Brooklyn Center Housing Project Runs Into Financial Trouble
A controversial housing development plan in Brooklyn Center may be in jeopardy.
Developer C Alan Homes was been working since 2020 to build triplex homes on two sites along Brooklyn Boulevard.
Both sites used to be owned by the city of Brooklyn Center, but were sold to the developer. The city council initially gave the go-ahead to build the triplexes.
However, those projects stalled when the developer ran into financial issues with their lender.
Now, years later, the developer returned to the council with a request to replat both sites.
“Our development was derailed by the lender when they stopped funding our project under the guise of claiming they did not know there was infrastructure on the project,” wrote Terry Robertson, president of C Alan Homes, in a letter to the city council. “What followed was two years of litigation where we spent over $200,000 fighting to keep our development from being taken from us. We fought because we didn’t do anything to be in default. Ultimately, after a prolonged fight they agreed to give the project back to us. We are now in the process of getting it refinanced. We signed a voluntary foreclosure in order to stop the bleeding.”
It’s a request that was met with skepticism from some council members, putting both projects at risk.
“My wife and I, we’ve invested everything we have into this project,” Robertson said. “It is a big deal for us. It’s $14 million, so it’s not small potatoes.”
Yard signs protest plans to construct six triplexes in the 6900 block of Brooklyn Boulevard.
6900 Block Plans
One of the development sites, which totals less than an acre in size, is located in the 6900 block of Brooklyn Boulevard.
The development plan called for six triplexes, or 18 housing units to be built on the site.
However, the plan sat poorly with the neighborhood. Nearly two blocks worth of neighboring streets were lined with signs protesting the development.
The council rejected these plans on Monday, June 24, in a 2-2 vote.
“I don’t think that project fits well on that property so I will be voting ‘no,'” said Brooklyn Center City Council Member Dan Jerzak.
The Brooklyn Center Planning Commission previously voted 4-1 against recommending the project for approval.
Two nearly-completed triplex buildings sit in the 6000 block of Brooklyn Boulevard.
6000 Block Plans
The same developer planned to build seven triplexes in the 6000 block of Brooklyn Boulevard.
Today, two of those buildings are almost entirely constructed.
City council members said they wanted to give the developer a chance to see this project through.
“I’m anxious to see that part of the project completed,” said Brooklyn Center Mayor April Graves.
The council approved replatting this project in a 4-0 vote.
However, given the financing issues, the reapproved plat may be a moot point.
Robertson said that he his plans hinged on refinancing both the 6900 and 6000 block projects together.
When asked if he could refinance one plot without the other, he responded “I don’t think so.”
“It is a thin margin already,” he said. “We’re not trying to make a killing, otherwise we would have done it elsewhere. But we’re invested in Brooklyn Center because I grew up here … it probably would not work.”
According to city staff members, if the projects don’t get financing by August, the property will likely end up in lender’s possession.
