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VII.1. Financial Assistance Request – 325 Blake; Elverum CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Kersten Elverum, Director of Planning & Development Date: December 7, 2021 Subject: Financial Assistance Request – 325 Blake _____________________________________________________________________ PURPOSE The purpose of the discussion on December 7, 2021, is to present the preliminary request for financial assistance and draft terms for the redevelopment project by Alatus for 325 Blake Road and receive City Council feedback. Stacie Kvilvang, Ehlers Public Municipal Advisors, will be at the meeting to provide an overview of the request. A copy of the draft term sheet is attached for reference. INFORMATION It has been anticipated that the redevelopment of 325 Blake Road will result in a gap in project financing and that the gap would likely be closed using a combination of grant funds and tax increment financing (TIF). Factors driving the gap include the cost of infrastructure needed to facilitate development (roads, utilities, pedestrian and bike infrastructure and other public amenities), affordable housing and the cost of construction for elements such as structured parking. All of the development proposals narrowed through a joint Request for Proposals, issued by the Minnehaha Creek Watershed District and the City of Hopkins, reflected a gap in the project proformas and a need for TIF. Adding to the cost of development has been the significant increase in construction costs due to material price increases, increased labor cost due to a labor shortage, and increased carry time due to prolonged construction timelines due to material shortages. Project costs for the Alatus development have increased from approximately $239,000,000 to approximately $319,000,000. Originally, the project was anticipated to have a gap of approximately 13.2% of total development cost, or $31,619,000 in public financing, including $26 million to $29 million in TIF, dependent upon how much grant funding is secured. As the project was refined and current cost estimates were applied, the project gap is approximately $32,450,000, or 10.17%. Stacie Kvilvang, Ehlers Public Municipal Advisors, has been reviewing preliminary project financials throughout the development of the project from Planning & Economic Development concept to land use applications and has confirmed that financial assistance will be needed for the project to move forward. The amount of TIF assistance in the term sheet will be a not to exceed amount for the entire project. A formal detailed analysis for each project element requesting assistance will be completed as those elements progress forward to construction to determine the level of assistance actually required. The developer currently has approximately $6.1 million in grant funding identified in their proformas. The recommendation is to continue to pursue these grants and others not yet identified that can help bridge the gap, utilize Spending Plan TIF from District 2- 11 and issue up to three (3) pay-as-you-go TIF Notes from District 1-6 in an amount not to exceed $31,900,000, or 10% of the development cost. TIF would be used to offset the cost of infrastructure, underground parking and affordable housing under terms outlined in a development agreement. In addition to the commitment of TIF, the agreement would include the following: Affordable Housing • 25% of the total number of units will be affordable at a range of incomes at 30, 50, 60 and 80% of area median income (AMI) • Specific income requirements (number and AMI) identified for various housing types including senior cooperative, 100% affordable tax credit apartment and mixed-income apartment • Requirements for the affordability to remain in place for a minimum of 30 years through covenants recorded with the property with annual reporting requirements to the City • Requirement to apply for project-based housing choice vouchers • Distribution of affordable units throughout the mixed-income buildings Construction and Maintenance of Public and Private Improvements • Responsibility of developer to construct public improvements to City standards and turn over the ownership of the main road to the City • Agreement that the City will provide snow removal and maintenance of the main road, from curb to curb • Developer and/or HOA will be responsible for the maintenance of the driveways, service drives, surface parking lots, parking structures, sidewalks, street lights, landscaping, streetscape improvements, storm water facilities, bicycle parking, plazas, pavilion, cascade promenade and greenway commons • Installation of public art in cooperation with the City, with a minimum budget established • Developer will provide perpetual public access, drainage and utility easements over applicable public improvements at no cost to the City Property Tax • Developer will enter into a Minimum Value Assessment Agreement setting a minimum property tax value of the portions of the development receiving TIF assistance which will terminate with each TIF Note • Developer will apply for 4d tax classification for 100% of building A (tax credit