CURA Report 

Northwest Community Revitalization Corporation (NCRC) is a nonprofit specializing in affordable home ownership in the northwest first tier suburbs of Hennepin County, Minnesota.  The Northwest Hennepin Human Services Council formed NCRC in 1992 as a Community Housing Development Organization, or CHDO.

Four cities are currently served by NCRC:  Robbinsdale, New Hope, Brooklyn Park and Maple Grove.  Communities served in the past but no longer active are Brooklyn Center and Crystal.  There are nine other cities in the service area that are eligible to participate in NCRC programs.  NCRC also works in collaboration with Hennepin County, the Minnesota Housing Finance Agency, and others to assist lower income workers in purchasing a home within the same city as their employment.

The cities in the service area have been overwhelmingly Caucasian until very recently.  Many still are.  However, increasing numbers of non-Caucasian residents in some parts of some of the cities reflect changes in employment patterns and in in-migration within the service area.

Maps showing land uses in 2000 were produced for all four current client cities using the same set of medium-specific land uses. This was done to allow analysis of all four cities using the same data while avoiding the differences in terminology among zoning districts in each city. The proximity of amenities is of interest to residents and workers in each city. Items analyzed with land uses include ‘park and ride’ lots primarily used by downtown Minneapolis workers, bus stops and routes for local and commuter travel, and the location of shopping areas. The availability of public transit and nearby shopping has a large impact on residents’ mobility and employment opportunities.

In its 15th year, NCRC is reviewing its past and planning for a productive future. NCRC provides a vital service in maintaining the health of employment and housing opportunities in its service area, a service which can be expanded among the existing client cities and into the other cities in the service area.

BACKGROUND: NCRC AND ITS CLIENTS

NCRC serves households earning no more than 80% of area median income – this is not a low-income housing program. The client population is wonderfully diverse, but a few generalizations are possible.

Most clients already live in the city where they purchase a home, and if not, they work in that city or their children attend those schools. In the past year, clients have been Hispanic, European -American, African-American, African immigrants, Russian immigrants, and others.

By far the largest proportion of Heads of Household reflect the national demographic for new home purchasers. They are single women, often with children, who are stable employees in “pink collar” jobs – administration, education, medical/dental services, and retail management. They have histories of stable employment and housing, little debt, and glowing reports from employers.

For most, the homes they can purchase through NCRC are their only opportunity to own a home. Most are seeking specifically the type of house and the specific area where the house is sited. The program provides a good mechanism to make those matches happen.

Cities in the service area covered by NCRC can participate in the program at several levels which the city can determine.

NCRC has a small staff and its budget is primarily earned income that results from member dues, and fees from marketing and developing affordable housing.

Existing Conditions

Robbinsdale

The City of Robbinsdale has a population of 14,500 and is a built-out, first-tier suburb bordering northern Minneapolis. The city has one park and ride lot within its boundaries located at Faith-Lilac Way Lutheran Church on 42nd Avenue North. Metro Transit has bus service within Robbinsdale linking commercial and health care facilities with the central housing areas. Service connections are available to Minneapolis, Crystal, and Brooklyn Center. The city is predominately comprised of residential lots with the majority being single-family detached housing. Single-family residential R-1 lots have a minimum lot size requirement of 50 feet wide and 6,000 square feet in area. Existing lots of at least 40 by 120 feet may be built on as they have been grandfathered into the current zoning ordinance (City of Robbinsdale). Single-family attached housing exists in Robbinsdale, but the units are mostly scattered in small clusters predominately in the western and southern portions of the city. Six lakes and sixteen parks exist in whole or in part in the city and these natural features positively affect housing values and the quality of life of residents.

Robbinsdale has shopping areas along Hennepin County 81 (CR-81) and institutional land uses are scattered throughout the city with major areas on the east side of Minnesota Highway 100 (MN-100). The major employer within city limits and non-residential land use is North Memorial Medical Center. There is very little undeveloped land within the city and most of this acreage is adjacent to parks or MN-100.

