3.0. HRSR 05-08-2001 Item # 3.
_i
110
City of
Elk
River
MEMORANDUM
TO: HRA Planning Commission
River's Edge Downtown Business Association
FROM: Cliff Skogstad, Chief Building Official
DATE: May I, 2001
SUBJECT: Rating Process for the Building Condition of the
Downtown Redevelopment Plan
As to your request the properties in the downtown redevelopment plan had a walk by
inspection performed and the findings of the building conditions were provided to you for
this plan. Three building conditions were created for this project. These conditions were
good, fair and poor. Provided for you is a summary as to how these conditions were
designed, they are as follows:
• Good
This condition would be put on a building if it was fifteen(15)years of age or newer. This
was determined since building codes were being enforced at that time. If building codes
were enforced it would be easier to determine that the health and safety,an accessibility were
installed at the time of construction and therefore, would receive a rating of good. In
addition, the visual of the exterior would have a play in this rating.
Fair
Again this would be based on structures built fifteen (15) years or older. At this age we
would be getting into an area that building codes were not as strictly enforced or not at all.
Without the enforcement of the building codes it would be more costly to bring these
structures in compliance for the accessibility code, energy code and the fire safety code.
However,going through files if permits were issued as far as remodeling or improvement
permits this rating could go from a fair to a good rating.
Poor
This rating again is based on the age of the building and also permits being issued in regards
to remodeling or upgrading to the structure. If we found no permits were issued for this
type of activity and with our visual inspection we would give this building a poor rating. But
doing a visual inspection only we found this type of rating would be the fairest way of rating
these structures.
If you have any questions regarding my findings and the information provided,please feel
• free to call.
Item # 3.
• City of
Elk -�
River
MEMORANDUM
TO: Housing & Redevelopment Authority
Planning Commission
River's Edge Downtown Business Association
FROM: Catherine Mehelich, Director of Economic Development
DATE: May 8, 2001
SUBJECT: Historic Significance Assessment Criteria
The City of Elk River Heritage Preservation Commission (HPC) completed a general
assessment of historic significance of the properties in the Project Area using the following
standards of a Heritage Preservation Site Overlay Zoning District outlined in the Elk River
City Code:
• Statement of Purpose: The purpose of the Heritage Preservation Site Overlay
Zoning District are to: (1) Safeguard the heritage of the City by preserving sites and
structures which reflect elements of the City's cultural, social, economic,political,visual, or
architectural history; (2) Promote the preservation and continued use of historic sites and
structures for the education and general welfare of the people of the City;and (3) Foster
civic price in the beauty and notable accomplishments of the past.
Standards: The Heritage Preservation Commission shall recommend to the Planning
Commission that an area,building district, or object be rezoned to the Heritage Preservation
Site Overlay Zoning District upon determining that such site meets one or more of the
following criteria:
1. It has character,interest, or value as part of the development,heritage or
cultural characteristics of the City of Elk River, State of Minnesota, or the
United States;
2. Its location is the site of a significant historic event;
3. It has yielded, or is likely to yield,information important in pre-history or
history;
4. It is associated with a person or persons who significantly contributed to the
culture and development of the City;
Historic Significance Criteria
May 8,2001
Page 2 of 2
• 5. It embodies distinctive characteristics of an architectural style,period, form,
or treatment;
6. It represents the work of an architect or master builder whose individual
work has influenced the development of the City of Elk River;
7. It embodies elements of architectural design, detail,materials, or
craftsmanship which represent a significant architectural innovation; or
8. Its unique location or singular physical characteristics represents an
established and familiar visual feature of a neighborhood, community, or the
City of Elk River.
Attached is the HPC summary and recommendations of the Historic Significance
Assessment. Steve Rohlf, Building& Zoning Administrator will present the HPC
assessment process and findings at the meeting.
•
•
• DOWNTOWN REDEVELOPMENT PLAN
HISTORIC SIGNIFICANCE
An inventory of the parcels involved in the Downtown Redevelopment Plan was
conducted by the City of Elk River's Heritage Preservation Commission (HPC) on March
3, 2001. Each parcel was measured against the eight criteria(found in the City of Elk
River Code of Ordinance), which are used to determine whether or not a site is eligible to
be zoned"Heritage Preservation Site Overlay Zoning District". The historical
significance of the parcels was ranked high, medium, low or not significant.
It is important to note that not every site that was ranked historically significant was
because of the buildings or structures found on the parcel. An example is the Hitching
Post Condominium site. The buildings on this parcel are fairly modern, but site still
contains hitching posts dating back to the late 1800's.
In certain areas, buildings that had an individual ranking of low or medium historic
significance should be deemed highly significant when considered in combination with
adjacent buildings. The following areas should be considered highly significant:
➢ The Brick Block—The area north of Main Street and west of Jackson Avenue
(304, 309, 313 and 315 Jackson Avenue). These buildings were part of the rebirth
of Elk River's business district after a majority of the commercial buildings in the
• city's previously predominate business area north of the railroad tracks were
destroyed by a fire in 1898. Not only does this entire block represent an
established visual feature of the community, it embodies distinctive architectural
treatment. The brick construction used in this block was a direct response to Elk
River's fire experience. The Brick Block is anchored on the south end by
Houlton's Bank. W.H. Houlton, the founder of this bank, is a significant figure in
the development of Elk River. It is recommended that the potential for restoring
these buildings be explored.
➢ Commercial Block Downtown Elk River—The area south of Main Street and
west of Jackson Avenue (701, 705, 707, 709, 713, 715 and 717 Main Street). It is
believed that these buildings were part of an expansion of the downtown
commercial area shortly after the turn of the century. The exception in this block
is the Sunshine Depot, which was built in 1898 and is believed to be the oldest
extant commercial structure in Elk River. This block may have potential for
restoration under their modern facades. Even in their present condition they
represent an important familiar visual feature of the community.
➢ Commercial Block Downtown Elk River—The area south of Main Street and
east of Jackson Avenue (641, 647, 649, 651, 653 and 657 Main Street). This
block too represents a unique visual feature of the community. More information
on the ages and previous uses of these buildings needs to be gathered and the
potential for their restoration should be studied. Prior.to the lose of the hardware
•
y,4k
store next to the Cinema Office Building, this block was contemporaneous with
the previously mentioned-block.
