History of Community Engagement

Sears Redevelopment Project

 

I. NEIGHBORHOOD INPUT

In 1995, southside neighborhoods developed a plan for Lake Street from Interstate 35W to Hiawatha Avenue. Also, the Minnesota Alliance for Progressive Action, the Minneapolis Center for Neighborhoods and the Chicago-Lake Project Review Committee convened a roundtable discussion to talk about the Sears site using a new development model known as "community wealth creation."

The City of Minneapolis Planning Department organized and planned this two-day "charrette." At the charrette a cross-section of the community and city explored options for a vision that maximizes benefits to the surrounding community. This input was considered and acknowledged in the City's subsequent comprehensive planning document, the Minneapolis Plan.

II. REDEVELOPMENT BACKGROUND

In 1982, a Chicago-Lake Project Review Committee was formed to work with the Minneapolis Community Development Agency (MCDA) on site redevelopment. With approval from the City, the Committee established the Chicago-Lake Redevelopment District in 1983 to formulate guidelines and preserve and improve the Chicago-Lake Commercial District.

Two subsequent documents, the Lake Street Center Redevelopment Plan and the Lake Street Center Tax Increment Finance (TIF) Plan, update and refine the proposed phased commercial and retail redevelopment project. Both documents reside in the Developer's Packet.

III. CHICAGO-LAKE REDEVELOPMENT DISTRICT GUIDELINES

In 1995, the City of Minneapolis and the Chicago-Lake Project Review Committee revised the fourteen Chicago-Lake Redevelopment District Guidelines:

1. Project area.
2. Project goals and objectives.
3. The relationship to the Minneapolis Plan.
4. Land uses and standards for redevelopment.
5. Project traffic concerns.
6. Environmental liability.
7. Project activities.
8. Real property re-use constraints.
9. Post-project operational duties.
10. Development equal employment opportunities.
11. New job development with regard to the City's low income and minority Resolution.
12. Business and resident relocation and displacement.
13. Citizen participation.
14. Project financing plan, funding sources, and development agreement.

Guideline One: Project Area

The first guideline provided the boundary of the Redevelopment District, which includes the Sears redevelopment area.

Guideline Two: Project Goals and Objectives

The Chicago-Lake Redevelopment District established a goal: to incorporate over time a complete, convenient, attractive, and profitable commercial center. Eight objectives guide goal achievement:

1. Living wage employment where developers that utilize minority and sub-contractors during redevelopment.
2. Local private leadership.
3. Improved appearance and overall image of the Chicago-Lake area.
4. A vibrant mix of old and new commercial structures.
5. A balanced mix of goods and services.
6. Housing development and rehabilitation in conjunction with commercial development.
7. Improved vehicular and pedestrian circulation and parking to minimize transitions.
8. Multi-use development with retail, recreation, family entertainment and open space.

Guideline Three: Relationship to City's Comprehensive Plan

The Minneapolis Plan identified the Chicago-Lake Commercial District as a community-level shopping center to be preserved and improved. Sears redevelopment must conform to the goals, objectives, and land uses provided in the Minneapolis Plan.

Guideline Four: Land Uses and Standards for Development

Ten criteria guide land uses and provide standards for Sears project development:

1. Establish and maintain a clear boundary between commercial and residential areas utilizing effective buffers, screens, and or transitions.
2. Emphasize service to local and community residents, employees, hospital visitors, patients, and staff.
3. Recognize, in new construction design, aesthetic features, in store mix, use of space, and adaptation of existing buildings, that Chicago-Lake is urban, not suburban.
4. Incorporate successful shopping center concepts over time such as easy movement among stores, common support facilities, enforced maintenance, uniform hours, common security, and cooperative advertising and management yet without traditional form of mall surrounded by shops surrounded by parking.
5. Arrange stores and shopper movement patterns around a focal point not diffused.
6. Make movement into district and among stores as easy as possible.
7. Create and preserve an environment suitable for both infant and mature business.
8. Design professional offices into the district with special consideration for second and third floor above shops.
9. Encourage multi-use development including housing, recreation, family entertainment, and green space.
10. Develop design standards for the area, rehabilitation, and new construction.

Guideline Five: Traffic

Proposals for new development and street-streetscape improvements will be evaluated for traffic effects or impacts on: residential, streets and their ability to enhance vehicular and pedestrian traffic flow, and to respond to vehicular access and parking needs of both residents and business. Four points guide redevelopment:

1. Assuming the continuation of extreme traffic densities on both Lake and Chicago, redevelopment activities should limit traffic conflicts, especially by limiting alley and driveway curb cuts and turning movements.
2. Attempts should be made to separate commercial and residential traffic.
3. Redevelopment activities should promote the use of transportation modes other than the auto, i.e. pedestrians, bicycles, motorcycles, buses, car pools, and light rail.
4. Provide adequate and convenient public parking to serve the commercial needs of the area. Parking requirements and associated costs should be minimized by:

· Lot and space consolidation
· Parking near destinations
· Clear lot advertising
· Adequate bicycle and motorcycle parking
· Careful demand analysis with conservative standards
· Clear signs and direct paths between remote (second level) stalls and destinations.

