HomeMy WebLinkAbout2026_03-23_CCP_EDAECONOMIC DEVELOPMENT
AUTHORITY
MEETING
City Hall Council Chambers
March 23, 2026
AGENDA
1. Call to Order
2. Roll Call
3. Approval of Agenda and Consent Agenda
These items are considered to be routine by the City Council and will be enacted
by one motion. There isn't a separate discussion for these items unless a
Councilmember so requests, then it is moved to the end of the Council
Consideration Items.
a. Approval of Minutes
- Motion to approve the following minutes:
• February 23, 2026
4. Commission Consideration Items
a. Alatus Development Update
-Approve a Resolution Approving a Notification of Termination for the EDA's
Expired Agreements with Alatus.
5. Commission Discussion Items
a. BLVD Apartments — Request for 4d(1) Tax Classification
-Provide direction on Lakeshore Capital Partners' request for assistance at the
BLVD Apartments.
b. Concept Review: Flame
-Staff requests that the EDA review a development concept, provide
comments, ask questions, and indicate whether the City would be open to the
project.
c. EDA Work Plan
Presentation only — no action required. This is an opportunity for the EDA to
ask questions and provide feedback regarding the draft City of Brooklyn
Center EDA Work Plan.
d. EDA Update
Presentation - no action required.
6. Adjournment
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MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
FEBRUARY 23, 2026
CITY HALL – COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President April Graves at 7:40 p.m.
2. ROLL CALL
President April Graves and Commissioners Dan Jerzak, Teneshia Kragness, Kris Lawrence-
Anderson, and Laurie Ann Moore. Also present were Interim City Manager Daren Nyquist,
Interim Community Development Director Jason Aarsvold, Planning Manager Ginny McIntosh,
Economic Development Manager Ian Alexander, City Clerk Shannon Pettit, and City Attorney
Siobhan Tolar.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
President Graves moved and Commissioner Jerzak seconded to approve the Agenda and Consent
Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. March 24, 2025
2. December 1, 2025
3. January 12, 2026
3b. RESOLUTION APPROVING THE AWARD OF A GRANT UNDER THE
MICRO-GRANT FAÇADE PROGRAM FOR MI TIENDITA
SUPERMARKET LLC
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. EDA UPDATE
Mr. Nyquist introduced Interim Community Development Director Jason Aasrvold to give the
EDA update.
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02/23/26 -2- DRAFT
Mr. Aarsvold noted that, as discussed at the last meeting, his intent was to come ot the Council
with a written update for development activities that are occurring in the City. He said there is a
written memorandum in the packet that the Council could read through. He added that he would
highlight a few things that have been happening with discussions around the Opportunity Site,
including the addition of potential market-rate housing. He said there is also work occurring
around several vacant lots that need to be filled around the City. He added that there is also work
happening in the business community, specifically the Social Security project that is happening
next to HOM furniture, which is in progress and should be open by spring.
Ms. Aarsvold said future activities in 2026 have some initiatives listed right now, but he will come
with a full and descriptive list of those efforts that he would like to undertake and make sure the
Council concurs with them, and use that to guide the work of the EDA in 2026. He added that
each month, he will try to pull the most relevant items and bring them to the Council. He said if
there are questions, he is happy to answer those now during this time, and does not want to take
up too much time in the meeting.
Commissioner Lawrence-Anderson asked about the market-rate housing on the Opportunity Site,
and would presume it is part of the 2040 Comprehensive Plan and that it would meld with that
plan. Mr. Aarsvold said the simple answer is yes, there is a master plan approved for that whole
area, but any projects that would come forward that are feasible would need to be consistent with
all the plans that have been approved.
Commissioner Jerzak asked about the two parcels on pages 25 and 27. He said perhaps Mr.
Aarsvold has signed an NDA, and that is understandable, but he is assuming that those two parcels
that are in initial discussion are not in the Opportunity Site. He asked Mr. Aarsvold if that was
correct. Mr. Aarsvold said he does not have the page numbers, so he asked for clarity.
Commissioner Jerzak said it was regarding the housing development updates. Mr. Aarsvold said
that Commissioner Jerzak is correct.
Commissioner Jerzak asked about the former CL and Homes development, which he thought at
the time were going to be rentals, but it has never been clarified whether or not those will continue
to be rentals or part of the development agreement. He asked if they shed the development
agreement, and what their intentions are. He said he went to the CL and Homes website, and it
stated there were two houses and five lots listed for sale for $2.6 million by Remax. He said he
gets questions about what those houses are going to be. Mr. Aarsvold said those homes and lots
are for sale, and they have gone through the process that needed to happen there, and they are
being marketed for sale. He said the advice he got from legal was that the development agreement
still needs to be dealt with. He added that the affordability restriction was removed from the
property, but there is still a development agreement in favor of the EDA. He added that whoever
might buy that property would need to come and deal with the development agreement with the
EDA. He added that if there ever were a buyer and there were to be changes, those would be things
that the Council would need to be apprised of and approve. Commissioner Jerzak asked if there
was any EDA exposure, and if that is still connected with the parcel across from Culver's, or if that
was peeled off separately. Mr. Aarsvold said as far as EDA exposure, there is none. The
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developers have obligations to do certain things on those properties, build infrastructure, and future
things of that nature, and are still required to do that. He said he did not know the status of the
north property that Commissioner Jerzak was referencing, and asked if Planning Manager Ginny
McIntosh could provide some information regarding that.
Ms. McIntosh said as of right now, they have only been focused on the south side, which is just
south of Lancaster Commons. She said she has been working with the owner's representative,
trying to get all of the paperwork done, and just filed a number of documents at Hennepin County,
including the plat for the south site only, which is partially constructed. She added that the for-
sale piece is trying to make as clean a deal as possible, and get agreements filed and finish out the
common site improvements. She said this spring, the owner will wrap up landscaping, lighting,
and any other outstanding items that are left. The owner is trying to make it so that a developer
can come in and have five triplex pad sites left with initial connections, and it will just be a matter
of building. She added that the two triplexes on the north end are effectively done, other than
finishing their stairs and a few other small items.
Ms. McIntosh continued that the north site did not file a plat because the City Council determined
that they did not want to proceed at that point. She added that the current property owner, which
is the lender, CCM Mf1, would need to go back to the drawing board, and as a result, is solely
focused on selling the south site. She added that once the south site is sold, the owner will deal
with the north site. She stated the owner has asked that the City Attorney begin working on the
purchase and development agreement, because they are in default and need to split the north and
south sites as they were combined under the agreement. She stated the reason the lots need to be
split is so they can find a buyer who will know what they are getting into, and that they have to
come before the EDA to renegotiate that agreement.
Commissioner Jerzak said the reason he asked about the north site is that there was a tremendous
amount of resistance by the neighborhood because Hennepin County will not grant access from
the county road. He continued that on page 26 of 27, he asked about the plans for Resurrecting
Faith daycare and a conference center at the Opportunity Site that included an apartment, and if
that would have an affordability component. Mr. Aarsvold said those are unrelated items, and as
of now, there is no plan for a housing affordability component, and the developer has left and will
not be coming back. Mr. Aarsvold said that, as far as Resurrecting Faith was contemplated to be
on its own parcel, but it would need to develop in conjunction with some other kind of housing,
because there would need to be infrastructure brought into that site in order for that to be served.
He added that until something happens that will allow infrastructure to be brought to that site, they
are in limbo, and the City will have to vet out what will be around Resurrecting Faith to know
what can be done.
Commissioner Jerzak said the Senate Bonding Tour talked about the potential of getting money to
finish that project, but if there is no infrastructure there, it probably is not going to work out. He
asked about a billing permit issued for Fit Butters, and asked to explain what type of business that
is. Ms. McIntosh said Fit Butters are nut butters that are enhanced with protein, and are fitness-
inspired nut butters. She added that they have been distributing at Los Campionas Gym and had
a partnership there, and have relocated to Brooklyn Center, but are based out of Minneapolis and
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02/23/26 -4- DRAFT
are sharing space that they have outgrown. She added that their new space is 13,500 square feet,
and they have been working to get it open, and had hoped they would be open sooner than they
are, but that is what happens when dealing with state plumbing.
Commissioner Jerzak stated that because CVS is privately owned, he frequently gets comments
from constituents asking about who owns the property. He said the property is not owned by the
City, but constituents think the City controls it. He said he is often asked if that location will
become a Krispy Kreme or something else. He asked if Mr. Aarsvold could even disclose what
possible intentions that property could be used for, or if it is strictly retail. Ms. McIntosh answered
that currently, the CVS is actually a planned unit development, it is PUDC2, which is the City's
old commercial zoning, which has been changed and was approved for a pharmaceutical retail use;
however, the development agreement on file does not include any of the underlying C2 uses that
were permitted previously under the old zoning code. She added that without any changes, it could
become another retail space, or a restaurant, or anything that would be permitted in the C2
commercial district. She added that the location has options, and it is not as restrictive as some of
the other PUDs in the City. She stated that there has been some interest in commercial or mixed-
use, with discussions for a grocery and a restaurant space, but she is not sure where things stand,
as she has not heard from that applicant in a while. She noted that there has also been interest from
some cannabis retailers, too, but nothing has stuck yet.
