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From YouTube: August 14, 2019 Housing Policy & Development Committee
Description
Minneapolis Housing Policy & Development Committee Meeting
https://lims.minneapolismn.gov
A
Good
afternoon
calling
to
order
the
meeting
of
the
housing
policy
and
Development
Committee.
This
is
our
regularly
scheduled
meeting
I'm
joined
today
by
councilmembers,
Ellison,
Reich
and
Schrader
or
a
quorum
of
the
committee.
So
we
can
conduct
our
business.
If
you
look
at
the
agenda,
you'll
see
that
we
have
a
series
of
public
hearings
and
two
consent
items
and
I'd
like
to
take
up
the
consent
items.
First.
The
first
is
setting
a
public
hearing
for
August
28th
to
consider
ordinance
amending
title
12
chapter
244
of
the
code
related
to
housing
maintenance
code.
A
This
is
to
add
provisions
establishing
winter
protections.
The
second
consent
item
number
six
on
the
agenda
is
also
setting
a
public
hearing
for
the
same
date
to
consider
the
city
of
Minneapolis
Department
of
Housing
and
Urban
Development
consolidated
annual
performance
and
evaluation
report,
often
called
capers
we're
also
authorizing
submit
all
of
the
report
to
the
Department
of
Housing
and
Urban
Development
and
I
will
move
both
of
those
consent
items
I.
Wasn't
anybody
want
to
pull
anything
out?
Sorry,
seeing
none
all
those
in
favor
say
aye
any
opposed,
say
no.
A
That
passes
now
we'll
move
on
to
our
public
hearing
agenda.
The
first
few
are
land
sales
and
the
first
is
in
our
sight,
art
space,
ops.
Actually,
this
is
approving
forgot.
We
moved
this
one
first,
this
is
approving
a
tax
increment
financing
plan
for
the
north
side,
arts
based
lofts,
ed2,
29er,
being
Avenue,
north
and
I
believe
we'll
have
a
brief
staff
report.
Before
we
open
the
public
hearing.
B
Good
afternoon,
chair
Gordon
and
members
of
the
committee
I'm
Esther
Robarts
in
your
project
coordinator
and
c-pod
residential
finance.
Today,
the
committee
has
two
actions
to
consider
related
to
the
north
side:
art
space,
lofts
project,
a
100
unit,
multifamily
housing
development
that
will
be
located
at
229
serving
Avenue
North
in
the
Harrison
neighborhood.
The
building
will
be
five
stories
above
grade
and
will
include
a
hundred
units
of
affordable
artists,
housing,
70,
affordable
units
will
be
made
available
to
households
at
or
below
60%
ami
20
units
will
be
reserved
for
households
at
or
below
50%.
B
B
Additionally,
there
will
be
8
thousand
square
feet
of
common
space
to
support
the
residents
and
their
creative
endeavors
and
to
support
the
residential
community
Northside
art
space
loss
will
also
serve
as
an
Arts,
Incubator
and
catalyst
for
further
development
of
arts
initiatives
in
the
area.
Art
spaces.
Can
you
needn't
partner
on
the
project
juxtaposition?
Arts
is
a
nonprofit
with
a
history
of
community
building
youth,
employment
and
arts.
Training
in
the
neighborhood
Chuckster
will
have
classroom
and
event
space
in
the
building
and
embedding
community
arts
assets
within
housing.
B
The
city
of
Minneapolis
will
issue
a
pay-as-you-go
tax,
increment
note
in
an
amount
not
to
exceed
1
million
three
hundred
and
forty
three
thousand
dollars
staff
has
reviewed
the
other
sources
available
to
this
project
and
concluded
that
each
has
been
maximized
to
the
extent
possible
and
that
the
amount
of
the
TIF
recommended
is
lowest
amount
necessary
for
the
project
to
proceed.
It
is
currently
projected
that
the
tip
note
will
be
repaid
by
tax
increment
in
26
years,
the
maximum
duration
that
is
allowable
allowed
by
state
statute.
B
The
developer
has
also
agreed
to
the
city's
recapture
provisions.
The
second
staff
recommendation
is
for
issuance
of
up
to
fourteen
million
seven
hundred
thousand
in
tax-exempt
bonds
that
will
fund
the
permanent
loan
for
this
project.
The
recommended
TIF
and
housing
revenue
bond
approvals
represent
the
final
sources
of
financing
necessary
to
complete
this
project.