New Hope

The City of New Hope is similar to Robbinsdale in that it is an older, built-out, inner-ring suburb. The city has a population of 20,900 and is two suburbs out from Minneapolis. No park and ride facilities are located within the municipality. Metro Transit provides local route bus service along major roads such as Boone and Winnetka Avenues and connections to Minneapolis, Brooklyn Park, Crystal, and Golden Valley. Housing is the dominant land use in New Hope with single-family detached houses the majority of the housing stock. There are attached single-family and multifamily areas scattered throughout the city. Three lakes and eighteen parks are scattered throughout the city as natural and recreational amenities for residents and businesses. Industrial/Utility and institutional land uses comprise a significant portion of the city with commercial uses scattered throughout. The city has very little undeveloped land. Major shopping areas can be found along U.S. Highway 169 (US-169) and the major north-south road, Winnetka Avenue. This mix of housing and commercial/industrial uses provides a good opportunity for a strong jobs/housing balance.

Brooklyn Park

Brooklyn Park is an outer ring suburb located north of Minneapolis. Brooklyn Park is not contiguous with Minneapolis and has a mixture of older neighborhoods and new developments. Unlike Robbinsdale and New Hope, the city is still expanding in population and developed acreage. 68,600 people call Brooklyn Park home and there is a mix of residential, commercial/industrial, and agricultural land in the city (City of Brooklyn Park). There are five park and ride lots including two along major highways. One of these lots is located at the intersection of US-169 and CR-81 and the other is at Minnesota 252 and 73rd Avenue. Local bus service is provided within the older residential areas with routes through the commercial and industrial sectors of town. Service connections are available to Minneapolis, Champlin, Osseo, Maple Grove, Brooklyn Center, and New Hope. The predominant use of land is for attached, single family homes. Single-family detached areas and multi-family units are scattered throughout the city. At least twenty-one lakes and wetlands exist and the entire eastern municipal boundary is the Mississippi River. Five islands in the Mississippi are administered by the city with four of them being parkland. One park along the Mississippi River, Coon Rapids Dam Regional Park, is administered by Three Rivers Park District, which serves as the Hennepin County park system. Outside of the islands, at least fifty parks exist for public use or green space. The northern and northwestern portions of Brooklyn Park consist largely of agricultural and undeveloped land. All the parks and water features provide residents with many outdoor recreational opportunities and a good quality of life. The northern portion of the Crystal Airport is located in the southeast corner of the city and this provides recreational and business air service for the community. The upcoming expansion of Target headquarters in the northern section of Brooklyn Park will convert some of the undeveloped and agricultural land and provide a mix of employment, housing, and shopping in a new town center. The city is well served with transportation routes including major interstate, U.S., and Minnesota highways and the regional airport. Local shopping opportunities are located in the southern section of town along Boone Avenue, on CR-81 and Brooklyn Boulevard in the established western sector, and the center of town along 85th Avenue. This assortment of shopping destinations is almost entirely on bus lines and provides the opportunity to take care of daily needs within the community.

Maple Grove

Maple Grove is a growing northwestern, noncontiguous, outer ring suburb of Minneapolis with 59,800 inhabitants. A mix of land uses exists within the city with single-family residences a slim majority. A fair amount of agricultural land exists in the northwestern and southeastern corners of the city where municipal sewer lines are not available at this time. Maple Grove is in the middle of a building boom and has a strong local economy and large contingent of Minneapolis commuters. The city is served by six park and rides scattered throughout the city and one transit center located adjacent to the Shoppes at Arbor Lakes at the convergence of Interstate 94 and Interstate-494. Bus stops and local routes are available in the central, northeastern, and southeastern portions of the city that are predominately residential in nature. Bus service connections are available to Minneapolis, Brooklyn Park and Plymouth. Maple Grove Transit is a citywide transit service that provides dial-a-ride service within the incorporated city limits.

