The meeting’s primary focus was the consideration and approval of resolutions to secure LCDA funding for two housing projects in Bloomington. The first project, Blooming Meadows South, involves rehabilitating an existing structure, with a plan that includes roof replacements, upgrading plumbing and boiler systems, and modernizing elevator doors. The estimated cost for this rehabilitation is approximately $90 million, with the developers requesting $2.5 million in LCDA funding. The rehabilitation work is scheduled to commence in 2026 and extend through 2027.

The second project, known as Windmill Apartments, is a new construction initiative that will provide 213 units of entirely affordable housing. Situated near 90 and Lyndale, this project emphasizes sustainability, being certified as Energy Star, and aims to include amenities like playgrounds, a dog run, a fitness center, and a club room. With a funding request of $2 million, construction for Windmill Apartments is expected to start in 2026. These projects are strategically located within a half-mile radius of high-frequency transit options, aligning with LCDA’s focus on transit-oriented development.

Inquiries from board members highlighted the importance of distinguishing between traditional affordable housing and workforce development housing, specifically regarding income targets. Additionally, discussions touched upon the feasibility of these projects proceeding without the grant funding.

Further deliberations at the meeting addressed a previous loan deferral for a different project. Concerns were raised about prioritizing the repayment of this loan, with assurances from developers that repayment options are being structured in collaboration with the city. It was confirmed that Windmill Apartments is a new construction project, eliminating any confusion about existing structures. The city’s role, as clarified by a board member, is to support these applications without any direct financial commitment, a sentiment echoed by the chair.

In addition to housing projects, the board discussed proposed changes to the prevailing wage ordinance. These changes, previously presented at a City Council work session, include three administrative amendments intended to simplify the ordinance’s language and administration. One amendment proposes aligning exemptions for housing projects with federal Davis-Bacon exemptions. Another clarifies that pass-through and conduit bond funding would be exempt from the ordinance.

Two potential policy changes were also examined. The other proposes allowing the City Council to waive prevailing wage requirements in specific cases to support development at designated sites. Concerns about potential wage theft in exempt projects prompted discussions on safeguards, with suggestions such as requiring affidavits from contractors and intermittent on-site audits to ensure compliance.

The board also received updates on the Heights Project, which faces budgetary challenges. Staff anticipated a request for an additional $350,000 in funding at the upcoming August 12 meeting. The project’s timeline, particularly the goal of completion before winter, was discussed along with the need to prepare for possible disruptions caused by construction activities. A board member referenced past issues with street parking communication, emphasizing the importance of effective communication.

Lastly, a positive update was shared about the Bring It Home program, a state-funded voucher initiative. Minnesota Housing has recommended $2.6 million in funding over two years to cover startup and administrative costs. While the final decision is pending, staff expressed optimism about the program’s potential impact, noting the lengthy process ahead for contracting and implementation.