MINNEAPOLIS--(BUSINESS WIRE)--June 21, 2002--U.S. Bancorp
Residents in the Holland Neighborhood of northeast Minneapolis
will see new housing and other improvements in their urban district
with the help of a property purchase that the Minneapolis Community
Development Agency (MCDA) Holland Neighborhood Improvement Association
made from U.S. Bank at a greatly reduced rate.
The group approached U.S. Bank to purchase the property, located
at 24th and Jackson, using their Neighborhood Revitalization Program
funding from the City of Minneapolis. U.S. Bank reduced the cost of
the land because it was for the purpose of building townhouse units,
most of which will be affordable to people with incomes at or below 80
percent of median income.
What's unique is that since they were able to deliver the land to
the developer at such a reasonable cost, they are now able to share in
the net profit of the development once the units are sold, said Vicki
Shipley, vice president of community development at U.S. Bank.
money will then be used in their neighborhood, which is a moderate
income neighborhood, for rehab of the existing homes or possibly for
commercial improvement along Central Avenue. It's a clear win for the
bank and for the neighborhood.
This is a great example of how financial institutions and
communities can collaborate to creatively utilize resources to make
urban redevelopment projects work, said Kevin Reich, project director
for the Holland Neighborhood Improvement Association.
The developer, Gordon Awsumb of Awsumb & Associates, concurs,
Bank's contribution was key to make this innovative public/private
partnership work to bring well designed, energy efficient homes to an
inner city neighborhood.
This development, which has full community support, is a project
that will help provide much-needed housing to the city and that will
strengthen the Holland neighborhood, said Minneapolis City Council
Member Joe Biernat.
I am grateful to the Holland Neighborhood
Improvement Association for working with U.S. Bank to put the proposal
The sale of the property was finalized in May and construction on
the housing is expected to begin in July. It is one of many community
development projects supported by U.S. Bank in the Twin Cities.
Minneapolis-based U.S. Bancorp (NYSE:USB), with assets in excess
of $165 billion, is the 8th largest financial services holding company
in the United States. The company operates 2,147 banking offices and
4,929 ATMs, and provides a comprehensive line of banking, brokerage,
insurance, investment, mortgage, trust and payment services products
to consumers, businesses and institutions. U.S. Bancorp is home of the
Five Star Service Guarantee which assures customers of certain key
banking benefits and services or customers will be paid for their
inconvenience. U.S. Bancorp is the parent company of Firstar Bank and
U.S. Bank. Visit U.S. Bancorp on the web at usbank.com and Firstar
Bank at firstar.com.
CONTACT: U.S. Bank
Teri Charest, 612/973-4594
INDUSTRY KEYWORD: BANKING BUILDING/CONSTRUCTION REAL ESTATE
SOURCE: U.S. Bank
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