➢ Residential Area—A grouping of homes along the west side of Gates Avenue,
north of Main Street and south of 4th Street. These homes were built in the
original "Plat of the Village of Elk River" shortly after it was established in 1868.
The area not only represents an established visual feature of the community, but it
also contains one of the last remanates of early residential development of the
City of Elk River.
➢ Residential Area—From Jackson Avenue to Irving Avenue either side of 4th
Street. Again this is a grouping of older residences that together have character,
interest or value as part of the development and heritage of Elk River as well as
representing an established visual feature of the community.
➢ Residential Area—On the far western edge of the study area, the neighborhood
south of Main Street and east of Morton Avenue. Most of the houses on this
block were built in the 1930's. They represent a variety of distinct architectural
styles from that period and for the most part have retained their integrity. They
are also the start of a larger residential district of significance, which continues to
the west. This area represents an established visual feature of the community.
➢ River Bank Downtown—The river bank in the downtown area is being noted as
highly significant because it is likely to yield information important in pre-history
or history. There is a high potential to find archaeological deposits and the area
was the site of numerous commercial activities in past, e.g. ferry crossing site,
starch factory, and a sewer line that was a hand-dug WPA project.
Although there is a fair amount of expertise on the HPC, it is strongly recommended
that the historic significance of the parcels included in the study area be
professionally reviewed as part of a "Context Study". Besides being a more in depth
review than the one that the HPC did, a context study considers the significance of
buildings and/or areas in a local or regional historic context.
A closer review of all areas involved in specific redevelopment projects is recommended.
This is especially true for those areas where buildings or sites with historic significance
have been identified.
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Item 3.
' moi
of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
Planning Commission
River's Edge Downtown Business Association
FROM: Catherine Mehelich, Director of Economic Development
DATE: May 8, 2001
SUBJECT: Downtown Redevelopment Plan —Joint Worksession
The purpose of the joint meeting between the HRA,Planning Commission and River's Edge
Downtown Business Association is to begin to discuss a future vision for the Downtown
Central Business District. This discussion is Phase II of a three-phase workplan to establish
a long-term,implementation plan to maintain and encourage the vitality of Elk River's
Downtown. Phase I included a physical inventory and market study of Downtown;Phase
III will be drafting and adopting the Plan.
Attachments
• Conclusions &Recommendations, Maxfield Research Inc.
2001 Elk River Downtown Market Analysis
• Maps &Assessment Criteria
* Project Area
* Building Condition
* Historic Significance
Project Area
The redevelopment plan project area includes the area north of the railroad tracks to 5``'
Street, south to the Mississippi River and between Morton and Gates Avenues.
Background
Following a joint HRA and City Council central business district worksession, the HRA
authorized staff to complete a downtown redevelopment plan. The purpose of the plan is to
provide direction for redevelopment and new development activities.
In the past 30-years the City and downtown community has participated in at least 6
411 planning efforts that resulted in a variety of plans. Three plans specifically addressed the
Riverwalk design features. Two plans proposed overall redevelopment planning and specific
Downtown Redevelopment Plan Worksession
May 8,2001
Page 2 of 2
• site and land use recommendations. The most recent plan, completed in 1999 by Theresa
Washburn,was a visioning plan.
Discussion Points
Rather than recreating a large visioning process, a review of the consistent themes identified
over the years will be presented,in addition to the new information gathered about building
condition and market potential.
Using the information gathered in Phase I that will be presented to the participants of the
joint worksession, staff would like to discuss the following issues:
1) Priority projects/sites for redevelopment,rehabilitation or improvements
2) Priority land uses desired
3) Desired design elements: setbacks,building materials, etc.
A follow-up worksession involving the HRA, EDA and City Council will be held to
formulate and finalize the common vision and actions.
S
•
SUMMARY OF FINDINGS
• Purpose and Scope of Study
Maxfield Research Inc. was retained by the City of Elk River to conduct a comprehensive
analysis of the market potential for redevelopment for Elk River's Downtown. Our research
included an analysis of the existing supply and market conditions of housing, retail, and office in
the area. We also analyzed growth trends and demographic characteristics and the impact of
these trends on the potential to develop various land uses in the Downtown redevelopment area.
Based on growth trends and market conditions in Elk River,we have quantified demand for
additional housing, retail and office space for the period 2000 to 2010. Moreover, in light of our
analysis of the existing Downtown land uses and condition,we have forecasted the amount that
is supportable in the Downtown through 2010. Our demand calculations and recommendations
are intended to serve as a guide to City staff as they develop a strategic plan for this area.
Downtown Overview
• Elk River is the largest community and county seat of Sherburne County, one of the fastest
growing counties in Minnesota. Sherburne County's growth is largely attributed to being
located between the rapidly growing Twin Cities Metro Area and St. Cloud Metro Area.
• Like many fast growing communities, the retail needs of the population have simply
• outgrown the ability of Elk River's downtown to serve them. Highway 169 runs north-south
through Elk River, about one-half mile east of the Downtown, and has attracted much of the
new commercial development that has occurred in Elk River during the past decade,
including retail shopping centers. Thus, the primary retail shopping area has shifted from the
Downtown to Highway 169.
• Overall, the Downtown Redevelopment Area encompasses 67 acres, not including land
within right-of-ways (streets and railroads). Based on data from the City of Elk River, we
calculated the mix of existing uses as retail, office, industrial, and residential (single-family
and multifamily), including 151,000 square feet of space of retail and service businesses and
another 67,000 square feet of office space, and 130 housing units.
• We have identified three distinct areas in the Downtown Redevelopment Area,based on
current land uses and physical barriers. Each area presents its own redevelopment
opportunities and challenges. Our recommendations focus on the development potential for
each area and strategies to enable these areas to compliment one another. The three areas
are:
1. Core Central Business District (CBD) --south of railroad, east of King Ave.
2. Northern Area—north of railroad
3. Western Transition Area—south of railroad, west of King Ave
. • The Core CBD is the focal point of the Downtown and features turn-of-the-century retail
buildings typical of most traditional downtowns. Its greatest amenity is being located
MAXFIELD RESEARCH INC. 1
SUMMARY OF FINDINGS
• directly on the Mississippi River and the existing character. Redevelopment in the Core
CDB is limited by lack of development sites.
