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HomeMy WebLinkAboutEDA AGN 11-02-05 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N,E" Columhia Heights, MN 55421.3878 (763) 706.3600 TOO (763) 706.3692 Visit Our Website at: www.ci.colwnbia.heiglzts.nm.us EOA COMMISSIONERS Don Murzyn Jr. Patricia Jindra Bruce Kelzenbcrg Gary L. Peterson Bruce Nawrocki Bobby Willimns Tammera Ericson Diehm ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 7:00 P.M., WEDNESDAY, NOVEMBER 2, 2005 CITY HALL, CONFERENCE ROOM 1 AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE, 3. CONSENT AGENDA. (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion,) A, MOTION: Move to approve the consent al!:enda items as listed below: 1) Approve EDA Meetinl!: Minutes for AUl!:ust 23, 2005. MOTION: Move to approve the minutes of the August 23, 2005 Regular, EDA Meeting as presented, 2) Approve the Financial Report and Pavment of Bills MOTION: Move to approve Resolution 2005-13 a Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement and payment of bills for the months of August and September, 2005. 4. DISCUSSION ITEM A. 39th & Central Redevelopment 5. ADMINISTRATIVE REPORTS 6. ADJOURNMENT Walter R. Fehst, Executive Director H:\edaAgenda2005\11-2-2005 The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its accommodation will be provided to allow individuals with disabilities to participate in all EDA 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 EDA Secretary at 706-3669 to make arrangements (TDD 706-2806) for deaf or hearing impaired (\nl" THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMiNATE ON THE BASIS OF DlSABILlTY IN EMPLOYMENT OR THE PROVISION OF SFRVICES EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES AUGUST 23, 2005 CALL TO ORDER/ROLL CALL President, Murzyn, Jr. called the meeting to order at 7:07 p.m. Present: Don Murzyn Jr., Bobby Williams and Bruce Nawrocki, Tammera Ericson Diehm, Gary L. Peterson and Bruce Kelzenberg, Patricia Jindra arrived at 8:25 pm. PLEDGE OF ALLEGIANCE CONSENT AGENDA ApPl"Oval of Minutes Financial Report and Payment of Bills Nawrocki stated the Community Development Administration is over budget and asked why there isn't anything under CDBG or HRA. Schumacher stated that he doesn't sign the bills so he did not know the answers to their questions. He knows that the reimbursements have been sent in and receivedfrom Anoka County CDBG. MOTION by Ericson Diehm, second by Kelzenberg, to adopt the consent agenda items as listed. Upon vote: Nawrocki-nay, Murzyn-aye, Ericson Diehm- aye, Williams- aye, Kelzenberg-aye, Peterson- aye. Motion Carried. ITEMS FOR CONSIDERATION 49'h & Central Redevelopment Concept Fehst asked that all of the people present at the meeting besides the board and staff to say their names. The was Jim Erickson, Border Foods, Inc., representing Taco Bell, Dave Yonkin, owner of the Car Wash, Scott Banahar, attending with Dave Yonkin, Dave Anderson, Director of Business Development, Anderson Builders, Kathy Anderson, Architect with Anderson Builders, and Greg Anderson, owner of Anderson Builders. Schumacher stated the first property involved in the redevelopment concept is the Taco Bell, owned by Boarder Foods, Don's Car Wash, Udupi Restaurant, Exotic Pets, Barber shop and LaCaberna Restaurant. Boarder Foods has been working with staff and the owner of the car wash to obtain the car wash to redevelop a larger site for the Taco Bell. The Yonkins, the owners of the barber shop, owners of the Exotic Pets are all interested in selling for redevelopment. Mr Greg Anderson, owner of Anderson Builders stated he started the business 6 years ago, last year they did a little of $20 million, they develop and manage projects for other users, currently working in Savage, Minnetonka and most recently purchased property in St. Louis Park, they are a builder, have 18 employees, they were introduced with the owners of Udupi approximately 4 months ago and discussed them and also their banking relationship with Mr. Dennis Welsh, which was their first encounter with this project. Dave Anderson explained the Power point presentation shows some of the same pictures as in the Economic Development Authority Meeting Minutes August 23, 2005 Page 2 00 packets tonight. Anderson Builders is proposing a project that will place a new Udupi Cafe on the project site, and create additional new high quality, uniquely designed commercial development on the site. Their objective is to preserve and develop a thriving local business, and redesign and develop the balance of the site to complement the community character and enhance value to the tenants and owners of the new project. In order to accomplish this they would provide the following: 1) a site plan to capture the urban character of the neighborhood; 2) high quality architecture and scale of development; 3) an economically viable, realistic and service offerings to local residents; and 4) cooperative effort with the City to achieve its goals. A meeting was held with staff and the mayor to discuss their interest in the site and to see if this is something the City would be interested in on that block. Kathy Anderson, Architect stated for the past 23 years she has been an architect for