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item 5 • Item # 5 City of Elk4....., River MEMORANDUM TO: Planning Commission FROM: Michele McPherso' 'Director of Planning DATE: April 9, 2002 SUBJECT: Case No. OA 02-01 Request by the City of Elk River for an Amendment to the Zoning Code to allow therapeutic massage as a permitted accessory use in certain districts and to amend the definition of "personal service establishment". 411 Request Consider a request by the City of Elk River to amend the zoning ordinance to allow therapeutic massage as an accessory use and to amend the definition of personal service establishment to specifically include therapeutic massage.This request would include adding therapeutic massage as an accessory use in the Business Park district as professional offices, including medical offices, are a permitted use in the Business Park district. Attachments • Changes to the Zoning Ordinance • Chapter 704 Regulating Massage and Sauna Establishments Overview Existing Ordinance Therapeutic massage is currently allowed as a conditional use in the following districts: Cl (Central Business), C2 (Office District), C3 (Highway Commercial) and as a conditional home occupation in all residential districts. A yearly license is also required(Chapter 704). Analysis IIIBecause medical clinics, chiropractic clinics and personal service establishments often include therapeutic massage as a form of treatment or as an accessory service, these Memo to the Planning Commission/OA 02-0I April 9,2002 Page 2 IIIbusinesses, which are usually a permitted use, have to go through the conditional use process. Conditional uses are those that might result in adverse impacts and the conditional use permit process provides a means by which the City can address those adverse impacts. Since there are not any adverse impacts associated with therapeutic massage as an accessory use, it appears that it could be allowed as a permitted accessory use. The business or person providing the service would still have to apply for a yearly license. Any concerns that the Council may have could be addressed at that time. Staff has also considered allowing therapeutic massage as a stand-alone use. A massage therapy business would have the same type of impacts as a personal service establishment. Personal service establishments include beauty parlors,tanning salons and any place where, for a fee,personal services are provided to individuals on the premise.Because therapeutic massage fits the definition of a personal service establishment,it should be treated as such. A therapeutic massage business would still be required to apply for a yearly license from the City Council under Chapter 704 of the City Code. At the February 26,2002 meeting,the Commission expressed certain reservations regarding allowing therapeutic massage as a stand-alone establishment. Staff has revised the definition of personal service establishment to acknowledge the certification and license requirements in the ordinance. A copy of Chapter 704 is included to illustrate the requirements of the profession. illThe City has a sexually oriented business ordinance that addresses any"seedy"operations. Recommendation Staff recommends that therapeutic massage be allowed as an accessory use to the following: • medical clinics • chiropractic clinics • personal service establishments Therapeutic massage would still require a conditional use permit if a person wanted to do it as a home occupation. Staff also recommends that the definition of"personal service establishment"be amended to specifically include therapeutic massage. III • 900.08 - DEFINITIONS PERSONAL SERVICE ESTABLISHMENTS: A place where, for a fee, personal services are provided to individuals on the premises. Such uses traditionally include beauty parlors, and tanning salons, and othcr personal services . Therapeutic massage establishments when operated by a certified, licensed (by the City) massage therapist shall be considered a personal service establishment. 900. 12 PERMITTED, ACCESSORY, AND CONDITIONAL USES BY DISTRICT 11 . C-1 - Central Business District C. Conditional Uses i . Nonprofit clubs, lodges or halls ii. Licensed daycare facilities iii . Institutional uses iv. Motor vehicle service stations v. Commercial parking lots and ramps ivi. Multiple family dwellings provided: a. that business/commercial uses occupy the ground floor below the residential use vii . On-Sale liquor establishments viii.Commercial recreational facilities ix. Convenience store x. Funeral parlor xi . Restaurants, (Class II) xii. Governmental buildings and facilities xiii.Apartments subordinate to the principal use xiv. Produce Markets xv. Therapeutic massage and sauna establishments 12 . C-2 - Office District C. Conditional Uses Massage Therapy Ordinance Language April 9,2002 Page 2 • i. Licensed daycare facilities ii . Institutional uses iii. Single Family Dwellings iv. Financial institutions v. Funeral parlor vi. Boarding house vii . Governmental buildings and facilities viii. Thcrapcutic massagc and sauna establishments 13. C-3 - Highway Commercial District C. Conditional Uses i . Enclosed light manufacturing with related retail sales ii. Car, RV and marine sales • iii. Nonprofit clubs, lodges, or halls iv. Licensed daycare facilities v. Institutional uses vi . Equipment rental businesses vii. Commercial recreational facilities viii.Auto repair shops ix. Shopping centers x. On-sale liquor establishments xi. Governmental buildings and facilities xii. Veterinary clinics xiii. Car Washes xiv. Restaurants (Class II) 411 xv. Motor vehicle service stations Massage Therapy Ordinance Language April 9,2002 Page 3 xvi . Motor vehicle specialty shops xvii.Thcrapcutic massagc and sauna establishments xviii.Lumber Yard xix. Pawnshops (250 foot setback from any residential zone and 500 foot setback from schools, parks, daycare centers, churches and other pawnshops, measured from the property line) xx. Hotels and motels xxi. Restaurants (Class I) xxii. Development of property within fifth (50) feet of the Wild and Scenic River District xxiii. Mini-storage, provided: a. That the use is on unplatted land outside the urban service district 17 . B-P Business Park District B. Accessory Uses: i . Off-street parking lots or facilities ii. Private recreational facilities iii . Public shelters and essential services iv. Retail Sales provided the following conditions are met: a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principle use of which is not commercial sales. b. The retail sales activity shall not occupy more than fifteen (15%) of the gross floor area, or a maximum of 5, 000 square feet of the occupied quarters, whichever is less . c. The retail sales activity is related and subordinate to the principle use. Massage Therapy Ordinance Language April 9,2002 Page 4 • d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. v. Therapeutic massage when offered within the confines of a medical or chiropractic clinic. • • • SECTION 704 - MASSAGE AND SAUNA ESTABLISHMENTS 704 . 00 - STATEMENT OF PURPOSE The purpose of this Section is to prohibit massage businesses and services to the public except those licensed as Therapeutic Massage Establishments and Massage Therapists pursuant to this Section. The licensing regulations prescribed herein are necessary in order to prevent criminal activity and to protect the health and welfare of the community. The purpose of this Section is not intended to impose restrictions or limitations on the freedom of protected speech or expression. 704 . 02 - DEFINITIONS As used in this Section, the following words and terms shall have the meanings stated. MASSAGE THERAPIST: A person who practices or performs Therapeutic Massage on a person for compensation and meets the licensing requirements set forth in subsection 704.20 of this section. 