Strong Local Economy : Development News

A century-old building on Saint Paul's East Seventh Street, which has sat empty for nearly a decade, could soon be redeveloped to include office and retail space along with loft-style apartments.

Covenant Capital, a local developer that specializes in residential properties, plans to renovate the two-story brick building, which previously housed a cigar factory, a bowling shoe manufacturer, and a police station.

Ben Hosfield, a spokesperson for Covenant, says, “It’s kind of a property that’s been unnoticeable over the years,” explaining that a couple of other buildings, including a former discount tire store, covered it up.   

However, the tire store building will soon be torn down. “That will open up the space to the property,” he says. “Something could be done with that large space further down the road. It’s a big lot.”   

Although the project’s details, including the cost, are still coming together, it’ll likely take $340,000 to make the building meet modern code requirements, the Pioneer Press reports.   

To fit the building’s historic character, Covenant wants to add an exterior awning to the entryway. That will be subject to approval by the city’s heritage preservation commission, as the building belongs to the Dayton’s Bluff historic district, Hosfield says.

Potentially, there could be a restaurant on the main level, or some other type of storefront retail. Office suites, which will be built to suit, and apartments will go on the second floor, while a basement level, which the police had used for a gym, could become storage space or some other type of amenity. “’It’s a matter of how do we use that space?’” Hosfield says. “It’s still in question.”
 
Construction will probably start next year.

With other projects underway nearby, “We’ve seen the neighborhood start to redevelop,” he says, adding, “We hope we’re part of the neighborhood coming back.”

Source: Ben Hosfield, Covenant Capital
Writer: Anna Pratt  

In the future, St. Paul could once again have a streetcar system.

Right now, the city is weighing its options, with the help of a San Francisco consulting firm, Nelson\Nygaard, which is conducting a feasibility study on the topic, according to Nancy Homans, a policy advisor to Mayor Chris Coleman.

The study, which will probably take a year to complete, entails “doing preliminary work around possible routes and identifying criteria by which we’ll evaluate both the geometrics of the street and transit ridership issues," she says.

Funding for the $250,000 study comes from the city, Ramsey County, the Central Corridor Funders Collaborative, the McKnight Foundation and the Saint Paul Foundation, according to Finance and Commerce.

Over the next year, the city, with the help of the consulting firm, will also be asking for feedback from the public on its findings.

The city’s streetcars went away about 40 years ago. “It was once a well-developed system,” she says.

The reason streetcars are coming up these days is because “They are a good transit type of vehicle. People appreciate the fixed route,” she says, adding that the economic development impact has also been demonstrated.

“They support the business node and link into the larger regional system,” she says.

In this case, the city hopes that streetcars will build on the coming Central Corridor light rail transit line.

This is something that cities around the country are looking at. “The conversation has been, ‘how we do improve transit in the city,’” she says, adding, “I think this is a logical next step.”  

For St. Paul, getting there means working closely with Minneapolis, which already did its own feasibility study, and other regional partners to figure out financing. “We want to work together on common issues,” she says.

Source: Nancy Homans, policy advisor to mayor Chris Coleman, city of St. Paul
Writer: Anna Pratt





 

After undergoing an extensive renovation, earlier this month a hotel near the University of Minnesota’s Twin Cities campus rebranded itself as The Commons Hotel.

Rockbridge Partners in Ohio took over the 304-room hotel that was once a Radisson, last March, according to the Star Tribune.

Although she didn’t have an exact figure, Christa Hudson, a spokesperson for the project, says millions of dollars went into converting the place into a boutique hotel.

To do so, Noble House Hotels & Resorts, the hotel’s management company, drew inspiration from the locale, she says.  

Noble House wanted to “translate more of the area and reflect Minneapolis,” she says.

The result is a kind of industrial schoolhouse look, or “geek chic,” that relates to the backdrop of the nearby University of Minnesota-Twin Cities Campus. “The whole aesthetic is about learning and discovering,” she says.  

Design aspects like an argyle pattern that runs throughout the building, leather-upholstered furniture, a library lounge, and a fire pit create a studious yet comfortable feel, she says.

Also, the hotel will be offering special events like "alchemist mixology" lessons, “Words with Friends”-themed happy hours, and promotional packages with area cultural institutions.

