We'll probably fully Make your Joe stared. Coleman. Yang here. Chair Johnson There are one to 5 present. One excuse at the Commissioner Coleman item number one staff report Sr 25 dash, 2, 5, 8, introduction to a tentative developer status extension request districts. 2, 4, 5, 8, Wards, 1, 6, 7, Parents, we have a separate put on this item today that will come before us and some with 3rd there, several wards and parts several projects. But we live to into one position. So we'll see if have any tips to developer. Said a stitch or quest coming. This is the presentation for tat. It over to Ty Director thank you. Chair Johnson. Yes. Has Sarah's becoming uptick
with a presentation on this. And thanks for noting us. It is one presentation and several of the items, but on the DECEMBER 3rd feature a meeting, each item will be voted on individually. Just noting that the efficiency and ease going to the mall now and ability to ask questions either after each individual to the are at the end. Thank you as All right. So thanks for the unity And just jump right in. Welcome story. Thanks. So as a reminder, disposition policy allows each or a tool more tentative developer status following an rfp process or submission of a development proposal. The status prevents the a jury 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. Te TDs is typically awarded for 2 years. And with the jury authorization, the designation could be administratively extended for 6 months by the executive director. So the for projects that we're talking about are those listed here, the hands project. Lori, though, face-to-face and 10 36 Marshall. And these are the ones that currently have outstanding tentative
developer works. The first is the hams project following an rfp tape evening was awarded TDs for the Hands Redevelopment Project in JANUARY of 23. That status expired in JUNE this year and was administratively extended to the end of this year. The project will result in the construction of 110 units of affordable housing in one building. And then after every use that will create an additional 86 affordable units as well as a commercial market space marketplace. During the TVs period. The developers successfully pursued over 4 million dollars in funding from the Met Council and Ramsey County. And earlier this month, the site was designated as a local historic district. If health community engagement, Sessions worked
through systematic design, undergone environmental testing and rezone the site to t 3. In addition, the developer submitted an application to face consolidated rfp process for funding the results of which we should know next month. If the project is awarded funding, the jb thing will finalize their financing. Complete the site plan review process and following a jury 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 me to they can take several months, which is part of the reason for the extension request at this time. The nxt project is Lori Bill. Following an rfp process. The TDs was awarded in MAY of 23. That status expired in JUNE of 25 and again was in administrative Leah extended to the end of
the year. The project result in the construction of 87 units of affordable housing along with the grocery space and retail space. And during this TDs period, the developer successfully pursued approximately 4.9 million dollars in funding council Ramsey County and the they secured 9 Section 8.11, rental subsidies as well as 9 housing supports. They've engaged with community stakeholders and become site surveys geotechnical instructional analysys if completed a commercial marketplace study and identify commercial management partners. The developer has also submitted an application through any to face consolidated rfp process. And again, we'll know there those results next month. If that project receives funding, Florida will finalize their financing. Complete the site
plan review process and following a jury board approval enter into a development agreement and obtain building permits. The next project is face to face at 11, 70 arcade. This project was awarded TVs and tune of 23 following an rfp process. Tat status expired in JUNE. It was a dentist rate of extended until the end of the year. The project will result in the construction of 24 supportive housing units and 6,000 square feet of office space for face to face. During the TVs period. The developer has successfully pursued almost $675,000 in funding from that council in Ramsey County. And they were recently recommended for an additional board of 1.0, 2, 5 Million. They've launched a capital campaign to raise funding for the project and continue to pursue funding for the project, including a
current application to Ramsey counties. Critical corridors program. In addition, they've secured 24 housing supports and completed phase one and phase 2 environmental analysis case. Developers also submitted an application through major face consolidated rfp process. Again, we'll know the results next month if they're funded face-to-face will finalize their financing. Complete the site plan review and zoning process. And following a jury board approval will enter into a development agreement and obtain building permits. The last project is from Community Land Trust project at 10. 36 Marshall. They were awarded TDs in APRIL of 2023. That status expired in MARCH and was administratively extended until the end of OCTOBER. Recognized for off a little
bit with the timing here. It just made sense to consolidate all of these requests for says trying to come to the board and then come back again. So we understand it's technically expired. The project will result in construction of 6 ownership units for households at or below 80% of area median income. During the TVs period, the developer has successfully pursued almost 2 million dollars in funding for the Met Council and Ramsey County and was awarded up to 1.2 million dollars in affordability. Gap for those and buyers were going to be purchasing the units. In addition, the Environmental review has been completed, working on architectural drawings and a big end. The site plan review process. Activities that still need to be completed, includes securing bank financing and finalizing the development budget. Completing the site plan review process and obtaining any required zoning approvals. And following a jury approval entering into a development agreement and
obtaining building permits. The developers indicated an ability to complete these items and clothes in the coming months. Therefore, the action that will come before you on DECEMBER 3rd will extend tentative developer designations as shown on the side here. 18 months for him score a goal and face to face and 12 months for 10. 36 Marshall, I'm happy to take any questions. If there's anything I'm unable to answer. We have project mnagers representatives from each development project team here to answer any questions. Thank you, MISS Do any commissioners have any questions? Commissioner thanks to Thank you so much for this informative update. I think it's worthy of noting just how hard it is to build and our city and our country right now. It's taking takes 2 years just to get to important
milestones which are a lot of work and we're still not done. And that's not the problem. Anyone in this room. But that's just it is a huge process, I guess. And I'm curious and I support the extensions of all of these. But what are the one of the checkpoints along the way that our staff puts in place to make sure that we're seeing these projects make significant progress over time and that we are lessening the likelihood that we're back here in 2027, potentially extending again particularly wondering if we up the ante on those check ins or those those checkpoints after we've already extended once. And chair Johnson Commissioner Nick or that's an excellent question. I think the biggest barrier to moving forward is fun day. And as I mentioned, the the first 3 projects that talked
about hands, Corey Dillon, face-to-face all need significant amount of deferred funding from mh. Okay. That's the only organization that hs that kind of dollars available. And in order to complete the capital stacks on these projects, they really need to get those awards. And as we all know, the funding climate is increasingly competitive and many of these projects have been submitting applications for the last 2 to 3 years and not being awarded for various reasons. And I'll just say that that sort of the first obstacle when we do award tentative developer status outlined in the border. Port is a set of benchmarks are a set of expectations that the developer needs to work toward and if we can look at that list and see that the developers making significant project progress toward those
benchmarks. Then that's when we're sort of willing to support extensions. So we see that you're working toward this. We see that you've lot of funding together. We see that you are on track. But for a small handful of items that's where we are inclined to work with them to do extensions. Thank you. Appreciate that. Additional contacts as sneaker on this. I think it's question from my in this more so around. You mentioned the image of a funding and I know that this has been a cycle. Of several projects coming multiple years to try to get funding. I know last year overall, it seems like city of Saint Paul's a success for much of f funding was quite challenging. Wat exactly are we seeing a kind of hearing Are there any inclinations that there might
