Lessons Learned

"The two-block redevelopment of Portland Place creates its own market. With this size project (Phase I and II), you can get past the tipping point to transform a neighborhood—turn the neighborhood around," observes Chris Wilson, PPL's director of real estate. The ripple effect resulted in people caring about and improving lots and homes throughout the neighborhood.

Wilson notes that this area has seen the highest property value appreciation in the state while a mix of price controls ensures a diversity of income and demographics in the




Buyer Equity (down payments) $213,000 Grants

Minneapolis Community Development Agency $2,280,000

HUD EDI Grant and Section 108 $760,000

Minnesota HFA/CRF Grant $400,000

Metropolitan Council $250,000

Family Housing Fund $400,000

Honeywell Grant and TIF Grant $3,085,940

Fannie Mae Foundation $75,000


Minneapolis Foundation (0% loan, deferred to closing) $200,000 Greater Minneapolis Metropolitan Housing

Corp (0% loan, deferred to closing) $171,000 40 Mortgages with Conventional Lenders

Total Sources


community. Wilson says he doesn't worry about gentrifica-tion. "Things were so bad here at the time, our development team and Honeywell thought we'd be lucky to just sell the homes in this high-crime area." By the end of 1999, however, 30 units had been built and sold to a wide variety of buyers. Sixty-five percent of the new owners had incomes at or below 80 percent of the area median income, and 80 percent came from Minneapolis neighborhoods. One-third of all buyers were African American; one-third were Caucasian; and one-third included a diverse mix of Hispanic, Native American, Asian, East African, and Middle Eastern, reflective of the neighborhood diversity.

Architect Rick Carter of LHB is very happy with the way the project turned out and about his firm's commitment to green building. "All we do now are green projects and we now use the new LEED [Leadership in Energy and Environmental Design standards] for homes as a guide," Carter remarked. "People come to us now for green design."

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