410 SAUNA: The terms "sauna, " "steam bath, " or "heat-bathing room" mean a room used for the purpose of bathing, reducing, or relaxing, utilizing steam or hot air as a cleaning, reducing, or relaxing agent. For purposes of this ordinance, the term "sauna" does not apply to a sauna or steam room located within a hotel, motel, health club, or athletic facility. THERAPEUTIC MASSAGE: The practice of rubbing, stroking, kneading, tamping, or rolling of the body with the hands or any instrument, for the exclusive purpose of tension, stress, and pain relief, relaxation, increased range of motion, muscle tone improvement, physical fitness, or beautification and for no other purpose, by a person not licensed as a medical doctor, chiropractor, osteopath, podiatrist, nurse, or physical therapist, or an assistant who works solely under the direction of any of the above-described professionals, or beautician and barber who confine their treatments to the scalp, face, and neck. THERAPEUTIC MASSAGE ESTABLISHMENT: An establishment in the business of providing Therapeutic Massage services either to the public or as a private club. 704 . 04 - BUSINESS LICENSE REQUIRED FOR ESTABLISHMENT • It shall be unlawful in the City of Elk River for any person to directly or indirectly, upon any pretense or by any device, 7.13 engage in the business of keeping, conducting, or operating any • massage establishment, sauna, steam bath, or heat-bathing room, which is open to the public or for which any charge or fee is made or any money or thing of value is solicited or received except a Therapeutic Massage Establishment or Sauna as defined in this Section and then only after first obtaining a duly issued license therefor from the City. A person who operates an enterprise described in this Section without a valid license issued by the City shall be guilty of a misdemeanor offense. 1. Initial License Application. All initial applications shall be accompanied by a non-returnable investigation fee in the amount set forth in the Fee Schedule on file with the City Clerk. Each application shall contain: A. The names, addresses, and dates of birth of the owners, lessees, operators, and Massage Therapists of the proposed Therapeutic Massage Establishment or Sauna; B. A description and location of the premises; C. Information as to conviction of any crime or offense committed by anyone listed on the application; '• D. All applications by corporations shall include the names, addresses, and dates of birth of all persons having a beneficial interest therein; E. A description of services to be provided; F. Such other information as the Council may require. Prior to consideration of the application by the Council, an investigation shall be made by the Building Official to determine compliance with this Section, of all premises proposed to be licensed and by the Police Department of all persons listed on the license application. 2 . Renewals . Each license shall expire on December 31 of that year. Licenses must be renewed annually. The renewal application shall be accompanied by an annual fee as set forth in the Fee Schedule. For a renewal, the applicant must provide full information as required for initial licenses for any new owners, lessees, operators, or Massage Therapists proposed to be involved in the massage center or sauna, and also provide any changes in the name, address, criminal record, or other relevant information • of any other owner, lessee, operator, or Massage Therapist . The Building Official and/or the Police Department may conduct an investigation prior to any renewal . 7.14 • 704 . 06 - EXCEPTIONS TO BUSINESS LICENSE REQUIREMENTS This Section shall not apply to the following establishments or people : 1 . A health care facility licensed by the State of Minnesota. 2 . A health care facility owned in whole or in part by the State of Minnesota or any of its agencies. 3 . A medical clinic or hospital, so long as the massage is performed by a state licensed physician, chiropractor, osteopath, podiatrist, nurse, physical therapist, or an assistant working under the direction of any of the above-described professionals . 4 . A physical therapy clinic or athletic facility, so long as the massage is performed by a state licensed physical therapist, athletic director, coach, or trainer. 5 . A beauty parlor or barbershop, so long as the massage is performed by a state licensed beautician or barber, and treatment is limited to the scalp, face, and neck. 704. 08 - RESTRICTIONS AND REGULATIONS A license may be revoked, suspended, or not renewed by the City upon a showing that the licensee, its owners, managers, employees, agents, or any Massage Therapist practicing Therapeutic Massage on the licensed premises have violated any of the following restrictions and regulations : 1. Licenses may be granted only for operation upon fixed premises which have been approved for the proposed use under the zoning laws of the City. 2 . The applicant is not delinquent in the payment to the City or other jurisdiction of taxes, fees, fines, or charges duly assessed thereto. 3 . Licenses shall be granted only upon a showing of compliance with all laws of sanitation. 4 . No beer, liquor, narcotic drug, or controlled substances, as such terms are defined by State Statutes or by the City Code, shall be permitted on licensed premises . • 5. Only Massage Therapists as defined in the Section and licensed by the City may perform massage. Any person acting as a Massage Therapist in a Therapeutic Massage Establishment or sauna 7.15 shall display his or her license in a prominent place in the • Therapeutic Therapeutic Massage Establishment or sauna. 6 . A license shall not be granted or renewed if granting the license (1) would be inconsistent with the comprehensive development plans of the City, or (2) would otherwise have a detrimental effect upon the property or properties in the vicinity. 7 . Violation of any law or regulation relating to health, building, building maintenance, safety, or other provision of the City Code or State law shall be grounds for denial or revocation of a license. 8 . The application must not contain any false, fraudulent, or deceptive statements. 9 . No applicant or any employee or proposed employee, including Massage Therapists practicing Therapeutic Massage on the licensed premises, shall have been convicted or pled guilty within the previous three (3) years of a violation of this Section, or of any law prohibiting prostitution, pandering, keeping a disorderly house, criminal sexual conduct, any sex crime under Minn. State. • Chapter 609, or a crime involving moral turpitude. 10 . The applicant has not, within one (1) year prior to the date of application, been denied licensure or had its license revoked. 11. No Therapeutic Massage Establishment or sauna may discriminate between persons on the basis of race, color, creed, sex, or national origin or ancestry. 12 . All Therapeutic Massage Establishments and sauna licensees shall comply with any and all amendments to this Section. Failure to do so shall be grounds for revocation of a license. 13 . The licensee shall permit and allow the inspection of the premises during business hours by the Building Official, police officers, and health officers, without a warrant for searches and seizures. 14 . Upon request by any police officer, any person employed in any licensed premises shall provide identification including his or her true legal name, correct address, and date of birth. 15 . No person while afflicted with any disease in a communicable • form or while a carrier of such disease or while afflicted with boils, infected wounds, sores, or any acute respiratory infection, may work as, or use the services of, a Massage 7.16 • Therapist . No persons known or suspected of being afflicted with any such disease or condition shall be employed or permitted in a Therapeutic Massage Establishment. 