A stone’s throw from Lyndale
Avenue and Lake Street lies the site of a three block 220-unit
housing project that represents the future of urban housing
development. Adjacent to the Greenway and reinforcing its
north-south crossroads, the Urban Village project is focused
on building transit-oriented development that supports
higher density housing and attracts a variety of incomes.
Laying the Foundation
The concept of Urban Village
was conceived as part of an extensive community-based planning
project headed by Council Member Lisa McDonald that identified
the three block area along 29th Street, between Aldrich and
Dupont Avenues, as a significant opportunity for residential
development. “These three blocks were currently being
underutilized and represented poor land use with immense potential,” recalls
McDonald. “The possibility of redeveloping this land presented
the opportunity to increase the value of the property, but
more importantly, to develop an urban housing design that would
revolutionize the Midtown Greenway.”
Caren Dewar of Dewar and Associates was brought in as a development
consultant who, upon the creation of the Midtown Community
Works Partnership, was asked to guide management of the project. “Early
on, the design team wanted a variety of building types and
architectural styles, so three different developers were hired
to work on the project,” Dewar said. “This was a
path breaking opportunity and our vision was of a neighborhood,
not a project.”
The stage was set and the vision was clear. The Urban Village
project was quickly becoming a top development priority of
the MCW Partnership, though the project was facing considerable
hurdles. “The project presents unusual challenges,” Dewar
recognized. “Special care and strong support will be necessary
in relocating the businesses that currently occupy land on
the site.”
The Capital Investment Fund
Even though developers were
to pay market value, the cost of facilitating all of the necessary
preliminary steps exceeded the value of the property and presented
a substantial obstacle. The redeveloped land would eventually
be mixed income property of high architectural quality and
property values were all but assured to increase, but the cost
of clearing and acquisition of the land was due upon the commencement
of development. The City of Minneapolis approved a redevelopment
district for the project thus providing tax increment financing
for the land assembly activities, including acquisition, relocation
of existing property owners, demolition and site improvement.
However, the City will not issue bonds to be repaid with the
tax increment proceeds until construction of the project is
fully underway. This presented a financing gap that would require “bridge” funding
to get the project from development plans to actual construction.
To address this need, the MCW Partnership Finance and Land
Assembly Committee, chaired by Wells Fargo Chairman and C.E.O.
Jim Campbell, developed the Capital Investment Fund. Under
Campbell’s leadership, the Committee undertook the incredible
effort of raising $8 million in investments from both public
and private sources. Investors will be repaid in 3-4 years
once the City’s bonds are sold, or allow their investment
to be utilized for subsequent projects. Mayor Sharon Sayles
Belton believes that this Capital Investment Fund represents
an investment-funding prototype that can be replicated throughout
the Corridor. “I am grateful to Jim Campbell for his leadership,” she
noted. “This is a great example of true public-private
partnership.”
Looking Forward to the Future
Upon its completion, Urban
Village will be a role model for urban housing development
in the new millennium. Facing the Greenway, Urban Village provides
a view to the park amenities and walking paths outside one’s
front door while inviting neighborhood residents to partake
in all the Greenway has to offer. The multi-modal transit connections,
including the future link of LRT to the airport and the Mall
of America, present the opportunity for people to live a quality
lifestyle independent of auto transportation.
“
Urban Village exemplifies Smart Growth,” said Met Council
Chair Ted Mondale. "It provides more choices in where
people live, and how they move around, with access to transit
options. Urban Village is a great project, due largely to the
work of an amazing public-private partnership."
The Urban Village project is a truly dynamic model of visionary
development coupled with innovative and unconventional investment
funding. It serves as the blueprint project leading the way
for development throughout the Corridor and represents all
that is possible to come. |
New mixed-income housing fronting
on the Greenway between Aldrich and Dupont Avenues.
|