Commissioner Jerzak asked if either Ms. McIntosh or Mr. Aarsvold could give an update regarding
the status of the Chamber of Commerce and what the City's role is, if any, on who oversees this.
He said he understands this is private, and when he looked at the web page this morning, the
Chamber of Commerce had 20 followers, but it has been very quiet. Economic Development
Manager Ian Alexander responded that there has been a healthy discussion with the Chamber of
Commerce, and he has assisted in recruiting new members of the Chamber and told those new
members to contact the Council directly. Mr. Alexander said the Chamber took longer than he
ever could have imagined, and he stated that this was due to the person attempting to set it up being
a very busy individual. He said a number of people have been spearheading that project.
Commissioner Kragness asked how one becomes a candidate for a possible Krispy Kreme, and
said she was asking for a friend. Mr. Aarsvold said typically Krispy Kreme finds sites based on
the location criteria, which is 100 percent demographic-based, with enough traffic and spending
that is happening in that area. He said the City could reach out to the brokers that work with them
and figure out what that criteria is, and figure out to what extent some sites in the area do or do not
meet it, so if that is something that Commissioner Kragness would be interested in, he could find
out that information. Commissioner Kragness said it would be worth a shot, especially with one
of the comments during the Informal Open Forum about developing the City and bringing more
people into the City to spend money, so reaching out to get the information would not hurt anything.
She said she would be open to seeing what that information would look like. Mr. Aarsvold said
he would reach out to Krispy Kreme.
President Graves said most of her questions had been asked by Commissioner Jerzak already, but
she was curious about the triplexes, as they are right across the street from her. She said if she is
understanding correctly, whoever decides to purchase those has to purchase the other plots as well.
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02/23/26 -5- DRAFT
Ms. McIntosh said those triplexes are PUD developments, so for the south side, which is closest
to President Graves, that is partially under construction, would be sold as one development. Ms.
McIntosh continued that there are seven lots there, and each of the buildings is on its own lot, but
they have shared access, parking, trash, lighting, landscaping, and storm water. She said the intent
is to sell to one developer who can have residents move into each of the two triplex buildings and
get some income flowing, because each triplex building is three units each, and each unit is 1,200
square feet, three bedrooms, two baths. She added that the former developer was not able to get
anyone into those buildings because there were questions about access and the stormwater, and
the developer was trying to construct five additional buildings, so no one wanted to live on an
active construction site. She stated that now that the work has been completed on Brooklyn
Boulevard, which removes a big hurdle, and the parking lot is in, it should make it easier to
generate some income, and then hopefully the remaining five units could be developed. President
Graves said the list prices are for seven lots. Ms. McIntosh responded that the list price is for the
entire site; there were supposed to be seven triplexes, and two are essentially done. President
Graves said she was just curious because if she is trying to pitch the property to somebody, she
wants to give out the right information.
President Graves thanked all of the City Staff for their presentation and hard work. She added that
at the Northwest Tourism meeting, she talked to several folks from Brooklyn Park about the
economic and community development that they are doing. She noted that staff there are
continuing to work across jurisdictional boundaries to make sure that they are lifting up advisory-
type bodies of businesses to make sure that everyone is thoroughly engaged with Brooklyn Center
businesses, and they have been having good success doing that in Brooklyn Park. She said it may
have been off to a slow start, but she was happy to hear that things are picking up and working
more intentionally around coordination and collaboration across the cities.
Commissioner Jerzak said this EDA plan is very helpful, and he appreciates the effort going into
it because it allows the Council to answer and get accurate information. He said the City Staff are
the experts, and he was recently asked if the CVS could be turned into a cannabis dispensary, but
he would not know that type of information, so he appreciates these EDA updates.
Commissioner Moore thanked City Staff for this update, as this is something Commissioners have
been asking for a few years, as the City has continued to see businesses exit and very large parcels
of vacant land are scattered throughout the City. She noted that the Staff was able to do this update
pretty efficiently in a meeting, and although the Council gets a weekly update, she appreciates
what has been presented during a Council meeting so residents can go back and watch it if they so
choose.
4. ADJOURNMENT
President Graves moved, and Commissioner Kragness seconded the adjournment of the Economic
Development Authority meeting at 8:02 p.m.
Motion passed unanimously.
Page 6 of 48
Council Regular Meeting
DATE: 3/23/2026
TO: Economic Development Authority
FROM: Ian Alexander, Economic Development Manager, Amy Loegering,
Economic Development Coordinator
THROUGH: Jason Aarsvold, Ehlers
BY: Amy Loegering, Economic Development Coordinator
SUBJECT: Alatus Development Update
Requested Council Action:
-Approve a Resolution Approving a Notification of Termination for the EDA's Expired
Agreements with Alatus.
Background:
In 2017 and beyond, the City's EDA was actively seeking development opportunities for
the Opportunity Site, encompassing the area formerly owned by Brookdale Ford.
Resurrecting Faith World Ministries (RFWM) assembled a development team with
Alatus and Project for Pride in Living (PPL). RFWM and PPL required assistance from
Alatus to provide construction and financing expertise and resources to enable the
project to move forward.
The initial concept included two large muti-family buildings, including market rate and
affordable units with an entrepreneurial market plaza developed by Alatus, two
affordable to deeply affordable multi-family buildings developed by PPL, and an
conference center with 24-hour childcare center, and wellness and hairdressing
services developed by RFWM. Altogether, the combined projects contemplated for
what was identified as the Phase I redevelopment of the Opportunity Site would have
included approximately 770 market rate and affordable housing units. As this project
was contemplated, Alatus would have constructed the Phase 1 infrastructure, including
public and private roadways, utilities, green space, and a regional stormwater pond
system servicing over half of the Opportunity Site.
Alatus entered into a Preliminary Development Agreement with the City on March 26,
2018, which terminated in accordance with its terms on April 1, 2019. A second
Preliminary Development Agreement was entered into on April 8, 2019, replacing the
terminated 2018 agreement, but that agreement terminated in accordance with its terms
on April 8, 2020.
City staff worked with the developers by providing technical assistance to obtain
numerous grants for the Phase 1 redevelopment, including several infrastructure grants,
a grant for the entrepreneurial market plaza (EMP), and a pre-development planning
grant. Even after the second agreement expired, City staff continued to work with the
developers, with the understanding that a new agreement would be executed when the
developers were all prepared to move forward.
Page 7 of 48
Between 2018 and present, Alatus has continued discussions with City staff but has not
assembled construction financing to move the project forward. Most recently, Alatus
partnered with the NHP Foundation, a developer of primarily affordable housing, which
commissioned a market study analyzing the housing market in Brooklyn Center.
In 2022, the EDA approved a proposed “term sheet” for a definitive development
agreement of the Opportunity Site. The proposed dates for development in accordance
with the term sheet have since passed without proceeding to a definitive development
agreement and neither the preliminary development agreement nor the term sheet were
binding obligations of the City's EDA.
From 2018 to present, Alatus has not assembled construction financing, PPL has exited
Phase 1, and RFWM remains committed to its concept and believes it can assemble the
necessary resources to move forward with its project independently. As most recently
discussed, the project would be relocated outside of the Phase 1 Opportunity Site.
Staff recommend EDA approve a resolution to formally terminate all agreements with
Alatus. This termination will permit staff to seek new development opportunities. Any of
the parties to the terminated agreements may individually bring forward proposals for
consideration.
Budget Issues:
None
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
1. PowerPoint Presentation — Alatus Development Update
2. Resolution — Approving Notification of Termination (Opportunity Site — Alatus)
3. Termination Letter — Brooklyn Center Opportunity Site (Alatus PDA)
Page 8 of 48
3/18/2026
1
ALATUS DEVELOPMENT UPDATE
Ian Alexander, Economic Development Manager
•EDA entered into a predevelopment agreement in 2018 renewed in 2019 with Alatus, Project for Pride in Living and Resurrecting Faith World Ministries.•Agreements have expired and Phase 1 has stalled.•Alatus has not assembled construction financing, most recently partnering with The NHP Foundation, a developer of primarily affordable housing. •Staff recommend formally terminating expired agreements to allow staff to seek new development opportunities. •Any developers to the terminated agreements may individually bring forward proposals for consideration.