projects such as Tamarack Village, and the award winning Super America's. She stated with Concept A it would provide for 144 parking spaces, whole block development, she likes to balance retail with marketing, there is two smaller builders on the corners with a multi tenant building in the middle, which would have a more convenient, drive up service to it, we haven't incorporated the alley in the design, as it appears the residents do not rely on it as an exit and could possibly vacated. With Concept B it would provide 116 parking spaces, it shows the block taking out the Taco Bell site and balancing out the buildings along the block, there are two retail buildings located close to Central Avenue with parking in the rear and another building in the center of the site with parking infront and along the sides. With Concept C it would provide for 138 parking spaces, due to the slop on 50'h it was determined you could put a 79 space underground parking facility, the concept is similar to concept B with two buildings close to Central Avenue and one set back, one could be usedfor a possible Liquor Store with a Clinic above it. The next slide is some of the designs they have worked on in the past, like outdoor seating areas, the Taco Bell at Plymouth station, and the Starbucks also located in Plymouth station. Nawrocki asked why she thinks there is a market for a doctors office in a retail area. Kathy Anderson stated they are finding that doctors offices are showing a trend where people like to drop offfamily members at the clinic and be able to shop or sit down at a coffee shop while waiting. Murzyn asked if they are prepared to work with Taco Bell. Dave Anderson stated they are willing to work with them and have already been in discussions with them. Ericson Diehm statulfor the record that due to a conflict, she would be abstainingfrom any vote our discussioll. Jim Erickson, Boarder Foods, representing Barb Snyder from Taco Bell, stated their position is that they want to stay in Columbia Heights, and would like to propose plans for a new facility. To do this project they would need approximately 14 feet from the Car Wash property. They were unsuccessfitl in obtaining the car wash property last year, as they could not reach a purchase price agreeable to both parties. Mr. Vitt, from Capital Real Estate, Inc. was interested in purchasing the site for redevelopment and has obtained a purchase agreement for $500,000 from Mr. Yonkinfor the car wash. Erickson stated he met with Streetar on Friday to discuss his concerns and plans for their facility. Greg Anderson asked if Mr. Ericksonfelt the best interest of the building would be to enter from Economic Development Authority Meeting Minutes August 23, 2005 Page 3 of3 Central Avenue. Jim Erickson stated it would. Kathy Anderson asked if their plan keeps the existing Taco Bell in business while they would be building. Erickson stated it would be torn down and completely rebuilt. Nawrocki stated: 1) from a City standpoint he was not sure it represents the best use of land in this area, and 2) access along the west side would need to coordinate with the rest of the block development. Fehst ask if Borders was still interested in a dual restaurant. Erickson stated they are not. Williams stated it looks like Mr. Vitt and Anderson Builders are both interested in development. Fehst stated Viti would be interested in working with the Andersons, he chose not to be here in the best interest of the development, but is willing to work with them and that Mr. Yonkin, the Exotic Pets property owner, the barber shop and LaCaberna is interested in selling, so we are looking at possibly developing a whole block. Williams asked Mr. Yonkin ifhis purchase agreement with Mr. Viti wouldjeopardize this development by Anderson Builders. Mr. Yonkin stated he did not know. Peterson stated we need to make a decision what we want on the site, certainly we want to keep Udupi, and Taco Bell here. Greg Anderson stated they would certainly look at all of the options, what would work best, what would look best, and try to accommodate everybody. Murzyn stated it sounds like a velY interesting development, we have a private company that is interested, which ties into the businesses that want to sell and rebuild at this time. Nawrocki stated the possibility of using $249,000 ofTIF funding for the Car Wash property he did not agree with, and he would hope the Andersons and Border Foods would work out their differences on the development. Motion by Peterson, second by Kelzenberg, to approve the Preliminary Development Agreement between the Columbia Heights Economic Development Authority and Anderson Builders; and fmihermore, to authorize the President and Executive Director to enter into an agreement for the same. Upon vote: Jindra-aye, Nawrocki-aye, Ericson Diehm-abstained, Williams-aye, Kelzenberg-aye, Peterson-aye, Murzyn-aye. Motion Carried. ADMINISTRATIVE REPORTS- none ADJOURNMENT Motion by Peterson, second by Williams to adjourned the meeting at 8:05 p.m. All ayes. Motion Carried. Respectfully submitted, Cheryl Bakken Community Development Secretary H: \EDAminutes2005\8- 23- 2005 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 2, 2005 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY: DATE: October 24, 2005 BACKGROUND: The bound Financial Report for the month of August and September 2005 draft Resolution 2005-13 is attached for review. The enclosed Financial Report lists the Summary (white), the Check History (Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with detail (yellow) for each fund and department and the Parkview Villa North and South financials (white). The reports cover the activity in the calendar (fiscal) year from January I through September 30, 2005. