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8.0. HRSR 08-25-2003 ITEM 1 8. • L" City of Elk River MEMORANDUM TO: Housing and Redevelopment Authority FROM: Scott Harlicker, Senior Planner/ DATE: August 25, 2003 SUBJECT: Housing Study Background At it March meeting,the HRA approved the attached six part housing workplan.At the August meeting staff will present the results of the Elk River Housing Analysis.After staff's presentation,the HRA will be asked to discuss the information,the housing balance the city • should strive to maintain and identify initiatives that staff should pursue regarding the city's housing stock. Attachments • Housing Workplan • Apartment Inventory • Map of Townhouse Developments • Map of Single Family Residences by Year Built • Map of Single Family Residences $170,000 or Less • Map of Single Family Residences and Multi-Family Parcels • Article from League of MN.Cities on Affordable Housing Analysis Overview Staff utilized 2000 census data and collected building permit information to create a data base that was used to analyze the City's housing stock and to compare the housing inventory of Elk River to that of surrounding communities (Big Lake,Ramsey,Otsego etc.). The 2000 Census data was used for comparison between communities. Census data, along with building permit information and Sherburne County assessment data,was used to analyze Elk • River's housing stock.This report will focus on Elk River's housing stock including age, HRA/Housing August 25,2003 Page 2 cost,year built and the percentage of multi family units. The comparison with surrounding • communities includes type of dwelling,year built and costs. Existing Conditions The City of Elk River has a mix of housing types.The housing types included in our inventory were apartments, single family detached homes and single family attached homes (townhouses and twin homes).As of May 2003 there were 6,587 dwelling units. Type of unit # of units % of total Single Family Detached 4,759 72.2% Single Family Attached (townhouses) 660 10.0% Single Family Attached (twin homes) 112 1.7% Apartments 1,056 16.0% Total 6,587 There are also a small number (77) of mobile homes and duplexes that were not included in the analysis. The current housing inventory in Elk River is predominantly single family, either attached or detached. Currently 84% of the dwelling units are single family and 16% are multi family. • Single Family Single family units include a mix of detached single family homes, attached townhouses and attached twin homes.As of May 2003 there were 5,531 single family units. Type of unit # of units % of total Single family detached 4,759 86.0% Single family attached (townhouses) 660 11.9% Single family attached (twinhomes) 112 2.0% Total 5,531 Most of the single family units are detached (86%). Townhouses make up 11.9% of the attached single family units and twin homes make up 2%. The majority of the townhouse and twin home developments are located on the east side of the city.The attached Townhouse Development Map shows the location of the townhouse developments and the total number of lots in each development.Most of these developments include both townhouse and twin homes. The majority of the single family housing stock in Elk River is less than 25 years old. According to Sherburne County assessment data,in the last 10 years 42% of the total 5,309 • single family units have been constructed;48.8% have been constructed since 1990; 71.6% have been constructed since 1980, and 84.4%have been constructed since 1970.The older S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 3 • homes,those that were constructed prior to 1960, are generally located in the old Village of Elk River.There are also some older farmhouses scattered in the throughout the city. Lot Availability As of January 14, 2003 there were 1,267 single family lots available. Of those 1,267 lots, 465 (36.7%)were townhouses/twin homes and 802 (63.2%)were single family detached.Most of the lots are located within the Urban Service Area;municipal sewer and water is available to 979 (77%) of the lots. The remaining 288 lots (23%) are located in the agricultural or rural residential districts. Apartments For the purposes of this report, apartments are defined as a dwelling unit,which is not located on its own lot,but is in a building that has 4 or more units.The ratio of multi-family units to single family units has steadily decreased over the past 13 