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Minneapolis council committee advances Izzy's facility, derails social services center plan
It was a busy and productive day Tuesday when the Minneapolis City Council’s Community Development Committee plowed through 10 public hearings.
In the process, committee members nixed a social services facility, approved an ice cream factory and finally found a buyer for the Grain Belt Beer office building.
Here’s a recap:
The West Broadway Hub Project
The Hub Project was seen by Hennepin County as a potential home for one of six social service centers that would move the bulk of services out of downtown Minneapolis and into communities across the county.
What they found out instead was than many who came to the hearing wanted commercial development on West Broadway and a chance to spend their money in their own neighborhood.
The project would have been developed by the Ackerberg Group with Hennepin County as the tenant in a 30,000-square-foot building housing 200 county workers.
“It is not an issue of social services,” said Roberta Englund, executive director of the Folwell and Webber Camden neighborhood association, who said her group was ready to petition for an environmental assessment of the project.
Most of the land for the Hub Project is vacant or contains buildings that need repair, according to the staff assessment.
“Two-thirds of this neighborhood has to come downtown for social services,” said J. Michael Noonan, manager of the Real Estate Division of Hennepin County. Noonan said he spent a year looking for a large-enough site on the Near North Side and that the West Broadway site was the only parcel that could handle the project.
Still, the call for more commercial development was strong. One resident said he wants a Chipotle and Anytime Fitness in his neighborhood because they would attract more businesses and more potential homebuyers. Council members agreed.
“We want to make sure the people who live in this location can spend their money in this location,” said committee chair Lisa Goodman, who also cited the lack of consensus from community members as a real problem for moving ahead with the project. The committee denied approval of the plans.
Izzy’s Ice Cream
Everyone might like ice cream, but not everyone wants an ice cream factory across street from their loft apartment. This is the story of one vacant lot and two development plans.
In September 2010, Shamrock Development offered the city $350,000 for 9,730 square feet of vacant land adjacent to property it already owned where it planned to build 150 residential units. The company wanted to use the additional land for a driveway and green space. It made an offer $87,850 below the city’s asking price of $437,850.
Three months later, Shamrock made what it labeled its “Final Offer to Purchase” and again offered $350,000 for the land. The city rejected that offer, too.
Six months later, along came the people from Izzy’s Ice Cream who had noticed a “for sale” sign on the property, which fronts on Second Street with a view of the Guthrie Theater and Gold Medal Park.
Izzy’s is a family-run business headquartered in St. Paul with a Marshall Avenue store and production facility near the University of St. Thomas.
In October, Izzy’s offered to purchase the land for the full asking price. Working with city staff, Izzy’s was able to obtain grant money from the state and Hennepin County for environmental clean-up of the site totaling $142,532.
Izzy’s plans to build a 5,200-square-foot production facility that also includes office and retail space for $1.8 million designed by architect David Salmela. The company plans to produce ice cream and deliver it to commercial clients in its own vans. It also would sell ice cream to walk-in customers.
But Shamrock was not done pursuing the property. Three weeks after the Izzy’s offer was accepted, Shamrock offered $450,000, upping its previous offer by $100,000 and topping the Izzy bid by $13,000. The city, however, told Shamrock that another project was being recommended for the site.
Discussion at one point focused on the difference between an ice cream factory and an ice cream production facility.
If you are confused about the distinction, you will be pleased to know that someone likened a restaurant kitchen to a restaurant factory, perhaps to make the point that there are already other factories in the neighborhood. There also are other lots in the neighborhood zoned light industrial, which is the same zoning category for the Izzy’s location.
There also were questions about what the new facility would look like.
And architect David Salmela responded: “My obligation is to create a unique statement, a counterpoint to the Guthrie Theater. My reputation is at stake. I want to make it the very best building.”
Turns out at least one council member was just pleased to have another business moving to downtown Minneapolis.
“I’m delighted we’re getting a St. Paul business to relocate to downtown,” said Council Member Cam Gordon. The committee agreed, voting unanimously in favor.
Grain Belt Office Building
Finally, the city has a buyer for the last parcel in the 14-acre Grain Belt Beer property, acquired by the city 23 years ago.
Everwood Development, which plans to build 150 market-rate housing units on adjacent land, has agreed to buy the Grain Belt Beer Office Building. Another buyer had been interested in the building but pursued other plans in December.
Everwood will buy the additional property for the asking price of $150,000 and will use it, appropriately, as an office building. What a concept, and what a deal. The city spent nearly $250,000 repairing leaks in the building with $175,000 of that coming from a state Legacy grant.
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