be a little bit of a different outcome that we from the previous year that some projects William Porter's or anything committee members are the shares could do at this time to assist with the projects themselves. Chair Johnson, that's excellent question. Tougher to commit that. Sure I think what we're seeing overall is that a lot of our projects are scoring really They're great projects. There's a lot support behind. Then. There's a lot interest in getting moving forward. But that's also the case across the state. So there's a lot of folks out there who have really great projects and who are serving, you know. Various needs and check all of the mh boxes. And there's just too many projects to fund. So I think you're right. We were unsuccessful last year and hopeful that that's not the
case this year. However, we have been extremely successful with the Metropolitan Council and Ramsey County in terms of securing grants for a lot of these projects. So there is a lot of support overall. That's that's evident. Casey, other questions on item. We appreciate us on thank you to all of the project developers I see. Think you believe everyone represented. And so if we do have additional questions, I'm sure they'd be willing to share with them that I'm sure that for you know, for a lot of us, we've been familiar with the pojects because of the long endeavor that you're taking on, too, really, you know, my word to transfer MISTER Landmarks. across the city address in the form housing that we've seen come back and restore properties that truly are making right now are in need to be Pete, some tender loving care. So I appreciate these
items will come back before us that next week because next week, but on the meeting, but the heat after that that so thank you. Taken to the suspension amount us not your curveball, but I do. We'll take a take. A motion Council 5 from Commissioner Bowie to suspend the rules. All those in favor. Books. We just did. Item. Number 3, a suspension item Sr 2, 5 dash, 2, 5, 7, Promise grant presentation from Neighborhood Development Center. Ijust want to take this one in one of the things that we had last year was a Promise Act update from Meta and neighborhood development company. And we actually have nbc here to be able to provide a little bit of an update because right now there are around 2 Michael is open and I think commissioners are aware of that. But if you weren't last year, we heard about the
round one numbers and they've been able to come back with some additional as the paper around too. The cycle is open currently what they believe a deadline of DECEMBER 14th. That is correct. Wonderful. And and just so I can get your first and last should he rounded? But on became CHAIRMAN. Thank you so much for being here today. Being able to answer the call that we had. I think it's important for us to be following jst overall what opportunities are available, too businesses to nonprofit organizations and I were done actually being able to see wat especially for those that are along eligible corridor, getting some updates from a state program that we hope to see. You continue to be successful in both cities, Minneapolis and Saint Paul. So I guess, director from have anything further to say about Only thing I'll add is that I
know there's a lot of entities in the community that really excited to hear this information and get the updates. I reach out ensure that the years of Business Review Council knows about this and so that they can go online fund that Harry Uhl's Watch the video as well and asking them to sort of spread the word. So all that good information that we're here today, we can spread throughout the community as well. Wonderful and thank you so much, MR. Met from the Brunt development center for being here. It means a life as we know that meta wasn't able to make it just for the state, but that it's in the reporting as well. And the folks have additional questions for both perspective organizations after this. We're happy to help connect to and follow up. And the key to the economic developments have team that
work ticket to all here today. Thank Council Johnson and members o the Council. My name again issue here at mit with in dc Neighborhood Development Center. We are a 30 plus year old organization headquartered University 6.25. Do university in Saint Paul. We work in several different areas throughout the Twin And we part o our role as an organization is to assist entrepreneurs who are either low or extreme low income, too. Really live out their dreams through entrepreneurship. We provide trainings. We provide access to capital as well as business services and real estate development opportunities for those entrepreneurs to start and grow their you councilmembers. You MAY be
familiar with one of our flagship incubator spaces, Midtown global market in Minneapolis, which serves as beacon of light for those entrepreneurs. We have about 30 different entrepreneurs the opportunity to grow their business. And so that's little bit of who we are as an organization. In 2023, the state of Minnesota had just in law. The promise that grant program our organization was appointed to administer the grant portion as COUNCILMAN Member Johnson mentioned, Meta ministering the loan component of te of the grant, loan component of the law program.
And so any loan related questions? I would ask that the those crest be directed to meet him today. Prefer we've provided a slide deck to walk you through our frst round of distributing the grants for this program. The program began or launched in JUNE of 2023. We in the big picture, what we're able to accomplish in 2023 for that first round, we were able to get that 9.5 million dollars into the hands of entrepreneurs who applied for te grant. There's over 650 different entrepreneurs who received these funds. The average grant size was about 14 million, 14,000. And this the makeup of those businesses 83% of them bipoc entrepreneurs. We believe it
was mentioned that we have an impact report on our Web site. Please, if you have time to take a look and download that impact report, it will showcased more of these details of the first round. Just to kind of pick a little bit a the data that we were able to uncover for this first round of the Promise grant program we had over 6,6200 applicants come to our doors. Last So you can imagine in dc again, 30 plus years were not a technology company. And so it was a new embarking for us to develop an application portal that the applicant could take advantage of this opportunity. So. We weren't really prepared for 6,000 applications, but the technology did withstand that
volume as you can imagine, 6,000 applications not all of those eligible. And so we had to wrk the eligibility criteria that is is outline and illustrate it within the law to ensure that we were really taking time and with the applicants who were eligible. And so if you see in the side of the right side of the slide here as we get our first pass, a village ability check with these applications, about half of them became were able to move on in the process. And for Saint Paul, there was over 800 applicants who were eligible to move forward. Additionally has a question. You got stop MISTER Matt. If there's a hand commissioner certainly strides a little bit to that. What
commissioner really go ahead Thank you so much. I'm sure really a curious question. What worked really well in south Minneapolis because It's really apparent that they at kids have the majority those who are eligible kids So just like what but well as good model for them. Yeah, I think I think the makeup, yes, member the makeup of the businesses I believe in south Minneapolis and the density of those businesses along the Lake Street corridor, for allowed for many of those folks too. Get into the application portal right away. And so you see those numbers are higher. Versus in north Minneapolis, businesses along
the West Broadway corridor. There is, you know, not the density is as concentrated as it is on Lake Street or University Avenue, for example. So we feel that that what we've learned that that has been what has contributed to and part of the high education numbers for south Minneapolis versus North Minneapolis. Thank you. Continue Thank you so when you look at the numbers for Saint Saint Paul. Of the a v. It backing up a moment. 3300 eligible applications that were going through the portal and we awarded 652. That's about 20% of the applicants that awarded. So it was it was very competitive, very competitive process to get a grant. Some of the ineligible criteria. We able
to fom the portal. As you can see in the some of it was due to revenue. State law had a threshold of or below was the criteria the threshold entering into the program. And then as you see here, many of those applicants were outside of the of that threshold as well as the geography. The law did have specific areas that the grant applications could be eligible from? So, for instance, all of North Minneapolis, for example, parts of Saint including East Side, Saint Paul West, part of what parts of West Saint Paul fraud town, for example, and then parts of south Minneapolis, which would include the Lake Street corridor, the riverside area.