If
approved,
construction
is
anticipated
to
begin
in
September
2019.
A
Don't
see
any
questions
at
this
time,
thanks
for
your
report.
Thank
you
now.
This
action
requires
a
public
hearing,
so
I'll
open
the
public
hearing.
Now
is
there
anyone
here
who
wishes
to
speak
on
this
item
anybody's,
welcome
to
come
up
and
tell
us
a
little
more
about
the
project
or
what
issues
are
concerned.
You
might
have
welcome.
C
Chair
Gordon
members
of
the
committee,
my
name
is
Greg
Hamburg
and
the
senior
vice
president
of
properties
for
art
space
projects,
the
developer
of
this
project.
We
just
simply
like
to
thank
the
committee
for
your
consideration
and
thank
staff
for
their
hard
work
in
preparing
this
package.
Thank
you.
Thank.
C
A
E
A
Wonderful,
thank
you.
Seeing
no
other
comments
or
questions
I'll
take
a
vote
then
all
those
in
favor,
please
say
aye
any
opposed,
say
no.
That
motion
carries
so
we'll
move
on
to
our
second
item
and
we're
actually
going
to
combine
item
2,
&
3
together
for
the
purposes
of
the
report.
I
think
because
these
both
have
to
do
with
a
project
mean
OB
Medusa
1,
which
is
the
affordable
housing
project
near
the
Franklin,
Station
and
I.
Think
first
we'll
get
report.
A
F
All
are
related
to
minnow,
be
badoosy
wind
project
located
around
20
105
Cedar
Avenue
South
in
Ward
6,
the
venture
of
village
neighborhood,
and
the
proposed
project
is
a
six
story:
mixed
juice,
mixed
income
building
containing
a
hundred
and
ten
affordable
apartment
units,
44
of
the
units
are
60%.
Ami
42
of
the
units
are
50%
AMI
and
24.
The
units
are
30%
ami.
The
development
will
consist
of
10
Studios
15,
one
bedrooms,
55
two
bedrooms
and
thirty
three
bedroom
units,
and
it
will
have
one
level
of
underground
parking
with
60
stalls.
F
The
first
floor
will
include
the
Red
Lake
substance,
abuse,
medical,
mental
health
clinic
and
Red
Lake
band
urban
embassy,
the
projects
located
at
the
former
site
of
the
navigation
Center
and
is
notable
for
the
significant
number
of
large
family
units
and
30
percent
ami
units.
The
total
cost
of
the
project
is
approximately
42
million.
The
first
staff
recommendation
is
for
the
sale
of
the
site
side
yard
at
1820,
2nd
Street
East
to
our
LBC
Franklin
station,
limited
partnership.
The
city
acquired
a
parcel
infi
in
1931
for
the
realignment
of
hiawatha
Avenue.
F
The
current
configuration
of
hiawatha
and
the
front
of
streets
no
longer
requires
a
city
to
retain
this
right-of-way.
The
reuse
value
of
this
parcel
was
appraised
at
$50,000.
The
purchaser
requested
he
down.
They
write
down
of
the
sales
price
to
ten
dollars
in
exchange
for
free
extension
of
an
average
and
Senate
leads
to
the
city
ii.
Staff
recommendation
is
for
passage
of
a
resolution
approving
the
tax
increment
financing
plan
for
middle
bhima
DZ.
When
we're
there
pay-as-you-go
TIF
note
not
to
exceed
two
million.
F
Fifty
thousand
dollars
staff
has
reviewed
the
other
sources
available
to
this
project
and
have
concluded
that
each
has
been
maximized
to
the
extent
possible
and
that
the
amount
of
the
tip
recommended
is
a
lowest
amount
necessary
for
the
project
to
proceed.
It
is
anticipated
that
dirt
that
the
duration
of
the
TIF
district
will
be
twenty
six
years
and
the
developer
has
agreed
to
the
city's
typical
recapture
provisions.
F
The
final
staff
recommendation
is
for
the
passage
of
a
resolution
authorizing
preliminary
and
final
approval
for
the
issuance
of
tax
exempt
multifamily
entitlement,
housing
revenue
bonds
in
an
amount
not
to
exceed
twenty
two
million.
The
bond
issuance
will
leverage
just
about
just
over
14
million
in
syndication
proceeds
from
the
4%
tax
credits.
The
TIF
and
bonds
are
fine
sources
of
financing
necessary
to
complete
the
projects.
