Riverside Plaza

1600 South 6th Street
Minneapolis, MN 55454

Call: 612-337-2682


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Riverside Plaza Rehabilitation Details

Description: Riverside Plaza Stabilization and Rehabilitation

Location: 1525 South 4th St. generally bounded by Cedar Ave., S. 4th St., 15th Ave. S., and S. 6th St.

Status: The project financing closing was completed on January 5, 2011. Construction commencement anticipated to occur in February, 2011.

Riverside Plaza History: Designed by architect Ralph Rapson, construction of the 11-building campus was completed in 1973 in the middle of the superblock bounded by Cedar Ave., S. 4th St., 15th Ave. S., and S. 6th St. This unique property remains the largest affordable housing development in the state, functioning as a neighborhood with 1,303 mixed income units housing approximately 4,440 individuals. The campus also has a K-8 charter school, grocery store, and a tenant resource center with various formal and informal social services such as a computer lab and job training supporting over 400 individuals per month.

Project Scope and Objectives: The habitability of Riverside Plaza was at risk because the design lifespan of the major mechanical systems for these buildings had expired and consequently these systems, especially the water and sewer piping systems, boilers and cooling systems, were failing. There are seven broad categories of improvements included in the rehabilitation scope for Riverside Plaza: Mechanical work, energy efficiency improvements, parking ramp and plaza deck improvements, site improvements for safety and circulation enhancements, building exterior improvements, common area interior work, and apartment unit interior work.

Additional objectives of the project include:

1. Local jobs: This project is estimated to create over 200 construction jobs over two years. 90 of those jobs will initially be for residents in Riverside Plaza and the surrounding Minneapolis neighborhoods.

2. Green: This project reduces the project’s carbon footprint by reducing utility usage. Xcel and CenterPoint together are rebating approximately $400,000 through 19 rebate programs due to energy efficiency improvements.

3. Improves public safety: Improvements to security, lighting, sidewalks, signage and way-finding will compliment new security cameras. The developer is partnering with the City, the West Bank Community Coalition and Riverside Plaza Tenant Association to implement Safe Zone tactics such as a safety center, court watch and community prosecution.

4. Long term resident support: The developer will provide the Riverside Plaza Tenant Association with up to $4.5M through 2041 for tenant advocacy and related services subject to HUD surplus cash requirements.

5. Preserves affordable housing along transit: Extending the useful lifespan of this campus preserves affordable housing for over 4000 residents in close proximity to the existing Hiawatha LRT line and the planned Central Corridor LRT line.

6. Improves property aesthetics: The project includes painting, landscaping, new window dressings, new trash enclosures, new generator screens, sidewalk repair and parking resurfacing.

7. Heritage preservation: This renovation preserves a property designed by a notable Minnesota architect, Ralph Rapson, and was developed under HUD’s unique New Town in Town initiative, which was one component of the federal Title VII New Communities program. On December 28, 2010, the Riverside Plaza campus was listed on the National Register of Historic Places for the property’s significance in the history architecture, community planning and development.

8. Leverages outside investment: The total scope of the project including the debt restructuring and construction has attracted over $116 million of private investment and nearly $16 million of public investment to the City. Approximately 88% of the project is funded with private equity.

Riverside Plaza Development Agreement: The City also negotiated a development agreement memorandum of understanding (MOU) with a workforce plan that addresses the project scope and objectives described above. View the final version of the MOU.

Schedule: Two-year construction period starting on February 1, 2011.

Budget and Funding Partners: $62 million construction cost, $132 million including the debt restructuring.

 

RIVERSIDE PLAZA
PROPOSED FUNDING SOURCES

Total

Public

Private

4% LIHTC Equity (bonds)

$ 29,106,637

 

$ 29,106,637

HUD-Guaranteed 1st Mortgage (bonds)

$ 49,950,000

 

$ 49,950,000

Federal Historic Tax Credits

$ 14,767,244

 

$ 14,767,244

State Historic Tax Credits

$ 14,126,603

 

$ 14,126,603

MN Housing Finance Agency EDHC

$ 7,016,350

$ 7,016,350

 

MN Housing Finance Agency PARIF

$ 5,083,650

$ 5,083,650

 

City of Minneapolis AHTF

$ 1,900,000

$ 1,900,000

 

Greater Metro Housing Corp

$ 1,300,000

$ 1,300,000

 

Met Council LHIA

$ 575,000

$ 575,000

 

Family Housing Fund

$ 200,000

 

$ 200,000

Deferred Developer Fee

$ 3,000,000

 

$ 3,000,000

Seller Equity

$ 2,000,000

 

$ 2,000,000

Cash Flow - Operations for TDC

$ 2,962,909

 

$ 2,962,909

Energy Rebates

$ 400,000

 

$ 400,000

TOTAL

$ 132,388,393.0

$ 15,875,000.0

$ 116,513,393.0

 

The City is supporting this project with the use of tax exempt housing revenue bonds and federal CDBG funds from the City’s Affordable Housing Trust Fund (AHTF). The Riverside Plaza rehabilitation and stabilization has attracted funding from several funding from other partners including Minnesota Housing Finance Agency, the Metropolitan Council, the Family Housing Fund, and the Greater Metropolitan Housing Corporation. HUD guaranteed the first mortgage under its 221(d) program, and HUD currently supports the affordable units under a 20 year Housing Assistance Program contract. Brownfield remediation funding applications are pending with Hennepin County and the Metropolitan Council.

City Contact: Matt Goldstein, AICP

 

The Information above was complled by the City of Minneapolis, Community Planning & Economic Development.
All information dispayed can be found here.



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