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The (Re)Development Process

The (Re)Development Process. How do Cities Grow?. What is growth? Increased areal extent Increased population increased areal extent increased density horizontal vertical

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The (Re)Development Process

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  1. The (Re)Development Process

  2. How do Cities Grow? • What is growth? • Increased areal extent • Increased population • increased areal extent • increased density • horizontal • vertical • Increased economic activity – cascading effects - jobs, income of residents, demand for public services, demand for consumer goods and services, increased tax base for city ……

  3. The Nature of Urban Development • Increased in-migration into urban areas • Increased density - congestion • Horizontal spatial spread – sprawl • Vertical spatial spread

  4. Fragmentation – the division of a spatial unit into smaller spatial units • The evolution of privately-owned parcels of land • The evolution of governments – jurisdictions – states, counties, cities, townships, special purpose districts • Fragmentation has been a dominant process throughout U.S. history

  5. Fragmentation 7 Counties 138 Cities 50 Townships (49 School Districts) (22 Special Purpose Districts)

  6. Early Growth of St. Paul 1863 1863

  7. Plats filed for record in Carver County

  8. The Nature of Recent Subdivisions • Private Communities • Gated Communities • Golf Communities • Planned Communities – Master Planned Communities • Lakefront property • Cluster Development - A way of permanently protecting open space and important environmental resources in new residential developments, while providing landowners the opportunity to develop their property. • City of Afton Comprehensive Plan

  9. Conservation Subdivisions • Building Around Nature • Making Housing Development More Environmentally Friendly (MPCA) • The Fields of St. Croix • Spirit of Brandtjen Farms • The St. Paul City Council unanimously approved an ordinance March 28, 2007 requiring developers of any new projects, commercial, residential and industrial, to dedicate a portion of the land for green space or to pay the city a fee based on the value of the developer's land, a fee that would be available to purchase parkland

  10. University of Minnesota • Umore Park, Rosemount • Strategic Plan • University News

  11. Fragmentation - rural areas being subdivided by landowners – sprawl – not the sole process, however • There has been some agglomeration • At the margins of the “urban” area rural area annexed by municipality and urban services, especially sewers and transportation arteries, extended into non-urban areas and recreational areas established • In urban areas parcels owned by different entities acquired by a single entity – often the municipality or a corporation – and redeveloped

  12. Annexation Annexation – a particular type of agglomeration – the spatial extension of governments – usually municipalities – urban areas Growth of Chicago

  13. Fellman, 1957 Proudfoot, 1957

  14. Annexation Municipal Boundary Adjustments City limits: a report to the Minnesota Legislature on municipal boundary adjustments

  15. Redevelopment  • Any new construction on a site that has pre-existing uses on it • redevelopment of an industrial site into a mixed-use development • redevelopment of a block of townhouses into a large apartment building • Urban infill on vacant parcels that were previously used is also sometimes referred to as redevelopment • Redevelopment also refers to state and federal statutes giving cities and counties the authority to establish redevelopment agencies with the authority to attack problems of urban decay • The fundamental tools of a redevelopment agency include the authority • to acquire real property often using the power of eminent domain • to develop and sell property without bidding • to relocate persons who have interests in the property acquired by the agency • Often the financing of such operations might come from borrowing from federal or state governments and selling bonds and from Tax Increment Financing. • Redevelopment projects can be small or large ranging from a single building to entire new neighborhoods or "new town in town" projects

  16. Urban Renewal • Often initiated by the municipality - redevelopment of existing urban land – commercial industrial, residential real property owned by a variety of individuals, corporations, and government • Usually involves relocation of people and businesses, the demolition of structures, and the relocation of public infrastructure • Often involves the use of eminent domain - government purchase of property for public use - as a way to acquire private property for development • In some cases, renewal may result in urban sprawl and less congestion when areas of cities receive freeways and expressways • Urban renewal hailed as an economic engine and a reform mechanism • Also vilified as a mechanism for control • It may enhance existing communities, and in some cases result in the demolition of neighborhoods • Under various program many municipalities have renewed/revitalized their central business districts and gentrified their residential neighborhood • Urban Renewal in Chicago (Encyclopedia of Chicago)

  17. Twin Cities urban renewal, bulldozer-style (Star Tribune M16, 2009)

  18. Minneapolis • Minneapolis Department of Community Planning and Economic Development • Housing Development, Rehabilitation & Ownership • Minneapolis Corridor Housing Strategy • Planning, Zoning and Development Review • Current Projects • Heritage Preservation, Arts & Cultural Affairs • Reports and Presentations • Current Planning & Development Activities • City Financial Assistance • Bond Issues • Tax-Increment Financing

