Item Description:
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2025 Transit Oriented Communities funding recommendations - neg 4 grant agmts, 05/14/25-12/31/27, NTE $1,100,000; neg 2 deferred loan agmts, 05/14/25-12/31/65, NTE $900,000
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate these Grant Agreements during the period May 14, 2025 through December 31, 2027:
• PR00007342 with Bush Companies, or affiliated entity, for the 2815 East Lake Street project, with the amount not to exceed $200,000;
• PR00007334 with Cultural Wellness Center, or affiliated entity, for the Dreamland on 38th project, with the amount not to exceed $300,000;
• PR00007335 with Footprint Development, or affiliated entity, for the 501 Mainstreet project, with the amount not to exceed $350,000;
• PR00007336 with Mni Sota Fund, or affiliated entity, for the Indigenous Wealth Building Center project, with the amount not to exceed $250,000;
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 these Deferred Loan Agreements during the period May 14, 2025, through December 31, 2065:
• PR00007337 with Solhem Development, LLC, or affiliated entity, for the 1345 Central project, with the amount not to exceed $500,000;
• PR00007339 with VY Enterprise LLC, or affiliated entity, for the Community Corner project, with the amount not to exceed $400,000;
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.
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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 that compact, efficient use of land 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. For example, for every $1 a county earns in property taxes per acre on a typical residential property or $7 in property taxes for a single-story commercial strip mall, communities earn 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 low-income communities and communities of color that have historically experienced disinvestment. TOC Program investments support Hennepin County’s Climate Action Plan through more efficient use of land and infrastructure, preservation of open space, reduced vehicle miles traveled (VMT) and reduced emissions through increased walking, biking, and transit ridership.
In February 2025, a competitive request garnered 20 applications requesting a total of over $11.2 million. Fourteen projects in Minneapolis requested over $8.6 million and six projects in suburban Hennepin County requested over $2.5 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.
Recommended projects are listed below with further detail provided in Attachment A.
PR00007342 - Bush Companies - 2815 East Lake Street - $200,000
Located in Minneapolis and served by high frequency bus and the planned METRO B Line BRT
PR00007334 - Cultural Wellness Center - Dreamland on 38th - $300,000
Located in Minneapolis and served by high frequency bus
PR00007335 - Footprint Development - 501 Mainstreet - $350,000
Located in Hopkins and served by the planned METRO Green Line Extension LRT
PR00007336 - Mni Sota Fund - Indigeous Wealth Building Center - $250,000
Located in Minneapolis and served by high frequency bus and the METRO Blue Line LRT
PR00007337 - Solhem Development, LLC - 1345 Central - $500,000
Located in Minneapolis and served by high frequency bus and the planned METRO F Line BRT
PR00007339 - VY Enterprise LLC - The Community Corner - $400,000
Located in Brooklyn Center and served by express bus
TOC guidelines require that the project be located within a redevelopment area or district adopted by a municipality in accordance with Minnesota Statutes, Section 469 and an affirmation of support from the municipality in which the project is located.
Since 2003, the Hennepin County Housing and Redevelopment Authority (HCHRA) has awarded approximately $46.7 million to over 160 TOD projects that have leveraged more than $2 billion in development, including approximately:
• 150+ projects that either redeveloped brownfields, grayfields, or vacant buildings; or renovated existing buildings; contributing to the health and vibrancy of our communities and putting properties back on the tax rolls
• 120+ projects that are reducing combined housing and transportation costs for over 11,600 households by making it easier to get where they need to go without having to own a car
• 90+ projects that created commercial space, generating opportunities for small businesses to succeed and supporting more than 3,800 jobs accessible by transit
• 20 projects that improved bike and pedestrian infrastructure and the public realm, enhancing quality of life and access to goods and services for existing residents.
Current Request: This request is for authorization to negotiate four TOC Grant Agreements during the period May 14, 2025 through December 31, 2027 with a total combined not to exceed amount of $1,100,000 and two TOC Deferred Loan Agreements during the period May 14, 2025 through December 31, 2065 with a total combined not to exceed amount of $900,000.
Impact/Outcomes: Approval of these agreements will create 48,800 square feet of commercial space, including 5 affordable spaces, support 110 new or retained jobs. TOC funding will leverage $79.9 million in total investment value and improve connections to rail transit, bus rapid transit, and within the high-frequency bus network.
Disparity Domains: This request supports Hennepin County disparity reduction efforts in income, employment, housing, and transportation by supporting a range of investments that create employment opportunities, lower combined housing and transportation costs for residents, community services and amenities in areas well-served by public transit, including low-income communities and communities of color.
recommendation
Recommendation from County Administrator: Recommend Approval