Item Description:
title
Declare property at 219 4th St S, Minneapolis surplus and authorize sale to People Serving People, Inc. for family shelter
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Resolution:
body
BE IT RESOLVED, that the property located at 219 4th Street South in Minneapolis be declared surplus; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement A2613513 with People Serving People, Inc., or affiliated entity, for the sale of property at 219 4th Street South in Minneapolis, with an estimated receivable amount of $5,500,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement, and the County Administrator be authorized to sign all related conveyance documents; and that the Controller be authorized to receive and disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Loan Agreement LS00000046 with People Serving People, Inc., or an affiliated entity, for the acquisition of the property at 219 4th Street South in Minneapolis for the provision of family shelter, during the approximate period September 1, 2026, through December 31, 2031, in an amount not to exceed $4,500,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the loan agreement, and the County Administrator be authorized to sign all related loan documents; and that the Controller be authorized to receive and disburse funds as directed.
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Background:
The property at 219 4th Street South, Minneapolis, commonly referred to as Federal Plaza (“Property”) was acquired by the Hennepin County Housing & Redevelopment Authority in 2020 and subsequently transferred to Hennepin County in 2023. The Property was initially utilized for shelter for individuals impacted by the COVID-19 pandemic and was subsequently utilized for emergency shelter for families experiencing homelessness. The most recent use of the Property was as the interim location for the Family Safe Space, which recently relocated to a permanent leased location. The Property is currently vacant and no longer needed for county-managed shelter use.
A request for proposals (“RFP”) was issued in April 2026 to seek proposals for the purchase and sale of the Property. Following a competitive selection process, a proposal from People Serving People, Inc. (“PSP”) was selected. PSP proposes to acquire the Property for the establishment of a 55-bed shelter serving families experiencing homelessness. To support the ongoing use of the Property for the provision of family shelter, a portion of the sale proceeds will be used to provide a deferred forgivable loan to PSP for the acquisition. The loan will require use of the Property as a family shelter for an approximately 5-year period.
Current Request: This request is for authorization to declare the property at 219 4th Street S, Minneapolis surplus and authorization to negotiate Agreements A2613513 and LS00000046 with People Serving People, Inc. for the sale of the Property for use as family shelter.
Impacts/Outcome: The sale will return surplus property to private ownership, reduce ongoing county operating and maintenance expenses, and promote the continued provision of emergency shelter for families experiencing homelessness.
recommendation
Recommendation from County Administrator: Recommend Approval