• The Northern Area features a mix of retail and service businesses, offices, and housing east
of Jackson Avenue, and industrial uses west of Jackson Avenue. While the Northern Area
can benefit from its convenient access to the Highway 169 commercial areas, redevelopment
potential is limited by poor visibility from Highway 10 and no frontage along the River.
• The Western Transition Area consists primarily of single-family homes with offices and
some retail located adjacent to the Core CBD. It is considered a transitional area from the
single-family neighborhood to the west and the Core CBD. Frontage along the River creates
a great opportunity for redeveloping a portion of the Western Transition Area.
Key Trends
Housing
• Elk River is projected to add 3,850 persons and 1,510 households between 2000 and 2010.
This growth is greatest demographic factor affecting demand for housing in Elk River, since
the influx of newcomers is creating strong demand for nearly all types of housing.
• Our finding that strong housing demand exists in the Market Area is vital to the revitalization
• of Downtown Elk River. Simply stated, strong population and household growth will create
opportunities to enhance and expand the Downtown business base that otherwise would not
exist.
• Just as significant as overall housing demand to the revitalization of Downtown is that much
of the demand will be for higher-density rental housing and for-sale housing. A national
trend is that younger renters and also an increasing number of middle-aged households
without children, empty-nesters, and independent seniors prefer maintenance free housing in
unique urban environments. This is significant because efforts to create housing in the
Downtown will have one of the strongest impacts on sustaining Downtown's viability over
the long-term.
Retail
• As the Elk River area's population increased rapidly during the 1990s, so did retail sales.
Retail sales increased by 178% ($191 million) in Elk River between 1990 and 1998. The
development of shopping centers along Highway 169 certainly accounted for the majority of
increased sales in the City(particularly Elk Park Center—with Target as an anchor). Retail
sales will continue to increase rapidly, as a new Walmart and Home Depot were added in Elk
River in 2001.
• While new shopping centers have sprung up in Elk River during the past decade, the
Downtown has lost retail stores, such as hardware and clothing. These stores have been
replaced by either service businesses or specialty retail stores.
MAXFIELD RESEARCH INC. 2
SUMMARY OF FINDINGS
• • Downtown businesses and property owners almost all agree that the authentic character of
the Downtown separates it from other retail areas and should be kept intact. Most believe
that building upon the authentic character and enhancing the Downtown's position on the
River will enable the Downtown to remain vital.
Office
• Elk River's Office Market Area added 5,400 jobs (an 80.6%percent increase)between 1990
and 2000. From 2000 to 2010, the Market Area is forecast to add another 5,200 jobs, to a
total of 17,300 jobs in 2010. In 1990, 17% of the jobs in the Market Area were estimated to
be jobs that required office space, or 1,140 jobs. That percentage increased to 21% in 2000
and is projected to increase to 26% in 2010. The result is that the Market Area added 1,400
office jobs during the 1990s and is projected to add 1,960 office jobs between 2000 and
2010.
• Increased demand for office space in Elk River from employment growth will require
developing additional office buildings, since there is virtually no vacant space in the Market
Area.
• The majority of office-oriented businesses in Elk River area are those serving the local
household and business base, such as attorneys, insurance agents, accountants, and finance
related businesses. Most of these businesses have fewer than 10 employees and require
relatively small spaces.
•
Demand Summary
• Based on our demographic and market analysis and our assessment of the Downtown
Redevelopment Area, we have calculated the amount of additional housing, office, and retail
that can be supported in the Redevelopment Area over the next ten years (shown in the
following table). It needs to be noted, however, that this level of development may be
constrained by the ability to make sites available to accommodate new development.
Demand Summary
Downtown Elk River Redevelopment Area
2000 to 2010
Housing
For-Sale Multifamily 95-115 units
Market Rate Apai talents 300-360 units
Market Rate Senior Housing 60-70 units
Office 19,000-39,000 sq. ft.
Retail* 14,000 sq. ft.
*Demand through 2005
1111 Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 3
SUMMARY OF FINDINGS
• Housing
• While demand should be sufficient to support the amount of housing shown in the table, it is
most likely that development will be constrained by the availability of sites. Still, we believe
it is reasonable to fit 300 new housing units into the Redevelopment Area.
• Multi-story buildings, versus townhomes, are the appropriate form of rental and for-sale
housing in the Downtown. To be successful, however, a for-sale building (such as a multi-
story condominium or senior cooperative project) would have to be located on the
Mississippi River. Buyers of housing are more concerned with purchasing in a"high-
amenity"location,which will help to maintain their home value.
Office
• The Downtown can support an additional 39,000 to 59,000 square feet over the next ten
years. The 20,000 square foot 1st National Financial Plaza is currently under construction
and will satisfy a portion of this demand. Subtracting 1st National Financial Plaza, an
additional 19,000 to 39,000 square feet of office can be supported Downtown through 2010.
• Most office tenants Downtown will be smaller businesses (2 to 10 employees needing 200 to
2,000 square feet, on average) serving the local population and business base, such as
attorneys, accountants, insurance agents, etc. However,we believe that over the next decade,
Elk River will be able to compete with other northwestern Twin Cities suburbs for larger(up
to 5,000 square feet) technology based firms. These high-tech firms, along with healthcare
• businesses, should create more demand for lager spaces over the next decade.
Retail
• The Downtown can support up to 14,000 square feet of additional retail through 2005. This
is also about the maximum amount of additional space that could be developed in the Core
CDB, which is the portion of the Downtown Redevelopment Area that is most suitable for
additional retail. We believe that the Northern Area is more suited for service industries than
retail,because of limited access and visibility.
• New retail stores will predominantly offer specialty goods and be able to market their unique
Downtown location as an experience that can not be found at shopping centers. Also, new
housing located Downtown will increase demand for neighborhood goods and services.
Recommendations
The following is a summary of the overall redevelopment potential we identified in the Core
CDB, Western Transition Area, and Northern Area. More detailed recommendations, including
redevelopment potential for specific parcels, are found in the Conclusions and Recommendations
section of this report. Redevelopment and marketing strategies are also included in the
Conclusions and Recommendations section.