These include a “geek to chic makeover at the Aveda Institute headquarters, Science Buzz meeting at the Science Museum of Minnesota, personal story and book creation at Loft Literary Center and tour of the world’s largest Sherlock Holmes exhibit at the University of Minnesota,” a prepared statement reads.  

The idea is to encourage people to explore the area, Hudson says.

Additionally, the hotel’s restaurant, the Beacon Public House, which will open in November, will be a gastropub with a locally sourced drink and food menu. Besides serving hotel guests, it’ll be a draw for people who live in the area, she says.

All in all, “The idea is that it’s not just me staying at The Commons,” she says. “It’s me in Minneapolis.”

Source: Christa Hudson, spokesperson from the Zimmerman Agency for The Commons Hotel
Writer: Anna Pratt

Marie Philippi, a self-taught baker who co-owns the Taste of Love Bakery, had been working out of a commercial kitchen in New Hope for nearly a year when she decided to find a permanent home for the business.

The custom bakery plans to open in the next few weeks at 870 Dodd Rd. in West St. Paul, where it straddles several St. Paul neighborhoods.

Often, she passed by the corner building at the intersection of Annapolis, Dodd, and Chariton streets, which had long been a revolving door for various businesses.

Even before she was looking for retail space, Philippi, who lives nearby, wondered what could be done at that corner to turn it around. At one point, the building faced condemnation. “The corner is busy and it had potential,” she says. “I know there’s a lot of people out walking all the time.”

However, getting the space up to par was an ambitious undertaking.

For starters, the building’s façade needed a facelift, while inside, everything had to be gutted — a $25,000 project, she says.  

Previously, the building’s exterior had cracked stucco, while rotten wood and overgrown trees also caused problems.

Inside, floors had been in disrepair, walls were filled with graffiti and the windows were painted green, “So nobody could see in,” she says.  

New electrical systems and plumbing had to be installed. Furthermore, the bakers are joining two separate spaces in the building. “We’re cramming a lot into a small building,” which is 2,400 square feet, including the basement, she says.  

To keep costs down, “We bought a lot of things used,” she says. “We’ve refurbished those things.”

Also, she was able to raise $8,000 for equipment through an Indiegogo online campaign.  

Ultimately, she sees the bakery as a destination for area families, which she says is a huge need in this part of town.  

As such, the bakery includes a play area for children, along with child-sized furniture and kid-friendly menu items in addition to the retail area and lounge. “I wanted a kid-friendly space and an area where you could come to relax or work,” she says.  

Source: Marie Philippi, co-owner, Taste of Love Bakery
Writer: Anna Pratt

The Broadway, named for its location at 945 Broadway in Northeast Minneapolis, had a groundbreaking celebration last week.

Local developer Peter Remes and his company, First & First, LLC, are behind the $4 million renovation of the former Twin City Paper building, according to the Star Tribune.

It’s a classic warehouse with large windows, hardwood and polished cement floors, brick walls, high ceilings, old-growth timber beams and more, according to the related Java Properties website.

So far, building tenants include 612Brew and Sevnthsin, a digital creative company, which will be joined by other to-be-determined firms and a café and fitness center, according to the Star Tribune.

The Broadway will also have special features such as a vertical glass gallery showcasing artwork, an outdoor greenspace with an amphitheater and water fountain that includes stones salvaged from the old Metropolitan Building, which once stood in downtown Minneapolis, the story states.

City Councilman Kevin Reich says the project “fits in well with the redevelopment efforts in the area around some older brick and timber manufacturing buildings.”

He’s glad to see this type of project on a prominent corner that serves as a gateway into the neighborhood. “The developer is doing a polished job,” with a generous courtyard and commons area, he says, adding, “It shows real insight from the developer to create a sense of place.”  

The mixed-use project brings together light industrial uses with creative ventures, a move that complements the Northeast Arts District, he says.

It’s part of an emerging brew district that includes the Dangerous Man Brewing Co., Indeed Brewing Company, 612Brew and Northgate Brewing. “It’s the idea that the whole is greater than the sum of its parts,” Reich says.  

The project is planned to wrap up in 2013.

Source: Kevin Reich, city council member, Minneapolis
Writer: Anna Pratt

On Oct. 11, MidModMen + friends, which previously had an online-only presence, opened at 2401 University Avenue West in St. Paul.

