Community Development Committee Agenda

Standing Committee of the City Council, Minneapolis, Minnesota

Regular Meeting

December 12, 2006

1:30 p.m. - Room 317 City Hall

NOTE: All cellular telephones, pagers and BlackBerry devices to be switched to a non-audible function during Council and Committee meetings.

Committee Members Present: Council Members Goodman, Benson, Samuels,
Remington, Gordon, Lilligren (quorum 4)

Council Committee Coordinator: Irene Kasper (612) 673-2219

Public Hearings 1:30 p.m.

1. 17th Avenue Housing LLC (re Keeler Apartments, 317 - 17th Ave SE):

Consider resolution for the issuance of up to $11,700,000 of 501(c)(3) Tax Exempt Revenue Refunding Bonds and up to $800,000 of Taxable Revenue Refunding Bonds to refinance a 44-unit multi-family rental housing development.

Action Taken: Approved.

2. Southeast Minneapolis Industrial (SEMI) Redevelopment & Tax Increment Finance Plans for Pooling in Bioscience Sub-zone:

a) Consider resolution approving Modification No. 8 to SEMI Area Redevelopment Plan, Modification No. 1 to the SEMI Area Phase 1 TIF Plan #69, Modification No. 2 to the SEMI Area Phase 2 TIF Plan #72, Modification No. 2 to the SEMI Area Phase 3 TIF Plan #79 & Modification No. 1 to the SEMI Area Phase 5 TIF #91; b) Approve prepayment of the Bedford Street Townhomes Tax Increment Financing note; c) Increase CPED appropriation in the SEMI Phase 3 Fund by $85,000 ( Also in W&M/Budget)

Action Taken: Approved.

3. Parcel D East Redevelopment Contract (re Park Ave E Lofts Site):

a) Consider approval of revised land sale terms for Park Ave East Project, 201 Park Ave S and authorize execution of an Amended and Restated Redevelopment Contract between the City and Sherman Associates, Inc. (or an affiliate) and such other documents as are necessary to implement actions in the staff report;
b) Consider approval of contingent sale of a perpetual easement across City-owned land at 711 - 2 nd Ave S for $15/square feet to Sherman Associates, Inc. (or an affiliate);
c) Direct that the easement sale proceeds be used to pay or reimburse the Department of Public Works for certain ramp enhancements and the associated expenses of selling the property, with the remaining balance deposited into the Parking Fund (Also in T&PW as receive & file item).

Action Taken: Public hearing on the Parcel D East Redevelopment Contract continued to 1/16/2007 & action postponed to 1/16/2007; Extended Redevelopment Contract with Brighton on Parcel D East to 1/31/2007.

Consent Items

4. Mpls Public Housing Authority Board of Commissioners:

Confirm Mayoral appointment of Judy Karon as Chair, for a term of 1/1/2007 to 12/31/2009.

Action Taken: Approved.

5. 2007 Issuance of Tax-exempt Revenue Bonds:

Authorize staff to take certain actions throughout 2007 in order to utilize tax-exempt revenue bond financing for various City industrial -manufacturing projects (Also in W&M/Budget)

Action Taken: Approved.

6. Small Business Loan Programs:

Authorize renewal contract with Mpls Consortium of Community Developers, extending the partnership for another five years, and authorize an allocation of $135,000 to extend the partnership on small business loan programs for activity in 2007 (Also in W&M/Budget)

Action Taken: Approved.

7. Emerging Entrepreneur Loan Program Pilot in Mpls:

a) Authorize contract on the partnership of the City of Minneapolis with Community Reinvestment Fund on expanding the Capital Acquisition Loan (CAL) Program through the Emerging Entrepreneur Loan Program Pilot; b) Authorize allocation of $325,000 to CRF from Hilton Legacy Funds as part of the CPED 2007 budget; c) Authorize an Advance Commitment Agreement with CRF that will permit CAL loan activities in 2007 (Also in W&M/Budget)

Action Taken: Approved.

8. 425 - 20th Ave NE Single Family Home Construction:

Accept low bid of AA Contracting, Inc in the amount of $178,310 (Also in W&M/Budget)

Action Taken: Approved.

9. Emergency Power Modification at Target Center:

Accept low bid of Ridgedale Electric, Inc. in the amount of $ 232,000.00 (Also in W&M/Budget)

Action Taken: Approved.

10. Southeast Minneapolis Industrial Area (SEMI)/University Research Park Infrastructure:

a) Authorize the acquisition through negotiation all of 700 29 th Ave SE and portions of properties at 504 29 th Ave SE, 518 Malcolm Ave SE, 520 ½ Malcolm Ave SE, 501 Malcolm Ave SE, and 600 Malcolm Ave SE to be used for Malcolm Ave and Granary Road right of way, totaling approximately $516,000 (funded by $258,000 in Mpls Industrial Land and Employment Strategy (MILES) program funds and $258,000 in state bond redevelopment grant funds administered by State of Minnesota Department of Employment and Economic Development (DEED); b) Increase CPED appropriations in the Community Development 595 Levy Fund by $258,000 from available fund balance & increase the 2006 Revenue Budget & increase appropriation in the State Grant and Loan Programs Fund by $258,000 (Also in W&M/Budget)

Action Taken: Approved.

11. Upper Harbor Terminal Operating Budget for 2007:

Approve budget (Also in W&M/Budget)

Action Taken: Approved.

