The City owns a vacant 1.5 acre development parcel at 2600 Minnehaha Avenue. It is the last redevelopment site in the Seward Place Industrial Business Park. In 2013, the City completed pollution remediation of the property, with grants from the MN Department of Employment and Economic Development (DEED) and Hennepin County. CPED issued a Request for Proposals (RFP) in February 2014. Development goals for the site were industrial job creation, development of about 24,000 square feet, a new building consistent with the surrounding industrial business park, and sustainable site design, materials and building systems. The City did not receive a proposal responsive to the development goals of the RFP at that time.

CPED continues to market the site for light industrial redevelopment, and receives periodic inquiries from brokers, interested parties and potential redevelopers seeking to acquire the property for various development concepts. However, most inquiries have proposed land uses that are inconsistent with the current development goals for the property, including proposals for developing public markets and other commercial land uses on the property.

Cooperative public markets, with smaller spaces, less expensive tenant improvements, flexible leasing options, and opportunities for private and community wealth creation are an important place for community building, new business opportunities and retail spaces to support small businesses and immigrant entrepreneurs that provide jobs, retail goods and community services.

It has been proposed that CPED conduct a feasibility assessment for issuing a development solicitation for locating a cooperative public market on this property. Approval of this report would direct CPED staff to conduct a feasibility analysis for this land use and development concept.

This feasibility analysis will include the review of:

• Established City land use policies and zoning regulations for this property;
• City property disposition procedures and objectives for development solicitation;
• Impacts on adjacent properties, including traffic and off-site parking impacts from commercial development at this location;
• Potential employment, property tax, and small business impacts of cooperative public market development; and
• Financial feasibility, including cooperative building ownership and development model and the impact of City pollution cleanup grants.

The feasibility assessment will identify both the opportunities and potential barriers associated with issuing an RFP for a cooperative public market at 2600 Minnehaha Ave, including any options for policy changes that might be required.

If the feasibility analysis is negative, or a request for proposals does not result in a viable proposal, other development objectives will be formulated in consultation with the neighborhood to guide future development, including maximizing the job opportunities and building density that occur on the site.