Maple Grove has four major shopping areas in the city. The Arbor Lakes and Main Street area shopping districts are located at the junction of Interstate 94 and Interstate 494, Bass Lake Center at Bass Lake Road and I-494 on the City of Plymouth border, Dunkirk Shopping Center at the 95th Avenue exit of I-94, and the fourth major area is along County Road 81 around the western edge of the City of Osseo. A variety of employers exist in the city with the anticipation of a new hospital complex near I-94 off CR-81 and near the proposed Minnesota 610 expansion and interchange with I-94. This hospital will create an additional need for housing in the northern section of town. A significant amount of undeveloped acreage exists in the surrounding area and to the east of the Arbor Lakes and Main Street commercial area where extractive aggregate mining is taking place prior to conversion of the land to developed uses. The city has more than 42 lakes and water bodies and more than 41 medium and large parks and reserves within the city limits. The largest park in Maple Grove is the southern section of Elm Creek Park Reserve that extends north into the City of Dayton. Three parks within Maple Grove are governed by Three Rivers Park District: Elm Creek Park Reserve, Fish Lake Regional Park in the southern section of the city, and Eagle Lake Regional Park in the southeastern section.

Client City Changes

While the U.S. Census provides useful data on current client cities that can be analyzed, mapped, and compared, its helpfulness is limited due to its age. Things have changed in the four cities since 2000, and the most updated information available was utilized. Using maps generated from data provided by the Metropolitan Council, land use changes from 1997 to 2005 have been analyzed to help assess the availability of residential areas and overall housing stock.

Robbinsdale

The City of Robbinsdale has seen very little change in land uses from ten years ago given its built-out character. The changes that have occurred have been incremental and usually involve zoning or use changes for a single parcel or small collection of lots. Little alteration has been made to Robbinsdale’s balance of uses, location, and composition of housing stock. North Memorial Medical Center has remained the major employer in the city and this contributes to a continued need for housing in the vicinity. Robbinsdale has seen an eight percent increase in median earnings over the past five years, to $52,300. The cost to purchase a home has increased 58% to $191,700 over the same period of time (City of Robbinsdale).

New Hope

The City of New Hope has experienced the same phenomenon as Robbinsdale. The distribution of land uses and city zoning have not changed much within the city limits over the past decade while the economic development and housing emphasis has centered on redeveloping commercial and multi-family housing options while maintaining existing residential portions of the city. The city maintains large tracts of industrial acreage in the southeastern part of the city and along the rail lines and spurs south of the U.S. 169 and Bass Lake Road interchange. The location near major freeways and rail lines has kept the industrial base of the city and the abundance of housing has provided the potential for a good live-work balance for New Hope and the surrounding cities. Median income and housing have both risen in the last five years with income going up eight percent to $50,700 and housing costs jumping 58 % to $234,000 (City of New Hope).

Brooklyn Park

The City of Brooklyn Park is a mix of older, established housing and commercial areas in the south combined with newer residential expansion in the central and northeastern portions of the community. Land uses in the southern half of the municipality have remained largely unchanged over the last ten years as this part was built-out. Residential development has expanded to encompass former agricultural and undeveloped acreage in the central and northeastern sections. The northwest corner of Brooklyn Park has remained largely undeveloped to date but this will soon change with the construction of the new campus of Target Corporation. A decade ago this land was largely agricultural in use and now over twenty-five percent of the acres have been taken out of production to await development. The creation of the Target complex and housing needed for its workers will consume large portions of this area and demand for additional housing and commercial development will occur. Target Corporation is planning on adding 3,000 housing units for the estimated 16,000 workers at the new facility. The planned expansion will link with the current section of Minnesota Highway 610 with a future connection to I-94 located in Maple Grove. Residents have had a harder time affording a house and being to live and work in Brooklyn Park with a two percent decline in median income to $55,500 during the last five year period and a 59 % increase in median housing costs to $223,000. Ten percent of residents are considered to be living in poverty (City of Brooklyn Park).

