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Memo - Block 64 Redevelpment Project I Economic Development I MEMORANDUM TO: Honorable Mayor and City Council FROM:=(;(}im Kerrigan, Director of Planning & Economic Development DATE: April 11 , 2005 SUBJECT: Block 64 Redevelopment Project Continued discussion of this project has been scheduled for the April 19 work session. Representatives of the developer, GPS Financial Group, will be present at this meeting. The intent is to have GPS provide a brief overview of the project and then allow the majority of time for the Council to ask questions. A few items that the Council may be interested in having GPS provide more detail on are as follows: . Their ability to complete the project as proposed . Specifics of the projectfinancing . Who will provide project financing? What level of commitment has been received? . Will there be additional equity partners for the project? . What is the project time line? . How will funding for the eminent domain process be secured? . What is the status of their negotiation with the Park Plaza owners? . What are additional issues that will need to be addressed? Sid Inman of Ehlers & Associates will be present at this meeting, Block 64 - Neighborhood Meeting March 10, 2005 Meeting Notes 30 - 35 attendees (see attached list) The developer, GPS Financial, gave overview of project. The following is a SUlllffiary of the questions/comments made by residents in attendance: Ouestions/Comments and Response: How many people currently living in block? . 141 housing units How will you help people currently living there? . Eligible for relocation benefits How will you prevent crime/muggings from happening in the courtyard? . Security will be key element. Resident of Park Plaza disputed statement of developer regarding current $250/week rent. Stated rents range from $174-194 with no other costs such as utilities. Park Ridge neighborhood resident voiced concern over proposed height of buildings, Asked about ceiling height. (Height concern voiced by several residents) . Developer unsure of ceiling heights, Indicated that economics were driving building heights; first looked at higher buildings, height lowered to respond to City concerns Resident asked if project would devalue their property? . Developer's agent responded that there was a 7% decrease in values in the downtown last year due to no new development. She stated that her research has shown that owners could expect to see a 16-18% increase in values if a downtown development occurred, Will there be green space/public area? Yes Criticism of franchise retail in Marketplace Lofts and trend for Excelsior & Grand- type facades littering our landscape. . Developer indicated that they would have no national chains in their development. Will have a bookstore; possibly a wine/cheese bar, What will the condo units cost? . Trying to hit $250/square foot price, Resident voiced concerns over traffic on 6th Avenue due to development Park Plaza tenant voiced concerns over displacement - how much notice will they be given? . 90-day notice - Developer indicated that they would be taken care of by Dan Wilson, Relocation Specialist. How long will noise continue if this is a phased development? If values go up, will taxes go up? Wants two developments (Block 64 and the Cornerstone development) looked at together during public meeting. Wants to see the whole picture - doesn't want new development to get out of control. "Having feelings of what's going on here? Had heard of Marketplace Lofts ll...this was a surprise." Will project use TIF? Will there be public hearings? Who is architect and why were they chosen? Suggestion: Buildings higher at Mainstreet; lower at 1st Avenue North. Parking a concern -maybe need to take out some green space; don't want parked on 6th Street. Urged to utilize 5th more. 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