Real Estate & Construction Blog

Legislative and Judicial Updates

Still No Deal after Second Special Session; Legislature Looks Towards August Primary

This week Margaret Vesel and Matthew Bergeron recap the Minnesota legislature‘s second special session and the ongoing negotiations over a capital investment bill, a tax bill, and a supplemental appropriations package. They also turn their attention towards the August 11 primary election and discuss a number of key races to watch. Our Team The Larkin Hoffman Government Relations team is engaged daily with key state government decision-makers to gain assistance and remove barriers critical to our clients’ ongoing operations, and perhaps even their survival. We are available to assist you on issues ranging from influencing the governor’s Executive Orders to requesting waivers from state government requirements to revising legislative proposals that will become law.

August 3, 2020

Legislative and Judicial Updates

A Summer of Special Sessions: Is July’s Special Session the Last Chance for a Deal on Bonding, COVID-19 Relief & Police Reform?

Margaret Vesel and Matthew Bergeron recap the Minnesota Legislature’s week-long June special session and preview the special session beginning on July 13, 2020. They discuss the ongoing negotiations over law enforcement reform, capital investment, and bonding and examine how the seemingly unrelated issues are interconnected when it comes to finding a “comprehensive deal”. Our Team The Larkin Hoffman Government Relations team is engaged daily with key state government decision-makers to gain assistance and remove barriers critical to our clients’ ongoing operations, and perhaps even their survival. We are available to assist you on issues ranging from influencing the governor’s Executive Orders to requesting waivers from state government requirements to revising legislative proposals that will become law.

July 10, 2020

Legislative and Judicial Updates

Larkin Hoffman’s Government Relations Team Launches Podcast Series

Introducing our new CapWatch podcast series which is an extension of the Larkin Hoffman Podcast Briefing series. In this series, we discuss the end of Minnesota’s 2020 legislative session and the special session in June. The CapWatch podcasts cover the political dynamics at the Minnesota Capitol and give an overview of the policy and spending issues being discussed by Minnesota lawmakers. In our most recent podcast, Minnesota’s Special Session Begins Without an End in Sight,we discuss the start of the Minnesota Legislature’s unique special session, including legislative votes to end Gov. Walz’s COVID-19 peacetime emergency and the myriad of policy and spending issues to be addressed in the coming weeks. This post will be updated throughout the special session with news and future podcasts.

June 19, 2020

Legislative and Judicial Updates

2020 Minnesota Legislative Session: Public Infrastructure & Housing to Headline Discussion

On Tuesday, February 11, 2020, the Minnesota Legislature returned to the Capitol for the start of the 2020 legislative session. Having passed a biennial state budget in 2019, this year’s “short session” will run until May 18, 2020. With the only politically divided state legislature in the nation and all 201 legislators on the ballot this November, most Capitol insiders don’t expect much in the way of significant legislation—apart from a statewide infrastructure proposal—to become law this year. The slate was set in early January when Gov. Tim Walz (DFL) released an ambitious capital investment proposal, calling for approximately $2 billion in public works projects. The proposal is intended to utilize the state’s strong bond rating and low-interest rates to address the state’s aging infrastructure and create shovel-ready employment opportunities in the coming years when many economic experts are predicting significant economic slowdowns. The governor’s proposal was greeted with enthusiasm from legislative Democrats, including leadership in the House of Representatives, while Republicans, including Senate Majority Leader Paul Gazelka (R-Nisswa), urged caution that the state not over-extend itself and take on excessive debt. A central piece of the governor’s capital investment proposal was the calling for $276 million to develop affordable housing options. This included $200 million in housing infrastructure bonds to support the construction of affordable housing units and permanent housing for individuals experiencing homelessness as well as $60 million to preserve, repair and upgrade existing public housing complexes, and $10.7 million for maintenance and repairs to the state’s 58 veterans’ homes. While the role of the state in supplying affordable housing options is likely to be debated throughout the session, issues related to housing will also likely extend well beyond state funding. In recent years, industry and advocacy organizations have brought a variety of proposals to the state legislature intended to examine the impact that state, municipal, and other local government regulations have on the cost of new housing construction. This session, legislators are likely to examine proposals related to local zoning and density, development permitting and fees, and local design and aesthetic mandates as they look to bring down the cost of new housing construction and increase the stock of market-rate housing in the state. Legislators will also focus on a variety of workforce-related proposals intended to increase and diversify participation in the building trades. While most of these proposals are likely to be multi-year initiatives, the focus on housing affordability and workforce are likely to be central to most land use and development discussions at the Capitol.