 

Guideline Six: Environmental Controls

The developer has the responsibility to prepare any documents required by federal or state law regarding environmental impact assessment of project activities.

Economic Advantages of central energy systems should be considered.

Guideline Seven: Project Activities

CPED manages project activities. Jim White of CPED manages the Sears project. Developers must consider retaining existing solidly built substantial structures. Project activities and guidelines in the district include the following:

1. Property acquisition to provide locations for the expansion of existing businesses and for the development of new commercial space and new residential units.
2. Commercial and residential rehabilitation, using loan programs. The opportunity for private, as opposed to public, development should be encouraged.
3. Relocation of businesses and residents back into the district.
4. Demolition of some structures.
5. Construction of additional parking to allow increased commercial usage of other land.
6. Construction of streetscape improvements along Lake and Chicago.
7. Redevelopment priority should be given to the intersection of Chicago-Lake.
8. Priority method for relocation should be that timing of new development should provide relocation opportunities for residents and businesses within the development project to the greatest extent possible.
9. The use of public funds to leverage private funds is encouraged.
10. Property can be acquired for private redevelopment only after a developer for that property has been designated and a redevelopment contract has been executed.

Guideline Eight: Reuse of Real Property

Properties acquired under the redevelopment plan will be re-used in accordance with the Land Use Plan and the City's Comprehensive Plan.

Guideline Nine: Operation of Project after Completion of Improvements

Maintenance and security of new and improved properties will be the responsibility of individual property owners. Similarly, the maintenance of streetscape improvements will be the responsibility of abutting property owners.

Guideline Ten: Affirmative Action/ Women and Minority Business Enterprise Plans

It is the policy of the City of Minneapolis to provide equal employment opportunities without regard to race, color, national origin, religion, sex, age, disability, affectionate preference, or status with regard to public assistance to all areas of employment, including recruitment, employment, job assignment, training, promotion, transfers, rates of pay, and all other forms of compensation and benefits.

Developers and construction contractors who participate in redevelopment activities will be required to practice Affirmative action and fulfill the CPED Affirmative Action checklist goals, to develop and implement women and minority interest in business enterprise plans.

Business ownership and management by, and employment of, neighborhood and community residents should be encouraged.

Guideline Eleven: Job Development

Development proposals will be evaluated according to the extent to which new employment opportunities are provided. Developers and business owners who participate in redevelopment activities are required to comply with the provisions of City Council Resolution 80R- 186 and develop a plan to provide unsubsidized employment and training for low-income Minneapolis residents. In evaluating proposals of competing organizations, preferences will be given to organizations having a demonstrated record of hiring minority and low-income persons. Developers and business owners will be encouraged to cooperate with existing social service agencies and neighborhood groups to develop employment opportunities and identify potential employees among the City's minority and low-income residents.

A priority for the employment of neighborhood residents is encouraged.

Guideline Twelve: Relocation

When specific properties are identified for acquisition, estimates of the extent to which relocation of existing businesses and residents, relative to cost and desirability, will be necessary. CPED will provide relocation services and assistance for families, individuals, and businesses displaced by public action, in accordance with the project relocation plan and with local, state and federal laws and regulations.

The displacement of residents should be avoided whenever possible. Where displacement is necessary, relocation benefits should be given. Displaced persons should also be assisted in relocating in the neighborhood, if residents are so willing. They should give preference for new and rehabilitated housing units. Wherever possible, housing structures should be relocated to suitable vacant sites.

Guideline Thirteen: Citizen Participation

The Chicago-Lake Project Review Committee has been designated by CPED as the project area group for this proposed redevelopment project. This Committee was formed in January 1982 and has met regularly with CPED staff to formulate these Guidelines. The Committees membership of 27 consists of representatives of the business community and surrounding neighborhoods.

Guideline Fourteen: Project Financing

A. Financing Plan

A financing plan was developed as a part of the Chicago-Lake Redevelopment Plan. The July 26, 2002 Lake Street Tax Increment Financing Plan found within the Developer's Packet includes:

1. Statement of project objectives.
2. Identification of properties to be acquired (definite and conditional acquisition).
3. Estimate of project costs.
4. Description of amount and type of bonded or other indebtedness to be incurred.
5. Estimate of captured assessed value.
6. Analysis of the project's tax increment financing on other taxing jurisdictions.
7. Duration of the project.
8. Identification of private financing sources for developer costs.

B. Funding Sources

All potential sources of funding for project activities will be explored and pursued where appropriate. These probably will include, but are not limited to: CDBG funds, NRP funds, assessment bonds, revenue bonds, and tax increment general obligation bonds. The objective in using any public funds will be to leverage the maximum amount of private investment in the project area, with the minimum possible negative impact on the City's financial resources.

Public financing will be at minimum required levels for minimum periods of time. Methods by which CPED could recapture public costs from the private sector at some point during the life of the development will be explored and implemented where feasible.

Financial assistance may be available to businesses, property owners, and developers through the Small Business Administration's business loans and loans to local development corporations (SBA Section 503), CPED's commercial rehabilitation loan program, the sale of industrial revenue bonds by the City, and any other appropriate programs. Streetscape improvements will be financed through special assessments against benefiting property owners.