years. Year # of Units Percent of Total Units that were apartments 1990 814 19.3% 2000 1056 18.2% 2003 1066 16.2% • The total number of renter occupied units has also decreased.Renter occupied units can be either multi-family units, single family homes that are rented, accessory apartments or duplexes. Year # of Units Percent of Total Units that were Renter Occupied 1990 951 25.5% 2000 1228 21.7% 2003 1238 18.7% The city does not track rental units unless they are in multi-unit buildings of 4 or more units. However, based on the 2000 Census,there were 1228 renter occupied units and 1056 of those units were located in multi-family buildings. That means that there were 172 rental units that were not in multi-family buildings. The following table shows the year that the apartment was constructed,the number of units and the percentage of the total number of units: • S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 4 Year Built # of Units Percentage of Total Units 1960-1969 115 10.8% 1970-1979 120 11.3% 1980-1989 484 45.8% 1990-1994 269 25.4% 1995-2000 68 6.4% The majority of the apartments in Elk River have been constructed within the last 25 years. In fact,more than 30%have been constructed within the last 15 years.A detailed inventory of apartment buildings is included on the attached apartment inventory table. The city has a rental housing program that requires each apartment building be inspected and licensed every year.According the Housing Inspector,the current vacancy rate for the market rate units is running about 6%to 8%. Earlier this year,when the interest rates were dropping,the vacancy rate was about 10%. Lot Availability,Multi-Family There is only one lot that is currently vacant and zoned to allow multi-family.The parcel is located on the north side of the Burlington Northern Railroad tracks on the east side of Proctor. Affordability • According to the updated housing plan prepared by the Central Minnesota Housing Partnership,the median sales price of a single family home in 2000 was $160,000. If an annual 8% sale price increase is assumed,the median sale price of a single family home in 2003 is $205,473. Single family homes include both attached (townhouses) and detached homes. According to the 2000 Census,the median rent in 2000 was $592. If an annual 5%rental increase is assumed,the median rent in 2003 is $690.The median rent includes all renter occupied units, not just apartments. Regional Context When taken in the regional context, Elk River's housing inventory reflects the fact that Elk River functions as a min-regional center.The following table compares Elk River's housing inventory with that of 7 adjacent communities: S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 5 • 2000 Census Housing Information Elk Big Lake Big Lake Livonia Burns Data Source River Otsego Township City Township Township Ramsey Zimmerman Totals Total#Units 5782 2117 2167 2194 1254 1136 5946 1021 21617 1 unit detached 4216 1744 2124 1766 1242 1115 5712 814 18733 1 unit attached 432 14 8 67 0 4 91 27 643 2 units 46 19 13 7 8 4 16 0 113 3-20+units 1057 0 0 235 0 0 67 91 1450 Mobile Homes 31 307 22 119 4 13 85 89 1563 Year Built 1999-2000 282 51 162 264 94 56 275 88 1995-1998 960 223 331 532 252 165 1053 250 1990-1994 986 353 280 278 180 216 1034 191 1980-1989 1639 318 519 375 254 228 1032 172 1970-1979 913 865 563 248 307 214 1984 160 1960-1969 369 92 124 170 80 102 392 40 1940-1959 299 86 96 208 25 37 94 68 1939- earlier 334 129 92 169 62 118 107 52 • Median Value Owner occupied $144,800 $132,700 $155,200 $123,900 $154,500 $157,500 $143,500 $115,000 Median Rent Renter occupied $599 $525 $1,261 $536 $663 $575 $938 $430 Total# occupied 5664 2062 2106 2117 1222 1123 5906 1018 Owner occupied 4436 1991 2051 1785 1187 1097 5756 963 Renter occupied 1228 71 55 332 35 26 150 55 Elk River has 26% of the total dwelling units of all 8 communities listed on the table. Elk River also has 67% of the townhouses.The most telling comparison is in apartments. Elk River has 73% of all the apartments in the study area.This reflects the fact that Elk River has the highest concentration of employers and jobs in the area.Three townships and the City of Otsego do not have any apartments.The City of Big Lake has the next highest number of apartments with 235 (16% of the total). The only community in the area that plans on increasing the number of apartments is Ramsey.The preliminary plans for their • "Town Center" project