city council
Nancy Edmonds Hanson
Economic development consultant Derrick LaPoint shared good news about the Eighth Street Redevelopment Project with the City Council Monday: Despite several hiccups, including a higher-than-expected water table, plans are moving forward for the Emery Apartments in the northwest quadrant of I-94 and 30th Avenue South. The council went on to approve a master agreement with Enclave Development, the company handling the project, including tax increment financing for the housing portion of the overall project.
The $20 million five-story apartment structure includes 130 apartments. Fifty-two of them will be designated as affordable housing, available for renters who meet income guidelines.
What didn’t come up in Monday’s presentation was a go date for the second part of the $30 million development envisioned for that corner. LaPoint said that plans for the retail/commercial portion tucked into the corner of I-94 and Eighth Street South are not as far along as the apartments, so the residential structure – the element affected by the TIF – was brought forward separately.
Originally the project was intended to rise four stories above underground parking, he noted. Further investigation revealed that an unexpectedly high water table of just seven feet, ruled out that option. Instead, the structure has grown to five floors, with parking taking up most of the first floor. But that adjustment raised the height of the building … beyond the maximum height allowed in the area’s zoning, which was already adjusted to accommodate the proposal just last year.
The council agreed to accept the planning commission’s recommendation to issue a conditional use permit for the growing building. It also approved sale of a triangular slive of land still owned by the city and the developer’s stormwater management plan.
Queried by several council members, Brian Bochman of Enclave said, “The retail side of this project is still a moving target.” The firm is in discussion with CVS Drug and other potential tenants in the mall area. Dairy Queen and First International Bank are expected to stay in their freestanding locations. “We’re working on several options for the existing building, especially the big box on the south side,” he added, noting that uncertainty in the retail and restaurant sectors related to COVID have slowed it down and affected rates that can be charged: “The world post-COVID is very difficult for them.” Nevertheless, he said, the company hopes to come back to the council in three to six months.
LaPoint commented, “We felt it was important to get the housing piece moving forward now. This is going to bring opportunity all up and down that corridor.”