ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Housing & Zoning Committee | Mar 26, 2024 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Contract/Agreement | Approving an assignment to the Minneapolis Park and Recreation Board of the Donation Agreement with Green Minneapolis for fund raising related to the Downtown East Commons. |
| 2 | Action | Contract/Agreement | Approving a termination of a Ground Lease with the Minneapolis Park and Recreation Board for the Downtown East Commons. |
| 3 | Action | Contract/Agreement | Approving a termination of a Memorandum of Understanding with the Minneapolis Park and Recreation Board for the Downtown East Commons. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 3 | Downtown East | 425 Portland Ave, Minneapolis, MN |
| 2. | Ward 7 | Downtown East | 521 4th St S, Minneapolis, MN |
Background Analysis
As part of the development of the Downtown East Commons park, the nonprofit organization Green Minneapolis undertook a fundraising campaign to help fund the capital and operating costs of the space. The City -- as the developer of the Commons pursuant to a Memorandum of Understanding (MOU) with the Minneapolis Park and Recreation Board (MPRB) -- and Green Minneapolis entered into a Donation Agreement related to that private fundraising by which the City received or directed payment or reimbursement of capital and operational costs.
After the construction and initial start-up of the park, MPRB took over full ownership and operation of the Commons in response to a lawsuit. Further, Green Minneapolis is changing its nonprofit mission away from facilitating downtown green and open spaces. However, funds still remain with Green Minneapolis from the Commons fundraising campaign. Since MPRB now has control of the Commons, City staff recommend assigning the Donation Agreement to it so that it can interface directly with Green Minneapolis on how to deal with the remaining fundraising proceeds, which amount to approximately $1.2 million as of the end of 2023.
In addition, before MPRB took full control of the Commons, the City was ground leasing the property from MPRB. When MPRB took full control, the MOU and that ground lease were not formally terminated. This action would also allow for termination of those agreements to reflect the current ownership situation.