704 .10 - RESIDENT MANAGER OR AGENT Before a license is issued under this Section the applicant shall designate in writing a natural person who is to be manager and in responsible charge of the business and upon whom service of process may be made. Such a person shall remain responsible for the conduct of the business until another suitable person has been designated in writing by the licensee. The licensee shall promptly notify the Police Department in writing of any change indicating the name, address, and date of birth of the new manager and the effective date of such change. 704 .12 - SUBMISSION OF PLANS AND SPECIFICATIONS All persons who hereafter construct, extensively remodel, or convert buildings or facilities for use as Therapeutic Massage Establishments or saunas, which are open to the public, shallcomply with the requirements of the State Building Code and • all amended codes. To the extent the Building Code or Fire Code do not impose stricter requirements, the provisions of this section shall govern. 704. 14 - CONSTRUCTION AND MAINTENANCE REQUIREMENTS 1. Floors, walls, and equipment in sauna rooms, massage rooms, restrooms, bathrooms, janitor's closet, hallways, and reception area used in connection therewith must be kept in a state of good repair and clean at all times . Linens and other materials shall be stored at least 12 inches off the floor. Clean towels and wash cloths must be made available for each customer. 2 . If massage is performed in individual rooms, the doors to the individual massage rooms shall not be equipped with any locking device and shall not be blocked or obstructed from either side. 704.16 - INSURANCE REQUIRED Each applicant for a license under this Section shall file with the City a public liability insurance policy or certificate of insurance from a company authorized to do business in Minnesota, insuring the applicant against any and all loss arising out of 410 the use, operation, or maintenance of the Therapeutic Massage Establishment . The policy of insurance shall be in limits of not 7.17 less than $500, 000 . Failure to keep in full force and effect the • insurance required herein is grounds for revocation. 704 .18 - UNLAWFUL ACTS It is unlawful for any person to commit, attempt to commit, conspire to commit, or aid or abet in the commission of, any act constituting a violation of this Section, whether individually or in connection with one or more persons or as a principal, agent or accessory. 1. It is unlawful for any licensee to fail to, at all times, observe all restrictions, regulations and maintenance requirements contained in this Section. 2 . It is unlawful for any person to falsely, fraudulently, forcibly or willfully induce, cause, coerce, require, permit or direct another to violate any of the provisions of this Section. 3 . It is unlawful for any licensee to allow the licensed premises to be open for business or allow patrons to be on the premises between the hours of 11:00 p.m. and 6 :00 a.m. of the same day. • 4 . It is unlawful for any licensee, agent, or employee of a licensee to hinder or prevent a police, building, or health officer from making any inspection at any time. 704 .20 - INDIVIDUAL MASSAGE THERAPIST LICENSE It shall be unlawful for any person to practice any form of massage other than a Therapeutic Massage as defined in this Section and then only after first obtaining a duly issued license therefor from the City. 1. Licensing Requirements . A. License Application. All applications for a license to practice Therapeutic Massage shall contain such information as the Council may, from time to time, require. All applicants shall be at least eighteen (18) years of age. B. Renewals . Each license shall expire on December 31 of that year. Licenses must be renewed annually. The renewal application shall be accompanied by an annual fee as set forth in the Fee Schedule. 411 C. Initial Applications. All initial applications shall be accompanied by a non-returnable investigation fee in the 7.18 • amount set forth in the Fee Schedule on file with the City Clerk. D. Educational Requirements . i . Each applicant for a Massage Therapist license shall furnish with the application proof of the following: a. A diploma or certificate of graduation from a school approved by the American Massage Therapist Association or other similar reputable massage association; or b. A diploma or certificate of graduation from a school which is either accredited by a recognized educational accrediting association or agency, or is recognized by the Minnesota Higher Education Coordinating Board or other state agency having jurisdiction' over the school. ii. Each applicant shall also furnish proof at the • time of application of a minimum of 500 hours of successfully completed course work in the following areas : a. The theory and practice of massage, including, but not limited to, Swedish, Esalen, Shiatsu, and/or Foot Reflexology techniques; and b. Anatomy, including, but not limited to, skeletal and muscular structure and organ placement, and physiology; and c. Hygiene 704 .22 - EXCEPTIONS TO MASSAGE THERAPIST LICENSE REQUIREMENTS This Section shall not apply to the following people: 1. A state licensed physician, chiropractor, osteopath, podiatrist, nurse, physical therapist, or assistant working under the direction of any of the above-described professionals. 2 . A state licensed physical therapist, athletic director, or • trainer, or an assistant working under the direction of any of the above-described professionals. 7.19 • 3 . A state licensed beautician or barber, provided treatment is limited to the scalp, face, and neck. 704 .24 - MASSAGE THERAPIST LICENSE RESTRICTIONS AND REGULATIONS All Massage Therapist licensees shall : 1. Display current licenses in a prominent place at their place of employment . 2 . Upon demand of any police officer at the place of employment, produce correct identification. 3 . Practice massage only at such location as is designated in the license. 4 . Inform the City Clerk in writing of any change in location prior to such change. 5 . Refrain from the use of and not be under the influence of alcoholic beverages or any controlled substance as defined in • Minnesota Statutes while practicing Therapeutic Massage. 6. Be in full compliance with the restrictions and regulations set forth in subsection 704 . 08 of this Section. 7. Require that a person who is receiving a massage shall have his/her genital areas covered with an appropriate opaque covering. SECTION 704-.26 - VIOLATIONS AND PENALTIES Every person who commits or attempts to commit, conspires to commit, or aids or abets in the commission of any act constituting a violation of this Ordinance, whether individually or in connection with one or more persons or as principal, or agent, or accessory, shall be guilty of a misdemeanor, and every person who falsely, fraudulently, forcibly, or willfully, induces, causes, coerces, requires, permits, or directs another to violate any of the provisions of this Ordinance is likewise guilty of a misdemeanor. Each violation of this Ordinance shall constitute a separate offense. Conviction of a violation of this Ordinance shall be grounds for suspension or revocation of any license issued hereunder. • 7.20 • 00 metro/st t www.startribune.com/metro * StarTribune Friday,March 29 An affordable house gets pricier Met Council increases its benchmark to$170,000 Affordability gets more expensive By Jim Buchta mark will be used as a way to Hadley, commissioner of the and Steve Brandt gauge the progress communi- Minnesota Housing Finance The Metropolitan Council has raised the definition of"affordable" Star Tribune Staff Writers ties make toward their housing Agency(MHFA),which also re- -: housing to$170,000 from$134,250. Here is a look at median goals under the state's Livable cently increased its new-home home sale prices since October 1999. What does an affordable Communities Act. price financing limit for some >Monthly median sale prices(in thousands) January new house cost these days? The standard says that a of its low-interest mortgage $200 -- --------------------+------_-_---------- - $175,000 $170,000. family of four that earns programs to about$200,000. '180 New definition The Met Council's new deft- $61,360—80 percent of the ar- "It is a true statement, as .11_13 _�• 160 — 1° C ' ",_' A,i.. nition of"affordable,"which to ea's median income of$76,700 much aspeople don't want to ; s �' k some housing advocates is up- — should be able to afford a believe it,"Hadleysaid. Y n -' p G ' w r 140 •.