Here is the Resolution supporting the MOU that the MPRB Administration and Finance Committee passed 4 to 1 at the December 3, 2014 Park Board meeting. The Resolution will go to the full board on December 17 and is expected to pass. Unfortunately, it is being scheduled for approval with inadequate time for public understanding or input.
For copies of the MOU and a related document, see the links at the bottom of this post.
MPRB RESOLUTION 2014-371
Resolution Approving the Memorandum of Understanding and Lease Between the City of Minneapolis and the Minneapolis Park and Recreation Board for the Downtown East Commons
Whereas, The Minneapolis Park and Recreation Board (MPRB) was created by the Minnesota Legislature in April 1883 and has the authority to manage and operate park facilities;
Whereas, The Minneapolis Park & Recreation Board (MPRB) is the steward of Minneapolis parks;
Whereas, In December 2013 the City of Minneapolis approved the Downtown East Development which included a two block parcel with 1 full block and 2/3 of the second block designated a public park near the new Vikings Stadium with specified terms;
Whereas, An Urban Park Use Agreement was executed in February 2014 between Ryan Companies and the Minnesota Sports Facilities Authority (MSFA) based on the terms agreed to by the City of Minneapolis in December 2013;
Whereas, The term of the agreement is for 30 years plus an additional 20 years or 50 years and coincides with the Stadium Use Agreement between the Vikings and the MSFA;
Whereas, This public park is part of a 5 block mixed-use project that will include office space, a parking ramp, multi-family housing, retail space, skyway connections and a park/plaza/open space and Ryan Companies has agreed to convey the portion of the development that is legally described as “Urban Park” to the City or to its designee;
Whereas, The City has agreed to accept a conveyance of the Urban Park (or its designee to accept a conveyance of the Urban Park), subject to the use rights granted to MSFA and other terms and conditions set forth in the Urban Park Use Agreement;
Whereas, The MPRB did a thorough analysis of the Urban Park Use Agreement, and as a result of the analysis of the agreement, the MPRB, as the operator, would face conflicts with existing MPRB permitting policies, and would face significant financial challenges in finding development and operations funding that would not negatively affect all other existing park priorities especially in racially diverse underserved areas;
Whereas, The MPRB analysis estimated Turnkey (basic park) development at $6,000,000 and complete development of the enhanced park at$20,000,000;
Whereas, Turnkey operating and maintenance costs would be close to $500,000 annually, with annual operating and maintenance costs for the enhanced park running between $2,000,000 and $3,000,000;
Whereas, Conflicts with park permitting policies; limited opportunities for the MPRB to generate revenue to assist with the development, operation, and maintenance costs for the park; the MPRB does not believe it is in the best interest of the public or the MPRB to be involved in developing the park or serving as the Operator of the park at this time;
Whereas, On August 6, 2014 the Board of Commissioners resolved that with the current Urban Park Use Agreement in place, with prior control given to both the MFSA and the Vikings, does not allow this space to truly qualify as a public park;
Whereas, On August 6, 2014 the Board of Commissioners determined that the Minneapolis Park & Recreation Board will not be involved in the development, maintenance or operation of the “Downtown East Urban Park” given that at this time 1) there is no funding for the development and annual operating and maintenance costs that does not supplant development, operations, or maintenance funding for other MPRB properties currently under the authority of the MPRB, 2) there is no opportunity to generate enough income to fund development and annual operating and maintenance costs under the Urban Park Use Agreement terms, and 3) the same terms preclude the space from following MPRB permitting policies;
Whereas, On August 6, 2014 the Board of Commissioners released the City from further discussion with the MPRB regarding ownership and operation of the space;
Whereas, The City is now referring to the “Urban Park” as the Downtown East Commons;
Whereas, The City requested that the MPRB enter into a Memorandum of Understanding (MOU) and lease with the City to establish a framework for how the City and MPRB will cooperate in the ownership and operation of the Property, which could include a third party conservancy, in order to promote the public interest and ensure compliance with state law and the City Charter; and
Whereas, The Park Board President, Superintendent and legal counsel, and City staff drafted the attached Memorandum of Understanding and lease for Downtown East Commons;
RESOLVED, That the Board of Commissioners approve the Memorandum of Understanding and lease between the City of the Minneapolis and the Minneapolis Park and Recreation Board for the Downtown East Commons; and
RESOLVED, That the President of the Board and Secretary to the Board are authorized to take all necessary administrative actions to implement this resolution.
The MOU can be accessed at this link:
http://minneapolisparksmn.iqm2.com/Citizens/FileOpen.aspx?Type=4&ID=2839&MeetingID=1445
The link below leads to an Urban Parks Agreement between the City and MPRB, signed last February. The MOU refers to the Urban Parks Agreement:
http://minneapolisparksmn.iqm2.com/Citizens/FileOpen.aspx?Type=4&ID=2840&MeetingID=1445
