Issues

1

• Issues Best Practices
• A report by
• Twin Cities LISC
• The Neighborhood Development Center

2
Historical Context

• Development as a function of transportation
• Impact of Automobile
• Re-emergence of mixed-use as an anecdote to
  congestion

3
Why Mixed-Use Projects?

• Mixed-use development as a tool
• Place-making
• Housing Density
• Commercial District Revitalization
• Transportation Oriented Development and
• Neighborhood Scale Retail.

4
Why Mixed-Use Projects Pose Challenges

• Higher Costs
• Financing Gaps
• Uncertain Market Demand
• Implementation Challenges

5
Purpose of the Report

• Create a Resource
• Assemble issues and lessons learned from recent
  projects
• Present Best Practices
• Stimulate Thought and Dialogue

6
About the Report

• Definition of a Mixed-Use Project
• A project with Housing and Commercial space in
  the same physical structure.
• Perspective of Report
• How to make commercial space succeed in a housing
  development.

7
Todays Presentation

• (1) Themes from the report
• Location Matters
• Being Deliberate about Commercial Use
• Importance of Design
• Incorporating Market Realities
• Financing Complications
• (2) The Hope Community Experience

8
Location Matters

• Established, complementary commercial presence
• Access to public transportation
• Good traffic counts
• Other amenities
• Pedestrian accessible

9
Being Deliberate about the Commercial

• Be clear about objectives for commercial space
• Engage commercial perspective EARLY in planning

10
Design Good Places to do business
11
Design Attractive Places to Live
12
Incorporating Market Realities

• Housing units will not support commercial space
• Commercial lease rates must be consistent with
  the market
• Small business ventures are risky need supports

13
Financing Complications

• Restrictions on affordable housing financing
  tools
• LIHTC, MHFA, HUD,
• Compatibility of financing sources
• BIG GAPS!
• Lack of commercial subsidy sources

14
Conclusions Implications

• Mixed use projects are costly and complex.
• Implications For Developers
• Be Selective
• Plan Carefully
• Approach as two projects
• Implications for Funders Policy Makers
• If these projects are important, need new,
  creative tools that address financing needs.

15
Contact Information

• LISC Mike LaFave, 651-265-2290
• Neighborhood Development Center
• JoAnna Hicks, 651-291-2480