Affordable Housing : Development News

To gauge  interest in a couple of its redevelopment projects, Plymouth-based Dominium Development and Acquisition hosted a community meeting on Jan. 9 at the Mill City Museum in Minneapolis.

Dominium plans to convert two historic sites--the old Jacob Schmidt Brewery in St. Paul and Pillsbury ‘A’ Mill in Minneapolis--into artist live/work spaces. (See The Line’s stories here and here.)

With the help of PLACE, a nonprofit agency that specializes in this kind of housing, Dominium has created an online survey to get additional input.

The survey asks people to weigh in on everything from possible rent prices to amenities, to help shape the common spaces and individual units in both developments.

Owen Metz, a senior development associate at Dominium, says that the company wants to “assess the market, to see what interest there is from the arts community,” adding, “We want to find out what their motivations are for living there.”

Dominium is hoping to hear from 10,000 area artists. “We’ll use the feedback to guide and drive some of the decisions moving forward, as we design units and common spaces,” which will allow for flexibility in the design, he says.

He adds that the company is reaching out to artists working in many different media.  

Depending on the survey’s results, a photography studio, for example, could be incorporated into one or both of the housing projects.  

Whatever the reaction is, “We’ll take it to heart and try to accommodate it as much as we can,” he says.

Source: Owen Metz, senior development associate, Dominium Development
Writer: Anna Pratt

Central Exchange, a mixed-use development that's planned for St. Paul's Frogtown neighborhood, will help turn around a site that has long been rundown.

Historically, the neighborhood as a whole has been under-invested in when compared with other parts of the city, according to Craig Johnson, who is the project manager for developer Model Cities.

Model Cities, which is based just a block-and-a-half away from the University Avenue site, wants to be a part of its improvement, he emphasizes.

For the project, the organization has acquired four vacant commercial properties that he describes as an “eyesore on the avenue.” It has often attracted vandalism, he says.  

Johnson says that the development will provide a boost to the area. “It’ll help make the area more attractive,” as opposed to somewhere that one would merely drive through.

Two of the buildings on the properties have been torn down, while the city will soon demolish the remaining couple of structures, he says.

Model Cities may also acquire another adjacent property, for which it’s trying to secure financing.

Central Exchange will have ground-floor commercial space along with a couple of stories of housing.

Altogether, there’ll be 30 to 45 units of mixed-income housing. Depending on its final footprint, the project could cost anywhere from $9.5 million to $13 million, according to Johnson.

The commercial spaces will be “oriented towards nonprofits, educational institutions or small businesses,” with an eye on what’s “useful to the community,” he says.

Model Cities is planning to install green roofs that will allow for urban gardening and stormwater management, as well.

The complex will alternately rise up one and three stories in different areas, to help break it up, visually. “If we built this as one big building it might have a more imposing feeling,” he says.

The coming Central Corridor Light Rail Transit line helped make the development possible. As such, “We see this project as a part of something bigger that’s going to really help the community.”

Construction at the site is scheduled to finish up in the spring of 2014.

Source: Craig Johnson, project manager, Model Cities
Writer: Anna Pratt

After years of being underused, the 1907 Lehmann Center in Minneapolis's Uptown area will be converted by the Plymouth-based Dominium Development & Acquisition into a 136-unit affordable housing development.

The $30 million complex, which has been dubbed the Buzza Lofts, will have a mix of one- and two-bedroom apartments along with studios, according to Chris Barnes, who is a vice president and project manager at Dominium.

Following a wide variety of uses, the building most recently belonged to the Minneapolis Public Schools.

Considering that the building is historically designated through the National Register of Historic Places, “We’ll need to mesh it with historic profiles,” Barnes says.  

Many of the internal walls will be demolished so that the developer can start with a clean floor plate. “Once the demolition is completed, we’ll lay out the apartments in the grid,” he says.  

The building will also have a leasing office, a fitness center, and a lounge.

For the most part, its creamy white exterior will remain the same, though the roof will be replaced and new window openings will be made, Barnes explains.

Dominium hopes to achieve Leadership in Energy and Environmental Design (LEED), in the high-ranking silver category, for the building. As just one example of the eco-friendly amenities being planned, a former parking lot will become a landscaped green space, with benches, tables, and a fireplace. “It’s unusual for an urban development to have that much green space,” he says.

