I am an attorney who works for Sherman Associates on
the Nicollet and Lake Commons Project.  I live in the
Whittier neighborhood, a few blocks away from the
site, and have been actively involved in neighborhood
efforts to get Nicollet re-opened for several years. 
I write to respond to Joe Barazonzi�s comments about
the project.

[JB]  �The process has always been developer rather
than community lead. Although it should be noted that
there has been significant community involvement and
the credit for that goes to Sherman and Associates.�

[DH]  Sherman Associates became interested in the
project when people from the neighborhood approached
Sherman and requested that they think about
redevloping Nic-Lake.  There is a joint
Lyndale-Whittier Task Force that meets regularly to
discuss the project and advise Sherman.  Each
component of the project came from the community, and
is supported by the community.  Of course, the devil
is in the details, but Sherman is working extremely
hard on details too.  Here is a run down of the the
big picture:
a)  Re-opening Nicollet:  Closing Nicollet was a huge
mistake that needs to be remedied by the City.  I have
never met anyone who is opposed to re-opening
Nicollet.  A few years ago, the City Council formed
the Nicollet Avenue Task Force, and staffed it with
Planning Department and MCDA staff.  The Task Force
Found that re-opening Nicollet was the top priority
for Nicollet Avenue (which it called �Minneapolis�
Main Street�).  Jim Niland and Lisa McDonald in
particular recognized the importance of getting this
done.  Their efforts should not be forgotten.
b)  Discount Grocer:  In Whittier Alliance focus
groups, a discount grocer was listed the top
development priority for the neighborhood.
c)  Discount retailer:  When Kmart pulled out the
project last fall and was tentatively replaced by the
Hennepin County Medical Clinic, there was a loud
outcry from the neighborhoods.  People vigorously
argued that area residents, particularly low and
moderate income residents without cars, needed to be
able to do �one stop shopping� for clothing, consumer
products, etc. at a discount retailer.  At one
community meeting, a woman incredulously demanded of
the developer, �If Kmart goes, where will I buy my
underwear?�  Sherman Associates listened, and began
working to attract a discount retailer to the
development.
d)  Affordable housing:  Sherman will build
approximately 300 units of affordable for sale and
rental units.  Some neighborhood activists want more
expensive for sale housing, some want more units for
the needy.  So Sherman has tried to come up with a
mixed income plan that works for everyone.  Certainly
everyone agrees that housing production is a top
development priority for the City.  Here are 300 new
units that could be built without a single renter or
homeowner displaced.
e.)  Retail condos.  The developer proposes to build
25 x 25 retail condos around the grocery, the discount
retailer, and along the Midtown Greenway.  The Asian
community on Nicollet is very excited about this
component and has lists of interested buyers.  These
condos will add life to the street, and create a
retail �farm system� that will certainly lead to
further successes on Nicollet, particularly south of
Lake Street, where investment is really needed.
f)  Midtown Greenway:  Another top priority for the
neighborhood is to encourage development that enhances
the Midtown Greenway.  The housing will overlook the
Greenway and there will be numerous new connections to
it, both for recreation and for future transit.
g)  Empowerment Zone:  The development is in the south
EZ, and would bring $100 million in investment. 
Sherman hopes to use Empowerment Zone Bonding, which
requires that EZ residents be employed by businesses
benefiting from the bonding.  So the project will
create good jobs for EZ residents.  Again, I can think
of few people who would be opposed to this sort of
investment and job creation in the EZ.

[JB]  �The developer has not delivered despite
previous extensions.�

[DH]  Respectfully, Joe you have the facts wrong. 
There haven�t been any previous extensions.  Further,
its unfair to say Sherman hasn�t delivered.  Putting
together a $100 million project is tough work, and
doesn�t happen overnight.  But Sherman wouldn�t be
spending so much time and money on pre-development if
it didn�t think it could get this done soon.  Sherman
has a great tract record, and has every intention of
delivering.

[JB]  �The current proposal does not seem to have
numbers that work.�

[DH]  Not true.  Not only does Sherman have numbers
that work, the numbers work without significant
subsidy.  A rundown of the pro forma is outside the
scope of this forum, but I�d be happy to share it with
anyone off list.

[JB] �The proposed development no longer meets to
urban design standards of the community: specifically
to have 2+ story buildings facing Lake Street.�

[DH]  Not true.  The discount retail would be a
two-story store, like the downtown Target.  Parking
would be structured rather than surface.  Ratios of
parking spaces to square feet would be substantially
less than normal in order to encourage transit and
pedestrian oriented traffic.  Micro-tenants will line
the parking and parts of the grocery and discount
retailer in order to encourage street life.  

Having said that, Sherman certainly will continue to
work closely with the neighborhoods and City Council
members on creating a great design.  Sherman wants the
project to be a huge success, and in order to do that,
the product needs to be what the neighborhoods want. 
People need to be aware of two things though:  some
great ideas might not be financially feasible, and in
a project of this size not everybody is going to get
exactly what they want.  There needs to be compromise
and free and open discussion.

In sum, City Hall is rightfully gunshy about jumping
into more �blockbuster� development deals.  Nevermind
that Nic-Lake is in the Empowerment Zone and not
downtown, that re-opening Nicollet is enormously
important, that hundreds of units of affordable
housing will be created, etc.  We�re living in a new
era in Minneapolis.  Sherman�s plan it to show how
development can be done, in a collaborative process
with a cost to the citizens of Minneapolis that is far
outweighed by the benefits the project brings to its
citizens.  

We look forward to the CD meeting on Monday.  We also
hope to seeing lots of people at the Nic-Lake Task
Force meeting in July.  

Cheers,

Dave Harstad
Attorney for Sherman Associates
Whittier resident








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