apartments) and 20% of units in building D (mixed-income apartments) • Developer or its successors will not cause a reduction in property taxes paid and provides provisions if a tax petition is initiated Miscellaneous Provisions • Requirement that the Homeowner’s Association (HOA) documents set a maximum on number of rental units allowed • Payment of Park Dedication Fee at time of building permit issuance • Incorporation of a look back provision that will be completed upon stabilization of the development to assure the appropriate level of public assistance • Performance dates including developer closing on the purchase of phase I by June 30, 2023 and phase II by December 31, 2024. Construction of minimum improvements, including the five residential developments and approximately 18,000 square feet of commercial space, will be completed between June 2025 and June 2028 (depending on financing and other market conditions) • Retention of experienced property management company • Acknowledgement that additional grant funds awarded to the project, not currently identified in the project proforma, will reduce the principle amount of TIF • Commitment to provide lower than market rents for commercial space for neighborhood-serving commercial uses FUTURE ACTION The commitment of TIF and the associated development agreement is planned to be brought to the Hopkins HRA at the December 21, 2021, meeting for consideration. It will incorporate the terms listed as well as other direction provided through discussion on December 7, 2021. DOCSOPEN\HP145\47\764014.v6-12/2/21 DRAFT Term Sheet This Term Sheet as of this 7th day of December, 2021 by and between Alatus Hopkins MD LLC, (the “Developer”) and the Hopkins Housing and Redevelopment Authority (the “Authority”) and is intended to set forth the general terms upon which the parties hereto are willing to enter into a TIF Agreement. 1. Developer: Alatus Hopkins MD LLC IDS Center 80 South 8th Street, Suite 4155 Minneapolis, MN 55402 Attn: Robert Lux 2. Property: 325 Blake Road North (PID# 19-117-21-14-0002) 3. Legal Description of Property: A portion of the property legally described below that is to be platted as MILE 14 ON MINNEHAHA CREEK: PARCEL 1: Lot 74, Auditor's Subdivision No. 239, Hennepin County, Minnesota, except that part of said Lot 74 which is designated and delineated as Parcel 29, Hennepin County Right of Way Map No. 2, according to the plat thereof on file or of record in the office of the County Recorder in and for said County. (Torrens Property, Certificate of Title No. 1341193) PARCEL 2: That part of Lot 97, Auditor's Subdivision No. 239, Hennepin County, Minnesota, described as follows: Beginning at the point of intersection of the East line of Monck Avenue, (as shown on the recorded plat of said subdivision), with the most Northerly right of way line of The Minneapolis & St. Louis Railway Company; thence in a Northeasterly direction along said Northerly right of way line, a distance of 845 feet to a point; thence South parallel with and 845 feet from the East line of Monck Avenue, (as shown on the recorded plat of said subdivision), a distance of 14.48 feet to a point; thence in a Southwesterly direction parallel with and 13 feet from the most Northerly right of way line, a distance of 845 feet to a point on said East line of Monck Avenue, (as shown on the recorded plat of said subdivision); thence North along said East line of Monck Avenue, (as shown on the recorded plat of said subdivision), a distance of 14.48 feet to the point of beginning, except that part of said Lot 97 which is designated and delineated as Parcel 29A, Hennepin County Right of Way Map No. 2, according to the map thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota, all being located in the Southeast Quarter of the Northeast Quarter of Section 19, Township 117 North, Range 21 West of the 5th Principal Meridian. (Abstract Property) 4. Acquisition of Property: The property located at 325 Blake Road North (the “Property”) is privately owned. The Developer will secure a Purchase Agreement for approximately 12.75 acres of the Property in which they will close in two phases. The purchase price for the Property is $11,250,000 DOCSOPEN\HP145\47\764014.v6-12/2/21 of which Phase I purchase price is $8,000,000 and Phase II purchase price is $3,250,000. The Developer agrees to close on the acquisition of Phase I of the Third-Party Property by June 30, 2023. Developer agrees to close on Phase II of the Third-Party Property by December 31, 2024. 