After receiving just below what they sought at the Legislature to renovate Nicollet Mall, city leaders are mulling whether to contribute $3.5 million to the project in order to leverage promised private dollars.
The overhaul of Minneapolis' signature street is expected to cost $50 million. The Downtown Council has said they are prepared to match up to $25 million, but the Legislature awarded the project $21.5 million in the final bonding bill.
"Since we got something less than $25 [million], we're talking now about what we might do so as not to leave money on the table, if you will," said David Frank, the city's director of transit-oriented development.
"We certainly don't want to leave any money on the table," concurred council president Barb Johnson. "And our project budget is $50 million. So we're going to have to talk about how that gap gets filled."
The city has already spent a little over $1 million on the project to date, Frank said. Just where that extra $3.5 million would come from remains unclear.
"City money is one possibility," Frank said. "But…we're looking at other funding that we might able to bring to the table."
The issue is relatively urgent because the total cost of the project will determine how the Downtown Council, property owners and the city configure assessments that will pay for the private half of the project.
Steve Cramer, president of the Downtown Council, said they plan to assess building owners who could then pass the cost through rents from Nicollet Mall tenants. He said they are getting organized to start communicating more with building owners.