The Brooklyn Park Economic Development Authority postponed a decision Monday on forgiving a $3.8 million loan for Huntington Place apartments, opting instead to pursue additional negotiations that could secure both immediate settlement funds and federal grant money for the city.

The EDA had been asked to forgive the loan to facilitate the sale of the 834-unit affordable housing complex to Mass Capital Group, a New York-based investment company. The loan, originally $3.5 million with accrued interest, was provided in 2020 to help stabilize the property under previous ownership.

During the meeting, EDA Director Tim Gladhill outlined several alternatives, including accepting a $450,000 settlement from National Equity Fund or redirecting $4 million in federal funding originally awarded for Huntington Place improvements to the city's Zanewood Teen Center expansion. Initially presented as either-or options, commissioners expressed interest in negotiating for both benefits.

Several Huntington Place residents attended the meeting, expressing concerns about potential displacement and requesting more community engagement in the decision-making process. The property houses approximately 2,500 residents, many of whom are working families who rely on the affordable housing.

The EDA scheduled a special meeting for next Monday to vote on a revised proposal that would make loan forgiveness contingent on securing both the $450,000 settlement and confirmation of the $4 million federal grant redirection. Staff will draft new resolution language incorporating these conditions before the vote.