•
MAXFIELD RESEARCH INC. 4
SUMMARY OF FINDINGS
Core CBD
• • Combined with a lack of vacant parcels and the need to preserve most of the existing
buildings, the Core CBD has fewer opportunities for large-scale redevelopment than the
other two redevelopment areas. However,because of the existing character of the Core CBD
and its location on the River, it has the greatest opportunity for a high-end development that
would capitalize on these amenities. We believe that the demand for 14,000 square feet of
retail space over the next five years should be located in the Core CBD.
• Two areas that should be examined for development and/or redevelopment are the City
parking lot on the east side of Jackson Street and the block along the south side of Main
Street from the Highway 42 bridge up to and including the vacant building at 641 Main
Street (including Nadeau's, US Bank, and the vacant building at 641 Main Street). These
two sites present the best, and perhaps only, options for adding this space.
• One of the Core CBD's greatest assets is the existing supply of older buildings,particularly
the"Brick Block" (the west side of Jackson Avenue). Any new development in the Core
CDB should be designed to fit-in and enhance the existing Downtown buildings character.
Northern Area
• The Northern Area east of Jackson Avenue has a number of properties that are potential
candidates for redevelopment. We believe the Northern Area is better suited for office
development and some housing than retail, since the area does not have great access and
visibility from Highway 10 and most potential retailers would likely shy away from this area,
in favor of better visible shopping space in the Core CDB or along Highway 169.
• We believe that a high priority of the City should be retaining the existing Post Office on
Irving Avenue and 3r1 Street. We believe that the three parcels to the north of the Post
Office, currently developed with older single-family homes,present themselves as expansion
options to the Post Office.
• The Northern Area west of Jackson Avenue presents greater redevelopment challenges
because of the existing industrial uses. Since most non-industrial uses prefer not to be
located adjacent to industrial properties, much of the entire area would need to be
redeveloped at once if the area were to be redeveloped with other uses. We believe that
redevelopment of this area is a long-term planning project that should be a lower priority
than the remaining Downtown Area,but still a consideration for the future.
Western Transition Area
• The Western Transition Area is a mix of single-family housing (to the west) and offices and
limited retail (to the east). This area has easy pedestrian access to the Core CBD and a
portion also has River frontage, which is a highly desirable amenity to potential residents of
multifamily housing. Thus,we believe that this area has a high potential for redevelopment
to multifamily housing and some additional offices.
•
MAXFIELD RESEARCH INC. 5
SUMMARY OF FINDINGS
• Maxfield Research Inc. was retained by the City of Elk River to conduct a comprehensive
analysis of the market potential for redevelopment for Elk River's Downtown. Our research
included an analysis of the existing supply and market conditions of housing, retail, and office in
the area. We also analyzed growth trends and demographic characteristics and the impact of
these trends on the potential to develop various land uses in the Downtown redevelopment area.
Based on growth trends and market conditions in Elk River,we have quantified demand for
additional housing, retail and office space for the period 2000 to 2010. Moreover, in light of our
analysis of the existing Downtown land uses and condition, we have forecasted the amount that
is supportable in the Downtown through 2010. Our demand calculations and recommendations
are intended to serve as a guide to City staff as they develop a strategic plan for this area.
The report includes both primary and secondary research. Primary research includes interviews
with City staff, Downtown businesses and property owners, commercial brokers, homebuilders,
developers, and real estate sales agents. Secondary research is credited to the source when used,
and is usually data from the U.S. Census or Claritas, Inc., a nationally recognized demographics
firm or is locally collected data such as building permit information or assessor's data.
•
•
MAXFIELD RESEARCH INC.
CONCLUSIONS AND RECOMMENDATIONS
• Introduction
This section of the report outlines our recommendations and the potential for housing, retail, and
office development in Elk River's Downtown Redevelopment Area. We present our
recommendations and development potential for the three identified redevelopment areas; the
Core CDB, Western Transition Area, and the Northern Area.
Our research findings and the recommendations provided herein are intended to guide the City of
Elk River in their redevelopment planning for each of these areas. Our recommendations are
based on the findings from our analysis of demographic trends, the housing, retail, and office
market situations, and the projected demand for new housing and commercial space, and the
ability of the Downtown to accommodate new development.
Today, successful redevelopment increasingly requires both public and private efforts. The
public is unwilling to bear entirely the significant costs associated with providing for new
development and likewise are private developers unable to undertake these projects on their own
while still maintaining an appropriate profit margin. However, there are many cases where
strong joint ventures have resulted in redevelopment projects that have been very successful.
Demand Summary
• Based on our demographic and market analysis and our assessment of the Downtown
Redevelopment Area, we have calculated the amount of additional housing, office, and retail that
can be supported in the Redevelopment Area over the next ten years (shown in the following
table). It needs to be noted, however, that this level of development may be constrained by the
ability to make sites available to accommodate new development.
Housing. Our analysis found that demand should be sufficient over the next ten years to support
95 to 115 for-sale multifamily units, 300 to 360 general-occupancy rental units, and 60 to 70
market rate senior housing units. While demand should be sufficient to support 300 to 360
general-occupancy rental units, it is most likely that development will be constrained by the
availability of sites. We believe that it is reasonable to fit up to 200 rental units into the
redevelopment area,but potentially fewer, depending on how many for-sale units are developed.
Because of limited land supply, townhomes, which are a relatively low-density use, would not be
appropriate in the Core CDB, but may be on the fringes of the Redevelopment Area. Multi-story
elevator buildings are the appropriate form of rental and for-sale housing in the Downtown. To
be successful, however, a for-sale building (such as a multi-story condominium or senior
cooperative project)would have to be located on the Mississippi River. Buyers of housing are
more concerned with purchasing in a"high-amenity" location, which will help to maintain their
home value.
•
CONCLUSIONS AND RECOMMENDATIONS
• Demand Summary
Downtown Elk River Redevelopment Area
2000 to 2010
Housing
For-Sale Multifamily 95-115 units
Market Rate Apartments 300-360 units
Market Rate Senior Housing 60-70 units
Office 19,000-39,000 sq.ft.
Retail* 14,000 sq. ft.
*Demand through 2005
Source: Maxfield Research Inc.