So some of these were the target areas that were axed out in the law. That applicants had to be a part of or their business needed to be placed in operating in those tactics. Commissioner, thank you. Chair Johnson, just a question that so that there was a lot of confusion and consternation among Mike business owners on the West side about whether or not they eligible in the geography originally or not. Can you hear them mention just now is is the West side part of the geography or not? I believe that there is it's a corner of the way. I do not have that map with me as of right now prepare the map. But I believe that parts of the West side, maybe eligible for the grant? Yes, okay. And I can. We can get that information for Yeah, I know there was a question and then
I think and we clarified that let's head was eligible and we had business owners reach out and do they still weren't eligible by geography? So I would really appreciate the clarification whether those partners absolutely think. And on our website Napa can kid enter in their address and it will take them to a The Google map pinpoint exactly where the territories are the boundaries. I just want to be able to tell constituents to a like that. Think Commissioner thank Chair Johnson. It's this data on the slide here for both cities. This also can you expand on what flag and eligible but not randomly selected means? Yeah, absolutely. So this is a
makeup of the off 3 cities are both cities. And then when you see a to answer yur second question, eligible were not random. What was important for us? Oe of our guiding principles was to do this could have an equitable distribution. And so we randomized the applications as they came through and application would get number and then we would randomized batches so that we can provide an euitable process. And so what you see there is 1500 applications that were eligible but were not selected due to the randomized patients. To preserve equitable distribution. A Okay. Thank And then I was also curious what flag meant part the flags part here like what what is that like that they
have something on application. I was something that we identify or verify the burden the way that the we're in partnership with to administer the program and await the guidance that we've received from Dede is that the burden of proof is on the applicant. And we were unable to dig into the applicant was not able to demonstrate. The a crate that they met the criteria. And so these were that percentage represents. Applications we could nt determine. We they were not eligible, but we couldn't go further deeper within. Why, ok? And my last follow-up, as I was just wondering for the for the applicants that were eligible but not randomly selected t have a process too, to get them to apply for your
second round here because know you're second downs. Opening up. Great The we've the first round last 6 and JUNE until about JUNE 2024, until I will say JULY of this year and in JUNE of this year when the legislators closed session, they did make changes to the law which did incumbent upon applicants to reapply. If they applied in the first round. So. And what we're able to do we're was build a self-check on the on our website. So us an applicant. You could go to the website and do a self verification. Check to see if you met the new criteria based on the law changes. And if you did, then you would be encouraged to continue to
apply so if you were in round one, you there was no guarantee you would be eligible for round 2. Thank you. Due to the law, change us. Round Getting back to around one really digging in a little bit to what we've discovered for Saint Paul. 3.3 million dollars were distributed to 198 applicants, which is again, I know if you take a composite of the larger scale of the 2 took the total program of 9.5 million. Zooming into Saint Saint Saint Paul and the 3.3 million is 20% again of those applicants were able to receive very competitive process. The grant Everett Grant size and Saint Paul was a just over or just under 17,000. Some of the grant usages for this program kicks. It working. Capital is as it
was illustrated in the law. And you can see the highest usage of the grants were for equipment or payroll, which is really getting at help allowing those entrepreneurs to build their capacity and be more efficient. Some stories you can. We have over 2 dozen stories to date on our website. We've got a qr code. There many different various various types of businesses and many different success stories. One in particular goes grocery. They're on I believe snowing avenue next to Hamlin University. If this was an opportunity for that individual that on entrepreneur to use these grant dollars to get more equipment and fixtures and his grocery store. Some of our community partners that were
alongside us The it was very important for us in dc to do this in partnership we had when we first began process early or late 2023, we had over 60 different community organizations throughout the Twin Cities come to our doors and really an opportunity to talk about and imagine what this program could do for all of our community. And so you can see here some of the organizations that we're in partnership with us and contract to help distribute the grant program. It was 80 s, for example, among American Partnership or hat. All as well as led the Latino Economic Development Center. Some of the support that we're able to provide to the applicants a term that we use in the in. In our industry
caught technical assistance. We were able to provide over 80 atp skews me 80% of the applicants needed technical assistance, which mans they needed support with either the technology and signing onto the app. The portal they MAY have help with navigating the portal. They also needed help with some some language support. So we're able to translate all of the documents in the aplication in the requested language that they needed other supports. Just general application questions as well as the financial documents that were required for the program getting that one-on-one technical support
from ourselves or our community partners was it was invaluable to those applicants. Some of the key findings in round one word that there is a digital design divide that that exists that we've been able identify. Many of those applicants had a very difficult time being able to. Have their documents ready for uploading into the portal, which was requirement for us to verify their documents. And so when you think about how ensure that applicants can move forward and have this. Take the opportunity to improve their operations. It's important that the detect the type of technical assistance in this type of program addresses inability at times too. Use their phone to upload require tax documents, for example. So that technical assistance really helps them slow down and say, how do I
passed test? Get my operate business operations in order so can take advantage of type of opportunity. Commissioner thank you. Chair Johnson, thank you so much. I just wanted to touch on this point because saw island doing are in full sessions. The first round. Can you speak to out of curiosity, as I know and he red across the street from around a communal life. Very was there a partnership was I'd like former partnership is I do know there was some utilization of the the computer left time to help people with it some of their documents. Yeah, yes, yes. We were able have it was contract, but it wasn't You with the library to ensure applicants could you could use
their computer The however. Due to circumstances out of our control. The library that that relationship that opportunity had to end because of the redevelopment that the library is going under. For this year for this year. Correct? We had if you if you look into the power point there, we had over 15 lb opportunities where entrepreneurs can come to a computer lab and get the support one-on-one similar to the library internally at abc in internally and and at our community partner organizations as well. They open their doors and allow the
