City of Minneapolis
Request for Committee Action
RCA #: RCA-2020-01297
TO COMMITTEE(S):
# Committee Name Meeting Date Submission Deadline
1 Business, Inspections, Housing & Mar 2, 2021 Feb 23, 2021 Zoning Committee
FROM: Community Planning & Economic Development
LEAD STAFF: Tiffany Glasper - Senior Project PRESENTED Tiffany Glasper - Senior Project Coordinator, x5221 BY: Coordinator, x5221
SUBJECT:
West Broadway Curve (aka Beam) affordable housing project bond issuance, 1706-1920 W Broadway Ave, 2009 Ilion Ave N, and 2109 James Ave N
ACTION ITEM(S)
Public # File Type Subcategory Item Description Hearing
1 Resolution Bond Passage of Resolution authorizing Yes preliminary and final approval of the issuance of Tax Exempt Multifamily Housing Revenue Entitlement Bonds in an amount not to exceed $17,000,000 for the West Broadway Curve (AKA Beam) project at 1706-1920 Public # File Type Subcategory Item Description Hearing
W Broadway Ave, 2009 Ilion Ave N, and 2109 James Ave N.
PREVIOUS ACTIONS
2015-00902 - West Broadway Curve Redevelopment development rights
2020-01062 - West Broadway Curve Tax Increment Financing Plan, 1706-1920 W Broadway Ave
2015-01343 - 2015 Affordable Housing Trust Fund (AHTF) recommendations
2017-01306 - 2017 Affordable Housing Trust Fund (AHTF) project recommendations
2017-00539 - 2017 Metropolitan Council Livable Communities Demonstration Account (LCDA) and Livable Communities Demonstration Account Transit-Oriented Development grant applications
2018-00854 - Project analysis authorization for the West Broadway Curve-West Building Affordable Housing Project
2018-00164 - Extending Exclusive Development Rights for Sherman Associates West Broadway Curve Project
WARD / NEIGHBORHOOD /ADDRESS
# Ward Neighborhood Address
1. Ward 5 Jordan 2109 James Avenue North, Minneapolis, MN
2. Ward 5 Jordan 2009 Ilion Avenue North, Minneapolis, MN
3. Ward 5 Jordan 1706 West Broadway Avenue, Minneapolis, MN
4. Ward 5 Jordan 1710 West Broadway Avenue, Minneapolis, MN # Ward Neighborhood Address
5. Ward 5 Jordan 1714 West Broadway Avenue, Minneapolis, MN
6. Ward 5 Jordan 1720 West Broadway Avenue, Minneapolis, MN
7. Ward 5 Jordan 1726 West Broadway Avenue, Minneapolis, MN
8. Ward 5 Jordan 1800 West Broadway Avenue, Minneapolis, MN
9. Ward 5 Jordan 1804 West Broadway Avenue, Minneapolis, MN
10. Ward 5 Jordan 1808 West Broadway Avenue, Minneapolis, MN
11. Ward 5 Jordan 1818 West Broadway Avenue, Minneapolis, MN
12. Ward 5 Jordan 1820 West Broadway Avenue, Minneapolis, MN
13. Ward 5 Jordan 1826 West Broadway Avenue, Minneapolis, MN
14. Ward 5 Jordan 1900 West Broadway Avenue, Minneapolis, MN
15. Ward 5 Jordan 1904 West Broadway Avenue, Minneapolis, MN
16. Ward 5 Jordan 1910 West Broadway Avenue, Minneapolis, MN # Ward Neighborhood Address
17. Ward 5 Jordan 1914 West Broadway Avenue, Minneapolis, MN
18. Ward 5 Jordan 1918 West Broadway Avenue, Minneapolis, MN
19. Ward 5 Jordan 1920 West Broadway Avenue, Minneapolis, MN
20. Ward 5 Jordan 1716 West Broadway Avenue, Minneapolis, MN
BACKGROUND ANALYSIS
The City has received a bond application from Sherman Associates (on behalf of West Broadway Limited Partnership) requesting up to $17 million in Tax Exempt Housing Revenue Entitlement Bonds to support the construction of the Beam (fka West Broadway West Building and West Broadway Curve) project. Beam is a 92-unit, new construction, mixed income project proposed to be located on West Broadway Avenue between Irving and Ilion Avenues North, along what is commonly known as "The Curve." The project is in the Jordan neighborhood in Ward 5 approximately two blocks east of the Penn-Broadway intersection.
The project will feature a mix of 1-, 2- and 3-bedroom units with rents affordable at 50%, 60% and 80% AMI. These units are in two distinctly separate, but related components - a single apartment building with 72 affordable units and a townhome complex consisting of four buildings of five townhomes each for a total of 20 townhomes. The project will also include underground parking, an integrated transit stop, public art and green spaces, a green gateway to Cottage Park, in-unit laundry and community gathering space. The townhome units will feature some walk-up style units fronting West Broadway Avenue to provide more eyes on the street. The project will turn currently vacant, underutilized land into higher density affordable housing, a needed community resource.
PROJECT FINANCING
The total development cost for the project is currently estimated at approximately $34,640,000. Developer participation in the project includes $1,544,549 in deferred developer fee. The project has secured all of the necessary financing to complete the project, with the exception of this bond request. The applicant is requesting up to $17 million in Tax Exempt Multifamily Housing Revenue Bonds, which represents the final funding approval needed for the project to proceed to closing. Please refer to the attached Project Data Worksheet for details on the project sources and uses. Staff is recommending approval for the issuance of up to $17,000,000 in Tax Exempt Multifamily Housing Entitlement Revenue Bonds from the City of Minneapolis. This revenue bond allocation will enable the project to meet the required 50% test. The bonds will be issued in two series: Series A and B. The Series A bonds will be permanent debt to the project in an amount of approximately $14,600,000 and the Series B bonds are representative of the construction loan in an amount of approximately $2,400,000. The entitlement bonds will generate approximately $13.4 million in Housing Tax Credit (HTC) equity to the project as a source of funds. The project is utilizing Average Income, which is a new minimum set aside option in the HTC program. It enables projects to include lower rent levels than would otherwise be possible by offsetting them with units at higher rent levels.
The current status of the City's HRB Entitlement is shown in the table below.
ALLOCATION AMOUNT
2020 Entitlement Allocation remaining $ 45,203,701
2021 Entitlement Allocation $ 29,900,024
Beam (pending) $ 17,000,000
Balance Remaining for Other Projects $ 58,103,725
Bond Purchaser/Underwriter: Cedar Rapids Bank and Trust
Tax Credit Equity Investor: Cedar Rapids Bank and Trust
Bond Counsel: Kennedy & Graven
Council Member: Jeremiah Ellison (Ward 5)
West Broadway Curve (aka Beam) affordable housing project bond issuance, 1706-1920 W Broadway Ave, 2009 Ilion Ave N, and 2109 James Ave N - Fiscal Note