Maple Grove

The City of Maple Grove has experienced a tremendous growth surge over the past decade. Established neighborhoods have remained desired places to live and new neighborhoods have been developed as sewer service has become available to meet the demand for housing in this city from incoming residents. The southeastern sector bordered by Interstates 494 and 94 has remained stable with some new business and residential development bordering the freeways. Residential development has been heaviest in the western and southwestern portions of Maple Grove. The influx of new residents and convenient location at the junction of two major interstates has prompted the expansion of commercial, retail, and business areas. The two areas most affected by commercial growth is the new retail hub at the Interstate 94 and 95th Avenue interchange anchored by Sam’s Club, the first metro Wal-Mart Supercenter, and a relocated Hennepin County service center. The second area is an expansion of the retail offerings along Elm Creek Boulevard at the convergence point of the two interstates. This area is expanding to the east as new, level ground becomes available following the extraction of sand from area hills. This extractive service creates rare new land for building in a previously built-up area with full utility and urban service connections. Development here provides the opportunity to redirect some construction from the urban fringe and the chance to create a mixed-use area where residents could live, work, shop, and play within a couple of square miles. Many new service sector and ancillary service employment opportunities have been created from commercial and housing creation, but the divergence between wages and the cost of living has skyrocketed. The ability of local workers, especially those households earning less than the median income of $82,000, to reside in Maple Grove has diminished as the median wage has increased 8% while the cost of home ownership has increased 58% to $265,900 during the past five years (City of Maple Grove).

Service Expansion Potential

Northwest Community Revitalization Corporation (NCRC) has the potential to expand its service locations within the area served by Northwest Hennepin Human Services Council. There are fifteen independent communities located within this geographic area. The four cities currently partnered with NCRC have differing levels of involvement. Involvement ranges from new construction, to rehabilitating rentals for sale, to rental properties exclusively. The organization will participate in any capacity from reviewing applications through closing procedures for new home owners. The remaining twelve communities that are available for expansion of NCRC’s housing programs are the cities of Golden Valley, Plymouth, Medicine Lake, Crystal, Brooklyn Center, Osseo, Corcoran, Hanover, Rogers, Dayton, and Champlin along with Hassan Township. Each of these cities has differing needs for lower-income housing opportunities for local area workers. By analyzing demographic trends, certain “areas of concern” become apparent. Cities were analyzed by census tract and area information. Expansion of NCRC programs and covered communities will be decided by the individual government staffs and representatives with potential target areas outlined below.

Golden Valley

The City of Golden Valley is predominantly Caucasian and residential. There are viable commercial and industrial areas making the possibility of living and working in the same city feasible. The proximity to Minneapolis allows greater opportunities for employment for city residents. City census tracts have poverty levels ranging from under 100 persons up to 400. Poverty levels are highest in the north-central tract and housing ownership opportunities should be focused in this area first.

Plymouth

The City of Plymouth is also predominantly Caucasian with a good mix of residential, commercial, and industrial activity. This city has a high cost of living and many lower paid service employment positions. The ratio between residential availability and employment opportunities allows a good jobs-housing balance within the municipality. The areas with greater poverty levels are located in the older portions of the city in the southwest and southeast tracts. The northwestern portion of the city remains largely rural with a lower need for off-site employment assistance. The southeast area should be looked at first followed by the southwest tracts.

Medicine Lake

The City of Medicine Lake is a small, residential community located within the City of Plymouth. The city is mostly Caucasian, upper income, and does not have any viable commercial or industrial activity. Assistance for worker housing in this community is not viable at this time as workers can live in surrounding Plymouth and properties are available with lower costs of living and ownership.

Crystal

The City of Crystal used to participate in NCRC’s housing program and the city has a continued need for those services. Crystal remains majority Caucasian with varying levels of poverty. The areas of greatest concern are in the northeast area bordering high concentrations of poverty in Brooklyn Center and Brooklyn Park and in the south-central tracts. Crystal has some employment base for local workers and further assistance with housing options for these workers will benefit the community greatly. Both the northeast and south-central tracts should be focused on first for improved housing options.