applicants to come. It. So I if there are there any of that, there are no other questions regarding round one. I would transition to round 2. try instrument will spend about minutes We usually we try to stop in transition and we some time at council and we have one more presentation that I do want to allocate some time to So I'd about 5 minutes or will wrap up. Actually chair. Yes, sir. Chad Johnson. All sold for around in round one. It we were w were focused on and aware of potential fraud do too. This type of opportunity and program we put in measures of training with our staff, our technology also checks and balances, which will allow deep investigation of the applications that we have. We were able to review applications multiple times to ensure that these applicants were that the applications
were who they say they were. We also use technology software to do identification. Check of those individuals using such a platforms like plaid. So it was important for us ensure that we had mitigation for fraud. Some of the and that we've been able to enhance from. round one streamlined application We we were we. We're able to reduce the number of questions in the application to help with the efficiency. We've also provide her it instituted more application labs in various locations throughout the geographies. And we've also are starting to do and dig deeper into more data so that
we can, for example, have a better understanding of not only the geography is that the applicants are coming from, but then also what some of their pain points beyond this opportunity so that we can leverage this information to be able better serve. These entrepreneurs ongoing. And round 2, we have committed partners as we did in round one. Some of the new partners we have for round 2 include around a land trusts clue as as well as women's center. Some of just thinking about taking a dig a little bit deeper into some of the numbers right now we have in Saint Paul over 292 eligible applications that are in our portal today. Those applications are going We have 3 stages that the applications
go through. Those applications are moving diligently through that process. Today we have awarded 23 applications are have 23 grantees for Round 2 equals about $420,000. Some of the eligible and ineligible reasons for applications certain documentation that applicants would need to the burden on them upload or prove would be home-based business deduction, for example, those that that was another instance of new law change. And so that is a new reason that applicants are not eligible another high, a percentage of ineligible applications are Texas applicants not having their 2024 taxes complete. And for the interest of time, what we with what the way that applicants can connect with us
is coming to in-person application lab. Do not need an appointment. They can walk if they if they choose. Obviously, if they do take an appointment, they register for an appointment through our website as well as we have a phone number that applicants can access. And my call to action getting the support too, for this body is to help us to. Can continue to encourage applicants to apply for this opportunity? And that's my presentation. And something I would just say as initial I'm wondering back and seeing the ineligible applications number climb up a little bit. I think from mount ones. Like numbers, you know, there were some folks how cope with a we're working to like But I'm seeing the a notable number. Get a little high. And
I'm just and you that's sort of time, guess that we have within this. What are you can get some of the reasons for like driving factors is that just because more people are finding out about it, maybe they haven't been through. The initial vetting are like, yes, what kind of communication gets to them and is immediately turn out Are they waiting still not knowing? Yeah, I think a Absolutely. Sir. Chair Johnson. We've been learning that many of the applicants from around one to 2 to the law. Changes have have. It's been very difficult for them to not only get their financial documents in order, but if their taxes are not done, then that's another issue for them be eligible to apply. Think of all that
increase? We have that. Doing outreach and communications in our communities to really encourage the applicants to come application lab so that they can learn what are the criteria eligible criteria? And we've also, as I mentioned at the top, in instituted a eligibility check so that they can on their own. See if they're eligible before taking the time to apply. There's about 30 questions on the application, as you can imagine, entrepreneurs are very busy. So we want to make sure that they have the opportunity to really learn about the opportunity to an information session or from our outreach efforts before they invest the time to apply. Its are not eligible. So hopefully that answer your question. Chair Jones, know, I
thank you so much. One thing think is a follow-up would really helpful is from the numbers. I know that we have different eligibility. Create different eligibility. Geographic geographies in the city. It would be really helpful. Sold my word. I represent peace editing, Paul. So some of the great insight out of ticket here lies my word as well. So scouts meetings and Ward 6 comes from a bully able even if we have a little sliver of the West side and some of the pieces of just where folks are eligible in which corridors they can apply on it would be really helpful just to see that a person assure Cassidy. i'm just curious about like the breakdowns of the services and businesses that are and the along university, like just kind of which one, you know, where we've seen a lot of the communication. And I think that just helps when it
comes to also encouraging my businesses folks that are in the criteria and the area to at least look And so on this. I would love to see the numbers as if we however, specific we can get just in the follow-up. So just where coming from, don't know if track that, but from the back it. But it would be cool to see that just by those the blocks that eligibility map. Absolutely. Chair Johnson. We can do that. We can do it by district. If you'd like or area neighborhood. Absolutely. Thank commissioner thank you so Question first. Want to say thank you chair bringing this back. I know last year was like really great for all of us to have this opportunity to. Well in our neighborhoods and know I'm really excited. Also have a strong like Saint Paul delegation says state representative every lease
strongly advocated for these funds. I do want as a follow-up be able with you and your its team because I do know, especially with the around the Clinton library being a strong anger and that going to tmporary closed. There is a relocation to having to Brown and I would love to help facilitate. Information. So you're aware of those services that still exists at having to Brown and also discuss where there are community have spaces just because we are understand, you know how important these public spaces are for people to get access to Internet and all the different tools for them to be able to submit its application. Such want to follow to Absolutely. I look forward to Thank you. Wonderful. Thank you so much
for being here. Thank Item number 2 staff report sr 2, 5 dash, 2, 5, 8, Cheree proposal introduction. students know we're in the midst of wrapping up. But the season for this year prior to the DECEMBER 3rd vote and the levee But if we want to be able to present you some of the things that none of these be new to you. We did have a chance to just kind of walk through each office to talk. Tell the commissioners about it. But this is budget review in the atrium recommendations and transparent form. Just so folks are on the same page. Usually this would be Kevin deputy director, greener cfo, but to send emergency home. She is not able to be here. And so we are wishing her well. And then we have a
director McMahon here, too, give her her report Dame. Deputy director thing was heavily involved in a lot of the crafting. So if you do have specific questions as follow-ups director man doesn't hold, we have come here, who is also taking notes our behalf as look at those 2 early as possible. But we want to give that time ability for her too. Handle what's happening at home. So with commitment. Thank you. Chair Johnson, as you know and filling in a large budget shoes of our cfo deputy director Nicole, 3. And so I know there are other folks here available to help supporting answer questions if there's some detailed questions but as well more than happy to follow up with anybody in to work with use your Johnson. Any