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2005-13, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the months of August and September 2005. EDA ACTION: H:\EDAConsent200S\Aug-Sept FlU Rep 2005 EDA RESOLUTION 2005-13 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUSTAND PAYMENT OF BILLS FOR THE MONTH OF AUGUST AND SEPTEMBER 2005. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of August and September 2005 and the list of bills for the months of August and September 2005 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this _ day of ,2005. MOTION BY: SECONDED BY: AYES: NAYS: Don Murzyn, Jr. President Attest by: Cheryl Bakken, Assistant Secretmy H:\Resollltions2005\EDA2005-13 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: November 2, 2005 AGENDA SECTION: Discussion Item ORIGINATING EXECUTIVE NO: 4-A DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: 39th & Central Redevelopment BY: Robert Streetar BY: DATE: October 25, 2005 The purpose of this memorandum is to update EDA Commissioners regarding the redevelopment of the the39th and Central Avenues redevelopment project area, as well as request direction on next steps. The City Council established this area as a top redevelopment goal in January 2002. The redevelopment project area (the "project") includes the following properties: Burger King, Mady's Retail Center and Bowling Alley, and Columbia Heights Rental. Please see attached map. The planning process facilitated by the planning firm of Dahlgren, Shard low, and Uban (DSU), included two components. The first was to solicit resident and business feedback of the area along Central Avenue between 37'h and 42nd Avenues...the City's downtown. The second component included preparing four possible redevelopment concepts for the project area. These concepts have not yet been tested for market, financial, or political feasibility, but are presented to promote discussion. Resident and Communitv Feedback At two public meetings, held at the Public Library on May 16th and 19th, residents and businesses provided feedback regarding the area between 37'h and 42nd Avenues along Central Avenue. The following is a list of the top four comments in each category. A complete list of all the comments is attached for Commissioner's review. John Slack of DSU will provide a full explanation of the process and results of the community feedback at the EDA meeting. Both Commissioners Peterson and Nawrocki attended the public meetings. Negatives . Competition from Apache business (City needs a better image to compete) (15 - business owners) . Safety (13 - residents, 10 - business owners) . Poor building fayade (8-residents) . Blighted buildings (8-residents) Vision . Vibrant businesses - good business mix (14 - residents) . Are-energized community with young families and family-focused areas such as parks and community center. (14 - businesses) . A viable retail and small businesses area through increased tax base and employment opportunities. (12 - Business owners) . Maintained "old look" in the area, reinforce character, and continuity along the street front. (12 - Business owners) Opportunities 1 . Bring residents into the business district. (12 - Business owners) . Attract people from outside of the community (10- Business owners) . Need family restaurants/coffee shops/American type restaurant (9 - residents) . Practical stores/trendy restaurant/American type restaurant (9 - residents) Redevelopment Concepts In addition, four redevelopment concepts have been prepared that represent some possibilities for redevelopment. Please see attached. The planning firm of DSU prepared these concepts, with voluntary input from Mr. Loren Bruggeman of Sherman and Associates, Inc. John Slack will provide a full explanation of the redevelopment concepts at the EDA meeting. Staff asked Mr. Bruggeman for his input to develop a more realistic sense of what the market may demand. Sherman and Associates have successfully completed a variety of residential, commercial, and mixed-used in-fill redevelopment projects in the metro area as well as in other cities in the midwest. Mr. Bruggeman will be attending the meeting to answer any questions Commissioners may have on in-fill redevelopment. Please find attached materials regarding Sherman and Associates, Inc. Redevelopment Concepts Concept "A" Concept "B" Concept "C" Concept "D" Housinq Urban Rowhomes 30 30 30 30 Townhomes 11 8 10 14 Urban Townhome Flats 0 0 70 70 Senior Rental (market rate) 70 70 Q 34 Total units 111 108 110 148 Office/Retail (sq. ft) 40,000 54,000 40,000 40,000 These redevelopment concepts respond the City's Comprehensive Plan goals of: . Strengthening the image of the community