2
Alatus Development Update
1
2
Page 9 of 48
3/18/2026
2
3
Alatus Development Update
4
•Questions?
•Comments?
Alatus Development Update
3
4
Page 10 of 48
4935-0028-3544.2
Commissioner _______________________ introduced the following resolution and moved its
adoption:
EDA RESOLUTION NO. _____________
APPROVING A NOTIFICATION OF TERMINATION
(OPPORTUNITY SITE PROJECT)
WHEREAS, to allow time for exploration of development feasibility within the area
generally referred to as the Opportunity Site, the Economic Development Authority of Brooklyn
Center, Minnesota (the “EDA”) and Alatus Brooklyn Center MD LLC (the “Developer”) entered
into a Preliminary Development Agreement, dated April 8, 2018, which expired on April 1, 2019
and was replaced with a Preliminary Development Agreement, dated April 8, 2019, which
expired on April 8, 2020 (collectively, the “PDA”);
WHEREAS, the PDA was not extended in writing by the parties after its expiration; and
WHEREAS, on September 26, 2022, the EDA approved a proposed “Term Sheet” for a
definitive agreement for development of the Opportunity Site as contemplated by the PDA under
which the proposed dates for development have passed without proceeding to a definitive
development agreement and neither the PDA nor the Term Sheet were binding obligations of the
EDA; and
WHEREAS, the EDA has reviewed a draft of a letter notifying the Developer of the
expiration and termination of the PDA and Term Sheet (the “Termination Letter”) and setting forth
its intent not to extend the PDA; and
WHEREAS, the Termination Letter is intended to provide a written record for both the
Developer and the EDA that the PDA and the Term Sheet have expired and terminated;
NOW, THEREFORE, BE IT RESOLVED BY the Board of Commissioners of the Economic
Development Authority of Brooklyn Center, Minnesota that the EDA hereby approves the
Termination Letter in substantially the form on file with staff, and hereby authorizes the Executive
Director to execute the Termination Letter on behalf of the EDA, and to carry out, on behalf of the
EDA, the EDA’s intent thereunder.
March 23, 2026
Date President
ATTEST:
Secretary
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Page 11 of 48
4935-0028-3544.2
_______________________
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Page 12 of 48
City of Brooklyn Center I 6301 Shingle Creek Parkway I Brooklyn Center, MN 55430 I 763-569-3300 I BrooklynCenterMN.gov
March 23, 2026
Alatus Brooklyn Center MD LLC
IDS Center
80 South 8th Street, Suite 4155
Minneapolis, MN 55402
Attn: Robert Lux
Re: Termination of Preliminary Development Agreement and Term Sheet with the
Economic Development Authority of Brooklyn Center, Minnesota
Dear Mr. Lux:
To allow time for exploration of development feasibility within the area generally referred
to as the Opportunity Site, the Economic Development Authority of Brooklyn Center,
Minnesota (the “EDA”) and Alatus Brooklyn Center MD LLC (the “Developer”) entered
into a Preliminary Development Agreement, dated April 8, 2018, which expired on April
1, 2019 and was replaced with a Preliminary Development Agreement, dated April 8, 2019,
which expired on April 8, 2020 (collectively, the “PDA”) and was not extended in writing
by the parties.
On September 26, 2022, the EDA approved a proposed “Term Sheet” for a definitive
agreement for development of the Opportunity Site as contemplated by the PDA. The
proposed dates for development have passed without proceeding to a definitive
development agreement.
Neither the PDA nor the Term Sheet were binding obligations of the EDA. This letter is
intended to provide a written record for both the Developer and the EDA that the PDA and
the Term Sheet have expired and terminated. By this letter, the PDA and the Term Sheet
are hereby terminated in all respects.
Page 13 of 48
City of Brooklyn Center I 6301 Shingle Creek Parkway I Brooklyn Center, MN 55430 I 763-569-3300 I BrooklynCenterMN.gov
Please contact me with any questions.
Sincerely,
_____________________
EDA Executive Director
Acknowledged and agreed:
Alatus Brooklyn Center MD LLC
By ________________________
Its _________________________
Cc: Tony Kuechle
Page 14 of 48
Council Regular Meeting
DATE: 3/23/2026
TO: Economic Development Authority
FROM: Jason Aarsvold, Ehlers
THROUGH: Daren Nyquist, Interim City Manager
BY: Kat Ellgren, Deputy City Clerk
SUBJECT: BLVD Apartments — Request for 4d(1) Tax Classification
Requested Council Action:
-Provide direction on Lakeshore Capital Partners' request for assistance at the BLVD
Apartments.
Background:
In Minnesota’s property tax system, assessed market values are converted to “tax
capacity” before calculating actual property tax payments. This conversion is made by
multiplying different “class rates” which vary by property type. These class rates are set
by state statute and intended to ensure different types of property pay taxes at different
rates.
Minnesota Statutes Section 273.128 provides for a reduction in property tax class rate
from 1.25% for market rate rental housing down to 0.25% if at least 20% of the units
have rent and income limits of 60% of the Area Median Income (AMI). This is known as
the Low-Income Rental Classification, or 4d(1). In addition, the rental housing property
must meet any of the following qualifications:
1. The units are subject to a housing assistance payments contract under Section 8
of the United States Housing Act of 1937, as amended;
2. The units are rent-restricted and income-restricted units of a qualified low-income
housing project receiving tax credits under section 42(g) of the Internal Revenue
Code;
3. The units are financed by the Rural Housing Service of the United States
Department of Agriculture and receive payments under the rental assistance
program pursuant to section 521(a) of the Housing Act of 1949, as amended; or
4. The units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or
the state of Minnesota, or a local unit of government, as evidenced by a
document recorded against the property.
If a property qualifies under numbers 1, 2, or, 3 above, the City and EDA do not have
any authority to impact the tax classification. The City and EDA; however, can
proactively approve or reject requests made of the City under qualification
number 4 above.
Page 15 of 48
The Minnesota Legislature recently reduced the 4d(1) tax classification effective for
taxes payable in 2025. Prior to that date, the class rate for a 4d project was 0.75% on
the first tier of value, and 0.25% on the second tier of value. The legislative change now
applies the 0.25% rate on ALL values. This has generated a lot more interest from
property owners seeking to qualify for the tax classification.
As an example of this, the EDA received a request for assistance from Lakeshore
Capital Partners asking the EDA to enter into a development agreement constituting
qualifying governmental financial assistance under MN Statute 273.128, enabling the
Class 4d(1) property tax classification for the BLVD Apartments. This would qualify the
property under number 4 above.
The BLVD Apartments is a 58-unit complex located 7015 Brooklyn Boulevard. The
applicant is requesting enough up-front assistance to meet statutory requirements (this
can be as little as $100) to qualify for the 4d(1) tax classification. In addition, the
property would need to carry rent and income restrictions to stay affordable at or below
the 60% AMI threshold. The developer indicates this restriction could extend as long as
30 years.
The proposed project includes interior unit renovations and upgrades, replacement of
the roof, exterior painting, and parking lot resurfacing. The estimated total cost for the
project is $856,000.
Primary Benefits
For a project like this, there are two primary public benefits. The first is that the rent and
income restrictions ensure the property remains affordable during the agreed-upon
duration. In this way, there is less risk of losing naturally occurring affordable housing
(NOAH). The second potential benefit is that the significant reduction in property taxes
may make it easier for the property to afford capital improvements, such as those
outlined in the proposed project.
The current rents at the property are $1,100 for a 1-bedroom unit and $1,400 for a 2-
bedroom unit. Current rent maximums at 60% AMI are $1,490 for a one-bedroom unit
and $1,788 for a 2-bedroom unit. Current market rents at the BLVD Apartments are
already well below the 60% AMI maximums.
Primary Cost
The costs associated with this project include up-front assistance and a loss in tax base.
As noted above, the up-front assistance can be nominal, so this is less of an impact.
The biggest cost comes in the form of lost tax base.
For 2026, the BLVD Apartments will pay a total of $106,668 in property taxes, $44,392
of which is the City’s portion of the property tax bill. If the property were taxed at the
4d(1) class in 2026, the property tax bill would be reduced to $22,006. The City’s portion
of this reduced tax bill would be $8,878. Assuming the City’s tax levy stays constant, or
increases, these taxes do not just disappear, they are spread out to the other taxpayers
Page 16 of 48
in the City.
Discussion
EDA staff is seeking direction on next steps for the proposed project. There are two
ways to proceed at this point: (1) direct staff to continue negotiations with the applicant,
or (2) direct staff to take no further action on the request. Given this is essentially a
request for financial assistance, the EDA has complete discretion over whether it wants
to participate or not.
