This meeting focused on extending developer timelines for four affordable housing projects, reviewing the progress and expansion of the State Promise Act Grant Program, and proposing a detailed framework for a new $5 million Downtown Vitality Fund to stimulate housing and retail development. The council received updates on the 2026 HRA budget proposals, discussing specific funding sources, departmental transfers, and program adjustments.
Extension Requests for Tentative Developer Status (TDS): Staff presented requests to extend TDS for four projects: The Hams Project, Gloryville, Face-to-Face, and the Rondo Community Land Trust (1036 Marshall).
Promise Act Grant Program (Round 1 & 2): Shahir Ahmed (NDC) provided a status update on the state grant program.
2026 HRA Budget Proposal: Director McMahon presented the HRA budget recommendations and funding source changes.
Downtown Vitality Fund Proposal: Commissioner Naker proposed a specific program structure for the $5 million allocated to downtown vitality.
To order. Roll call, please. Here. Make your here. Joest. Here. Coleman. Kim. Yang. Here. Chair Johnson. Here. There are one to five present. One excuse at being Commissioner Coleman. Item number one, staff report SR 25-258 introduction to tentative developer status extension request districts two, four, five, eight, wards one, six, and seven. All right, so we have a staff report on this item today that'll come before us in December 3rd. Um, there are several awards and parts of several projects, but we looped it into one presentation, so you'll see if you have any tentative developer status extension requests coming. This is the presentation for that. So I'll hand it over to uh Director McBann. Thank you, Chair Johnson. Yes. How's the inter Sarah Zorn will be coming up to give the presentation on this? And thanks for noting, yes. It is one presentation on several of the items, but on the December 3rd HRA meeting, each item will be voted on individually, just noting that, but for efficiency and ease, going through them all now and ability to ask questions, either after each individual's um or at the end. Thank you, Ms. Zorn. All right. Well, thanks for the intro. I'm not even gonna do mine. We'll just jump right in. Welcome, Ms. Sorne. Thanks. So as a reminder, the HRA disposition policy allows the HRA to award tentative developer status following an RFP process or a submission of a development proposal. The status prevents the HRA from contracting with other entities and allows the developer time to complete due diligence or conditions required for development and prior to closing. These could include completion of design drawings, market studies and utility plans, environmental investigation and remediation plans, securing and finalizing financing, and because affordable housing projects can take years, as we all know, from planning to funding applications and finalizing the deal structure. The TDS is typically awarded for two years, and with the HRA authorization, the designation can be administratively extended for six months by the executive director. So the four projects that we're talking about are those listed here: the Hams Project, Gloryville, face-to-face, and 1036 Marshall. And these are the ones that currently have outstanding tentative developer awards. Sorry, marketplace. During the TDS period, the developer has successfully pursued over four million dollars in funding from the Met Council in Ramsey County. And earlier this month, the site was designated as a local historic district. They've held community engagement sessions, worked through schematic design, undergone environmental testing, and rezoned the site to T3. In addition, the developers submitted an application through MHFA's consolidated RFP process for funding, the results of which we should know next month. If the project is awarded funding, then JB Bang will finalize their financing, complete the site plan review process, and following HRA board approval, enter into a development agreement, and then go forth and obtain building permits. And all of this and getting to closing, especially working with MHFA can take several months, which is part of the reason for the extension request at this time. The next project is Gloryville. Following an RFP process, the TDS was awarded in May of 23. That status expired in June of 25 and again was administratively extended to the end of the year. The project will result in the construction of 87 units of affordable housing along with a grocery space and retail space.