as a desirable place to live and work . Preserving and enhance the existing viable commercial areas within the City. . Advocating high quality development and redevelopment within the community. . Providing a variety of life-cycle housing opportunities with the community. . Providing a variety of employment opportunities within the community. Environmental All three of the properties have completed phase one environmental assessments. The phase one is a historical review of the property to determine the likelihood of contamination. As Commissioners will recall the Burger King site is contaminated primarily with construction debris and household garbage. There is a very high probability similar contamination extends south to the Mady's and Columbia Heights Rental properties. The City has applied to the Department of Employment and Economic Development (DEED) for a grant to pay for the phase two environmental assessment. The phase two will be completed on all three properties in January or February 2006. A phase two is a physical investigation that determines the extent of the contamination, the most efficient method of remediation and the associated cost. The cost for the phase two is estimated to be $62,745. Any amount not covered by the grant will be covered by funds the City required the Nath Companies to escrow for investigation and clean up when the Burger King was acquired. Both owners of Madys and Columbia Heights Rental have agreed to permit a phase two investigation of their property. The City will know in December if the grant 2 request is funded. Tax Increment Financino All three properties have completed tax increment financing eligibility assessments. The purpose of the assessment is to determine if conditions exist to establish a tax increment-financing district. The assessments determined that the three properties are blighted and subsequently qualify as a 25-year redevelopment tax increment-financing district. Public financial assistance will be required to make this redevelopment project successful. Proiect Tour Please find attached information regarding five successful redevelopment in-fill projects. These projects include the: . Gateway Project - Shoreview . Silver Lake Village Project - St. Anthony . Golden Valley Town Square - Golden Valley . Excelsior and Grand - St. Louis Park . The Pines and Wood lake Center - Richfield These projects represent the type of project that could be expected to be built at the project location. Staff would be happy to set a 4-hour tour of these projects in November if the Commissioners would like to view these projects in person. Summary In summary, the City has established this area as a top redevelopment priority; acquired and demolished one of the three properties; established the findings allowing for the creation of a 25- year tax increment-financing district; completed phase one environmental assessments on all properties; submitted a grant to pay for the phase two environmental assessment and prepared redevelopment concepts. The next step is to solicit developer interest and identify a developer the City believes would be successful in redeveloping this area. For the EDA meeting please come prepared to share your thoughts on the redevelopment concepts, as well as your thoughts about the project tour. 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Please feel free to write on the back of the paper if you run out of room to answer the questions. As you think about the area between 3ih and 42nd Avenue, what opportunities do you believe to be available through the redevelopment of this area? What is good and what works well in the project area. What are some positive things about the area that you can identify? What are the negative characteristics that come to mind as you think about this area? What is bad and does not work well in the area. What are the most important issues to address as redevelopment is contemplated for this area? Look into the future 20 years and assume that the City did all of the right things in 2005-2006. They prepared a plan and a strategy that preserved and enhanced the area's strengths and they took full advantage of the available opportunities. Likewise, strategies and action steps were taken to overcome the negative characteristics ofthe area. Please describe your vision for this area under these assumptions. Feel free to be as general, or as specific as you prefer. Downtown Planning Redevelopment and Renewal Project What is good about the area and what works? What is bad about the area and what does not currently work? City of Columbia Heights ce Downtown Redevelopment and Renewal Dahlgren Shardlow and Uban, Inc. 516.2005 Feedback from Business Owners and Community Residents May 16th and 19th, 2005 Negatives . Competition from the Apache businesses (City needs a better image to compete) (15 - Business Owners) . Safety (13 - Residents) (10 - Business Owners) o Business mix o Businesses bringing in wrong people o Too little activity/visibility on the street o Bar at the Mall o Few people/business type o Safety and crime - perceived and real . Poor building fayade - visual appearance, city assistance (8 - Residents) . Blighted buildings (8 - Residents) . Poor development