• If the EDA directs staff to proceed, staff will continue to work with the applicant to
identify the specific scope of work for the project, timing, and the amount of up-
front EDA assistance. This would all be memorialized in an agreement
presented to the EDA at a future meeting for consideration.
• If the EDA does not wish to proceed, then there will be no agreement as noted
above and the applicant will need to continue projecting full taxes for the project.
Many, if not all, of the city’s rental housing developments already fall below the 60%
AMI threshold to qualify for 4d(1). For this reason, staff expects several similar requests
in the near future.
Some additional general discussion is warranted if the EDA is generally not interested in
pursuing EDA-driven 4d(1) projects. If that is the case, staff can relay that to applicants
up-front to avoid the time and cost of processing each request.
Budget Issues:
This action has no immediate impact on the budget, but if the requested assistance is
granted for the BLVD Apartments (7015 Brooklyn Boulevard), the City's tax base will be
reduced in future years.
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
1. BLVD EDA Application
2. Property Tax Comparison
3. BLVD Presentation
Page 17 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 1 of 7
THE BLVD APARTMENTS
7015 Brooklyn Blvd, Brooklyn Center, MN 55429
Class 4d(1) Property Tax Classification Request
58
UNITS
≤60% AMI
INCOME RESTRICTION +$1.3M
APPRAISED VALUE UPLIFT
$0
CITY CASH REQUESTED
$5.9M
APPRAISED UNRESTRICTED $7.2M
APPRAISED WITH RESTRICTION +$1.3M (+22%)
VALUE UPLIFT FROM 4d
Independent appraisal dated January 16, 2026 | Leased Fee interest
EXECUTIVE SUMMARY
Lakeshore Capital Partners, in partnership with the NOAH Impact Fund (Greater Minnesota Housing Fund), requests
that the Brooklyn Center EDA enter into a development agreement constituting qualifying governmental financial
assistance under MN Statute §273.128, enabling Class 4d(1) property tax classification for The BLVD Apartments. In
exchange, Lakeshore will record a Land Use Restrictive Agreement (LURA) restricting all 58 units to households
earning ≤60% of Area Median Income. Lakeshore is flexible on the 4d LURA term (10–30 years). Separately, the
NOAH Impact Fund requires its own 15-year LURA at 80% AMI. Bridgewater Bank has committed $4.13M in senior
debt. GMHF has conditionally approved NOAH equity. Target closing: March 19, 2026.
City staff advised that this application must make a “good-faith case for the proposed structure, including why Class
4d treatment is appropriate and how it supports a higher valuation of the property.” The answer is in the
appraisal: an independent appraiser valued The BLVD at $5.9M unrestricted and $7.2M with income restrictions — a
$1.3M value increase (+22%) directly attributable to the restricted structure that 4d enables. Granite City
Apartments, right here in Brooklyn Center, confirms: acquired $7.2M, appraised $9.3M in <12 months, 100%
occupied.
This application requests no TIF, no abatement, no bonds, and no City cash. Lakeshore self-funds all capital
improvements. The 10-year 4d tax savings (~$985K) fund the entire $856K renovation plan. The building improves,
tenants benefit, and Brooklyn Center’s tax base strengthens — all at zero cost to the City.
GMHF/NOAH Impact Fund — Conditionally Approved Bridgewater Bank — $4.13M Committed
Presented to Brooklyn Center EDA | March 23, 2026
Prepared by Lakeshore Capital Partners | Eric Wagner, Managing Partner
Page 18 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 2 of 7
Section 1 | Value Creation: The Granite City Proof of Concept
$7.2M
ACQUISITION $9.3M
APPRAISED +$2.1M
VALUE CREATED +29%
APPRECIATION 100%
OCCUPIED
Granite City Apartments — 3415–17 65th Ave N, Brooklyn Center | 72 Units | 100% Occupied
Granite City renovated interiors — LVP flooring, modern furnishings, quality finishes
Lakeshore acquired Granite City and, within 12 months, increased appraised value from $7.2M to $9.3M — a $2.1M
increase (+29%). Achieved through operational excellence, in-house management, and selective capital investment —
not rent increases or displacement. 100% occupied.
What Lakeshore Did at Granite City Why It Applies to The BLVD
Replaced dated interiors with LVP and modern finishes Same renovation scope planned for all 58 BLVD units
Implemented in-house property management Same management team, same operational model
Achieved 100% occupancy within first year Target: 95%+ stabilized occupancy within 12 months
Increased NOI through efficiency, not rent hikes 4d savings enable deeper capital investment
Appraised $2.1M above acquisition in <12 months BLVD appraised $1.3M higher with restrictions vs. without
This is not a projection. It is a verified outcome — in the same city, by the same operator, using the same
model now proposed for The BLVD.
Page 19 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 3 of 7
Section 2 | The BLVD Apartments: A Value-Add Opportunity
The BLVD Apartments — current condition | 7015 Brooklyn Blvd | 58 units, 3-story brick (1969)
Current unit interiors — dated carpet, builder-grade fixtures, oak cabinetry
The BLVD is a value-add acquisition. Solid brick construction, functional layout, prime Brooklyn Boulevard location — but units
are dated. Carpet replaced with LVP, fixtures and appliances upgraded, electrical panels updated, and a full 20-year Sikaplan
PVC roof replacement. Currently 80% occupied — a value-add opportunity, not a distressed asset. Lakeshore’s management
model will bring occupancy to 95%+ within 12 months.
Bedroom and second living room — spacious units ready for renovation
THE APPRAISAL PROVES THE VALUE CASE
An independent appraisal (Jan. 16, 2026) valued The BLVD at $5.9M unrestricted and $7.2M with income restrictions — +$1.3M
(+22%). The restriction 4d enables literally makes this property more valuable. This is exactly what City staff asked the applicant to
demonstrate.
Lakeshore acknowledges Brooklyn Center’s inspection process is a challenge that has kept other investors away. Lakeshore is actively
working with the City to help improve it — reflecting long-term commitment to this community.
Page 20 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 4 of 7
Section 3 | The Lakeshore Vision: The BLVD After Renovation
The BLVD — planned exterior renovation | Conceptual rendering
Virtually staged — representative of planned finish level | Living room, bedroom, bathroom
The same transformation Lakeshore executed at Granite City. Modern LVP flooring, updated cabinetry, new fixtures, and
stainless steel appliances attract and retain stable, long-term tenants.
UNDERSTANDING THE LURA STRUCTURE
NOAH Impact Fund LURA: 15 years at ≤80% AMI (required by GMHF regardless of 4d).
4d LURA: ≤60% AMI — more restrictive than NOAH. Lakeshore is flexible on term (10–30 years; NOAH requires minimum 10).
Class 4d restricts tenant income eligibility, not rents or finish quality. At 60% AMI in Hennepin County, the income limit for a single
person is ~$55K/year. These are working families — teachers, healthcare workers, service employees. Granite City and The Groves prove
this demographic produces stable tenancies paired with quality housing.
THE TRANSFORMATION: BEFORE & AFTER
BEFORE — Current Condition AFTER — Lakeshore Vision
Page 21 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 5 of 7
Section 4 | How 4d Savings Fund the Capital Improvement Plan
The 10-Year 4d Tax Savings Pay for the Entire Renovation
CAPITAL IMPROVEMENT BUDGET
IMPROVEMENT SCOPE COST
Unit Renovations New appliances, LVP flooring, electrical panels,
fixtures — 58 units $464,000
Roof Replacement Qt Commercial 20-yr Sikaplan PVC membrane $292,000
Exterior + Parking Exterior paint, parking lot resurfacing ~$100,000
TOTAL ~$856,000
10-YEAR 4d TAX SAVINGS PROJECTION (3% ANNUAL GROWTH)
YEAR ANNUAL SAVINGS CUMULATIVE
1 $90,000 $90,000
2 $92,700 $182,700
3 $95,481 $278,181
4 $98,345 $376,526
5 $101,296 $477,822
6 $104,335 $582,157
7 $107,465 $689,622
8 $110,689 $800,310
9 $114,009 $914,320
10 $117,430 $1,031,749
Lakeshore self-funds all capital improvements. The 4d tax savings over 10 years generate ~$985,000 in operating
capacity — more than covering the full $856,000 capital plan. The City contributes $0.
$985K in savings funds $856K in improvements = fully self-funded renovation.