Office. Based on our analysis, we find that the Downtown can support an additional 39,000 to
59,000 square feet over the next ten years. The 20,000 square foot 1st National Financial Plaza is
currently under construction, and will thus, satisfy a portion of this demand. Subtracting 1st
National Financial Plaza, an additional 19,000 to 39,000 square feet of office can be supported
Downtown through 2010.
Most office tenants Downtown will be smaller businesses (2 to 10 employees needing 200 to
2,000 square feet, on average) serving the local population and business base, such as attorneys,
accountants, insurance agents, etc. However, we believe that over the next decade, Elk River
will be able to compete with other northwestern Twin Cities suburbs for larger(up to 5,000
square feet) technology based firms. These high-tech firms, along with healthcare businesses,
should create more demand for lager spaces over the next decade.
Retail. Our calculations show that the Downtown can support up to 14,000 square feet of
additional retail through 2005. This is also about the maximum amount of additional space that
could be developed in the Core CDB, which is the portion of the Downtown Redevelopment
Area that is most suitable for additional retail. We believe that the Northern Area is more suited
for service industries than retail, because of limited access and visibility.
New retail stores will predominantly offer specialty goods and be able to market their unique
Downtown location as an experience that can't be found at shopping centers. Also,new housing
located Downtown will increase demand for neighborhood goods and services.
Findings and Recommended Redevelopment Strategies
Based on the market analysis, our assessment of the Downtown, and interviews with Downtown
business owners and managers, property owners, and others familiar with or with a stake in the
Downtown, we have identified redevelopment opportunities in each of the three Downtown
areas: The Core CDB, Western Transition Area, and Northern Area(shown in the map on Page
• x).
CONCLUSIONS AND RECOMMENDATIONS
• Core CBD
The Core CBD is the retail heart of the Downtown and is located directly on the Mississippi
River. The strengths of the Core CBD are its location adjacent to the River, its convenient
access and high visibility from Highway 10, and the existing inventory of turn-of-the-century
buildings.
While the Mississippi River and Highway 10 are strong assets, they also form a physical barrier
to expanding the Downtown. This presents a significant weakness because the Core CBD is very
small, making it difficult to create a critical mass of stores that would enable the Downtown to
become a major draw, such as Downtown Stillwater, Minnesota.
Combined with a lack of vacant parcels and the need to preserve most of the existing buildings,
the Core CBD has fewer opportunities for large-scale redevelopment than the other two
redevelopment areas. However, because of the existing character of the Core CBD and its
location on the River, it has the greatest opportunity for a high-end development that would
capitalize on these amenities.
Despite the lack of space, we believe that the demand for 14,000 square feet of retail space over
the next five years should be located in the Core CBD. Two areas that should be examined for
development and/or redevelopment are the City parking lot on the east side of Jackson Street and
the block along the south side of Main Street from the Highway 42 bridge up to and including
• the vacant building at 641 Main Street (including Nadeau's, US Bank, and the vacant building at
641 Main Street). A map on page x shows the location of these two sites.
These two sites present the best, and perhaps only, options for adding this space. While
developing space along the east side of Jackson would be easier,because there are no
acquisition, demolition, and/or relocation costs, the lost parking would have to be replaced,
which presents a challenge. One potential option is creating a two-level parking garage behind
the new stores on the existing Bank of Elk River parking lot.
Redeveloping the block along the south side of Main Street presents its challenges because of the
existing buildings. However, it also presents the greatest rewards. Being directly on the River is
an amenity that would entice potential higher-end retail stores and offices to the location, who
otherwise would not consider locating in Downtown. This site could support a mixed use
development, with retail on the first level and office or housing located above.
One of the Core CBD's greatest assets is the existing supply of older buildings, particularly the
"Brick Block" (the west side of Jackson Avenue). Any new development in the Core CDB
should be designed to fit-in and enhance the existing Downtown buildings character.
Additionally, the City may want to consider a program for Core CBD building owners to provide
low-interest loans/grants for façade and other building improvements. However, this program
should be a part of an overall program that would provide design guidelines for streetscape
improvements and a comprehensive vision for the visual appearance of the Downtown.
•
CONCLUSIONS AND RECOMMENDATIONS
• Retail in the Core CBD would be enhanced if a traffic generator were located Downtown.
Traffic generators in many towns include such uses as government agencies, such as city hall,
county administrative buildings, library, and post office. Downtown Elk River currently lacks all
but the Post Office. We recommend that the City find a way to retain the Post Office in the
Downtown,potentially by acquiring land to the north of the existing building. The proposed
river walkway and fishing pier would also help draw people to the Downtown who would
potentially patronize the businesses. Events, such as festivals and farmers market, should also be
explored. Events do not substitute for daily traffic generators,but are important because they
increase awareness to the Downtown.
We understand that there is interest for a performing arts center from some Elk River residents.
Such a center would be a great draw to the Downtown. However, because of the large amount of
space required to support the center and its parking, it may be infeasible to locate this type of
facility in the Downtown. The most likely location in the Downtown may be the Northern Area,
near Jackson Avenue and 6th Street. A library would also be a good draw. However, the existing
library at 4th Street and Proctor Avenue was expanded in 1995, and its space needs have been
met for the foreseeable future. Still, Downtown businesses could benefit from programs and
activities offered at the library, which is only a short distance from the Core CBD. In addition,
the impact of library programs and activities on the Downtown businesses would be maximized
if they were held in partnership or sponsored with the Downtown businesses.
Types of retail that would be appropriate for the Downtown are listed in Table 3, along with the
typical square footage for each type of store. Some of the uses, such as drugstore/pharmacy and
• hair salon are already located in the Downtown. The store types in Table 3 that are bolded are
those with the greatest potential for a downtown location(some of the retail types, such as drug
store and tanning salon, are good types to have Downtown,but because they are already existing,
the potential for addition such stores is limited).
A restaurant, particularly fine dining or a family restaurant, was mentioned repeatedly during
interviews as being needed in the Elk River area. We believe that an upscale restaurant (either a
"cloth napkin"restaurant or a family restaurant)would be a great traffic generator to the Core
CDB and would subsequently benefit other retail stores in the Core CDB.
