Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Exclusive Development Rights Extension to Northgate Development, LLC or an affiliated LLC: 1014 & 1026 Plymouth Ave N (RCA-2025-00287)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Housing & Zoning Committee | March 20, 2025 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Development Project | Authorizing an extension of exclusive development rights to Northgate Development, LLC or an affiliated LLC for City-owned property located at 1014 Plymouth Ave N and 1026 Plymouth Ave N for a period of two years through April 28, 2027. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 5 | Near-North | 1014 Plymouth Ave N, Minneapolis, MN |
| 2. | Ward 5 | Near-North | 1026 Plymouth Ave N, Minneapolis, MN |
Background Analysis
This report recommends that the City Council authorize an extension of exclusive development rights to Northgate Development, LCC (Northgate) or an affiliated LLC, for City-owned property at 1014 Plymouth Ave N and 1026 Plymouth Ave N. Staff recommends granting Northgate two additional years of development rights, through April 28, 2027.
On April 28, 2022, the City Council authorized exclusive development rights to Northgate for a City-owned half-acre property located at 1014 Plymouth Ave N and 1026 Plymouth Ave N to develop a mixed-used, transit-oriented project on the site. The Council authorized two years of development rights, with the possibility of a one-year administrative extension contingent on demonstrating progress on pre-development work. Upon making substantial progress on project plans and predevelopment activities, the CPED Director granted a one-year extension of Northgate’s exclusive development rights, to April 28, 2025.
Northgate has partnered with local developer Victoria Yepez of VY Enterprise to develop this long-vacant parcel with a mixed-use project, named EPIC+R, with 68 intergenerational housing units, all affordable at or below 50% AMI, including 33 three-bedroom and 6 four-bedroom units, with 15 supportive housing units for high-priority households and persons with disabilities.
The project will also feature over 12,000 square feet of commercial space for a daycare center, entrepreneur incubator and production facilities, and retail/office spaces.
The project will incorporate several sustainability features: solar panels and battery storage, a heat pump for heating/cooling, a rooftop garden for stormwater management, and electric vehicle charging stations. Designed to meet Passive House Institute (PHI) and SB2030 standards, this is slated to be the first passive house project in the area, addressing environmental justice concerns in a Qualified Census Tract with a significant population of low-income residents and people of color. The project is also transit-oriented, located within proximity to high-frequency transit and future LRT/BRT routes.
To date, the EPIC+R development team has achieved a number of significant project planning and financing milestones:
- Secured Housing Support for 6 units and 15 project-based vouchers from the Minneapolis Public Housing Authority.
- Received an environmental investigation grant from the Metropolitan Council and a predevelopment grant from Hennepin County and completed Phase I and II environmental assessments.
- Secured a $450,000 grant from Hennepin County for transit-oriented development and $1,500,000 from Minneapolis’ Affordable Housing Trust Fund.
- Completed schematic designs for the project, with the aim of beginning the City entitlement process in Q4 2025.
- Hosted two equitable engagement sessions with communities most impacted.
To continue advancing the project, Northgate has requested, and City staff recommends, a two-year extension of exclusive development rights through April 28, 2027. This extension will give the development team sufficient time to refine project plans, apply for and assemble additional project financing, and finalize development terms, including land value/potential sale price. This extension will help maintain the project’s current momentum and also satisfy the need to show evidence of site control for upcoming funding applications.