Page 22 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 6 of 7
Section 5 | Financial Case & Community Impact
With 4d vs. Without 4d
APPRAISED VALUE (Jan 2026) $7,200,000 (Restricted) $5,900,000 (Unrestricted)
METRIC WITH 4d WITHOUT 4d
Year 1 Property Taxes ~$22,000 ~$112,000
Annual Tax Savings $90,000 —
Year 1 NOI $437,442 $347,725
DSCR 1.40× 1.25× (lender floor)
Year 1 Cash Flow $131,002 $69,554
Year 10 NOI $568,653 $429,472
Year 10 Est. Value $8.4M–$9.9M $6.4M–$7.5M
Value Uplift +$1.9M–$2.4M —
10-Yr Cumulative Savings ~$985,000 —
What Brooklyn Center Gets
BENEFIT DETAIL
58 Affordable Units Preserved LURA at ≤60% AMI (4d) + 15-yr LURA at 80% AMI (NOAH)
$856K Capital Improvements Self-funded — new roof, unit renos, exterior
Higher Property Valuation Appraisal: $7.2M restricted vs. $5.9M unrestricted (+$1.3M)
Proven Operator Same team: Granite City $9.3M, 100% occupied
Community Partnership Actively engaged on inspection process improvement
Zero City Cash No TIF, no abatement, no bonds — dev. agreement only
If the EDA Declines
Without 4d, DSCR drops to 1.25× (lender floor) with zero margin. Cash flow falls from $131K to $69K. Capital improvements
become harder to execute. Year 10 value is $1.9M–$2.4M lower. The appraisal shows the property is worth $1.3M less without
restrictions. Brooklyn Center loses 58 income-restricted affordable units at zero City cost.
The alternative is not a better deal — it is a weaker property, lower investment, and 58 units with no affordability
protections.
Page 23 of 48
THE BLVD APARTMENTS — CLASS 4d(1) APPLICATION Brooklyn Center EDA | March 23, 2026
Lakeshore Capital Partners | eric@lakeshorecpre.com | (763) 226-5523 Page 7 of 7
Section 6 | Recommended Motion & Summary
Recommended EDA Motion
PROPOSED MOTION
“Motion to authorize the Executive Director to negotiate and execute a development agreement with Lakeshore
Capital Partners (or its designee) for the property at 7015 Brooklyn Boulevard, constituting qualifying governmental
financial assistance under Minnesota Statute §273.128, enabling Class 4d(1) property tax classification, contingent
upon recording of a Land Use Restrictive Agreement restricting all 58 units to occupancy by households earning no
more than 60% of Area Median Income, for a term to be determined in the development agreement (minimum 10
years).”
IF APPROVED
✓ 58 units restricted ≤60% AMI
✓ $856K in self-funded capital improvements
✓ Appraised value: $7.2M (+$1.3M vs. unrestricted)
✓ DSCR 1.40× — stable, sustainable operations
✓ Year 10 value: $8.4M–$9.9M
✓ Proven operator, proven model, proven results
✓ $0 cost to the City
IF DECLINED
✗ No affordability restrictions on any unit
✗ Reduced capital investment capacity
✗ Appraised value: $5.9M ($1.3M lower)
✗ DSCR at 1.25× — lender floor, zero margin
✗ Year 10 value: $6.4M–$7.5M (lower tax base)
✗ No LURA, no protections
✗ Same $0 cost — nothing secured for City
The independent appraisal answers the question directly: The BLVD is worth $1.3 million more with income restrictions than
without. Granite City confirms the model works. Lakeshore has invested in Brooklyn Center, grown property values, and
delivered on every commitment. We ask for one thing: the statutory development agreement. No City cash. No risk. Just 58
families protected and a building that gets the investment it deserves.
We respectfully ask the EDA to approve this application.
CONTACT
Eric Wagner, Managing Partner | Lakeshore Capital Partners
eric@lakeshorecpre.com | (763) 226-5523
6802 63rd Ave N, Brooklyn Park, MN
Page 24 of 48
7015 Brooklyn Blvd - 4D Property Tax Comparison
Exempt Class Rate (Exempt)0.00%
35.5388%Pay 2026 Commercial Industrial Preferred Class Rate (C/I Pref.)
132.6750%Pay 2026 First $150,000 1.50%
135.794%Pay 2026 Over $150,000 2.00%
64.664%Pay 2026 Commercial Industrial Class Rate (C/I)2.00%
39.242%Pay 2026 Rental Housing Class Rate (Rental)1.25%
24.472%Pay 2026 Affordable Rental Housing Class Rate (Aff. Rental)
7.416%Pay 2026 First $100,000 0.25%
28.8570%Pay 2026 Over $100,000 0.25%
0.24481%Pay 2026 Non-Homestead Residential (Non-H Res. 1 Unit)
First $500,000 1.00%
Note: Located in SD #279 and WS #8 Over $500,000 1.25%
Homestead Residential Class Rate (Hmstd. Res.)
First $500,000 1.00%
Over $500,000 1.25%
Estimated Taxable
Market Value Market Value Total Taxable Property Tax Local Fiscal Disparities State
Project New Use Per Sq Ft/Unit Per Sq Ft/Unit Sq Ft/Units Market Value Class Tax Capacity Tax Capacity Tax Capacity
7015 Brooklyn Blvd 58 Apartment Units- 4d(1)94,690 94,690 58 5,492,000 Aff. Rental 13,730 0 0
7015 Brooklyn Blvd 58 Apartment Units - Market 94,690 94,690 58 5,492,000 Rental 68,650 0 0
Note: Market values are for pay 2026.
City County School Total Local Fiscal Disparities Mk Value State-wide
Portion Portion District Taxes Taxes Taxes Taxes
58 Apartment Units- 4d(1)$8,878 $5,388 $3,360 $1,018 $18,645 $0 $3,361 $0 $22,006
58 Apartment Units - Market $44,392 $26,940 $16,800 $5,091 $93,223 $0 $13,445 $0 $106,668
Note: Total taxes excludes solid waste management charges, special assessments, and any contamination tax.
City of Brooklyn Center, MN
PROPERTY INFORMATION (Property Tax Capacity)
PROJECTED TAX CALCULATIONS
New Use Misc TOTAL
Market Value Tax Rate (Used for total taxes)
TAX CLASSIFICATION & RATES
County Tax Rate:
School District Tax Rate:
Miscellaneous Tax Rate:
State-wide Tax Rate (C/I only. Used for total taxes)
Fiscal Disparities Contribution Ratio
Fiscal Disparities Metro-Wide Tax Rate
Local Tax Rate:
City Tax Rate:
Page 25 of 48
3/19/2026
1
The BLVD Apartments – Request for
Assistance
October 8, 2018
Review
Brooklyn Center EDA March 23, 2026
Jason Aarsvold, Ehlers
Presentation Purpose
•Brief overview of MN property tax system and the 4d (low-income rental
housing) tax classification rate
•BLVD Request for Financial Assistance
•Benefits
•Costs
•Discussion
2
1
2
Page 26 of 48
3/19/2026
2
MN Property Tax System
•Property valuations set through extensive assessment process
•The values for each property are converted to a “Tax Capacity” number using
different tax classification rates
•Rates differ depending on property type
•A property’s tax capacity is used to calculate its total property tax using local tax rates
•Other taxes may be included based on property type
•Market value taxes (from voter approved referenda)
•Fiscal disparities taxes (for commercial property)
•State general tax levy (for commercial property)
3
Tax Rate Examples – Pay 2023
4
Exem pt Class Rate (Exem pt) 0.00%
Com m ercial Industrial Preferred Class Rate (C/I Pref.)
First $150,000 1.50%
O ver $150,000 2.00%
Com m ercial Industrial Class Rate (C/I) 2.00%
Rental Housing Class Rate (Rental) 1.25%
Affordable Rental Housing Class Rate (Aff. Rental)
First $100,000 0.25%
O ver $100,000 0.25%
Non-Hom estead Residential (Non-H Res. 1 Unit)
First $500,000 1.00%
O ver $500,000 1.25%
Hom estead Residential Class Rate (Hm std. Res.)
First $500,000 1.00%
O ver $500,000 1.25%
3
4
Page 27 of 48
3/19/2026
3
4d Tax Classification Rate
•The 4d classification rate applies only to affordable housing and is set up to
be lower than market rate housing to promote affordability
•Prior 4d housing rate is 0.75% on the 1st $100,000 of per-unit value and
0.25% on any value above $100,000 per unit
•Effective for taxes payable in 2025, legislation lowered the 4d property tax
classification rate to a flat 0.25% on ALL market value
•Also created a new 4d(1) category for rental housing and 4d(2) for land trusts
•Generated significant interest from non-4d properties wanting to qualify
5
4d Tax Classification Rate - Qualification
At least 20% of units rent and income restricted below 60% AMI, and one of these:
1. Units are subject to a housing assistance payments contract under Section 8
2. Low Income Housing Tax Credit projects
3. Financed by the Rural Housing Service; or
4. The units are subject to rent and income restrictions under the terms of financial assistance provided to the rental housing property by the federal government or the state of Minnesota, or a local unit of government, as evidenced by a document recorded against the property.
