Transit Oriented Development : Development News

A $45 million mixed-use development from the locally based Ackerberg Group will help meet the demand for both parking and office space in Minneapolis' Uptown area.

The 10-story Mozaic development recently broke ground, the company announced in a prepared statement.

Mozaic includes a parking garage that will have 436 parking stalls and 120 surface parking stalls on floors two through seven.

On the top three floors will be 65,000 square feet of "class A" office space, which will help provide more daytime jobs, according to Thatcher Imboden, a company spokesperson.

"We think there's a huge untapped market for office space in Uptown," he says.

The 13,000-square-foot ground level will house restaurant and retail outlets.   

Also part of the development is a public plaza plus a new pedestrian and bike bridge on Girard Avenue that will lead to the Midtown Greenway. "We feel it's a critical connection to Uptown," he says, adding that this aspect of the project was made possible through Hennepin County transit-oriented development dollars.      

Being set back away from the street, the glassy, stepped-back structure will feel more like a mid-rise building, he says, adding that a green wall that will be covered in vines and acrylic panels alongside the parking area "helps soften the building."      

It'll have open floor plans, large floor plates, and "unprecedented views" of downtown, nearby lakes and South Minneapolis.

Funding for the project comes from the Ackerberg Group and MidCountry Bank, and through Recovery Zone Facility Bonds issued by the city, according to company information.

Mozaic will be open by January 2012.

In the future another 100,000 to 150,000 square feet of commercial, residential or mixed-use space could be added. "I think people will be happy with the results," he says.  

     
Source: Thatcher Imboden, Ackerberg Group
Writer: Anna Pratt     





   

Bloomington-based United Properties has a $40 million plan to turn the historic Ford Center in the Warehouse District downtown Minneapolis into an exemplar of sustainability.   

The 1913 building, once a vertical assembly plant for the Ford Motor Company, "will be the crown jewel of the Warehouse District, setting the new standard for renovated historic office properties in the Twin Cities," a prepared statement reads.

Bill Katter, senior vice president with United Properties, says the company's goal is to go for "silver" status through the LEED certification program, which is a high mark from the national standard for green building.   

It helps that the building is so close to the light rail transit line with several more trains to come, he says.

The group is planning to install high-efficiency mechanical systems and implement water conservation strategies, while taking advantage of regional materials, according to Katter. Its windowline, the building's "most significant and distinguishing characteristic," according to the prepared statement, will be restored and not sent to landfill, he says.  
Additionally, the 5th Street entrance will be reminiscent of the original, while the lower level will have 25 parking spaces plus a fitness center, Finance and Commerce reports.  

HGA Architects, which will do the design work on the project, is moving from a building a few blocks away into the Ford Center, where it will take up about 80,000 square feet of the 270,000 square feet total.

Jason Sandquist, a brokerage associate at Adam Commercial who writes about the Minneapolis real estate market on the group's blog, Positive Absorption, makes the point that the building's renovation can be seen as "one of the first economic impacts that the new Twins ballpark has brought to the area," following several years of a slowdown in development.

Source: Bill Katter, United Properties
Writer: Anna Pratt

Through a $243 million renovation that has long been in the works, the historic St. Paul Union Depot will become a multimodal transit hub, providing access to the region, Milwaukee, Chicago, and beyond.

The project broke ground on Jan. 18.

St. Paul policy director Nancy Homans says it'll be a center of transportation activity akin to transit hubs in New York City and Washington, D.C. "It's a strong element of the regional economy."     

Amtrak, metro area buses and express buses, the Central Corridor Light Rail line, and pedestrian and bicycle traffic will run through the depot. Greyhound and Jefferson bus lines might also come into play, according to city information.

It harks back to the 1881 depot's early days, when it was known as the transportation center of the Upper Midwest and the gateway to the Northwest, according to historical information from Ramsey County Regional Rail.

Financing for the renovation comes from a combination of county, state, and federal funds, including $50 million from the last federal transportation bill and $35 million in Transportation Investment Generating Economic Recovery (TIGER) grants through the American Recovery and Reinvestment Act, according to city information.

Ramsey County is studying what kind of activity should go on there to make it more than a pass-through. After all, Homans explains, "It's an economic center, in and of itself."     
 