� .-, . r`. . setting but not surprising, is $170,000 house. 120 ?' j,. ,, _ S •- v, r z ;((-' 'o ?' based on steadyincreases in "It's a number that takes AFFORDABLE continues on B5: t4 • fi Old definition ,- • a-i s," t ^' .�` k tit.,,4; homeprices and incomes. into account the realityofpro- —Housing crisis said to bear 9 8 f 100 1999: , ,.rtv„ 2000te.F .t. 14;: :. . l kx2001 .,<.�� s. The council's new bench- clueing new housing," said Kit worse than predicted. Source:Minneapolis Area Association of Realtors • FRIDAY,MARCH 29.2002 METRO/STATE • - AFFORDABLE from Bi the supply and demand for af- easier for suburbs to meet the $120,000 in attached town- fordable housing continues to affordable housing goals they home projects with no public Met Council grow. By 2020, the metro area negotiated with the Met Coun- subsidy," he said. "The signal will need 60,000 new housing cal under the Livable Commu- now is when it starts to get a units beyond projected build- nities Act. little bit harder to meet afford- head predicts ing levels, based on current But the council hasn't de- able goals,we're going to back trends,he said. cided whether it will apply the off, even when it's clear that the shortfall "We face a housing [short- same affordability standard other cities are meeting this age) much greater than any- when it makes grants to cities goal."' will increase one,even housing advocates in through housing programs es- Another council member, their most strident moment, tablished by that law.That is to Frank Hornstein, said the new ever predicted,"he said. be worked out in upcoming benchmark should serve as a The MHFA based its new However, lie said, the new meetings. Council Member wake-up call to developers and home-sale price limit on its de- guideline does not represent a George Garnett from north cities that prices have risen be- termination that the average policy shift for the council, Minneapolis said the council yond the ability of most people new house in the metro area which still is encouraging coin- still could give priority to own- to afford them. Hornstein has now costs$245,000. munities and developers to er-occupied housing that been an affordable housing or- The Livable Communities build houses for less than serves lower income levels. ganizer. Act was implemented in 1995 $170,000. • But affordable housing ad- It's not clear, however, as a way of reducing the con- "There is a concern that the vocate Russ Adams was upset whether the new benchmark centration of poverty in inner suburban communities would with the council's action. I'm will result in more new afford- cities by encouraging suburbs say, 'We have a lot of homes at just livid about it because of able houses. Some developers to provide more affordable $170,000, and we don't need to the signal it sends," said Ad- say there still are too many bar- housing. The law sets long- work to produce more units,'" ams, executive director of the riers to building them, even in term goals for suburbs to in- Mondale said."That's not what Alliance for Metropolitan Sta- the$170,000 price range. crease the number of owner- our policy will be— that's not bility. "Every time there's pres- Land prices are one of the occupied and rental housing. the reality of what's happening sure,they cave in." biggest obstacles, said Jeff Over the years, affordable out there." The alliance threatened this Schoenwetter, a land develop- benchmarks have been adjust- Last year, the council could year to sue the council and er and board member of the ed as home prices, incomes have increased its benchmark noncooperative suburbs, con- Builders Association of Minne- and interest rates have to $165,000, based on robust tending that the council has sota. changed. increases in median rents and authority under a 1976 state He said he's not a propo- The Met Council's new home prices. However, for law to determine the region's nent of public subsidies to benchmark for affordable rent consistency,the council decid- need for affordable housing build new housing but instead is based on 50 percent of the ed to hold the limit at$134,250 and make sure cities have favors more flexible local regu- metro area's median income. until the MHFA increased its plans to create it. But Mondale lations that would allow high- For instance, a new two- limits. That happened last responded that legislators er-density housing and smaller bedroom apartment renting month. would change the law if the lots,among other things. for $862 to a family with in- The primary incentive for council tried to enforce it. "It's the only way we're go- come of$38,350—50 percent communities to achieve their Adams said the higher price ing to get affordability," he of the area's median income— affordable housing goals is a standard sends the wrong sig- said. "It's hard to argue with would be considered afford- $12 million pot of state money nal to developers and suburbs the numbers." •• able. that cities can use for a variety that argue they can't produce Met Council Chairman Ted of purposes, including clean- owner-occupied housing for —Jim Buchtaisat Mondale said some communi- ing up polluted lands and rede- the old standard of$134,250. jbuchta@startribruie.com. ties are having trouble meeting veloping old strip malls. "That didn't stop Chaska their affordability goals, and at The immediate impact of and Chanhassen from deliver- the same time the gap between the change will be to make it ing units at $110,000 and • • ' ) III i NEWS W W W.TWINCITIES.COM • ST. PAUL PIONEER PRESS 1700110 FROM PAGE lA ' Affordable • s .I,' • li- �x „ . . • home nowhomes . :. ,iF '. , :" . . • -,. til •'£v 'A. deemed 4,0, •,----,2., :x : :: (continued) l 3w,•,• •,. : a >,,,., - <tI'»��,'_ ILA 4, i}, `1_ , -.,,- ,:::;' - .', .it=_.<' _ t, a home sold for less than r , .:"' i ,i r t:'.'...�;.• " "-'v ' .4 `Y ,. affordable . • . 1 „ ,. ,: '� $134,250 as affordable for the n•� � .•'',Iti • Iif� P ` - 's"'• 'F, 7.%77, '-ij, - -r""'"""7"'''''''.4-- '.Ire -,':**":74.%,:,,. past three years, but that num (-'",y„ . -^.a• I,i ,,,... . .,.. ,,, s ' + tF «t.,;,.5▪ .,; .:t, "•rs..-' 'i ,E u',3., • .'':. IIS„ • . ?•-' 5�-- i ' •_, @V Ver was artificially low. The 27 : '�'" '"' y .�� ,-:��,:. .. r Council changes percent increase in the limit :,•,110.,-' ,•,'•"g'= -;' • rj■(- ',,--j -`, it y 1 'livable' approved Wednesday came C•5 '.---;;_-..4.4-' ;',-.-77:',,,..‘,•'‘', - +4 t,_ .' " i , j y.s,i.wr° '''•••; i• `, �� 1 definition of y :k •• , µt „`"•��- ,r: U ` . °� •;q'F . v i`: because of the rising median �pr,+..>..• • - =' »,r.'. .:,-,• i,,,A > -- income and inflation. ,�F;,y 40' E , - __ , ' : - rsy,� , BY MARA H. GOTTFRIED Buildin r `- ,.- ::',<;• Building homes that would ',' na,,P.. - >, -,-- .•, 'E,r. Pioneer Press labia ..> � ,". z,s 4 u. . .---";.;.• 04, `' be considered affordable was w ✓ nearly impossible — without 4` `' ° An affordable new home in subsidies for$134,250 or "." ., - ! Cities cost$134,250less, .«,-•�,r ,,..,�.,.. , . .. l : ; ` k,. . ?; r the Twin on - d.`Phe new fi n w..��.: �M" " " .' ' :° ': 4 developers said. figure .,", r�r�, <,c•"'^.� -, :. .,. :1 , i; `t, �.-,.,,,,,. ,q,„,, .i. , . ;_ Wednesday. • *:. ;i-"°rT' �:r` _ s closes the gap between the •x; _ ...• '_,.,:,„„A-+,,t'r, 4'5 .I "1•:n, . ' i -t . %i t,,'_ �.