WORKSHOP ITEM Erik Thorvig, Economic Development Coordinator
Title
DISCUSS EDA OWNED LAND ADJACENT TO FORMER KMART
Background
Since 2005 the Blaine EDA has been active in acquiring blighted property around the former K-Mart building on 89th Ave in an effort to redevelop the area. A map is attached showing the two areas where property is owned by the EDA. The EDA owns 2.15 acres along University Ave. and 2.88 acres along 89th Ave. The EDA has been holding the land in hopes of it being part of a larger redevelopment of the K-Mart property. The former K-Mart site is going through a substantial internal and external remodel and will have Auto-Zone and Xperience Fitness as tenants. Another 20,000 sf. of space is also available for lease. Because it is anticipated that the building will be occupied for a long period of time and not redeveloped, staff needs direction regarding the future use of the EDA owned land.
2.88 Acres Along 89th Ave.
Current Zoning: B-2 Community Commercial
Land Use Designation: HDR/PC
This site is the former Frank’s Nursery that the EDA purchased in 2005. The site abuts single family residential to the east and north. Staff had E.G. Rud prepare a concept subdivision plan which shows nine detached, villa style homes backing up to the single family residential neighborhood. The proposed product would be similar to what is being developed by Capstone Homes north of 113th in the Meadow Place and Hidden Acres developments. These homes generally start in the low $300s. A 30’ landscape buffer is provided on the west side of the development which would likely incorporate a fence and heavy landscaping to screen the former K-Mart property. The internal street is shown as private, however could be dedicated as public right-of-way. Staff feels this is the most compatible use with the adjacent residential neighborhood. This use would require a zoning and land use change.
Another option for the site is high-density residential. The site could accommodate approximately 60 apartment units. One concern with this use is the potential height of a building directly next to single family houses. A third option for the site is a commercial development. The site is narrow and deep which may create difficulties for building layout, site circulation, etc. A commercial use also may create compatibility issues with the adjacent residential neighborhood.
If there is interest in pursuing the first residential option, staff would reach out to several builders that are active in Blaine and see if there is interest and market demand for this type of product in the area. Otherwise, if there is interest by the City Council in either high-density or commercial, staff can market the site for those uses also.
2.15 Acres along University Ave.
Current Zoning: B-2 Community Commercial
Land Use Designation: HDR/PC
This site is the former YES Gas (purchased 2012) and DC Music (purchased 2008). The redevelopment area includes an additional 15 houses that are adjacent to the site (see Potential Redevelopment Area map). The larger redevelopment area was identified in both the 2030 and 2040 Comprehensive Plans. The purpose of expanding the redevelopment area beyond what the EDA owns is to create a larger development parcel of approximately 8.62 acres. It also provides the ability for a development to gain access to 91st Ave. which intersects with University Ave. at a fully signalized intersection, unlike 90th Lane which has limited access due to a center median in University Ave. Staff recently learned that a real estate broker who represents several local developers has sent letters to eight homeowners directly north of the EDA owned site asking whether they would be interested in selling their property. He mentioned the developers he represents would be interested in either doing a single or multi-tenant retail project or mixed-use (residential and commercial) vertical project. Because of this recent activity, staff would recommend holding the property until the development group that is inquiring about property purchase has completed their due diligence. If they don’t proceed, staff can discuss next steps with the City Council again in the future.
Recommendation
Staff would like direction regarding each area.
2.88 Acres Along 89th Ave
Option 1: Approach Single Family Developers
Option 2: Market for Commercial and/or High Density Residential
2.15 Acres along University Ave.
Staff would recommend holding the property until the development group that is inquiring about property purchase in the area has completed their due diligence. If they don’t proceed, staff can discuss next steps with the City Council again in the future.