Our demand calculation was for 14,000 additional square feet in the Downtown over the next
five year. This would probably accommodate fewer than 10 new stores. The example below
lists a potential mix of seven new tenants to the Core CDB. The seven stores, including a larger
restaurant, combine for 18,700 square feet.
Restaurant with liquor 6,000
Arts & Crafts 2,200
Hobby 2,500
Sporting Goods 3,000
Sandwich Shop 1,200
Books 2,100
Decorative accessories 1,700
1111 Total 18,700
CONCLUSIONS AND RECOMMENDATIONS
•
Although office or housing could be developed in conjunction with retail on a Core CDB
redevelopment site,we believe that the Core CDB should be oriented primarily to retail.
Because of poorer access and visibility, the Northern Area(north of the railroad) is not as well
suited for retail as the Core CDB, and should be focused more toward service businesses. We
believe that Redwing Shoes, the Bread of Life Christ Bookstore, and Elk River Floral would be
good retail tenants in the Core CDB.
Besides specific redevelopment projects in the Core CDB, the Downtown should capitalize on its
history and promote this as a connection to the community. Downtown should be promoted as a
community gathering location(i.e. special community events and functions). Gateways into the
Core CDB also need to be strengthened(i.e. stronger signage) to create a greater awareness
among Elk River residents (and Highway 10 traffic)that the Downtown exists.
TABLE 3
RETAIL USES BY TYPICAL SQUARE FOOTAGES
INDEPENDENT RETAILERS
April 2000
Typical Typical
Retail Uses: Sq.Ft. Retail Uses: Sq.Ft.
--71 .',7Plar tql1"
Beauty 1,250 Apparel: Family wear 5,000
Drugstore Pharmacy 8,450 * Art gallery 1,360
Floral 1,200 Arts&Crafts 2,190
Hardware 8,530 Computer/Software 1,230
Restaurant with liquor 3,000 Decorative accessories 1,670
Restaurant without liquor 2,500 Eyeglasses-optician 1,400
Sandwich Shop 1,240 Hobby 2,500
Travel agent 1,000 Home accessories 2,795
Unisex hair 1,300 Home improvement 1,200
Coffee/Tea 1,260 Photocopy/fast print 1,400
Donut/Muffin shop 1,125 Radio,Video, Stereo 2,080
Film Processing 1,000 Sporting Goods 3,090
Li uor/wine 2,440 * Books 2,080
Nail Salon 1,050 Dollar Store/Novelties 3,530
Deli/Specialty food 1,930 Telephone Store/Telecom 1,050
Tanning Salon 1,265
Sotes in bold indicate those most appropriate for the Downtown Redevelopment Area
*Median Gross Leaseable Area(GLA)for national chain
Sources: Urban Land Institute: Dollars and Cents of
Shopping Centers: 2000
Maxfield Research Inc.
•
CONCLUSIONS AND RECOMMENDATIONS
• Northern Area
The Northern Area has a diverse mix of land uses, including industrial,public, office, service,
retail, and housing. While this area also lacks vacant parcels, there are more marginal properties
that are potential candidates for redevelopment. We believe that the Northern Area, east of
Jackson Avenue, is better suited for redevelopment to office and services than to retail.
New housing in the Northern Area would not impact retail in the Core CBD as greatly as
housing in the Core CDB or Western Transition Area because Highway 10 and the railroad act as
a barrier(psychological, if not physical) to pedestrian traffic to and from the Core CBD. Persons
living in the Northern Area would more likely be oriented to the shopping centers along the west
side of Highway 169, however,they may often-times come Downtown.
We also do not believe that the Northern Area is suited for additional retail, since the area does
not have great access and visibility from Highway 10 and most potential retailers would likely
shy away from this area, in favor of better visible shopping space in the Core CDB or along
Highway 169.
Besides the focus on redeveloping this area with office space, institutional uses, and housing,we
believe that a high priority of the City should be retaining the existing Post Office on Irving
Avenue and 3rd Street. We believe that the three parcels to the north of the Post Office, currently
developed with older single-family homes, present themselves as expansion options to the Post
• Office.
We believe that most of the homes in the Northern Area are of marginal quality. Combined with
the fact that many are located adjacent to or in between commercial uses, makes them candidates
for redevelopment. Three sites that represent the best options for redevelopment to small offices
are 1)the north side of 4th Street between the existing office building on Jackson Avenue and
Irvine Avenue, 2) the south side of 4th Street between the existing office building on Jackson
Avenue and Irvine Avenue, and 3) the west side of Gates Avenue,between Main Street and 3rd
Avenue. These sites could provide office buildings with between 5,000 and 10,000 square feet,
or similar in size to the newer office buildings developed along Main Street between Downtown
and Highway 169. An advantage the Northern Area has over the Core CDB is easier access to
the commercial areas of Highway 169, since motorists do not have to cross Highway 10,which
can be difficult during peak traffic hours.
Other potential redevelopment parcels are those along the west side of Gates Avenue between 3rd
and 4th Streets. Besides offices, these parcels (containing five single-family homes) could be
redeveloped with housing. General-occupancy rental and senior housing would be the most
appropriate types for the site. Multifamily ownership housing typically requires a higher-
amenity site.
The Northern Area west of Jackson Avenue presents greater redevelopment challenges because
of the existing industrial uses. Since most non-industrial uses prefer not to be located adjacent to
industrial properties, much of the entire area would need to be redeveloped at once if the area
• were to be redeveloped with other uses. While industrial uses are not ideally located adjacent to
CONCLUSIONS AND RECOMMENDATIONS
• the Downtown, the benefits of redeveloping this area would likely not justify the high costs of
acquisition, relocation, demolition, and potential land clean-up costs. We believe that
redevelopment of this area is a long-term planning project that should be a lower priority than the
remaining Downtown Area,but still a consideration for the future.
Much of the future of the Northern Area west of Jackson Avenue depends on the long-term
commitment of Elk River Machine, which occupies over seven acres and dominates the area. If
Elk River Machine's long-term plans are to remain on the site, then the most appropriate uses of
the surrounding parcels are light industrial. Light industrial uses can be a benefit to the
Downtown because of the employee base that the existing businesses would bring to the
Downtown area. If the area remains industrial, certain parcels would be considered for
redevelopment; either because they are under utilized or out-of-place.
