The Minneapolis City Council gave the City of Lakes Community Land Trust exclusive rights to buy and rehab a city-owned commercial building on East 26th Street, with the key goal to eventually sell the property to a minority-owned small business.
The commercial land trust deal is a first for the city because this trust focuses on commercial property — not housing. And because the pilot project is targeted and hopes to provide affordable space to a minority-owned company.
Rebecca Parrell, project supervisor for Minneapolis' business development division, said that until now, the land-trust models in the city had focused exclusively on housing.
The 19 E. 26th St. property, which sits near Nicollet Avenue in the Whittier neighborhood, is a two-story structure attached to a row of similarly sized business buildings.
The 1901 building housed a money-wiring service on the first floor and a two-bedroom apartment on the second floor. But the property went into tax forfeiture some years ago. The city of Minneapolis bought it from Hennepin County in January 2019 for $181,000.
The City Council last week voted to give the City of Lakes Community Land Trust first dibs to buy it. The trust now has 18 months to buy the building. But first it must prove to the council that it has adequate financing, rehabilitation plans, architectural drawings, building permits and a viable tenant.
"This is very different from the private sector, where you just sell a property to the highest bidder," Parrell said. "The goal here is public benefit. It is trying to create a wealth-building opportunity for entrepreneurs to own properties."
Other cities such as St. Paul already have used land-trust arrangements to help shore up neighborhoods in need of affordable and senior housing and revenue- and tax-generating businesses.