Another one of its major green initiatives relates to stormwater management on the site.

Barnes is optimistic about the project, which will probably be ready by the end of the year.

On the whole, the rental market in Minneapolis is doing well, Barnes says. “Uptown as a sub-market is among the more desirable areas. Folks of all income levels want to live in that neighborhood.”


Source: Chris Barnes, vice president and project manager, Dominium Development
Writer: Anna Pratt

As a part of a recently announced federal plan, a handful of buildings at the Upper Post of Fort Snelling in Minneapolis will take on new life.

St. Paul’s CommonBond Communities is working with Sand Companies in St. Cloud on a $10.2 million project to redevelop the buildings into housing for homeless vets. 

It's one of 25 sites that the U.S. Department of Veterans Affairs (VA) is reusing to create 3,000 units of permanent and transitional housing for veterans around the country, according to VA information.

Another 1,000 units could be announced by the VA in the coming weeks.

The Upper Post buildings, which have long stood vacant or served as storage space, will be turned into 58 apartments, including a mix of one-bedrooms, efficiencies, and three-bedroom units, according to Andew Michaelson, senior housing development manager for CommonBond.  

Buildings will be rehabbed according to historic guidelines, while a combination of historic and low-income tax credits will help fund the project, he says.

Further, all kinds of supportive services will be located on-site. “’[They will] address the needs of the population,” he says, adding that the aid is focused not just upon homelessness but “whatever else they’re going through.”   

In general, more needs to be done to eliminate homelessness among vets, he says.

He says that the project will also benefit the surrounding community by helping to preserve a significant landmark. “These buildings are in increasing states of deterioration. We want to prevent further deterioration.”  

The buildings have a lot of potential he says, and lately, there’s been “more interest in doing things on the campus with the resource of this existing stock of buildings.”

Although the project’s timeline depends on the condition of the buildings, he says that construction could start as early as the end of 2012.

Source: Andrew Michaelson, senior housing development manager, CommonBond Communities
Writer: Anna Pratt

RS Eden, a local nonprofit developer, plans to convert a 1900-vintage building in Minneapolis's Downtown East neighborhood into an $18 million affordable apartment complex.

Attached to the existing four-story building will be a five-story building, where a parking lot now stands, according to RS Eden president Dan Cain.

Construction of the development, called Emanuel Housing, is to begin in February 2012.

The project takes its name from the late Scotty Emanuel, a former RS Eden employee. “He was a long-term, committed role model to young people coming out of poverty,” he says.

The 101 units will include mainly efficiencies, with six one-bedroom apartments. It’ll be affordable, with some market-rate apartments in the mix, Cain says.

A certain amount of space will be designated for military veterans and those who’ve had problems with chronic homelessness or chemical abuse.

However, the building will be open to anyone who is interested in sober living, Cain adds.  

Also in the building will be supportive services and community and retail space, while its previous owner, the Council on Crime and Justice, will stay put in the building.  

Part of the property could be turned into a green space.

The building is close to the light rail and the downtown area, which means convenient access to jobs.

More broadly, the development is a balance to the nearby high-end housing along the Mississippi riverfront. “Any community needs a mix of housing to be healthy,” Cain says.

It’s something that was lost in the 1960s and 70s when many buildings were torn down, he says. “This is an attempt to revitalize the whole Downtown East neighborhood."

Although RS Eden can’t do it single-handedly, he says, “We hope we can go a long way towards motivating that kind of change.”

In the future, the whole corridor between Washington Avenue and the Metrodome “will be much more pedestrian-friendly and vibrant than it is now.”

Source: Dan Cain, president, RS Eden
Writer: Anna Pratt

The Pillsbury 'A' Mill in Minneapolis, which once belonged to the world's largest flour-milling complex, represents a key part of the city's growth along the Mississippi River.

But in recent years, the mill, part of which dates to 1881, went through foreclosure after a redevelopment proposal from another developer fell through.

Afterward, it wound up on a list of "America's 11 Most Endangered Historic Places," created by the National Trust for Historic Preservation.

But Plymouth-based Dominium Development has an $80-million plan to reverse the trend. It plans to convert a handful of buildings on the campus into a 240-unit affordable artist live/work complex, according to Owen Metz, a senior development associate with the company.

