Item Description:
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Neg Amd 1 to Agmt PR00005767 with Wilson Image Holding for the Swank Eatery project, extend end date to 12/31/27, no change in NTE
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate Amendment 1 to Affordable Commercial Incentive Fund Grant Agreement PR00005767 with Wilson Image Holding, LLC, or affiliated entity, for the Swank Eatery project, extending the contract end date from December 31, 2026 to December 31, 2027, with no change in the not to exceed amount of $500,000 (CP 1009876); 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:
On December 15, 2022, the Hennepin County Board of Commissioners approved funding for a one-time program, the Affordable Commercial Incentive Fund, administered by the Hennepin County Housing and Redevelopment Authority (HCHRA) to support long-term economic opportunity and the development of affordable commercial space along the proposed Blue Line Extension Light Rail Transit (LRT) corridor prior to its construction (Resolutions 22-0404/22-HCHRA-0053).
In August 2023, the competitive request for proposals garnered nine applications requesting a total of over $2.8 million in funding. A multi-agency panel evaluated applications. An independent financial consultant conducted an in-depth financial analysis assessing feasibility and verifying funding gaps.
Resolution 23-HCHRA-0042 authorized Agreement PR00005767 with Wilson Image Holdings, LLC for the Swank Eatery Project, located on West Broadway in north Minneapolis. The project includes approximately 13,000 square feet of commercial space for seven commercial tenants, and 70 new or retained jobs. The total investment value is approximately $11 million.
Like other industry sectors, construction and real estate development have been negatively affected by the federal immigration enforcement surge, tariffs, and inflation over the past year. Notably, the Federal Reserve’s October Beige Book released October 14, 2026, cites “widespread concern over high and rising costs” related to construction caused by tariffs and inflation. These effects have been pronounced in projects located in low-income communities and communities of color that have historically experienced disinvestment. High and rising costs delay projects and increase uncertainty for local developers and funders.
Due to unforeseen delays in project financing, staff recommends extending the term of Agreement PR00005767 from December 31, 2026 to December 31, 2027.
Current Request: This request is for authorization to negotiate Amendment 1 to Agreement PR00005767 with Wilson Image Holding, LLC for the Swank Eatery project, extending the contract period to December 31, 2027, with no change in the not to exceed amount of $500,000.
Impact/Outcomes: Approval of this request will provide funding to an emerging developer and an estimated seven locally owned businesses. The project will create a restaurant destination in the Blue Line Extension LRT corridor creating approximately 13,000 square feet of commercial space supporting 70 new or retained jobs, and improved connections to support transit-oriented development in 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, and transportation by supporting an investment that creates employment and wealth-building opportunities as well as 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