Lyndale condo project near ‘Y’ advances

Prima Land and the Lyndale Neighborhood Development Corporation (LNDC) have proposed building a 34-unit condo on the vacant lots at 3310-3314 Nicollet Ave. S., east of the Blaisdell YMCA.

The City Council voted to give the partnership exclusive development rights for the city-owned land. It has 12 months to work out development details and secure financing.

According to a memo from Bernadette Lynch, project coordinator for the Department of Community Planning and Economic Development:

The $5.9 million Prima/LNDC plan would have 20 one-bedroom units, approximately 800 square feet each, selling for $150,000 and 14 two-bedroom units, approximately 1,100 square feet each, selling for $200,000.

The units would be affordable to those making 80 percent of metro median income. Each unit would have one parking spot.

The LNDC/Prima Land partnership would pay fair market value for the land, $345,600. Since it is not seeking city subsidy, the city’s affordable housing policy does not apply. (The policy would require 20 percent of the units to be affordable at 50 percent of metro median income.)

The project has a small funding gap, $110,000. The developers said they would close the gap with help from the Minnesota Housing Finance Agency.

Two other developers submitted proposals. Lyndale West Partners and Welsh Construction and Partners.

The selection criteria were: developer experience, site design, collaboration with adjacent property owners, realistic budget, neighborhood recommendation and use of green construction.

A Lyndale Neighborhood Association committee supported the LNDC/Prima Land plan.

The Lyndale West proposal had an unfunded gap of $1.1 million. The Welsh proposal anticipated a $1.5 million profit but would have sold units at higher prices and did not have one parking spot for each unit.

The Minneapolis Community Development Agency acquired the lots in 1997 through tax forfeiture. The site had two apartment buildings with a total of 41 units. They were condemned and torn down.