Separately, Doran Cos. in Minneapolis is planning a 375-unit housing development for another portion of the Pillsbury site. Read The Line story here.

Although Dominium is still working out the details of the building and land agreements, this "is the first project of its scale, in terms of affordable artist live/work housing," he says. "We're trying to have different little nooks that cater to artists, with studios as well," he says.

Dominium has a similar project underway at Jacob Schmidt Brewery in St. Paul, which The Line covered here.  "We're trying to play off of what's already been done and what we've learned," says Metz.      

Although much of the design work is still in an early phase at Pillsbury, Metz says that the iconic grain elevators, which contribute to its historic significance, will stay intact--purely for aesthetic reasons. 

The group is talking with the neighborhood group, city officials, and other stakeholders to get input and leverage some of the work that's already been done on the site. "We're trying to streamline the process a little bit but also get feedback," which Metz says is especially important for such a landmark.

Some of the building's structural issues need to be addressed before too much gets hammered out. "Nothing's in stone yet," he says. "We're considering various uses for the space. We want to make sure it fronts well at Main Street."    

He hopes it'll bring a unique vitality to the area, while also building on the existing community in Northeast, he says. "We feel that financially, it's a good investment and that it'll be a success and be able to fill up quickly," he says.

In an area where many of the housing options are higher-end, "It gives people the opportunity to live that close to downtown, with those views, at an affordable level," he says.

Source: Owen Metz, Dominium Development
Writer: Anna Pratt

A local developer is re-imagining a century-old vacant building in Minneapolis's Stevens Square neighborhood as a $19.5 million apartment complex.

Dubbed the Dunwoody Apartments, the plan is a welcome change in direction for the building that once housed the Abbott Hospital.

In recent years the building has been a magnet for crime, according to developer Swami Palanisami, who heads Palanisami and Associates, the consulting engineering firm that's leading the charge.

Palanisami's proposal entails a complete revamping of the four-story building to make way for 123 studios and one- and two-bedroom apartments. Of those, 25 will be set aside as affordable, something the neighborhood has a big demand for, he says. Retail businesses will also occupy the first floor.

New kitchens, plus common laundry and exercise rooms are a part of the plan, he says.

A centralized heating and cooling system will be installed, along with other mechanical and electrical upgrades. The building's brick exterior and balcony will also be restored.

Additionally, underground and above-ground parking at the Dunwoody Apartments will help free up space on the street, he says.

Already, related city zoning changes and accompanying remodeling plans have been approved, says Palanisami, who is in the process of putting together project financing, which includes various historic tax credits, plus a combination of local and federal government support.

Previously, Palanisami had considered other plans for the building, which is in close proximity to downtown, but those didn't advance once the recession hit, he says.

The apartment proposal is more viable. "It makes good sense not to throw away an old building, but to restore it," he says. "It'll fit in well with the nearby neighborhood."

He hopes to start the renovation later this summer.

Source: Swami Palanisami, developer  
Writer: Anna Pratt

In St. Paul, the $17 million redevelopment of the Renaissance Box building is part of an "underground renaissance" in the Wacouta Commons neighborhood, according to Matt Hodson, a spokesperson for Aeon, the local nonprofit developer behind the project.

Aeon is converting a former shoe factory at 10th and Sibley streets into 70 affordable apartments.

The seven-level Renaissance Box, an historically designated building that dates back to 1914, will have a mix of housing that's targeted at people with all different incomes, including efficiencies and one- and two-bedroom apartments; 14 efficiencies will be dedicated to those who've struggled with chronic homelessness, according to Hodson.

Among its amenities, Renaissance Box, which will have a warehouse loft-style feel, will offer tenants private storage, an exercise room, a community space with a kitchen, a green roof, a shared patio, and an art space�in collaboration with local arts incubator, Springboard for the Arts.

Sustainability will be a theme running throughout the building. Plans are in the works to achieve LEED certification, a national standard for green building, Hodson says.

Aeon has a goal to create new industry models "to take ideals of sustainability and bring them to affordable housing in a practical manner," he says.