February 14, 2020

Planning and Development

Redevelopment and Vacancies Lead St. Paul to Examine the Grand Avenue Business District

Over the last year and a half, St. Paul civic and business leaders have frequently commented on a growing number of commercial vacancies along the Grand Avenue business district as a number of longtime restaurants and retail establishments have either closed or relocated. The loss of high-profile businesses, particularly near Victoria Crossing, has led many to question the longer-term outlook for the district. Meanwhile, a number of new restaurants and retail establishments have opened along Snelling Avenue following the completion of a number of high-profile redevelopment projects. This makes St. Paul’s Grand Avenue something of an interesting case study for existing commercial districts as neighborhoods evolve and the desire for increased density spurs new construction. In an attempt to respond to the increase in commercial vacancies, representatives of the Summit Hill Association (SHA), the Macalester Groveland Community Council (MGCC) and the Grand Avenue Business Association (GABA) came together to launch “The Future is Grand” Task Force this past March. Their stated goal was the identification of “existing barriers and opportunities for Grand Avenue visitors, residents and businesses.” Having started by soliciting feedback from over 60 property owners and businesses along Grand Avenue, in July the Task Force turned its attention to soliciting public input via in-person interviews, online surveys and telephone conversations. In mid-November, the Task Force released a “Consensus Document” which listed six “primary recommendations” for the City to consider. Those recommendations included: Improve pedestrian experience of the historic and vital corridor through art, signage, retail beautification, and transit. Focus on priority maintenance that improves accessibility, parking, and appeal of public spaces. Protect livelihoods of our small business base and commercial corridors by slowing the rate of growth of taxes, fees, and other costs of doing business. Foster collaboration of Grand Avenue stakeholders on funds for the Grand Avenue commercial corridor to engage the community and plan for future density, open space, residential, and commercial areas. Convene local thought leaders and innovators to examine creative and experimental approaches to generate new sources of city revenue–to enable investment in infrastructure, multi-modal accessibility, and enhanced quality of life. Develop innovative solutions to filling vacant storefronts through short-term tax relief, flexible incentives & grants, pilot programs, and active engagement with property owners. The Task Force is expected to issue final recommendations to the St. Paul City Council in a formal letter later this year or early 2020. As both Minneapolis and St. Paul look towards how to best increase density and support the development of more transit-oriented and pedestrian-friendly neighborhoods, commercial districts like St. Paul’s Grand Avenue will continue to find themselves needing to evolve and adapt. Stakeholder engagement processes, like the “The Future Is Grand” Task Force, may become more common. However, it remains to be seen to what extent the stakeholders at the table embrace the coming transitions to their business districts or whether they focus on tenant/consumer attraction and preservation.

