Community Development Committee Agenda

Standing Committee of the City Council, Minneapolis, Minnesota

Regular Meeting

October 28, 2008

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. Hollywood Theatre Redevelopment Plan (2815 Johnson St NE & 2800 & 2819 Johnson St NE):

a) Consider resolution approving Plan for the long-term, stable reuse of the Hollywood Theatre and related properties to achieve a stable long-term reuse; b) Authorize $255,000 from the appropriated 2008 Community Development Block Grant for the Great Streets program to acquire 2819 Johnson St NE ( Also in W&M/Budget

Action Taken: Approved.

2. Land Sale (3343 Fremont Ave N):

a) Approve sale of property for estimated $145,000 to qualified Home Ownership Works (HOW) Program purchaser, subject to the following conditions: 1) land sale closing must occur on or before 60 days from the date of offer acceptance; 2) payment of holding costs of $150 per month from the date of offer acceptance to the date of closing if land sale closing does not occur on or before 60 days from date of offer acceptance. The sale conditions may be waived or amended with approval of the Community Planning & Economic Development (CPED) Director; b) Approve a second mortgage affordability loan in accordance with the HOW Program guidelines of not more than $30,000 for the purchaser if necessary.

Action Taken: Approved.

3. Land Sale (929 - 3rd Ave NE, Old Third Ave Townhomes Project):

Approve revised recommendation for sale of property for $79,650 to Twin Cities Habitat for Humanity, Inc, subject to conditions (CD Action Taken 10/7/2008: Postponed to 10/28/2008 for public hearing).

Action Taken: Forwarded without recommendation.

Consent Items

4. Classification of Tax Forfeited Land:

Approve resolution to a) Classify properties as non-conservation land; b) Convey one Hennepin County tax-forfeited property to the City of Minneapolis for the fair market value; c) Rescind the release of the property located at 2808 Washington Ave N (approved by the City Council on 9/26/2008) and approve conveyance to the City of Minneapolis for the fair market value; d) Place two Hennepin County tax-forfeited properties on hold for 6 months for CPED; & e) Authorize title registration.

Action Taken: Approved.

5. Environmental Remediation Grant Applications, Fall 2008:

Approve resolution in support of the University of Minnesotas application to the Hennepin County Environmental Response Fund for the Como Student Community Cooperative ( Also in W&M/Budget

Action Taken: Approved.

6. East Phillips Neighborhood Revitalization Program:

a) Approve use of $45,380 of Hennepin Countys "Second 7.5%" NRP funds to support construction of a multicultural community center in East Phillips Park; b) Increase appropriation by $45,380; c) Authorize any contracts or agreements needed to implement this request ( Also in W&M/Budget

Action Taken: Approved.

Discussion Items

7. 2009 Low Income Housing Tax Credits:

Approval to preliminarily reserve Year 2009 Federal Low income Housing Tax Credits totaling $1,300,366 to the following projects: a) Lowry Apartments, 2510 Polk St NE ($461,029); b) Creekside Commons, 5400-5412 Stevens Ave ($538,304); c) Clare Midtown, 3105 23 rd Ave S ($150,517); d) PPL Near North, scattered sites ($150,516).

Action Taken: Approved.

8. Bassett Creek Valley Exclusive Development Rights for city-owned property in Linden Yards and Impound Lot:

a) Contingent upon Ryan Companies paying a $20,000 good faith deposit, grant Ryan exclusive development rights to Linden Yards and the Impound Lot for a period of 5 years provided annual progress is demonstrated, provided that because of the many complexities of the site, either Ryan or the City can walk away at the end of the approximately 8 month research period, whereupon Ryans $20,000 deposit will be refunded; b) Direct staff to continue its analysis of Ryans proposal, negotiate mutually agreeable terms and conditions for one or more redevelopment agreements under the basic framework in the report and return to the Council for authorization and further direction when appropriate; c) Contingent upon Ryan paying up to $50,000 as an administrative fee to help pay for City expenses, direct staff to explore the cost and plan to relocate all of Linden Yards and all or portions of the Citys impound facility, and report back within 8 months (unless extended by mutual agreement) with a tentative budget; d) Direct staff to determine the fair market value of the Linden Yards and Impound Lot under potential development scenarios, and report back within 8 months; e) Authorize & direct staff to allow environmental testing and monitoring wells on the Linden Yards site to facilitate future grant applications for Phase I; & f) Express a willingness to consider providing tax increment financing assistance for the project in the future ( Also in T&PW, W&M/Budget