Financing,
if
approved
construction
is
anticipated
to
begin
this
fall
and
I
will
take
any
questions
you
have
I.
G
A
You
so
anybody
else
who
would
like
to
speak
to
this,
seeing
them
and
I'll
close
the
public
hearing
and
I'll
move
the
resolution.
Do
you
think
we
need
to
take
separate
votes
on
this?
Madam
Clerk,
all
right,
why
don't
we
move
the
land
sale?
First,
all
those
in
favor,
please
say
aye
any
opposed
that
carries.
Then
this
is
actually
really
a
fantastic
story,
so
I
just
want
to
stop
for
a
minute
before
I
move
the
rest
of
this.
A
Just
though,
if
we
think
back
to
what
we
were
dealing
with
last
summer
at
this
time
in
terms
of
all
the
homeless,
people
who
were
living
near
this
site
and
how
Red
Lake
was
able
to
step
forward
and
assist
us
with
the
creation
of
the
navigation
Center,
so
that
we
could
help
those
people
who
were
there
and
work
on
that
and
the
dream
at
that
time,
we
all
knew
in
fact,
I
think
you
got
delayed
a
little
bit
because
of
the
navigation
Center
appreciate
that
enormous
Lee,
but
was
to
put
in
an
apartment,
so
there
would
be
permanent,
stable,
affordable
housing
and
the
affordability
of
this
project
is
amazing.
A
So
thank
you
so
much
and
with
that
little
speech,
then
I'll
move
item
three,
which
is
actually
approving
three
separate
resolutions
and
authorizing
the
redevelopment
contract.
Any
questions
on
that
all
right,
all
those
in
favor,
please
say
aye
any
opposed,
say
no.
That
motion
carries-
and
that
brings
us
to
our
fourth
item,
which
is
another
public
hearing,
and
this
is
another
fairly
large
and
significant
project
with
lots
of
players
involved.
H
Good
afternoon,
chair
Gordon
and
committee
members,
I'm
Rebecca
prowl
I'm,
a
senior
project
coordinator
in
C,
ped
and
I'm
gonna
start
off
today
noticing
that
our
Minneapolis
fire
station
number
one
located
in
East
out
downtown
East
at
five
thirty
south.
So
third
Street
was
starting
to
be
too
small
for
the
operations
our
fire
department
needed
with
the
increased
residential
growth
and
business
activity
in
East
town,
the
fire
department
identified
a
need
for
a
larger
station
and
one
that
could
accommodate
additional
apparatus
to
service
the
growing
area.
H
At
the
same
time,
Sherman
Associates
was
negotiating
the
terms
of
a
purchase
agreement
for
the
surface
parking
lot
adjacent
to
fire
station
number
one.
The
parking
lot
and
the
fire
station
make
up
the
majority
of
the
block
bound
by
3rd
Street,
South
5th
Avenue
South,
Portland,
Avenue
and
Washington
Avenue
Sherman
approached
the
city
with
a
proposal
for
a
mixed-use
redevelopment
project
covering
the
parking
lot
and
Fire
Station
number
one
site.
H
The
project
would
incorporate
a
new
fire
station,
one,
a
90
unit,
affordable
housing
project,
a
312
space,
public
parking
ramp,
a
22
story,
marker
8
housing
tower
with
238
units
in
approximately
7,000
square
feet
of
commercial.
On
the
first
floor
at
Portland
and
Washington
today,
I
am
before
you
with
several
city
council
actions
related
to
accomplishing
this.
H
C
H
Already
on
there
look
at
that,
so
the
pink
here
in
this
corner
is
fire
station.
So
this
is
third
Avenue
third
Street
South,
sorry
and
5th
Avenue
south
I'll
start
with
the
fire
station
number
one.
The
new
fire
station
number
one
will
move
the
station
less
than
a
block
from
the
corner
of
3rd
Street,
South
and
Portland
to
3rd
Street,
south
and
5th.
The
new
fire
station
will
be
incorporated
into
this
larger
mix
juice
project
with
parking
below
and
housing
above.
H
This
requires
highly
coordinated
development
and
construction
management,
best
achieved
by
a
single
developer
and
a
single
general
contractor.
Therefore,
the
city
negotiated
purchasing
a
completed
turnkey
fire
station
number,
one
from
the
developer
for
12
million
dollars
and
built
two
spitty
city
specifications.
The
developer
plans
to
begin
construction
of
the
new
fire
station
in
January
of
2020
and
will
comply
with
the
city's
standard,
Civil
Rights
requirements
in
its
construction.
