Minneapolis spending $2.5 million to help relocate hundreds of residents from housing development
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The Minneapolis City Council allocated $2.5 million Thursday to help move 685 residents out of a north-side housing development riddled with mold, rats and leaky roofs.
The council’s unanimous vote followed a proposal brought forth Tuesday by city staff, Mayor Jacob Frey and Council Member Pearll Warren, who represents the neighborhood where Heritage Park is located.
The mixed-income housing development was built more than 20 years ago to replace a public housing complex torn down as a result of a housing segregation lawsuit. The housing was owned by St. Louis-based developer McCormack Baron Salazar until last December, when the court appointed a receiver — Certus Financial LLC — to take over.
The funding would go to the court-appointed receiver, as well as other agencies involved in providing resources for relocation, likely including the Red Cross, the Minneapolis Public Housing Authority and Hennepin County.
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Earlier this week, Erik Hansen, the city’s director of Community Planning and Economic Development, said the city and stakeholders will have to determine whether or not it makes sense to repair or entirely rebuild the units.
For now, Director of Emergency Management Rachel Sayre said the priority is figuring out what assistance is most pressing, as partners develop potential relocation plans.
“This is very large-scale. It is beyond the capacity of any one agency to do,” Sayre said. “There’s a lot more to come, but our immediate focus is on these urgent needs.”
The city council also voted to direct the city attorney to look into legal pathways to recoup the costs, which are coming from the city’s Affordable Housing Trust Fund.
