Item Description:
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2026 TOC funding recommendations - Neg 5 Agmts, 05/12/26-12/31/28, NTE $1,700,000; Neg 3 award modifications, ext end dates with no change to the NTE amounts
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate the following Grant Agreements during the period May 12, 2026 through December 31, 2028:
• PR00008499 with the Neighborhood Development Center, or affiliated entity, for The Ruckus project, with a not to exceed amount of $550,000;
• PR00008500 with PJRopes Holding, LLC, or affiliated entity, for the 4400 Oliver project, with a not to exceed amount of $300,000;
• PR00008501 with Footprint Development, or affiliated entity, for the 525 Mainstreet Project, with a not to exceed amount of $150,000;
• PR00008502 with Pillsbury United Communities, or affiliated entity, for the North Market 2.0 project, with a not to exceed amount of $500,000;
• PR00008503 with Center for Communication and Development, or affiliated entity, for the KMOJ Forever Home project, with a not to exceed amount of $200,000;
that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate a modification to the 2024 TOC awards (Resolution 24-HCHRA-0022) with Communities Organizing Latine Power and Action (COPAL), or affiliated entity, for the Latino Center for Community Engagement project (Agreement PR00006319); and with Northgate Development, LLC, or affiliated entity, for the EPIC+R Project (formerly known as The Plymouth Project) (Agreement PR00006320), extending the contract date from December 31, 2026 to December 31, 2027, with no change in the not to exceed amounts of $500,000 and $450,000, respectively; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Amendment 2 to Agreement PR00004673 with The Cultural Wellness Center , or affiliated entity, for the Dreamland on 38th Project; extending the contract period from June 1, 2026 to December 31, 2027, with no change in the not to exceed amount of $400,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed.
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Background:
The Transit Oriented Communities (TOC) program, previously known as Transit Oriented Development (TOD), has been a mainstay of Hennepin County’s community development efforts since 2003 because of the wide-ranging benefits which compact, efficient land use and walkable development patterns generate. Transit-oriented communities are more resilient to climate change, reduce greenhouse gas emissions, and improve public health by making it easier to bike and walk to destinations. These compact, walkable communities are also more economically productive; a community earns roughly $7 in property taxes per acre for a typical single-story commercial strip mall, compared to over $100 per acre in a three-story mixed-use business district or over $400 per acre in a six-story mixed-use district.
Transit-oriented communities reduce disparities by lowering combined housing and transportation costs for residents and improving access between housing, employment, and other destinations. By providing gap funding for projects that otherwise would not be feasible, the TOC Program generates investments in communities that have historically experienced disinvestment. TOC Program investments support Hennepin County’s Climate Action Plan through more efficient land use and infrastructure, preservation of open space, reduced vehicle miles traveled (VMT) and reduced emissions through increased walking, biking, and transit ridership.
In January 2026, a competitive request garnered 27 applications requesting a total of over $17.9 million. A total of 22 projects in Minneapolis requested $13.6 million and 5 projects in suburban Hennepin County requested $4.3 million. A multi-agency panel consisting of staff from Hennepin County, Metro Transit, and other community development professionals evaluated the applications. An independent financial consultant conducted an in-depth financial analysis assessing feasibility and funding gaps.
The 2026 HCHRA Budget (Resolution 25-HCHRA-0052) approved up to $2.2 million for the 2026 TOC Program. Due to the impacts of the Federal Operation Metro Surge, Resolution 26-HCHRA-0008 reallocated $500,000 of TOC funds to a small business relief fund.
Recommended projects for the remaining $1.7 million in TOC program funds are listed below with further detail provided in Attachment A.
PR00008499 - Neighborhood Development Center - The Ruckus - $550,000
Located in Minneapolis and served by METRO B Line and D Line BRT routes
PR00008500 - PJRopes Holdings LLC - 4400 Oliver - $300,000
Located in Minneapolis and served by METRO C Line and D Line BRT routes and high-frequency bus routes
PR00008501 - Footprint Development - 525 Mainstreet - $150,000
Located in Hopkins and served by planned METRO Green Line Extension and high-frequency buses
PR00008502 - Pillsbury United Communities - North Market 2.0 - $500,000
Located in Minneapolis and served by METRO C Line BRT and high-frequency bus routes
PR00008503 - Center for Communication and Development - KMOJ Forever Home - $200,000
Located in Minneapolis and served by METRO C Line BRT and high-frequency bus routes
TOC guidelines require that the municipality in which the project is located approves the project seeking TOC funding, and that the project be located within a redevelopment area or district adopted in accordance with Minnesota Statutes, Section 469.
Since 2003, the Hennepin County Housing and Redevelopment Authority (HCHRA) has awarded approximately $48.7 million to 165 TOD projects that have leveraged more than $2.1 billion in development, including approximately:
• 155+ projects that redeveloped brownfields, grayfields, or vacant buildings; renovated existing buildings; contributing to community vitality and putting properties back on the tax rolls
• 125+ projects that reduced combined housing and transportation costs for over 11,600 households by making it easier to get where they need to go without owning a car
• 94+ projects that created commercial space, generating opportunities for small businesses and supporting more than 3,800 jobs accessible by transit
• 25 projects that improved bike and pedestrian infrastructure and the public realm, enhancing quality of life and access to goods and services
Current Request: This request is for authorization to negotiate Amendment 2 to Agreement PR00004673, two award modifications, and five grant agreements with a total combined not to exceed amount of $1,700,000 under the 2026 TOC program.
Impact/Outcomes: Approval of these agreements will create more than 60 housing units, 65,000 square feet of commercial space, including 30 affordable spaces, supporting 75 new or retained jobs. TOC funding will leverage $66.2 million in total investment value. These projects support long-standing community institutions, expanding community services and economic opportunity and investing in the social infrastructure of Hennepin County communities while improving connections to current and planned light rail transit, bus rapid transit, and within the high-frequency bus network.
Disparity Domains: This request supports Hennepin County disparity elimination efforts in income, employment, housing, and transportation by supporting a range of investments that create employment opportunities, affordable housing, community services and amenities in areas well-served by public transit, including low-income communities and communities of color.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval