Request for Committee Action

On May 13, 2011 the Minneapolis City Council approved a resolution giving preliminary approval for the issuance of $17 million in Tax Exempt Multifamily Housing Revenue Entitlement Bonds for the Longfellow Station Affordable Housing Project.

On May 13, 2011 the Minneapolis City Council approved the early advance of HOME loan proceeds to finance property acquisition

On May 13, 2011 the Minneapolis City Council authorized the release of the forgivable note, mortgage and declaration securing the HLAF grant funds

On December 10, 2010 the Minneapolis City Council approved the assignment and assumption by Sherman Associates, Inc. or an affiliate of the existing agreements between City and Longfellow Station I, LLC, Longfellow Housing Limited Partnership and/or Capital Growth Real Estate, LLC

On September 18, 2009 the Minneapolis City Council approved the proposed Tax Increment Financing, redevelopment agreement terms, and Great Streets loan of up to $300,000

About ten years ago, the City Council approved the transfer of the redevelopment contract associated with the Longfellow Station mixed-use project and associated City funding commitments from Capital Growth Real Estate LLC to Sherman Associates. A Sherman Associates entity successfully constructed the required 180 units of mixed-income housing, but the recession of 2008-2009 delayed development of the required 10,000 square foot commercial space at 3801 and 3815 Hiawatha Avenue South. The PUD land use entitlements that would have allowed commercial development at this scale on the site expired in 2013. 

Today, the development landscape and community needs have shifted. This shift, combined with the adoption of the City's 2040 plan, have made low density commercial development at this site unlikely.

Base Camp Properties, LLC, through a single asset entity called 3801 Hiawatha, LLC has agreed to buy the commercial site from Sherman Associates. Base Camp Properties is proposing to construct a four-story, C-shaped building containing 102 units of rental housing affordable at 80% AMI along with 2,200 square feet of commercial space on the ground level and 49 parking spaces. The unit mix includes 44 one-bedroom units, 18 alcove one-bedroom units and 40 studio units. The units include amenities such as quartz countertops, stainless steel appliances and walk-in showers. Many units will include balconies and in-unit laundry facilities. Site and building amenities include a community room, rooftop outdoor space, a dog run, bicycle parking and 49 covered parking space. The building exterior will be primarily clad in vertically oriented metal siding and cementitious wood-looking panels.

This new project is 100% privately financed; there are no City-sponsored funds in the project. However, per the existing redevelopment contract, the City is passing along to Base Camp Properties our ongoing reporting obligations to various grantors who provided funding to advance earlier phases of the Longfellow Station Project. Base Camp Properties will commence construction this summer and complete the project by December 31, 2022. Base Camp Properties, LLC has demonstrated their ability to deliver the project and staff is recommending approval of the assignment of the redevelopment contract from the Sherman Associates entity to 3801 Hiawatha LLC or another affiliate of Base Camp Properties, LLC, and amendment of the redevelopment contract to reflect the new project metrics and grant reporting requirements.