January 25, 2006
Redevelopment Committee Members Present: Rosemary Dolata, Margo Geffen, Peter Hallstrom, Mark Hinds, Arthur Knowles, David Motzenbecker, Tom Parent, Marnie Peichel, Ryan Raleigh, Dave Saddoris,
KFNA Staff Present: Joanna Sahlberg Hallstrom
Business/ Community Member Present: Marie Kulide, Bancroft Neighborhood; Chris Rydryck, 18W 38th St development; Ben Kerl and Chris Kennelly, Lander Group Inc.
Introductions: Hinds introduced Marie Kulide, who was attending as a representative of the Bancroft Neighborhood. Bancroft is interested in starting their own Redevelopment Committee and will be observing KFNA’s Redevelopment Committee meetings and speaking with committee members as necessary.
Update on 19W 38th St. :
Chris Rydrych presented his finalized plans for the new construction proposed for 19 W. 38th Street. As noted last month, Rydrych changed the exterior from EFIS to a traditional built (standard 2×6 framing) structure with a stucco and brick exterior. He incorporated brick on the sides of the building indents, inserted glass block windows in the back half of garage and added stucco to the back side of the stairwell tower instead of siding. Rydrych has received estimates for the installation of a few different types of green roof systems. Rydrych is leaning toward a module systems for easier maintenance (i.e., locating leaks) and cost. If installed the green roof would not be accessible to residents – only by view. The first floor has two decks that are inset into building and there is a roof top deck for each of the upper four units. The trash enclosure is still inside building in the new plan and changes were made for easier auto access to lower level garage. Rydrych met with Public Works last Friday and he is developing the landscape plan for the property. Rydrych plans to meet with Planning in the next week for site plan review.
Committee Discussion: All of Rydrych’s changes were well received by the committee. Rydrych confirmed that all units will be sold at market rate (starting at 260k – for a 1300 sq.ft., 2 bdrm unit).
The committee will review Rydrych’s variance requests officially after they are identified and detailed by Minneapolis Planning. Linnes-Robinson is still working on a green roof grant for Rydrych. Dolata will email Rydrych some more leads for green roof contractors.
38 , Lander Group Inc. :
Kennely reviewed variance requests as proposed in a letter sent to KFNA, Councilmember Glidden and emailed to committee members prior to this meeting. In the letter Kennelly stated that Lander Group Inc. has plans to submit their proposal for 38 to the city on Monday, January 23rd. Lander met with Hillary Watson of CPED to confirm the variances and CUPs needed for their development. There are three new variance requests added from what Lander had originally presented to KFNA at the last redevelopment committee meeting. Kennelly emphasized that Lander has made no changes to the plans for 38 since the last discussion with KFNA.
Here is a list of the Variances and CUPs that Lander will need for the 38 development:
Variance 1 – Front-yard setback at Southeast corner. 20′ setback for the first 40′ is required. Lander is proposing a 0′ setback including patio space and two stories for retail space.
Variance 2 – Front-yard setback at Northwest corner. A setback similar to the adjacent property is required for the first 40′. Lander is proposing a 0′ setback.
Variance 3 – Rear-yard setback at alleyway. Required setback is 13′. Lander is providing 12′ wth a protrusion for a pedestrian ramp and residential decks.
Variance 4 – Interior side-yard setback at southern edge of site. Lander will have an electricity transformer and potential air-conditioning unit located in this area.
Variance 5 – Parking requirement for coffee shop use. Lander is seeking to have a 2688 sq. ft. coffee shop in the project. The seating area would require 38 parking stalls under the code. Lander is applying for a variance to only supply the parking that would be required for a normal (non-food) retail uses, which is four parking stalls.
Conditional Use Permit 1 – Height – 5 stories, 59’8”. Four stories of 56′ is allowed under the current zoning. Lander is propsoing a five story building at 59’8″.
Conditional Use Permit 2 – Multi-Family dwelling more than 5 units. Lander is proposing 40.
The redevelopment committee was aware of and approved of #1, #2, #3, #6 previously. Below is the summary of the new items per Lander’s meeting with Ms. Watson:
#4) Variance 4 for interior side-yard setback. Lander will be locating a power transformer and some air conditioning units along the ground on the southern edge of the property. These will protrude into the setback requirement.
Committee Discussion: Kennelly confirmed that transformers and air conditioning units cannot be moved to the roof.
#5) Variance 5 for parking. As discussed with KFNA, it is Lander’s goal to get a coffee shop or café as one of the tenants in the project. Lander thought that it would be best to apply for this variance as part of the planning process rather than going back for it at a later time. Lander is proposing to meet the normal retail required parking not the higher food retail standard.