•1, 2, and 3 are outside City/EDA control - qualification 4 is entirely at City/EDA discretion
6
5
6
Page 28 of 48
3/19/2026
4
BLVD Apartments Request
•Requesting that the EDA enter into an agreement for financial assistance allowing qualification for 4d(1) tax class
•Requires nominal up-front assistance
•Units would be rent and income restricted to households at or below 60% AMI (up to 30 years)
•Owner would make improvements to the property, including:
•Unit renovations (appliances, flooring, electrical panels and fixtures)
•Roof Replacement
•Exterior painting and parking lor resurfacing
•Total estimated cost: $856,000
7
BLVD Apartments Request
8
Before After
7
8
Page 29 of 48
3/19/2026
5
Benefits
•Rent and income restrictions make sure the residents incomes and rental
rates are below the 60% AMI threshold – preserves NOAH
•May make it easier for the property to afford capital improvements
9
60% AMI Max Rent (2025)Current Market RentUnit Type
$1,490$1,1001 Bedroom
$1,788$1,4002 Bedroom
Costs
•Up-font assistance (nominal amount)
•Loss of tax base spread to other taxpayers
10
BLVD Apartments – Pay 2026
City PortionTotal Property TaxTax Classification
$44,392$106,668Market Rate Rental: 1.25%
$8,878$22,0064d(1): 0.25%
9
10
Page 30 of 48
3/19/2026
6
Items for Discussion
•Is the EDA interested in moving forward with the BLVD Apartments request
for assistance?
•If so, staff will return with a formal agreement for consideration
•If not, then the project will stay at the market rate rental classification
•Is the EDA interested in hearing any additional requests for 4d(1)
assistance in the future?
•If not, staff can direct property owners accordingly to save time and cost
11
11
Page 31 of 48
Council Regular Meeting
DATE: 3/23/2026
TO: Economic Development Authority
FROM: Ian Alexander, Economic Development Manager, Amy Loegering,
Economic Development Coordinator
THROUGH: Jason Aarsvold, Ehlers
BY: Kat Ellgren, Deputy City Clerk
SUBJECT: Concept Review: Flame
Requested Council Action:
-Staff requests that the EDA review a development concept, provide comments, ask
questions, and indicate whether the City would be open to the project.
Background:
Background:
The concept review process is an opportunity for the Economic Development Authority
to review a development concept prior to a formal proposal from an applicant, and
provide comments, ask questions, and indicate whether the City would be open to the
project. The concept review process is helpful for projects that would involve EDA-
owned land or public subsidy, as it provides insight to City staff and the applicant
regarding the Economic Development Authority's level of interest, and any specific
concerns related to a project. A concept review is considered advisory and is non-
binding to the City and the applicant.
No formal action can be taken as a discussion item, and the Economic Development
Authority is not being asked to vote on the proposal; however, as the property of interest
is owned by the City’s Economic Development Authority (“EDA”), City staff and the
applicant seek feedback and direction to inform any next steps. If the applicant chooses
to submit a formal application to the City to proceed, it would be subject to the full City
review process, as with any other development application.
Developer Information:
The developer is a local, BIPOC-owned firm established in 2019 by Tommy McNeal.
Mr. McNeal has over twenty years’ experience in the restaurant, hospitality,
entrepreneur, and non-profit fields. The concept under review would be the Developer’s
first real estate development (construction) project.
Mr. McNeal has founded and scaled multiple ventures across hospitality, professional
services, and media. He is the creator of Flame Mobile Kitchen
(https://flamemobilekitchen.com/), an award-winning culinary brand recognized across
television, print, and radio media, demonstrating his capacity to manage risk, respond to
market demand, and build durable brands. His entrepreneurial track record provides
credibility in evaluating feasibility, operating assumptions, and long-term project
sustainability.
Page 32 of 48
Project Concept:
McNeal Management, Inc. (the “developer” or “applicant”) has submitted a proposal that
would result in the purchase of the Subject Property to construct The McNeal
Management Business and Event Center, a 30,000-square-foot mixed-use facility
designed to support entrepreneurship, hospitality, and workforce development in the
Twin Cities region. The project includes a 15,000-square-foot indoor event venue with a
seasonal outdoor patio, six (6) boutique hotel suites, a shared commercial kitchen, a
workplace and business incubator, café, and catering operations.
SPARK Ignites offers industry-certified training, paid work experience, and pathways to
business ownership, supporting displaced workers, low-wage earners, returning citizens
and transitioning professionals. Unlike standard placement programs, SPARK Ignites
focuses on long-term economic mobility and stability through career transformation. By
integrating these complementary uses into one facility, the project promotes year-round
activity, shared resources, and economic opportunity while advancing McNeal
Management Inc.’s long-term mission of small business growth.
Brooklyn Center would benefit from a comprehensive mixed-use commercial
development that would support local small businesses and entrepreneurs in a visually
appealing commercial building along one of the City’s primary corridors.
57th and Logan Site (1950 57th Avenue North):
The identified property of interest is approximately 1.14 acres of an approximately 4.72-
acre parcel that was acquired by the City’s Economic Development Authority in a
strategic acquisition of the larger overall parcel bordered by Logan Avenue to the east,
57th Avenue to the south, and Trunk Highway (TH) 100 to the west. The Extra Space
Storage site at 5721 Logan Avenue North lies directly north of the property.
The Subject Property was acquired via eminent domain in 2005 and the City enrolled
the property in the Minnesota Pollution Control Agency’s (“MPCA”) Voluntary
Investigation and Clean-up Program (“VIC”) to address the investigation of
contaminants found on the north end of the parcel associated with a former dry-cleaning
facility located to the north of the Subject Property. Available records indicate that a
dry-cleaning facility operated on the site from approximately 1966 until sometime in the
late 1980s or early 1990s. The specific contaminants of concern are
Tetrachloroethylene (“PCE”) and Trichloroethylene (“TCE”), both of which are Volatile
Organic Compounds (“VOC’s”). Environmental investigations conducted by the City’s
environmental consultant in 2005 indicated the presence of PCE and TCE
contamination in ground water and soil vapor east and southeast of the former dry-
cleaning facility. Additional records from the MPCA's What's in My Neighborhood?
website also identify records for the former Acme Typewriter and Lake City Auto Repair
on the property.
The Subject Property is zoned Neighborhood Mixed-Use (MX-N1) and allows for event
centers (conditional use) and professional development facilities.
Page 33 of 48
Development Agreement:
There have been no negotiations with the developer regarding potential terms as part of
a development agreement, and Economic Development staff anticipate that any future
development agreement will require an earnest money payment to the EDA of not less
than $10,000. Any agreement would include a reverter clause allowing the EDA to re-
enter and re-possess the property in the event the developer does not substantially
complete any identified minimum improvements within the term of the development
agreement.
Next Steps:
If the Economic Development Authority wishes to proceed, Economic Development staff
and the developer will continue discussions regarding the terms of a development
agreement and will present the development agreement for consideration at a future
meeting. The developer would conduct its due diligence on the Subject Property and
prepare a Planning Commission application with architectural and civil plan sets. This
application would go through full review with City staff, the Planning Commission, and
City Council.
Should a recommendation for approval of the project be granted, City staff would
negotiate a purchase agreement for the Subject Property, which would go to the City
EDA for consideration, and as part of a public hearing.
The developer is not seeking public subsidy as part of its proposal at this time.
Budget Issues:
The Subject Property was acquired by the City of Brooklyn Center Economic
Development Authority as part of the eminent domain (taking) of a larger, approximately
8.17 acre parcel and total environmental monitoring costs associated with the larger
parcel are $457,590.00, of which $155,227 were TIF 3 expenses.
The City’s Tax Increment Financing Plan identifies the following objectives in
establishing the aforementioned District:
1. To enhance the tax base of the City;
2. To provide maximum opportunity, consistent with the needs of the City for
development by private enterprise;
3. To better utilize vacant or underdeveloped land;
4. To attract new business;
5. To acquire blighted or deteriorated residential property for rehabilitation or
clearance and redevelopment; and
6. To develop housing opportunities for market segments underserved by the City,
including housing for the disabled and elderly.
Inclusive Community Engagement:
Page 34 of 48
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
1. PowerPoint Presentation — McNeal Event and Business Center (Flame/Spark)
Page 35 of 48
3/18/2026
1
McNeal Event and Business Center
McNeal Management, Inc.
Concept Review
Ian Alexander, Economic Development Manager
•Company founded in 2019, locally
owned, and BIPOC-led
•Owner and Developer Tommy McNeal
brings 20+ years’ experience in
corporate, entrepreneurial and non-
profit experience.
•Project features 30,000 sq. ft. mixed-
use commercial facility.
2
McNeal Management, Inc.
