Brooklyn Park is moving forward with the sale of city-owned land on the corner of Brooklyn Boulevard and Welcome Avenue, entering into a purchase agreement with a developer that is planning to build 100 affordable housing units on the site.
At a July 20 meeting, the Brooklyn Park Economic Development Authority approved a deal with JO Properties — granting the St. Paul-based developer $525,000 in tax increment financing from the city, as well as a significant price reduction for the purchase of the land itself.
The roughly 1.7-acre property has an appraised value of $945,000, but a $575,000 land write-down approved by the city brought the purchase price to $370,000.
The project is referred to as “Welcome West” in city documents, while the developer is calling it “The Sovereign.” JO previously developed Wangstad Commons, a 54-unit affordable housing complex in Brooklyn Center.
The total development cost is estimated at roughly $41 million. JO plans to supplement the $1.1 million worth of assistance from the city with low-income housing tax credits and a conventional loan, according to city documents.
JO has designed a four-story building with 25 one-bedroom units, 44 two-bedroom units, 19 three-bedroom units and 12 four-bedroom units. All units will target households earning 60% of the area median income.
The building will also feature an estimated 95 covered parking stalls, 40 surface parking spaces and a community room on the ground floor.
City documents described the project as “step-up” housing for residents of nearby complexes, such as the former Huntington Place Apartments, now called Noma One.
Community Development Director Tim Gladhill said approval of the document would not commit the city to a finalized deal, but it would signal interest and spark further negotiations.
A preliminary term sheet approved by the EDA last month laid out the conditions of the deal. At that meeting, Economic Development Coordinator Abdul Shire noted that city staff had already worked to lower the developer’s original request of nearly $1.8 million in assistance to $1.1 million. Shire said the nearly $700,000 reduction brought the housing subsidy per-unit to $11,000.
The EDA did not voice any comments or questions at this month’s meeting. Following a short presentation by city staff, the motion to approve the deal passed 4-2.
Mayor and EDA President Hollies Winston voted yes alongside commissioners Tony McGarvey, Amanda Cheng Xiong and Christian Eriksen — while commissioners Shelle Page and Maria Tran voted no.
Commissioner Nichole Klonowski was not present for the meeting. She recused herself from the preliminary term sheet vote last month due to her employment with Pope Design Group, which does design work for the developer.
Approval of the deal did not immediately finalize the sale. Rather, it granted JO Companies the exclusive right and option to purchase the property until June 30, 2028 — though the process is expected to move more quickly than that.
According to city staff, JO plans to submit a tax-exempt bonding allocation to Minnesota Management and Budget in December of this year. If awarded, city staff and legal counsel will draft a TIF agreement for EDA consideration in 2027. Land use applications will also need to be approved by the city in order for the project to move forward.
Construction for the project is tentatively scheduled to begin next spring, with an estimated completion date in mid-2028.