`4'-�r,` Today, `affordable" means median'price of a new-construe- JIM GEHRZ,PIONEER PRESS $170,000 or less. tion home in the Twin Cities— These town homes along Langford Lane in the Charleswood housing development in Farmington "Really?" some have asked $245,000 — and what is now start at a base price of$168,900. about this new definition of viewed as affordable. affordability, approved by the said Mark Ulfers, executive for instance, is now considered moved in last May. Metropolitan Council Wednes- HOUSING CRISIS director of the Dakota County affordable. "Finding something afford- day. Community Development The median income in the able was very,very much on my Really. A family of four mak ince 1995, when the Livable Agency. metro area is comparable with mind," said Damer, who's ing $61,360, which is 80 percent 0Communities Act was "Think about that, five or 10 other large cities across the retired,has an income of$40,000 of the median income for the 'passed, the Met Council has set years ago we would have country.If the same formula for a year and lives alone."I'm on a Twin Cities metro area, can housing affordability standards. thought $170,000 was absurd," calculating affordability were fixed income and I had some afford to buy a $170,000 new The act aims to reduce the con- he said."Clearly,it's a sad situa- applied to those cities, their assets to put into it, but I had to home without spending more centration of low-income hoes- tion to have affordable limits so affordable housing limits would make sure it was affordable." than 30 percent of their gross ing in the inner cities by putting high, but given where we are be similar. It's a real stretch to find sin- income, according to the new some of it into the suburbs. It today they represent a reason- Some affordable-housing gle-family, new-construction Met Council standard. also provides tools for job cre- able standard for the people advocates take issue with using homes selling for$170,000 in the The $170,000 figure matters ation,such as money to clean up with a moderate income." 80 percent and 50 percent of Twin Cities and suburbs. Even mostly to cities because it's the polluted sites. Because of the The formula used by the median income as standards in Victoria, which is about 35 benchmark they'll use to judge act, some cities set goals for Met Council takes 80 percent of because, they say, people who miles from downtown St.Paul,a how well they're reaching their how much affordable housing median income for a family of make far less money are left out new single-family home would affordable-housing goals. But will be built in their communi- four — a common benchmark of the equation. start at $225,000, said Lynne it's also a gauge of where the ties and use the Met Council's of spending power — and uses "Those numbers were set at Jensen, division sales manager Twin Cities' housing market limit as a guide. a 7 percent interest rate to a time when the region really at Centex Homes. stands. In 1995, the Met Council set determine how much they hadn't reached the housing cri- But buying a town house for "When you hear that num- $118,000 as the upper end of could pay for a new home, pro- sis we're in now," said Russ $170,000 or less would be viable. ber, it sounds pretty high," said "affordable" for a new home. viding they spend no more than Adams, director of the Alliance A standard$170,000 town house Met Council Member Lee Pao Eighty percent of median 30 percent of their income on for Metropolitan Stability. "This would have about 1,500 square Xiong. "I consider myself a mid- income for a family of four then housing. seems like the Met Council is feet, three bedrooms, 21/2 baths, dle-income person,and it seems was$40,800. For rental housing,the Coun- only asking cities to meet hous- an unfinished basement and a like it would be a lot for me.But The numbers this year are cin uses 50 percent of median ing needs for people at moder- two-car garage,Jensen said. this number is reality." indicative of the dire housing income, which is $38,350. A ate incomes." The Met Council considered market if$170,000 is affordable, three-bedroom rental for $996, Indeed, some Met Council AFFORDABILITY members also have expressed FOR A L L AFFORDABLE HOMES, 10A concern about whether the affordability thresholds are tar- A /et Council Member Frank geting those most in need. Dur- 1V1Hornstein said he and ing Wednesday's meeting, the other council members worry l0A C THURSDAY, MARCH 28, 2002 council voted to look into the about the people who are most possibilities of lowering the vulnerable when it comes to income and affordability limits finding housing they can afford. used for affordable housing "Those people coming off grants to cities. welfare and working jobs that are below living wage,those are AFFORDABILITY the most worrisome," he said. MONTHLY PAYMENT IS CRITICAL "We need to redouble our + efforts to funnel public For a 30-year mortgage at a Interest: $892 -pm' Janet Darner, affordabili- resources to those at 30, 40 and ty was critical when she 50 percent of median income." 7 percent interest rate, Roger Taxes: $167 Harrington, a White Bear looked to move from her Eagan While the benchmarks set by Lake mortgage consultant, Private mortgage insurance: townhouse to a larger one. She the council are reasonable, they calculated the monthly pay- $66 knew she would have to move should be viewed as a ceiling for ments for a $170,000 home, farther out of the Twin Cities to pricing affordable housing, assuming the family makes a Homeowners insurance: $41 buy a home in her price range. Ulfers said. 10 percent down payment. Total monthly payment: • What she found was a three- "With affordable housing,we $1 292 bedroom townhouse in Rose- need to shoot for affordability Principal: $126 mount for $169,600, and she levels well below those stan- dards," he said."'There are a lot of modest-income folks that can't afford the levels of afford- ability the Met Council set." Developers and city officials tend to support the new housing affordability limits. The new numbers "reflect the real world," said Rick Packer, who heads the Builders Association of the Twin Cities public policy committee. "This is a builder issue because we're asked by cities to incorporate affordable housing into our developments,"he said. "The new numbers bring us closer to the real cost of produc- ing housing." While the Met Council kept the affordable housing bench- mark artificially. low, cities struggled with meeting their affordable ,housing goals, said Kris Wilson, government rela- tions specialist for the Associa- tion of Metropolitan Municipali- ties. But the new guidelines are closer to reality, which should help cities,she said. ill . . i 111 . Mill.o..2 pok ,/, ,.,,,14:::,,,, THE WALL STR 'DETAIL. EMERGENCY STATS, JOURNAL .,�T�VTD� STAT! >Time again ,_,�� The number of for tech? rj ' "" i 10Fit (; emergency .N...) • ' S >When wisdari "=r-= .. = medical = _;,'=_` technicians in INDEX is wrong s:. =:#, . Page D2 .,•16',V-M.'_� fr.11 Minnesota is expected to increase 26 Business forum Pag04 Personal finance g D5-D7F= Page D4 r;:rr.a.===':sq''•-_,•,," :,`; percent,from 2,990 to 3,768, Business calendar Pag03 Sunday people -~r=;` between 1998 and 2008. www.startribune.com/business StOrTribune Sunday,March 17,2002 Owners of aging shopping malls and abandoned hg-box stores often face a quandary: Stil Is it better to spend millions to renovate or could the property be razed? This pair ' !'- , .�=r• . . w.' ,, `; •, :` . business F !,`,' 4. „ r ,•>>:t,x r. Pete ( '� and Pe ' ..s `r .. v: � .; s ��, make s busine In thre ',' ,„ , • , s , they v( <,3 raw<, _�,u<<,,,,,:.�_ r comp i; ,3,. _ ;.,it.;I '''',PA-r-:=',--Z',',,', - - �;< 2',':'' - starte( A weathered 'f''``l,F'`..,. �„u..o'�. , x._ ,' - „•> ',;--..:4-;;:;t ,, .:;=_':r,' Apache Plaza pky `, 4, hone T located off ,4,-•;',-.4-4;,.':::4"4,4'.g.