T&PW Action Taken 10/28/2008: Amended recommendation (c) to read as follows:
c) Contingent upon Ryan paying up to $50,000 as an administrative fee to help pay for City expenses, dDirect staff to explore the cost and plan to relocate all of Linden Yards and all or portions of the City’s impound facility, and report back within 8 months (unless extended by mutual agreement) with a tentative budget; Sent forward without recommendation the amended action, with the comment that the Transportation & Public Works Committee has no objection to the 8-month process laid out for the study of the proposal and referring to the Community Development Committee priority consideration regarding the remainder of the recommendations.

CD Action Taken: Approved staff recommendation, as amended by T&PW, along with direction to staff to read as follows:
Any City development agreement(s) with Ryan Companies should work to include the following principles:

Construction Related Workforce and Contractor Diversity

• Meaningful employment and contracting goals for any construction on the Linden Yards, and Impound Lot sites, including apprenticeship and local hiring goals

• Payment of prevailing wages by all contractors and sub-contractors

• Establishment of a First Source Hiring and Referral System, including hiring of ex-offenders and workforce inclusion activities focused on Northside residents

Establishment of a program to connect Northside neighborhood contractors to construction activities.
Housing

• The mix of ownership and rental units, and units affordable to very low, low, and moderate-income households in each proposed development phase and integration of affordable units throughout the proposed developments

• Consideration of nonprofit developers for all housing developments

• Promotion of long-term affordability through land leases, deed restrictions and other means

Energy efficiency and green design and construction.
Workforce Opportunities

• Labor neutrality and card check arrangements

• Employment and hiring goals addressing workforce diversity and local hiring

• Workforce development plan that addresses job training, job/employer linkages, local hiring strategy and referral system for employers located in the development and that coordinates with existing community-based job training efforts

• Employment assistance programs that reduce barriers to employment while supporting a stable and reliable workforce

• Work to connect Women and Minority Business Enterprise’s and local firms to commercial enterprises located in Bassett Creek Valley

• Opportunities for local businesses and Women and Minority Business Enterprise have to locate within the redevelopment to fill commercial/retail gaps in a sustainable manner

Pursue employment plans and goals to for long term living wage employment opportunities for people of color and women and community residents in the development.
In addition to the development agreement provisions, the City will pursue the following:
Finance

• Planning efforts to produce tax increment financing and tax increment legislation that will promote and integrate the redevelopment of the entire area consistent with the Master Plan using the excess tax increment generated by Linden Yards and the Impound Lot

Plan the use of these excess funds to achieve the development and housing objective set out in the master Plan.
Community Connections and Participation

• Continued engagement of the Harrison Neighborhood Association (HNA), The Bryn Mawr Neighborhood Association(BMNA) and The Redevelopment Oversight Committee (ROC) with the production of the redevelopment and tax increment plans for Basset Creek Valley; regarding the  development agreements surrounding Linden yards and the Impound Lot; strategies to connect the Ryan development with redevelopment/renewal of the remainder of Bassett Creek Valley Area and surrounding community and minimization of impact of development on surrounding neighborhood

• Incorporation of sound environmental planning into project design

• Create systems and methods of monitoring goals, strategies, and agreements

• Explore, in conjunction with the developer and affected neighborhood groups, ways to facilitate the housing and long-term employment goals set out in the Bassett Creek Valley Master Plan.

9. Neighborhood Stabilization Program:

Consider Mayor's recommendations on the Neighborhood Stabilization Program from the U.S. Department of Housing & Urban Development, as follows: a) Amend the Citys 2008 Consolidated Plan and 2008 adopted budget as presented in the updated CDBG Schedule 4; b) Set a public hearing for 11/18/2008 at 1:30 p.m. in the CD Committee for the 2008 Consolidated Plan Amendment; c) Authorize staff to submit to HUD an Amended 2008 Consolidated Plan consisting of an application for Neighborhood Stabilization funds by 12/1/2008 ( Also in PS&RS, W&M/Budget

Action Taken: Set public hearing for November 18, 2008 at 1:30 p.m.

Receive & File Item

10. Minneapolis Advantage Demonstration Phase:

Update report.

Action Taken: Received & filed.

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: 11/18/2008

Next City Council Meeting: 11/7/2008

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Last updated Oct. 18, 2011