Item Description:
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Accept transfer of surplus properties located at 3200 Queen Ave N, 3211 Penn Ave N, and 3206 Penn Ave N in Minneapolis to the HCHRA from Hennepin County; authorize sale to VY Enterprise LLC, and John Aish Inc., or affiliated entities, respectively
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Resolution:
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BE IT RESOLVED, that the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners accept the transfer of surplus property located at 3200 Queen Avenue North (PID: 080-29-24-14-0204), 3211 Penn Avenue North (PID: 080-29-24-14-0205), and 3206 Penn Avenue North (PID: 090-29-24-23-0224) within the City of Minneapolis from Hennepin County for the purpose of affordable housing with ground floor active or commercial uses; that following review and approval by the County Attorney’s Office, the Executive Director be authorized to sign all conveyance documents on behalf of the Authority; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Purchase Agreement A2613463 with VY Enterprise LLC, or affiliated entity, for the sale of 3200 Queen Avenue North and 3211 Penn Avenue North, in an estimated receivable amount of $233,400; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement, and the Executive Director be authorized to sign all related documents on behalf of the Authority; and that upon sale of the property, the HCHRA provides Hennepin County with the sales proceeds excluding holding and transaction costs; and that the Controller be authorized to accept and disburse the funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Purchase Agreement A2613464 with , John Aish Inc, or affiliated entity, or with the City of Minneapolis as a pass-through entity, to the selected developer for the sale of 3206 Penn Avenue North, in an estimated receivable amount of $135,100; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement, and the Executive Director be authorized to sign and all related documents on behalf of the Authority; and that upon sale of the property, the HCHRA provides Hennepin County with the sales proceeds excluding holding and transaction costs; and that the Controller be authorized to accept and disburse the funds as directed.
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Background:
Resolution 26-0146 (adopted April 28, 2026) authorized Hennepin County to transfer surplus properties at 3200 Queen Avenue North, 3211 Penn Avenue North, and 3206 Penn Avenue North properties in the City of Minneapolis to the Hennepin County Housing and Redevelopment Authority (HCHRA) for the purpose of creating affordable housing with active ground floor or commercial uses.
A collaborative public Land Sale Request for Proposals (RFP) process was conducted by the Housing and Economic Development (HED) department in coordination with the City of Minneapolis beginning in November 2024. The RFP did not prescribe a specific use or combination of uses but instead provided general direction on priorities around housing affordability, configuration of uses, building design, and site amenities. These priorities were informed by outreach work undertaken by Hennepin County during the Penn Avenue Community Works program as well as general guidance provided in the City of Minneapolis’ Comprehensive Plan.
A total of nine proposals from seven organizations were received:
Penn & Lowry Project*, proposed by John Aish Inc. Four-story, mixed-use building with commercial space and 49 units of affordable housing, including fourteen supportive housing units and family-sized units.
The Pennlow Collective Senior Housing*, proposed by VY Enterprise LLC. Six-story, mixed-use building with commercial space and 89 units of affordable senior housing including nine units of supportive housing.
Sankofa Center*, proposed by Rebound Inc. & RiverNorth Development Partners. Six-story mixed use building with community-serving space, ten market-rate, four-bedroom suites and twelve shelter beds for youth in crisis.
The Pennlow Collective Townhomes*, proposed by VY Enterprise LLC. 26 ownership townhomes affordable to households at 80% of AMI.
Penn and Lowry Cultural Corridor Commercial Space*, proposed by New Rules. Five commercial retail/office lofts, with private open space.
Najmah Project, proposed by Kashaba Development & Investment LLC. Mixed-use building with seven affordable housing units and community-serving uses.
Penn and Lowry Cultural Corridor Townhomes, proposed by New Rules. 21 ownership townhomes affordable to households at or below 80% AMI.
Faith Tabernacle Church relocation, proposed by Faith Tabernacle Church. New church facility for an existing church located at 2025 N. 4th Street in Minneapolis, facing relocation.
ReGeneration Center, proposed by Jordan Area Community Council (JACC). Three-story, mixed-use building combining community-based commercial, social service, day shelter, and short-term shelter.
A joint panel of city and county subject matter experts in transit-oriented development, affordable housing, business development, real estate finance, and land use planning evaluated the proposals on the extent to which they integrated RFP priorities, met land use planning and zoning requirements, and demonstrated financial feasibility and capacity of the project teams.
Five finalist projects (noted by “*” above) were selected and invited to participate in a Community Open House. Over 70 people attended and provided feedback through a survey, with over 400 additional surveys submitted online. Overall feedback indicated strong interest in more affordable housing development, along with commercial or community uses.
Staff recommends negotiation of purchase agreement A2613463 for the conveyance of 3200 Queen Avenue North and 3211 Penn Avenue North on the northwest side of the Penn-Lowry intersection to Vy Enterprise LLC for an up to six-story building including affordable housing and active ground floor uses; and agreement A2613464 for the conveyance of 3206 Penn Avenue North on the northeast side to John Aisch Inc, or to the City of Minneapolis as a pass-through for assemblage with adjacent city-owned properties and subsequent sale to the developer, for an up to four-story building including affordable housing and active ground floor uses.
Current Request: This request is for authorization to accept the transfer of surplus properties located at 3200 Queen Avenue North, 3211 Penn Avenue North, and 3206 Penn Avenue North, within the City of Minneapolis, from Hennepin County; and authorization to negotiate Agreements A2613463 with VY Enterprise LLC and A2613464 with John Aish Inc., or with the City of Minneapolis, for the sale of surplus vacant land for affordable housing development, for an estimated combined receivable amount of $368,500.
Impacts/Outcomes: The sale of these properties will return surplus vacant land to the tax base and provide for the development of new affordable housing.
Disparity Domains: This request supports Hennepin County disparity elimination efforts in employment, housing, and transportation by supporting the development of affordable housing and activating vacant sites for the benefit of the surrounding community, including low-income communities and communities of color.
recommendation
Recommendation from County Administrator: Recommend Approval