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Blue Line Extension: city staff outline anti‑displacement options, $10M state program requires matching funds
Summary
Staff presented a suite of programs and policy options to limit displacement along the proposed Blue Line Extension corridor, outlined a $10 million state‑level anti‑displacement fund with 100% match requirement, and asked council for priorities to shape future grant applications and local policies.
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The council received an update on anti‑displacement planning tied to the planned Blue Line Extension, which will run 4.5 miles through Brooklyn Park and include five station areas.
Kara Donovan, senior planner, told the council that construction is planned to begin in 2027 with an operating target of about 2030. City staff summarized findings from the CURA report and a Metro anti‑displacement initiative, then outlined a menu of 13 potential actions to preserve housing, support small businesses and workforce development, and create long‑term community ownership models.
Donovan described five funding “buckets” in the state’s Anti‑Displacement Community Prosperity Program: affordable housing, small business support, job training and placement, community ownership, and public‑realm enhancement. The program has $10,000,000 available across the corridor but requires a 100% non‑state match for applications. Donovan said staff are exploring the possibility of a pre‑application or matchmaking step so community groups and city partners can assemble matching funds.
On housing, staff proposed continued support for naturally‑occurring affordable housing (NOAH) preservation, direct rent/mortgage assistance during periods of construction, mandatory relocation assistance tied to specific triggering events (for example, no‑cause evictions), tenant‑screening reform, and a possible rent‑control ballot measure (staff noted state action could affect whether rent control remains permissible).
On small business support, staff recommended grant or forgivable‑loan programs to reimburse businesses affected by construction, façade improvement programs, expanded technical assistance through partners such as Elevate Hennepin, and temporary deferrals of fees and taxes during construction. Job training concepts included expanded construction‑trade pathways; staff noted earlier ARPA‑funded programs had expired and suggested applying anti‑displacement money to rebuild those pathways.
For community ownership, staff reported that a commercial community land trust (PIP CLT) has approached the city with a model to preserve affordable commercial space in perpetuity; staff said the city could explore a partnership and possibly use matching funds to seed the trust.
Council members asked about allocation rules, equity and local priorities. Several council members urged early action because construction‑driven investments can accelerate price increases and displacement. Donovan said the anti‑displacement board is still developing application rules; the city can apply as soon as the application window opens (staff estimated spring or summer 2025), but staff recommended completing community engagement first to set local priorities.
Key clarifications from staff and board representatives: - The board’s $10 million covers all cities along the corridor and is intended to leverage larger investments; staff described the amount as a start to demonstrate impact and attract additional funds. - The program’s strict 100% match requirement means applicants should identify local or federal funding that can serve as match; staff suggested the city might offer local EDA or ARPA resources as match where appropriate. - Staff will return with more detailed cost estimates and recommended programs once council priorities are identified and public engagement is completed.
Next steps: staff will continue corridor outreach, prepare community surveys, attend board meetings, and return to council with a prioritized list of programs and policies for formal council direction and, if appropriate, to form grant applications.
