Longfellow Station project runs
out of steam for now

 


The demolition at Longfellow Station is proceeding, even though the development project is on hold, because the demolition is financed by remediation dollars and it goes with the site, according to Mike Christenson, director of Community Planning and Economic Development (CPED).

By JAN WILLMS

Like the little engine that could, the Longfellow Station development at 38th and Hiawatha has kept chugging along since its plans were first proposed back in 2006. But now it appears the transit-oriented redevelopment project at the former Purina Mills site has run out of steam.

“The project is stalled, due to financing Dale Joel does not have,” said Kim Jakus, housing coordinator for the Longfellow Community Council (LCC). Joel, a developer with Capital Realty in St. Paul, has been working on the project for the past several years, proposing a mixed-use property with retail and housing meshing in a community site that could offer its citizens a variety of services.

Joel and LCC entered into a Community Benefits Agreement (CBA), a private contract between the developer and a community coalition that sets forth the benefits that the community will receive from the development.

But as time marched on, the development struggled to stay alive, seeking a financing source for its subsidized housing element. The economic times were not favorable for such a project, and investors dragged their feet.

Joel was in contact with various commercial entities, but he could not get commitments from businesses. The retail element, according to Jakus, shrank from 40,000 to 10,000 square feet. The affordable housing units were decreased.

But still the project clung to life, and plans forged ahead. Demolition of the old building on the site began at the end of June, and it will continue until completed at the end of September.

“The active demolition is being done by Carl Bolander and Sons,” said John Landwehr of Pinnacle Engineering, the agency overseeing the environmental aspects of the demolition.

“As the building comes down, we are recycling as much as possible of the concrete and steel,” Landwehr said.

The demolition is proceeding, even though the development project is on hold, because the demolition is financed by remediation dollars and it goes with the site, according to Mike Christenson, director of Community Planning and Economic Development (CPED).

Because nearly $9 million worth of funding has already been committed to this project, it is hoped that other potential developers can be found that will assume responsibility for the Longfellow Station project.

“All affordable housing projects recruit sources before construction,” Christenson said. “Only the demolition money has been expended. The other money has been proposed and budgeted, but not expended.”

CPED staff is reportedly in contact with Joel and his development team to research other possible developers.

“The City will be involved to the extent the community wants us,” Christenson said. He added that the neighborhood’s work on the Community Benefits Agreement would be provided to any new developer.

“This is a high priority project,” Christenson noted. He said it demonstrates how a previously used site can be turned into affordable housing.

Twelfth Ward City Council Member Sandy Colvin Roy was hopeful that the project would not only move ahead, but that the City might find a more experienced developer. “I am disappointed by this turn of events, but it does not necessarily mean the end of this project,” Colvin Roy said. “There are other, more experienced developers who have expressed an interest in getting involved. I am still hopeful that we will see something that the community can support on the cleared grounds of the old Purina Mills. A lot of volunteer hours and energy were invested by Longfellow residents to review this project and develop a community benefits agreement. The part that is so discouraging is that it feels like starting over.”

Joel did not respond to requests for an interview for this story.

 

 

 

 



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