Brooklyn Park Prevailing Wage Vote Described As ‘Momentous Occasion’
The Brooklyn Park City Council gave final approval Monday night to a prevailing wage ordinance, a vote that drew standing applause in the council chamber.
Labor union workers wearing orange shirts sat in the front row in support of the decision.
Brooklyn Park City Council member Tony McGarvey described the vote as a “momentous occasion.”
A prevailing wage sets wages and benefit rates based on market conditions for publicly-funded projects.
Zach Kramka, assistant to the city manager, said there is potential to increase the cost of projects by 10 to 20 percent, citing discussions with other cities and members of the development community.
McGarvey said he doesn’t believe that will happen, pointing to a 2018 study that showed a prevailing wage ordinance had little to no impact on the cost of construction projects.
“The reality is prevailing wage laws foster middle-class careers that attract talented young workers to the construction trade, which is especially important now as the baby boomers begin to retire or continue to retire at 12,000 a day,” said McGarvey.
“This is without a doubt the right thing to do,” said Brooklyn Park City Council member XP Lee, who supported the ordinance in a 5-0 vote.
Affordable Housing Project To Include Prevailing Wage
An affordable housing project, meanwhile, will serve as a sort of test of the prevailing wage requirement.
Decatur Landing, a 350-unit affordable apartment development, includes a prevailing wage agreement with Brooklyn Park’s Economic Development Authority for phase two of the project.
Phase one of construction is underway at the southwest corner of Highways 169 and 610. The development by St. Paul-based Real Estate Equities and St. Paul-based Big-D Midwest will feature two 5-story buildings with 175 units each.
The project, which has been in the works since 2021, will offer one-, two- and three-bedroom units to residents at 30 percent, 60 percent and 70 percent of area median income (AMI) or below. Eighty percent of the units will be at 60 percent AMI.
Phase two of construction is expected to start in mid-June, according to Sarah Abe, Brooklyn Park’s development project coordinator. Phase one is expected to be ready for occupancy in fall 2025.