A discussion took place regarding modifications to the TIF plan initially approved in August 2020. The original plan aimed to develop two phases of housing, including a market-rate development and an affordable apartment building. However, the latter did not materialize due to pandemic-related setbacks. The developer now proposes converting five floors of the River View Office Tower into 75 units of senior affordable apartments, with construction slated to begin in 2027. The commission was informed that expanding the TIF district’s boundaries is vital to facilitate this development, with a deadline looming on March 16 for such expansion. A key aspect of the plan is that it does not commit the authority to provide financial assistance at this stage, as terms are still under negotiation.

During the meeting, it was emphasized that the proposed project must meet specific housing requirements, particularly ensuring a minimum percentage of units are affordable to households earning 60% of the area median income. The project is set to exceed these requirements. However, there are restrictions on financial assistance, as aid cannot be provided for more than 20% of the building’s square footage dedicated to commercial or non-residential use. This raised questions about whether changes in the building’s legal or ownership structure might be necessary to comply with these regulations.

Concerns were also expressed about the placement of affordable housing units within the 15-story building, given its prime location and the current state of the office market. A motion regarding the TIF district’s expansion was introduced, with staff prepared to address questions from the commission.

In parallel, the commission reviewed and approved a Small Business Assistance Grant Program, a move aimed at aiding local businesses, especially those owned by immigrants, affected by recent immigration enforcement actions. The program will allocate up to $400,000 from the general fund to provide one-time grants of up to $10,000 for rent or mortgage payments. This initiative seeks to alleviate financial burdens, allowing businesses to redirect funds to other operational needs. The grant targets for-profit businesses with fewer than 50 employees, particularly those with physical locations reliant on foot traffic.

The grant program, managed in partnership with Next Stage, will open in February and accept applications for two months. Commissioners expressed appreciation for the initiative, acknowledging the significant challenges faced by local businesses. They highlighted the economic impact of immigrant entrepreneurs in the Twin Cities area, noting that they represent one in seven business owners.

Further discussion addressed the program’s eligibility criteria, focusing on ensuring that businesses have experienced at least a 30% drop in gross revenue to qualify for assistance. Concerns were raised about the potential for “double dipping,” where both landlords and businesses could simultaneously receive aid for the same issue. Mechanisms will be included in the grant agreements to prevent this scenario. Additionally, the program aims to use existing documentation, such as sales tax filings, to verify eligibility, minimizing additional burdens on business owners.

The meeting also touched on tourism projects in the South Loop area and the Opportunity Housing Ordinance, which supports inclusionary zoning policies. The commission plans to delve deeper into the Commercial Nodes Redevelopment Strategy and toolkit, involving cross-departmental collaboration. This strategy will focus on enhancing business operations and streamlining grant processes, emphasizing excellent customer service and responsiveness to community needs.

The commission approved a motion to adopt the 2026 Port Authority Work Plan, which aligns with the mission to foster community and economic development. The plan outlines priorities, including real estate development, business assistance, workforce development, and creative placemaking. Upcoming events include a CEO Roundtable on February 26 and a March 10 meeting to discuss the comprehensive plan and updates on the Opportunity Housing Ordinance.