Excelsior approves 339 Third Street PUD preliminary plan, TIF district, parking and new city hall location

The city held continued public hearings for both items.

The total estimated public costs of the TIF district are a little over $8.5 million. The Council’s parking decision included a three-level parking garage that would be financed through city TIF as well as a request for proposals to establish a maintenance plan for the garage.

Councilmember Jennifer Caron recused herself from the West Drive portion of the discussion due to property she owned. The Council was interested in using either the location of West Drive that extends to the full statutory use scope of two parcels or a modified scope of West Drive that extends only to the boundaries of West Drive legally described in the 1905 ordinance and the 1956 ordinance of the two parcels.

The proposal would contain 50 residential rental units, which would include 39 apartment units and 11 rowhomes. The 339 Third Street building currently houses City Hall, which will be relocated to the Excelsior Office Center at 350 Highway 7 starting at the beginning of next year for a minimum of 18 months with a lease term of 36 months.

At the continued PUD public hearing, several residents spoke, some of which had spoken at the previous public hearing. A few who opposed the redevelopment mentioned reasons such as concerns about adding more multi-family housing in Excelsior; not liking the applicant’s behavior at the Planning Commission meeting; the Planning Commission voting 5-0 to disapprove the project; speeding through the redevelopment process; and a bias from the council such as wanting Caron to recuse herself from the project.

A few residents who approved of the redevelopment mentioned excitement; an interest in expanding the parking as much as possible; needing an area to bring in other residents; and liking that the project wasn’t intrusive to the city.

Council also received 20 additional emails and letters from residents, 19 in favor and one opposed, which was included in the meeting packet.

Councilmembers Ann Hersman and Caron were given the opportunity to address comments during the public hearing. Carlson also spoke on the matter, saying bias was a part of everything everyone did and it was more about trying to make decisions that were in the best interest of the community. Hersman said they had made a group effort to bring in a project that fits Excelsior. Caron agreed with Hersman’s comments and said that because Excelsior was a small town, they tried to be careful about the decisions they made on the council.

No residents spoke at the TIF public hearing.

The redevelopment of 339 Third Street, with the current building housing City Hall, and the west parking lot have been an ongoing council discussion since the beginning of the year. The city chose Red Leaf Partners to develop the property out of six developers, hosted a May open house and held a site plan review during the summer. Discussions have revolved around parking concerns, what the development would look like and whether to include City Hall in the plan. The last 339 Third Street discussion from the council was held on Nov. 7.

The Planning Commission heard the PUD application at an October meeting and recommended denying the project due to the public benefit not being enough, uncertainty over whether the city needed additional parking, the question of whether a high-density use was appropriate for the space, and they questioned whether the project’s goal was attainable.

The redevelopment is estimated to be completed by the end of 2024.

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