The Eagles Club and the building between the Eagles Club and Arrow Lumber(former NAPA
building) combined are a potential redevelopment site for light industry. Also, the County
Highway building is a use that does not greatly benefit from its location near Downtown nor
does it greatly benefit the surrounding businesses.
Western Transition Area
The Western Transition Area is a mix of single-family housing(to the west) and offices and
limited retail (to the east). In addition, many of the single-family homes along Main Street have
been converted to office uses. We believe that this area has a high potential for redevelopment to
• multifamily housing and some additional offices.
Unlike the Northern Area, the Western Transition Area has easy pedestrian access to the Core
CBD. Thus, residents of new housing would more likely frequent the Downtown businesses.
While employees of offices in this area also would have easy pedestrian access to the Core CBD,
we believe that offices would be better located in the Northern Area because of its current
business mix and easier access to both the Core CBD and Highway 169 businesses. Thus, we
believe that the focus of the Western Transition Area should be multifamily housing.
A portion of the Western Transition Area has River frontage, which is a highly desirable amenity
to potential residents of multifamily housing. The parcels that present the greatest opportunity to
increase housing-density are those along Lookout place (five single-family homes on the north)
and Angel Street (two single-family homes to the west, the 24-unit Riverview apartment and
three single-family homes to the east). While redevelopment would require the removal of 34
housing units, a total of 5.2 acres would become available for new housing construction. At a
density of 25 units per acre, 130 additional housing units could be added.
Morton Street, south of Main Street, is lined on both sides with single-family homes that are in
good condition. We would not recommend redeveloping the east side of Morton Street with
new multifamily housing because of the impact it would have on the single-family homes on the
west side of the Street (outside of the Redevelopment Area).
•
CONCLUSIONS AND RECOMMENDATIONS
• Except for the Cretex office building and the Hitching Post condominium, Main Street between
Morton and Lowell Avenues is lined with single-family homes. Many have been converted to
office uses. These home offices provide a nice transition from the single-family neighborhood to
the west and the Core CBD, thus we recommend maintaining these homes. In addition, the
Northern Area provides a better location for offices and should receive first priority for
redevelopment.
Downtown Primary Redevelopment Sites
The map on the following page shows the location of the sites we identified above as having the
greatest potential for redevelopment within the Downtown Redevelopment Area. While these
sites do not represent the only potential sites for redevelopment, they are the sites we have
identified that would have the greatest positive impact on the Downtown. As such,redeveloping
these properties should receive first priority.
Besides the primary redevelopment sites, three other properties have land use and/or appearance
issues that should be addressed in the long-term, as opportunities present themselves. These
three properties are located between Highway 10 and the railroad. They are Boelter's Towing,
Martin Plaza, and Hunt's Feed and Garden Center. Most people interviewed expressed a wish to
preserve Hunt's Feed and Garden Center because of its history in Elk River. Martin Plaza and
Boelter's Towing, however, somewhat detract from the positive visual image of the Downtown.
Because they are sandwiched on narrow lots between Highway 10 and the railroad,
• redevelopment potential with other land uses is limited. We suggest that if the opportunity
presents itself in the future, these businesses should be relocated and their present sites razed and
landscaped.
i
CONCLUSIONS AND RECOMMENDATIONS
• Redevelopment Strategies
The following are strategies important to any redevelopment efforts undertaken in Downtown
Elk River. These strategies are key, in fact, to Downtowns everywhere.
• Create a sense of place. If any one criteria supports redevelopment efforts, it is this one.
People will enthusiastically support an environment that attracts them. Many of the "places"
that people mention over and over again as desirable all possess several important attributes:
intimacy of scale, diversity of uses, attractive street environment, interesting architecture,
individuality(strong visual merchandising and display).
• Create new neighborhoods. Housing will support and enhance the retail and commercial
base within the Downtown. Efforts to create housing will have the strongest impact on
sustaining Downtown's viability over the long-term.
• Implement a coordinating entity. It is important to have a Downtown Advisory Committee
or Board who oversees the revitalization process. It is not a substitute for municipal planning
or economic development efforts,but should be responsible for holding the community to the
overall vision.
• Use an incremental versus catalytic approach. A Downtown plan that embraces an
incremental strategy will prove most effective. An incremental strategy puts forth a number
of action plans, meant to be achieved over a period of time, to accomplish a number of goals,
rather than relying on a single catalytic event or project to revitalize the Downtown. An
incremental strategy will take longer, but the payoff will be greater. However, a key first
project can be an important component in an incremental approach to create initial
momentum that will then generate additional investment in the Downtown over the long-
term.
Marketing Strategies
Introduction
In order for Downtown Elk River to present itself as a strong and active economic entity, there
are several elements that must coalesce to create a more dynamic environment that will
eventually result in an overall strengthening of Downtown for individual businesses and for the
community. In terms of a marketing program to strengthen downtown, three elements have been
identified as important. They are: organization, image and people.
Today, the consumer typically has a number of other shopping options, Downtown is only one
choice among others. People do not come to Downtown to shop automatically as they used to
do. Downtown is not longer the only choice and Downtown retailers often find they must make
• a greater effort to attract and court the consumer. However,Downtown retailers can compete
CONCLUSIONS AND RECOMMENDATIONS
• with the general merchandise retailer and the shopping centers by focusing on the three elements
listed above, organization, image and people.
Organization
One of the key components of the success of shopping centers is organization. Downtown Elk
River can never be and should not try to be a shopping center. Nevertheless, Downtown can
learn a great deal about modern retailing methods and shopper behavior from this merchandising
phenomenon.
Essential among a shopping center's features is unified management and the resulting high level
of organization and integration of its retailing operations. In the shopping center, each tenant's
lease contains binding agreements requiring the merchants to follow explicit design standards in
the finish of interior space and signage, to conform to the established hours of operation for the
center(including extended weekday and weekend hours), to participate in the center's joint
advertising campaigns and major promotions, to join and pay dues to the shopping center's
merchants association and to pay for regular maintenance.
