EDSR INFORMATION 10-08-2001 MANAGING GROWTH ‘k.
as featured in
INNESOTA
BUSINESS,
Leadership, Opportunity, Growth
Diamonds in the Rough
How to maximize real estate redevelopment opportunities
BY BILL GRIFFITH
ost business people assume that it is easier to develop in a cornfield
on the edge of town than it is in a "brownfield" in the center of
town. In many cases, that is true. However, given the focus of local
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government on turning around underutilized or polluted sites, corporate prop-
erty managers and other business people may want to look to redevelopment as
an alternative.The best redevelopment sites are parcels that have good visibility,
access, and proximity to population density.
Where to Start?
o begin your search, talk to local offs- community, they can provide good leads, require removal of significant con-
1 cials in charge of redevelopment. The even for properties not listed for sale. straints,such as blighted build-
head of the local economic development However, brokers will usually direct you to ings, pollution, or access
agency (EDA) or housing and redevelop- sites that result in a commission;that's how problems. Most redevel-
ment authority (HRA) in a target commu- they make their living. As an alternative, opment projects take
nity may be most useful. It is their job to you may want to work with a real estate more than a year
support development and redevelopment of advisor,or real estate attorney,on an hourly to bring to
the urban core and aging suburbs. They " or fixed-fee basis. In this case, the profes- groundbreak-
have good networks of contacts for finding sional is working exclusively for the client. ing. By compari
Lsites. Often, EDA and HRA staff will pro- son, a typical devel-
vide technical expertise or public financing Assess the Potential opment project on
• to help move sites with significant develop- jt is typical for business leaders to shy vacant, zoned land, with
ent constraints. away from the risks associated with devel- good access,will take only six
Local real estate brokers can be another opment or redevelopment projects. This is months to secure approval to
Isource for identifying good redevelopment not without justification. Often the best begin construction.
sites. If they are "plugged in" to the target sites in the fully developed urban area will On the other hand, working with
1 Reprinted with permission of the publisher.(952)844-0400
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local officials on a redevelopment project concept is like rezon- � issues. Revise devel- 5
may actually open the door to expedited ing because it involves a 7 opment plans without 4.
governmental approvals, public financing, discretionary decision of giving away the deal. For 010
land assembly, and a host of other tools to the local government. It is instance, if planning staff 2.
attract redevelopment. designed to provide flexibility for wants increased landscaping and
Another opportunity that a redevelop- large-scale projects.For instance,if a reduced signage, and signage is criti-
ment site provides is good proximity to commercial corner has been slow to cal to success, increase landscaping. of
existing support services,workforce, public redevelop, the city may consider a PUD Meet with decision makers early to
services,and infrastructure.The most likely designation to reduce parking require- gauge support. Learn their policy hot but- N
redevelopment opportunities include:older ments and increase development density to tons. For instance, opponents like to raise
shopping center sites, industrial sites, and encourage developers to acquire the site. issues such as traffic, noise, glare, property
excess public facilities, such as trucking By doing this,the site turns over to a high- values, and demand for services as reasons
facilities, transfer stations, school sites, and er and better use and increases local tax to deny the project.If these are hot buttons
maintenance facilities. base. Usually the trade off is higher devel- for decision makers,tell them how you will
opment, more landscaping, more ameni- solve their problems.
Prepare for the Review Process ties, and the like.
In most cases, business leaders favor sites Assemble the Right Team
that are already zoned and subdivided for Conduct Land-Use Reconnaissance nutting together a qualified team is essen-
their corporate or business use. This is a ost business leaders are on a tight 1 tial to any development or redevelop-
good way to efficiently deploy develop- 1 V timetable to produce sales, or other ment project.This team will usually include
ment efforts and reduce the time to open a concrete results. It may seem counterpro- an architect, engineer, landscape planner,
new site. However, once the easy sites are ductive to recommend that you take time to and development attorney. More involved
"cherry-picked," the tendency is to turn it study local land-use plans, but this will projects may require the expertise of a traffic
over to someone else to find a good site,or improve your chance of success. Always engineer,wetland engineer,fiscal consultant,
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Know your legal position as leverage or as a
backstop to a difficult or contentious staff member.
head to the next location on the target review the city record.Ask for copies of the and frequently a graphic artist to prepare
map. You should consider "rezoning" and comprehensive plan, land use map, zoning drawings and renderings of the project.