MidModMen offers vintage and modern home décor, including furniture, lighting, and decorative items, its Facebook page reads. The shop is open on weekends and for special events.  

Over the past year, the space had been used as a pop-up shop, as a part of a collaboration of the Starling Project and Saint Anthony Park Community Council.

The Starling Project brings together entrepreneurs, artists, and small organizations with building owners for “meanwhile uses” of vacant storefronts and spaces along University Avenue during Central Corridor light rail construction, its website reads.

Neal Kielar, who co-owns MidModMen with Jon Mehus, found the space with the Starling Project’s help. 

The 1,200-square-foot space seemed like the right fit, and it helps that it’s part of the neighborhood's in-progress Creative Enterprise Zone.

Several other similar stores, including Succotash, are nearby. “We’re part of this concentration of retailers that deal in vintage furniture, décor, art, ephemera and kitsch,” he says. “Synergy seems to be there.”  

The store plans to stay in the space through the end of the year, though it could stick around longer if all goes well, according to Kielar.

“We’re finding ourselves part of the revitalization of an important commercial corridor,” he says. “It feels like how Northeast [Minneapolis] felt 15 years ago.”

He was pleasantly surprised by the amount of foot traffic in the area. Already, the store has had strong sales. “We’re happy with the way it’s working out,” he says.  

The store is going for a friendly, personable vibe, where “You can hang out and talk and learn new things,” he says, adding, “Shopping doesn’t always have to be about purchasing.”  

“We have a certain aesthetic or design point of view and we love when people share an interest or passion in that,” he says.
 
Source: Neal Kielar, co-owner, MidModMen + Friends
Writer: Anna Pratt

Just over a week ago, the Butter Bakery Café relocated blocks away from 36th and Grand Avenue in Southwest Minneapolis, to 37th and Nicollet Avenue.

The bakery is planning a grand opening for Oct. 23 in collaboration with the Nicollet Square building, for which it’s a partner, according to owner Dan Swenson-Klatt.

Butter is housed within the three-story Nicollet Square, which provides supportive housing for young people who are at risk for homelessness, along with a chiropractor and the nonprofit organization, Twin Cities RISE!, which deals with job training.

As a part of that partnership, the bakery has taken on a couple of apprentices who live in the building, and it plans to bring on two more young people in the near future, he says.

“I’ve always thought of this as more than a little coffee shop,” he says. “This gives me more of that feel, that it’s part of something bigger.”   

However, the bakery is still getting settled into the space. It’s a bit like moving into a new home, “where you live out of boxes for awhile,” he says.

So far, the change has been good. He’s hearing from regulars that “It’s so big and so bright,” in comparison to the old space, but “It still looks like Butter.”  

Before, the bakery was too cramped, both in terms of seating and space for running the bakery and grill at the same time.

Now, people can opt for the more informal café area of the bakery or they can go for the dining space. “No one has to feel like they’re being pushed out,” he says.

The space, which started off as an empty shell, was designed specifically for Butter, with room for growth.

One custom touch that he hopes personalizes the space includes two murals that line the restroom walls.

The murals picture the countryside surrounding the creamery where the bakery gets its butter and the scene outside of Butter’s door. “It’s a way of connecting with the Butter community,” Swenson-Klatt says, adding, “We were always meant to be a neighborhood spot.”  

In the future, he hopes some sort of garden might spring up on the empty lot behind the building.

Source: Dan Swenson-Klatt, owner, Butter Bakery Café
Writer: Anna Pratt    

A long-vacant industrial site in Southeast Minneapolis is a serious contender for the $20 million destination brewery that Surly Brewing Co. is planning.

Surly, which is based in Brooklyn Center, is doing its due diligence on the “Malcolm Midway site,” as it's called, near Highway 280 and University Avenue.

The site makes sense for the brewery because it’s centrally located between Minneapolis and St. Paul, and it’s close to biking and walking trails and public transportation, including the coming Central Corridor light rail line, a company statement reads.

Also, the site is “zoned and sized well” for the project, and it fits in with the neighborhood’s master plan for redevelopment of the area, the statement adds.

