Item Description:
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Authorize transfer of surplus properties located at 3200 Queen Ave N, 3211 Penn Ave N, and 3206 Penn Ave N in Mpls to the HCHRA
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners authorizes a transfer of surplus properties 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, to the Hennepin County Housing and Redevelopment Authority (HCHRA) 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 Chair of the Board be authorized to sign all required documents on behalf of the county; 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 funds as directed.
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Background:
Resolution 99-12-958 designated Lowry Avenue (County State Aid Highway 153) as a Hennepin County Community Works Project. This Community Works project was an initiative of Hennepin County, the City of Minneapolis, the adjacent neighborhood, the Minneapolis Park and Recreation Board and the Minneapolis School Board and provided for the reconstruction and redevelopment of Lowry Avenue between Victory Memorial Parkway and Interstate 94. The Lowry Avenue Corridor Plan, approved by Minneapolis City Council in July 2002, identified strategies to revitalize Lowry Avenue, including reconstruction of the roadway, consolidation of retail and services into transit-oriented nodes, and redevelopment of properties along the corridor. Resolution 04-3-120 authorized property acquisition by direct purchase or condemnation, including relocation expenses and removal of structures on properties required for reconstruction and redevelopment of the Lowry Avenue Corridor Project.
The properties located at 3200 Queen Avenue North, 3211 Penn Avenue North, and 3206 Penn Avenue North were acquired by Hennepin County at various times from October 2005 to December 2007.
Resolution 10-0236 declared the excess right of way and redevelopment properties as surplus.
The subject properties (3200 Queen Avenue North and 3211 Penn Avenue North on the northwest side of Penn/Lowry, and 3206 Penn Avenue North on the northeast side of Penn/Lowry) represent an opportunity to advance several county priorities, including disparity elimination, affordable housing production, and climate resilience. Further, 3206 Penn Avenue North is adjacent to four properties owned by the City of Minneapolis and a combined offering creates a more impactful and feasible development site.
A collaborative 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.
Staff recommends transfer of the subject properties to the Hennepin County Housing and Redevelopment Authority (HCHRA) for final redevelopment disposition. If approved, a companion resolution accepting transfer and recommending final disposition consistent with the collaborative RFP will be considered by the HCHRA.
Current Request: This request is for authorization to transfer the surplus properties located at 3200 Queen Ave N and 3211 Penn Ave N on the northwest corner of Penn and Lowry Ave N; and 3206 Penn Ave N on the northeast corner of Penn and Lowry Ave N, within the City of Minneapolis to the HCHRA for the development of affordable housing with ground floor active or commercial uses.
Impacts/Outcomes: Approval of this request will allow the disposal of surplus property no longer needed for county use and for properties for redevelopment purposes to be redeveloped.
Disparity Domains: This request supports Hennepin County disparity elimination efforts in employment, housing, and transportation by supporting future redevelopment projects with affordable housing and potential employment opportunities that will benefit the surrounding community, including low-income communities and communities of color.
recommendation
Recommendation from County Administrator: Recommend Approval