include 520 apartments. S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 6 • The median value of owner occupied dwellings in Elk River compares favorably with the four other cities in the region.The three townships all had higher median values. City Median Value Owner Occupied Dwelling Elk River $144,800 Ramsey $143,500 Otsego $132,700 Big Lake $123,900 Zimmerman $115,000 Township Median Value Owner Occupied Dwelling Burns Twp. $157,500 Big Lake Twp. $155,200 Livonia Twp. $154,500 Needs Analysis Regional or Local Approach The city needs to address a policy decision, decide whether a regional or local approach should be used when assessing the housing needs and goals for Elk River. Elk River • functions as a mini-regional center for the surrounding area and the question that needs to be asked is, "should our housing policies reflect that role?" Elk River supplies 26% of the total housing units for the area,which reflects the City's role as a mini-regional center. However,the city also supplies 73% of the apartments for the area. Elk River also supplies about 67% of the townhouses/twinhomes for the area. When the mix of housing types is examined at a local level,the mix is quite different.The mix of apartments to single family drops to 16.2% apartments.The mix of townhouses to detached single family is also quite different.The mix of townhouses to detached single family is 14%townhouses to 86% detached single family. Housing Balance-unit type, affordability Historic trends seem to indicate that the percentage of multi-family units to owner occupied units is decreasing and will continue to decrease unless the city makes a conscience decision increase that percentage. Currently there is only one 2.42 acre parcel that is vacant and available for multi-family development. The current ratio of multi-family to single family dwelling, (16%to 84%), is low compared to communities that experienced their growth prior to the 1980's and high compared to those communities that experienced their growth during the 1980's and 1990's. Planning theory is that a good mix of multi-family to single family is around 20%. The trend in townhouse development is the opposite of multi-family.The ratio of townhouse units to detached single family units has been steadily increasing. In 2000,the S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 7 410 mix between townhouses and detached single family units was 10.1%townhouses to 89.9% detached single family.Currently,townhouses make up about 13% of the single family units. Townhouse lots make up about 37% of the vacant single family lots while detached single family lots make up 63%.If the current ratio of vacant townhouse lots to vacant detached single family lots continues,the percentage of townhouses to detached single family will increase. What is "Affordable"? Housing affordability is based on 80% of the area's gross median income; of that 80%,no more than 30% should be used to meet housing needs.The current median income for outstate Minnesota is $65,000; 80% of that is $52,000.When broken down into an hourly wage, $52,000 per year equates to$25 an hour.When determining affordable housing, staff used$52,000 for a family of four as the base wage. Based on this amount a family could theoretically afford a mortgage of about$1074 per month, or house and lot with a value of $170,000. Options The following options are available if the city determines that there is a need for additional housing types and affordability: • Zone land appropriately.There is currently a lack of land zoned that would allow • development of a multi-family housing project.The only zoning district that allows multi-family dwellings is the R4 district.There is one vacant lot in Elk River that is zoned R4.The city could increase vacant land available for multi-family dwellings by rezoning specific properties to R4.This land would have to be within the Urban Service District,undeveloped, and should be within walking distance to commercial districts.There is some land that fits these criteria. There is a vacant parcel on the west side of Jackson Avenue, east of Lions Park that is currently zoned C2;there is also undeveloped land along Twin Lakes Road, near the MnDOT park and ride facility,that might also work. • Redevelopment.This option would also include rezoning to the appropriate zoning district to allow multi-family.The most likely area for this option would the village core area.There are many