I am passing along an excerpt from my veto letter for Karmel Plaza. The
net effect of the veto will be to send this back to the council for more
discussion, which I hope will focus on two important goals this project
delivers: creating affordable housing options along transit corridors
and increasing home ownership among communities of color: 


 


September 9, 2004


 

 

Minneapolis City Council

Paul Ostrow, President

350 South Fifth Street

Minneapolis, MN 55415

 

 

Council President Paul Ostrow and Members of the City Council,

 

This is to inform you that I have vetoed two actions by the Council:
the denial to add the Industrial Living Overlay District to permit a
mixed-use, light industrial development with retail, restaurant,
dwelling units above and below grade parking at 206 Elroy Street and
2920 - 28 Pillsbury Avenue; and granting the appeal of the Planning
Commission decision regarding the conditional use permit and site plan
for this same property.  

 

The Planning Commission and City staff both recommended that the City
move forward with this mixed-use project.  The project will have 33,000
square feet of commercial space, more than 170 parking spaces both above
and below-grade, and will increase our tax base over the previously
proposed uses of this site.  

 

My veto allows us to continue to discuss ways to make this project
successful.  That is important because this project represents many of
the values I believe we should be bringing to discussions of development
in Minneapolis and the region.  It fosters transit-oriented development
and helps close the significant homeownership gap for communities of
color.

 

On the first point: The area between the Midtown Greenway and Lake
Street offers what I believe to be one of the best opportunities we have
in the city for transit-oriented development.  This is why I have
supported increased housing development along the corridor and why I am
a strong advocate of increased transit options in the area, including
the proposed street car in the corridor itself and a bus rapid-transit
system intended to intersect Lake Street.  The proposed project will
further these goals at a key site that has had neither transit
orientation nor Greenway orientation.

 

I am aware of the fact that the Midtown Greenway Association has raised
some questions about the project's siting in relation to the Greenway
and believe my action can provide the opportunity to work with the group
and the developer to improve this.

On the second point: Affordable homeownership is an important goal for
the city, especially for communities of color, and even more important
for new arrival communities. This challenge is most acute for immigrants
whose faith prohibits them from paying interest on loans. I am obviously
aware of the fact that developments cannot be built specifically for one
population, but substantial work is taking place all across the country
on marketing and mortgage programs like this that focus on helping
specific communities of color. Toward that end I strongly applaud the
developer's stated intention to work with the Islamic community to
create financing options to help them own their own units in this
project.  

 

My action sends a strong signal to the development community that we put
a high value on closing the homeownership gap for communities of color
and are willing to encourage any developer willing to make the extra
effort to ensure all residents of our city have an opportunity to build
equity. I also want to make it very clear that my continued support for
this project depends in large part on the developer making an even
stronger commitment to this goal than we currently see, and ensuring
that this program is offered in the most equitable way. 

 

I have used my veto very rarely and take this action only because I
place such a high value on the goals of creating walkable,
transit-oriented neighborhoods, and increasing homeownership for
communities of color. I know these are goals that many of you share,
including those of you who have not supported the project. You have
raised other concerns that are important and I will continue to work
with all of you to find a way we can address these challenges together.

 

I look forward to working with members of the Council, the neighborhood,
and developer as you reconsider this important project, which will
create homeownership opportunities between the Midtown Greenway and Lake
Street and increase the tax base of the city.

 

Sincerely,

 

R.T. Rybak

Mayor

 

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