You
know
where
the
mPHA
would
hold
the
land
and
they
would
never
even
let
the
nonprofit
entity
control.
That
is
some
insurance,
but
it
looks
like
they
don't
necessarily
have
to
do
that
with
every
project.
D
D
That
applies
to
an
overall
portfolio
strategy.
So
that's
why
there
are
you
know,
there's
more
than
just
one
path,
but
it's
it's.
The
process
would
be
that,
upon
request
for
any
financial
involvement
on
the
part
of
the
city,
we
would
use
this
to
make
sure
that
the
documents
related
to
city
financial
assistance
required
ongoing
public
ownership
and
control
and/or
control.
D
A
A
A
A
C
I
think
some
of
the
most
important
things
here
are
maintaining
public
control
over
the
land
and
and
then
of
course,
the
protections
specific
to
people
in
the
housing,
but
I
mean
I
was
a
toddler
when
the
federal
government
started
walking
away
from
investing
in
public
housing
and
now
I'm,
a
city
council
member
trying
to
figure
out
what
the
city
of
Minneapolis
can
do
in
the
face
of
growing
income
inequality,
federal
minimum
wage.
That
has
stagnated
communities
that
have
disinvested
in
and
so
I
just
think.
C
It's
important
to
just
remember
that
context
and
frankly,
demand
as
cities
across
the
country
that
we
see
better
investment
from
the
federal
government
in
particular.
But
other
levels
of
government
in
housing
that
is
actually
affordable
to
the
people
who
live
in
our
community
because
of
all
of
the
other
things
that
we're
having
to
absorb
funding
public
housing
in
the
city
of
Minneapolis
for
people
living
in
the
city.
Minneapolis
is
not
sustainable
for
us
as
a
city
and
I.
C
H
I
just
want
a
100%
cosign
everything
that
the
council
president
just
said:
I
I,
like
the
MOU,
because
it's
it
shows
that
our
partners
over
at
mPHA
are
sort
of
signing
up
for
a
little
bit
of
accountability,
because
I'm
going
to
use
our
mutual
and
so
I
do
want
to
thank
mPHA
for
signing
the
MOU
but
and
I
want
also
want
to
thank
customer,
Sami
and
I.
Know:
council,
vice-president
Jenkins,
for
working
on
working
on
the
MOU.
H
H
I
understand
the
practical
reality
of
funding
and
repairing
these
these
units,
but
I
also
I
also
share
the
concern
that
we
are
chipping
away
at
our
public
infrastructure
and
again
that
comes
back
to
what
level
is
the
federal
government
willing
to
put
in
to
make
sure
that
people
have
affordable,
housing
and
I'm?
Glad
that
our
local
agency
is
is
showing
at
least
more
more
effort
and
sophistication
on
that
front
than
our
federal
government.
H
But
you
know
I,
don't
inherently
support
the
idea
of
conversions
I'm,
a
little
troubled
that
that
HUD
is
recommending
that
we
do
that,
and
so
I
just
wanted
that
to
be
on
record
that
this
MOU
is
it's
a
way
for
the
city,
to
sort
of
state
its
value
in
terms
of
protecting
tenants
and
in
terms
of
making
sure
that
we
maintain
public
ownership.
But
it's
by
no
means
an
endorsement
of
conversions,
broadly
and
so.
H
E
E
As
a
body
and
I
know,
every
single
council
member
here
had
concerns
about
the
conversion
and
we're
not
here
endorsing
the
conversion
we're
doing
it
would
be
proactive
in
the
protection
of
our
tenants
and
then
the
protection
of
our
public
housing
stock.
And
what
we're
saying
in
this
memorandum
and
I
appreciate
Minneapolis
public
housing
authorities.
You
know
they're
separate
entity,
and
yet
they
came
in
and
and
co-signed
this
with
us,
and
it
was
through
long
deliberations.
It
hasn't
been
easy
and
through
the
brilliant
work
of
our
city
staff,
we
come
to
this.
E
You
know
you
know
guiding
document.
You
know.
I
have
folks
at
Elliot
twins
who
are
afraid
that
they're
gonna
be
this
place.
They
were
afraid
they've
been
told
they
were.
We
kicked
out
in
February.
Now
they
gotta
be
kicked
out
of
me
and
then
it
was
gonna
be
kicked
out
in
November.
You
know
they
are
afraid,
though,
on
this
document
I
can
go
back,
knock
on
every
single
door
and
tell
them
you
know.
E
You
know
you
should
believe
the
public
housing
authority
because
they
said
you're
not
gonna,
be
this
place
and
the
city
of
Minneapolis,
myself
and
all
the
other
council
members
are
supported.
Your
right
to
live
in
your
units.
I
think
that
message
that
clarity
will
help
a
lot
of
us
talk
to
our
residents.
I
have
17,000
units.
In
my
ward,
you
know,
I
have
relatives
live
in
public
housing?
You
know
these
are
people
who
are
near
and
dear
to
my
heart.
E
A
So
I
also
wanted
to
know
the
councilmember
where
Sami
and
I
are
scheduling
a
community
meeting
to
get
some
input.
The
one
thing
that
I'd
like
to
do
is
get
more
input
from
people
on
this,
or
at
least
a
chance
for
them
to
review
it
a
little
bit
more
and
you'll
notice.
I
didn't
decide
to
take
any
comment
and
committee.
It
didn't
seem
in
the
appropriate
place
necessarily
at
the
time,
but
we're
working
on
finding
a
location
for
April
17th.
It
could
be
a
Mathews
Park.
A
It
might
be
at
the
Cedars
we're
looking
at
a
couple
spots,
so
we'll
make
sure
to
publicize
that
what
I'd
like
to
do
today
is
move
it
forward
without
recommendation,
so
that
we
have
a
chance
to
at
least
vet
it
a
little
bit
longer
and
then
bring
it
back
to
the
council.
Meeting.
I
know
that
council,
member
or
Sami
is
anxious
to
get
this
approved
in
timing
with,
what's
happening
in
his
ward,
with
Elliot
twin,
so
I'm,
not
trying
to
delay
that
schedule
at
all,
but
I
will
make
that
motion
to
move
it
forward.