Item Description:
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Neg Amd 6 to Agmt PR00002919 with Tacoma Creek Hospitality, ext end date to 12/31/25, incr NTE by $102,036
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate Amendment 6 to Agreement PR00002919 with Tacoma Creek Hospitality, or affiliated entity, for services at 5739 Lyndale Ave S, Minneapolis (Aqua City Motel site) and 143 E 19th St, Minneapolis (Stevens Square Residence), increasing the not to exceed amount by $102,036 for a new total not to exceed amount of $1,219,361, to provide property management, operation and maintenance for Hennepin County Housing and Redevelopment Authority owned properties, and extending the contract period from December 31, 2024 to December 31, 2025; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment on behalf of the Authority; and that the Controller be authorized to disburse funds as directed.
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Background:
Since December 2020, the Hennepin County Housing and Redevelopment Authority (HCHRA) has contracted with Tacoma Creek Hospitality to provide property management, operation, and maintenance services at various properties (University Inn, Metro Motel, Aqua City Motel, Federal Plaza) during pandemic use and rehabilitation and conversion to permanent housing (Agreements PR00002919 and PR00002920). During this time, the HCHRA has amended these agreements several times to extend the term (Resolutions 21-HCHRA-0031, 22-HCHRA-0020, 22-HCHRA-0038, 23-HCHRA-0025, and 23-HCHRA-0043). Resolution 22-HCHRA-0038 also added services at the Aqua City Motel.
Consistent with the Single Room Occupancy strategy, the Federal Plaza, University Inn, and Metro Motel properties have been sold or transferred for appropriate long-term uses, eliminating the need for Tacoma property services at these sites (and enabling the termination of Agreement PR00002920). The HCHRA has entered into purchase agreements with buyers for the Aqua City Motel site and Stevens Square Residence. Acquisitions are estimated to occur around December 31, 2024 and March 31, 2025, respectively.
Amendment 6 to Agreement PR00002919 will extend property management services at the Aqua City Motel site and Stevens Square Residence through December 31, 2025 and increase the not to exceed amount by $102,036 for a new not to exceed amount of $1,219,361. These extended timeframes will ensure continuity in the case of any further delays.
Impact/Outcomes: Approval of this request will help transition two properties to affordable housing.
Housing Disparity Domain: Households of color are disproportionately housing cost burdened. This request creates housing opportunities for individuals with incomes at or below 30 percent of area median income.
recommendation
Recommendation from County Administrator: Recommend Approval