possibilities for this option;however,it would likely involve the redevelopment of older single family dwellings. These dwellings provide much of the affordable single family units in the city.By redeveloping these parcels affordable single family units would be replaced by multi-family units. • Accessory or"mother-in-law" apartments.This option involves allowing accessory apartments to single family dwellings.Typically these apartments are located above garages, in walk-out basements, or on second floors. These types of apartments are currently not allowed in any of our single family districts.These apartments would provide affordable units and would also provide homeowners with extra income. • S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 8 • • Density bonuses /Amend zoning requirements. The zoning code could be amended to allow higher densities in developments.The higher density would reduce the cost for each unit.The city could also offer density bonuses if builders include affordable units in the development. A formula could be developed that would allow extra market rate units for affordable units. • Housing Rehabilitation.The city could establish a housing preservation and rehabilitation program. Since most of the affordable single family housing is older, a plan to preserve and rehab this existing housing stock would be an effective way to maintain the city's affordable housing supply. • Tax Increment Financing. State law enables cities,HRAs and EDAs to administer development,redevelopment or rehabilitation activities that are financed by the increase in property taxes generated by the activity.This tool can be used to redevelop blighted areas and construct low and moderate income housing.The city and HRA could consider a policy to provide'[IF for the redevelopment of blighted residential areas and/or new construction of low and moderate income housing. Staff believes that the most effective way to address the issue of providing an opportunity for affordable housing would be to utilize each of the options outlined above. There is no one "silver bullet" that can address the need to strike a balance in housing stock, both by type and affordability. Each of the above options provides an opportunity to deal with housing in a comprehensive matter. • S:\PLANNING\Scott\HRA 8-25 housing.doc HRA/Housing August 25,2003 Page 9 0 Apartment Inventory St.Name St.Number Year Built Number Unit Senior 5th St 543 1960 6 Proctor Ave 814 1965 21 Angel Ave 925 1965 24 School St 1175 1965 16 Gary St 18594 1967 36 Norfolk Ave 330 1968 4 Irving Ave 433 1968 8 3rd St 7 1972 15 3rd St 23 1972 15 Baldwin Ave 365 1976 12 Baldwin Ave 379 1979 24 Main St 241 1979 4 Meadowvale 1860 1979 8 Rd Evans Ave 350 1980 63 yes Freeport 200 1985 4 Ave School St 1111 1985 24 • 191 1/2 Ave 11755 1985 18 Evans Ave 300 1985 36 yes 3rd St 420 1985 6 yes School St 1109 1986 24 Freeport 847 1986 40 Ave School St 1115 1987 24 3rd St 300 1987 18 3rd St 340 1987 18 191 1/2 Ave 11940 1987 80 School St 1001 1988 61 3rd St 380 1988 18 Auburn PI 631 1989 24 Evans Ave 355 1990 112 School St 1227 1990 51 Evans Ave 280 1992 53 yes Holt Ave 385 1992 23 Highland Rd 11798 1992 30 Lions Park 1105 1995 68 Dr Baldwin Ave 337 1973 30 School St 805 1970 12 5th St 151 1986 26 Auburn PI 2003 10 • S:\PLANNING\Scott\HRA 8-25 housing.doc ( d n � � nor nr. n n n r CD CD CD C CD it Z Z x • w G = = 0 n �q ,g v' H ,d x N n 5. " fn W 3' y W N O ,.. O C ° N n N O 0 "„ 7' O N. O O 0 = N W O O fy W 0 W O R. .-„ x W N L-` F, W N N n te- 7J Cn N ° O 6, Z Pd ° & N M N M Q E n g c 0" r g- rn 7_4 o y E R° n x o. n Al n O N a. Q• 0 N 0 °, 0 ° "' 0' N ° cn d t7 "' N ° 0 0 cl H 0 �w 0 rn 2 c? 0 0 0 O m it b � �' � _ CI 0 N 0 x -U y F ° o n 5 c =� A. N oa 0. • OP ciA r Cl) Cl) ��� ' n "I x "'in n 4. n 4 Q- M °o n o.o �J co rn, Z z 5 C g AD . cm' a g 0 it as ° n, -c N h F. • \ \ \ \ Q O \ • \ \ \ \ O N N N N N . N N N N N N fD O rr re re (n w N a R° . R° N R° w O CA p w co m w w r a Re a.