Background
1
2
Page 36 of 48
3/18/2026
2
3
•Proposed site is the approximate west 1/4 of highlighted parcel
•Proposed site is zoned Neighborhood Mixed Use (MX-N1)
•Proposed site allows for bike/trail access along north edge of lot
•Proposed site is part of southern-most parcel of larger 8.17 triangle shaped lot
57th and N. Logan Ave (No Address Assigned)
Parcel History
4
•Larger triangle shaped parcel (8.17 acres) acquired via eminent domain in 2005
•City enrolled site in MPCA’s VIC Program to address contaminants associated with former dry cleaner on north end of lot
•Total costs associated with 8.17 parcel total $457,590.00, of which $155,227 were TIF 3 expenses
57th and N. Logan Ave (No Address Assigned)
Parcel History, continued
3
4
Page 37 of 48
3/18/2026
3
5
•30,000 sq. ft. mixed-use facility
•Supports entrepreneurship and
professional development
•15,000 sq. ft. indoor venue
•Seasonal patio
•Café and catering
•Six boutique hotel suites
McNeal Event and Business Center
Preliminary Concept
6
McNeal Event and Business Center
Preliminary Concept
5
6
Page 38 of 48
3/18/2026
4
7
McNeal Event and Business Center
Preliminary Concept, Second Floor
8
•Is Council in favor of this
proposed use of EDA owned
property?
•If so, EDA will negotiate a
development agreement
McNeal Event and Business Center
Preliminary Concept
7
8
Page 39 of 48
Council Regular Meeting
DATE: 3/23/2026
TO: Economic Development Authority
FROM: Ian Alexander, Economic Development Manager, Amy Loegering,
Economic Development Coordinator
THROUGH: Jason Aarsvold, Ehlers
BY: Amy Loegering, Economic Development Coordinator
SUBJECT: EDA Work Plan
Requested Council Action:
Presentation only — no action required. This is an opportunity for the EDA to ask
questions and provide feedback regarding the draft City of Brooklyn Center EDA Work
Plan.
Background:
The Economic Development Authority is executing a coordinated, multi-year strategy to
rebrand Brooklyn Center as a vibrant, mixed-use destination by 2030.
This work plan is not a magic bullet approach based upon a single large-item pursuit —
it is a long-horizon civic framework that uses catalytic development to drive tax-base
growth, reverse population decline, lower the homeowner tax burden, and deliver
distinctive amenities, environmental restoration, and inclusive growth.
Brooklyn Center 2030 Vision: Mixed-Use Stadium Village & Stormwater Strategy
Brooklyn Center’s massive challenges require immediate action!
“The Brooklyn Center 2030” is a multi-year civic and economic development framework
that uses catalytic redevelopment of the Greater Opportunity Site to drive tax-base
growth, reverse population decline, lower homeowner tax burdens, and create a vibrant
mixed-use destination with distinctive amenities, environmental restoration, and
inclusive growth by 2030.
This is a civically launched campaign—initiated and shaped by community leaders,
residents, business owners, and local stakeholders who recognized the urgent need for
bold, collective action to secure Brooklyn Center's future. It is not a top-down mandate,
but a shared civic vision built through public engagement, partnerships, and grassroots
momentum, ensuring the plan reflects the community's values and priorities.
Rebranding & demonstrative steps to demonstrate actual revitalization is critical to
reverse current trends. Shifting the narrative to Minnesota’s most exciting inclusive-
growth story will attract private investment, new residents and businesses, higher land
values, sustainable tax revenue, and community pride – ultimately easing homeowner
tax burdens and fostering long-term vitality.
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To advance these goals, the city has engaged Tina Maharath of Lobby Edge (a firm
with expertise in advocacy, fundraising, PR, and equity-focused branding) and
Alexander Koenig has offered to assemble a Host Committee of business leaders and
influencers to build partnerships and amplify the 2030 narrative.
The vision centers on the Greater Opportunity Site and two interconnected pillars:
1) Mixed-Use Stadium Village
Re-positions the site as a premier regional destination: a “Stadium Village” anchored by
family-friendly youth sports venues, a year-round Urban Blueway corridor (summer
kayaking/boating/events; winter skating/programming), and high-density mixed-use
development (residential, commercial, retail, community spaces).Expands beyond
current EDA owned parcels to engage all property owners and deliver at least five
phased redevelopments, each with detailed pro formas, funding stacks, and PPP
options for shovel-ready progress.
Goal Outcomes by 2030
• Path toward 12% tax-base growth via new commercial/residential development
• Population reversal through thousands of new residents, businesses, and
visitors
• Permanent destination drawing investment, elevating land values, and cementing
the inclusive rebrand
•
This is the catalytic driver for the full work plan.
2) Stormwater Strategy
The recently awarded $2 million Metropolitan Council LCDA-TOD grant provides funds
for a conventional 6-acre Stormwater Park and Parkway for initial redevelopment.
However, this plan covers only part of the Opportunity Site, excluding the Target Site,
Brown College site, half the ACER site, JaniKing Site, and School Board Site.
Moreover, the prior massive ponding approach sacrificed significant developable land
and economic potential.
EDA staff are seeking LCCMR funding for advanced design and modeling to create a
more innovative, integrated system that maximizes developable acreage, enhances the
Urban Blueway as an amenity (trails, recreation, green infrastructure), improves flood
resiliency, and supports higher-density growth while delivering environmental benefits.
This model is scalable for each project and reduces individual burden on developers in
a phased development model. These refined strategies will be presented for discussion
and direction at the Monday, April 27, 2026 EDA meeting.
Next Steps
• Refine & finalize the Master Plan (integrating both pillars) by Q3 2026
• Collaborate with architects, planners, developers, regulators, and consultants on
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replatting, PIDs, parcel optimization, and stormwater modeling
• Embed Blueway/stormwater amenities and 2030 rebranding into all outreach and
Host Committee efforts
• Present full vision, stormwater refinements, rebranding progress, and priorities at
the next EDA meeting on April 27, 2026
2. Opportunity Site Developer Recruitment & Partnership Phase
EDA staff are shifting from traditional RFP/single-developer models—which often yield
generic or mismatched proposals—to a proactive “Redevelopment Originator and
Partnership Facilitator” approach. EDA staff will take the lead: actively assembling
contiguous parcels through targeted owner negotiations, structuring flexible public-
private partnerships (PPPs), pre-entitling sites with infrastructure, zoning, and incentives
in place, and delivering shovel-ready opportunities that reduce developer risk while
ensuring strong alignment with the community's inclusive, civic-driven vision.
This hands-on model is essential for a transformative project like Brooklyn Center 2030,
where success depends on partners who can deliver high-quality, vision-specific
outcomes rather than off-the-shelf concepts. By originating deals ourselves, we attract
national and regional developers with demonstrated expertise in mixed-use districts
anchored by youth/family sports, waterfront placemaking, and year-round community
activation—ensuring density, amenities, and programming that reflect resident input and
contribute to reversing population decline, growing the tax base, and rebranding the
city.
Successful models that inspire this approach include:
• The Battery Atlanta
Sports-anchored mixed-use with retail, residential, entertainment, and public
spaces creating a vibrant district.
• Titletown in Green Bay
Packers-driven redevelopment blending sports, hospitality, residential, and
recreation.
• Berkley Riverfront in Kansas City
Riverfront mixed-use with apartments, retail, and amenities tied to civic anchors.
• Regional precedents like Blaine's entertainment/housing expansions near the
National Sports Center.
These examples show how proactive facilitation can turn underutilized sites into
economic engines while prioritizing inclusivity and long-term community benefits.
Next Steps:
• By EDA Meeting in August 2026: Secure at least two anchor development
partners (via LOIs, exclusivity agreements, or preliminary terms)
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3. Government Relations / Special Legislation – SF3896 (Brooklyn Center
Economic Revitalization Pilot Act) & Economic Development One-on-One
Meetings
Introduction to Special Legislation – SF3896 (Brooklyn Center Economic
Revitalization Pilot Act)
Authored by Sen. Susan Pha (DFL-Brooklyn Park) and heard in the Senate Tax
Committee on March 11, 2026 (laid over for possible inclusion), establishes a targeted
pilot program offering two refundable state tax credits in Brooklyn Center’s six
Opportunity Zone census tracts.
These include:
• 20% credit on qualified construction expenditures for converting underutilized,
vacant, or substandard commercial properties (class 3a) into residential, multi-
family, or low-income housing uses, and
• 30% credit on sustainable/green investments (e.g., LEED certification,
solar/geothermal, energy-efficient retrofits, and related infrastructure). Credits are
performance-based (issued post-conversion via Commerce certificate), capped
per taxpayer/year, fully refundable, and incur no new general-fund costs (per
Department of Revenue analysis).
