I'm posting this response on behalf of MCDA Executive Steve Cramer. This is an extremely long post, but an important one as it relates to not just this property but the MCDA's partnerships with nonprofits and neighborhoods. In the past couple of days, there have been posts related to an MCDA-owned property at 3424 Columbus Ave. S. The posts reflected some inaccuracies, and hopefully will clear up some misperceptions. First, let me say that the MCDA values our partnerships with nonprofits and neighborhoods. In MCDA's recently approved Strategic Plan -- Building a City that Works -- we have identified a specific goal and objectives to strengthen our partnerships with nonprofits and neighborhood groups and residents. (Here is the link to MCDA's Strategic Plan Building A City That Works -- http://www.mcda.org/Content/Org/strategic_plan.htm ) While we sometimes disagree, it is important to keep the lines of communication open so that we can understand and work through our differences, as our common goal is strengthening our neighborhoods. To provide a bit of background, the MCDA Board of Commissioners/City Council has recently adopted a Lot Reduction Policy, which provides a $27,500 maximum subsidy for new-home construction or a house move. The MCDA Board of Commissioners approved this policy, after extensive neighborhood review, and subsequent changes resulting from that review. The Nonprofit Consortium -- Exodus Corporation, Project for Pride in Living (PPL), Powderhorn Residents Group (PRG), Northside Neighborhood Housing Services, Southside Neighborhood Housing Services, and Habitat for Humanity-- also provided input to the policy and their recommendations were incorporated into the policy. As a result of this extensive input, the Lot Reduction Policy will aid the MCDA in reducing the number of vacant lots throughout Minneapolis, and more importantly providing new homes for families. As mentioned above, MCDA owns the property at 3424 Columbus Ave. S. There is the misperception from the neighborhood association and block club that the MCDA had accepted an offer from PRG for this property. This is incorrect. Only the MCDA Board of Commissioners can accept an offer on a property and provide the authority for a land sale. The MCDA does not in itself have the authority to accept an offer. We submit all written offers to the Board for their approval. PRG is a valuable partner of the MCDA and have worked with them, and are working together now, on several projects. In this particular case, PRG began discussions with the neighborhood association and block club about reuse and design of the home to be located on the property, prior to receiving direction from the MCDA Board of Commissioners, and in fact prior to ever approaching the MCDA about their interest in this property. The property 3424 Columbus Ave. S. was presented to the MCDA as part of a redevelopment package, not as a single property. On July 17, 2000, the Nonprofit Consortium presented a redevelopment package to the MCDA for 24 vacant lots, 3424 Columbus Ave. S. was one of those properties. As part of the redevelopment package, the Consortium requested the maximum subsidy for each house ($27,500). On 6 of the 24 properties, subsidy exceeded $27,500. An additional 6 were from Habitat for Humanity and had no finance gap and therefore did not qualify for the program, but were being used to drive the average subsidy down. On the remaining 12, the actual subsidy needed was at or below $27,500. The MCDA could not present the Consortium's redevelopment package to the MCDA Board of Commissioners as the Lot Reduction Policy is set up for a $27,500 maximum per house. It is not set up to spread the subsidy over a package deal. The MCDA informed the Consortium of the policy guidelines, and told them that MCDA staff would like to move forward to the MCDA Board of Commissioners with the 12 lots where the subsidy would be at or below the $27,500 maximum. The Consortium declined, and said they preferred to have more discussions over how the policy was to be administered. They elected to not move forward on any of the 24 properties. Therefore, the Consortium, and in this case specifically PRG, did not at any time have an approved land sale from the MCDA Board of Commissioners for 3424 Columbus Ave. S. While the Consortium was discussing how to move forward, a private owner did approach the MCDA with their written offer to purchase 3424 Columbus Ave. S. to build a new home for his family. This owner offered to pay fair market value for the land, develop the property to meet City of Minneapolis code, and requested no subsidy. In keeping with our Citizen Participation agreement with this neighborhood, the MCDA brought this proposal to the neighborhood for review. The neighborhood declined to comment on the proposal. As a result the MCDA presented both proposals to the City Council Operating Committee -- the proposal from a private developer to build a home for his family with no subsidy, and the proposal from PRG that requested a $27,500 subsidy and had no buyer identified. The Operating Committee approved the sale of the property to the private developer at fair market value with no subsidy. It is inaccurate to suggest that PRG did not know about MCDA's recommendations. In fact, this lot sale was postponed two weeks ago, at my request, so the Operating Committee could have the choice of a private buyer or PRG. PRG is a valued partner as are all the nonprofits in the Consortium. In the past 45 days, the MCDA Board of Commissioners will have approved 36 properties for sale to members of the Consortium, and there are several more properties in process. It is our mission to work with nonprofits and to work with neighborhoods. It is our common goal to revitalize our neighborhoods. As the former executive director of a nonprofit, PPL, I assure you that the MCDA is committed to working with our nonprofit partners. We will continue to work together to redevelop properties for new homebuyers and to that end I do encourage that our development partners to look at our land inventory and submit offers when they are ready to build. The important task of revitalizing our neighborhoods is not concluded with the lot at 3424 Columbus Ave S. Minneapolis' residents are indeed looking for new housing opportunities in the present housing market. Submitted by Dawn Hagen of MCDA Public Information on behalf of Steve Cramer, MCDA Executive Director
