Posted on 29 August 2013.
By: Nicholas Hallett
A measure to halt development in Dinkytown failed Friday, about a week after Doran Companies released plans for another apartment complex that could oust Mesa Pizza and other businesses.
In a 6-6 Minneapolis City Council vote on Friday, a six-month development moratorium failed that would’ve prevented any development in a four-block area of Dinkytown. Procedurally, a tie vote fails.
Doran Companies can continue planning its six-story, mixed-use apartment complex for the heart of Dinkytown. The company presented its proposal to the Minneapolis City Planning Commission Thursday.
The development, which is projected to break ground in 2014 if approved, could replace a number of businesses including Mesa Pizza, Camdi Restaurant and Dinkytown Tattoo Shop.
The moratorium would’ve blocked development between 13th and 15th avenues southeast, and between 5th Street Southeast and University Avenue Southeast.
Seventh Ward Councilwoman Lisa Goodman was absent for the vote.
Third Ward Councilwoman Diane Hofstede, who represents one of the communities surrounding the University of Minnesota, said she proposed the moratorium to call a “timeout” and give both the Dinkytown Business Association and the Marcy-Holmes Neighborhood Association time to finish their respective area plans.
“[The decision] is disappointing, but it’s not surprising,” she said. “The whole purpose was to get a period of time for these groups to plan without the pressure of an impending development.”
Ninth Ward Councilman Gary Schiff spoke out against the moratorium during the meeting, saying the moratorium was unfairly targeting one specific development, the Doran project.
Schiff said linking the moratorium to Dinkytown’s small area plan was unusual because it covers 10 city blocks, and the moratorium would only stop development in four blocks — Doran’s project being the only one proposed in that area.
“I don’t think it is fair process for policy makers to find out a development is coming along and suddenly change the rules from everybody else,” Schiff said during the hearing. “That puts politics ahead of planning.”
Schiff, chair of the Zoning and Planning Committee, said he expects both a final draft of the small area plan and Doran’s land use application in the next 30 days.
“Development is not necessarily bad,” CEO and owner Kelly Doran said. “It can also complement what is already happening.”
Immediately after the moratorium vote, MHNA President Cordelia Pierson and Doran met outside the council chambers to “work together and shape what’s best for Dinkytown,” Pierson said.
“I am confident he is a developer who has a long-term stake in the neighborhood,” Pierson said. “He knows that the quality of life in our neighborhood is extremely important for the success of his developments.”
Doran Companies currently has six apartment complexes either open or under construction near campus: Sydney Hall, Dinkydome, 412 Lofts, The Edge on Oak, The Knoll and The Bridges.
“I will say that the neighborhood has successfully worked with Doran in the past,” Pierson said. She added the close nature of the vote means Doran will be watched closely by everyone involved.
While the MHNA is willing to work with developers, Pierson said they’ll have a hard time getting residents involved in the area’s planning without a moratorium in place.
“Why is their involvement important if they just feel like things are going to be approved by City Hall without citizen opinion? We will have to redouble our efforts,” she said, “[and] have citizens really put their time and energy into the planning process.”
In early August, City Council approved a six-story, 140-unit project from Opus Group at Fifth Street Southeast by a vote of 9-4, despite a committee voting against rezoning the area for the development.
The Book House was one of the businesses displaced by the Opus project. Owner Kristen Eide-Tollefson said her worst fears were realized last Thursday when plans surfaced from Doran Companies to build its 70-unit apartment complex on the same city block.
“This is going to determine the fate of Dinkytown,” Eide-Tollefson said. “I think it is most unfortunate.”
Doran said he has signed “contingent purchase agreements,” which would allow him to buy the property that houses Camdi, Mesa and Dinkytown Tattoo once certain requirements — like having City Council approve the proposal — are met.
At the informal hearing Thursday, the planning committee expressed concerns over the project’s design and its effect on the community.
“I didn’t hear anything in there where someone said, ‘No way in God’s green earth are you going to do this project.’” Doran said. “It was more, ‘How do we design this so people can all be in support of it?’”
Doran said his proposal is an ideal project because today's Dinkytown is a “disaster.”
Planning Commission President Ted Tucker lamented the timing of the meeting because it was before the moratorium vote, Dinkytown’s small area plan and Marcy-Holmes’ master plan update.
“To make my decision, I want information from these two studies,” Tucker said. “Both will talk about the character of Dinkytown and answer questions on how redevelopment should proceed.”
Doran said he would like businesses to return to the building’s planned commercial space if they wanted to, and the new building would not necessarily mean higher rent for retail tenants.
“It may end up in dollar terms being the same,” he said, “but it may be different in shape and size.”
Doran cited Erbert and Gerbert’s as an example. The construction of Doran Companies' Sydney Hall temporarily moved the business on 15th Avenue Southeast, but it later returned to pay what Doran says is “less than market rent.”
While the proposed project could displace a number of businesses, the majority of the site is made up of parking lots.
Camdi has been at its current location for 26 years.
“We do not know what we would do if the property is sold,” said Camdi co-owner Camdi Phan. “If we have to leave, it would be heartbreaking. If we can, we want to stay here.”
For more on community reactions to Dinkytown development, pick up Tuesday's Minnesota Daily.