° ° ° ° ° - ° ° ° 1 • . , G O V E R N"I N G YOU R CITY 1111 . A Best Practices Review of Preserving Housin g By Jody A.Hauer uality housing does more than For certain housing strategies, Min- had adopted for rental properties contain- provide shelter. It stimulates nesota cities have typically worked with ing two or more units. With the annual neighborhood vitality, adds to another (or several other) agencies—a mailing to property owners notifying economic development, and housing and redevelopment authority, them of upcoming inspections, Mounds sustains local tax bases. In the the county, a community action agency, View's inspector began including a list of report, Preserving Housing:A Best nonprofit housing organizations, or a common maintenance-code violations— Practices Review, the Legislative regional development commission. items like inoperable smoke detectors Auditor's Office describes best Best practices in preserving housing. and improper clearance to electrical practices for local governments involved To be successful, cities first have to equipment. The list allows owners to fix in preserving housing stock. The report determine their housing needs and see problems prior to inspections, reducing also features examples of local agencies how they relate to other long-range the number of deficiencies and staff that have adopted best practices. planning concerns in the community. time for re-inspections. Preserving existing housing is neces- This analysis often requires housing Certain housing strategies offer sary for three practical reasons. expertise that cities, especially smaller incentives to preserve residential strut lioFirst, Minnesota has an increasing ones, have to obtain from consultants tures. They include financial assistance, number of households. Across the state, or other housing experts. housing information and expertise, and the number of households grew 15 per Once cities identify housing needs, a direct rehabilitation and repair services. cent between 1990 and 2000. House- best practice is determining appropriate One example is the use of a"remodeling holds tend to be smaller than before: responses to those needs. This means advisor," as is done through the housing the number of one-person households setting housing goals and objectives— and redevelopment authorities in Rich- shot up 23 percent over the decade, a process that should involve local field and South St. Paul.With experience and average household size decreased leaders—and evaluating a broad range in the building industry, the remodeling in all regions of the state. of options. advisor helps homeowners with questions Second, although the number of One best practice in deciding on on renovations, ideas for remodeling, housing units grew, it lagged behind appropriate housing strategies is to and general cost estimates. the rising number of households. In determine whether cities have sufficient Another best practice is conununi- 2000, Minnesota had 92 households for internal capacity or whether they should cating housing information in timely every 100 housing units compared with rely on outside professionals. Roseville ways and multiple languages, when 89 households for every 100 housing is one of several metropolitan cities necessary. Melrose used its city's spring units a decade earlier. opting to use the Housing Resource newsletter to remind residents of the Third, Minnesota's housing stock Center, an arm of the nonprofit Greater need to obtain building permits for is aging. In 2000, more than half of Metropolitan Housing Corporation. residential building improvements. The Minnesota's housing units were at least The Center employs construction newsletters have also contained informa- 30 years old. This is an age by when managers who answer remodeling lion about the city's rental-inspection many major building systems—roofs questions and help residents evaluate program in English and Spanish versions and furnaces, for example—need to contractors' bids. It also administers to help its numerous Spanish-speaking have been replaced. several home-improvement financing renters. Local government involvement in programs on the city's behalf. The report is available in the "Pro- preserving housing. Cities have adopted Housing strategies. Among housing gram Evaluation" section of the Office property maintenance codes, established strategies that communities may choose of the Legislative Auditor web site at: rental-unit inspection programs, required are adopting local codes with standards www.auditor.leg.state.mn.us. The inspections before homes may be sold, for maintaining residential properties. web site contains supplementary mate- provided housing-improvement infor- One best practice for administering rials and links not found in the written mation and expertise, encouraged proper housing-related codes is to encourage report. Readers may also contact the administration of the state building voluntary compliance, in turn, nunirniz- Legislative Auditor's Office at (651) . code, and offered financial subsidies to ing resources needed for enforcement. 