follow-up from your colleagues and commissioners additional information that we can prevent to be. Wasn't to be helpful. So just noting here, you Green a certain with some pd engagement action, responsibility, just noting that we're really working to ensure consistency within our department. To be able to provide information like your to date, actual spending and things like that. Lot of that budget, that sort of daily bdget grind, if you will, that working through continuously throughout the year to be in a position now to be able to provide information for you as you consider the budget and budget change us. As well as for a revealing budget proposal is evaluating programs and proposing and then passing the h budget at the end of this year as we are essentially at nearly
approaching. Noting that this is set up by source. So when you look at the top of the side, you'll see the sport and then it will also know what those 2026 proposed. Investments are also noting that first column is that 2026 budget proposal that was made the summer you that have the recommended change from this body. It'll show that total fund allocation and then also notes sort of within. Within the city where that allocation ultimately lies just knowing that sometimes it is in a different department are different area due to the nature of what program might be. Instead of just reading line by line through each one of these for you because you have it. You can read it. Any
follow-up questions. But just noting, again, the ones with the parent that a cull are a reduction from that particular source. And as you go through this again, noting that sometimes surces change, so perhaps for a line item. A source such as La wraps reduced but housing trust fund MAY be increased so that that the total at the end of the day might remain, for example, 5 million and downtown office to housing conversions. But itself is less of a source into that particular fund and housing trust fund is to see later, maybe an increase or so. Just knowing the layout of this as you go through and you look at it. But there's a downtown office of housing, conversions and reduction of the law has the source noting in there for that emergency rental assistance and increased from you have on the
supportive housing contracts, which is actually with Ramsey County. There and then small. Still small scale development increase from and then the carry over for the familiar family us Pilate, which isn't a lefty. Any questions before move just keep going and I'll look up in between for question. Sorry, Thank you. Chair Genson idea of question about entire families pilot. So this is the carrying over but also at a transfer. To a different department are because office of Financial impairments from my understanding that it an s that was that that was the city attorney's office was the department's. So would this be a carry over in a transfer of departments as managing this second here,
that one know so many families of mayor faces 2 different programs yet. So familiar faces House and Office Neighborhood Safety. Right now, the mayor families pilot allocation is a housing trust fund allocation. If it were to be carried over through la funding, the placement for that within the city with would be within policy. 2 separate programs to separate completely different things. But also I was talking to her All we are working addressing the housing trust fund allocation this year. This mght actually not be carried over into the year, but it could be. And if it is, the suggestion of the recommendation from jury is the is he is resources to be able to make that a city a pilot has fallen to not reallocate money, too, from
the housing trust fund here. So neither a transfer om one s and it's not is not actually addressing familiar faces as department at all. So this is not funded by law. Had this is funded through the Housing Trust Fund. For 25. Okay. Yes. But historically has been funded. I no, it was a first-year Piet pilot we've been fnded once through the Housing Trust Fund. Got it. Thank you. Yes. And now on to the Housing Trust for time. And also known as number items are technical changes when we're looking at the source and what is coming from just because as you're all more than familiar, different sources have different compliance requirements, have other different obligations that come with on that says sometimes the program itself might remain at the same
funding level or have changes in the source in order to be more effective with that program. And with the reporting requirements and other additional funds that come with that. So again no to the office, housing conversions and the change in the Source for Matt reduction of the law has source this shows an increase in the Housing Trust fund as a source to that. It's small scale development ad. Use familiar families. And those are on there. And just a quick note here for publication. Just so folks can catch it. So the downtown housing and Office Housing residents that 303 million dollar allocation and a lot luck Haitian combined is the where the 5 million is made up from. And then say what on the slide? You'll see the carryover that I your family's pilot. No longer recommended. Allocation fund from here. I too want to time to just Yes,
man and the team that working on the excess of the polling unit acquiring just to provide context behind this recommendation. One of the charges that we've given economic development team has been to be realistic about the planning, be real us about what they feel like they can accomplish in your fun or, you know, in 2026. And that came out of multiple discussions with them. And this is a reflection of that request from the spotty by being able to share that they have every inch, which is a function that planning process for 2026, the actual subsidies and tend to acquire and 2027. So just wanted to say I'm I was personally grateful to see just that transparent communication ahead of time when it comes to just bean able just dollars elsewhere. So. Yeah, thank you. I appreciate that. And appreciate noting that because that's maybe a preview even
to the rafters. 2027 budget in looking exactly at that 2026. That it does make more sense be looking at those preapproved plans and use that opportunity to look in day even deeper into into the funding requirements. If we're looking at something like subsidies and exactly coming in, that's what happiness accent or you can provide so that that budget proposal or budget request that's likely to come next year for 2027. Well, again, to the point tear encroachment of actual spending be really realistic and have more of sort of the data behind it to show. Exactly. So the questions that you all Commissioner, thank you. Chair John said I just have a question around just like the city department and this is just one of things you know, that's being that picky. But and it says the Department
Housing, Economic Development, one of them says economic development is panning housing and all like these is the you. Is this a still pe the hour? If you could talk about what's planning and what housing and how that's different from. housing economic development. Yes, start of the Johnson Commissioner Sorry, in here. It's noting either which division and Katie it's or if it's in a separate city departments. So sorry about that. Maybe like it's already here. So for the all the staff level ones, those are al in pd is just noting which division. So the and housing Economic Development division, right. And goes on to a stick. I think it kind and parent had a collective. So in just so I can have marked occasion. So the planning division is,
