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Council committee approves IZ-TIF for 7 Points development, staff says prevailing-wage protections apply
Summary
The Business, Housing and Zoning Committee approved an inclusionary-zoning TIF for the 7 Points project in South Uptown, securing 46 units at 50% AMI for 30 years and authorizing up to $6,264,000 in pay-as-you-go TIF; staff confirmed prevailing wage and affirmative-action provisions in the TIF contract.
The Business, Housing and Zoning Committee voted to approve an inclusionary-zoning tax-increment financing (IZ TIF) plan for the 7 Points project, a 228-unit market-rate development in the South Uptown neighborhood that will reserve 20% of units — 46 units — at 50% of area median income for 30 years.
“7 points is a new construction market rate project located in the South Uptown neighborhood in Ward 10,” said Haley McSparren, senior project coordinator in CPED, while presenting staff’s recommendation. McSparren said the proposal establishes a new housing TIF district with a 26-year term and requests a pay-as-you-go TIF note of up to $6,264,000. Total development costs were estimated at $57,000,000, she said.
The project team and staff framed the IZ TIF as the final financing piece needed to close and start construction this fall. Under the proposal, the developer will provide 46 affordable units (including 10 studios, 31 one-bedrooms, three two-bedrooms and two three-bedrooms) at 50% AMI or below for a 30-year affordability term; staff said the IZ TIF amount was sized according to council-adopted policy.
Labor groups and prevailing-wage advocates testified in support of the project’s labor protections. Dan McConnell of the Minneapolis Building Trades and Nate Grewell of the Fair Contracting Foundation urged the council to continue using prevailing-wage and related standards on publicly subsidized projects. Lucas Franco of the Laborers Union cited research showing abuse by some contractors on subsidized projects and thanked Minneapolis for maintaining stronger protections.
When Councilmember Chowdhury asked staff to put labor protections on the record, McSparren responded that prevailing-wage requirements apply, the project must submit an affirmative-action plan, and civil-rights staff are assigned to oversee compliance as part of the TIF contract terms. After that exchange, Chowdhury moved approval; the committee approved the plan by voice vote.
What’s next: The TIF plan will proceed through the council approval process; staff said the IZ TIF is the only financing requested from the city for the project and that construction is expected to begin after closing this fall.
Provenance: topicintro SEG 079, topfinish SEG 275
