NDC Special Projects > Real Estate Development Initiative (REDI)

Real Estate Development Initiative (REDI)

Current Initiatives Under REDI:   Plaza Verde (Former Antiques MN Building)   The Midtown Global Market   Dale Street Village on University

REDI was initiated in 2002 with the following goals connected to our mission:

• To catalyze corridor revitalization in targeted neighborhoods.
• To encourage property ownership and business growth among NDC’s targeted
  entrepreneurs.
• To enhance the capacity of neighborhood organizations to carry out real estate projects.

To accomplish these goals, NDC will work with three types of owners/developers:

NDC targeted entrepreneurs: NDC alumni businesses or other entrepreneurs with the same characteristics (minority, low-income, resident of a targeted neighborhood) seeking to locate in a commercial location, expand their business, or purchase a building.

Neighborhood organizations: NDC neighborhood partners and other community based organizations that are seeking to develop commercial or mixed use real estate projects.
Catalytic projects: any type of owner or developer (for-profit or non-profit) working on a catalytic project (high visibility, strong potential for job creation or streetscape improvement, redeveloping a building or parcel that has been symbolic of neighborhood decline) where NDC assistance will help build momentum for future redevelopment efforts.

Location Priorities

St. Paul: Arcade Street, Concord Street, Payne Avenue , Rice Street, Selby Avenue, and University Avenue (Rice St. to Lexington).
Minneapolis: Lake Street (Nicollet to Hiawatha),West Broadway, and Franklin (35W to Cedar),

Loan Fund

NDC has capitalized a REDI Loan fund of $650,000 with loans from Wells Fargo Bank and Western Bank that it will use to provide a limited number of loans or equity investments that will be used to leverage catalytic projects in inner-city commercial corridors.

Financing Product:

Subordinated deferred debt for commercial real estate projects and equity investments may be considered on NDC projects where appropriate

Loan Terms:

• Up to 20 year amortization schedule
• Balloon payment to be determined (within 9 years or less, depending on NDC’s source of
  capital) Substantial deferment of principal and interest up to 2 years with minimum payment
  applied toward principal
• Interest rate at or below market rate for similar bank loans
  
  

For more information about REDI or any specific initiative, please Contact us .