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Central Business Dist. Redev.September 18, 1984 • To: Planning and Zoning Commission From: Jim Kerrigan Subject: Central Business District Redevelopment The following summary details various properties being acquired by the Hopkins Housing and Redevelopment Authority (HRA) in the Downtown and the rational behind such purchases. The long -range goal of this effort is to bring a new vi- tality into the Citys' main retail center. This type of effort is consistent with the 1990 Comprehensive Plan which states that "the future renewal activities of the City are projected to consist of scattered site tax - increment financed renewal (rehab or new con- struction) in the residential neighborhoods. Except for small target areas similar to the Industrial Park or North Central Business District areas, most renewal in the next decade will be on a scattered site basis. The initiation for these activites as well as financing is expected to come from both the private and public sectors. Tax increment financing will remain as the primary financing tool ". Basically, the proposed future intended uses for these properties will maintain a commercial /service orientation which is also consistent with the goal identified for the Central Business District in the Comprehensive Plan. 3 -5 -7 South Tenth Avenue 902 West Excelsior Avenue 918 -20 -22 -222 West Excelsior Avenue 9042- 906 -908 West Excelsior Avenue The above parcels are being acquired in conjunction with the redevelop- ment of the entire block of buildings fronting on Excelsior Avenue. Purchase of these buildings gives the HRA ownership of all but two of the buildings on this block. These structures are being purchased as part of what became known as the Block 7 Speciality Block Redevelopment Project. This Public involvement is being undertaken in order to facilitate an overall rehabilitation of the existing buildings in accordance to.specific goals and objectives, which have yet to be detailed. The long -range goal is that this project will act as a catalyst to spawn other private investment in the Downtown. Block 7 was selected to spearhead redevelopment over other areas in the downtown for a number of reasons - a number of the buildings were on the market and, thus, the chances of a condemnation was greatly reduced - this block contains some of the more archetecturally substantial is buildings in the downtown - many of the buildings are in a substantial state of disrepair, and are,if not improved soon, would probably have to be demolished in the not to distant future. Also, in their present state, they create a health /safety concern for both the occupants and the City. 1118184 CBD Page 2 - this block is centrally located in the downtown. To date, the City staff has talked to a few developers and individuals that have expressed an interest in the project. However, as of yet, formal re- quest for proposal has not been formulated. It is anticipated this task will be undertaken fairly soon. The city has contacted an architectural firm Lindberg - Pierce to formulate a concept plan for this block. This work for the most part has been completed. However, at this time there is no specific plan approved which details specifically how redevelopment should or will occur on this block. 715 -717 West Excelsior West Purchase of these properties are being proposed to facilitate the re- development of the block between 7th & 8th Avenue North, with the north /south boundaries being Excelsior Avenue and the abandoned Chicago /Northwestern railroad right -of -way. At the present time the HRA has ownership of two parcels on this block, the old City Hall site and the yellow single family house directly north (15 - 8th Avenue North). The two parcels proposed for acquisition are located in the middle of the block, which makes any comprehensive redevelopment of this area 9mpossTnle. As the structures located on these sites are fairly old it would not seem appropriate to try and incorporate them as part of.any new struc- ture. At present, Rudy Luthers Hopkins Honda has submitted preliminary plans to the City which detail the utilization of the entire subject block for expan- sion of their existing operation. Their plans have already been reviewed on a preliminary basis by the Downtown Main Street Committee, Planning and Zoning Commission and HRA Board. They have now asked Honda Regional Corporate Office for approval to proceed. It is anticipated that a response will be coming in the near future. Should Hopkins Honda not pursue development for any reason, acquisition of the two subject sites will still be appropriate. Public ownership would allow the City to control future development of this area and insure that it complies with the goals and objectives established for the Downtown. Also, it will be easier to generate developers interest if the City is able to offer a parcel which would facilitate construction of a fairly commercial substantial structure and also be able to provide adequate on -site parking. 9 - 9th Avenue South Acquisition of this property was referred to the Commission by the HRA Board. One reason for purchase of this property would be to facilitate redevelop- ment of the Specialty Block. A second reason would be to improve the east -west traffic flow between adjacent parking area. Finally, acquisition would allow the City to remove a structure substantially deteriorated and a blighting influence • on the downtown.