5. Minimum Improvements: Construction of multiple buildings containing approximately 800 multi- family units, with 688 units of apartments, and 112 Sr. Cooperative units with affordable levels within each building noted in the table below: Bldg C Market Rate Bldg D Mixed Income Bldg A LIHTC Bldg B Sr. Coop Total % Affordable of TOTAL Units No. of Units 389 187 112 112 800 N/A 50% AMI 0 0 112 0 112 14% 60% AMI 0 38 0 12 50 6% 80% AMI 0 38 0 0 38 5% Total Affordable 0 76 112 12 200 25% % Affordable by Building 0% 40% 100% 11% 25% In addition, construction of 33 for sale town homes, 8,000 sq. ft. of ground floor retail, 1,000 sq. ft. sky lounge and two (2) 4,500 sq. ft. standalone restaurant pads. Details of each Phase are noted below in the table. Total Development Costs are estimated to be approximately $319,000,000. Phase Use Phase IA – Building C Single building with a 14-Story component consisting of approximately 202-units of market rate apartments with up to 15% of the units designated as hotel units, approximately 8,000 sq. ft. of ground floor retail and a 1,000 sq/ft sky lounge and a 5-story component consisting of approximately 175-units of market rate apartments Phase IB Two single-story 4,500 sq. ft. restaurant pads and greenway commons, 1,400 sq. ft. boathouse and rental center and pavilion, with the greenway commons and pavilion available for public use Phase IC – Building B 5-Story building with approximately a 112-unit senior cooperative, in which 12 units (approximately 11%) are affordable to persons at or below 60% AMI Phase ID Approximately 33 for-sale town home units Phase IIA – Building A 5-Story building with approximately a 112-Unit LIHTC apartments with 100% of the units affordable at or below 50% of AMI Phase IIB – Building D 5-Story building with approximately 192-units of mixed income apartments in which 20% of the units (38) are affordable at or below 60% AMI and 20% of the units (38) are affordable at or below 80% AMI 6. Construction Schedule: Commence construction of each Phase by the Commencement Date, and substantially complete construction of each Phase by the Completion Date as set forth below. For the purpose hereof, “Commence” shall mean beginning of physical improvement to the Property for the respective Phase, including excavation, or footings and in the case of Phase I, mass grading other physical site preparation work. “Complete” shall mean that the Minimum Improvements are sufficiently complete for the issuance of a Certificate of Occupancy. DOCSOPEN\HP145\47\764014.v6-12/2/21 Phase Commencement Date Completion Date Phase IA – Building C December 31, 2022 June 30, 2025 Phase IB December 31, 2023 June 30, 2026 Phase IC - Building B December 31, 2024 June 30, 2027 Phase ID December 31, 2023 June 30, 2026 Phase IIA – Building A December 31, 2025 June 30, 2028 Phase IIB – Building D December 31, 2022 June 30, 2025 The Developer and the Authority agree that the dates for each Phase of the construction schedule may be revised based upon timing of actual construction schedules, financing, market conditions, etc. Revisions to the dates of each Phase of the construction schedule shall not require approval or further action by the Authority and may be approved administratively by staff and legal counsel, so long as such revisions are no more than 18 months from each Phase of the construction schedule as noted above. Any revision to the dates beyond 18 months for each Phase in the construction schedule shall require renegotiation between the parties. 7. Affordability Covenants Phase IC – Building B: Developer covenants to make at least 10% of the Phase IC – Building B units constructed to be “affordable” and agrees that they are subject to the following affordability covenants: (a) Twelve (12) cooperative Housing Units (the “Affordable Housing Units”) must be initially sold (as a membership interest in the cooperative) to owner-occupants with household income not to 60% ($62,940) of the Minneapolis-St. Paul metropolitan statistical area (the “Metro Area”) median income for the calendar year in which the Developer receives a certificate of occupancy. The Affordable Housing Units will be equally distributed throughout the building and floors. Each owner- occupant of the Affordable Housing Units will be required to pay a pro rata share of ongoing operating expenses of the cooperative. Future transfers of the Affordable Housing Units (or the membership interests in the cooperative representing the Affordable Housing Units) will be restricted to maintain the ability of future buyers to purchase the Affordable Housing Units at affordable prices for thirty (30) years following the first purchase of each of the Affordable Housing Units pursuant to the Affordable Housing Agreement described below. (b) Upon or before closing on the initial sale of each affordable Housing Unit to any person, the Developer shall deliver or cause to be delivered written evidence satisfactory to the Authority of compliance with the covenants. Such evidence shall include, at a minimum, a fully executed purchase agreement and certificate of real estate value, certification by the buyer that he or she intends to occupy the Housing Unit, and evidence of the buyer’s household income determined in accordance with Metropolitan Council’s affordability limits for ownership; provided that income shall be determined as of the date of application for acquisition financing. (c) The Authority and its representatives shall have the right at all reasonable times while the covenants are in effect, after reasonable notice to inspect, examine and copy all books and records of the Developer and its successors and assigns relating to the covenants. (d) The Developer shall execute with the Authority an agreement in recordable form and satisfactory to the Authority, that substantially reflects the covenants (the “Affordable