August 2015 West Loop from page 16
And there are also some grade issues.” But all of these can be overcome, she says. Asked what she thinks would drive developer interest in making the vision a reality, she believes placing a major league soccer stadium just north of the Farmers Market would be a “real catalyst and would call attention to the area in a major way.” She does not see tax increment financing as being essential to realizing UrbanWorks’ vision. “There has not been much demand for TIF in the North Loop, and we’re pretty stringent with TIF anyway, although we do make it available to reach some of our goals—affordable housing and job creation, primarily. But I don’t see us using TIF for high rise condos or apartments.” Councilman Yang takes a slightly different view. “It’s a really big idea,” he says. “The big challenge is funding it. I think it will take something of everything to make it happen. Even public investment might be necessary.” The soccer stadium may be the critical piece to getting it started and attracting the development community’s attention, he says. “A stadium there would make it a place where people want to live and develop. Minneapolis makes sense for the stadium. It’s a larger market than St. Paul, more people are interested in soccer, and combined with improvements to the Farmers Market, it might do the trick. But we need to do
Minnesota Real Estate Journal
something as a city to help make it happen.” Third Ward Councilmember Jacob Frey, who represents the neighboring North Loop as well as the Central Business District, says UrbanWorks vision for the West Loop “could be a wonderful economic opportunity, and a huge contributor to the city’s future success.” Describing the area as “a gully that has divided downtown from North Minneapolis for more than 50 years,” Frey says that during that time numerous efforts have been made to close the gap. “It’s time to try something new.” He says city involvement is crucial. “We have to incentivize development there with some concrete planning, and maybe more. Until the grid is re-established, we will continue to have a disjointed connection with the North side.” Frey is enthused that a working group is beginning to explore ways to locate a major league soccer stadium in the area. “With a soccer stadium, there would be more ‘there’ there in the West Loop,” he says, something that would draw attention and attract developers. Hennepin County Commissioner Peter McLaughlin calls it a “big, visionary plan—with lots of land that offers a lot of opportunities.” He thinks the Royalston Greenline transit corridor connection could be the catalyst. “LRT investment will be a critical factor,” he believes. “Right now the perception of the area around the Farmers Market is
that you can only get there by car and it’s a long way from everything. It’s really not, but that’s the perception, mainly because the connectors are not that good.’ “But with transit there will be thousands of people going through that neighborhood every day,” he says. “They’ll see the potential for themselves.” McLaughlin says key infrastructure investments will be needed, and cites the redevelopment of the Stone Arch Bridge area as an example. “It went through a similar transformation—no single big asset, but lots of land and a lot of opportunity, driven by investments in infrastructure.” “Also think about the North Loop,” he said,” and the area by Target Field. The ballpark literally expanded our downtown by creating a bridge over I394. That’s what has to happen here. It will take some investments in and around the Royalston stop: a better way to get to the Farmers Market from Target Field, a better way across Olson Highway, a new way and a friendlier pedestrian pathway to Glenwood Avenue—all of them designed to reach the area in a safer, more convenient way.” A soccer stadium, if it ends up being located on a West Loop site, “would be a big help,” he said, “the kind of very quick, catalytic investment that could trigger all kinds of activity.”
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Whether the major league soccer stadium actually ends up being the centerpiece of the West Loop remains a matter of conjecture. Minnesota United and the team’s owners are in discussions with the city regarding a property tax exemption for the facility, which they say is essential to making the $150 million stadium project financially viable. Recent meetings between the city and the team’s owners—Bill McGuire, the Pohlad family and the Taylor organization—are the first by the so-called “working group,” and dedicated only to an exchange of information. Mayor Betsy Hodges is opposed to the tax exemption, while the team is discussing a Midway site with the city of St. Paul that is already off the tax rolls, eliminating a major hurdle to building there. A major league soccer deadline for having a site that meets its criteria has already passed. Another is looming: the team’s option to buy the West Loop site from its current owner expires this fall, adding to the uncertainty. But whatever the outcome, Commissioner McLaughlin pretty much summarizes the sentiment of the elected officials we spoke to regarding UrbanWorks’ view of the development potential of the West Loop. “Looking to the future,” McLaughlin says, “we’re completely in tune with the vision that UrbanWorks has presented, with or without a soccer stadium.”