December 11, 2019

Local Government

Upcoming Ramsey County Elections Could Have a HUGE Impact on Local Development

Politics can be loud. With all the national media and punditry focused on the 2020 presidential primary, it would be easy to miss the significant local races on the ballot this November. However, with economic markers pointing towards a potential slowdown or recession, having a strong understanding of the local political landscape is essential for real estate and housing developers. For example, three of the largest redevelopment projects in recent Twin Cities history are currently located in Ramsey County. They include the following project: Twin Cities Army Ammunition Plant (427 acres)—The most contentious of the three developments, by far, is the Twins Cities Army Ammunition Plant, or “TCAAP,” site in Arden Hills, Minnesota. Currently known as the “Rice Creek Commons,” negotiations over the development of the county-owned site have broken down as city and county officials have struggled to see eye-to-eye on issues such as housing density and the inclusion of affordable housing. Ford Plant (135 acres)—This is the former site of the Ford Motor Company assembly plant located in the Highland Park neighborhood of Saint Paul, Minnesota. While the St. Paul City Council adopted the Ford Site Master Plan in 2017, there have been numerous efforts to revise or modify development plans since then (most recently in April, 2019) and, with the extended development timeline for a project this size, those efforts will continue to come before the council. Hillcrest Golf Course (112 acre)—Having ceased operations as a private golf course in 2017, the Hillcrest site is located on St. Paul’s east side. In recent months the St. Paul Port Authority has entered into development negotiations with the land owner and even gone as far as requesting a $10 million bond sale to facilitate redevelopment. With significant issues for all three projects remaining to be settled, there are a number of key local elections worth noting on the ballot this November. Ramsey County Commissioner (District 1): Following Commissioner Blake Huffman’s sudden resignation last May, a special election was called to fill the remaining year of his term. While the office of county commissioner is non-partisan, the Ramsey County Board is largely made up of commissioners with a history of endorsements from their local Democratic Farmer-Labor Party (“DFL”) units. Huffman was a notable exception, having previously held himself out as a Republican candidate for governor. Therefore, while the outcome of the election will have minimal impact on the political make-up of the Ramsey County Board, District 1 covers the TCAAP site and will place Huffman’s successor in an important post as parties look to break the current contentious gridlock. Following a primary that saw a slate of nine candidates reduced to two, the November general election will pit former Republican State Representative Randy Jessup against the DFL-endorsed political newcomer, Nicole Frethem. Jessup has strong name recognition in the generally right-of-center district having run for the Minnesota House of Representatives in 2014, 2016, and 2018 and having served in the House from 2015-16. However, Frethem was the top vote-getter in the August primary, coming away with a 41%-34.4% advantage. Turnout will be key come November as Fretham, an outspoken progressive, looks to flip the most conservative district in the county. The eventual winner will have to face the voters again in 2020. St. Paul City Council (Ward 6):Longtime East Side City Councilmember Dan Bostrom surprised many when, in late December 2018, he announced his resignation. Many people thought Bostrom, 78, might retire instead of seeking re-election, and potential candidates were already lining up to seek the seat, but his decision to vacate the seat he had held since 1996 shook up the campaign landscape significantly. Following a series of public interviews, Mayor Melvin Carter and the St. Paul City Council appointed Kassim Busuri, an educator and youth worker, to serve the remainder of his term, making Busuri the first Somali-American to serve on the city council. However, Busuri angered many, including a number of his city council colleagues, when he went back on a commitment he made during the appointment process to not seek the seat in the November general election. His campaign came under additional scrutiny in June when he was accused of making anti-gay posts on Facebook. Busuri now faces five challengers in an open ranked choice voting ballot. Among the five challengers, the two who stand out as the most formidable are Nelsie Yang, an economic justice organizer for the progressive community organizing group, TakeAction Minnesota, and Terri Thao, a member of the St. Paul Planning Commission and former chair of the board for the East Side Neighborhood Development ‎Company. The November ballot will also include small business owner Alexander Bourne, activist Greg Copeland, and housing advocate Danielle Swift. Ms. Yang’s campaign touts a number of significant political endorsements, including Women Winning, the St. Paul Regional Labor Federation, Take Action Minnesota, Our Revolution, and OutFront Minnesota. Meanwhile, Ms. Thao has been endorsed by Ramsey County Board Chair Jim McDonough, the St. Paul Area Chamber of Commerce, and multiple state representatives. The large number of candidates in the field make it difficult to predict who will ultimately represent the East Side, but it is clear that the eventual winner will likely have a significant voice in the Hillcrest development. St. Paul City Council (Ward 1): One of the other hotly contested city council seats to watch is in Ward 1, which includes the Frogtown, Summit-University, North End, Lexington-Hamline and Snelling-Hamline neighborhoods. Ward 1 has seen significant new investment in recent years with the opening of the Green Line LRT as well as the construction of Allianz Field. However, this race is worth noting for its potential impact on future developments, both along the University corridor as well as throughout other parts of St. Paul. The race pits incumbent City Councilmember and 2017 mayoral candidate, Dai Thao, against two well-organized challengers. Thao’s political career and tenure on the council has been tumultuous. An outspoken critic on issues of police office accountability, Thao has found himself the subject of more than one investigation into his conduct while in office—including being acquitted in late 2018 of multiple charges related to an allegation that he illegally assisted a voter in marking their ballot. In April, DFL delegates endorsed Thao’s campaign for re-election, though that too was not without controversy. Thao is being challenged by Anika Bowie, the vice president of the Minneapolis NAACP, and former staffer to Congresswoman Betty McCollum, Liz De La Torre. Bowie’s campaign touts her strong ties to the community (she’s a fifth-generation resident of the Rondo neighborhood) as well as her service on the St. Paul Police Civilian Internal Affairs Review Commission. She has also received a slew of progressive endorsements, including Women Winning, Our Revolution, and OutFront Minnesota. De La Torre’s campaign has focused on her career of service, including her work with Congresswoman McCollum as well as current work with victims of sexual violence. She has been endorsed by AFSCME Council 5, the Stonewall DFL, and Ramsey County Chair Jim McDonough. With ranked-choice voting, it is difficult to handicap the Ward 1 race, but seeing as how Councilmember Thao currently serves as one of two members of the city council on the St. Paul Port Authority, his re-election could have significant impacts on multiple redevelopment projects in the city.