Housing Agreement”) before the Developer obtains its financing. The Affordable Housing Agreement shall include reasonable reporting and monitoring requirements as necessary to ensure compliance with the covenants therein, and shall be recorded by the Developer, at its cost, against the appropriate portion DOCSOPEN\HP145\47\764014.v6-12/2/21 of the Development Property on which the subject affordable Housing Units are to be constructed. Failure to enter into, record or comply with the Affordable Housing Agreement in accordance with this Section shall be an Event of Default. If the Developer fails to comply with this Article or with the covenants of the Affordable Housing Agreement, the Developer will reimburse the Authority for any reasonable attorney fees incurred by the Authority in an effort to gain the Developer’s compliance with this Article or with the covenants of the Affordable Housing Agreement. 8. Affordability Covenants Phase IIA – Building A and IIB – Building D: Developer agrees that the Minimum Improvements are subject to the following affordability covenants: (a) The Developer expects that the Phase IIA – Building A and Phase IIB – Building D Minimum Improvements will include the mix of rental housing units as noted in the table above. These units constitute approximately 28% of the overall rental units. In addition the Developer will apply to Metropolitan Council HRA and/or Hennepin County for project based housing choice vouchers. The Developer will be required to enter into a Declaration of Restrictive Covenants that will cause the affordable restrictions to remain in effect for a thirty (30) year period. On the date of execution of the TIF Agreement, the Developer will deliver an executed Declaration to the Authority in recordable form. (b) The Developer agrees to distribute the affordable Rental Housing Units among the different Rental Housing Unit types throughout the building and floors. (c) The Developer intends to rent parking spaces in the underground garage to tenants of the Minimum Improvements for approximately $75 to $150 per parking space per month initially. The Developer agrees that the monthly rental rate charged for each underground parking space will be the same for all tenants of the applicable Phase within the Minimum Improvements. (d) During the term of the Declaration, the Developer shall not adopt any policies specifically prohibiting or excluding rental to tenants holding certificates/vouchers under Section 8 of the United States Housing Act of 1937, as amended, codified as 42 U.S.C. Sections 1401 et seq., or its successor because of such prospective tenant’s status as such a certificate/voucher holder. (e) The Developer will promptly notify the Authority if at any time during the term of the Declaration the number of Rental Housing Units in the Minimum Improvements occupied by Qualifying Tenants (as defined in the Declaration) or held vacant and available for occupancy by Qualifying Tenants pursuant to the Declaration are fewer than the number required by the terms of the Declaration. (f) The Authority and its representatives will have the right at all reasonable times during normal business hours while the covenants in this Section are in effect, after reasonable notice to inspect, examine and copy all books and records of the Developer and its successors and assigns relating to the covenants described in this Section and in the Declaration. (g) The Developer must submit evidence of tenant incomes, showing that the Phase IIA – Building A and Phase IIB – Building D Minimum Improvements meet the income requirements set forth in the Declaration by April 1st of each year. The Authority will review the submitted evidence related to the income restrictions and to the extent the thresholds are not met, the Authority will withhold the TIF payment for that time period. 9. Affordable Housing Reporting Phase IIA – Building A and IIB – Building D: At least annually, no later than April 1 of each year commencing on the April 1 first following the issuance of the DOCSOPEN\HP145\47\764014.v6-12/2/21 Certificate of Completion for the applicable Phase Minimum Improvements, the Developer shall provide a report to the Authority evidencing that the Developer complied with the income affordability covenants during the previous calendar year. The income affordability reporting shall be on the form entitled “Tenant Income Certification” from the Minnesota Housing Finance Agency (MHFA HTC Form 14), or if unavailable, any similar form. The Authority may require the Developer to provide additional information reasonably necessary to assess the accuracy of such certification. Unless earlier excused by the Authority, the Developer shall send affordable housing reports to the Authority until the Declaration terminates. 10. Change in Construction Plans: If the Developer desires to make any material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. The term “material” means a change in the exterior elements of the applicable Phase that affects the original character and visual preference that was approved by the City. 11. City Public Improvements: Construction of the Spine Road between Blake Road and Lake Street: The Developer shall construct the City Public Improvements by June 30, 2025, in accordance with plans and specifications approved by the City. The City may inspect the City Public Improvements as the improvements are being constructed and the Developer will dedicate the City Public Improvements to the City upon completion. 