Minnetonka staff report: light-rail testing, TOD figures, rental registration and housing grants

City staff updated the Economic Development Advisory Commission on a range of economic development and housing items, including light-rail testing, transit-oriented development totals, construction project statuses, rental-registration data, homelessness-response work and homeownership assistance.

Transit and construction: staff said light-rail testing continues and that passenger service is not expected until 2027; most corridor trails are open. Staff reported transit-oriented development activity along the corridor that the city’s briefing attributed to roughly $653,000,000 in development in Minnetonka and about 2,000 new housing units since 2011, with approximately 35% designated as affordable.

Local projects: updates included work underway at the Roland Road site (a city-owned property sold to Armani Construction), progress on senior and memory-care housing near Highway 394, ongoing site work for a Habitat project, accelerated permitting and final inspections at several multifamily developments (Greystar, Marlowe, Mara Villas) and a reminder that some projects have punch-list items such as lighting programming at a local auto dealership.

Rental registration and homelessness supports: staff reported Year 2 of the rental-registration program is moving forward with 541 total registrations for 2025 to date (248 new, 293 renewals), 522 registered as long-term rentals and 19 as short-term. On homelessness response, staff described the partnership with His House Foundation and related referrals: examples cited included referrals from schools and police, 11 households referred to shelter, seven referred to mental-health or substance-abuse services, and coordinated-entry assistance. The city received a $150,000 Local Housing Trust Fund grant to support rent and utilities for one transitional unit at the Vail Apartments.

Homeownership assistance: staff reviewed the Pathways to Homeownership down-payment assistance program (in place since 2023), which provides up to $75,000 to eligible buyers earning up to 120% AMI at 0% interest with 5% forgiven annually over a 20-year term; staff said the program is out of funding for 2025. Demographic details reported by staff included an average borrower age of about 37 and an average borrower income of roughly $100,000.

Other notes: staff said bonds for Villas at Chase Wood were issued Dec. 2 and that final construction costs came in lower than estimated; staff are working on refunding overpayments from prepayments. The commission was reminded of outreach events, including Thriving Thursday and the Minnetonka Business Council series, and the next EDAC meeting was set for Jan. 15.