Crystal City Council — Transcript
Monday, August 24, 2026
Story
Crystal City Council approves clean energy and affordable housing funding
AI Data Centers
Community Center Policies
Campaign Sign Ordinance Enforcement
MinPACE Program Adoption
Willow Woods Estates Rehabilitation and Affordable Housing Aid
Votes (2)
Approving the Joint Powers Agreement for the Property Assessed Clean Energy Program of Minnesota (MinPACE) and Certifying Property Assessed Clean Energy Charges
Dissent: None
Moved by Councilor Sponheim [00:40:13,400] · Seconded by Councilor Nelson [00:40:43,630]
The item introduced the MinPACE program, a financing tool for commercial property owners to fund energy efficiency and renewable projects through voluntary special assessments. Holly Houston from the Saint Paul Port Authority presented the program, highlighting its benefits (low-cost, fixed-rate financing, no city financial risk, environmental alignment) and administrative process. Staff confirmed minimal administrative burden. A specific parcel at 16937th Place North, a proposed park development, was identified for an initial special assessment. Council members expressed strong support, recognizing it as a valuable tool for economic development and environmental stewardship.
Approved the use of Local Affordable Housing Aid (LAHA) Funds to Support a Property Rehabilitation of Willow Woods Estates
Dissent: None
Moved by Councilor Sponheim [00:58:49,700] · Seconded by Councilor Peterson [00:59:01,770]
The city received a request for financial assistance from Common Bond Communities for a substantial rehabilitation of Willow Woods Estates, a 40-unit affordable housing complex. Staff presented an overview of the LAHA program, detailing its funding source, allowable uses, and spending requirements. Common Bond's representative, Sally Rabon, explained the project's financing gap, the decision to retain the property, and the scope of the comprehensive rehab (windows, roofs, siding, unit interiors, parking lots). The city's proposed contribution is a $650,000, 30-year deferred, 0% interest loan, and the forgiveness of $22,000 in accrued interest on an older $50,000 loan. Council members commended Common Bond's commitment to preserving affordable housing and the sensitive approach to in-place resident rehabilitation.
Notable Quotes (6)
The Pace program is a financing tool for property owners to make energy investments into their property and then pay it back through a voluntary special assessment on the property tax bill.
I know Park, which is right next to TCO, uh, when that goes, when that gets constructed, they’re going to have a lot of energy improvements. They’re trying to get as close to net zero as they can. And I think a program like this really helps incentivize that and gives them a tool in order to get their where versus a project might not happen otherwise.
This is a great tool that as we as a city evolve and have more redevelopment occurring with our aging infrastructure, this is a great additional tool to help businesses and property owners reinvest.
Local affordable housing aid is funding designed to create and preserve affordable housing. It’s funded by dedicated sales tax began in 2023. Um funded through a quarter cent sales tax in the seven county metro area.
Section eight on every one of the units, meaning that the residents there only pay 30% of their income on rent. So even if the rent goes up, residents still only pay 30%. HUD covers the rest. So this really aligned with common bonds mission.
And because there’s a it’s a tight knit community and there’s, I mean, reinvesting in them and the way that you’re going to just do it as you just described by not moving people out and just trying to facilitate that nurtures the community that helps these folks continue on through days.
Ordinances & Resolutions (13)
City code regarding campaign sign setbacks, cited in a violation notice.
Agreement with the Saint Paul Port Authority to implement the MinPACE program.
To designate the Port Authority to implement and administer MinPACE and provide for special assessments.
Voluntary assessment on property tax bill for MinPACE financing.
Required for MinPACE projects.
Required for MinPACE projects to show energy savings.
Property owner's request for MinPACE assessment.
State funding derived from a sales tax to support affordable housing.
Used in the financial restructuring of Willow Woods Estates, issued by Hennepin County.
Low-Income Housing Tax Credits allocated by Minnesota Housing for Willow Woods Estates.
Funding secured from Minnesota Housing for Willow Woods Estates.
HUD contract ensuring affordability at Willow Woods Estates.
Received by Common Bond for Vicksburg Commons.