--., .�. .a , Young Sliver Lake �. { - > _= RRd.,lists the „3, x _-<„$ 4 .•u}c',��, .-. r''',,,:)",;. 1 4 ',4 d 4 _ - ”n y,',:`:./4f,h''' C: ' t _ PL• •,'.t yt5"r:,r:;,ten^ i _ - '/ _ �>y,�r,"y: _ agingmall s .. = .,, ` ,,,,„,„'''.1 ` ,,, remaining :_a,. ._. ;:' ,,- ` __ ,... a : +► anchor, ,« ., . ,-,,,A,,,4. :iE` _ r.?':' r;"' 'tnn'y:M`i'',, >5,;'s,• s - `' Ute. Herberger's , .. ,_ __, ;..{5>„ „ ,€' and an adja- 'f,t, _'_ i' , '-" ''•41,0,,,,'-i-,,,,': z,:.z_:: i_ _ ^'t ' cent Cub : " Foods store. , Y :x r et ,I, I ,. ',, �,�� '4-`,,II,.;;� , � Chang i, ',t_` f fF ' ,fir I 4 4. •. _ . w. ,., � t a good ill! i i I''i 1` ' :,r: - 4,,,< _ -iii 111 t'..,=,.,, -4. Em . ; ,', em Agiflg malls = _ - p ■ =ryA,��� ..-,,,,,„,,,,,,,,,,,,,,,,,i„,, ' �„ r�fi��;f, - _ >� �,_,Nt ���, �,,,�'�;� ships µ;ut �y)Y4,�.fi;na^Y. Lj` ''�" {Ftif��Lv�v r.; �'tr`':� �•`}�� r _ �=hp= -_--__ -F� 'r . , > '.',.,_:, rvt.,7 ..,,r - .„ both face a c 4"' ,jamn> tF _' ,' .a;. zr> ,,m ,r '�- 4 .r' 'AT',,''; .;,. quail .,",•ti, -,IM,'» —� ,i, '"' 1Z'. ' 'ASK-,, _ ,- _.. J''�,�<a-:•• - _ _ = ,', '>' ','.'.„ r"rr',' ',')-,,,4. .4,,�.+ay^ `^:e _ '�; .rte__- - -- _ = , }�:. : , �.}_- .. renovate, reuseto D4 .t .. ;,a , i.� " -,1'' .Vit r`. �+r .'-ua'T;:.. - -_- -__- _ ., .< °kyr- x By Melissa Levy (;;txs ", ; =,y•';_` ,, Y01 Star Tribune StaffWriter Photographs by Tom Sweeney/Star Tribune There's usually little activity in Apache Plaza,the agrg mall In St.Anthony.Besides a few shoppers,the shopping center at- .._..w ; ,,, ;i7,I. _Y +-.,< '�•.fr.,. ? ,P,_ 411 ,>' is not a good sign when there are more tracts regular mall walkers who love its open,uncrowded ex- w. i :, j ., ;PG, mall walkers than stores at a shopping panne, „,,,- :,,f.'. ,'''`V' v= ' m , 7 .7 "f, '"-^ ' Can center. h4 �' 10-1/2 TiVol V- *' ';``�4 rlsacnk ybu °� the a That's the case at Apache Plaza, a :a1.11-;, " `' "` f"''*r' Enclosed regional malls in the Twin Cities: ;',4 ' "" ,','. , �. onetime retailing gem that now sits �"..-.:`,,,.. ,P1,9:,-r"� �"' � +�'{' ��' as the city of St.Anthony tries .' ,:,,4 4.)_' ' '~ mun nearly empty :,. c :,Y xQI sti .,,.; t ,,: -',;'i ' '' ` plan that has " s3 � ; i,e' to finalize a redevelopment }` ` i°`' i: `"y' ` r-F,-`'r,. ` z•;., z 1 f 7. i does been' ears in the making. `.r -k. ,? ,` �,et ' s' - "5 y " said .f. 5 ;, * 1 _ 5 .;• „ `94 l ,,'y-';+ �' All v� ,-.;,,!'`i,." ' `- conf "You've got the place to yourself, ,, 4 ;541V",,- , �;�_ r,,.., -:? ,�� •'''' p4 �,� 1' `��--,w. ����'- • . r)•.\p m (sot`,. : , �.,{�. - Walt Slatoski,70,an avid Apache Plaza exer- Cc F r t�(+>, • �`�pe� 31''__ - _ .. `, 'F man ciser. ' '' -- , /mg1SINI f;% ,vtU+" ': f. iS $uM ;Cil<� iii�Iy .,,. ;Ef.FtE(t1r;c : " ,,,.r , The Fridley resident points to one end of •- �, Q '5,, ".-,`,,-',1 =' Cour lY'14 , ' '- M;x the beige-tiled, enclosed mall where Mont- ." t„ "_� ,,,,, ), -''''''�' °' _ ' _ COM Vis. ,, i '` 1,,.'w .; Y~' -�» ome Ward&Co.thrived four decades ago 1- � INNP,AP�I: ® ..-A" '"'r '" largt gry "`-. before moving to nearby Rosedale Center, ', ' - "` ,' r `y' "���.�# �t; 'LSO "`'�.�i _;;�ST.1'AUI-< ' 4 `, and then closing after declaring bankruptcy. ;,i ' ":,, 9�, al re �x. ;; r ,,, Empty shopping carts outside the Columbia Heights Kmart Slatoski then looks toward Apache Plaza's ^3, .m 8 a `9 ?F'" `: :x :; store,which is expected to close in coming months. other end, where J.C. Penney stood before ' 3 ,,,f-. • 1. 0 '� , ',If?,'•; ers t closing in the 1990s. "This was the place to :, s r Gatti►',It. ,, r.`- '`=, >''='< ers. go,"he said. - : , ',, x � , : :u t 4� : boxes die,Owners of aging shopping malls often ',I,'',;„°, - ac 2 141A.K TA 52; • F;'.. When face a quandary:Is it better to spend millions `,,,ps ',9, . ,.. -' '', i -• to renovate and reposition the center, or _ ' '„•' "?"•= ' , ■ ■ should the property be razed for housing or YEAR BOLT SHOPPING MALL cities get creative another commercial use? 1955 1/Knollwood Mall,St.Louis Park* i' At least 300 older malls in the United 1956 2/SouthdaleCenter,Edina Som' States have closed in the past five to 10 years, 1960 3/Apache Plaza,St.Anthony By Larry Werner estimates Michael Beyard, senior resident hirin fellow with the Urban Land Institute, a 1961 4/Har Mar Mall,Roseville Star Tribune Staff Writer Washington,D.C.-based think tank. 1962 5/Brookdale Center,Brooklyn Center L And he expects the same number to die in 1969 6/Rosedale Center,Roseville hoppers love the big-box retailers, and Ces: suburban are building their the next several years."We are not done with 1972 7/Northtown Mall,Blaine commercial futures communitieson the foundations of ce e the cycle," Beyard said of a trend that can 1973 8/Galleria,Edina individual stores that have more selling in e accelerate in a recession.He blames the glut 1974 9/Maplewood Mall,Maplewood 4 ndshopping centers used to. But in a of retail space nationally on aged and obso- 1975 10/Ridgedale Center,Minnetonka when those spaceretthans closeshotong stores, as Kmart to.and Un lete properties. 1976 11/Eden •Prairie Center,Eden Prams other chains have been doing in recent years, corn- the 1977 12/Burnsville Center,Burnsville munities are left with empty boxes smack dab in the fin MALLS continues on D8: 1992 13/Mall of America,Bloomington l middle of important commercial areas. WO —Several older malls have attempted reviv- __ (14/Proposed:Maple Grove Center,Naple Grove) alse continueco BOXES cos on D8; yea —There's no"magic formula"to decide a +}�nollwood was built as a strip center and later enclosed BB ClosingsES can bopportunities. pet mall's future. Source:Minnesota Shopping Center Association pr( em PAGE D8•STAR TRIBUNE SUNDAY,MARCH 17.2002 MALLS from D1 . ,�:;,„., .,- 3,,-�'4, ..,,,A:',...._:: Number of U.S. Several older malls have shopping centers i-,--,-.--,...k.i.- - = Even though the number of • ;�, -, shopping centers in the United tried to launch revivals ,_ ,h_- • _- - _ -t , "'^ ;„,-Vis,c, ..! ; States has steadily grown since I s .t ,,,t the 1970s, at least 300 older A reportpublished bythe emerging in the Twin Cities as _;- ,.: ,_ ' -fi` E P g g mss `, - - __: - malls have closed nationally in International Council of Shop- a development theme. The 1,..;= _, ., , ; 4, _ '" "� - r},�c ;; --,_. x ,,e,,- "- the past five to 10 years. The — ping Centers,a New York trade goal is to provide an upscale, ' =h m 4 l. °' " r Urban Land Institute predicts group says there was more unique shopping experience =_'= the same number to shutter in than 5.5 billion square feet of —typically in an open-air en- .- ___ _ _ ., ;-�;, ._ n - �,;,;?;' ;,,.', „n, 4 rx,.� = 4 ,� ,' •:_'._, „'��., the next several years. leaseable retail space in the vironment. The next phase of — .'�''E ° W� - ”' ','„1"'-::::`,, ,,:',`-'_ '""`''`"'`; United States in 2000, corn- the Arbor Lakes retail area in ',- " �rw a IN THOUSANDS :'c,' p 9 0. Maple Grove is supposed to ber'' III145,000c;a_ared with 1.5 billion in 1 7 �' 'a�� �4 r.. ��;�;, 4,`�'°,` ",�_�„ While centers like Apache developed as a lifestyle center. - -, ,4 fig' "' -``'='. Plaza flounder, several older Older malls—such as Eden .; ,�"_ �;ti',' ' ' �- '= ' = a._ - s. j ���==-� malls in the Twin Cities have Prairie Center — have added - ,, 4' 's ''' i 1" �-_ k 11000 . ,z 7,, 14';''.7 embarked on revivals in recent entertainment components in- 3=: - _ ',r,,.�= -�:'`-- �=�° �` -' _ - _-- 30 ,,�,;:,:,�,<.,, ,,� ,�, ears. Spots such as Minneha cludingbookstores restau iz -{ rr ha Mall in Minneapolis and rants and movie theaters to - • >. - .,,-- - �, F. ., i,‘4,‘/#1,1,'' �� SignaSi al Hills Shopping Center in draw consumers. - = =' y - _ `V ei=;, d, e,,,' '" 't;>srbr� l PP g ...-2--_-_;?-_-- - -4' -.F..- ._ _ .�� .,�r,,, � Y �,"�,� West - _. � .,4'4.P, es St.Paul have de malled In Darwinian terms, the ;�'� �����'� _ __ __ lo-. , ,, „ y�,r f , ,�',, —becoming strip centers with shopping centers with the best r/.