However, the site was once the home of a food processing plant and has had numerous other industrial uses through the years; it requires significant environmental cleanup.

Surly has applied for grants to cover this cost, a process it expects to wrap up in January. In the meantime, the company continues to explore other possibilities as well. “This is a 100-year decision so we are being mindful, patient, and thorough with our search,” the statement reads.  

The brewery has been well-received by many stakeholders because “it will result in jobs, it will help refresh the area, and it will be a community gathering point for generations to come,” it states.  
 
Dick Gilyard, who is active with the Prospect Park East River Road Improvement Association (PPERIA), says that the neighborhood group has endorsed the preliminary plan.

Many community members want to see a rich mix of uses in the neighborhood, which includes the industrial lot that Surly is looking at. The idea is that the arts, science, housing, an historic district, and more, could come together to “make the entire area a destination,” he says, adding that Malcolm Avenue is a gateway to the area.

PPERIA has been proactive about its vision for the area, including the positioning of the Central Corridor light rail station, something that has implications for the brewery as well. Ultimately, that vision is “based on respect for the existing historical neighborhoods,” close to University Avenue, he says.

“Our big thing is that sites need to be planned collectively,” he says, adding, “So it’s mutually reinforcing.”  

If Surly does come to the area, it could demonstrate “what transit-oriented development can be like, with high-density attractions and uses and workplaces and living spaces [near] the line,” he says. “We’re very optimistic about this evolving in a way we’re all pleased with.” 

Source: Dick Gilyard, PPERIA
Writer: Anna Pratt

The Coffee Shop Northeast, named for its Minneapolis neighborhood, recently wrapped up an expansion project that more than doubled its square footage.  

Rich Horton, an owner of the coffee shop, says the expansion was much needed. “We were getting so busy, we were packed and there’d be no place to sit,” he says.   

That, along with the idea of growing the business, prompted the owners to take over the space that opened up when the neighboring tenant, EMI Audio, moved to Robbinsdale. The additional room, which gives the coffee shop over 2,000 square feet compared with the 800 square feet it had before, allows for occasional events, such as poetry readings and live music.

A physical separation between the old and new space gives people the flexibility to take part in events or to choose a quieter nook.

In addition to new tables and chairs and couches, a 12-seat community table has already turned out to be popular among large groups.  

The coffee shop was able to expand its kitchen and add storage space as well. Horton says that food items have been more in demand than he would’ve guessed when they were added to the offerings at the coffee shop, which the owners took over from Audubon Coffee two years ago.

The shop also added a decorative brick wall, which gives it a more finished look, he says.
The newer area is yellow and a light shade of brown, creating a subtle change in mood from the storefront area, which is green and brown, according to Horton.

Although he couldn’t give an exact figure, the project, it totaled more than $50,000, he says.
 
“We’re really happy with how it turned out,” he says, adding that feedback from the community has been positive.

Source: Rich Horton, co-owner, Coffee Shop Northeast
Writer: Anna Pratt

This summer, a group of students from Minneapolis Community and Technical College (MCTC) transformed an empty lot downtown into an urban farm.

A number of students who were interested in gardening started up the MCTC Urban Farm Collective, which is extracurricular, according to Katherine Kragtorp, the group’s advisor.  

Although it’s tough to find a spot to garden downtown, the student group, which has 11 core members, connected with Brian Short, a private landowner. He let them use a vacant lot alongside Gethsemane Episcopal Church for the urban farm. 

The students began working the land earlier in the summer, putting in long hours and even expanding Gethsemane’s small garden nearby. “It really was mind-boggling what these students did, coming together, wanting to make this work,” she says. 

Today, the greenspace is divided into a community garden and a separate area for six-foot-by-six-foot individual plots. It also has a butterfly-shaped sensory garden that’s filled with herbs and a children’s section.

In the community garden, which has all kinds of fruits and vegetables, including squash, carrots, beets, pumpkins, raspberries, tomatoes, beans, and more, “The goal is to raise food and get fresh produce to those experiencing food insecurity,” she says. “They want to make it part of the community.”  

The students are working with the church to provide fresh produce to its weekly food shelf. Already, the group has donated more than 500 pounds of food to the food shelf.

Even passersby have gotten involved. “What’s neat about this is that it’s a point where the community can come together and make connections with [people from] all different backgrounds,” she says.