As the region grows and develops over the next several decades, having more people taking advantage of public transit will lead to less congestion. "Businesses today say there's a congestion tax," with trucks sitting in traffic.

The project represents a shift away from highway building, which she characterized as a drag on the economy. "It frees up the resources that would be put into roads and highways and draws it to the center," she says. "It's much more efficient for the long term."

A more efficient system can "set a pattern of activity to save the planet and support the economic prosperity of the region."  

Trains last ran at the depot 40 years ago. It was mothballed and then part of it was used by the U.S. Postal Service. Eventually the county acquired it for the transit project.

"It's a very cool building," she says, adding that the renovation will make it a "wonderful asset."

The renovation project is planned to wrap up in 2012.

Source: Nancy Homans
Writer: Anna Pratt

The state's largest affordable-housing complex will soon undergo a considerable rehab.

Funding for a project to revamp Riverside Plaza in Minneapolis's Cedar-Riverside neighborhood closed on Jan. 5 while construction could begin next month.  

The modernist 11-building campus, which renowned architect Ralph Rapson designed in the 1970s, has 4,440 residents, plus a charter school, grocery store, and tenant resource center, according to city information.

Matt Goldstein, who works in the city's housing division, says that getting the finances lined up is a huge accomplishment on its own. 

A complicated $132 million deal restructures the property's debt and finances a $62 million renovation that includes $7 million for site and common-area improvements, according to city information.

Notably, 88 percent of the project's funding comes from private sources, he says.   

Goldstein explains that the rehab comes out of necessity. The heating and cooling system had started to go, which could leave a whole building without heat. As such, "The vast majority of work is being done behind the walls," he says.  

Otherwise, the building could become uninhabitable and would "create an amazing burden on shelters and other available housing stock," he says, adding that there is no money to acquire the property and tear down the building.   
 
For the city, the bottom line is about extending the building's lifespan and "enhancing the quality of life for these residents," he says. "The comprehensive nature of the renovation does that."  

Other goals of the project are to increase safety on the campus, improve energy efficiency, and better provide for pedestrians and bicycles. The city also pushed for a workforce plan that creates 200 construction jobs, with 90 spots reserved for neighborhood residents.

Goldstein is hopeful about the project's potential impact on the area.

The renovation is aligned with several other projects, Goldstein explains. The nearby Cedars, also a large affordable-housing complex, will soon be revamped, while planning for the neighborhood's Central Corridor Light Rail stop is underway, along with additional streetscape improvements.   

It's part of a conscientious effort to make the developments work together. "The Riverside Plaza project isn't happening in a vacuum," says Goldstein.

Source: Matt Goldstein, Housing Division for Minneapolis
Writer: Anna Pratt

Minnetonka-headquartered Opus Development Corp. will soon begin construction on a high-end, 120-unit student apartment complex near the University of Minnesota at Washington Avenue Southeast and Southeast Ontario Street in Minneapolis.

The Stadium Village Flats will be within walking distance to the east and west bank sides of campus, Dinkytown, and the forthcoming Central Corridor light rail train that's planned to run down Washington Avenue Southeast by 2013, according to Dave Menke, a senior vice president and general manager at Opus.

"We consider it to be the best location down at the edge of campus," he says. 

The $30 million building's units, which have a range of one to four bedrooms, will come fully furnished and will boast upscale finishes, according to company information. There will be two levels of underground parking and street-level retail, most of which CVS Pharmacy will occupy, he adds.

Inside will be student lounges, business and fitness centers, and Internet access throughout--while an eye-catching glass feature will run down the exterior on the northwest corner of the building, where Oak Street and Washington Avenue Southeast intersect.   

A couple of existing buildings that housed the longtime Harvard Market and additional commercial space and a parking lot will be demolished at the end of February, with construction beginning in March.

Initially the development involved the Oak Street Cinema and was to have twice as many units, the Minnesota Daily reported earlier, but it has been scaled down since then, due to economic factors.   

The flats will be ready in August 2012. "It'll be a first-class student housing project, he says, adding,  "There's a strong demand from the students." 