296-4708 for a copy. t leverage private investments. Best prat- As one example, Mounds View tices are tied to each of these housing took steps to encourage compliance Jody A. Hauer is project manager with the strategies. with the maintenance standards the city Office of the Legislative Auditor. 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MilaWs uh I /i a NAli , 7715i TOWNHOUSE DEVELOPMENTS „TM .�i ill ,, ,� I: ., ,,k. + ..TM El EXISTING DEVELOPMENTS UNITS s °°■� \\,_ • COUNTRY CROSSING 58 ' 6M �' l f 1 — • MEADOWVALE 26 • MEADOWLARK 14 8 NM : ,m TM • COTTAGES OF ELK RIVER 59 �: e TWIN LAKE TOWNHOMES 88 '° ° • BARRINGTON PLACE 42 �� � � 1� Ira • TROTT BROOK FARMS 213 $ ,,,n w • TROTT BROOK FARMS SOUTH 213 V °j 0 MISSISSIPPI RIDGE 22 ' ► y i • KLIEVER LAKE FIELDS 116 Y of 1 '''' t \ ► 1►.` I MARSHES OF TROTT BROOK 81 Ei 1 - " 1 • PROCTOR ONE 12 g \, ;.w . River g - 0. 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PIA pa,4_,;(41ag--, AT.-1 0 _ AIN Em:-14.:14,,,f-■ Irit\VISit, iiiial ra Legend itAv i litiktVI mil Single Family Residences 10-4111 ■1 1,__Iillin MI Rim Year Built :al% up IN .....\\I NAP 0 -......, 1 - 1939 III Ilk millill r. lio 1940 - 1949 \ 1 Il 1950 - 1959 1111. mllf" 1960 - 1969 ■■ A 4 \\ 1970 - 1979 ik■,44 ---, 1, kik 1980 - 1989 t,I II ti■ I '----------------,. 1990 - 1994 III 1995 - 1998 1999 - 2003 I ,tom (---\\ _r_ _ ".F _, =� Np: ..s.,.`.;;: _... ..> -,... _,.,.,._ ,ray- �...." I illk I _ Spring 2003 fi Th 1\4 ktf ptnt . l 1 Suburban T Sam Newberg Among the`most popular`reeent real estate -" '--rounding, On-e riot dominated by the car and development trends in the Twin Cities, as one with more aesthetically pleasing archi- well as nationally, is the creation of town tecture. centers. They come in many forms,but usu ally involve redevelopment of existing or The other, perhaps more important factor in �� ! w .;-"...;.......,"I IN MN obsolete uses. This edition of Sitelines exam- the increased interest in suburban down - 4 ines the market potential for success with towns is tax dollars. Inner ring suburbs, today's new suburban downtowns. once bastions for families fleeing urban . 4 1 ill i.: , , t t decay, are now seeing their own cities evolve, "sf ' R' Traditionally, Downtown has been the ten- with aging housing stock and retail centers , . i L'-' 1.111_4111 - tral retail and commerce district within the that are becoming obsolete. Thus, a tremen- central city of a metro area. Transit lines and dous opportunity exists to redevelop in the major streets often converge on a centralized, inner ring suburbs with a variety of uses, walkable place. from housing to office to retail. Densification of sites can also generate high- Excelsior and Grand, St.Louis Park The magnetism of downtown declined as er taxes in the long term. suburban malls and office parks evolved after large-scale retail development requires a World War II, and downtowns ceased to be Market Opportunities for nearby freeway or major arterial street for the only place where business took place. Suburban Downtowns success. Additionally, smaller retailers gen- The very notion of a main business section of erally rely on larger,big-box retailers and the a city morphed into commercial corridors A variety of possibilities exist for develop- traffic they generate. If a big-box component and quadrants located along major arterial ment in suburban downtowns. They are not is not included as part of a suburban down- streets and at freeway interchanges. Their the same possibilities that led to the develop- town, retail development is often restricted spatial arrangement was generally not pedes- ment of original downtowns, although their to small-scale neighborhood and convenience trian friendly. form and some uses are similar. Also, trans- uses. portation access can inhibit development Today, suburbs that never had downtowns potential, unless the location is superb, such Design issues are a large factor in new sub- are beginning to build versions of them. as the interchange of two major freeways. urban downtown development if retail is They are varied in nature,form and appear- desired. If big-box development is chosen, ante. Housing Development the city and developers must find a way to blend the large buildings into the overall Wh Build a Downtown? The