To do so, Aeon is working on with the University of Minnesota's Center for Sustainable Building Research and Center for Energy and Environment (CEE). The Line covered another Aeon development that's part of this pilot program here.

Renaissance Box, which Aeon purchased out of foreclosure in 2006, will help round out the diversity of housing in the Wacouta Commons area.

A decade ago, vacant buildings and surface parking lots characterized the neighborhood. Today, "It has really become a thriving neighborhood with a variety of housing options with everything from high-end condos to affordable housing," he says. "That's what we're bringing and it helps create a vibrant residential community.   

Construction, which has been ongoing since August 2010, is expected to finish up by July 1, according to Hodson.
   
Source: Matt Hodson, Aeon, spokesperson 
Writer: Anna Pratt

The St. Paul-based Minnesota Housing Partnership (MHP), a nonprofit organization that preserves and creates affordable housing, last week received $750,000 from the federal government to help carry out a new "place-based" community assistance program.    

MHP was chosen through a competitive process, along with a dozen other organizations nationwide to work with the U.S. Housing and Urban Development (HUD)'s recently formed arm, OneCPD, which refers to its Office of Community Planning and Development.  

Although the details of the new program are still coming together, MHP executive director Chip Halbach explains that the consortium will probably be on hand to help HUD in a more consistent way than it has in the past.

Previously, HUD hired the housing organization for specific needs, helping to revise an organization's property management practices or meet income-tracking requirements. "There are specific chunks of work we would come in and do," he says, adding, "This points to a different approach."  

Basically, HUD is going for a more broadly based integrated community development style, while MHP's focus will be on the Upper Midwest, according to MHP information.

Halbach says he's excited about HUD's new direction. In his view, "There's a lot of potential for what could be done."

As a part of this new initiative, HUD has pulled together various agencies that can lend different types of expertise, including affordable housing, business and community planning, economic development, infrastructure planning, construction management, sustainable design and natural resource protection, and market research, among other things, according to MHP information.  

Other local organizations that are a part of this effort that MHP is leading includes the following: Bonestroo Inc., the Metropolitan Consortium of Community Developers, and Affordable Housing Connections, Wisconsin Partnership for Housing Development, Great Lakes Capital Fund in Michigan and Seattle's Sound Thinking.


Source: Chip Halbach, executive director, Minnesota Housing Partnership
Writer: Anna Pratt

The $9.5 million Nicollet Square development at 3700 Nicollet Avenue, which takes an innovative approach to housing homeless youth, is hosting an open house on May 5, with building tours, speakers, and more.

It's one way to thank Nicollet Square's supporters and celebrate its accomplishments to date, according to Lee Blons, who leads the Plymouth Church Neighborhood Foundation, which developed the building.

Nicollet Square has 42 studio apartments that are targeted at young adults, ages 16-21, who are transitioning from homelessness or foster homes, Blons explains.

Since Nicollet Square opened its doors in December 2010, tenants have been moving in and the place is likely to be full by June, according to Blons.  

The foundation partnered with several other local groups on the project, including Common Bond Housing, HIRED and YouthLink, allowing it to provide personalized attention to tenants. "It's about an integrated comprehensive approach to housing, with on-site supportive services and employment," she says.  

For starters, its unique "Work Fast" program immediately connects people with jobs that have subsidized wages. "In a tough economy it helps break through some barriers to employment," she says.

This way, tenants are able to start paying rent right away. At Nicollet Square, rent is set at a low rate in the beginning and it gradually increases through time, to help tenants eventually ease into a more typical housing environment.  

As for other amenities, Nicollet Square has community, computer, and fitness rooms, while the backyard is equipped for grilling and picnics. The building has additional "little features to build community among the residents," she says.  

For the still-empty retail space, which can be configured for one tenant or several, Blons said the foundation is open to various possibilities. A restaurant, coffee shop, or offices could go into the space. "We'd love to have a business that was interested in having young people [from the building] if it needed entry-level employees."

Though she's proud of the project, she stresses the need for ongoing support. With 2,500 homeless young adults across the state, she says, "We hope to end homelessness but we have a long ways to go."

Source: Lee Blons, Plymouth Church Neighborhood Foundation
Writer: Anna Pratt

The $8.5 million Greenleaf apartments, which started construction late last year, will bring a new affordable-housing option to Minneapolis's Whittier neighborhood.

