Council weighs anti-displacement tools as $10 million NOAH pool becomes available for Blue Line corridor

Senior Planner Cara Donovan and Planning Director Paul Mogush told the Council that roughly $10 million in NOAH (preservation) funding will be available for projects across the Blue Line Extension (BLE) corridor and that competitive applications will require match commitments.

Donovan said the funding covers work across the four corridor cities and the park board and staff are discussing a pre-application step to lower upfront burdens for applicants and encourage partnerships. Planning Director Mogush said the fund is modest compared with the scope of corridor investment and the Board hopes to demonstrate impact to argue for more funding in the future.

Council members pressed staff on policy tools to limit displacement. Council Member Nichole Klonowski cautioned against rent-control approaches, saying experience in other cities had deterred lenders and reduced housing investment. Klonowski said rent-control proposals in nearby municipalities had helped drive developers to other markets.

Other Council members pressed for tenant-focused measures staff identified as feasible: mandatory relocation-assistance rules (whereby landlords must pay a flat relocation benefit if tenants are displaced), tenant-notification ordinances on imminent sales, tenant-screening reform, and targeted preservation programs that place long-term affordability covenants (typically 30 years) on properties receiving public funds.

Staff described existing tools Brooklyn Park already uses — tenant-notification rules on certain sales and a city NOAH preservation program — and suggested a range of next steps: refine matching strategies for the NOAH application, explore relocation-benefit levels (flat payments versus case-by-case costs), pilot workforce-training matches for corridor hiring and evaluate commercial land-trust ideas to support small business retention.

Council members asked staff to return with additional detail on match requirements, forgivable-loan timing and how relocation benefits would be calculated. Senior Planner Donovan said some proposals — e.g., limiting investor purchases — are untested in Minnesota and would require legislative or legal analysis.

Next steps: staff will continue deep dives into selected policy options and return to the Council with recommended tools and budget implications.