Source: Dave Menke, senior vice president and general manager for Opus Development Corp.
Writer: Anna Pratt

To figure out the best transit solution for the Robert Street Corridor, the Dakota County Railroad Authority will undergo something called an "alternatives analysis."

The Robert Street corridor runs from downtown St. Paul to Rosemount, with Interstate 35E bounding it on the west and the Mississippi River forming its eastern edge.  

A $1.18 million grant from the federal Department of Transportation, which was announced last month, will jumpstart the analysis, according to Dakota County transit specialist Sam O'Connell.  

The "alternatives analysis" will help define those "areas that really demonstrate the transportation need and focus on solutions," she says.  

Through the 12-to-18-month-long analysis, the county will identify the "locally preferred alternative" for a route and transit type. Some of the options they'll look at are light rail, commuter rail, bus rapid transit, streetcars, and more, while Robert Street is only one possible route.

An early feasibility study that the county did underscored the need for more transit services, with longer hours and higher frequency, especially with state projections for increased population and employment, she explains.

Today, about 129,000 vehicles cross the Mississippi River at the Lafayette and Robert Street Bridges on a daily basis, which is important to know because "bridges are natural chokepoint," she says.   

But different areas throughout the corridor have varying levels of density, impacts to land use and communities, ridership and more. "You have to do a technical analysis of what will and won't serve the corridor," she says. "It allows you to focus on the best solutions," which the public will have the chance to provide feedback on along the way.  

Source: Sam O'Connell, Dakota County transit specialist
Writer: Anna Pratt

As its name suggests, the Flux Apartments complex targets a group of upwardly mobile young professionals whose lives are, well, in a state of flux.

The $38 million apartment complex that Greco Real Estate Development is building at the intersection of Fremont Avenue South and the Midtown Greenway will connect with people who may have been attracted to Minneapolis for a job offer, and who may not know where they'll end up in five years, explains Brent Rogers, a vice-president of development at the company.

The 216-unit complex is the city's largest housing project since Greco's 242-unit Blue apartments, which opened in 2008 in the Lyn-Lake area, according to Rogers.

Blue, he says, is 96 percent occupied, demonstrating a demand for this kind of housing. In the past, "there hasn't been a whole lot of new upscale housing in Uptown," he says.   

Flux will have studio alcoves and two-bedroom penthouses that will be mixed throughout six- and four-story interconnected buildings. 

It'll offer plenty of amenities, including an outdoor pool, courtyard, grilling area, private dog park, fitness center, cafe and bar, so that "when they're not at work [tenants] can enjoy life and have fun," without the worries of home-ownership if they later decide to move on, he says.  

The location offers easy access to the bike and walking paths along the Greenway, and to light rail. 

Another interesting aspect of the project, he says, is that in addition to financing from NorthMarq Capital and PNC Realty Investors, the AFL-CIO Building Investment Trust is pitching in--meaning that "union retirement pension funds are putting union workers to work."

Even though it's still a challenging time for development in general, Rogers says, the project speaks to the "belief that the rental market continues to be strong and gets better over the next few years."

The Flux Apartments will open in January 2012.

Source: Brent Rogers, vice president of development at Greco Real Estate Development
Writer: Anna Pratt

A new $4.5 million transit station, which opened on Dec. 6, makes connections between freeway and locally-running buses faster.

In Minnesota, it's the beginning of freeway "bus rapid transit" (BRT), which aims to get people wherever they're going as quickly as possible. 

The split-level 46th Street Transit Station, which spans the 46th Street bridge across Interstate 35W in Southwest Minneapolis, enables buses to pick up and drop off passengers without ever getting off the freeway, explains Metro Transit spokesperson Bob Gibbons.

Riders can efficiently make connections between the upper and lower levels of the station, which rises out of the median of Interstate 35W.

From the station, which has LCD monitors with real-time information about bus arrival times, people can hop on express buses bound for downtown Minneapolis, the University of Minnesota-Twin Cities campus, Best Buy corporate headquarters in Richfield, and Normandale Community College in Bloomington. During peak times, express buses run every 15 minutes.

From the freeway, buses benefit from the MnPass toll lanes, which "give us a consistent, fast trip," he says, explaining that the lane's traffic is kept moving at 50 miles per hour.  

