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minnesota.uli.org 10 • Land value and the success of existing retail. The relative success of the existing shopping centers and the price of the underlying land may deter developers because it will likely be expensive to acquire the parcels. The existing uses are in something of a difficult middle ground–neither wildly successful with the highest and best land use nor dilapidated and blighted. • Tax Increment Financing may not be achievable. TIF districts are popular tools for enabling redevelopment by making it less costly to do so. However, the relative success and stability of the study area makes it unlikely that existing structures would qualify for a “substandard” finding. Question 2 WHAT KINDS AND LEVEL OF SUPPORT WILL PROSPECTIVE DEVELOPERS ANTICIPATE FROM THE CITY FOR A REDEVELOPMENT PROJECT IN THE STUDY AREA? • Financial: The city should anticipate requests for financial participation for any multifamily proposal whether affordable, mixed income or market rate due to land prices and redevelopment costs. Very few submarkets in the metro area can support market rate development outright because rents are not high enough to cover redevelopment costs. As outlined above in the “disadvantages” section, a TIF finding of “substandard” for the existing commercial structures is unlikely. However, a TIF housing district may be possible. Tax abatement for desirable proposals should also be considered. City-owned land provided to developers for low or no cost can also constitute a form of financial contribution. • Policy. Beyond financial support, the city can help facilitate development through policy. Assisting with land assembly by acquiring parcels as they become available, creating an efficient redevelopment process, and changing land use regulations that conform with desired city uses ahead of time will entice developers. • Vision and leadership. The panel anticipates that the bulk of redevelopment may still be years away, owing to the stability of the existing commercial structures and businesses. Engaging with the community ahead of time and creating a clear vision of what the Gateway South District will help developers see where and how they can plug into that vision. It also helps with buy-in from residents by giving them the opportunity to shape the district ahead of time rather than in reaction to specific proposals. Question 3 WHAT CAN THE CITY DO PROSPECTIVELY TO POSITION THE STUDY AREA FOR REDEVELOPMENT? • Create a strong vision that is shared with and supported by the community. Spend time figuring out what both the City and its residents want, and then promote that vision. Developers will appreciate knowing what the community wants to see, and having up front agreement about what’s anticipated can reduce resistance to change from residents. • Make proactive policy changes and decisions to support the vision where necessary. If zoning or land use policy changes will be necessary, make them ahead of time if possible. This can help reduce the complexity of possible projects as they come forward. It is similarly valuable to be upfront with the development community about what types of financial support the City will consider for projects that achieve their vision and goals. “Every market rate developer is asking for subsidy unless you're getting $2/square foot in rent.” Stacie Kvilvang, Ehlers