File #: 24-HCHRA-0033    Version: 1
Type: Resolution Status: Approved
File created: 11/6/2024 In control: Hennepin County Housing and Redevelopment Authority
On agenda: 11/12/2024 Final action: 11/12/2024
Title: Neg Business District Initiative grant agmts with local government agencies, 11/13/24-6/30/26, total combined NTE $95,000; Neg Agmt PR00006784 with Urban3, 11/13/24-12/31/25, NTE $55,000
Attachments: 1. RESOLUTION

Item Description:

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Neg Business District Initiative grant agmts with local government agencies, 11/13/24-6/30/26, total combined NTE $95,000; Neg Agmt PR00006784 with Urban3, 11/13/24-12/31/25, NTE $55,000

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Resolution:

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BE IT RESOLVED, that the Executive Director be authorized to negotiate Business District Initiative Agreements:

                     PR00006786 with the Bloomington Port Authority, or affiliated entity, in an amount not to exceed $50,000 for the Site and Façade Improvement Program

                     PR00006785 with the Richfield Economic Development Authority, or affiliated entity, in an amount not to exceed $45,000 for the Downtown Richfield Branding and Placemaking Strategy, during the period November 13, 2024 through June 30, 2026;

 

that following review and approval by the County Attorney’s Office, the Executive Director be authorized to sign the agreements on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Authority affirms Hennepin Planning Grant assistance with the City of Hopkins for the Shady Oak Station Area Development Strategy Update during the period November 13, 2024 through June 30, 2026 with a value of consultant services not to exceed $50,000; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreement PR00006784 with Urban3, in an amount not to exceed $55,000, to conduct an analysis of development patterns and land value economics across Hennepin County to help inform future strategic investments in business districts and land use planning investments; during the period November 13, 2024 through December 31, 2025; that following review and approval by the County Attorney’s Office, the Executive Director be authorized to sign the agreement on behalf of the authority; and that the Controller be authorized to disburse funds as directed.

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Background:

The Business District Initiative (established 2015) and Hennepin Planning Grant (established 2006) programs represent two complementary approaches to partnering with municipalities to advance shared Community and Economic goals. By design, these programs provide modest seed funding to leverage additional investment, foster greater collaboration with Hennepin County communities, and support strategies that help businesses and communities thrive and prosper.

The Business District Initiative program supports small business districts in suburban Hennepin County through efforts such as marketing and wayfinding; public space improvements; establishing business incubators; technical assistance; and building façade improvements. Program funding assists projects that benefit multiple business and property owners and improve the public realm.

The Hennepin Planning Grant program supports land use and development planning efforts to achieve human-scale land use patterns that prioritize pedestrians and walkability and encourage a mix of building types and uses, diverse housing and transportation options, and development within existing neighborhoods. Selected projects are implemented through county-funded consultant scopes of work, up to a not to exceed amount of $50,000 per project.

Each program year, local governments can apply through a competitive process to the Business District Initiative and Hennepin Planning Grant programs for specific projects that meet Hennepin County’s programmatic goals. A competitive request for proposals for local government applicants was released in September 2024 for a combined total of $200,000 available across both programs. A total of three proposals were received, requesting a total of $145,000 from both programs. Proposals were evaluated by Hennepin County staff on the extent to which each project meets program objectives, aligns with county goals, demonstrates need, leverages funds, and demonstrates staff capacity to complete the project. Recommended projects include:

Business District Initiative awards
Bloomington Port Authority - Site and Façade Improvement Program: $50,000
The City of Bloomington will continue site and façade improvements in eight targeted business districts that prioritize and support older, more affordable commercial nodes. The city is contributing $100,000 to the proposed façade improvement program.

City of Richfield- Downtown Branding and Placemaking Strategy: $45,000
The City of Richfield will develop a branding and placemaking strategy for the business district at Nicollet Avenue and 66th Street. The plan will support and promote the district’s walkability, create a sense of place for visitors, and build connections to locally owned small businesses. The city is matching $20,000 for wayfinding improvements and contributing $12,500 to the project.

Hennepin Planning Grant award
Cities of Hopkins- Shady Oak Station Area Development Strategy Update: $50,000
The City of Hopkins will update its development strategy for the Shady Oaks Station in preparation for the opening of light rail in 2027. The market has changed significantly since the last plan was completed, and additional land is now available due to light rail project changes. An updated strategy will provide guidance to the city in transforming the area into a higher-density, multi-use neighborhood with a range of housing options. The project will be done in collaboration with the City of Minnetonka. The city is contributing $17,500 to the project.

In an effort to support best practices in land use planning for climate resiliency, improving health outcomes, and economically productive places, staff recommends an agreement with Urban 3 which specializes in providing in depth analysis of land value economics, bridging the gap between economic analysis public policy, and urban design. Under Agreement PR00006784 (NTE $55,000), Urban 3 will provide a more thorough, data-driven foundation which will include mapping and analyzing the financial state, evaluating productivity and fiscal implications of differential development patterns, and assisting in prioritizing the types of improvements and community design decisions that support and create a strong sense of place.

Current Request: The request is for authorization to negotiate two Business District Initiative agreements totaling a combined not to exceed amount of $95,000 during the period November 13, 2024, through June 30, 2026, affirming a land use and development project in the City of Hopkins with a value of services not to exceed $50,000, and Agreement PR00006784 with Urban 3, with a not to exceed amount of $55,000, for the period November 13, 2024 through December 31, 2025.

Impact/Outcomes: Approval of this request will support the economic vitality of two business districts, strengthen small businesses in suburban Hennepin County, and contribute to more connected and resilient communities. Combined, these business district and planning awards leverage approximately $130,000 in matching investments by municipalities, businesses, and other organizations and will impact an estimated 225 businesses in project areas.

Disparity Domains: This request supports Hennepin County disparity reduction efforts in income, employment, housing, and transportation by supporting a range of investments that strengthen neighborhood businesses, create employment opportunities, support housing options, and facilitate improved access to community destinations.

 

recommendation

Recommendation from County Administrator: Recommend Approval