Gibbons says that the 13 routes that converge here "have been adjusted to take advantage of the new station."

These changes were made following a lengthy public hearing process over the past couple years. The Metropolitan Council approved the route realignments in August. The project came together through a combination of federal, state, and regional funds.    

He says the setup is a precursor to an expanded bus rapid transit system set to be fully operational in 2012. The idea behind BRT is to have local buses running frequently enough for people to catch freeway buses that'll go both directions every 15 minutes all day.    

"When you have that frequency, you don't need a pocket schedule," he says. "You don't have to be a slave to the bus schedule and organize your life around it."  

   
Source: Bob Gibbons, spokesperson from Metro Transit
Writer: Anna Pratt

If city officials approve it, North Minneapolis could get its first full-service bike shop by the spring of next year.

In response to a request for proposals that the city sent out some months ago, the Cultural Wellness Center submitted a proposal for Major Motion Bike Walk and Coffee, which uniquely emphasizes walking for fun, exercise or transportation, according to Kristen Klingler, who works in the city's health and family department. 

Her office recommended the proposal to a City Council committee, which will weigh in on it in January.

The South Minneapolis-based Cultural Wellness Center, a nonprofit organization that develops cultural approaches for health, economic development, and community building, plans to lease a 3,718-square-foot space at the corner of Lowry and Penn avenues north for the $450,000 project, Klingler says.

Major Motion Bike Walk and Coffee will offer new and used bikes, related gear and other accessories, plus bike repair and maintenance services and a coffee shop.

The shop will be stocked with items such as bus passes, compact shopping carts, reusable shopping bags and more, to help people make transitions from foot to bike to bus, according to Klingler.

Classes and workshops to "help people get comfortable riding the bike paths," for instance, along with spinning classes, will be held at the shop.  

The goal is to "give access to things residents need to be active on a regular basis," says Klingler, adding, "Improving health is the main focus."

The Wellness Center has enlisted the help of the Major Taylor Bicycling Club, an Upper Midwest group which tries to increase bike riding among African Americans. Other partners are the North Side's EMERGE Community Development, which provides youth employment and job training, and nearby NEON, a collaborative network that specializes in small business development support.
 
Klingler says the city has a $350,000 grant from Communities Putting Prevention to Work (CPPW) that was funneled through the Minnesota Department of Health from the American Recovery and Reinvestment Act of 2009, to help with the center's up-front costs.

The bike/walk center is part of a larger health initiative in the city and state that has programs geared around obesity prevention, physical activity, and healthy eating.

In North Minneapolis and beyond, strategies include expanding the Nice Ride bike-sharing program, new bike lanes and walking trails, and wayfinding signage for bike and pedestrian access--all of which will feed into the bike/walk center. "We're really excited about it," Klinger says.   

Source: Kristen Klingler, City of Minneapolis
Writer: Anna Pratt

An $80 million redevelopment proposal for the 6.5-acre parcel at Lake Street and Hiawatha Avenue in South Minneapolis, where the building that formerly housed the Brown Institute sits, emphasizes the popular Midtown Farmers Market and other nearby amenities, including light rail transit and the YWCA.

The current building, which is owned by the Minneapolis Public Schools, would be torn down. Whether the school district might still have offices or classrooms in the complex is up in the air, according to Jack Boarman, a senior partner with the BKV Group Architects.

The local architecture firm is collaborating on the project with a handful of partners that fall under the umbrella of L&H Development. Theirs was the only response to a request for proposals from the public schools and city, which had a Nov. 1 deadline.   

Under the proposal, a mix of affordable, senior, and market-rate housing units, along with street-level retail and office space, would be scattered throughout a series of three to five buildings.

It's an area that has mainly single-family homes, according to Boarman, who adds that the proposed variety of housing would open it up for residents of all income levels. 

Boarman says the team tried to be sensitive to the Corcoran neighborhood's goals for the area, creating a walkable place that will serve residents and the broader community.

For starters, "People can move through the development into what we're calling the Farmers Market Plaza," he says, adding that the buildings would be configured around a series of courtyards, with sidewalks and a boulevard leading to the Hiawatha Light Rail Transit line.
 