September 11, 2019

Local Government

A St. Paul Neighborhood Continues to Struggle to Balance Reinvestment with Preservation

Stretching from the Cathedral of St. Paul to the Mississippi River, St. Paul’s Summit Avenue is one of the premier stretches of Victorian homes in the United States. Throughout the last four decades, the neighborhood has been the target of investment and restoration that has solidified Summit Avenue as an iconic part of Minnesota’s Capitol City. However, just blocks south of Summit Avenue, in a neighborhood colloquially known as “Tangletown,” residents continue to struggle with how to balance investment and preservation. With meandering side-streets that deviate farther from the traditional grid than even the most infamous of St. Paul avenues, Tangletown exists as something of a micro-community within the Mac-Groveland neighborhood. In recent years, the broader neighborhood has repeatedly expressed concern with a series of “tear downs” which made way for the construction of larger homes. In response to neighborhood pressure, the St. Paul City Council adopted new residential design standards in 2015. A large number of the new requirements only applied to Planning Districts 14 and 15 (largely the Mac-Groveland and Highland Park neighborhoods). The new design standards regulate building heights at the side-yard setback, sidewall articulation, and maximum lot coverage. However, in recent months, the residents of Tangletown have again expressed concern that existing zoning and design standards are insufficient and that the St. Paul Board of Zoning Appeals grants too many variances. As a result, last month St. Paul City Councilmember Chris Tolbert introduced and the council passed, a resolution asking the St. Paul Planning Commission to study the creation of a new overlay or conservation district just for the Tangletown area. While there is no timeline for the St. Paul Planning Commission study, the ongoing burdens placed on the city’s Planning and Economic Development Department by the Ford Plant redevelopment mean any recommendation is unlikely to reach the Planning Commission before mid-2018 at the earliest. While consideration of specialized residential design standards is not unique to St. Paul and historic or preservation districts are a common tool used by municipalities to protect the identity of a neighborhood, a Tangletown-specific overlay district raises a number of interesting issues. First of all, Minnesota statutes section 462.357 – which provides municipalities their statutory authority to promulgate zoning restrictions – ties said authority to “the purpose of promoting the public health, safety, morals, and general welfare.” Open questions remain as to how design standards for a neighborhood, only marginally distinguishable from its surrounding area, would promote the public health, safety, morals, and general welfare. Additionally, the statute requires that “regulations shall be uniform for each class or kind of buildings, structures, or land and for each class or kind of use throughout such district.” While the 2015 standards encompassed all of Planning Districts 14 and 15, a Tangletown-overlay likely would cover a much smaller area. Going forward, the St. Paul Planning Commission and City Council will have to weigh the value of responding to the neighborhood’s desire with the possibility of creating a cumbersome patchwork of building regulations.

September 6, 2017

Local Government

Concerns with Density Remain as Plans for St. Paul’s Ford Plant Advance

On July 28, the St. Paul Planning Commission voted unanimously to recommend a redevelopment plan for the 135-acre Ford Motor Company property in the Highland Park Neighborhood of St. Paul. Nearly a decade in the making, the plan would provide the zoning and land use guidance necessary for any master developer seeking to redevelop the site. Originally constructed in 1912, the Ford property became available for redevelopment when the Twin Cities Assembly Plant closed in 2011. The proposed redevelopment plan would divide the Ford property into six districts and allow for increased height and density in each district moving east away from the Minnesota River. For example, along the western end of the property, residential development (including townhomes and multi-family buildings) would be limited by a maximum height of 48 feet. Along the eastern end of the property, near existing commercial development, the plan allows for buildings between four and 10 stories tall. Planning Commissioner Kris Fredson successfully amended the plan to allow for a slight increase in density along the river in an attempt to decrease the pressure for high-density development in other parts of the site. Earlier versions of the plan called for “mansion-style development” overlooking the river which would have reflected similar single-family residential communities north of the property along Mississippi River Boulevard. While the plan was approved unanimously, it is far from noncontroversial. The Planning Commission received approximately 400 written comments and nearly 50 people testified at a public hearing in early July. The majority of consternation surrounding the plan – including the concerns of new community organizations like Neighbors for a Livable St. Paul – focuses on the proposed density and the number of new residents expected. City planners expect somewhere between 2,400 and 4,000 new residential units and as many as 7,000 new residents in the area in the next 10-15 years. Critics of the plan have repeatedly expressed concern over increased traffic and congestion. That being said, other segments of the community – including members of the community group Sustain Ward Three – see the increased density as essential to maximizing the taxable value of the property while also creating the kind of pedestrian and bicycle-friendly community new residents are seeking. The St. Paul City Council is expected to hold a public hearing this fall prior to taking up and potentially voting to approve the redevelopment plan. A formal decision on zoning and land use is likely the last obstacle to the Ford Motor Company’s sale of the property to a master developer. With an estimated $1.3 billion in potential investment in the site pending, the development plan will likely loom large on the City Council’s fall agenda. Controversy over the proposed redevelopment plan could also be a factor in St. Paul’s mayoral election this November as at least five candidates vie to replace Mayor Chris Coleman, who is stepping down to run for governor after 12 years in office.