�, `' ' ::,- -F, -- '70 75 '80 '85 '90 '95 '00 a Target and Kmart,respective- chances of survival are those in �.. - %-` , g P �. ' Source:National Research Bureau ly. prime neighborhoods with ,1`,---, ,z-zn _ Still-enclosed shopping strong visibility and easy ac- TomSweeney/StarTr�une Retail sales in U.S. centers such as Har Mar Mall cess,retail observers said. John Henderson runs a floor sweeper in the Apache Plaza shopping center,cleaning up after a weekend [ in Roseville and Knollwood Consider Signal Hills in antique show. shopping centers Mall in St.Louis Park have add- West St. Paul as an example. IN BwONs OF DOLLARS ed Cub Foods grocery stores to Along a busy stretch of Robert grade a mall might become people from as far away as Wis- few merchants remaining. _ ' bolster traffic. Street, the center began its life greater than any benefit that consin,longtime shoppers said The defection of tenants in- 1,200 $1,136 - l There is no"magic formula" in the 1950s as a strip mall with can be captured, said Beyard, recently. tensified in the mid-1990s, in- 1) �•� '1000 '• r to determine if a mall is a better a grocery store. After years of who follows retail and enter- Ing.its heyday,Apache Plaza cluding the departure of main-� 800 ■I■■ F. 1 • candidate for a renovation or a being an enclosed mall that did tainment development. was host to a petting zoo for stays W. Woolworth and J.C. reuse, said Mary Bujold,presi- not age gracefully, it has re- Typically the oldest and Easter and Halloween pet cos- Penney. First Bank (now U.S. 600 ■■■ ..' u.,°' dent of Maxfield Research Inc., vetted to a stripmall. smallest retail centers, and fume contests, not to mention Bank) took possession of the 1'2' a Minneapolis firm that ana- Kmart agreed to relocate to those that have lost a greater car and boat shows. The mall shopping center in May 1995 400 L$82 .43,714r1M lyzes real estate markets for cli- Signal Hills in 1999. Buy-N- part of their market to newer even brought an elephant in- after the previous owner de- 200 WA -N4 d, ents that include the city of St. Save,a grocery concept of Edi- malls are the most likely to die. side the building for kiddie faulted on loan payments. ?.0""' F F� Anthony. na-based Nash Finch Co., just "It can be any combination rides during a circus-themed For eight years, redevelop- 70 '75 '80 '85 '90 '95 '00 Among the factors that opened there,as has a Caribou or just one of those factors," event. ment proposals have come and Source:ICSC calculations based on should be considered,she said, Coffee outpost. Beyard said. ,."You name it, we pretty gone. The city last month se- data from Deptof Commerce is the mall's location and size, "The evolution is really much had it," said Jim Monk, lected local developer Pratt- the neighborhood's travel pat- quite amazing," said Stevethe building's engineer for Ordway Properties to trans- terns and other activity in that Dombrovski, president of St. Snnshme shopping' nearly 20 years. form Apache Plaza and the sur- Mar or the Quarry for their pri- trade area, including retail Paul-based Suntide Commer- Off Silver Lake Road in the The first signs of trouble rounding 50 acres into a mix of mary shopping needs. • ' competition and potential us- cial Realty Inc.,which is Signal inner-ring suburb of St.Antho- came with the late 1960s con- housing and a limited amount "It's pretty evident it's not a k ers. Hills' leasing agency. The cost ny,the eerily quiet Apache Pla- struction of Rosedale Center in of commercial space. Officials hot retail site," Assistant City of the renovation has not been za has the feeling of an aban- nearby Roseville.Apache Plaza hope to reach a preliminary Manager Susan Henry said of Changing times disclosed. doned movie set for a teenage eventually lost anchor Mont- development agreement next Apache Plaza, noting that the l b' The reason that a revival mall-rat story.In fact,Best Buy gomery Ward to the 'Dale, month,and construction could building itself is not in good Thirty years ago, the pre- made sense at Signal Hills was Co.Inc.recently filmed a corn- which sits closer to major begin as soon as 2003.The pro- enough shape to be reused. f vailing rationale in retail circles the "critical mass of rooftops" mercial there because the Eden transportation arteries. ject would be funded with pri- But Kelli Cassidy-Friese,the I was that people wanted to nearby, Dombrovski said. Be- Prairie-based retailer needed a '"When Wards left, it seems vate and public investment,in- mall's longtime marketing and I shop inside an enclosed cen- sides the residential density, generic storefront and the cen- like things started going down, cluding tax-increment financ- events coordinator,insists that ter. A grocer and hardware the corridor is a major thor- ter's high ceilings and bright down, down," said Richard ing. Apache Plaza still is viable for f store might anchor each side of oughfare into St.Paul. lights fit the bill. Prochniak, 65, as he walked at The Maxfield Research mar- retailing.She said the mall can i a mall,with a hallway of small- "If something is good in the When it opened in 1961, Apache Plaza recently with his ket study indicated that the draw up to 15,000 people for a ? er shops in-between. first place, it should be good Apache Plaza was the second wife,Diane,64. Apache Plaza area can support weekend antique show, and 1 Since then,retailing formats again," he said, describing the enclosed shopping mall in Then a tornado struck the about 75,000 square feet of re- that the reason many tenants , have changed dramatically. It leasing of the shopping strip as Minnesota after Edina's South- plaza in April 1984, causing$5 tail space, compared with the have left is they couldn't secure became trendy to build"power a "patient process" in a chal- dale Center. A marketing flier million in damage. The mall mall's 275,000 square feet. It a long-term lease and were un- centers" — clusters of larger- lenging economy. from the era bragged that the underwent a renovation, in- suggests the retail use should certain of the center's future. i III format stores such as discount- In a survival-of-the-retail- St. Anthony shopping mecca cluding a new roof and tiling.It be "primarily service,specialty "It's been a domino effect," ! ers and home improvement ing-fittest, newer shopping ar- offered"year-around sunshine celebrated its silver anniversa- and convenience retail," such she said. chains that open directly to an eas often claim market share shopping in air-conditioned ry in 1986, welcoming Her- as dry cleaners and florist i ample supply of parking. from older malls. The signifi- comfort." Its 60 stores — in- berger's as an anchor.That de- shops, as most local residents —Melissa Levy is at Also, "lifestyle centers" are cant investment it takes to up- cluding a bowling alley—drew partMertt store is one of the travel to nearby Rosedale, Har mlevy@startribune.com. ,.'... -{ BOXES from D1 � ,„Lh r3,n�:t'R. - _ -... n cv_. M1-'4 . r - .. ,r.xa 4.„N'?%A�„ � ,,,N.',.4-:"�' «.� z"F ��.o ,�'.��� �.,.n -" ""•? ` ........., W-,..•,..... .,.,...,,... .......LILA...V,...,,,.....u.,..0 w uY- .,iuuuib u vvvvwa5 aucy—ulcvv paltulellt JLuiC 1J one 111 me uavel to nearby Itoseuale, r-iar mlevytasrarirwune.com. BOXES from Dif ,-, , -.,,,-,,K,-.f _- -" ,-: °S .;.,,,,m,,,,:; „ • '�_ - f - �w r- .rV M1 , ^` ,',^#„ _ �•.�Experts saycities canturn �J'Y � _ i "�� hw 3%S � 1` P1 �� �:fi. �. +v�4��-�'�-', �„.� ��_`” •'. .- � ; _ rte:_.: _�A: � :• ' -„`�, � :' � ,, - Y"_ • �„ -�y _;rt�1x � .� , � ; t .A, R : s difi,• _ ' � o;�4.n ote� . _ '"YT .� ''� ,�,,«,fir'l ,!riiL -_;: '*..-4,' , �`"Vy; ��M1_-# - yS'- :to v° � 7,r,�r.;"-dark boxes into bright ideas ; � rE , .. ` • - ,• ` tt.- ' Real estate management longer-term interest of the � .. - _ - and urban planning experts community." - -. ,,.._,,T . x' -- -,- ""0— "` tr ' say these closings can be op ,vice president of , e ". -;_,----=, • = • :a r,� -5.