A major renovation of the 11-building Riverside Plaza affordable housing complex — a product of the 1970s athat is situated just east of downtown Minneapolis — is expected to begin next month, now that finance details have been completed.

The city announced today that a $132 million financing package deal was reached to restructure the property’s debt and finance a $62 million renovation, which includes at least $7 million of site and common area improvements.

The renovation is necessary, the city says, because the 1,303 living units were falling into disrepair.

"The habitability of Riverside Plaza was at risk because the design lifespan of the major mechanical systems for these buildings had expired and consequently these systems, especially the water and sewer piping systems, boilers and cooling systems, were failing. There are seven broad categories of improvements included in the rehabilitation scope for Riverside Plaza: Mechanical work, energy efficiency improvements, parking ramp and plaza deck improvements, site improvements for safety and circulation enhancements, building exterior improvements, common area interior work, and apartment unit interior work."

Called a housing campus, the project was designed by architect Rip Rapson and completed in 1973. It's in the area bounded by Cedar Avenue, South Fourth Street, 15th Avenue South and South Sixth Street. It's the largest affordable housing development in the state; in addition to the 4,440 residents in the 11 buildings, there's a K-8 charter school, grocery store and a tenant resource center.

Other objectives for the renovation project, as stated by the city, are:

• 1. Providing local jobs: This project is estimated to create more than 200 construction jobs over two years. Ninety of those jobs initially will be for residents in Riverside Plaza and the surrounding Minneapolis neighborhoods.
• 2. Being green: This project reduces the project’s carbon footprint by reducing utility usage. Xcel and CenterPoint together are rebating about $400,000 through 19 rebate programs resulting from energy efficiency improvements.
• 3. Improving public safety: Improvements to security, lighting, sidewalks, signage and way-finding will accompany new security cameras. The developer is partnering with the City, the West Bank Community Coalition and Riverside Plaza Tenant Association to implement Safe Zone tactics such as a safety center, court watch and community prosecution.
• 4. Offering long-term resident support: The developer will provide the Riverside Plaza Tenant Association with up to $4.5 million through 2041 for tenant advocacy and related services subject to HUD surplus cash requirements.
• 5. Preserving affordable housing along transit: Extending the useful lifespan of this campus preserves affordable housing for more than 4,000 residents in close proximity to the existing Hiawatha LRT line and the planned Central Corridor LRT line.
• 6. Improving property aesthetics: The project includes painting, landscaping, new window dressings, new trash enclosures, new generator screens, sidewalk repair and parking resurfacing.
• 7. Providing heritage preservation: This renovation preserves a property designed by a notable Minnesota architect, Ralph Rapson, and was developed under HUD’s unique New Town in Town initiative, which was one component of the federal Title VII New Communities program. On Dec. 28, 2010, the Riverside Plaza campus was listed on the National Register of Historic Places for the property’s significance in the history architecture, community planning and development.
• 8. Leveraging outside investment: The scope of the project, including the debt restructuring and construction, has attracted more than $116 million of private investment and nearly $16 million of public investment to the City. Approximately 88 percent of the project is funded with private equity.