Bloomington Port Authority Backs Grant Application for Housing Development at South Town
- Meeting Overview:
The Bloomington Port Authority Commission convened to discuss topics, including the approval of a grant application for a new housing development and various updates on city initiatives. The commission unanimously agreed to support an application for a Metropolitan Council Transit-Oriented Development grant aimed at redeveloping part of the South Town area. This decision marks an important step towards potentially adding 130 housing units to the site of a former dealership at the corner of Knox and American. The grant, if awarded, would allow the Port Authority to enter into a grant agreement, facilitating the broader development proposal expected to be presented in the future.
The meeting also covered a discussion on the prevailing wage ordinance, which the City Council passed on June 17, 2024. This ordinance aims to ensure fair wages for workers on city-funded projects. Community Development and legal staff presented five recommendations—three administrative and two policy-related—to ease its implementation. Administrative adjustments proposed include exempting smaller housing projects with fewer than eight units, aligning with the federal Davis Bacon Law, and clarifying exemptions for pass-through funds or conduit bonds. Policy discussions focused on unique situations that require subjective assessment, such as the Jewelry Site project, where prevailing wage requirements could add significant costs. The commission acknowledged the need for clearer parameters to identify such situations and balance worker protections with development incentives.
The internship program update was another focal point of the meeting. Now in its third year, the program places young individuals aged 16 to 24 with local employers and integrates leadership development sessions. Watson Ashton, the program facilitator, highlighted goals such as diversifying the city’s workforce and engaging young people in the community. This year, 29 interns, including high school and college students, gained experience in various city departments and with external partners. Interns shared personal accounts, emphasizing the skills they developed and their contributions to the community. For instance, Helen Jewel, a Kansas State University student, focused on supporting local artists and businesses, while Omar Al-Mustapha, a high school student, worked on projects related to community service resources and youth engagement.
The meeting also addressed the refinancing of the Carbon 31 construction loan. The developers are negotiating with Fannie Mae, which does not permit tax increment financing (TIF) income as loan collateral. Discussions with developers and legal counsel led to a proposed agreement structure that would allow refinancing while retaining existing agreements. The commission sought to ensure that the Port Authority’s interests remain secure, with assurances that the refinancing would not alter current terms. Julie Harrington, legal counsel, confirmed that the proposed changes would not compromise the Port Authority’s position, and the commission agreed to review the full legal documentation at a later date.
Updates on the Bloomington program were shared, highlighting a $100,000 grant from the Department of Employment and Economic Development for youth and work initiatives. This funding will be discussed in the upcoming budget process. Additionally, the commission was invited to an event celebrating the launch of the citywide Creative Placemaking Plan, which will include an economic development section for the first time. This plan aims to engage the Planning Commission, Port Authority Commission, and HRA in a collaborative effort to address comprehensive planning.
The City Manager search process was another key topic, with four finalists interviewed and two candidates advanced for further consideration. Recognizing the high quality of candidates, the commission expressed confidence in the search firm’s thorough process, with hopes for a decision and offer by the end of the evening.
Tim Busse
Port Authority Officials:
Bob Erickson, Tim Keller, Rob Lunz, Shawn Nelson, Steve Peterson, Holly Masek (Port Authority Administrator)
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Meeting Type:
Port Authority
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Committee:
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Meeting Date:
07/15/2025
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Recording Published:
07/15/2025
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Duration:
38 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Hennepin County
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Towns:
Bloomington
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