-:,`-'-:� _ "� ,,,,:'`' - Mike Simsz,,-,..--,-;" " --�r�.� `•`;„,, portunities for United Properties, said bank mm �� `� "� ..,„4., ,, z!-_, = '� i ?'r '`'',.,'" communities tor-- <. _ `t ru tc relclosings ,.*....f'�.,:�;�,-„,vo'i„°-_ related b _” -. T get smart and find uses that „,..er,,-,„2, -_..... ,f,� ' -'�,_ , fix °���-`;�.-.�-�,�.,_�, . `=.�.,j:a: can turn P YY ' i,1,, 4,... "`' ”" "J,rr -_ - ;� - ;k ;; fir,. dark buildings into Kmart,Montgomery Ward and ;`� �=+ `'"""" .r,:- „�Fu - - ,, °' '' `' bright ideas, ranging from ad- HomePlace and closings of un- - r € �7 f� ,,-,4-' ditional classroom space for derperforming stores by other - ; ,,';_*!:q2; :' . .�',r-'° ., fast-growing suburban schools chains such as Office Depot N _-- =I" ;- •.,, - `=j to an indoor go-kart track for have forced leasing agents _, • • � `F' ',,;,,,,,-4, 4• ', - _ ="'. off-site business retreats. ways :w -_ =[�- = �;` , 3 : a: 4F - ' _ -_ # .• 3: think about new g w:-' ; , -' _ -= ' • of using �---- =`e.� �.Y�., �: � , 40, And,stores in hot commer old boxes. ,.c.4-1-•:,;-.:1-:-- .00,=-.,....,-.--..-:-.,--- ''- _ ,,-„,V1,;:5442,17 ,, Es IMS�- ,z probably be re "�= cial areas will r y „It's literally a b --.-.. =-._� , `�:-- . - = ' J' ,L' .1",-;:101` , : ;.'f ., .: p ox said - - _ - ::� ��� ���.. • NK.� opened by other big-box retail- Sims, who finds renters for - _ -_- " ='" _ r T ivr.!' ::.. _ l0, u _- ers, the commercial brokers commercial space. "You've got s_ �-- _ _- T,• _ ;!. ..- ;v.,.�=, ,..' say. But the urban planners a clean space that lends itself to .-�� _•_— _- -:-..-,,,;:§4--. Til"' f,11�-'``-t �.: • --= recommend that public offi- a single user or a multi-user. Bruce Bisping/starTrbune cials take the time to consider 'That's part of the allure of these The Diamondhead Mall,forced to close by competition from Burnsville Center,has been turned into a Burnsville High School campus. the use that's best for the corn- [boxes] is that they are easily munity. convertible to not only retail been forced to close by compe- Center and about some empty nies, said the only empty big into play when the[retail]mar- ' ; "Developers are basically users but alternatives,whether tition from the nearby Burns- grocery stores around the Twin box he's been trying to rent—a ket's failed," Johannson said. interested in making money, it be offices or call centers." ville Center,was sitting largely Cities., HomePlace at I-494 and France "Your dynamic strong retail ar- and that's fine, but their time Or schools,for that matter. empty about a mile away from "I'ste got probably three Avenue—was no problem be- eas don't revert to the alterna- frame is different than the In 1998, the Burnsville-Ea- the high school. closed grocery stores around cause it's near the popular tive uses like call centers, of- community's time frame,"said gan-Savage School District was The school system and the the market,and most of the in- Southdale Center. He's rented fice, indoor recreation and Jeff Soule, policy director for dealing with a surplus of stu- city were already renting some terest I've had has been either about half of it to Cost Plus mini-storage." the American Planning Associ- dents at Burnsville High School space in the mall for communi- schools or health community World Market,a retailer new to But when retailing isn't the ation in Washington, D.C. and a shortage of money for ty education, a senior center collaboratives," Sims said, the Twin Cities that specializes best use,the boxes can be used "One of the things we encour- building a new high school, or and early childhood family There's been a"fair amount of in gifts, home furnishings and for other purposes. North Me- • age communities to do now expanding the old one. education. So the school dis- buzz" concerning a closed gourmet food and beverages morial Hospital bought a ' that it's closed is think about Meanwhile, the old Dia- trict bought the mall and Kmart in Brooklyn Center that from around the world. Jo- closed Montgomery Ward what would be good for the mondhead Mall, which had turned it into a campus for is now an indoor go-kart track, hannson said he expects no store at County Rd.81 and 36th high school seniors. he said. problem renting the other half Avenue in Robbinsdale, a Half of the high school's 700 "That's creative," Sims said to another retailer. spokeswoman said, and the seniors spend the morning in of ;Thunder Alley, which Cost Plus World Market is hospital is trying to decide BOTTOMVVNERSclasses at the old mall,and,af- opened in December,in a for- taking space in three other va- what to do with it.It won't be a �■ ter lunch, switch places with mei Kmart at Hwy. 100 and cant big boxes around the area, store. Eric and Bill Teitelbaum the other half of the senior John Martin Dr. "They cater to Johannson said: in a former Sometimes,the experts say, class that has spent the mom- businesses for sales meetings. HomePlace in Woodbury, a the best use of the box is to tear ing at the regular high school. They have conference rooms former HomePlace in Minne- it down and build something "In our case, the Diamond- and a sales seminar for half the tonka and a closed Just for Feet else,which might happen with ---iihead Mall worked out very day and the other half you go in Roseville. the Kmart that's being closed well," said Gary Kubat, com- race around the track." Johannson said it's often in Columbia Heights. L....,_ munications coordinator for ' Sims said he recently found necessary to divide a big box "The good news is they are the school district. "Originally, a tenant for a closed Office De- into more than one tenant. not elaborate or expensive the kids were hesitant about it, pot_on Interstate Hwy.394 just That's what's happening with buildings," said Soule, of the • but it's become really popular west of Hwy. 100 in St. Louis the spaces being taken by American Planning Associa- with them and their parents.It Park.That tenant is not a retail- World Market and being con- tion. "They may have a use— was a very visible building in er, but someone he wouldn't sidered for the Kmart that's an antique mall or roller skat- ' ,7 the community, and to have it identify who wants 30,000 closing in Apple Valley. ing rink. But people shouldn't • sit empty and not used was a square feet for office space.He But he said retail is the most be thinking they can't get rid of - shame." said the Office Depot opened likely reuse of big boxes in them.They're not hard to take ~ on the old Hwy. 12, and when strong retail areas because re- down or hard to replace.Don't '" `'"' I-394 was built, the store be- tailers pay higher rent than think of it as what can I put in a Renovation costs less came less visible and less ac- other tenants. At Northtown cinderblock buildingsur ' The cost of buyingand ren- cessible — seriousproblems Mall in Blaine,for example, I, p the rounded by asphalt. Think +t - -w , ovating the mall for a school for retailers. But it's among center's owners are not consid- about what's going to really be : .: --•- .,- ,_ cost the district about$20 mil- several high-rise office build- ering alternative uses for two good for the community." "a.,! "r` -L-A-1-....1-\ lion less than it would have ings,which will be joined soon closed boxes—a Montgomery II cost to build a new school. by a low-slung office building Ward and a HomePlace—be- —Larry Werner is at • Sims, of United Properties, that used to be a big-box retail- ' cause Blaine is a growing sub- lwerner@startribune.com. said he's talked to school oper- er. , urb, and Northtown is a suc- "Dad, I'm not talking allowance; I'm talking bridge ' ators about an old Office Depot John Johannson,vice presi- cessful mall. financing." he's trying to rent in Brooklyn dent for retail at Welsh Compa- "Alternative uses only come _ ,��f.,�,,,fir lir; -_ - - � i � - - - - _ - - - - chi`