possibilities for a variety of multifamily design in order to create a pedestrian-friend- Why housing types are great in new suburban ly environment. Solutions include adequate- Suburbs have several motivations for treat- downtowns. Rental apartments, for-sale ly hiding parking, and possibly constructing ing new downtowns. They include: condominiums and townho:nes, and various multilevel big box stores. senior housing types are all possibilities for • Desire for a sense of place and commu- infill development, and often are in demand Examples - Are they Downtowns? nity due to shifting demographics and household • Desire among residents and employees types in evolving suburbs. In particular, as Several new suburban downtowns are in the for a central gathering place baby boomers age and their housing planning or development stages around the • Demand for a quaint, well designed demands shift, a variety of housing types are Twin Cities. They include Excelsior and place to counter the placelessness of gaining popularity. Multifamily housing is Grand in St. Louis Park, Heart of the City in denser in form,and is more easily integrated Burnsville, and Arbor Lakes in Maple Grove. urban sprawl into a mixed-use neighborhood such as a sub- Each downtown serves a slightly different • Municipal demand for additional tax urban downtown. purpose, has a unique market potential and base from redevelopment of a blighted or mix of planned development, and each bends underdeveloped area the definition of the term "Downtown." Office Development People are generally draw to distinctive Office development is another potential use Excelsior and Grand places. Today, the overall opulation is liv- for suburban downtowns. Office develop One of the highest profile new downtowns in ing in suburbs in greater nu bers than ever ment can be integrated into mixed-use devel- the Twin Cities is in St. Louis Park. before. Something about li the concept of opment, and is well-suited to be located in Consisting of 125 acres of land overall, many downtowns, whether it be nostalgic or prat- buildings with retail uses on the ground of the components of the "downtown" are tical, is causing this growing suburban popu- floor. already in place, such as Target, Byerly's, and lation to begin to seek a nhore quaint sur- Park Nicollet Medical Center. These will Retail Development remain largely unchanged, and it is the new development, called Excelsior and Grand, Retail development is one of the major chal- that helps create the downtown concept. 1.4 ' V�� lenges for town centers, since they are often 11 � big box based, and their physical mass often Excelsior and Grand, which is opening in 11 WAR II 1 Research Inc. runs counter to the notion of town centers phases, is a mixed-use development of over and the quaintness desired. Retail develop 350 apartments, with ground floor retail ment relies on good access and visibility, and space, in addition to for-sale multifamily 4.' continued on p.2 1110 ‘11, , • area that includes multifamily housing, retail, Heart of the City will not displace the entertainment and a major office user. Burnsville Center district of the City as the k , 1 However, it is only the new development that main retail area of the city. It can, however, �� 'L F. is pedestrian-oriented and creates a distinc- be a smaller, more diverse business district. tvitioittr`' ritiZiPrtt-t-- = tive sense of place. In that respect, it will evolve over time as an :, ,, , , actual downtown, with a variety of housing, - Heart o the Cit employment, retail hospitality, and o en ''' 4 L �� w - f b p — ,fir- i;, ,# '. � The City of Burnsville is creating a down- space uses. 4 � a.. _ town area, Heart of the City, that seeks to �1. �,- g redevelop an automobile-oriented section of Arbor Lakes s 's Nicollet Avenue,south of Highway 13, into a Arbor Lakes in Maple Grove has received - ,. a walkable, mixed-use town center. A variety much attention as a new suburban down- of uses are planned for Heart of the City, town. However, the area would not likely Arbor Lakes,Maple Grove including residential, office, hotel, retail and receive much attention without its two-block open space. The initial redevelopment in main street, which consists of small stores in housing. The mixed use development Heart of the City consists of several residen- two-story buildings with no setbacks. The replaces less cohesive, automobile oriented tial projects, including Grande