Sustainability is top of mind, he says, and easy access to the train encourages residents to go car-free.

In the coming weeks, the proposal will go before a city committee and the neighborhood group, with Minneapolis Public Schools making a decision on the matter sometime in December.

Source: Jack Boarman, senior partner at BKV Group Architects 
Writer: Anna Pratt

Leave it to a group of neurologists to make sure their new headquarters accommodates a giant head.

The American Academy of Neurology is moving to new offices that the group will build across the street from the Guthrie Theater in downtown Minneapolis. As part of a deal the city council approved in October, the AAN will set back the building 10 feet from the sidewalk along Chicago Avenue to preserve views of the Guthrie Theater and its supersized photo-portrait of founder Tyrone Guthrie.

After negotiating with AAN over the project, CPED Deputy Director Chuck Lutz said, "I'm very happy with the result." Such deals take time, he added, but "we're all satisfied." Lutz said the city's sales price of $661,000 reflects a discount of about $88,000 to preserve the Guthrie viewshed. The City of Minneapolis also issued $16,500,000 for the project in tax-exempt revenue bonds as part of the Recovery Zone program.

Hundreds of neurologists fly to the Twin Cities each year for association meetings. One selling point for the AAN, currently headquartered in St. Paul's West Seventh neighborhood, is the new site's proximity to the Hiawatha light-rail transit connection to the Minneapolis-St. Paul International Airport.

A vibrant neighborhood was also part of the equation for the association, according to AAN Executive Director Catherine M. Rydell: "We are very supportive of the setback. It completes the pedestrian gateway along Chicago Avenue to the river and Guthrie. In fact, the Academy will be providing electricity to vendors of the Mill City Farmers market through outlets strategically placed along the exterior of our building."

Sources: Chuck Lutz, Minneapolis Community Planning and Development; Catherine M. Rydell, American Academy of Neurology
Writer: Chris Steller

The Twin Cities tied with one other metropolitan region this month in being awarded the top federal grant amount-- $5 million--for sustainable transit and transit-oriented development.

Salt Lake City was the other city to get a full $5 million from the U.S. Department of Housing and Urban Development (HUD). (Seattle came close, with $4,999,700.)

The Twin Cities' take will go toward involving local communities in planning transit-related development along five planned and existing routes: Southwest light-rail transit, Bottineau Boulevard, Cedar Avenue Bus Rapid Transit, Northstar Commuter Rail and the Gateway Corridor along I-94 East.

"It's a terrific boost," says Jonathan Sage-Martinson, Central Corridor Funders' Collaborative. The Central Corridor route between the downtowns of St. Paul and Minneapolis, where the region's second light-rail transit line is now under construction, will also see some of the HUD funds.

The kind of comprehensive community planning and design that's been done on the Central Corridor will serve as a model for other transit corridors. Sage-Martinson says Shelley Poticha, director of HUD's Office of Sustainable Housing and Communities, often cites Minneapolis-St. Paul as a prime example of a region that has found a way to work cooperatively on both transit and transit-related development. The office distributed nearly $100 million toward like efforts across the country.

The goal is to wrap together economic and workforce initiatives; alternative energy systems; energy efficiencies in housing (particularly rental housing); and green infrastructure such as the stormwater runoff system that will water new trees along the Central Corridor.

Source: Jonathan Sage-Martinson, Central Corridor Funders' Collaborative
Writer: Chris Steller

At a century-old brick building in St. Paul's Mid-City area, lawn mower-makers have given way to CodeWeavers. And the engineers at the software firm that goes by that name will be joined this week by educators working for the Minnesota Literacy Council. With the two tenants, the building will be 60-62 percent leased.

The 18,000 square-foot factory/warehouse now known as The Foundry at Raymond is the 15th property near the crossroads of Raymond and University avenues to be renovated by Update Company, a family-owned development firm with more than three decades in the neighborhood. Partner Sandy Jacobs says Update currently owns and manages eight buildings in this commercial and industrial section of the St. Anthony Park neighborhood.

