Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Land Sale: 2807 Emerson Ave N and 2811 Emerson Ave N to Community Housing Resources (aka Minneapolis Public Housing Authority) (RCA-2022-00203)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | March 1, 2022 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Land Sale | Passage of Resolution authorizing the sale of the properties at 2807 Emerson Ave N (Disposition Parcel No. VH-384), and 2811 Emerson Ave N (Disposition Parcel No. NSP-141), to Community Housing Resources or an affiliated entity for $12,400 ($6,200 each), subject to conditions. |
| 2 | Action | Contract/Agreement | Authorizing an agreement with Community Housing Resources or affiliated entity and authorizing the Director of the Department of Community Planning & Economic Development to make modifications. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 5 | Jordan | 2807-2811 Emerson Ave N, Minneapolis, MN |
Background Analysis
PARCEL ADDRESS SALE PRICE
VH-384 and NSP-141 2807-2811 Emerson Ave N $12,400
PURCHASER
Community Housing Services
1001 Washington Ave N
Minneapolis, MN 55401
PROPOSED DEVELOPMENT:
Purchaser is investing $16,725,000 on a total of 16 scattered sites to construct higher density four to six-unit buildings that are between two to three bedrooms, to create a total of 84 deeply affordable units. The City Council approved $4,600,000 through American Rescue Plan funding to support this project (2021-00651). At 2807-2811 Emerson Ave N, the Purchaser proposes to build a three-story structure consisting of six (6) affordable housing units available to households at or below 30% AMI. Two units will be 2-bedrooms and four units will be 3-bedrooms. The lot size is 85.2’ x 128.24’ (approximately 10,926.048 total square feet).
FISCAL IMPACT & LAND DISPOSITION POLICY:
The sale of this property complies with the City’s Real Estate Disposition Policy. The sales price of this property reflects the full re-use value of $12,400 resulting in net loss of $35,611 after eligible costs of $48,011 (acquisition, transactional and site assemblage costs). This sale will result in future generation of property taxes and elimination of ongoing property management costs.
FINANCING:
Purchaser: Purchaser provided evidence of secured financing.
COMMENTS:
On April 27, 2009, the City acquired 2807 Emerson Ave N from Bank of America. On August 31, 2010, the City acquired 2811 Emerson Ave N from BAC Home Loans Serving LP under the Neighborhood Stabilization Program (NSP), Land Banking activity. The City subsequently demolished the structure and the vacant land is in the City’s property inventory for housing development. All land sale proceeds, equal to the fair market value, will be returned to the NSP program to cover ongoing program costs.
The properties have been publicly advertised on the City’s website and through e-mail notification to a listserv now of over 4,000 developers and homebuyers. This is the only offer received for the property. This offer was evaluated based on criteria stated in the City’s Real Estate Disposition Policy.
Staff recommends the sale of 2807-2811 Emerson Ave N to Community Housing Resources, subject to conditions. Notification was provided to the Jordan Area Community Council (JACC) on November 18, 2021, at which time, the JACC board recommended approval.