City of Columbia Heights Columbia Heights, Minnesota
Columbia Heights' EDA purchases blighted or distressed policies to create redevelopment opportunities and as the existing City Hall's useful ended, the City redeveloped a vacant office building into a mixed-use development containing city hall, multi-family housing and commercial space
One of the primary barriers to closing on the land sale to Alatus was clearing title of the rooftop cell antenna lease encumbrances which the City filed a petition with the courts to remove the lease hold interests by eminent domain. This was further complicated by delays related to COVID-19 which temporarily affected the lease removal and land sale. The tower space/lease area was appraised and a combination of Columbia Height’s Economic Development Authority as well as Anoka Count HRA Levy fund for special projects were able to exercise eminent domain powers and buy out the remainder of the lease. Another challenge presented was the concern from council members that the project would fall through and the City would lose the funds invested in the project, which was a possibility; however, Alatus paid upfront for the demolition so even if he project did not move forward, there was value added to the property with Alatus being fully responsible for the demolition. Additionally, a two year bridge loan was provided for Alatus to complete their redevelopment plans and secure construction financing to allow them to repay the City.
Columbia Heights has experienced significant increases in minority populations over the past 20 years, which helped shape housing demands and delivery of services. By combining housing with municipal services, the City hopes to reduce barriers to participation in government processes and ensuring robust public engagement through this redevelopment project.
Learning Objectives:
Assess whether a policy for purchasing blighted or distressed properties is an appropriate strategy for your city or county to stimulate redevelopment in line with the existing community.
Identify future public facility needs and consider potential for mixed-use development to encourage citizen participation, improving multi-modal transportation, and further utilization of available services by meeting people where they live.
Develop private-public partnerships and utilize different types of public financing to reduce barriers to redevelopment responsibly without overleveraging the City's future ability to provide services and continue redevelopment efforts.
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