Jacobs remembers a less-vibrant era in the 1970s when her parents' home-based painting business began to evolve into Update. She figures the firm's Midtown Commons office conversion of a pair of buildings in 1990 was a turning point for the area. "That when things really started to gel," Jacobs says.

Now she can point prospective tenants toward numerous nearby amenities, including the Edge Coffee Shop, Hampden Park Co-op, Gremlin Theater, and Café Biaggio. CodeWeavers has found the location midway between downtown St. Paul and Minneapolis so convenient for employees to bike to work that they installed a shower.

A Central Corridor light-rail transit station will be under construction at Raymond and University next year, eventually increasing the development potential of surrounding land. The St. Paul Port Authority has scooped up a nearby former trucking property, Jacobs said.

Office workers aren't the only ones finding the once desolate area more appealing. Jacobs says a newly landscaped stormwater-runoff collection pond at the Foundry has attracted a recent eagle.

Source: Sandy Jacobs, Update Company
Writer: Chris Steller

For the fourth fall, volunteers are fanning out across town to count how many bicyclists and pedestrians pass by a given location over a two-hour period.

The Twin Cities is one of four places selected for a bike/walk program funded by the U.S. Department of Transportation, and measuring trends in bicycle and foot traffic is an important part of the project, says Tony Hull of Transit For Livable Communities, the nonprofit group working with local governments on "Bike/Walk Twin Cities." (The other places are less urban: Sheboygan, Wis.; Columbia, Mo.; and Marin County, Calif.)

Counts by humans with clipboards are needed because bikes and pedestrians are too light to trip the rubber strips that planners stretch across roads to count motor-vehicle traffic volume. The data lets transit advocates and city officials factor in all forms of transportation rather than focusing solely on the flow of cars and trucks.

Volunteers get training to ensure accuracy and consistency, then head out to 48 spots where people like to bike and walk. A few locations have seen a doubling or even tripling of bike and pedestrian traffic from 2007 to 2009. Most saw percentage-point increases in the double digits. An observer along a busy route can expect to see several hundred bicycles over two hours of counting.

(This year's count could still use a few good volunteers. If you can help, check out this link.)

By Hull's reckoning, the traffic levels of bikes and pedestrians are increasing at a rate that raises the question, "Do we need more capacity?" Bulking up the infrastructure dedicated to non-motorized traffic, like bike lanes and paths, may be needed, he says. Consider, for example, the Midtown Greenway, which has become so popular it can suffer crowded rush hours and near-traffic jams. In places like that, Hull says, the need for transit "starts getting to the next level."

Source: Tony Hull, Transit for Livable Communities
Writer: Chris Steller

One of the might've-beens about the Central Corridor light rail line that's now under construction is a route not taken at its Minneapolis end. University of Minnesota officials pushed hard for an alternative plan that would have seen trains skirt campus by swinging through the Dinkytown commercial district rather than plowing down Washington Avenue, close to vibration-sensitive research facilities. (The university dropped a lawsuit over the vibration issue last week.)

One of the advantages offered by the alternative route to downtown via Dinkytown was a proximity to land ripe for a wave of development of the sort it seemed only LRT could bring. But redevelopment is happening in the area in a big way anyway, even despite a lousy lending environment. One firm, Doran Companies, has just broken ground on its second big Dinkytown project, the 412 Lofts at Fourth Street and 13th Avenue SE.

It's to be a five-story, 102-unit apartment building with two levels of underground parking, says Jim LaValle, Doran's vice president of development. It's not student-only--that would be illegal under fair housing laws--but LaValle says the 412 Lofts will cater to the close-to-campus environment.

A year ago, Doran broke ground on Sydney Hall, a similar project that also included renovation of the Dinky Dome, built in 1915 as the Minnesota Bible College but now better known for its signature glass dome skylight. The development is now fully leased, LaValle says, including a ground-floor CVS, Dinkytown's first drugstore after a decade or more without. Plans to lease space directly under the dome for commercial use didn't find any takers, LaValle says--so lucky residential tenants will enjoy the spectacular interior instead.

How do two big developments take off within two blocks when construction is stalled elsewhere? Doran credits "efficient design that works financially"--along with a "captive audience."

Source: Jim LaValle, Doran Companies
Writer: Chris Steller