Item Description:
title
Neg agmts PR00005523 with Partnership in Property Commercial Land Trust, NTE $150,000; PR00005524 with Northside Economic Opportunity Network, NTE $250,000, A2311856 with City of Mpls, all terms 08/22/23-12/31/25
end
Resolution:
body
BE IT RESOLVED, that consistent with the Penn Avenue Community Works Implementation Framework, the County Administrator be authorized to negotiate Grant Agreements PR00005523 with Partnership in Property Commercial Land Trust, or affiliated entity, for the Cleveland Commons project, with the not to exceed amount of $150,000 and PR00005524 with Northside Economic Opportunity Network, or affiliated entity, for the NEON Food Business Incubator project, with the not to exceed amount of $250,000 (Penn Avenue Community Works - CP 1001560), during the period August 22, 2023 through December 31, 2025; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the agreements on behalf of the county; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that consistent with Minnesota Statutes, section 383B.79, the County Administrator be authorized to negotiate Multijurisdictional Agreement A2311856 with the City of Minneapolis to provide for investment in the Cleveland Commons and NEON Food Business Incubator projects, during the period August 22, 2023 through December 31, 2025; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the agreement on behalf of the county; and
BE IT FURTHER RESOLVED, that the remaining budget authority of $1,786,886 in Penn Avenue Community Works (CP 1001560) be transferred to Bottineau LRT Community Works (1002318) for the purposes of investing in Penn corridor communities in Minneapolis, thereby increasing the appropriated budget for CP 1002318 to $5,721,886; and that upon completion of the above-referenced Agreements on December 31, 2025 CP 1001560 be closed; and that the Controller be authorized to accept and disburse funds as directed.
end
Background:
In 1993, Hennepin County launched Community Works, an innovative, place-based, cross-jurisdictional program that addresses areas with declining tax bases through coordinated public investments in corridor-scale infrastructure, natural systems, and redevelopment. Today, Community Works is a nationally recognized approach to community redevelopment, one with a track record of stimulating development, providing access to employment, building the long-term value of communities, and improving existing implementation systems.
Community Works program principles in were originally adopted in 1994 (Resolution 94-9-775):
1. Enhance the tax base
2. Stimulate employment development
3. Strengthen communities through connections
4. Maintain and improve natural systems
5. Build bridges for effective planning and implementation
Updated program goals were adopted in 2014 (Resolution 14-0397):
1. Enhance the tax base
2. Stimulate economic development and job growth
3. Strengthen and connect places and people
4. Innovate and advance sustainability
5. Lead collaborative planning and implementation
As part of the competitive request for proposals process conducted for the Transit Oriented Development Program in spring 2023, applications were accepted for concurrent consideration of funding from the Bottineau, Penn, and Southwest Community Works Programs. This allowed a more streamlined process to consider projects and an opportunity to invest the respective program dollars more strategically.
Penn Avenue Community Works
The Penn Community Works Project was established to further stimulate economic recovery, beautification, livability, and job creation in North Minneapolis along Penn Avenue between Highway 55 and 44th Avenue North (Resolution 12-0238). The Penn Avenue Community Works Implementation Framework (Resolution 16-0099R1) prioritized county investment in redevelopment of vacant sites and buildings along the Penn Avenue Corridor.
Agreement PR00005523 with Partnership in Property Commercial Land Trust (PIPCLT) would provide funding to support the renovation of four properties near the intersection of Penn Avenue North and 35th Avenue. The project will use a commercial land trust model to create community ownership of property and long-term affordable commercial spaces. This project will enable four or more local business owners to own their commercial space at an affordable cost.
Agreement PR00005524 with the Northside Economic Opportunity Network (NEON) would provide funding for a new 22,000 square foot food business incubator on a 1.5-acre site located on West Broadway Avenue, east of Penn Avenue North, an area defined as a food desert by the United States Department of Agriculture (USDA). The project would provide commercial space to an estimated 250 local food entrepreneurs who are part of NEON’s food business incubator program.
In accordance with Minnesota Statutes, section 383B.79, Multijurisdictional Agreement A2311856 between Hennepin County and the City of Minneapolis will create the necessary multi-jurisdictional reinvestment program for the specific purpose of investing in the PIPCLT and NEON projects.
Since the launch of Penn Avenue Community Works, Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA) have invested over $43 million in redevelopment and transportation improvements to Penn Avenue North and Osseo Road, and public realm investments guided by the community vision established in the Penn Avenue Community Works Implementation Framework. This total is over and above the substantial investments in North Point Health and Wellness Center and other county facilities made in the Penn corridor in recent years.
County investment has leveraged over $90 million from other agencies and the private sector. Major accomplishments in the Penn Avenue North Corridor include: completion of the C Line Bus Rapid Transit (BRT) project, roadway and streetscaping improvements along planned segments of Penn Avenue, the Queen Avenue bike boulevard, public realm improvements at Lucy Laney School, and significant developments at Penn and West Broadway, Plymouth, and Golden Valley Road.
Finally, staff recommends the remaining unencumbered budget appropriation in Penn Avenue Community Works (CP 1001560) of $1,786,886 be transferred to the active Bottineau LRT Community Works project (CP 1002318), which overlaps the Penn corridor. The transfer of funds will allow for coordinated investment in Penn corridor communities through implementation strategies guided by current community priorities.
Current Request: Negotiate Grant Agreements PR00005523 with Partnership in Property Commercial Land Trust with a not to exceed amount of $150,000 and PR00005524 with Northside Economic Opportunity Network with a not to exceed amount of $250,000, during the period August 22, 2023 through December 31, 2025; Negotiate Multijurisdictional Agreement A2311856 with City of Minneapolis; authorize the budget authority transfer of $1,786,886 from CP 1001560 to CP 1002318, closing CP 1001560 by December 31, 2025.
Impact/Outcomes: The PIPCLT and NEON projects will create over 30,000 square feet of retail commercial and incubator space, support over 250 entrepreneurs, provide at least four new business ownership opportunities, and leverage over $22 million in total investment.
recommendation
Recommendation from County Administrator: Recommend Approval