Request for Committee Action

The City of Minneapolis purchased the subject lot over 20 years ago. The vacant parcel was publicly advertised on the City's website and through email notification. There was only one offer received, from Arne Johansson of Park Place Apartments, Inc. Mr. Johansson owns the adjacent vacant parcel at 2810 Park Ave S and proposes to combine the parcels and invest $1.8 million to construct a 3 or 4 story 18 unit multifamily building. The proposed project will be all efficiency units. 20% of the units will be restricted to incomes and rents at or below 60% AMI per the City's Unified Housing Policy requirements for City-owned land. There will be no non-competitive public financial resources going into the project.

City staff has been working with the developer to refine the plan and site design and will continue to do so throughout the development process. One condition of completing the land sale is for the purchaser to demonstrate project financing. Mr. Johansson has a preliminary commitment, but cannot finalize without demonstrating site control of the adjacent City-owned parcel. Park Place Apartments, Inc. is requesting and staff recommends the approval of exclusive development rights for the parcel that is the subject of this report for a period of 12 months in order for the developer to secure project financing. It is anticipated that staff will bring to City Council a final land sale request for this parcel for a construction start in spring 2019.