Workshop Item - Erik Thorvig, Community Development Director
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City Council Priority Economic Development Areas
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Background
In early 2021, the City Council had several discussions about the City’s approach to economic development and identified four priority areas. Those areas are:
1. Southwest Corner of 125th Avenue/Lexington Avenue
2. Northtown Area
3. 105th Avenue Redevelopment Area
4. West side of Highway 65, between 99th Avenue and 105th Avenue
Areas two, three and four are also identified in the City’s 2040 Comprehensive Plan as redevelopment areas. Areas two and three are identified in the “Growth Management” section in the City’s Strategic Plan.
As part of those discussions, the City Council identified taking a more proactive approach to development versus allowing existing zoning and the real estate market to strongly dictate how the areas would develop, and what uses may go into these areas.
All four of these areas have been addressed in different ways. The work completed provides staff a clear understanding of what the City Council wants to see in these areas when speaking with developers, landowners, and real estate brokers. This clarity is extremely important for staff and stakeholders as it prevents wasting resources on projects that may not be what the Council envisions for a certain area.
Southwest Corner of 125th Avenue/Lexington Avenue
This was the first area addressed in 2021. The area is generally located on the west side of Lexington Avenue, south of 125th Avenue to the Blaine Wetland Sanctuary parking lot. The City Council rezoned this area to B-5 Town Commercial and created a zoning ordinance identifying the preferred commercial uses for the area. The immediate southwest corner of 125th Avenue and Lexington Avenue is being considered for development by HJ Development and Enclave. They presented a proposal to the City Council earlier in 2022 that included multi-family housing and a commercial project consisting of a grocery store, restaurants, and retail. The Council was receptive to the project. The developers are completing due diligence and may potentially bring a project forward in 2023. Properties to the south are not currently for-sale nor are being considered for development at this time.
Northtown Area
The Northtown Mall area has been identified as a redevelopment area in the 2030 and 2040 Comprehensive Plans and within the Growth Management section of the City’s Strategic Plan. Several other suburban cities with regional malls including Minnetonka, Edina, Roseville, Maplewood and Burnsville have completed future plans around these commercial nodes to address the changing retail climate.
In August 2021, Damon Farber was hired to assist the City in creating a redevelopment and revitalization plan for the Northtown area. Two other firms assisted in engineering and market analysis of the plan. The plan identifies long term plans related to redevelopment, land use, multimodal infrastructure, parks/open space, and stormwater. The plan attempts to accomplish redevelopment over a 30+ year timeline through ten guiding principles. The plan introduces of a mix of commercial, residential, and civic uses that will make the area a destination for shopping, employment, entertainment, recreating and living.
The plan is intended to be a long-term vision, however there are various aspects that can be implemented in the short-term depending on market and private development interest. The plan is a framework for future development, and it is anticipated that the full build-out will look different from what is shown within the plan.
The City Council adopted the plan on July 6, 2022. A staff committee has been formed to identify implementation steps to accomplish these goals. Staff has scheduled various workshop discussions early in 2023 to review the plan and receive guidance from the City Council regarding land use and zoning decisions, along with a plan for property currently owned by the Blaine Economic Development Authority (EDA).
105th Avenue Redevelopment Area
This area has been identified in the 2030 and 2040 Comprehensive Plan as a redevelopment area and in the City’s Strategic Plan. The area consists of older industrial buildings built in the 1970s and 1980s. The EDA has been active in acquiring property in this area since 2015 in hopes of spurring redevelopment.
In November 2021, an architect was hired to assist the City in creating a visual plan for this area. A concept plan was completed in June 2022 that showed the area redeveloping with entertainment options, restaurants, hotels, housing, and public space. The vision is to provide a destination for tourists, Blaine residents and surrounding communities.
The City selected Elevage Development/Bader Development as the master developer for this area. A predevelopment agreement was approved by the EDA on December 19, 2022, outlining the initial phases of the project prior to physical development. Over the next 12-months, the developer and city will work together to complete due-diligence to determine development feasibility. The hope is to have development start in 2024.
West Side of Highway 65, between 99th Avenue and 105th Avenue
The area north of 99th Avenue to 105th Avenue on the west side of Highway 65 has been identified in the City’s 2040 Comprehensive Plan as a priority redevelopment area. There is approximately 60 acres of land that is available for development. Most of the land is vacant, however there are two existing businesses (Mrs. B’s Dolls and The Pool Store). The EDA owns 4.31 acres.
Most of the land is zoned light industrial, however guided as Planned Commercial in the City’s 2040 Comprehensive Plan. The City Council discussed this area at the October 10, 2022 and November 14, 2022 workshops, and direction was given to rezone the area to B-5 (Town Commercial). This action was considered by the Planning Commission on December 13, 2022 and will be considered by the City Council on January 4, 2022 and January 18, 2022. Rezoning the properties provide clarity to landowners, staff, developers and brokers that are interested in the properties for future development.
Staff Recommendation
Receive the update.
Attachment List
Priority Area Map
Northtown Master Plan