Construction of the 63-unit apartment building, which also includes 7,500 square feet of ground-floor retail space, will probably continue through the end of the year, according to Jesse Osendorf, the project coordinator for Brighton Lyndale Development LLC.  

The building "should blend in nicely with the neighborhood," as it combines plenty of stone and brick, mirroring other nearby developments, while the use of metal adds a sleek, modern touch, he says.

Greenleaf residents will have access to an underground parking garage, while additional off-street spots will be available on Lyndale.

Brighton is still on the lookout for businesses to fill the retail spaces. A restaurant is one possibility, he says, adding that the group wants to attract local independent businesses that can "carve out [their] own niche" in the space.  

Previously, the lot housed part of the Salem English Lutheran Church and accompanying parking, he says.

When the church sold the lot to Brighton and moved to co-habitate elsewhere with another congregation, Salem was able to begin rehabbing the original structure, which had been vacant for several years, he says.  

Based on the number of calls that Brighton is getting from people who are interested in the development, coupled with the success of some of its similar projects like the St. Anthony Mills Apartments near downtown Minneapolis (where there's a waiting list to move in), "these affordable units definitely seem to be in demand," says Osendorf.

Source: Jesse Osendorf, Brighton Development Corporation
Writer: Anna Pratt

Artspace Projects, Inc. is in the middle of putting together the funding for a $15 million development to go on a parcel near the Guthrie Theater, on the eastern edge of downtown Minneapolis.

The project, which has been dubbed ArtCube, includes 45 affordable live/work studios for artists; it's similar to another Artspace project in Northeast, called the Jac Flats (which The Line wrote about here), according to Heidi Kurtze, the group's property development director. 

The five-story building will have 8,000 square feet of commercial space, while 20,000 square feet will be devoted to an arts incubator for the larger community, though the details are still being fleshed out, Kurtze says.

A portion of the incubator, from which the development gets the "cube" part of its name, could be devoted to a gallery and offices, plus an artist residency program she says, citing some possible uses for the space.

To figure out the "best and highest use of space," the group will carry on a community engagement process over the next several months. "We're having a number of conversations with nearby arts organizations that are in need of more space," she says.

Also being explored is the idea of an urban farm to go on the building's rooftop--one that could have some kind of connection to the Mill City Farmers Market, Kurtze says.  

On April 5 the City Council's community development committee deemed the project one of 10 city development priorities for transit-oriented design funds this year from Hennepin County, according to city information. ArtCube, which applied for a $500,000 grant from the county, is well connected to a couple of nearby stops for the Hiawatha Light Rail line. 

In addition to the county funds, the group intends to apply for grants from the city and Metropolitan Council.

Depending on when the financing comes through, Artspace could start construction next year on the L-shaped development, which is adjacent to the future headquarters of the American Academy of Neurology.  

Source: Heidi Kurtze, director of property development for Artspace Projects Inc.
Writer: Anna Pratt 

The historic Pioneer-Endicott buildings in downtown St. Paul, which have been vacant for some time, are entering a new era.

St. Paul-based Pak Properties recently closed on the property, according to city spokesperson Janelle Tummel.  

The project, for which the cost is still unknown, will be divided into two phases, she says. Phase one includes the development of 55 rental units, some of which will be affordable, plus two floors of commercial space, according to Tummel.

Although Pak Properties is the developer, the city is the pass-through for $661,100 in environmental cleanup funds from the Metropolitan Council, money that will go specifically to asbestos and lead-based-paint abatement, according to Tummel.

Following a couple months of cleanup, construction and leasing activities will take place, and then the "hope is to begin working on occupying the residential units," though the time line is vague at this point, she says.

Tummel says the early proposal includes a green roof, energy-efficient lighting, and low-flow plumbing fixtures.

Both buildings stand out for historic reasons. The 1889 Pioneer building, which was the city's first skyscraper with 16 stories, originally housed the Pioneer Press, according to Finance and Commerce. Endicott, which is attached to the Pioneer building, encompasses two structures that date back to 1890, it reports.  

"The city is supportive of reusing this vacant historic treasure in downtown St. Paul," Tummel says. "It'll bring in new residents and it'll create new vibrancy in an area that's already starting to be transformed," which is a trend that she says will continue with the development of the Central Corridor Light Rail line to connect Minneapolis and St. Paul.  