is that just the staff for it? And then the housing division is that the actual? Subsidies to go into that? The development. Chair Johnson, Commissioner It is the staff that would administer So within the dod that housing division that would be administering no subsidies him and similar. They think of it as the teen. thanks to will be talking house and its jewels plan, planning team. You know, then you're probably talking to to develop me talking to Director Lloyd those Thank you. looking at pdf or Asians and Cdbg, you'll see that district Council noting here of a reduction. It is not a reduction, just noting in overall district council funding. Again, this goes to what we're discussing earlier in terms of source and just again, knowing that our sources come with different obligations, different reporting requirements,
cetera. And I know we want to ensure particular for community partners cetera that we can provide the funding without making a so onerous that they're not able to use that as fully as it would otherwise be able to that they can really focus on those great things that they're doing is community partners that we really want to encourage them to continue to do as much as possible. And so this is an effort to really try and streamline things to make things equitable across the district councils and to allow that opportunity for even more focus on the good work that they're doing. The loan enterprise funds. We again commercial corridors and you'll see the District Council noting funding own enterprise fund and the business retention and expansion. Commissioner. Thanks. Chair Johnson. And I also think most
likely will have follow-ups after the sun. Reach out to you and both the chair about it. But I just want to understand that business retention and expansion is that the thing is that business assistance fund like I didn't see anything about that. The atf on here. can. I can just something say that some ensure it's not the same. Assistance fund is actually a technical change piece that I believe when when we sent back contention, still have the sides that were included. And for the technical change science. Those. I don't think let's sit up here, ok? Shouldn't have We have eyes for the technical changes. Yeah. And some technical changes that pd are proposing our Kerri overs whereas the assistance fund carryover is codified there. And so these are just cherry or like a terrier related changes proposals basis for that year's budget.
But thank you. But the actual technical changes, its captured a 200,000 businesses to ok, I just want to make sure we still had money in the Business Assistance Fund. Its been really helpful whenever we've had a crises come up. Purposes corridors. But yes, it be helpful to get like, you know, the full, the full spreadsheet. If this helpful in this snapshot. Sure. Chair genson commissioners of the help I can send those separate noted technical changes to al after and then you can follow up again with any questions you have after looking at those about. I think I think it's a. I thing the document that full indication so. I think just being able to get the full presentation with that. The pd technical changes included the helpful. For sure. Thank you. We will do that. I know 20,000 focus on the budget here and
that conflate the 2 was for the ball and times 10 General fund a Tray general fund 2026. Investments. Amounts. Obviously everything's important. So you've children, operative, the transfer critical software upgrades and audit committee. There. And the parking fund. And so that transfer to Rivercenter reduction that transfer to the city General Fund for parking meters, the parking meter transfer reduction. And I know that there's This body's had a lot of discussion about transfers out Excedrin. I think you'll see they recommendation regarding that reflected and this slide here. Thank you for a live release on security, cybersecurity. And again, here's receive the district
councils, as I noted earlier, a reduction in the cdbg. But increase from parking fund again, having to do with just some of that construction and, you know, constraints of the cdbg as the source for District Council us. I saw I had from Commissioner Jones. Thank Chair Johnson, the director of and I just I apologize that I didn't catch this before, but I think the for the heloc you Brown Library, Library contracted security. I think the amount that these at up to the one 9190,000 script. But I think that the hleigh hero wide releases 100 and the library contracted security is 90. We could double check those. I started catch it earlier. But just one flight yeah, there's are a couple there. A couple changes to that. I noted just from. Air and critics compare well, to
be able to make sure that those numbers are correct. Just so its transfer believe it So, yes, the intentions there, her to fully covered. Thinks nfl. And that I thing that do, yes, transfers that are here, if you're just the 3 transfers that we're proposing, 2 of them are the River Center and the General Fund for parking meters. As you see, those have been there. Out here. And actually that brings us to the end. appreciate noting that distinction and feel feel like I said, if you if there's any things like like that for leverage related matter, that you all caught, please make sure, obviously to Johnson,
myself. Let us know who will be double checking that with the actual spreadsheets instead of just presentation in transferring. Yeah. Happy that answer. What I can now happy to follow as well as more details. Okay. And I don't know what I want to make, which can muster makers as well. We got in the downtown housing in the office to housing conversion dollars. As I mentioned, kind of I think briefly to you, I believe that that includes the one-million-dollar over 1 million dollar tree over for us to housing conversions from this year. And I just want to make sure that that is checked in on just clarify because and when he too, have discussions about what else could happen with that money, if engines gray here to capture for the 2026 budget, just kind a moot point that's one thing. And it will hand over to commissioner maker. Thanks, Chair Johnson. I just wanted to. And we get super in the weeds. I think it's funny how we always apologize for
getting in the weeds were just literally our job. Especially when it comes to budget. But I do want to just step back and thank you so much for your leadership on this. You have taken such a close and careful look at this budget and proposed something that I think when you when you do step back, what we're seeing here is a budget that solves for so many of the things that we want to see. I want to particularly highlight your partnership on making sure that we have the 5 million dollars for downtown and your support proposing a really specific program for using those dollars and getting those dollars out the door so that they don't just set also moving the District Council funding out of Cdbg. I don't think we can say loudly enough. How much of a difference that is gonna make
her district councils? The only reason that all of our district councils are I would say held hostage to all of these requirements is because some of them have this requirement federal funding and by moving that out and also making sure we're fully funding the request, they're getting more money and then on the strings attached. So it's just it's huge. It's gonna make all the difference in the world. And then finally, Shouting out to getting all the money for a commercial organizational assistance program, which we still need a new name for. I can't stand this. The whole app. Graham and those dollars going out the door. They made a huge difference. Our community. And with this budget, we're also making sure we keep that up to 1.5 million that we had last year. So I just I love
everything that's happening here. I think that there's a lot of shifting around a lot of it's kind of hard to see it. When you just look at power point, but really a great budget. Thank you so much. Commissioner Bakery really appreciate Padma appreciative the just partnership to work to you. Being able to kind of wlk through multiple iterations. and I will say that I think one of the most, the 2 real key valuable, both this budget cycle and the folks that are fun really, everybody has been wonderful like all of our team has been really amazing. But we have chills and gyms and deputy Director Green and chief budget officer come in for a moment. But we I think
