Welcome Basim
I knew you when I worked at the Whittier Alliance. Good job on the
Somali Suq. I reminds me of my time in North Africa.
What I'd like to say about your post on the proposed motel development
focuses on how you make a case for the project. It is very well-written
and thought out. You make a compelling argument for the development and
if the corporate support is there for the financing and there is local
corporate support for marketing, then I think it is a serious proposal
that should be considered. However, at the end of your post you say that
if the neighborhood and the city don't like it maybe you will put up
low-income housing. This I take to be a threat and as such, I feel that
it is inappropriate to this discussion and any future discussion. It also
undermines your previous strong position on how you don't need subsidies
to do your developments. You just do them and don't taste of the
"poisoned fruit" of MCDA subsidies. If you were to build affordable
housing, I don't see how it would be possible to finance it without
getting subsidies, either in the form of construction subsidies or rent
subsidies.
The Minneapolis commercial and residential property market is not a
bazaar. There is plenty of higgling and haggeling I'll admit. But there
is no need for posturing, strained looks, and pounding on the table. I
don't know a thing about your dispute with the neighborhood activists but
just stick to your presentation of the facts and , while it might not be
as dramatic and entaining, it may be good for the neighborhood and the
city.
David Wilson
Loring Park
On Sun, 18 Mar 2001, List Manager wrote:
> [Forwarded at the request of Basim Sabri - David Brauer, list manager,
> Minneapolis-Issues]
>
> Approximately 2 years ago, Walt Gutzmer and David Piehl came up with the
> idea of Artist Housing on this site (on 2nd Ave. between Lake and 31st St.
> along with several of the houses on the west side of 3rd Ave. S.) They
> received $50,000 of public money through CNIA, which they had control of.
> They selected Artspace to be the developer of the project. They then
> conducted a survey amongst area artists, but failed to include any people of
> African-American or Hispanic descent in their survey. Coincidentally, this
> area is predominately comprised of African-American and Hispanic people. A
> feasibility study was also done and results showed artist housing would not
> be a favorable option for the area.
>
> Since the artist housing would have sought several million dollars of public
> money and much public support, David Piehl and his friends called for a
> public meeting. The neighborhood clearly voted their idea down. I was
> approached by outside developers who wished to purchase this property from
> me so that they would be able to develop a hotel. At first, the idea of a
> hotel did not appeal to me. However, after giving it serious consideration I
> decided that if a hotel could be created in conjunction with some retail
> shops on the first floor, it would fulfill and satisfy the needs of the
> area. I would like to give a little background of my involvement and
> interest in this particular area along Lake St. The International Bazaar
> located on 3rd Ave. and Lake was vacant and boarded for over 10 years prior
> to my purchasing the property approximately 3 years ago. I rehabilitated
> that building withing 60 days of the purchase and within 3 months it was
> fully occupied by small businesses, primarily Hispanic owners. The project
> cost about half a million dollars and I received only $60,000 of public
> money which was already pre-approved for that building before I purchased
> it.
>
> At 315 E. Lake St, which is the building adjacent to the International
> Bazaar, I also purchased and rehabilitated it within 45 days of owning it.
> It was fully occupied within 75 days after the rehabilitation. It now
> contains a very popular Mexican restaurant and several other retail shops. I
> think it is also worthy to note that this building was boarded for over 10
> years before I purchased it from the federal government. I put $400,000 of
> my own money into this building.
>
> Another one of my developments along Lake St. is 2 blocks away on 4th and
> Lake. Before I purchased this property, this building was in the process of
> being developed by Parliament Companies and an organization formed by CNIA,
> called CNDA. CNDA was created during the leadership of David Piehl and Walt
> Gutzmer at CNIA. $1.3 million was put into this building which was never
> completed by these people. In addition, there was poor electrical wiring,
> poor plumbing and residential design windows which were not compatible to
> the Lake St. integrity. Hennepin county repossessed the building, then
> conveyed it the the MCDA. Despite efforts made by David Piehl and Walt
> Gutzmer, the City Council decided to sell the building to me. Within 40 days
> of purchasing the property, I completed the proper redevlopment of the
> building and had it fully occupied. It currently contains 5 businesses and 6
> apartments. I spent $250,000 of my own money in this property.
>
> I have proven to myself that I have a very serious financial and community
> interest in this Lake St. area. I have no intention to hurt my interest in
> this area by developing a bad site or business. Otherwise, I would not
> consider building a hotel with retail shops.
>
> My vision of the development on 2nd and Lake is that:
>
> a) it will be compatible to the surrounding area in outward appearance b)
> its interior design will be built with quality products in a classy urban
> style c) it will provide an expansion space for my current tenants at the
> International Bazaar d) it will provide the only hotel within our community
> e) the hotel will cater to community events and meetings f) the hotel will
> cater to families/friends who have patients at the Childrens and Abbott
> Hospital g) it will also cater to Wells Fargo clientele h) it will serve as
> a connection point for travelers going to Wisconsin, Iowa, the Dakotas and
> northern Minnesota who are driving along 35W or 94 and don't wish to venture
> into downtown Minneapolis
>
> There are several other benefits of adding the hotel to this location. It
> will provide over 25 jobs. It will also cater to 12 additional businesses on
> the first floor, some of which will be providing services to the
> neighborhood. Unlike the artist housing idea, no public money will be
> sought, no houses will be torn down and nobody's house will be threatened to
> be taken from them.
>
> With regards to the secrecy involving this project, there is absolutely
> nothing secret about it. There have been no public meetings held until this
> point. The meetings that have occurred so far have only been inquiries for
> city requirements for this project.
>
> It was suggested by David Piehl and his friends that we should build it in
> an area that is not surrounded immediately by residents. They suggested
> areas similar to Nicollet-Lake or Chicago-Lake. In other words, build it
> somewhere that is not a block away from David Piehl's house. As far as I am
> aware, there is residential immediately surrounding both Nicollet-Lake and
> Chicago-Lake, just as there is on 2nd and Lake.
>
> The hotel/retail is an excellent idea for the area. Let's not lower
> ourselves into thinking that we are not a good enough area to have such a
> development as David Piehl and Walt Gutzmer would like us to believe.
>
> Remember that central neighborhood is demographically a majority of people
> of color, but during the leadership of Walt Gutzmer and David Piehl, the
> inclusion of people of color was suppressed. After being turned down by the
> neighborhood on their project and being overtaken by a new CNIA board, David
> Piehl and Walt Gutzmer became very resentful. The bottom line is that the
> problem is not the presence of a hotel, but that it is more of personal
> grudge and revenge toward someone who is making a positive difference in the
> area.
>
> My advice is that we should move forward for the betterment of this
> neighborhood. I personally believe it is not the business of Brian Herron or
> the mayor's office or any other city council member to interfere in what is
> developed on my land (granted that it is permittable), and how I should be
> investing my own money. In the future, I will come before the neighborhood
> and city council for a slight zoning change. If the public feels that it is
> a worthwhile project, they will support it. Further, it would be the
> responsibility of the city council members to follow the wishes of the
> neighborhood. In reality, tomorrow I could build a retail mall which would
> not require any zoning changes. Another possibility I have been lobbied to
> consider is low-income rental units.
>
> Basim Sabri
>
>
>
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