12. Homeowners’ Associations and Restrictive Covenants: The Authority acknowledges that the Developer may utilize deed restrictions, covenants, agreements, architectural controls, homeowners’ associations (HOA) and other means to control the use and to ensure the maintenance of the land within the Project. No such instruments shall adversely affect the rights of the City or Authority under this Agreement, without their consent, which consent shall not be unreasonably withheld. The Developer shall submit any such instruments to the City and Authority for their review and comment. For Phase ID (for sale town homes) the HOA documents should have a stipulation on the number of rental units allowed. The stipulation is at the discretion of the HOA and applicable laws governing HOA’s and shall be submitted to the Authority for their review and comment. 13. Maintenance: The Developer and the Authority agree that the Applicable Developer or HOA shall be responsible for all maintenance (including snow and ice removal) and repair costs associated with the Private Improvements on the Property including: • Driveways, service drives, and surface parking stalls. • Parking structure • Sidewalks • Streetlights • Landscaping • Streetscape improvements • Storm water ponding • Bicycle Parking • Plazas • Pavilion • Cascade promenade • Greenway commons Developer shall not be responsible for the maintenance and repair of the Spine Road. DOCSOPEN\HP145\47\764014.v6-12/2/21 14. Reciprocal Easement and Operating Agreement: The Developer and City will enter into a mutually acceptable reciprocal easement and operating agreement (the “REOA”) or other easement agreements to include, without limitation, the following key terms: (a) Developer and/or City responsibility for maintenance and operation of the private applicable Phase Minimum Improvements, road network, and other City Public Improvements, with such costs being allocated to and among Developer, the City and/or any other owners of applicable Phase Minimum Improvements; (b) perpetual public access easements and perpetual drainage and utility easements, in each case, over the applicable City Public Improvements and at no cost to the City; (c) perpetual license or public access easements for greenway commons, pavilion or other private areas that provide public benefit that the City and Developer deem appropriate. 15. TIF District: The City established TIF District 1-6 (325 Blake) on August 17, 2021. 16. Public Assistance: Subject to all terms and conditions of the TIF Agreement, the Authority shall provide the Developer with up to $31,900,000 in public assistance for Qualified Costs and Public Improvements noted in #11. Currently it is anticipated that approximately $3,750,000 will be from TIF Spending Plan funds from TIF District 2-11 and provided up front to pay for costs associated with the Public Improvements and some private outdoor improvements that provide a benefit to the general public as part of Phase I development. In addition, the Authority will reimburse the Developer with Tax Increment generated from the applicable Phase Minimum Improvements for the remaining amount up to a principal amount of $28,150,000 (Present Value). The HRA will complete an analysis of the applicable Phase when construction is ready to commence to determine the amount and term of the assistance to be provided to that Phase. Payments from TIF District 1- 6 (325 Blake) will be made through one or more TIF Notes (the “Notes”) issued on a pay-as-you- go basis for an applicable Phase assuming up to 95% of increment at the rate of the lesser of 4% or the Developers actual financing rate. The Notes will be issued upon completion of the Public Improvements, issuance of a CO and proof of expenditure related to the Qualified Costs for each respective Phase. At the Authority’s discretion, the parcels containing Phase IB, Phase IC – Building B and Phase ID may be decertified from the TIF district as development commences since no assistance is required for those Phases. 17. Look Back: The Authority will complete a lookback for each applicable Phase that receives TIF assistance. The lookback will be completed upon stabilization and upon potential sale of the property in the future. 