Hennepin County HRA approves termination of Lake and Hiawatha redevelopment agreement with L and H Station

Hennepin County’s Housing and Redevelopment Authority on Aug. 13 approved a package ending L and H Station Development LLC’s rights to develop phases 3 and 4 of the Lake and Hiawatha redevelopment and authorized estoppel certificates related to the pending sale of the phase 2 (b-side) apartments. Spencer Agnew, facility services, told the board, “L and H has notified the HRA that it no longer wishes to develop those sites and wishes to cancel its development rights and the associated purchase agreements.”

The Lake and Hiawatha redevelopment dates to 2014, when Hennepin County provided capital funding for acquisition and redevelopment of roughly 6 acres at the southwest corner of East Lake Street and Hiawatha in Minneapolis. The county office building (now the South Minneapolis Human Services Center) opened in 2017; the plaza was completed in 2021 and was transferred to the Minneapolis Park and Recreation Board and now hosts the Midtown Farmers Market. Two housing phases have been built; phases 3 and 4 remain under HRA ownership. Board members approved the termination and related documents by voice vote and directed staff to develop a new request for proposals and reengage the Corcoran neighborhood on goals for the reoffer.

Why it matters: returning the undeveloped parcels to the HRA lets staff reshape the solicitation to reflect current county housing priorities and market realities. Agnew told commissioners staff will work with housing and economic development staff to craft an RFP and return to the board with a viable development recommendation. The board then closed the meeting and adjourned.