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Indian housing project back on docket

Plans for the affordable housing development have been scaled back, but officials believe the apartments could be occupied by 2012.

Last update: November 8, 2009 - 11:43 PM

Plans by the American Indian Community Development Corp. to build affordable rental housing in south Minneapolis -- put on hold for at least three years because of the collapse of both the I-35W bridge and the economy -- will be revived this week with a public hearing in Hennepin County.

County commissioners, sitting as the Housing and Redevelopment Authority (HRA), will take testimony on Tuesday on the proposed transfer of vacant land from the Minnesota Department of Transportation (MnDOT) to the development corporation, which offers housing and support services primarily for homeless and low-income American Indians.

Under the terms of the transaction, the HRA would buy two MnDOT parcels totaling nearly 20,000 square feet for the assessed value of $39,216 and then resell the property to the development corporation at the same price. The corporation would pay all closing costs.

Possession of that property, in turn, would enable the development corporation to buy adjacent easements on vacant land along Franklin Avenue at 16th Avenue S. The additional parcel would nearly double the site on which a three-story apartment building with 30 one-bedroom units would be built, said corporation CEO Mike Goze.

The new units would cater to couples and individuals looking to enter the workforce, he said. A design has been selected, but a developer hasn't been chosen for the project, which is supported by Ventura Village neighborhood leaders.

"We have to keep a vision in front of us. We can't wait," Goze said. "Best-case scenario is two years [to begin construction], and we're probably looking at three years [until occupancy]."

The original plans called for a 60-unit housing development with room for six retail shops. A public hearing in 2006 on the project drew no objections.

But the land transfer was postponed after the bridge collapse monopolized MnDOT's attention and the economy turned sour, Goze said. The plans since have been scaled back to reflect the shrunken market, but the development could be expanded later, he said.

"When people don't have an affordable housing option, they pay a great percentage of their income on housing, leaving them very little" for other necessities, Goze said. "Our goal is to provide safe, affordable housing that will provide a way for people to access other areas of their life."

Kevin Duchschere • 612-673-4455

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