Soon, the urban farm collective hopes to set up “hoop houses,” or miniature greenhouses, in the garden, to extend the growing season, she adds.

Source: Katherine Kragtorp, MCTC’s Urban Farm Collective
Writer: Anna Pratt

A group called Cash Mob St. Paul emerged earlier this summer as a creative way to support local businesses.

Although a cash mob is similar to a flash mob, it’s not about breaking into dance in an unexpected venue, but bringing businesses an influx of paying customers. In some ways, it builds on the "shop local" trend, explains the group's founder, a blogger who uses the name Ima B. Musing.

“The Cash Mob is about being conscientious about where the dollar goes,” she says. “We want to spend it on local entrepreneurs.” Those mom-and-pop businesses, with smaller profit margins, deeply appreciate the edge, she says. “One nice thing is that you can literally see the impact you’re having,” she says, adding that it cycles back through the community.   

In starting up the group, Musing was inspired by Cash Mob Minneapolis, which she used as a model. She wanted to expand its reach into the east metro area, she explains. So far, the 172-member St. Paul group has “mobbed” Homi Mexican restaurant, Something New in the Park gift shop, Midway Book Store and On’s Kitchen Thai Cuisine.

“I checked and each of the businesses have reported an uptick in business,” she says.   

Mob events have specific meeting times, but people can visit a business according to their own schedules, too. Musing spreads the word through various social media networks, including Facebook, Twitter, and Meetup.

For those who have shown up at the event time, “I’ve found that people seem to enjoy the social aspect,” she says.  

The rules are pretty open-ended, but participants are encouraged to spend around $20 during each mob.

The group’s next event is planned for Oct. 23, though the details are still being worked out.

In general, the group wants to spread the wealth. “We want to move it around,” Musing says, adding, “There are so many wonderful businesses all over the place.”

Similar groups have popped up elsewhere, including ones that focus on vegetarian fare and Minnesota-made products. “I think the more the merrier,” she says, adding, “I’m just doing this as a volunteer, as kind of a civic duty,” she says.


Source: Ima B. Musing, blogger, St. Paul Cash Mob
Writer: Anna Pratt

This summer, the Logan Park Neighborhood Association (LPNA) in Northeast Minneapolis organized a task force to preserve a vintage brick building that previously housed the main office of the Minneapolis Public Schools.

The school district recently moved its headquarters to a new $41 million facility in North Minneapolis, according to MPR.

Over the past couple of years, LPNA has brainstormed the possibilities for the old building at 807 Northeast Broadway.

Pat Vogel, who co-chairs the task force with LPNA leader Paula Allen, says “The neighborhood group is very interested in what happens to the building,” adding, “It represents a major chunk of property near our homes.”

Some ideas they have floated, informally, include a full-service health clinic, a fitness center, a small-business incubator, and a commercial kitchen, she says. Although their ideas vary wildly, “The essence of it is that we would like to see something that provides opportunities and resources,” such as jobs or services, she says.

Right now, the school district is working with the city’s office of Community Planning and Economic Development (CPED) on a plan for the building. “We’re hoping to be a part of the process,” she says. “We want to work with CPED to come up with a mutually beneficial solution.” The neighborhood group favors keeping the building as opposed to tearing it down and rebuilding on the site, she says.

Ryan Cos., which assessed the building’s condition earlier on, concluded that it was in good shape, and that it was more cost-effective to rehab it, she says. At this point, however, it’s too early to say what might happen with the building, she adds.

The school district is still packing up some of its offices in the building, while CPED is doing its due diligence for the site.

In the coming weeks, a marketing plan that incorporates the neighborhood’s feedback will be out, she says.    

Also, a class at the Minneapolis College of Art and Design is joining in the planning process. Usually the class deals with global issues, and this will be its first local project, Vogel says, adding that it will play some part in the decision-making process.   
 
“We’re a building with a dream in search of a developer,” she says. “We want a developer that matches our purposes.”  

Source: Pat Vogel
Writer: Anna Pratt

If a proposal to renovate the vintage Hollywood Theater in Northeast Minneapolis “pencils out,” financially, local developer Andrew Volna could make an offer on it within the coming weeks.

For the moment, the theater’s future is still up in the air.