Committee Discussion: The coffee shop space will be large enough for a restaurant. Lander is planning on installing 3 to 4 public bike racks and the development is located on a major public transit corridor. Saddoris asked about requirement for additional ventilation in the enclosed parking area. Lander confirmed that the parking garage will be ventilated per code.
#6) CUP 2 – Lander just overlooked this one, although this has been the plan and goal of Lander/KFNA all along. A conditional use permit is required for this zoning for any project that has more than 5 residential units. Lander will have 40 units in this project.
Kennelly concluded by requesting a signed letter of support for these additional items from KFNA, as well as a representative to speak at the hearing, which should be on March 6th.
Dolata made a motion to approve Lander Groups Inc.’s variance requests. Knowles made a second. Motion passed unanimously. Dolata, representing KFNA, will attend the March 6th hearing with Kennelly.
Summary of KFNA & Lander Agreement on 38:
Hinds presented the Summary of KFNA & Lander Agreement on 38. The agreement has been approved by the KFNA board in concept and an attorney will work with both parties on a final contract.
The affordable housing and loan will be separate agreements. KFNA will contribute a $40k grant to Lander for 8 long-term affordable housing units. Lander will work with the City of Lakes Community Land Trust to ensure the long-term affordability of the units. KFNA will provide a $160k loan to Lander. The loan will follow a 10-year repayment schedule. Security on the loan will be provided by either a personal guarantee and/or a second mortgage on the property. If a second mortgage is put in place for this loan, KFNA agrees to keep it in a second position if Lander refinances the property. Payment will be due on the January 15th of each year. KFNA will provide the $160k once Lander has secured funding, construction has begun, and the funding becomes available through KFNA’s NRP Phase II program. Year 1 will commence when the project construction is complete and 80% of the units are sold or two years from the receipt of the funds, whichever is sooner. No interest will accrue during the time period from receipt of KFNA NRP funds until the commencement of year 1.
Lander will include the following items in the project:
Opening of bricked-in windows and new storefront windows in the corner building
Well insulated building envelope
Low VOC paints and finishes
Energy Star furnaces and appliances
Vapor Barrier beneath new building
Lander will also contribute funding, equivalent to what they would have to provide for the replacement of the bus stop on the property, toward an Art Bus Stop if KFNA is able to secure funding to cover the incremental cost.
KFNA will be listed as a partner in the project in any materials Lander prepares that include project partners.
It was confirmed that all the funding for the Lander project will be coming from NRP Phase II money.
Hinds made a motion to approve the Summary of KFNA & Lander Agreement on 38. Geffen made the second. Motion passed unanimously.
Storm Water Management –
Lander’s current plan to improve the sites runoff problems includes reducing the alley flooding by installing a storm water tank that will hold and control the water flow, as well as hook up to the drainage system near Shorty and Wags across the street. This will disconnect/redirect the current drainage from sewer to storm water drainage.
Saddoris mentioned that KFNA has been awarded a Mississippi Watershed Management Grant. The Green Committee is working on defining a program will provide technology demonstrations and some grants.
The goal of the project is to demonstrate how cost prohibitive it is to attain the storm water run off management credits. Examples of technology demonstrations include the installation of pervious pavers and rain gardens.
Saddoris invited Lander, who has just started regular green meetings regarding the 38 development, to apply to host a technology demonstration at 38. The application will be due in late April and all projects need to be complete in 2006. Saddoris will be working with Ben Kerl of Lander on the MWM grant.
Ground Breaking –
Lander plans on breaking ground in June 2006. Lander cannot start until they have officially been approved for TIF. Project financing will be done through Bremmer Bank for land and most likely for construction. Lander presents to City Council next week and needs formal letter or representation from KFNA. Hinds will attend and represent KFNA.
Timing of NRP Phase II Funding:
The committee discussion alternative options for Housing Development & Redevelopment strategy funding allocations dispersed over the next six years. Knowles clarified the policy behind moving funding within a strategy and the committee decided to leave the allocations as they currently are presented in the Phase II NRP plan.
Geffen emailed the committee the link for the Neighborhood Guide for Developing Planning for review prior to the meeting tonight. Geffen also presented a corridor study/master plan sample. Geffen has been talking with Jeff Matson of Neighborhood Information Systems who is willing to be a resource for the KFNA Master Planning process. Matson and Beth Elliot, Minneapolis Senior City Planner will be at next meeting. The committee will have them talk about each element to include in a master plan and suggest what other resources KFNA should pursue to start mapping out the process. Volunteers will be asked to get involved in different aspects of the process.
Motzenbecker also informed the committee that Local Commons, another master planning project resource is ready to work with KFNA. To participate the committee needs determine who would be involved / geo scope / possible times for communication / key issues and conceptual areas that people are excited about. The Local Commons project is paid for by a grant. Motzenbecker will send out more information about the Local Commons project.
Minutes completed by Joanna S. Hallstrom, KFNA