Source: Janelle Tummel, St. Paul spokesperson
Writer: Anna Pratt

The Northeast Community Development Corporation initiated a proposal for the Jac Flats condos some years ago, but it was shelved due to market troubles.

Now, it could come back in a new form.

Artspace Projects, Inc., a Minneapolis-based nonprofit real estate developer that's working with the community development corporation, has adapted the project for 35 affordable live/work apartments for artists, according to Artspace project manager Andrew Commers.   

The $9.3 million four-story apartment building will be constructed on the same lot, at Jackson Street Northeast and 18 ½ Avenue Northeast, and it retains many of the same ideas, including the artist focus.   

"All units will be for low-income artists and their families," Commers says, explaining that some units will be reserved for those making 30 to 60 percent of the area median income.    

The apartments will have high ceilings and big windows that allow for plenty of natural light, which he says is ideal for artists who'll work in the space.

Tenants will decide what to do with a 2,500-square-foot communal space, which could be used as a studio, gallery, or classroom. "It'll depend on their interests and energy," he says.     

The flats will also have underground parking, while a portion of greenspace on the property could become a sculpture park.

As a whole, the project will blend in with the neighborhood, in terms of height and contours, he says.

Several noteworthy project funders are Wells Fargo, LISC (Local Initiatives Support Corporation), a sponsor of The Line, and the Greater Metropolitan Housing Corporation (GMHC), he says.

Additionally, the city awarded $50,000 in federal low-income tax credits to the development. It's a small allocation but it demonstrates early support for the project, he says, and will give it a competitive edge in the next application process.   

Right now Artspace is pursuing affordable-housing subordinate funds from the city, county, and state,  he says.

If those applications line up, it'll position the project to be fully funded and may allow for construction to start in early 2012, he says. Then, following 18 months of construction, the Jac Flats could be ready for leasing in June 2013.


Source: Andrew Commers, Artspace, project manager  
Writer: Anna Pratt

Seward Redesign, a neighborhood nonprofit developer, is taking steps to make "phase two" of its proposed Seward Commons a reality at the industrial four-acre site that was formerly home to the Bystrom Brothers machine shop, between Minnehaha and Cedar avenues south on 22nd Street in Minneapolis.

Seward Commons, which has long been in planning stages, is a sustainable transit-oriented housing development, according to project information. The development process has been divided into a couple of phases that separately deal with housing for the "persistent mentally ill" and seniors.   

"Phase two" specifically relates to 60 units of senior housing in the complex, which Seward Redesign associate director Katya Piling says is in high demand from the area's aging population. "People love the neighborhood and want to stay here," she says.

To make it happen, Seward Redesign is considering the possibility of teaming up with CommonBond Communities, another local nonprofit developer that already has a presence in the neighborhood at the Seward Towers. The possibility will be presented at a Seward Neighborhood Group committee meeting on April 12.  

The details of such a collaboration need to be worked out to meet the requirements of a Housing and Urban Development funding application, for which the deadline is coming up, she says.

For the 40 units of supportive housing, plus administrative offices, dining, and health and wellness facilities that are a part of "phase one," the group's partner is Touchstone Mental Health.

Seward Redesign acquired the land, which has nine buildings on the premises, in June 2009. Since the beginning, the community has been looped into the master-planning effort, which goes back even before then.  

Ultimately, Seward Redesign wants to transform the off-the-beaten-path industrial area into a lively link to the Hiawatha Light Rail Transit (LRT) line. Already the group has taken pains to open up access to pedestrians along a trail near the line, which means people don't have to cross busy, four-lane Cedar Avenue to get to the Franklin Street LRT Station.

In the future, Seward Redesign hopes to create a well-lit path that "provides a more direct, flat way to reach the station," Piling says.  

The group has put a lot of thought into environmental issues. On the site, Seward Redesign plans to implement cutting-edge stormwater-management practices. Already, the existing parking lot has become an urban farm, which could be expanded to the development's rooftop. "We want to integrate agriculture into the development in the long-term," she says.   


Source: Katya Pilling, Associate Director, Seward Redesign     
Writer: Anna Pratt