Volna, of Noisland Industries and Apiary Workspaces, is working with Meghan Elliott, an engineer whose company is Preservation Design Works, to come up with a plan to buy the city-owned building.

They sought feedback from community members at a Sept. 10 public meeting with the Audubon Neighborhood Association at the Gustavus Adolphus Lutheran Church.

Right now, they’re still doing their due diligence to figure out whether a rehab project is doable, he says.

However, they wanted to gauge the neighborhood’s response before moving forward.

“It will be an extremely expensive project to do,” Volna says. This has partly to do with the fact that it’s an historic building that comes along with preservation requirements.

At the same time, “There’s significant damage to the inside of the building,” he says, adding, “It’s a theater on the outside only.”

Although it’s unclear what kind of tenant would go into the building, “I’ve always thought of something in the creative industry that would benefit from the unique features"--features that include a large open space and Art Deco design elements.

At the meeting, people were receptive to the idea. “It would be a huge net gain for 29th and Johnson," he says. "The commercial node is stuck until the south end of the block gets dealt with.” In his view, “It could bring business to the area, and bring the south end back to life.”

However, because of the unknowns, he's proceeding with caution, Volna says.


Source: Andrew Volna, Noiseland Industries
Writer: Anna Pratt

A vacant industrial complex in Northeast Minneapolis could soon become a hub for locally-produced artisan quality meats, whiskey, and more.

Mike Phillips of Three Sons Meat Co. is collaborating with Kieran Folliard of 2 Gingers Irish Whiskey on the project.

The concept begins with a USDA-certified dry-cured pork product processing plant, while an office and retail area would complement that.  

Also, “There’s some talk of a micro-distillery down the road,” Phillips says.  

The idea is to put businesses in there that can’t be found elsewhere in Minnesota, he says. “There’s no other salumi plant in the state.”

“A big part is to have a Willy Wonka aspect to it,” with pathways throughout the place so that “people can see how things are made.”

The pair hopes to buy the building, but that’s on hold until an environmental study comes through. “It’s a slow process,” he says. “It depends on a whole lot of variables.”

If it works out, they’ll move on to a “clarification of the vision, including what needs to be there and who needs to be there, how it will be laid out,” and more.   

This is the second time the pair have considered this particular building.

If they do move forward on the building, it’ll mean stripping it down to its shell, replacing the roof, landscaping, and building out the plant.

Early on, Phillips and Folliard identified Northeast Minneapolis as the ideal location. “We wanted to be somewhere where we could be a part of the community,” he says, adding that the neighborhood has been supportive of the plan.  

They hope to have the place in production by next spring.


Source: Mike Phillips, Three Sons Meat Co.
Writer: Anna Pratt

Earlier this month, the Gateway Food Coop received a $10,000 matching grant from the Food Coop Initiative (FCI), a national nonprofit organization that promotes the cooperative economy.

Gateway was one of 10 coops across the country to get the seed funding, according to Gateway information.

The coop, which began organizing last year, wants to bring a sustainable, natural foods coop to St. Paul’s diverse East Side.   

Elizabeth Butterfield, who co-chairs the coop’s steering committee, explains the way the grant works: “For every dollar we spend of the Seed Grant money, we are expected to spend a dollar of our own money.” The money will go toward community outreach and member-owner recruitment efforts, including hiring a part-time community organizer.

Additionally, FCI will provide expertise to the coop, “noting if there are techniques that can be repeated in other similar areas throughout the country,” she says.

This kind of relationship building is important for meeting its goals, according to Butterfield. For example, shortly after finding out about the FCI award, "We were approached by Mississippi Market to compete for a $14,000 gift,” which will be given out in October, she says. “Their members will vote to award the money to three out of five nonprofits that are competing for the funds.”

Separately, Phalen Ovenworks is hosting a wood-fired pizza party to benefit the coop on October 6.

The place also raises money for the coop through bread sales on Sunday nights.  

So far, the coop has 84 members, a number it hopes to grow through events this fall. But at this point, it’s too early to say where on the East Side the coop might be go. The coop has yet to do a thorough market study, Butterfield says.  
 
 
Source: Elizabeth Butterfield, organizer, Gateway Food Coop
Writer: Anna Pratt