‘Step-Up’ Multifamily Housing Project Moves Forward in Brooklyn Park

A Brooklyn Park multifamily housing project is taking a step forward.

The Brooklyn Park Economic Development Authority (EDA), which is composed of city council members, approved at its June 15 meeting a preliminary term sheet that helps finance apartments on land owned by the EDA.

The project, called the Welcome West apartments, is located at 7621 Brooklyn Blvd.

St. Paul-based JO Cos., owned by Johnny Opara, is the developer behind the effort.

Welcome West would be a 4-story building with 100 units that include a mix of one-, two-, three-, and four-bedroom apartments. According to city documents, the apartments would be considered affordable, with every unit serving residents who make 60 percent of area median income (AMI).

“I think there is often a mixed understanding of what affordable means in the general public,” said Brooklyn Park City Council Member and EDA Commissioner Christian Eriksen at the June 15 meeting. “Sixty percent of AMI income is the rookie teacher, the rookie firefighter, the folks who are taking care of our loved ones in nursing homes, the people who are driving our children on school buses everyday.”

The 60 percent AMI rental rate is higher than other older apartments in the area.

Rent at many complexes in the neighborhood range from 45 to 55 percent AMI.

However, that’s typically not due to any financial subsidy.

Rather, the market rate for older nearby complexes, like Fountains in the Park, Ridgebrook Apartments, Moonraker Apartments, and Noma One (the former Huntington Place Apartments) tend to be low. All of those are older apartments built in the late 1960s and are considered naturally occurring affordable housing.

The development site situated at the intersection of Brooklyn Boulevard and Welcome Avenue has been considered for apartments for nearly a decade. One proposal by former NBA player and local housing developer Devean George never moved forward due to rising construction costs and financing challenges.

Rendering of Welcome West apartments/courtesy city documents and JO Cos.

‘Step-Up’ Housing

The Welcome West apartment project would bring something new to the table, which has city leaders optimistic about the project. Officials mentioned how JO Cos. is local and is committed to building quality housing.

City leaders described the project as “step-up” housing for the area.

“I do hear a lot of times that we need more step-up apartments within that region off of Brooklyn Boulevard,” said Mayor Hollies Winston at the June 15 EDA meeting. “For people to move from the one-bedroom to two to three and four bedrooms, I think that is a specific need.”

JO Cos. requested $1.1 million in tax assistance from the city ($575,000 in a land write-down and $525,000 in tax-increment financing). The total development cost is roughly $41 million, financed predominantly by conventional loans and tax credit subsidies.

The preliminary term sheet approved at Monday’s EDA meeting is a non-binding agreement for the city and sets parameters for negotiation, explained Tim Gladhill, Brooklyn Park’s community development director.

“It gives us confidence we can negotiate within these guardrails,” said Gladhill.

JO Cos. also developed Wangstad Commons, a 54-unit affordable housing development in Brooklyn Center. 

Construction for Welcome West is tentatively planned for next spring with a 12 to 18-month construction schedule.

Related: Affordable Housing Proposed for Brooklyn Park Development Site

Brooklyn Park