  19. Minneapolis Neighborhood Revitalization Program • In May 1988 a city task forces reported that physical revitalization of Minneapolis neighborhoods was badly needed and would cost over $3 billion • The Task Force urged the City to initiate a citywide planning effort with guidance from neighborhood residents. • In May 1989 an Implementation Committee proposed a revitalization program that would "protect" fundamentally sound neighborhoods, "revitalize" those showing signs of decline and "redirect" those with extensive problems • Later that year, a Technical Advisory Committee of key local government staff endorsed a process that encouraged the jurisdictions serving Minneapolis to work together to use existing resources to support addressing neighborhood priorities  • NRP Funding

  20. Minneapolis Public Housing Authority • Mission. “to promote and deliver quality, well-managed homes to a diverse low income population and, as a valued partner, contribute to the well-being of the individuals, families and community we serve“ • Agency responsible for administering public housing and Section 8 rent assistance programs for eligible individuals and families in Minneapolis • Manages nearly 6,000 public housing rental units that it owns and operates • 41 highrise apartment buildings comprising 4,958 units • 753 scattered-site (single-family) homes • 184 townhome units in the Glendale family development in Prospect Park • 312 public housing units that are part of mixed-finance developments throughout the Metropolitan area • Administers over 4,600 Section 8 Housing Choice Vouches for eligible program participants who use the assistance to rent units from private landlords

  21. Section 8 Program • The Minneapolis Public Housing Authority pays property owners a portion of the rent • Offers financial assistance to low income families for rental housing • Enables families the affordability to rent all housing types throughout the city and avoiding a concentration of assisted housing • The intent of the program is to lessen the burden on the family's budget for housing costs, helping them to better afford their rental payment • This results in more consistent, timely and full payments to owners • Additionally, periodic inspections of the unit helps to alert owners of required and/or recommended repairs

  22. Heritage Commons at Pond’s Edge - A 102-apartment, community for seniors on a prime site in the landmark 76-acre Heritage Park redevelopment. • $14.2 million HUD-funded project is the first senior housing the city has built since 1972 • In 2003 MPHA was awarded the HOPE VI grant by the U.S. Department of Housing and Urban Development to replace the BryantsHighrises, which were demolished in 1997 • Minneapolis Public Housing Authority projects – April 2010 • Minneapolis Public Housing puts $31.8 million in Recovery funding to use • Public Housing Agency Awarded $18 Million In ‘Recovery Act’ Funds For Major Housing Rehab Project • Audited Financial Statements for the Minneapolis Public Housing(2004)

  23. St. Paul • Housing and Redevelopment Authority (HRA) • undertakes housing, commercial and business development activities • authorizes the acquisition of real estate, housing and commercial loans and grants • issues bonds • Nearly all the activities of Planning and Economic Development (PED) are authorized by actions of the HRA • Planning • Housing • Economic Development • Financial Programs for Small Business • St Paul Budget

  24. City Projects • Minneapolis Star Tribune • <st paul hra> • <st paul planning and economic development) • St. Paul takes on developer role (Star Tribune Sept 8, 2010) • St. Paul's plans as developer questioned (Star Tribune Oct 20, 2010) • St. Paul Pioneer Press

  25. St Paul Port Authority • Established to administer the Port Authority of Saint Paul and develop marginal lands along the Mississippi River for business and industry, • Expanded to act as a Citywide development agency, which generates its own revenues and funds its own budget • MPR <st paul port authority> • Star Tribune <st paul port authority>

  26. St. Paul Budget Items

  27. St. Paul helped finance the construction of the Xcel Arena • Issued taxable municipal bonds that were payable from team lease revenues • Secured the bonds – guaranteed their payment by the City's 1/2 cent sales tax • Boon or boondoggle? Officials tout economic impact of Xcel Center (MPR 2003) • Target Field (Wikipedia) • Target Field/sales tax combo providing a financial home run for Hennepin County and Minneapolis (MinnPost.com) • Stadium financing: Why funding of the TCF Bank Stadium and Target Field are economic fallacies (Ian Van Deventer) • Lisa Goodman: Don't heap the Vikings on city's plate (Star Tribune Oct. 1, 2010)

  28. Tax Increment Financing (House) • Tax Increment Financing in Minnesota: An Overview • Office of the State Auditor TIF Division Newsletter • Tax Increment Financing: Its Effect on Local Government Finances (CURA Reporter) • Tax Increment Financing (TIF) Decertification (League of Minnesota Cities) • Minneapolis Tax Increment Policy (City)

  29. State Bonds Minnesota Management and Budget • Minnesota Municipal Bonds • Minnesota Municipal Bonds (Moody’s) • Minneapolis Common Bond Fund Revenue Program • City of Minneapolis 2005-2009 Capital Program • Minneapolis Goals, Budgets & Reports • City of St. Paul Office of Financial Services • Rebuild St. Paul

  30. U.S. Department of Housing and Urban Development • HUD in Minnesota • Economic Programs • Minneapolis Empowerment Zone

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