[Updated] Statement on 37th Ave. NE & University Ave.
[Update 4/7/2020]
Today, the Hennepin County Regional Railroad Authority (HCRRA) voted to authorize Hennepin County staff to negotiate a Purchase Agreement with Opus Development Company LLC. Upon the successful negotiation of a purchase agreement, Opus will be able to redevelop the site.
[Update 1/29/2020]
On January 21st, 2020, Hennepin County Rail Road Authority (HCRRA) staff issued a Request for Proposals (RFP) for the sale and future redevelopment of the property at the corner of 37th Ave NE & University Ave NE in Minneapolis.
The City of Minneapolis zoning identifies the site as I1 – Light Industrial. The City of Minneapolis comprehensive plan and its designation expresses the city’s goal for the development of production and processing uses (industrial type uses). Language in the comprehensive plan states that residential uses will not be permitted.
Hennepin County will be accepting proposals that conform to the underlying zoning. Any development application would be subject to City of Minneapolis land use controls and process and subject to staff review and consideration by the City’s Planning Commission.
The RFP process provides 30 days for consideration and submission of proposals. Proposals will be considered by Hennepin County staff leaders throughout March/April 2020. HCRRA staff are expecting to recommend proposals for consideration to the Hennepin County Board of Commissioners in May 2020.
If the process of recommendation and negotiation with the preferred developer is successful, Hennepin County will look to close on the sale of this property by late 2020 or early 2021.
The language for the current RFP can be viewed on the Hennepin County surplus land webpage.
[Update 7/30/2019]
As of July 23rd, Metropolitan Transportation Network (MTN) has formally terminated its Purchase Agreement with the Hennepin County Regional Railroad Authority (HCRRA) for surplus property at 37th and University Avenues in Northeast Minneapolis. As a result of the termination, MTN no longer has site control necessary for redevelopment—meaning that MTN is no longer pursuing plans to construct a bus barn on the intersection of 37th and University Avenue at this time.
Hennepin County staff leaders will review the best way to proceed with selling or otherwise using the land at this site in the coming weeks and months. All land sales must be approved by the HCRRA Board of Commissioners.
[Original statement published on 7/9/2019]
The corner site at 37th Ave. NE & University Ave. has been at the center of public debate in recent weeks as Hennepin County continues its efforts to sell this parcel.
Definition of Terms:
CP – (Canadian Pacific Railroad) A railroad company with operations across North America
HCRRA – (Hennepin County Regional Railroad Authority) A subdivision of Hennepin County government focused on implementing Light Rail Transit in Hennepin County
LRT – Light Rail Transit
MTN – (Metropolitan Transportation Network) A Minnesota-based transit organization dedicated to providing quality transportation to residents
NEOO Partners – A Minnesota-based Real Estate Organization which focuses on small-to-medium sized clients. They serve as MTN’s Real Estate representatives.
Surplus Land - Excess real estate; often unused by its owner
Project History:
The corner site at 37th Ave. NE & University Ave. was originally purchased by both HCRRA and CP as a possible LRT corridor. However, with no LRT projects pending in this area, Hennepin County has since identified this site as “surplus land”.
As a result, efforts to sell this site to MTN for use as a bus yard began in 2018. This required Hennepin County to 1) purchase the land they did not own at the site from CP, and 2) authorize staff to negotiate a purchase agreement with MTN. This purchase from CP and staff authorization was passed by the previous County Board in 2018 prior to Commissioner Fernando’s inauguration.
What is the current Purchase Agreement?
The current purchase agreement states that MTN will buy the site at 37th Ave. NE & University Ave. for a price of $1.85 million. However, the purchase is contingent on MTN’s ability to secure financing and municipal approval for its purchase before Aug. 2, 2019. Should MTN not fulfill these obligations by Aug. 2, 2019, they can waive those contingencies or terminate the purchase agreement. If MTN satisfies or waives the contingencies in the purchase agreement by Aug 2, 2019, a closing date is anticipated on or before Aug. 30th.
Timeline
So What’s the Problem?
In order to satisfy the contingency in the current purchase agreement, MTN must receive municipal approval. However, there is little to no time remaining to secure the required approval before the contingency period ends.
What is Commissioner Fernando’s Position?
Commissioner Fernando was inaugurated after the County Board authorized the purchase of the 37th Ave. NE & University Ave. site. Commissioner Fernando met with NEOO Development Partners at their request, provided them with information regarding potential funding streams, and directed them towards appropriate County staff leaders. She did not take a formal position on the project during that meeting.
It is Commissioner Fernando’s position that the purchase agreement should not be extended beyond Aug. 2, 2019 if MTN and NEOO partners cannot outline a reasonable path for securing the necessary municipal approval.