Next Steps
To advance this legislative priority and ensure strong alignment with Brooklyn Center
2030 goals, one-on-one meetings are strongly encouraged among EDA staff and City
Council / EDA Members to:
• Discuss broader economic development strategies, tax-base growth
opportunities, inclusive housing approaches, population reversal tactics, and
rebranding initiatives
• Facilitate meaningful dialogue on how these tools and incentives align with the
city’s long-term vision for transforming underutilized land into a vibrant, inclusive
mixed-use destination
4. Grants & Funding Strategy
The Grants & Funding Strategy for Brooklyn Center 2030 focuses on maximizing
existing resources while strategically layering new funding to support the catalytic
redevelopment of the Greater Opportunity Site. By repurposing over $6.8 million in
previously awarded grants, we align these funds with current priorities—such as the
Urban Blueway corridor, stormwater management, parkway improvements, site
acquisition, affordable housing, job creation, and community activation—without
additional taxpayer burden. This approach ensures efficient use of committed resources
and positions the city to compete for larger, transformative funding in future cycles.
Secured and Repurposed Grants (Total: $6.8M+)
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These grants, originally awarded through competitive regional and county programs, are
being actively realigned to support 2030 outcomes:
• 2022 Metropolitan Council Livable Communities Demonstration Account (LCDA)
– Entrepreneurial Market Plaza ($1.5M, reassigned from Alatus to ACER)
• 2022 Metropolitan Council LCDA – Site Acquisition, Affordable Housing & Job
Creation ($2M)
• 2023 Transportation Economic Development Incentive (TEDI) – Parkway
improvements ($500K)
• 2023 Metropolitan Council Pre-Development Grant – Resurrection Faith site
($300K)
• 2024 Hennepin County Transit Oriented Communities (TOC) – Parkway &
Stormwater ($500K)
• 2024 Metropolitan Council LCDA-TOD – Stormwater Park & Parkway
Construction ($2M, Grant No. SG-22087)
Next Steps
• Complete all repurposing agreements if necessary for current grants
• Layer additional Clean Water Fund and federal resiliency grants in 2027–2028 to
fund Blueway and stormwater elements
• Position the Opportunity Site for future federal and state catalytic funding rounds
5. Economic Development Structure
The Economic Development & Housing Structure section of the Brooklyn Center 2030
strategy focuses on creating specialized entities to enhance capacity, streamline
processes, and scale housing and redevelopment efforts. By establishing dedicated
governance bodies, the city can more effectively deploy resources, access specialized
financing, and align initiatives with community priorities for inclusive growth, workforce
housing, and site redevelopment—without imposing new subsidy mandates.
Housing & Redevelopment Authority (HRA)
Enhance and activate our Housing & Redevelopment Authority (HRA) to provide
specialized governance separate from general city operations, enabling streamlined
processes, focused decision-making, and direct access to housing finance tools under
Minnesota Statutes Chapter 469. HRAs in Minnesota cities (e.g., Saint Paul,
Bloomington, Fridley) commonly handle:
• Acquisition, ownership, improvement, sale, or lease of real/property for
redevelopment
• Issuance of bonds or loans for housing/commercial projects
• Administration of rehabilitation programs, grants, low-interest loans, and
relocation assistance
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• Management of federal programs like Housing Choice Vouchers or public
housing
• Targeted blight removal, affordable housing creation/preservation, and
neighborhood revitalization
An HRA would serve as the primary implementation body for Local Affordable Housing
Aid (LAHA)—a Metro-area sales tax-funded program providing annual allocations to
cities—and the Brooklyn Center Local Housing Trust Fund. It ensures coordinated
policy alignment, project selection, and delivery of market-rate, workforce, and
affordable housing initiatives, while leveraging state/federal resources for rehabilitation,
accessibility, and code compliance without straining general funds.
Economic Development Corporation (EDC)
A nonprofit Brooklyn Center Development Corporation would increase agility beyond
traditional city structures by unlocking private philanthropy, alternative financing, and
partnerships. Nonprofit economic development entities in Minnesota may:
• Accelerate business attraction, retention, and redevelopment through flexible
deal-making
• Secure private grants, donations, and investments not accessible to public
entities
• Support job creation, small business growth, and community initiatives
• Act as a bridge for public-private collaborations on catalytic projects
This entity would complement the HRA by focusing on broader economic vitality—
business expansion, entrepreneurial support, and redevelopment facilitation—while
advancing the 2030 vision through agile, community-responsive actions.
Next Steps
• By August 2026: Present full feasibility analysis to Council/EDA, including
governance models, statutory powers (e.g., bond issuance, property acquisition),
funding sources (e.g., LAHA, grants), transition plans, and pros/cons compared
to current structures.
• Ongoing: Realign LAHA allocations and Local Housing Trust Fund resources to
prioritize market-rate and workforce housing development, rehabilitation, and
preservation—without new subsidy mandates or taxpayer burdens.
• Fall 2026: Schedule dedicated Council work session to discuss and recommend
an expanded role for the Housing Commission in advising on HRA/EDC
priorities, project recommendations, and policy alignment.
6. Scatter Site Housing Plan
We will deliver market-rate and workforce housing on smaller city-owned parcels using
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modular and cost-efficient construction methods. This approach keeps projects
financially viable, avoids subsidy mandates, and directly contributes to 2030 housing
targets.
Next Steps
• Complete parcel inventory and modular-construction feasibility study by Q3 2026
• Issue RFPs for 2–3 Scatter Site projects using modular methods
• Align delivery schedule and unit mix with overall Brooklyn Center 2030 housing
goals
7. Business Outreach & Retention Strategy
We are working with partners to strengthen the Chamber of Commerce and assist in
creating an active, cohesive business voice in the 2030 vision. The objective is a unified
narrative, targeted incentives, and clear pathways for existing businesses to benefit
from (and help shape) the Blueway and Stadium Village activation.
Next Steps
• Launch quarterly Business Roundtable series beginning April 2026
• Develop targeted retention/expansion incentives tied to the 2030 branding
• Co-create a “Brooklyn Center 2030 Business Advantage” narrative with Chamber
leadership
Budget Issues:
None to consider at this time.
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
None
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Council Regular Meeting
DATE: 3/23/2026
TO: Economic Development Authority
FROM: Ian Alexander, Economic Development Manager, Amy Loegering,
Economic Development Coordinator
THROUGH: Jason Aarsvold, Ehlers
BY: Amy Loegering, Economic Development Coordinator
SUBJECT: EDA Update
Requested Council Action:
Presentation - no action required.
Background:
Housing Development Updates:
EDA Staff awaits the EDA’s decision the future status of Alatus.
EDA Staff will provide additional updates in the EDA Workplan. Below is a summary of
what is occurring in the City.
Strategic EDA Structure Exploration
Building on Local Housing Trust Fund
Following creation of the Brooklyn Center Local Housing Trust Fund, staff are exploring
ways to improve efficiency and prepare for growth. Of consideration, the City should
consider opportunities to build out a more robust Housing and Redevelopment Authority
(HRA) that could provide specialized governance, streamlined processes, and better
access to housing tools, while strengthening collaboration and positioning the city to
scale housing strategies.
Economic Development Corporation
Staff are evaluating a nonprofit Economic Development Corporation, tentatively the
Brooklyn Center Development Corporation. This entity could increase agility, expand
access to private funding, and accelerate redevelopment efforts. Staff will present
feasibility and implementation options for EDA consideration in the future.
Upcoming Projects
EDA staff has helped negotiate a working agreement between two groups interested in
constructing two mid-rise (8-12 stories), market rate, multifamily housing buildings at the
former Brown College site (5951 Earle Brown Drive) – adjacent to the former Target
Building.
Staff continues to vet certain requests to determine which developer(s) have the
capacity for these sites and will bring proposals forward as the process proceeds.
Business and Development Updates:
EDA staff have spoken with Paster Lewis of Resurrecting Faith World Ministries about
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its proposed childcare/conference center space and we are negotiating a new location
for a project site.
Jambo Africa and its development team are reviewing the development agreement that
was provided to us from our City Attorney. We hope to have this agreement executed in
the near future.
Staff continues engagement regarding the potential redevelopment of the EDA-owned
site located at 6245 Brooklyn Boulevard.
Grants, Water & Funding Sources
EDA staff is actively collaborating with Hennepin County, the Mississippi Watershed
Management Organization (MWMO), and potentially the Shingle Creek Watershed
Management Commission (SCWMC) to reconfigure the ponding system for the
Opportunity Site.
Staff is also working collaboratively with the funders to put together a strategy to utilize
currently awarded grants to move forward with a redevelopment project and
infrastructure phasing. Staff anticipate presenting this plan to the EDA for consideration
at the April 27th meeting.
Budget Issues:
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
None
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