Brooklyn Park Affordable Housing Project Proposed By Devean George Takes Step Forward

With rising construction costs, former NBA player and housing developer Devean George revised plans for an apartment complex in Brooklyn Park this week.

In contrast with previous plans, almost all of the apartments in the $26 million, 83-unit complex would have income limits for renters.

The Brooklyn Park City Council, acting as the Economic Development Authority, gave approval to the plans on May 15.

The council voted 4-1 to approve the changes, with Council Member Maria Tran casting a dissenting vote.

Previous plans for the project — which is being proposed on city-owned land near the intersection of Brooklyn Boulevard and Zane Avenue — featured 51 market-rate one and two-bedroom units.

In new plans, those market rate units have been converted to be affordable to renters making 80% of the area median income.

“I’m a little bit torn here because I know we’ve begun having extensive discussions around that Brooklyn Boulevard corridor and market rate building,” said Mayor Hollies Winston. “We know that Brooklyn Boulevard has to change – that’s really the gateway to our city.”

The project, called Village Creek Apartments, has been in planning since 2018.

Included in the five-story apartment complex are a 10,000 square-foot commercial kitchen and a retail business incubation space.

George’s non profit will also provide services at the complex.

REVISED PLANS WITH RISING COSTS

The COVID-19 pandemic delayed construction plans for the project.

Since then, anticipated construction costs have risen, resulting in a $5-7 million increase in project costs, said Sarah Abe, Brooklyn Park development project coordinator.

As a result, George has restructured his financing plans to utilize low income housing tax credits. To be eligible for these credits, units must be restricted in their monthly rent costs.

According to George, a one-bedroom unit at 80 percent of area median income would cost $1,471 per month.

In new plans, only 13 three-bedroom units in the complex would charge market-rate rents. Rent in these units is $2,049.

The remaining units would be affordable at 30-50 percent of area median income. Rents in these units would range from $660 to $1,525.

COUNCIL OPINIONS ON AFFORDABILITY

The council had mixed opinions about the proposal.

“I’m just going to say, I feel really torn,” said Council Member Nichole Klonowski. “I think the community aspects of what you’re bringing are just impactful and meaningful, and on the other hand, we just discussed earlier how little land we have left to actually develop and we’re taking perhaps a different direction than previous councils.”

Council Member Christian Eriksen said that the city could benefit from the diversity of rental pricing proposed in the project.

“The reality that this two-bedroom at 80 percent [of area median income], that rent is still $200 and some more dollars than my mortgage, tax and insurance payment on my four-bedroom, single family home,” Eriksen said. “I think there’s a need here that’s not necessarily addressed.”

Winston said the council is still developing an overall development strategy for Brooklyn Boulevard.

George is requesting that the provide $2.1 million in financial assistance to the project. Previously, George was requesting $3.59 million in financial assistance.

The project has already received an $832,000 award from the Metropolitan Council and a $750,000 grant from Hennepin County to assist in construction costs. However, if construction work does not begin on the project before the end of the year, those funds will expire.

WATCH.

SOURCE: CCX MEDIA