WHEREAS, the public and private members
of the Midtown Community Works Partnership and the Phillips
Partnership (hereinafter “Partnerships”) have
collectively invested nearly $500 million in the Phillips
neighborhood and Midtown Corridor, including the construction
of a new heart hospital at Abbott Northwestern, the acquisition
of the Honeywell headquarters for a new Wells Fargo Mortgage
campus, housing improvements, job training, crime prevention,
construction of the Midtown Greenway, and the reconstruction
of Lake Street; when combined with additional investments
in Light Rail Transit and other transportation improvements,
over $1 billion is envisioned in public and private investment
for the Phillips neighborhood and Midtown Corridor by the
year 2008;
WHEREAS, the Sears building is the largest building in the City of Minneapolis,
reflects a magnificent Art Deco historic design, and has stood vacant since
1994; and the members of the Partnerships envision the successful redevelopment
of the Sears site as a powerful catalyst to revitalize the Midtown Greenway – Lake
Street Corridor and the Phillips neighborhood;
WHEREAS, the Partnerships seek to lend their collective planning and investment
experience to the Sears redevelopment proposal selection process in order to
provide review and comment on the proposals to the City of Minneapolis;
WHEREAS, the Partnerships have devoted considerable resources to research,
hearing presentations from the redevelopment proposers, and study of their
specific proposals, including a staff study work session on September 3, and
a joint Partnerships meeting on September 11;
NOW THEREFORE BE IT RESOLVED by the Midtown Community Works Partnership and
the Phillips Partnership that the following comments are offered to the City
of Minneapolis for consideration in the selection of a developer for the Sears
site:
Finance and Economic Development
1. Further financial scrutiny: Given
the large scale of this project and the lack of success
with previous attempts to redevelop the Sears site, selecting
a financially sound proposal is paramount. The Partnerships
urge that the City intensely scrutinize the financial experience
and expertise of each team and its capacity to complete
a project with the financial needs of the complexity and
scale of the Sears redevelopment project; it is important
that the selected developer demonstrate sufficient net
worth, past experience in large scale development projects,
and assembled expertise to indicate that the development
and operating pro formas are feasible and realistic. It
should be expected that the selected developer will be
required to provide significant financial guarantees for
at least a portion of the development sources of revenue.
Accordingly, the net worth of the developer, past experience
in development projects of a similar scale ($100 million),
and a careful and thorough assessment of the financial
and other risks in the project, are important considerations.
Housing represents approximately 30 – 40% of the
total project budget for three of the developer proposals
(Comote, Fine, and Ryan). The use of Low Income Housing
Tax Credits, Historic Tax Credits and other established
sources of housing development revenue would indicate that
this component of the project poses relatively low financial
risk to the developers. The critical financial questions
concerning the housing component concern the nature of
the rental housing market, and the particular sectors of
that market (seniors, work force, artist live-work space)
targeted in the respective proposals. The hotel component
of these three developer proposals is the component presenting
the greatest financial risk, and operating challenges,
and hence require the most significant equity commitment
and operating expertise. Comote’s proposal would
sell a hotel pad section of the site and provide for independent
development of the hotel. The Ryan and Fine proposals envision
partnership with the Sheraton and Radisson Hotel groups
respectively. Ryan has interests in two hotel projects:
a 100% ownership in a Radisson in Moline, Illinois and
a 50% interest in a Radisson project in San Antonio, Texas.;
2. Jobs: Three of the four proposers have estimated that their projects
would create between 1500 and 2500 jobs (Fine, 1500-2000 jobs; Ryan, 1780 jobs;
Comote, 2500 jobs). The Partnerships urge that the City pursue a development
agreement that envisions access of neighborhood residents to these jobs through
such initiatives as “100 Hard Hats” or other similar programs designed
to provide access to living wage, construction jobs for community residents
and persons of color; that they include a mix of commercial retail opportunities
in an international ethnic market, including opportunities for “start-up,” “step-up,” and
established businesses; and that medical office opportunities for skilled workers
be pursued in tandem with established training initiatives;
3. Leverage: The Partnerships urge the City to assure that investments
in existing businesses at Lake and Chicago (e.g. northeast corner) be preserved,
and that the selected developer fully integrate the planning and design of
their project into the planned reconstruction of Lake Street, and proposed
transportation improvements such as the I-35W Access Project;
Meeting Community Needs
4. Safety: The Partnerships find that most of the proposals envision
significant street-level retail and pedestrian activity, and that the successful
redevelopment of the Sears site generally can be a catalyst for significant
neighborhood crime reduction. Specific design elements of structures over the
Greenway, such as an atrium or glass walls, provide safety benefits through
additional “eyes” on the Greenway. Nevertheless, the Partnerships
request that the City continue to highlight the importance of Crime Prevention
Through Environmental Design (CPTED) principles, and pursue a more explicit
crime prevention plan as part of the project, so that the security plans for
the Sears complex are fully integrated with existing crime prevention and enforcement
initiatives in the Chicago-Lake area;
5. Housing: The Partnerships find that three of the four proposals
(Fine, Ryan, and Comote) clearly demonstrate a meaningful commitment to including
affordable housing in their development, but that much greater clarification
is in order to ascertain how the particular housing mix proposed meets market
demand for housing at this site in this neighborhood. Further, the City should
seek assurance that an appropriate, diverse mix of housing opportunities are
created that match the array of financial tools and resources available for
this project.
Sustainable Design
6. Lake Street Orientation: The Partnerships urge that the redevelopment
of the Sears site be designed so as to highlight the Lake Street “front
door” of the development, highlighting Lake Street as a prime regional
destination of vibrant commercial activity, and supporting the growth of all
of the businesses along Lake Street.
7. Lake Street – Greenway Connection: The Partnerships find
that it is essential for the developers to integrate successfully the street-level
commercial activity on both east and west sides of the Sears building, pedestrian
and bicycle access between Lake Street and the Greenway, and transit accommodations
for both the Metro Transit Hub and a future streetcar station. The Partnerships
urge that further design elements such as sight lines, landscaping, and public
art draw attention to the connections between Lake Street and the Greenway.
8. Greenway Orientation: The Partnerships urge that the redevelopment
of the Sears site create a premier interface with the Midtown Greenway, by
including design elements such as publicly accessible open space adjacent to
the Greenway’s cycling and walking trails, strong sight lines looking
into the Greenway and an atrium in the 1964 building, landscaping and public
art in and visible from the Greenway, minimal use of north-facing retaining
walls in the area south of the Greenway trails between Chicago Avenue and the
train shed, and minimal surface parking adjacent to the Greenway.
9. Transit Orientation: The Partnerships find that the Chicago-Lake
intersection will grow intensely as a major transit hub, and that this hub
must be fully integrated into and supported by the Sears site design. The Metro
Transit Hub works best for transit operations and for neighborhood pedestrians
and bicyclists if sited closer to Lake Street than to the Greenway. Further,
the Partnerships urge that the future development of the Midtown Greenway streetcar
be incorporated into the project so as to provide for a future streetcar station
in the vicinity of the existing train shed.
10. Public Art: The Partnerships urge that the Sears site design include
a public art program that includes planned interface with the new Chicago Avenue
bridge over the Greenway; permanent and temporary Greenway public art exhibition
opportunities, and interior space in the Sears complex for community-based
art exhibits or performances.
APPROVED: September 11, 2003
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