12. Environmental Remediation Grant Applications outside of Fall 2006 Cycle:

a) Authorize submission of applications to the Hennepin County Environmental Response Fund for 1800 Plymouth Avenue Townhomes Project, the Archdale Apartments Project and the Heritage Park Redevelopment Project - Phases 3 and 4; b) Approve resolution authorizing execution of agreements to implement the Hennepin County Environmental Response Fund (Also in W&M/Budget)

Action Taken: Approved.

13. Metropolitan Council LRT Land Assembly (CMAQ) Grant Funding Reallocation Request:

Authorize a request to the Metropolitan Council to reallocate $750,000 in federal CMAQ funds awarded to fund land acquisition for an extension of Snelling Avenue at the 46 th Street LRT station area (Also in W&M/Budget)

Action Taken: Approved.

14. Proposed Loan Restructuring and Reassignment for Community Housing Development Corporation’s (CHDC) Affordable Housing Project (re Slater Square, 1400, 1412, 1416 and 1425 Portland Ave S):

Approve restructure of both the Tax Increment Contribution Loan of $2,535,000 and the Operating Subsidy Loan of $2,000,000 as follows: reduce interest rate from 2.5% to 1%, extend loan term to 30 years and assign project debt to CHDC Slater, LLC.

Action Taken: Approved.

15. Proposed Stabilization, Loan Restructuring and Reassignment for Twin Cities Housing Development Corporation’s (TCHDC) Affordable Housing Project (re Elliot Avenue Cooperative, 2101, 2105, 2106, 2108, 2109, 2116, 2216 & 2221 Elliot Ave S):

Approve restructure & reassignment of deferred CDBG project debt in the amount of $695,736.

Action Taken: Approved.

16. Tax Forfeited Land Acquisition:

Authorize a Memorandum of Understanding between the City and Hennepin County related to the acquisition of tax forfeited land for $1.00.

Action Taken: Deputy Director of CPED requested, in conjunction with a member of the CD Committee, to meet with the Chair of the Hennepin County Board of Commissioners in advance of signing the current memorandum of understanding to find out if there’s any leeway with regard to how many properties the City might be able to acquire. In lieu of being able to acquire any more properties, the staff recommendation is approved.

Discussion Items

17. African Development Center (ADC):

a) Authorize the execution of a contract for the partnership of the City with the ADC on establishing the Alternative Financing Loan Program (AFLP) as part of the Citys small business assistance programs; b) Authorize allocation of $20,000 for the AFLP business loan activities in 2007 from CPED Business Finance Fund; c) Authorize funding transfers in the amount of $467,656 to finance the initial projects in the AFLP (Also in W&M/Budget)

Action Taken: Approved.

18. 2700 E Lake LLC (re Coliseum Building):

Approve amendment to the terms of the loan deferring the principal and interest payments until 1/2008 and then interest only payments be made for 12 months to accommodate a lower than projected building cash flow (Also in W&M/Budget)

Action Taken: Approved.

19. 2006 Affordable Housing Trust Fund (AHTF) Project:

Approve up to $6,297,500 AHTF and up to $150,000 from the Non-Profit Development Assistance & authorize execution of necessary documents: a) $530,000 from AHTF & $30,000 of Non-Profit for Abbott View by Plymouth Church Neighborhood Foundation; b) $182,600 from AHTF for Buri Manor Apts by Central Community Housing Trust (CCHT); c) $400,000 from AHTF for Currie Park Lofts Phase I by Fine Associates LLC; d) $332,000 from AHTF & $30,000 from Non Profit for Dundry House & Dayton Apts by Hope Community Inc; e) $345,400 from AHTF for Echo Flats by Community Housing Development Corporation; f) $400,000 from AHTF and $30,000 from Non Profit for Franklin Portland Gateway Site C – Franklin Steele Commons by Hope Community Inc & CCHT; g) $400,000 from AHTF for 333 by Sherman Associates, Inc.; h) $400,000 from AHTF for Longfellow Station Phase IA Workforce Housing by Capital Growth Real Estate LLC; i) $1,104,000 from AHTF for Minnehaha Apartments by Metro Plains Development LLC; j) $495,000 from AHTF for 1822 Park by CCHT; k) $496,000 from AHTF for 2011 Pillsbury & $30,000 of Non Profit by Alliance Housing, Inc; l) $542,500 from AHTF for Slater Square by CHDC Slater LLC; m) $670,000 from AHTF & $30,000 from Non Profit for Van Cleve Court Apartments West (Phase II) by Van Cleve Court Apartments West Limited Liability Company (co general partners are Project for Pride in Living, Inc and Cabrini House).

Action Taken: Approved.

20. Green Institute Section 108 HUD Loan:

Ways & Means/Budget Committee recommending authorization for a new agreement with Green Institute, effective 12/1/2006, to address delinquent principal balances.

Action Taken: Postponed two cycles (to 1/16/2007).

21. Land Sale (1011 E 28th St):

Report referred back ( which was forwarded without recommendation) re authorizing sale of property to Delores Holmes for $3,000.

Action Taken: Deleted from agenda.

NOTE: The Special Community Development, Health, Energy & Environment and Zoning & Planning Committee meeting of December 12, 2006 begins at 2:30 p.m. to receive information on CPED's Five-Year Business Plan (See separate agenda )

Notice: A portion of this meeting may be closed to the public pursuant to Minnesota Statutes Section 13D.03 or 13D.05.

Next Regular CD Meeting: 1/2/2007

Next City Council Meeting: 12/22/2006

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Last updated Oct. 18, 2011