that without saying and then in the communication with that directive man and just being able to be like hero. Here's what we're ding. And both of like both of us being able to have a new businesses myself as chair this this year going around and then also has entered direct investing around perfect time to figure that out. But for sure, we have like 10 times in and our finance loans in definite agreement amid fresh air and helping us find him some of these publications. But you're helping your clarity as well. Commissioners have been really helpful to identify key clue. Like. Clear that we carry is a body. So that has been really health just knowing where to go. Commissioner, can yeah. Also like to live on to the things today because having also been a a process with training, Ijust really want
to commend you. I felt like my priorities and specific aks for represented well in cre, too. And just an incredible amount of detail like I learned so much about the hr budget this year. If you're a budget this year and kudos to you on it. And then lastly, as budget chair and her national which will start DECEMBER 3rd, officially will be back from maternity leave. There are some but just that we didn't have in our budget and you stepped in as the jury chair to be like. I think we in we can make happen. So the team are to ensure that all the council's priorities for not only identified but also funded was just a great team effort. But huge kudos to you for stepping in and say I think we can find money here for this. I just really
appreciate partnership the time. So thank you so much. I'll add on to you know, serving with you as the vice chair this year for the first time. I also learned a lot and really appreciated all the work that you put into the budget and just the creativity effort that you brought to find the sources from all the different funds. I'll just highlight. I mean, literally great stuff here, but I really particularly appreciate the funding for the district councils. I know last year that was something that the priority that you and I talked about in a letter council shared and we did get in the budget last year, but we've got some money in this. But this year even more because of the work that he's done with with with our budget and so
really appreciate that. B, 2, a few minutes ad I committed trying to make sure that we don't go past 15 per pieces. But thank much. McMahon. I want to transition a little bit and that's related to talk about the downtown by Telly, Commission eac or in part because, however, commissioners have heard about this 5 million dollar investment in downtown through multiple committees commission. Commission make up also, I know commissioner has a lot of work within her own or does well to hear a little bit more about this time time investment. And so you should have a national. And now with you about that about the And I just Stringer to prepared to talk a little bit more about it. Sure, things that she wanted. And I know that this has been shared with people and is available for the record. If you have questions
about it, this is something that we are also considering as an additional one thing. I heard last year's feedback. Whenever it can commissioners would like to see MAY be something that was really different. But as an addition to budget item, especially as it relates to the jury. It's transformative and important for staff to know exactly where they're coming from so they can adjust to it. And also some of us pain over the next couple weeks for staff to be included in that process. But for sure, like when we're looking at. You know what our options are and where we go from here. I wanted to be able to get some time to commission. You could talk about this and the opportunity Stephanie questions yet. Thank you, Chair Jhnson and thanks for your partnership on this idea. I'm grateful for the
opportunity talk briefly about this. And then really this an initial conversation, a part your feedback that the goal here is to propose a very specific program for the 5 million dollars that is already being budgeted. So this is not a new fund or new money, but this is the 5 million dollars that the mayor proposed that we're currently projecting tough. And in this upcoming entry budget. But as we all know, it's not enough just to put money into something give it a headline. What we really need to do is give it the program and to be as clear as possible about how that money will go out the door so that it does go out the door. Unfortunately, we saw last year we did allocate a million dollars for downtown permit Lakers. None of those were used. And so we really want to make sure that we do things
differently this year and very concrete about the program early on. Not once we've adopted the budget, take a few months to figure out the program but figure out the program along with the budget so that those dollars are ready to go out the door on day one. So I developed this in conversation with Johnson with the Downtown Alliance and Downtown Development Corporation, as well as some down time. Developers and really the purpose is to make downtown more inviting walkable and safe by catalyzing, both residential and retail development. Those are both critically important because they tend to be self-reinforcing. Right? If you have a lot of people living downtown, they can support retail. And so you tend to see retail follow. But in order to get people to want to live or work downtown, you need to see retail because that's what makes the streets vibrant. And that's what makes them feel safe. And that's what gives people the opportunity to buy things that
they need for their jobs and their lives. So the goal here is to catalyze both of those 3 million dollars for new housing development in 2 million dollars for street level retail focusing on primarily the streets that are in the downtown investment strategy that are prioritized for development. The idea is to make the funds easy to use. So while sometimes we are used to putting a lot of different requirements on our funding and of course, our normal requirements, any time we put dollars into a project 88 per filling wage will apply. But rather than adding more and more requirements, the goal here is to really keep it very simple. So as you'll see for the new housing development,
the idea is to just sort of blankets a $10,000 per permanent housing unit to be issued with a building permit or potential with a certificate of occupancy and director McMahon and are still in conversation about what's the right point. But sort of once the building has been built, these dollars will be will be yours on a first-come, first-serve basis they can also be to compensate for any development expense acquisition Pre-development. So making it as flexible as possible. And there's no requirement for affordability. Again, this is just we want housing built downtown and we're ging incentivize that. The second for street level retail it can be used by a new tenant or an existing tenant for Bill that tenant improvements for facade
improvements anywhere downtown. But again, with priority along those key streets, which are kind traffic. Shaw. The goal would also be to prioritize projects that are receiving other city dollars so that we are not supplementing our city dollars, but we are we are supplanting them and then we have more of our dollars available to use elsewhere on other projects the proposal here is for this fun to be managed by te downtown alliance, mostly for streamlining and simplicity. The daunting alliance is able to get dollars at the more quickly than we are. And we know that our city staff are have a lot on their plates already. So try not to give him yet. Another thing to do. I'm grateful that the tree, but it actually adds staffing, for commission quarters program and other projects. But we d want to create a whole new program that
