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Home My WebLink AboutFebruary 18, 2003 Work SessionCITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights. MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. cohtmbia-heights, mn. us ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be hem in the CITY OF COLUMBIA HEIGHTS as follows: Mayor Julienne Wyckoff Councilmembers Robert A. Williams Bruce Nawrocla' Tammera Ericson Bruce Kelzenberg City Manaoer Walt Fehst Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL AND PLANNING AND ZONING COMMISSION TUESDAY, FEBRUARY 18, 2003 7:00 P.M. CITY COUNCIL CHAMBERS WORK SESSION ~4 GENDA Redevelopment Goals The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council §ecretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) THE CitY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAl OPPORTUNITY EMPlOYEr COLUMBIA HEIGHTS CITY COUNCIL LETTER Meeting of: February 18, 2003 AGENDA SECTION: Consent ORIGINATING DEPARTMENT: CITY NO: Community Development MANAGER'S ,~'--.., APPROVAL ITEM: Redevelopment Goals DATE:BY: RobertFebruaryStreetarl 1, ~0~'~i BY: '~/ ~ BACKGROUND The City of Columbia Heights is currently presented with a number of redevelopment opportunities, which if the City Council undertakes, in a thoughtful and efficient manner, will result in an increase in the tax base, improved housing and retail opportunities for residents, increased private investment, and an improved City image. At the Council work session on February 18, staff will be: · Reviewing these possible redevelopment opportunities. · Requesting Council confirmation on which opportunities to pursue. Redevelopment Opportunities The following areas represent potential redevelopment opportunities because they are either blighted or structurally substandard, underused, no longer an appropriate use, or vacant. As a result, the City is experiencing a decrease in the tax base, fewer housing and retail opportunities for residents, a decrease in private investment, and a poor City image. Of the nine sites, the Council identified five of the sites as redevelopment goals in January 2002. These possible redevelop opportunities include: 1. Industrial Park (2002 Goal) 2. Kmart 3. 37th and Central Avenue - northwest corner (2002 Goal) 4. 39"~ and Central Avenue (2002 Goal) 5. 37th and Stinson Boulevard - northwest corner 6. 40~ and University - southeast and southwest corners (2002 Goal) 7. NEI 8. 40th and Tyler Street 9. South Lomianki (2002 Goal) Staff suggests the Council pursue the redevelopment of the following sites because they represent opportunities where there is already significant developer interest, and because redevelopment would benefit the City most, in terms of increasing tax base, improving housing and retail opportunities for residents, increasing private investment, and improving the City's image. These sites are: 1. Industrial Park Planning for this site is currently underway. The market analysis is complete; the phase 1 environmental review is complete. On March 17, the development company of United Properties, and the planning firm of Hoisington Koegler will present for Council comment two general redevelopment scenarios. 2. Kmart For almost a year, the Kmart has been vacant, although on the north end, Big Lots continues to do business. The current owner has attempted during this time to lease this space but has been unsuccessful. Staff and a local developer have met with the owner, and the owner has expressed an interest in possibly redeveloping this site. 3. 37th and Central The City has purchased and demolished two single-family homes in this area, as well as purchased the brick commercial building, which will also be demolished. Staff has received a preliminary proposal for this site that includes a mix of retail and market-rate rental housing. 4. 39th and Central The City has received $25,000 from the Met Council to assist in planning and determining the market and financial feasibility of redeveloping this site. 5. 37"~ and Stinson The planning firm of Dahlgren, Shardlow and Uban (DSU), which is representing the City of St. Anthony in their Apache Mall redevelopment, and the developers, are very interested in planning the redevelopment of this area in conjunction with the Apache Mall redevelopment. For each of these opportunities a redevelopment plan and financial analysis would be required. The planning process would be similar to the process the City is currently undertaking in the industrial park. Creating a redevelopment plan for each of these Opportunities would require approximately 3 to 8 months, and could begin in March/April. Once a redevelopment plan is complete, the City could begin to market these redevelopment opportunities to high quality developers beginning in late summer and fall of 2003. Staff suggests collaborating with the planning firm of Dahlgren, Shardlow and Uban (DSU), one of the most respected and professional planning firms, to develop a plan for Kmart, 39~h and Central, and 37~h and Stinson. DSU has significant redevelopment planning experience. They are currently planning the redevelopment for the City of Burnsville and their Heart of the City project, for the City of New Brighton and their Northwest Quadrant project, and for the City of St. Anthony and their Apache Mall redevelopment. Staff also suggests collaborating with the public finance firm of Ehlers, Inc., the City's current financial advisor. Ehlers provides redevelopment financial services for a number of Cities and their redevelopment projects. They are also currently working with the City of Burnsville, and St. Anthony on their redevelopment projects. Below is a table describing the approximate costs to plan each of these sites and perform the financial feasibility analysis. These costs are very general, and most likely on the high side. Redevelopment Site Planning Financial Analysis Total Provided by DSU Provided by Ehlers Kmart $50K - $60K $8K - $13K $58K - $73K 39th and Central $20K - $40K $8K - $13K $28K - $53K 37t" and Stinson $10K- $20K $8K- $13K $18K- $33K Total for all Sites $80K - $120K $24K- $39K $104K- $159K Sources to pay for the planning and financial analysis include Metro Council planning grants, the developer, and the sale proceeds from the sale of 4607 Tyler, which is expected to sell for $160,000. In summary, Staff strongly suggests that the Council focus on redeveloping the sites suggested above, and direct staff to collaborate with DSU and Ehlers, Inc. to develop a redevelopment plan for Kmart, 39th and Central and 37th and Stinson. One completed the plan would be marketed to high quality developers later in 2002. Please find attached a map of the redevelopment opportunities. · Does the Council want to pursue the redevelopment opportunities suggested by staff? · Are there other opportunities the Council would like to pursue? · Does the Council want to begin the planning process in March/April? COUNCIL ACTION: h:\Consent2003\CL Goals City of Columbia Heights Redevelopment Opportunties N Industrial Park Priority rTth Ave. J4Oth & University 40th & Tyler iS. Lomianki 37th & Central pdomy 39th & Central Pdodty 37th&Stins°nIPriority