pattern with single family uses breaking up commercial activity on Central Ave (7 - Business Owners) . Apartments - inadequate parking, visual appearance, traffic (1 - Residents)/Need to fix up rental propelties (5 - Business Owners) . Poor pedestrian environment/unfriendly sidewalks (6 - Business Owners) . Poor foot traffic (5 - Residents) . Negative news media about City (5 - Business Owners) . Poor signage visibility along Central Ave (5 - Business Owners) . Limited left turn lanes on Central (4 - Residents) . Difficult to cross Central A ve (few pedestrian crossings (4 - Business Owners) . Mall (4 - Residents) . Check cashing stores (3 - Residents) . Enough car parts stores (3 - Residents) . Traffic speed (2 - Residents) . Underutilized parking ramp, poor visibility from Central (1 - Residents) . Get rid of mall/Star Bar/pool hall/ethnic restaurant/discount stores (1 - Residents) . Restaurant with party space is not (Residents) . Tall building on street edge (Residents) . Mall (Residents) . Hub transit (Residents) Vision . Vibrant businesses - good business mix (14 - Residents) . A re-energized community with young families and family-focused areas such as parks and a community center (14 - Business Owners) . A viable retail and small business area through increased tax base and employment opportunities (12 - Business Owners) . Maintained "old look" in the area, reinforced character, and continuity along the street front (12 - Business Owners) . Get rid of duplex (9 - Residents) . Trees and flowers (beautiful) (9 - Residents) . Attract shoppers and residents (8 - Residents) . Safe (7 - Residents) . City we can be proud of (6 - Residents) . Ethnic and business diversity (6 - Business Owners) . Arts - attract (6 - Residents) . Open space - Central (3 - Residents) . Unique experience offered in city (3 - Business Owners) . Businesses brought up to the street front (3 - Business Owners) . Defined bike lanes (3 - Business Owners) . Quaint buildings (2 - Residents) . Specialty shops (2 - Residents) . Strong pedestrian traffic (2 - Business Owners) . No single family homes on Central (Residents) Opportunities . Bring nearby residents into the business district (12 - Business Owners) . Attract people from outside of the community - bring in pedestrians to shop (10 - Business Owners) / Business that will bring foot traffic shoppers (2 - Residents) . Need family restaurantslcoffee shops/bookstore.. . additional neighborhood retail (9 - Residents) . Practical stores/trendy restaurant/American type restaurant (9 - Residents) . Building faryade upgrade/city low interest loan program to improve facades (8 - Residents) . Street lighting is better (7 - Business Owners) . Need good quality stores (6 - Residential)/ Upgrade retail to attract more people (9 - Business Owners) . Incorporate the design team recommendations (5 - Business Owners) . Theatre w/DQ (5 - Residents) . Historical sense (5 - Residents) . Crestview/Bobby Steve/Nedegaard/Wash. McRevy good (4 - Residents) . Presence ofa community feel to city (4 - Business Owners) . Transit hub - good (2 - Residents) . I and 2 story shops with side/rear parking (2 - Residents) . Enteliainment - family activity (2 - Residents) . Close proximity to downtown (2 - Business Owners) . Nice clinic (I - Residents) . Good small businesses (1 - Residents) . New street improvements have reduced traffic accidents (i.e. Turn lane) (1 - Business Owners) . Homes SF that have been removed (Residents) . Streetscape - good (Residents) . Clean (Residents) . Need more jobs (Residents) . Good tenants (Residents) . Quaint buildings (Residents) . Traffic/pedestrian friendly (Residents) o Accessible parking available on 40th and Central Ave (Business Owners) o Parking is better (i.e. on-street parking and bus cut-outs) (Business Owners) o High traffic counts and good traffic flow (Business Owners) . Effective transit (bus service and transit hub (Business Owners) . Non etlmic restaurant (Residents) Issues . Need businesses that service the community (i.e. shops, restaurants) (13- Business Owners) . Need to improve communication between city and community/businesses about redevelopment projects (10 - Business Owners) . Businesses need to improve their physical appearance to increase their appeal (9 - Business Owners) . Where is the money going to come from? (7 - Business Owners) . Safety and crime (6 - Business Owners) . Redevelopment may force current businesses out (6 - Business Owners) . Need to attract families to the community (5 - Business Owners) . New low-income or condo housing is not desired (3 - Business Owners) . Need community specialty stores (3 - Business Owners) . Business assistance for fayade improvements needed (2 - Business Owners) . Need a place for families and residents to go (community center) (2 - Business Owners) . Need better curb appeal (2 - Business Owners) . Need financial partnerships between the city and the community (i.e.. a business revolving fund) (2 - Business Owners) . Need new businesses that attract new residents and shoppers to the community (2 - Business Owners) . What will the businesses have to contribute? (2 - Business Owners) . Need to keep storefronts along the street for consistency (I - Business Owners)