Market Place, Main Street itself contains stores that would uses with a more pedestrian oriented envi developed by Sherman Associates. otherwise be located in a small strip center ronment. The retail spaces are just beginning Construction began in August 2002, and first adjacent to or attached to larger, big-box to open, including a Panera Bread shop. occupancy is expected in 2003. Grande retail. It is the form, the quaint Main Street Although the apartments help generate traf Market Place will contain 113 units, 50 of design, that attracts attention,but it could not fie, the retail users must rely on good access which will be affordable to individuals at or survive without the surrounding big box from Excelsior Boulevard to bring in access below 60% of the median income. Located anchors to attract customers. tional customers. along Nicollet Avenue, Grande Market Place will also contain 15,000 square feet of retail The area around Main Street is a mixed-use Is Excelsior and Grand a downtown? In space and a culinary school on the ground area,however,with rental housing and Maple many ways, yes. It is part of a larger overall floor. Grove city offices also located within walking continued below distance of the Main Street. Furthermore, Sam Newberg approximately 1,500 additional housing units ' , ,- Research Analyst are planned for the area, to be located within it 1 Since 1983, ' Xfleld Maxfield a general walking distance to Main Street. It �� Research Inc. � ,Scam Newberg joined Maxfield Research in lUovenzber, � 1 k T is this overall area of Maple Grove that makes of 2000 and focuses on a wide variety of projects for Research Inc. it the main business section of the City, albeit the firm.Projects include studies of mixed--use,transit has helped guide spread out, and only a small portion actually oriented,,towrahonae and retail development as well as the real estate commu- resembles a "downtown." urban/loft style and market-rate apartments. nity in realizing the full potential of its public and private assets. Consulting I o o k i n Ahead Sam is also involved with the Urban Land Institute and is curr enal y,serv- services ea services provided by Maxfield Research ing on the Executive Committee of the 171,I Minnesota District Council.He Suburban town centers come in a variety of has written numerous articles for Urban Land magazine pertaining to support developers,planners and finan- forms, and whether the term "downtown" is land use issues in both the United States and Europe.Articles of his have Biers of senior housing, multifamily applicable is debatable. The one thing that is also appeared in Planning Magazine,the Minnesota Real Estate journal, housing, government-sponsored projects certain is suburbs face a variety of market y g and commercial developments. Y Me Star Tribune,and Preservation Monthly magazine. possibilities when developing a town center. A well designed downtown will provide an He has a Bachelor of Arts degree in Geography from the University of attractive gathering place for area residents Mary Bujold President g g p Wisconsin, Madison. Other education includes several Appraisal Institute and workers, and a variety of housing types, Maxfield Research Inc. , courses and rntroductor°t course'at the Humphrey Institute of Public as well as office and retail space, can be Affairs at the University of Minnesota. 615 First Ave.NE, Suite 400 incorporated in mixed-use developments to Minneapolis,MN 55413 create a sense of place. Phone: (612) 904-7977 The 2003 Maxfield Senior Housing Fax: (612) 904-7979 Most importantly, suburban town centers Update is available now. If you would mbujold @maxfieldresearch.com cannot be stamped into every suburb using a like to receive a copy of the Senior Housing boilerplate or standard format. Every site is Update, please e-mail your name, company, & Proudly unique, and a thorough understanding of the address to: paustin @maxfieldresearch.com Celebrating strengths and weaknesses and the market :9-7, E forces of each area is essential for a successful and we will send you a free copy suburban town center. via e-mail. rAkIL Years U s divA i xfield Research Inc. 615 First Ave. NE, Suite 400 Minneapolis, MN 55413 Phone: (612) 338-0012 Fax: (612) 904-7979 Ms.Catherine Mehelich City of Elk River 13065 Orono Parkway Elk River MN 55330 • X88' m a.t�88 p.�.� acorn ° Zw `.J : m m o m� °*x. .'N:o p o ¢.° F..r. 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