St. Louis Park EDA approves amended BeltLine Station redevelopment deals with deeper affordability, early‑start work

The St. Louis Park Economic Development Authority on a unanimous vote approved three actions to move the BeltLine Station redevelopment toward construction: amendments to the mixed‑use and affordable housing contracts, a revised purchase agreement for the EDA land, and an early‑start agreement for limited site preparation.

The measures clear the way for Sherman Associates to proceed with a 6.6‑acre, four‑component redevelopment immediately north of the Green Line LRT Beltline Station that the EDA estimates will include about 380 units, 82 of them designated as affordable at various area median income (AMI) levels, a structured parking ramp and neighborhood commercial space. Redevelopment administrator Dean Porter Nelson told the EDA that “the parking stalls need need to be operational 3 months prior to the opening of the Green Line extension, which is anticipated for 2027.”

Why it matters: The EDA said the project will add residential units, commercial floor area and long‑term property tax revenue to St. Louis Park while ensuring deeper affordability than previously approved. The amended affordable contract increases deeper affordability in the affordable building by adding 20 units at 30% AMI and 23 units at 50% AMI, compared with the earlier mix that leaned heavily on 60% AMI units.

The project and the approvals The redevelopment, proposed by Sherman Associates, consists of a seven‑story mixed‑use building, a four‑story affordable building, a five‑story market‑rate building and a structured parking ramp with neighborhood commercial space. Staff described total private investment of about $147,500,000 for the full project and said the EDA’s total financing assistance across TIF notes and other tools is approximately $15,830,000 under the updated package.

Under the amended purchase agreement Sherman would pay the full $3,390,000 appraised value for the EDA parcel and $1 for the affordable‑housing parcel at closing, but the developer may defer part of the land payment until a later refinance of its construction loan. Staff said that deferred portion would convert to a fully amortizing loan if not repaid at refinance.

Staff and the developer said timing is a key constraint. The agreed cooperative construction grant with the Metropolitan Council and a federal congestion mitigation (CMAQ) grant create deadlines for providing park‑and‑ride capacity. Dean Porter Nelson warned that if the redevelopment does not proceed the EDA may be contractually obliged to construct surface parking instead. Sherman Associates and staff told the EDA that grading is expected to begin in the second quarter of 2025, with Buildings 1 and 3 and the ramp to start in third quarter 2025 and Building 2 following in first quarter 2026 under the developer’s financing plan. The EDA required that Building 2 must begin before June 2027 under the contract contingencies.

Affordability, safeguards and financing The EDA approved a proposed additional Affordable Housing Trust Fund loan of $1,175,000 to support the deeper affordability in the affordable building, bringing the planned affordable component financing (including a TIF note) to about $2,600,000 for that building. Staff emphasized this amount is a loan with a 25‑year repayment schedule and disbursements tied to construction milestones.

As a guardrail, staff included an in‑lieu fee that would become payable if the affordable housing portion has not commenced construction within two years of the schedule: the staff report and the EDA’s resolution state an in‑lieu fee of $5,200,000. Dean Porter Nelson described the fee as “an additional safeguard” to ensure that the deep affordability proposed is delivered.

The EDA’s TIF commitments remain reflected in contract not‑to‑exceed amounts; staff said present values of the TIF notes have shifted because of changes in developer financing and interest rates, but the contract caps remain. Commissioners were told the not‑to‑exceed TIF amounts total roughly $13.2 million for the market‑rate/mixed‑use/parking components; affordability TIF is structured on a longer (26‑year) payback than the market rate components (about 16 years).

Parking, grants and timelines Staff and the developer discussed two grant deadlines that shape the schedule: the cooperative construction agreement with the Metropolitan Council and a CMAQ congestion mitigation grant. Dean Porter Nelson warned the parking stalls “need need to be operational 3 months prior to the opening of the Green Line extension.” The staff presentation described the ramp proposal as including 268 park‑and‑ride stalls; the developer later referenced a different stall estimate while describing the site’s overall parking plan (transcript record includes two stall figures; see clarifying details).

Early‑start and site constraints The EDA approved an early‑start agreement limited to up to $100,000 in developer‑funded minimal site work (vegetation removal, grading preparation and termination of some nonworking utilities) before closing. Staff said that work would require erosion control permits and be secured by a performance bond from the general contractor (Franich Construction).

Developer comments and leasing plans Chris Sherman, president of Sherman Associates, told commissioners the firm has worked on the project with the city for six years and that the firm has made deeper affordability changes to improve the project’s competitiveness for state affordable‑housing bond allocations. “This is our number 1, 2, and 3 focus,” Sherman said of the BeltLine Station project, adding the company expects to close financing and begin construction quickly if the city’s approvals are finalized.

Sherman said the firm expects to receive project‑based vouchers (he referenced 20 project‑based vouchers awarded) and to accept Section 8 vouchers at the property. He told commissioners the firm has extensive experience managing affordable and mixed‑income housing and that leasing demand in the submarket supports the plan; city staff said St. Louis Park vacancy rates are low and that affordable units typically face strong demand.

Public comment and EDA action Two members of the public spoke at the EDA public hearing. One resident raised concerns about school capacity, tax impacts and the number of new apartments citywide; another attendee said she had not received notice and raised unrelated neighborhood concerns. Staff reiterated they would be available after the meeting to follow up with residents.

After discussion the EDA voted to approve (1) an amended market‑rate/mixed‑use contract and related documents, (2) an amended affordable housing contract with the deeper affordability mix and additional trust fund loan, and (3) an early‑start agreement. The motions were moved and seconded and carried on a voice vote.

What the approvals do not do The EDA’s approvals modify contract and financing terms and allow limited early‑start work; they do not guarantee future financing (the developer must secure construction financing and state bond allocations), and the in‑lieu fee and reverter provisions are intended as enforcement mechanisms if the affordable housing does not proceed as proposed.

Next steps and timing Staff listed likely next steps: a revised planning and development contract, the developer’s application for new state affordable‑housing bonds, final financial closings and the land sale closing (anticipated prior to construction). The developer said it hoped to achieve financial closing within 30–60 days and to begin construction in summer 2025.

Ending note EDA and council members who spoke cited the project’s alignment with St. Louis Park’s strategic priorities, green‑building goals and the original RFP vision for transit‑oriented development, and they expressed support for moving the long‑stalled site toward redevelopment while preserving the newly negotiated affordability commitments and contractual guardrails.