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Item No: 05C Meeting Date: Mar 14. 2022 mou- Ds �.,r ■ r Type of Business: Consent i � City Administrator Review: City of Mounds I/iew Staff Report To: Honorable Mayor and City Council From: Jon Sevald, Community Development Director Item Title/Subject: Resolution 9558; Consenting to Assumption of Housing Development Agreement; Silver Lake Commons, 2637-2665 Mounds View Boulevard Introduction: With the intent of selling the apartment complex, improvements were made to Silver Lake Commons in 1998 using county funds for affordable housing. In order to obtain this funding from Ramsey County, the County required the City to consent to the sale of the property. The property sold in 1998 and 2018. The current owner, Burnsville Parkway Estates, is selling the property, but must first obtain the City's consent, consistent with the 1998 agreement. Discussion: Sumner Field was a 73-acre public housing project first built in the 1930's in north Minneapolis, near 1-94 and Olson Memorial Highway. In 1992, several of its residents filed a lawsuit against the U.S. Department of Housing & Urban Development (HUD), Minneapolis Public Housing Authority (MPHA), and other government agencies, alleging that the concentration of public housing in north Minneapolis contributed to racial segregation. In 1995, a settlement, known as the Hollman Decree, required HUD/MPHA, to relocate 770 public housing units outside of minority concentrated areas, in addition to other requirements. As part of this re -settlement, MPHA purchased Red Oak Apartments in 1998, from MSP Real Estate, Inc (MSP). In 1997, the Mounds View EDA considered selling land to MSP to expand Red Oak Apartments to include townhomes. But, the EDA opposed additional affordable housing at Red Oak (EDA's property was developed as Mounds View Animal Hospital in 2001/2002). Ramsey County provided a grant to MSP to remodel the apartments, conditioned upon the City's consent' to the sale from MSP/Mounds View Family Housing LP to MPHA, which included construction of ten townhomes intended for residents of Sumner Field (i.e. additional affordable housing). The City consented. Ramsey County provided funding. The apartments were remodeled and the townhomes built, and Red Oak Apartments was renamed Silver Lake Commons. Based on the 1998 Cooperation Agreement between the City and MSP Real Estate, any sale of the property requires the City's consent. The property was sold in 2018 from Minneapolis Public Housing Authority to Burnsville Parkway Estates LLC. Contingent upon the City's consent, Burnsville Parkway (Bill Xu) is selling the property to Silver Lake Commons LLC (Lang Guo). Strategic Plan Strategy/Goal: N/A Financial Impact: N/A Resolution 5198 (Dec 8, 1997) references MN Stat §471.59 (Joint Exercise of Powers). This Resolution authorized the Mayor and City Administrator to execute a cooperation agreement between Minneapolis Public Housing Authority, MSP Real Estate, Inc (Milo Pinkerton), and Mounds View Family Housing LP (Milo Pinkerton) for the development of Silver Lake Commons