Minutes

New Brighton Economic Development Commission

Regular Meeting – May 8, 2001

7:30 a.m.

Members/Liaisons Present:

Bob Benke, Eugene Delaune, Dennis Flahave, Linda Harmon, Ken Johnson, John Kaufhold, Steve Larson, Char Samuelson, Jeanne Smith.

Members/Liaisons Absent:

Rakesh Agarwala, Mark Nelson, Maxine Pierson.

Staff Present:

Kevin Locke, David Black.

Others Present:

Phil Carlson, Craig Rapp.

Call to Order

Ken Johnson called the meeting to order at 7:35 a.m.

Approval of Minutes

A revised copy of the minutes of the April 10, 2001 meeting were presented for approval. All approved.

Northwest Quadrant

Black reported that work was continuing on several aspects: an area-wide survey, wetland delineation, real estate and equipment appraisals, etc. At the same time, the legislature is discussing significant changes to the real estate taxation structure and the TIF laws, both of which could have detrimental effects on the City's ability to fund NWQ improvements.

Johnson questioned whether this development could be "grandfathered in." Locke suggested that such changes are often made retroactive to some date. He also noted that the Council had recently approved some internal changes in our program designed to enhance our capabilities. Benke suggested that the House proposal would alter the intent of the TIF law, forcing cities to establish separate taxing districts to cover shortfalls resulting from the compression of tax rates. Delaune suggested that we don't use overly conservative projections as we evaluate the feasibility of the district, in order to avoid needlessly abandoing good proposals. He also suggested that we contact the Bulletin about doing an article highlighting the possible effects on the NWQ. Samuelson agreed, indicating that articles typically highlight only the abuses of TIF.

Master Development Plan: Rapp explained that a market feasibility study is typically done for housing projects in the pre-development phase, in order to satisfy bankers and underwriters about the viability of a project. Roger Conhaim did this study, which should be considered as "base data." Rapp believes that the design of this area will created a premium value, and that housing unit values in the $200,000-300,000 range can be expected. The adjacent railroad tracks and nearby commercial and industrial uses will limit the potential above about $300,000. There will be a range of price points, depending in large part on the size of the units.

Benke expressed some concern that opportunities be made available for smaller units, to meet the needs of young, working couples. Rapp agreed, noting that the study had indicated a market for this group as well as singles of all ages, empty-nesters, and retirees. Delaune questioned whether the decreasing options for state subsidies would push the project more to the higher price ranges. Rapp noted that the financial considerations were in part driving the design, and that fitting in additional units was one way to improve feasibility.

Samuelson asked whether it would be possible to have no rental units. Rapp indicated that condominium units had only recently become popular again, and that he didn't feel confident enough in this market to reserve all "flat" units for ownership. Benke didn't see a problem with some rentals, since units would be far different and more expensive than any "problem" apartment complexes in the area. Johnson indicated that he would prefer no rentals. Larson asked whether a 75/25 owner/renter mix would be feasible. Rapp indicated that more work would be done on the housing portion of the plan, possibly including trading land with the adjacent park.

Flahave said that, based on his professional experience, small condominiums would sell very quickly. Larson suggested that higher recent gas prices would make this area even more attractive. Harmon suggested that senior housing would be better than market-rate rentals. Rapp agreed with the need for senior housing, noting that several residents had approached him individually at the Town Hall Meeting indicating their interest.

Rapp noted that Metropolitan Council's Livable Communities funding will be looked at in order to assist the financing of this project. There are three programs within Livable Communities, a cleanup program (for which the area will qualify), a demonstration grant program, and a fund dedicated to affordable housing. In the demonstration grant program, which is highly competitive, one criterion is the integration of affordable units within the housing mix. Other elements include achieving higher densities for more efficient use of the land, and integration of a transit component, all with an innovative plan that could serve as a model for elsewhere in the region.

Kaufhold suggested providing an incentive for New Brighton residents to move into NWQ housing, which would open up larger homes for purchase by families. Rapp suggested that this type of strategy would be considered an asset for a funding proposal, but that the City should be careful of legal issues.

Rapp showed several examples of building types and streetscapes that had been built in other cities. Similar housing products have been built in the Twin Cities, but not with front doors along the street. A series of design guidelines will be developed to assure that the appropriate appearances are achieved. Kaufhold asked whether a CAD program was being used to illustrate various views. Rapp replied that the individual builders, once selected. would do that.

Brighton Village Planning Study

Black noted that the third and final community meeting was scheduled for the 17th. Kraus-
Anderson intends to present its development proposal shortly thereafter. A meeting will be scheduled with them, staff, Phil Carlson, and Jim McComb to hopefully work out a plan that will be acceptable to all parties. The EDC will be asked for its recommendation to the Council at the next meeting, on June 12th.

Carlson reported on a meeting the previous week with staff and McComb. The senior housing/hotel/restaurant combination is feasible, as well as the free-standing Snyder's store and spaces near Silver Lake Road for small tenants. McComb endorsed developing close to the streets, despite the owner's concerns. A gas/convenience store in the area would be desirable, and the Champps corner would be the logical place for it. Champps could move to the southeast corner of the site. If Champps is not willing to move, there would be a possibility for another restaurant at the south end of the site.

Carlson indicated that he had counted parking stalls, and this layout should have enough, including some parking on the interior street. No office space was shown, though there is market feasibility. Carlson suggested that the drawings that would be shown to the community would have one concept with several variations.

Delaune encouraged the center to be viewed as the commercial component of a mixed-use village, suggesting that we look at this plan in the context of a larger neighborhood. Carlson pointed out that Kraus-Anderson owns about 60% of the affected property. Delaune asserted that Kraus-Anderson wants a simple, quick solution, and the community would be well-served by taking a longer-range approach. Locke suggested that we look at the mix of uses separately from the ownership of the underlying real estate. He agreed that a broader area should be looked at, but noted that the opportunity to influence change is strongest at the center. Delaune suggested a master plan for the entire area is needed in order to properly evaluate this component. He noted that the Amoco station and the Chinese restaurant may both change ownership before the redevelopment of the center is completed. Locke noted that these types of studies must always find an appropriate balance between long-term goals and short-term opportunities, and that we have looked at a broader area as part of this study. Benke suggested that this approach be illustrated more clearly.

Adjournment

The meeting was adjourned at 9:30 a.m.