August 24, 2017

Local Government

How Tall Is Too Tall? A St. Paul Neighborhood Ponders Zoning Changes

As new housing options and a variety of transit oriented developments pop up throughout the Twin Cities, many communities are struggling to balance their desire for walkable neighborhoods and easy access to amenities with the increased density and population growth that usually comes as part of such development. A primary example of that back-and-forth struggle can be seen along Snelling Avenue in Saint Paul. Snelling Avenue has long been a major arterial street in the Capitol city. Stretching from Rosedale Mall to the north, past the State Fairgrounds, Hamline University, and Macalester College, before ending in West 7th Street on the south, Snelling Avenue provides access to Interstate 94 and the Minneapolis/St. Paul International Airport as well as the University Avenue and Grand Avenue commercial districts. However, with the opening of Metro Transit’s Bus Rapid Transit (BRT) A-Line, there has been significant conversation about whether the city should allow larger scale developments along the Snelling Avenue corridor. In April 2017, the St. Paul Planning Commission released the Snelling Avenue South Zoning Study and began a public dialogue regarding potential rezoning of a number of properties along Snelling Avenue between Interstate 94 and Ford Parkway. Nearly two years in the making, the Zoning Study attracted significant attention and the input of individual residents as well as the Highland Park, Macalester/Groveland, and Union Park District Councils. The Planning Commission held a public hearing on May 19, 2017 to solicit comments, and the combined Comprehensive and Neighborhood Planning Committees reviewed those comments at a meeting on June 13, 2017 before forwarding a revised rezoning proposal to the full Planning Commission on June 30. The proposal would rezone a number of residential, commercial, and industrial properties to “Traditional neighborhoods” (TN) in an attempt to promote more dense mixed-use development along the transit corridor. The St. Paul City Code describes TN districts as being “intended to foster the development and growth of compact, pedestrian-oriented urban villages.” The TN districts are also “intended to encourage a compatible mix of commercial and residential uses within buildings, sites and blocks; new development in proximity to major transit streets and corridors; and additional choices in housing.” However, those “pedestrian-oriented urban villages” are not without their detractors. Many of the comments received by the Planning Commission expressed concern as to the impact increased building height and density would have on nearby single family homes. Reduced parking access, increased vehicle traffic, shade and privacy concerns, and pedestrian safety were all cited as potential negative side-effects of the rezoning plan. One of the major points of contention centers on building height, with particular concern from neighborhood groups focused on buildings of five or more stories. In response to those concerns, the Planning Commission has scaled back portions of the proposal, including the rezoning of properties near the intersection of Snelling and St. Clair Avenues. The city council is expected to take up the rezoning proposal sometime in August. Print: Email this postTweet this postLike this postShare this post on LinkedIn

July 11, 2017

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Matthew W. Bergeron

Still No Deal after Second Special Session; Legislature Looks Towards August Primary

A Summer of Special Sessions: Is July’s Special Session the Last Chance for a Deal on Bonding, COVID-19 Relief & Police Reform?

Larkin Hoffman’s Government Relations Team Launches Podcast Series

2020 Minnesota Legislative Session: Public Infrastructure & Housing to Headline Discussion

Redevelopment and Vacancies Lead St. Paul to Examine the Grand Avenue Business District

Upcoming Ramsey County Elections Could Have a HUGE Impact on Local Development

A St. Paul Neighborhood Continues to Struggle to Balance Reinvestment with Preservation

Concerns with Density Remain as Plans for St. Paul’s Ford Plant Advance

How Tall Is Too Tall? A St. Paul Neighborhood Ponders Zoning Changes

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