overburdened staff that have to administer. And then we would ask that the downtown alliance would report back to us twice per year on what disbursements they've made and anybody who's applied it nt been funded just or able to keep that oversight. And the proposal finally is for this 2 for the street level retail to be structured as a forgivable loan. So essentially, 3 years after you've been in the space, if the loan is forgiven. So there's a bit of a incentive care it not just open downtown, but to stay downtown. And then finally, and this is important right now. There's a 3 million 2 million dollars sort of split between the 5 Million. However, it was. It was very apparent to me in my conversations with the downtown Alliance in particular that it might be much easier t move the retail them to move the housing just
because it's easier to expand an existing business or move the business and then it is to convert an entire office building into housing. And so the the asterisk there is to say that if the either one of these is exhausted. First. That that do with those dollars can be used for that use. So if we have 3 million dollars for new housing and there's more housing coming and not retail coming than we can use the additional 2 million for housing if retailers going crazy and we're not seeing a lot of demand for housing and we've exhausted the 2 million for retail than we can some of the housing allocation for retail. So kind of whichever one is most in-demand. We're not going to hold the other pool constant because again, the goal is to get the dollars out the door. Whichever one is moving more quickly. I will
say there's some limitation in that. We can't can't use our dollars for retail. The counties are housing trust fund dollars the max that we can put in to street level retail would be 3.2, 5 million. But we can go, you know, 1.2, 5 above the 2 Million. If that we're moving faster than housing. So I think pause there. There's a lot of talking. Welcome questions. Welcome comments. And again, this is really in pencil. It's for for your feedback. But Michael would be to get your feedback to revise this and to have something ready to officially launch at the same time as we adapt our budget and the 3rd. A couple a couple for. No, just bcause I a chance to kind of a little bit further review. What for hobby in the funding source for the 3 million I the house. And I do think one-point-seven-five
million would be restricted to the affordability constructions of law funding. So might just be a mental note of like where is 1.0? 2 5 million of that 3 million would not There still would be affordable housing restriction on. 1.0, 75 million that just of a state statute. This and I think separately to questions slash they don't expect really a response. But think really helpful too. To make sure to the 2 million dollars street level retail. All its allocation to downtown alliance does such base with them. Our economic development team as well just to make sure that the yar included in the process itself. So those are my 2 nights of just like how that changes, because I don't know if you tell us in their original proposal at all. I think it was mostly just for
housing and office. Housing conversions with piece there. But I think it just might be helpful to close that loop. Actually support of you know, I think, especially with so much of the things that we have heard from our downtown I want to see this 5 million dollar investment. I shared that with you to like move out the door and 2026. And you know, if this is to do that and to make sure the investments actually, because I anticipate further investment future years for downtown and overall know that like this is a multi-year project. And so any time we're playing money somewhere and it's staying in our budget. It just feels like it's kind of defeating original purpose. So those are my 2 nights like I'd love to to know kind of the economic development standpoint from their division from director Lloyd and 10
staff and then the housing piece. I just want to note for your awareness. Thank you. Chair. And you're right. I think a lot dollars restricted to 80% her income. Which shouldn't just posting under it to like shouldn't impede concern things get. I know that we discuss that. But there's a little research and now for any of the housing trust fund dollars, that's not the case yet. Thank you. And your point about Punishment pd is well taken and at that. And I think. Especially given that we want to prioritize projects that haven't gotten other funding from the injury or the city, then we would need the downtown alliance to be talking to staff, to And I will say that we increase the staffing for the quarter funding too full-time person within his face. So they 5th. That hate is So. Commish Joe, thanks for Jones. And I think
commissioning has her hand and then we'll end with Commissioner Just going have to over to the council on But thanks for just I know if temper questions really quick comment. coming ahead about the the 3 million to infer street level is like I know some these housing projects take longer to kind of come due Russian and to get their funding. But I think my understanding the downtown alliance can provide feedback is is knowing the commitment is there is kind of what keeps developers at the table. And so I think it would still take longer for, you know, that money to go out the door like to see it would be nice for 5 million both the door next year. But I know that can be challenging it. So I just want to make sure that we will still get I think, based on some of the requirements
between want to be like, we'll still get there. But I do want to make sure like we do still get those housing projects and developers know that like we do want to still do this year, even though we're kind of breaking out that way. That thank you just an absolutely I think that's a lot of that will be I think we are messaging that and we will continue to message that the the only reason I actually considered adding in the retail is from the feedback from the downtown alliance. That just said they actually said we could use the entire 5 million and retail. And 26 no question. And that would actually spur housing I know that this body feel strongly about the housing. So it's a So thank you yet. 2000, sounds like a really great plan. And I was just one more clarification. Is proposal? Something that already has the support from the downtown Alliance and also from pd 2. Thank you and saying it has the support of the downtown
Alliance is part of pd. So hard say shuns looking at commission we just got this some so looking at it. I sense Commissioner Nick are, but question so we can follow up and communicate on How Great. Thank you. Simple. Yet no questions. I think we want to give some time, but I do want to just be able to highlight. They do appreciate on the scene. Is this pilot this like? Re 2 activation and you? All right. We're just like some of the challenges, particularly in the midway and how now we're always looking at ways that we can utilize our policies and processes to just, you know, help activating get tickets inside of our vacancy, vacant building. So I'm super excited to see how this unfolds in the
next year, particularly as making sure everything in downtown the life getting some some incredible businesses there. So I I look forward to connecting with you, but I just want to share, you know, could also the pd team because, you know, we're always trying to figure out how we can no increase our retail. Thank Absolutely. I think of that. I agree with Commissioner in the sense you know, and so many places across the city. a fatality from this helpful. So just being able to see him and learn from the first year. That's why it's going to be so imperative that that we have resources to look with this initial I think it's always been a little bit of a pilot and a sense of all right. This is an investment that we're taking to see move so that's aazing. And I really appreciate commission here for taking the time to put this together. Think it's
really helpful and transparent. And the folks have questions about particular when you sit with it. I know that ws my experience. That with a little bit longer and I'm like, okay, have a little more questions. Feel free to reach out to commissioner comes to PRESIDENT Maker with additional questions that I think just to the point of being able to hear back from pt and economic development team because we do have another meeting before the 3rd. Maybe that update would be really beneficial to us. going to spend time with our agenda.