Imposed regulations such as these go against the grain of the traditionally independent
downtown merchant. But downtown merchants can improve their ability to compete with newer
shopping alternatives by emulating the highly integrated organizational style of the shopping
center. This is a formidable task for the downtown because it must be accomplished on a
voluntary basis,but the incentives are substantial. Pooling resources for better and more widely
distributed advertising is a necessary element in revitalizing the downtown economy.
•
Volume of parking is not necessarily a shopping center's greatest asset. Recent studies indicate
that shopping centers have largely over-built for their parking needs and how well a shopping
center operates internally is more a measure of its success.
Image
Image refers to the driving aim of modern product marketing: product recognition. Hundreds of
millions of dollars annually are pumped in to the daily barrage of advertising that attempts to
implant the identity of various products in the consumer's mind.
The marketing of the a downtown can take the same approach in a lower key and capitalize on a
host of built-in advantages. Every downtown is different, and each one's distinctive package is
its older commercial structures and their environment.
Individual business operations must also establish their own identities to draw the customers into
their place of business once they have been drawn downtown. For Elk River, the challenge is to
get them to go Downtown.
People
People and the way they react to the downtown as customers are one of the few constants in a
• downtown. Business people in Downtown Elk River need to be constantly aware that all of their
CONCLUSIONS AND RECOMMENDATIONS
• visible actions are messages to this attentive customer, from building maintenance (or lack of it)
to window displays to customer service. Every action is a gesture to the consumer. Inactivity or
inattentiveness is interpreted as neglect and will be reciprocated by consumers. Downtown
revitalization depends in large measure on each merchant's taking every opportunity to make
positive symbolic gestures to the consuming public.
Recommendations for Downtown Marketing Program
Recognizing that the three elements listed above are key, the following recommendations reflect
areas within those elements on which to focus.
Create an active downtown business association
Downtown is not just retailers. As shown on Table 2, downtown includes a variety of
businesses. An active downtown business association should include representatives from all
types of businesses, not just retail merchants. A retail subcommittee could be formed as well to
assist with retailers special concerns regarding merchandising, special advertising and
promotions.
The business association should be involved in all of the activities organized for the Downtown.
Professional-service businesses should also realize that they, too, have a stake in attracting
customers to the Downtown.
The Downtown business association can set the tone for the focus of the Downtown to enhance
the environment for all businesses.
Develop An Image or Focus for Downtown
Downtown must be implanted in the consumer's mind as a shopping place, much like a
traditional shopping center. What is fundamentally unique about Downtown is its distinctive
character(location,buildings) and its history.
Downtown must capitalize on its capacity to offer consumers a different shopping environment
which is much more interesting than the traditional shopping center or general merchandise
chain. Downtown can provide for their buying needs in an interesting environment and can offer
them customer service and value. In fact, value is created not only on the basis of price. Value
is created in many ways and many retailers have proven that price is not the only issue.
An awareness of Downtown as a cohesive shopping district and what Downtown has to offer
must be created in consumers' minds. An ongoing advertising campaign that consistently
promotes downtown as a center for shopping will eventually take hold. Promoting downtown
businesses through advertising that identifies what businesses are located in Downtown will also
assist individual merchants and businesses in enhancing customer awareness of their operation.
Promoting Downtown to non-locals through advertising at the local hotels will also serve to
• attract tourists and travelers to businesses Downtown for shopping.
CONCLUSIONS AND RECOMMENDATIONS
• Establish Downtown as the Community's Center of Activity
Benefits can be derived to Downtown businesses from focusing community activities in the
Downtown area. Holding events in the Downtown as a way of increasing business activity and
enhancing Downtown's image as the center of community life.
Creating a plaza between the Cinema Professional Plaza and Dicks Main Tap, along with a
fishing pier and river walk, would provide an excellent location to hold events and other
festivals. The plaza, fishing pier, and river walk would also help tie the Downtown businesses to
the Mississippi River, which is one of the Downtowns greatest assets, but is currently largely
under utilized.
Promotions must be well-organized. It is better to hold a few,well-planned promotions for the
downtown, than many promotions that do not have the potential for a significant impact.
In between major promotions, downtown can have smaller ongoing advertising and individual
store promotions to maintain a high level of customer awareness.
Make Downtown An Attractive Place to Do Business
During the interviews with Downtown businesses, several interviewees suggested there is a lack
of building maintenance. The physical appearance of buildings, along with Downtown's public
spaces and streetscape, are important to attract customers to the Downtown. In a shopping
center, common area spaces must be well-maintained. The same is true of the streetscape in the
Downtown. It serves as an enhancement of the individual store environment and its
attractiveness or unattractiveness can serve to attract or detract customers from coming to
Downtown.
The same is true of building exteriors. Building exteriors must present an attractive image to
customers. Maintenance of buildings and upgrading of exteriors must be an ongoing practice. In
many downtowns however, the economic vitality has suffered with the result that occupancy
may have dropped, revenues are sluggish and building owners may be obtaining rents that will
not justify substantial reinvestment in physical structures.
One effort of a downtown revitalization plan can be to provide incentives for downtown building
owners to maintain, renovate and/or upgrade their buildings. Low-interest loans, grants and
other programs can provide small owners with the ability to reinvest in their buildings to enhance
the visual attractiveness of the shopping/business environment.
These recommendations represent only a few of the many activities that are involved in an
ongoing downtown marketing program. However, these activities can be the foundation on
which to build to improve the economic vitality of the Downtown core.
•
•
Primary Redevelopment Sites
Elk River Downtown Redevelopment Area
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MEMORANDUM
TO: Economic Development Authority
FROM: Marc Nevinski, Assistant Director of Economic Development
DATE: May 8, 2001
SUBJECT: Planning Commission Workshop
The EDA is invited to attend a special meeting and workshop with the Planning
Commission on Tuesday May 8, 2001 at 6:30 PM at Elk River City Hall. The
following matters will be considered:
• Downtown Market Analysis -Maxfield Research will present the findings of its
completed downtown market analysis and staff will present the results of its
downtown building inventory. Discussion will follow.
• Business Park Ordinance Changes -The Planning Commission will consider
the impact of recent changes to the Business Park ordinance. Rick Martens of
Brookstone Development will provide a video presentation demonstrating
applications of various building materials. Discussion will follow.
• Public Hearing- Townhome Development Moratorium
s:\eda\agenda\plan comm woksp.doc
•