1999 EDA Annual ReportCRYSTAL ECONOMIC DEVELOPMENT AUTHORITY
1999 ANNUAL REPORT
Throughout 1999, the Economic Development Authority (EDA) continued its activities to
maintain and improve the community's tax base, both commercial and residential.
Maintaining and improving the community's commercial tax base generally involves
redeveloping underutilized or blighted commercial sites. For residential property, it
generally involves rehabilitating or replacing substandard housing, with occasional
multi -family construction or redevelopment as those opportunities arise.
1. Commercial Redevelopment
Specific commercial redevelopment activities in 1999 included completion of the
92,000 sq. ft. Industrial Equities office warehouse building on the County Road
81 redevelopment site (formerly the Paddock, Arnold's, Suburban Motel, K
Wong's, and three adjacent residential properties). As of the end of 1999, the
building is approximately 45% leased with two tenants: Advantage Graphics and
Omnicare. The only site work remaining is some additional landscaping along
the rear of the site, between the screening fence and Zane Avenue I Zane Place.
Final valuation of the K Wong's property is pending the commissioners' hearing
in February 2000.
2. Single -Family Redevelopment and Rehabilitation
In terms of maintaining and improving the City's housing stock, the EDA has long
been involved in acquiring blighted single family homes, clearing the properties
and making the lots available for new residential development. In recent years,
the EDA has concentrated on the development of move -up housing opportunities
in the City, to increase the variety of housing available in the community. 1999
was an unusually active year with single-family redevelopment and rehabilitation
activities including the following:
❑ Completion of renovations to 5331 Corvallis Avenue North by the private
party who in 1998 purchased the house from the EDA;
❑ Completion of renovations to and sale of 6306 61St Avenue North, which sold
for $116,500 in July;
❑ Construction of a new single-family house at 4342 Adair Avenue North, which
sold for $140,000 in September;
❑ Construction of a new single-family house at 5916 45th Avenue North, which
sold for $127,000 in September;
❑ Construction of a new single-family house at 4343 Zane Avenue North, which
sold for $150,000 in September;
❑ Construction of a new single-family house at 4305 Zane Avenue North, which
sold for $150,000 in November;
❑ Construction of a new single-family house at 3551 Lee Avenue North
(formerly 4509 36th), which is currently listed for sale at $152,900;
❑ Construction of a new single-family house at 3513 Kyle Avenue North, which
is currently listed for sale at $144,900;
❑ Sale of 3456 Yates (formerly part of 5719 35th) for a new house currently
under construction (assessor's estimated value = $164,000); and
❑ Sale of 3450 Yates (formerly part of 5719 35th) for a new house to be
constructed in 2000 (assessor's estimated value = $187,000).
3. Multi -Family Housing
The EDA has entered into a development agreement with Lang Nelson providing
for the use of Tax Increment Financing to assist with the rehabilitation and
conversion to senior housing of the Lamplighter apartments (now called The
Heathers), and the construction of a 78 -unit assisted living facility north of the
apartment complex. This also involves the acquisition and demolition of the
houses at 2956 and 3006 Douglas, which was completed in late 1999.
Staff continued to explore redevelopment possibilities for rental properties in
need of replacement or substantial rehabilitation.
4. Assistance for Homeowners / Potential Homeowners
MHFA's first time homebuyers program, the Community Fix -Up Fund and a
variety of other home ownership and improvement assistance programs
continued to be available to Crystal homeowners. The City also continued its
contract with the Northwest Housing Resource Center, operated by the Greater
Minneapolis Metropolitan Housing Corporation, to provide technical assistance
to Crystal residents.
5. Enterprise Facilitation
Crystal and New Hope have partnered in an Enterprise Facilitation pilot project
which offers an alternative approach to economic development. The program
offers advice, guidance and technical assistance to entrepreneurs and start-up
businesses in both communities. The program began operating in 1998 with the
selection of Mary Beth Moze to provide these services. It is hoped that this will
Delp diversify our community's economic base and encourage the creation of
new business opportunities in Crystal.
6. 42"d Avenue Streetscape
The City was awarded a grant from the Liveable Communities program to
analyze the neighborhood north of 42nd Avenue and east of Douglas Drive, to
include a redevelopment plan for two residential blocks and to explore
possibilities for the 42nd Avenue commercial area. The planning project was
completed in summer 1999, and staff has been working on refining cost
estimates and pursuing potential funding sources for a possible 42"d Avenue
streetscape project. More activity on this project is expected in 2000.
7. Annual EDA Levy
As in the past four years, the EDA recommended and the Council approved an
EDA levy to provide additional funding for redevelopment activities.
In 2000, the EDA looks forward to continuing to work on residential and commercial
redevelopment to improve the quality of life in the City of Crystal.