Politics & Government

Neighborhood Funding Work Group Recommends Releasing $2.68 million in NRP Funds

If it passes the City Council, it's likely that the Neighborhood Revitalization Program (NRP) policy board would distribute funds in a way that benefits neighborhoods that were hurt by the council's December cap on NRP funds.

The Neighborhood Funding Work Group recommended last week that the Minneapolis City Council release $2.68 million of Neighborhood Revitalization Program (NRP) funds frozen by the council in December.

The recommendation by the group — comprised of representatives from Mayor RT Rybak's office, members of the City Council and staff — still needs to be approved by the Ways and Means Committee and the full City Council. If it passes both bodies, the money will be returned to the NRP — a program which has put millions of dollars toward everything from affordable housing to public safety in Minneapolis in the last 20 years.

This $2.68 million will help neighborhoods continue some of their planned projects.

Find out what's happening in Southwest Minneapoliswith free, real-time updates from Patch.

"It will have some beneficial impact because, of course, if neighborhoods have a little bit more resources to put back into their plans, they can do a little more," said NRP Director Bob Miller.

In December, the City Council froze NRP funds at 50 percent of Phase II to pay down property tax increases. This action net the city $12.68 million—more than was needed to help transition NRP programs to the new Community Participation Programs.

Find out what's happening in Southwest Minneapoliswith free, real-time updates from Patch.

It's likely, said Miller, that the policy board will adopt an allocation formula that accounts for the proportion of NRP funds each neighborhood was able to spend. Miller plans to propose a formula to the board that factors in each neighborhood's overall loss from the council's December actions. 

"We’ve developed allocation formulas twice before," Miller said. "They’ve worked very well through the cooperation of the neighborhoods."

About 30 neighborhoods could benefit from the released funds if the NRP policy board adopts a more equitable distribution, Miller said.

One problem with the move, which will likely be addressed in Ways and Means Committee, is that the council would need to change language that freezes NRP money at 50 percent of Phase II in order to allow the funds to be distributed.

"They’ve got to release the funds and they’ve got to change the requirement," Miller said. "If they don’t change the contracting requirement than it doesn’t do any good."

Council Member Betsy Hodges, who served on the now-defunct Neighborhood Funding Work Group, said the working group came to these recommendations through a discussion balancing property tax burdens and services provided by the city.

The group also recommended the new Community Participation Program be adjusted to allow a two-year transition from NRP, which is slated to sunset at the end of 2011.

City staff expect the proposal to be heard by Ways and Means on March 28, and the full City Council April 1.

 


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here