MINNEAPOLIS— City officials have accepted a $3.7 million personal guaranty as proof of East Phillips Neighborhood Institute’s (EPNI) ability to pay its share of the $11.4 million purchase price of the Roof Depot site in south Minneapolis.
This personal guaranty met the Nov. 8 deadline outlined in the purchase agreement approved by the City Council on Sept. 7.
The sale of the site to EPNI is not yet final. The City looks forward to the State of Minnesota satisfying its commitment from May of 2023 to provide $2 million to the City as a good-faith deposit, which was due July 15, 2023. Additionally, the Legislature must provide another $5.7 million to the project in 2024 to “satisfy terms” of the $11.4 million purchase price.
If all terms of the purchase agreement are satisfied, the sale of the site is scheduled to close on or before July 15, 2024.
“We’re pleased to hear that EPNI has secured a personal guaranty for $3.7 million,” said Mayor Jacob Frey. “The deal we struck with the Minneapolis legislative delegation and EPNI back in May made clear that if the City’s water fund was repaid in full – both with specific funds from EPNI and from the State – we would sell the site. I’m happy this collaboration has seen progress, and we look forward to the Legislature securing the remaining funds next session.”
The City stated that they’re dedicated to finding a new water supply maintenance facility and will explore other locations for this project. The Minnesota Legislature has committed $4.5 million to the City for a new facility.
“Today is a good day for the city of Minneapolis and for the residents of East Phillips,” said State Rep. Samantha Sencer-Mura. “EPNI has secured the necessary funding to help purchase the Roof Depot site, and a project grounded in community, resiliency and sustainability is one step closer to coming to fruition. I look forward to continuing to champion this project at the Legislature to ensure additional funding is secured next session.”
A new campus is needed to improve working conditions for City employees and combine staff from Surface Water & Sewers, Transportation Maintenance & Repair and Fleet Services. The consolidation of these groups into a central site will improve responsiveness for residents and provide cost savings for the maintenance of our critical infrastructure and resiliency in the face of a changing climate. It will also result in a decreased response time for emergencies, such as water main breaks.