18. Fees: The City acknowledges the Developer made an escrow deposit of $25,000 for out-of-pocket expenses for legal and financial consultant services related to TIF district creation, drafting, negotiation and approval of the Development Agreement, analysis, and administrative fees associated with this transaction. This includes costs related to the above incurred to date as well as future expenditures. The Developer will be required to deposit additional funds if the initial deposit is fully drawn. The Developer shall pay all other normal and customary City fees and expenses for the approval and construction of the Minimum Improvements. DOCSOPEN\HP145\47\764014.v6-12/2/21 19. Minimum Assessment Agreement: Developer and Authority will enter into a Minimum Market Value Assessment Agreement (MAA) setting a minimum property tax value for the rental portions of the various Phases as noted below: Phase Amount Date Phase IA – Building C $103,000,000 January 2, 2025 for payable 2026_ Phase IIA – Building A $22,400,000 January 2, 2026 for payable 2027 Phase IIB – Building D $51,800,000 January 2, 2025 for payable 2026 The Developer and the Authority agree that the dates for the applicable Phase MAA may be revised based upon timing of actual construction schedules. Revisions to the dates of the applicable Phase MAA and execution thereof shall not require approval or further action by the Authority and can be completed administratively by staff and legal counsel, so long as such revision is no more than 18 months from the applicable Phase MAA as noted in the above schedule. Any revisions to the dates beyond 18 months for the applicable Phase MAA shall require renegotiation between the parties. The Assessment Agreement shall terminate on the Termination Date of each TIF Note. 20. 4d Tax Classification: The Developer will be applying for 4d tax classification status for 100% of Phase IIA – Building A and 20% of the units on Phase IIB- Building D. 21. Taxes: Developer agrees for itself and its successors and assigns that prior to the end term of the Note it will not: (a) Cause a reduction in real property taxes paid; (b) Transfer the property or any Phases to an entity that would result in the Minimum Improvements being exempt from property taxes; (c) Will not seek tax exemption, deferral or abatement for the Minimum Improvements; (d) If Developer brings a petition challenging a Market Value determination exceeding the minimum value established in the Assessment Agreement, the Developer must inform the Authority of such petition. The Authority will pay principal and interest on the TIF Note only to the extent of Available Tax Increment attributable to the minimum value until final resolution of such petition. Upon resolution of Redeveloper’s tax petition, any Available Tax Increment deferred and withheld will be paid, without interest thereon, to the extent payable under the assessor’s final determination of Market Value. 22. Public Art: Developer is obligated to expend at least $250,000.00 for public artwork to be placed in a prominent location on the Property, on the exterior of the Minimum Improvements. Prior to its installation, the public artwork shall be approved by the City, which approval shall not be unreasonably withheld. The artwork shall be installed prior to issuance of the certificate of occupancy for the project. 23. Park Dedication: The Developer will pay applicable park dedication fees to the City at the time of issuance of a building permit for any applicable Phase. The City agrees that when a building permit is pulled for any Phase, the Developer’s park dedication payment (which may be required by the City in lieu of land dedication) will be calculated based on the City’s park dedication fees that are in existence as of the effective date of this Agreement and, unless otherwise agreed to by the parties DOCSOPEN\HP145\47\764014.v6-12/2/21 in the future, said payments shall be made at the time of issuance of a building permit for the applicable Phase, as the case may be. The current park dedication fee for multiple family residential subdivisions is $3,000 per unit while the commercial fee is an amount equal to five (5) percent of the fair market value of the commercial land as estimated by the county assessor. Park dedication fees are typically due with final plat approval. 24. Business Subsidy: The Developer and the Authority agree that any assistance provided to the Redeveloper under the Contract does not constitute a “business subsidy” under Minnesota Statutes because the assistance is for redevelopment. 25. Miscellaneous: (a) No transfer of Property or Development Agreement without EDA consent which will not be unreasonably withheld; (b) Developer will retain a management company with experience in the management of multifamily rental housing developments, subject to reasonable approval by the Authority; (c) Grants: The Developer has applied for Metropolitan Council TOD Grant of $1,250,000. The Authority and Developer expect to apply for Hennepin County TOD Grant funding in January and MN DEED Redevelopment Grant funding as well. These grants have been accounted for in the Developers Proforma. Any other future grants beyond these for any future applicable Phase that are received will reduce the principal amount of the TIF Note(s) for the applicable Phase; 26. Commercial Space in Phase IA – Building C and Phase IB: The intent is to create opportunities for neighborhood serving commercial apace for small business including minority owned, Hopkins displaced businesses or startups. The Authority and Developer agree to collaborate to accomplish the goal of providing at least 50% of the 17,000 square feet of Commercial Space available to these users. The outcomes of the collaboration will be outlined in a business plan approved by staff and the Developer.