"planned unit development"alternatives to ordinance, environmental controls, as well Business leaders who understand rede-
obtain an advantage over competitors in as the prior history of the site and even the velopment opportunities and the rigors of
terms of location. prior history of related sites. land development practice can add value
Rezoning typically involves a discre- Take a planning approach to land to existing real estate assets and locate
tionary decision by local officials to change development. Most regulators do not new sites for business expansion.The key
the classification of land from one zone to want to be threatened with a lawsuit. (On to success in this arena is patience, the
another. In other cases, rezoning may take the other hand, it is important to know i right team of experts, and the good judg-
the form of a text amendment to clarify that your legal position as leverage or as a back- ment to know when to go the distance for
a certain commercial,retail,or service use is stop to a difficult or contentious staff a prized site.
allowed in a zoning district. member.) You want to know as much as
Commercial or residential neighbors are the other guy. Review the sources of
the likely opponents to any rezoning effort. authority for development. These include Bill Griffith (wgrfliith@lhd/.com) is a share-
Sometimes, opposition can be satisfied the comprehensive plan,zoning map,zon- holder with Larkin, Hofman, Daly &
by creating performance standards writ- ing controls, subdivision regulations, Lindgren, Ltd. He practices in the areas of
ten into the zoning text. If the communi- environmental quality regulations, storm real estate, land use, environmental review, o
ty is concerned about noise, traffic, light- water regulations, wetland regulations, municipal law, and administrative law. o
ing, or trash handling, performance stan- and parking requirements.
dards can address these concerns and keep Meet early with planning, engineering,
the developer in a good site. and building staff. Keep notes of meetings,
The planned unit development (PUD) document resolution of key development
Reprinted with permission of the publisher.(952)844-0400 2
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COMMERCIAL Page 1 of 1
COMMERCIAL & INDUSTRIAL SITES
S Elk River, Minnesota
Last Update:June 8,2001
Owner Location Acreage Zoning Price Utilities Contact Company Phone
Elk Path Business West Bus. Chris United
Center Park 80 42 $1.50/sf Yes Hickok Properties 952.893.8845
Elk Path Business West Bus. 10 C3 $7/sf Yes Mike Simms United
Center Park Properties 952.893.8288
West Bus. Richard
Gagne Park 17 0 $1.50/sf Yes Deziel n/a 763.559.4409
East Bus. Build to Tom Griffin
Brookstone Park 1 25 L BP Suite Yes Schock Companies 612.904.7828
East Bus. Cathy City of Elk
City of EllsRiver parkl%j BP N/A Yes 763.441.4905
Mehelich River
East Bus. John Gonya Land
Mulvany_PoinBP
t 20 ) $4-6/sf Yes 952.882.1112
Park Stanbrook Company
Ceat-Bns. 20 • I l-
=NMI MM.WPM.
�ark�
Christian
Lenz Jarvis St 40 11 N/A No Bill Christian Builers/ 763.428.8323
Century 21
CapHillside North 169 3 PUD N/A Yes Dick Ward Companies 612.828.9060
JAG
Houlton Jackson St 1.57 C2 $3.50/sf Yes Jeff Gongoll Enterprises 763.441.1348
III Houlton Jackson St 6.36 C2 $2.50/sf Yes Jeff Gongoll JAG
Enterprises 763.441.1348
K&L 171st Ave 10 C3 N/A Yes Floyd Kruse MN Northland
RealE763.271.3025
state
SE-Hwy 169 $8.50- Russ
Elk RiverCrossing &Main St 5.5 PUD 12/sf Yes McGinty Grubb&Ellis 952.908.1231
SW-Hwy John Gonya Land
Hohlen/Johnson 169& 11 C3 $4-6 Yes952.882.1112
St Stainbrook Company
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All Rights Reserved
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http://www.ci.elk-river.mn.us/development/Econ%20Dev.../RealEstate%20-%20%20Land.ht 10/8/01