Long-term affordability, brand new homes for neighbors
The sale of the Aqua City Motel site marks a housing milestone for south Minneapolis.
With its iconic, bright blue sign, the Aqua City Motel in South Minneapolis was a decades-long fixture in the community—first as a go-to travelers’ inn with mid-century design elements, then later as a hot spot for criminal activities. and a sometime housing option for people struggling with housing stability.
With the building in disrepair, the county saw an opportunity transform the space to create long-term affordable housing. And earlier this year, Trellis stepped up in partnership to help make that change happen.
Hennepin County originally purchased the Aqua City Motel as part of its Single Room Occupancy (SRO) housing strategy, which aimed to create basic, dignified, independent housing to people who otherwise don’t have housing options.
SRO housing typically has private single rooms, shared or individual bathrooms, and shared kitchens, which makes former motels ideal sites for conversion.
As part of the due diligence, staff completed market and feasibility analyses for each potential SRO building to determine the best redevelopment strategy.
Because of the condition of the Aqua City Motel building and immediate safety concerns, the county decided to demolish the building in the summer of 2023.
This presented an opportunity to sell the vacant site to an experienced affordable housing developer to build dignified housing with modern amenities that complements the existing neighborhood. Staff released a Request for Proposals (RFP) in January 2024 to solicit targeted proposals.
The RFP for the Aqua City Motel property sought a proposal to create new affordable housing, specifically:
- at least 36 rental housing units affordable to people at or below 30% of the Area Median Income, with a priority for single-room occupancy housing units, for at least 30 years;
- an experienced property manager for this type of project;
- a commitment to work with neighbors to reflect community interests; and
- a design meeting City of Minneapolis planning requirements.
The RFP evaluation panel, which included a member from the neighborhood due to the county’s ownership of the parcel, recommended the proposal from Trellis, a well-qualified local non-profit affordable housing developer and operator with expertise in affordable and supportive housing.
The proposed project will create 40 or more units of housing, all affordable to households at or below 30% of the area median income. The proposal includes a range of unit sizes, from studios to three-bedrooms, to address the need for deeply affordable housing for families, couples and singles. Simpson Housing Services will provide on-site services.
Design elements that Trellis proposed were specifically selected to support high priority homeless and disabled residents, including a private meeting room, shared office space with Simpson, secure entrances, and on-site staff.
Family-focused common area amenities include a community room with a kitchen, lounge areas, fitness room, parcel room, outdoor patio, grill in the courtyard, and a separate kids-focused play area.
“The Aqua City Motel made such an outsized impact on this neighborhood for decades,” said Julia Welle Ayres, Director of Housing Finance at Hennepin County, “and now our work and partnerships will transform this little parcel into 40 new long-term affordable homes for new neighbors. I am moved.”
Fundraising for the new development has begun. For most affordable housing, this process takes 3-5 years, and construction another 12-18 months. When it opens its doors, the project will mark a milestone for the affordable housing community in this far South Minneapolis neighborhood.
“This project helps address critical community housing needs by prioritizing residents at the lowest income levels in an upper-income neighborhood,” continued Welle Ayres. “It’s a remarkable transformation for this former motel site and vacant lot.”