Brooklyn Center

The City of Brooklyn Center is experiencing a crunch with housing. While there is a good amount of units, quality ones for purchase or rent are harder to come by. This city has great need for affordability programs and home ownership to stem the tide of property owners moving out. The city has high rates of poverty in many tracts and the largest minority population among service region cities not currently served by NCRC. The areas of greatest concern that should be addressed first include the northeast section at the junctures of Minnesota 100, Interstate 94, and Minnesota 252. The other residential areas should all be addressed as there are many employment opportunities within the city and a good jobs-housing balance could be achieved with stable workers and families either owning or renting their home and remaining in the city in which they are employed.

Osseo

The City of Osseo is a smaller, middle income community with established neighborhoods and commercial areas and some new development. The city does not have high levels of poverty but the cost of living is still high for many residents. The city as a whole should be considered for expanded service offered by NCRC to improve the ability of residents to afford their own home as home ownership will continue to keep this community strong.

Corcoran

The City of Corcoran is a large, mostly rural agricultural and residential community in western Hennepin County. The city is just beginning to see some development and does not have high levels of poverty or minority residents. The city as a whole should consider establishing a housing program prior to an increase in new residential development.

Hanover

Hanover is a small, mostly residential community with part of the city located in Wright County. The community in general is mostly Caucasian and the amount of poverty is lower than other area cities. Housing program expansions should be considered to ensure that the local workers are able to own their home if desired and to ensure better affordability if the city were to see any substantial growth in the future.

Rogers

The City of Rogers is a rapidly expanding community near the northwestern edge of the county. With prodigious growth in the last two decades has come an increase in housing prices for area workers. This city has lower costs for housing than other suburbs, but the near build-out of the city has required further expansion to be accommodated through annexation of Hassan Township land to the east. With a large number of service establishments and relocated or expanded companies in the area, demand for affordable area housing for these workers needs to be addressed. Affordable home ownership opportunities need to be created and maintained as this region continues to see large growth amounts.

Dayton

The City of Dayton is currently mostly rural with scattered developments and a denser downtown area at the old city site. Dayton will see a large amount of growth beginning in 2007 as municipal sewer service is extended to a greater amount of the city. Developers are already working on higher-income housing areas for commuter employees and this city makeup means few jobs are currently available for residents. The expansion of industrial activity in the southwest corner of the city will provide more employment opportunities and new local and commuting workers will mean a greater demand for quality affordable housing. Current housing available to lower income workers consists of a mobile home park at the convergence of County Road 81 and County Road 13/Brockton Lane in the southwest corner. This mobile home park borders the new industrial areas and is on the Hassan boundary. While cheaper living is available to Dayton and Hassan workers, it is neither permanent or of high quality. The Old Village residential area is at the junction of County Road 12 and County Road 13 at the Otsego border. As the old town site, development is denser and older and property prices are lower than other parts of the city. These areas provide affordable housing for residents, but much of it is not of good quality. Housing programs in Dayton should focus on providing home ownership for residents who currently cannot afford it and provide affordable options for new residents as development occurs.

Champlin

The City of Champlin is mostly built-out and has varying degrees of poverty. The southern and western areas of the city have higher poverty levels and the southwest corner has the greatest amount of persons living below the poverty level. With a large influx of commercial and industrial activity, many workers are able to live in Champlin. The ability of these workers to afford decent accommodations needs to be addressed. Any program should begin with the southwest tract and work north and east.

Hassan Township

Hassan Township is rural in nature but it is experiencing a surge in high-end homes. Any person who wishes to live in the township and purchase a new home must be able to afford $500,000 plus. The lack of employment within the township precludes some expansion by NCRC, but the availability of work in Rogers and upcoming expansion in Dayton should be considered to ensure enough local area workers are able to find housing they can afford within the local area including Hassan Township.

Bibliography

Brooklyn Park, City of. March 2007.

Maple Grove, City of. March 2007.

Metro GIS DataFinder. Metropolitan Council. February 2007. <metrogis.org>.

New Hope, City of. March 2007.

Robbinsdale, City of. March 2007.

Target Corporation. April 2007.

Three Rivers Park District. Park Guide. January 2007. Plymouth, MN