H
Second,
the
current
fire
station
number
1
to
ensure
continuous
operation
of
a
fire
station.
The
city
will
not
sell
the
current
station
until
after
the
new
station
is
operational.
Once
the
fire
station
moves
station
operations
to
the
new
station,
the
city
will
sell
the
current
fire
station
to
the
developer
for
the
fair
use
value
of
six
hundred
and
eighty
thousand
dollars
after
the
sale.
The
developer
will
demolish
the
station
to
build
the
Portland
at
third,
affordable
housing
project.
H
H
No
there's
the
I'll
get
to
this
in
a
second,
but
the
affordable
housing
project
is
six
stories.
Four
stories
are
shown
above
the
fire
station
from
the
elevation,
so
the
fire
station
has
two
floors,
but
it
takes
three
stories
of
an
affordable
housing
project
to
accommodate
the
clearance.
That's
Florida
ceiling
clearance
that
the
fire
station
needs
for
their
apparatus.
So
the
fire
station
has
two
stories
that
take
three
stories
of
residential
for
accommodating
their
needs.
Okay,.
H
Third,
the
Portland
at
there
at
affordable
housing
project,
the
Portland
at
third,
affordable
housing
project
will
be
a
twenty
five
million
dollar
six
story.
Building
with
90,
affordable
rental
units.
Seventy
two
of
the
units
will
be
affordable
at
sixty
percent
of
the
area.
Median
income
eighteen
will
be
affordable
at
or
below
fifty
percent
of
the
area
median
income.
These
eighteen
units
will
be
available
to
households
with
incomes
as
low
as
thirty
percent
ami.
H
The
report
today
recommends
authorizing
the
issuance
of
tax
increment
revenue
notes
to
Sherman
associates
or
an
affiliate
identity
in
a
principle
about
of
not
to
exceed
11
million
dollars.
This
tip
request
will
only
assist
the
construction
of
the
90
affordable
units,
while
the
tax
increment
generated
by
three
project
components
being
the
affordable
housing,
the
market
rate
housing
and
the
public
parking
ramp
will
be
used
to
finance
the
TIF
notes.
The
funds
will
only
be
used
to
construct
the
affordable
housing
staff
acknowledges
that
this
is
an
uncommon
approach
to
capital
assembly
for
an
affordable
housing
project.
H
Current
projections
indicate
that
the
TIF
notes
will
be
repaid
over
22
years,
which
is
less
than
the
26
year.
Maximum
allowed
by
state
statute
and
the
developer
is
agreed
to
the
city's
proposed
TIF
recapture
provision
and
will
adhere
to
the
city's
contracting
provisions
on
the
construction
contract
for
the
affordable
housing.
The
project
will
remain
affordable
for
a
minimum
of
30
years.
A
A
I
You
chairman
Gordon
councilmembers
and
I'm
George
Sherman
Sherman
associates.
This
is
a
very
interesting
project
that
involves
affordable
housing,
a
new
fire
station
market
rate
housing
that
is
all
integrated
into
one
development.
There
are
very
few
of
these
done
in
the
country.
I
think
this
is
going
to
be
a
great
example
of
how
to
do
good
urban
planning
and
integrate
a
number
of
different
component
stood
the
fire
station,
as
the
herd
has
taken
a
long
time
to
go
through
the
design
process
with
the
fire
department.
I
A
lot
of
cost
review
to
make
sure
the
city
was
getting
a
very,
very
good
value
on
the
fire
station
and
also
incorporate
growth
needs
that
the
city
needs
for
that
East
End
of
downtown.
It
is
a
complicated
project
that
involves
having
to
build
the
fire
station
first
before
we
can
do
the
affordable
housing,
but
at
the
same
time
we
have
to
bring
on
this
structured
parking
ramp
in
the
high-rise
building.
The
developer
is
it's
a
pay-as-you-go
gift?
No,
the
developer
is
capitalizing
the
pay-as-you-go
tiffin
all
independently.
I
We
are
borrowing
that
from
our
own
resources
to
put
into
the
affordable
housing.
So
it's
a
significant
amount
of
using
the
market
rate.
Housing
help
pay
for
the
affordable
housing
component
of
it
I'm
here
to
answer
any
particular
questions
that
you
have
about
the
project
or
about
the
company.
Thank
you,
I!
Don't.
A
See
any
questions
from
committee
members
right
now?
