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HomeMy WebLinkAbout05(D) - Approve Contribution of $50,000 in Local Affordable Housing Aid funds to The Link Passageways Property Report ITEM: 5D CITY COUNCIL AGENDA REPORT MEETING DATE: September 09, 2025 PREPARED BY: Jason Wedel, City Manager PRESENTED BY: Jason Wedel AGENDA ITEM: Approve Contribution of $50,000 in Local Affordable Housing Aid funds to The Link Passageways Property RECOMMENDED ACTION: Approve the contribution of $50,000 in Local Affordable Housing Aid funds to The Link Passageway property. BACKGROUND: In 2023, the Minnesota Legislature approved new state funding for housing, including a first- ever tax dedicated to affordable housing. The new 0.25% Metro Area Sales and Use Tax for Housing provides a separate funding source called Local Affordable Housing Aid (LAHA) to cities located within the seven-county metropolitan area with a population over 10,000. The City received two payments in 2024 totaling $109,824.66 and the first payment in 2025 of $133,448.99. These funds can only be used to support affordable housing. The Link Passageways property is located at 13780 McKenna Road NW in Prior Lake. They are an emergency shelter for youth ages 12 to 17 who are victims of sex trafficking. Youth staying at this location are provided on-site supportive services which include:  Case management  Mental health therapy  Chemical dependency counseling  Education programming including on-site school  Physical health care services  Life skills training  Survivor mentor program  Positive youth development activities  Victim services for youth interacting with law enforcement  Family reunification counseling and support Their facility is aging and in need of a significant remodel. Per their attached request, they are looking to make essential upgrades to the property to ensure it can fully support the programming and services offered at the site. This includes both necessary renovations and deferred maintenance. They anticipate the completion of this work by the first quarter of 2026. FINANCIAL IMPACT: The City has contributed LAHA funds previously for the three separate phases of the Twin Cities Habitat for Humanity project located near Ponds Park on 170th Street SE. The current balance City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5D Page | 2 of LAHA funds available is $149,678.66. If this request is approved it will reduce the balance to $99,678.66. Per State Statute, LAHA funds must be spent within three years of the City's receipt or they will need to be returned to the State. ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve the contribution of $50,000 in LAHA funds to The Link Passageways per their request dated August 18, 2025. 2. Motion and second to remove this item from the consent agenda for further discussion. ATTACHMENTS: 1. The Link Passageways Funding Request The Link  1210 Glenwood Avenue  Minneapolis, MN 55405  612-388-7444  www.thelinkmn.org August 18, 2025 Mr. Jason Wedel City Manager City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 Re: Request for Local Aid Dear Mr. Wedel: Thank you for your willingness to consider financial support for The Link’s renovation of the Passageways property located at 13780 McKenna Rd. NW, Prior Lake, MN 55379, which was purchased in June 2024. This facility plays a critical role in providing a safe and stable environment for youth and young adults escaping sex trafficking. We are seeking to make essential upgrades to the property to ensure it can fully support the programming and services offered at this site. These improvements include both necessary renovations and deferred maintenance, with completion anticipated in Q1 2026. Please accept this letter as our formal request for $50,000 from the City of Prior Lake to assist with these renovation efforts. Your support will directly help create a safe, welcoming, and healing space where youth and young adults can rebuild their lives and work toward a hopeful future. Thank you for your consideration and for your commitment to supporting vulnerable youth in our community, we would be honored to partner with the City of Prior Lake in making this vision a reality. Sincerely, Beth Holger CEO Board of Directors Jamar Hardy, Chair Edina Realty Jason Marvin, Vice-Chair Boeckermann, Graftstrom, & Mayer, LLC Michael O’Neil, Treasurer Target Matt Amendola General Mills David Behrens Graco LaVina Branscomb Former Client, City of Minneapolis Kendra Garrett, Ph.D. St. Catherine University/University of St. Thomas Jade Jorgenson Fredrikson & Byron, P.A. Craig A. Kepler Best & Flanagan, LLP Arianna Orcutt PNC Bank Cristen Purdy Choice Bank Kirsten Theisen Target Beth Holger CEO The Link Community Advisory Board Tom Nordyke, Chair Nordyke Inc. Judge Diane Alshouse Retired Ramsey County Judge Senator Scott Dibble State Legislator from District 61 Commissioner Laurie Halverson Dakota County Commissioner Kelley Lindquist Art Space Jim Marshall Founder Former Vikings Player Oscar Reed Founder Former Vikings Player Gene Scapanski Former Link Board Chair Retired Professor St. Thomas University Susan Landwehr Marshall Community Member