Loading...
1995 EDA Annual ReportCRYSTAL ECONOMIC DEVELOPMENT AUTHORITY 1995 ANNUAL REPORT In 1995, the Crystal Economic Development Authority (EDA) continued its efforts to increase the City's tax base and remove/reuse underutilized or blighted sites through revitalization and redevelopment in both commercial and residential areas. Several private redevelopment projects occurred in the Bass Lake Road/Becker Park area where the EDA had previously completed redevelopment activities. Through the Star City program, the EDA continued its efforts to improve the City's relationship with its business community. Tax increment funds were used by the EDA to facilitate commercial redevelopment of the following areas. - Substantial completion of a major redevelopment project at 36th Avenue and Highway 100 with the opening of the Cub Foods store in April. The final phase of this redevelopment project is underway with the construction of a 10,000 square foot Video Update store. - Acquisition of the seven properties at the northeast corner of Bass Lake Road and West Broadway; demolition of the improvements on this site is underway and was substantially completed by year-end. The property has been sold to the developer; plans for the project are currently being prepared. - The Wilshire Boulevard/County Road 81 area has long been targeted for redevelopment. Several years ago, a land use study was completed of the area to help shape and define redevelopment, both in terms of land use and streetscape improvements. Earlier this year, the EDA had the opportunity to acquire two core parcels in the area and so proceeded to acquire the old Suburban Motel and Arnold's Restaurant sites at 5454 and 5518 Lakeland Avenue. Staff is now pursuing developers to redevelop this site. As mentioned earlier, several private redevelopment projects were completed in the Bass Lake Road/West Broadway area. These include: the demolition of a vacant restaurant and construction of new Boston Market at 6800 Bass Lake Road; the demolition of the old Clark's restaurant and construction of a new Burger King at 5358 West Broadway; the redevelopment and expansion of the SuperAmerica at 5353 West Broadway; and the reuse and renovation of the old car wash into Christy Imports at 5272 West Broadway. Although the EDA was not directly involved in these projects, the projects mesh with the EDA's goals of expanding the community's tax base and redeveloping underutilized or blighted commercial areas. At the direction of the EDA, the EDA Advisory Commission continued its work on achieving Star City designation for the City. Early in the year, Crystal received notice that it had completed the necessary steps and Crystal is now a Star City. Staff is working to have Star City signs installed at various locations throughout the City while the EDA Advisory Commission continues its work with interviewing businesses and updating economic development work plans to maintain Star City designation. With respect to its efforts to improve the residential areas of the City, the EDA was active in pursuing new ways to fund its residential redevelopment and rehabilitation activities. The EDA and City requested and received special legislation to establish a Housing Replacement Program. The purpose of the program is to create another vehicle for generating some funds to offset the costs associated with residential redevelopment. The EDA and City approved the Program and four properties were included in the first phase of the program. To provide a source of funds for rehabilitation of EDA -owned residential properties, the EDA authorized participation in HUD's 203(k) mortgage program. Through this program, the EDA can receive a mortgage which is based on the value of a property after rehabilitation is completed so the proceeds are used to acquire and rehab a property. Once the rehab is complete, the mortgage can be assumed by a qualifying household and there are very low closing costs. Specific residential properties with which the EDA was involved include: - Sale of the residential properties at 3506 Adair, 3505 Zane and 6812 - 44th Avenue North through the New Crystal Home program. The values of the homes constructed on the Adair and Zane lots far exceeded the EDA's specifications. - Participated in the MHFA's Minnesota Cities Participation Program, the program for first-time homebuyers. As in past years, Crystal's allocation was depleted long before the program expired. - Acquired the blighted property at 3531 Zane Avenue North. This property was sold for rehab; rehab will include a major expansion of the existing structure. - Acquisition of the property at 5841 Oregon for rehabilitation; the 203(k) mortgage program will be used to finance the costs of rehab and HOME funds will be used for a second mortgage to make the home more affordable. This project is being completed by the EDA as a project of the Co-op NW Community Revitalization Corporation. - Completion of the rehab of the house at 3033 Kentucky. This project was done in conjunction with the Co-op NW Community Revitalization Corporation to try to increase opportunities for home ownership among low and moderate income households. This property is now being marketed to sell as soon as possible. - Authorized the acquisition of the property at 6308 - 43rd Avenue North using funds from the CDBG Scattered Site Acquisition program. Because funds for redevelopment are always in short supply, the EDA again requested the Council to levy for redevelopment activities. Funds from this levy are in a special redevelopment account to be used only for redevelopment activities, particularly in cases when no other funds are available. 1995 was the second year this account was funded by the special levy. In 1996, the EDA looks forward to continuing its efforts to pursue redevelopment of targeted commercial sites which are blighted or underutilized. Construction of _ a new commercial facility at the northeast corner of Bass Lake Road and West Broadway is expected to start in spring of 1996. It is hoped a developer will be secured so redevelopment of the County Road 81/Wilshire Boulevard area can proceed. Residential redevelopment and rehabilitation will continue to be a priority to stabilize and maintain neighborhoods as well as increase property values. Finally, the EDA will continue to look for new opportunities to pursue its goals to maintain and expand the community's tax base. The EDA will continue to rely on the work of the EDA Advisory Commission to provide direction and recommendations to improve the business climate in the community.