Thank
you
so
much
for
being
here
and
for
all
the
work.
That's
gone
into
this
by
everybody.
Up
to
this
point,
seeing
no
other
questions
or
comments,
then
I'll
move
close.
The
public
hearing
then
I'll
ask
if
there's
any
comments
or
anybody
would
like
to
make
a
motion.
Councilmember
Goodman.
D
Thank
you.
Mr.
chair
I'm
not
gonna,
make
a
motion
because
I'm
not
supporting
the
request,
but
I
do
just
want
to
make
a
couple
of
comparisons
and
make
a
couple
of
comments.
First
of
all,
I
have
no
issue
with
the
developer
and
the
work
they're
doing
I
think
they
do
great
work.
I
think
they've
done
great
work,
downtown
I.
Think
the
structure
of
this.
For
a
ten
point,
six,
seven,
eight
nine
million
dollar
TIF
district-
is
about
as
good
as
it's
going
to
get
for
district
of
this
size.
D
I
just
fundamentally
disagree
that
we
should
spend
more
money,
ten
point
something
million
dollars
on
this
one
project.
Then
we
have
in
the
entire,
affordable
housing
trust
fund
on
a
regular
year
and
ultimately,
there
might
be
some
places
where
we
find
it
to
be
too
expensive
to
build
affordable
housing,
because
that
kind
of
tax
increment
could
go
a
lot
farther
with
a
lot
more
projects
in
other
locations.
D
I
commend
the
council
member
of
the
Ward
and
the
staff
and
the
develop
or
for
doing
affordable
housing
at
the
site,
but
at
some
point
it's
just
too
expensive
and
asking
for
tax
increment
in
this
amount,
in
my
opinion,
is
just
too
expensive.
We're
talking
about
moving
hundreds
of
people
to
this
location
and
we're
not
going
to
have
the
money
in
our
budget
to
pay
for
police
fire.
Public
Works
we're
not
going
to
have
money
in
the
school's
budget
because
they
serve
that
money.
D
Moving
into
this
location,
I
find
it
different
than
the
two
projects
that
I
was
not
here
to
vote
for
earlier,
although
I
would
have
voted
for
both
of
those
projects,
ultimately
because
I
believe
those
are
projects
that
are
transforming
areas
of
market
failure.
Even
though
the
first
project
is
ten
houses
from
the
ward
that
I
represent,
Harrison
has
not
seen
new
development
in
a
long
period
of
time,
and
this
is
a
transformative
project
for
that.
D
Neighborhood
I
think
you'd
be
very
pressed
to
say
that
East,
downtown
or
the
Mills
district,
surrounded
by
projects
that
the
Sherman
and
associates
and
others
have
done,
is
an
area
of
market
failure.
It's
not
even
an
area
of
market
failure
for
affordable
housing,
there's
the
st.
Anthony
Mills
Apartments,
there's
manual,
housing,
there's
project
for
Pride
and
living
all
within
blocks
of
this
location.
So
for
me
this
is
just
simply
too
much
money
to
be
spent
in
this
location
to
get
affordable,
housing
and
I
think
the
money
could
ultimately
be
better
spent.
D
Generally
speaking,
I'm
not
a
great
fan
of
tax
increment.
Everyone
knows
that,
but
on
some
projects
like
the
two
earlier,
those
are
projects
that
are
going
to
be
transformative
for
neighborhoods
that
have
not
seen
a
lot
of
development.
In
this
case
I.
Just
don't
think
you
can
say
that
to
be
fair,
I
haven't
talked
to
anyone
else
on
the
council
about
it,
I'm
not
lobbying
it.
D
I
just
feel
like
I
need
to
stay
true
to
who
I
am
with
as
it
pertains
to
the
use
of
tax,
increment
and
I
feel,
like
anything
other
than
that,
would
have
just
been.
You
know,
being
quiet
because
I
like
the
developer
and
I,
just
don't
think
that's
who
I
am
and
I
can't
be
that
person
on
this
issue
either
Thank
You
mr.
chair.
Thank.
A
You
very
much
appreciate
you
raising
your
voice
and
sharing
your
thoughts,
any
other
comments
or
questions
from
anybody.
Then
I
move
move
this
item
forward
with
the
associated
resolutions,
all
those
in
favor,
please
say:
aye
aye,
any
opposed,
say
no.
That
motion
carries,
and
that
concludes
the
business
before
us
today.
So
this
meeting
is
adjourned.