[Forwarded at the request of Basim Sabri - David Brauer, list manager,
Minneapolis-Issues]
Approximately 2 years ago, Walt Gutzmer and David Piehl came up with the
idea of Artist Housing on this site (on 2nd Ave. between Lake and 31st St.
along with several of the houses on the west side of 3rd Ave. S.) They
received $50,000 of public money through CNIA, which they had control of.
They selected Artspace to be the developer of the project. They then
conducted a survey amongst area artists, but failed to include any people of
African-American or Hispanic descent in their survey. Coincidentally, this
area is predominately comprised of African-American and Hispanic people. A
feasibility study was also done and results showed artist housing would not
be a favorable option for the area.
Since the artist housing would have sought several million dollars of public
money and much public support, David Piehl and his friends called for a
public meeting. The neighborhood clearly voted their idea down. I was
approached by outside developers who wished to purchase this property from
me so that they would be able to develop a hotel. At first, the idea of a
hotel did not appeal to me. However, after giving it serious consideration I
decided that if a hotel could be created in conjunction with some retail
shops on the first floor, it would fulfill and satisfy the needs of the
area. I would like to give a little background of my involvement and
interest in this particular area along Lake St. The International Bazaar
located on 3rd Ave. and Lake was vacant and boarded for over 10 years prior
to my purchasing the property approximately 3 years ago. I rehabilitated
that building withing 60 days of the purchase and within 3 months it was
fully occupied by small businesses, primarily Hispanic owners. The project
cost about half a million dollars and I received only $60,000 of public
money which was already pre-approved for that building before I purchased
it.
At 315 E. Lake St, which is the building adjacent to the International
Bazaar, I also purchased and rehabilitated it within 45 days of owning it.
It was fully occupied within 75 days after the rehabilitation. It now
contains a very popular Mexican restaurant and several other retail shops. I
think it is also worthy to note that this building was boarded for over 10
years before I purchased it from the federal government. I put $400,000 of
my own money into this building.
Another one of my developments along Lake St. is 2 blocks away on 4th and
Lake. Before I purchased this property, this building was in the process of
being developed by Parliament Companies and an organization formed by CNIA,
called CNDA. CNDA was created during the leadership of David Piehl and Walt
Gutzmer at CNIA. $1.3 million was put into this building which was never
completed by these people. In addition, there was poor electrical wiring,
poor plumbing and residential design windows which were not compatible to
the Lake St. integrity. Hennepin county repossessed the building, then
conveyed it the the MCDA. Despite efforts made by David Piehl and Walt
Gutzmer, the City Council decided to sell the building to me. Within 40 days
of purchasing the property, I completed the proper redevlopment of the
building and had it fully occupied. It currently contains 5 businesses and 6
apartments. I spent $250,000 of my own money in this property.
I have proven to myself that I have a very serious financial and community
interest in this Lake St. area. I have no intention to hurt my interest in
this area by developing a bad site or business. Otherwise, I would not
consider building a hotel with retail shops.
My vision of the development on 2nd and Lake is that:
a) it will be compatible to the surrounding area in outward appearance b)
its interior design will be built with quality products in a classy urban
style c) it will provide an expansion space for my current tenants at the
International Bazaar d) it will provide the only hotel within our community
e) the hotel will cater to community events and meetings f) the hotel will
cater to families/friends who have patients at the Childrens and Abbott
Hospital g) it will also cater to Wells Fargo clientele h) it will serve as
a connection point for travelers going to Wisconsin, Iowa, the Dakotas and
northern Minnesota who are driving along 35W or 94 and don't wish to venture
into downtown Minneapolis
There are several other benefits of adding the hotel to this location. It
will provide over 25 jobs. It will also cater to 12 additional businesses on
the first floor, some of which will be providing services to the
neighborhood. Unlike the artist housing idea, no public money will be
sought, no houses will be torn down and nobody's house will be threatened to
be taken from them.
With regards to the secrecy involving this project, there is absolutely
nothing secret about it. There have been no public meetings held until this
point. The meetings that have occurred so far have only been inquiries for
city requirements for this project.
It was suggested by David Piehl and his friends that we should build it in
an area that is not surrounded immediately by residents. They suggested
areas similar to Nicollet-Lake or Chicago-Lake. In other words, build it
somewhere that is not a block away from David Piehl's house. As far as I am
aware, there is residential immediately surrounding both Nicollet-Lake and
Chicago-Lake, just as there is on 2nd and Lake.
The hotel/retail is an excellent idea for the area. Let's not lower
ourselves into thinking that we are not a good enough area to have such a
development as David Piehl and Walt Gutzmer would like us to believe.
Remember that central neighborhood is demographically a majority of people
of color, but during the leadership of Walt Gutzmer and David Piehl, the
inclusion of people of color was suppressed. After being turned down by the
neighborhood on their project and being overtaken by a new CNIA board, David
Piehl and Walt Gutzmer became very resentful. The bottom line is that the
problem is not the presence of a hotel, but that it is more of personal
grudge and revenge toward someone who is making a positive difference in the
area.
My advice is that we should move forward for the betterment of this
neighborhood. I personally believe it is not the business of Brian Herron or
the mayor's office or any other city council member to interfere in what is
developed on my land (granted that it is permittable), and how I should be
investing my own money. In the future, I will come before the neighborhood
and city council for a slight zoning change. If the public feels that it is
a worthwhile project, they will support it. Further, it would be the
responsibility of the city council members to follow the wishes of the
neighborhood. In reality, tomorrow I could build a retail mall which would
not require any zoning changes. Another possibility I have been lobbied to
consider is low-income rental units.
Basim Sabri
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