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City of Des Moines City Council Workshop
9/26/2011
Presented by:
Heidi Wessels, Executive Director, Neighborhood Development Corporation
Matt Anderson, Board Treasurer, Neighborhood Development Corporation
To enhance neighborhoods
and combat community
deterioration through
redevelopment efforts
designed to create
opportunities for housing,
small businesses and jobs
for residents of Polk
County, Iowa.
Heidi Wessels, Executive Director, NDC
210 Des Moines Street- Des Moines, IA 50309
www.ndcdesmoines.org
NDC: Project Neighborhoods
• River Bend
• Capitol East
• Drake
• Fairgrounds
• Sherman Hill
• King Irving
• McKinley School/Columbus Park
Sixth Avenue: 601 Forest Avenue Rehabilitation 601 Forest Avenue Des Moines, IA
Building Area:
13,008 sf
Project Cost:
$1,040,167.00
Occupancy Type:
M/B/R-2
Date of Orig. Construction:
1895
Date of Renovation:
2003
Business Mix:
United Market (retail;); Legacy
Business Group (commercial);
DMPD & 7 Residential Units
Sixth Avenue: Wherry Building Rehabilitation and Addition 1600-1610 Sixth Avenue Des Moines, IA
Building Area:
8,061 sf
Project Cost:
$1,030,000.00
Occupancy Type:
M/B/R-2
Date of Orig. Construction:
1887
Date of Renovation:
2005
Business Mix:
Restaurant; Barber Shop
African Market
Restaurant & Catering Co.
4 Apartments
Sixth Avenue: Wherry Phase 2 Building 1612-1618 Sixth Avenue Des Moines, IA
Building Area:
4,800 sf
Project Cost:
$650,000.00
Occupancy Type:
M/B
Construction Start:
Late 2006
Business Mix:
City of Des Moines Offices-
Community Services
East Grand Commercial Building 1534 East Grand Avenue Des Moines, IA
Building Area:
6,000 sf
Project Cost:
$520,000.00
Occupancy Type:
M/B/A-2
Date of Orig. Construction:
2006
Business Mix:
Bakery
Beauty Salon
Asian Restaurant
Vacancy
Los Laureles Patio Addition 1518 East Grand Avenue Des Moines, IA
Building Area:
2,500 sf
Project Cost:
$132,165.00
Occupancy Type:
A-2
Date of Orig. Construction:
1923
Date of Renovation:
2006
Business:
Mexican Restaurant
1542 Mixed-Use Rehabilitation 1542 East Grand Avenue Des Moines, IA
Building Area:
7,920 sf
Project Cost:
$317,320.00
Occupancy Type:
M/B/R-2
Date of Orig. Construction:
1885
Date of Renovation:
2006
Business Mix:
Order Express
Salon
Vacancy
4 Apartments
Commercial Building & Plaza 1514 East Grand Avenue Des Moines, IA
Building Area:
4,300 sf
Project Cost:
$550,000.00
Occupancy Type:
M/B
Date of Orig. Construction:
2007
Business Mix:
Insurance, Clothing;
Gift Store
Retail
Tienda Mexicana Façade Improvements 1524 East Grand Avenue Des Moines, IA
Building Area:
3,107 sf
Project Cost:
$140,000
Occupancy Type:
M
Date of Orig. Construction:
1962
Date of Renovation:
2008
Business Mix:
Mexican Grocery Store
1552 Mixed-Use Building Rehabilitation 1552 East Grand Avenue Des Moines, IA
Building Area:
5,600 sf
Project Cost:
$942,000.00
Occupancy Type:
M/B/A-2
Date of Orig. Construction:
2009
Business Mix:
Mexican Ice Cream Store
Mexican Gifts and Piñatas
Restaurant
Vacancy
2011/2012 -1938 SE 6th Street- Mixed Use Project
Schematic Building Area:
12,000 sf on two floors
Project Cost:
TBD
Occupancy Type:
Office/Retail/Restaurant/Residential Apartments
Project Strategies:
Strengthen Historically Prominent Commercial Node (SE 6th & Hartford)
Increase Neighborhood Access to Local Goods/Services
Passive Heating/Cooling Methods Leading to Low Utility Costs for Tenants
Highly Insulated Residential Units
Sustainable Materials
NDC 2010/2011
Successes •Increased collaboration with other developers- Forest Avenue •90% occupancy within all of NDC’s current holdings- very little turn-over in tenant base; very few outstanding receivables •Tenants include 19 locally owned businesses, NBSD, and Des Moines Community Services •Increased outside interest in our project areas (6th Avenue Corridor; East Grand Avenue) •Strong relationships with agencies that compliment our mission: City of Des Moines Community Development; SBA, Anawim, ISED •Public recognition/Community Presence: Community Partner Award from the IA Black Business Summit (2011); 6th Avenue Corridor Board of Directors, Corporation for Economic Development Board of Directors •Strong relationship with neighborhood associations •Financially strong •High Accountability from our Board of Directors and City Staff •Frequently contacted as a successful ‘case study’ for Universities, Professors, Research •NDC has completed projects in the north, east, west and are now expanding into the south neighborhoods •NDC projects pay property taxes of over $100,000 annually
NDC 2010/2011
Challenges: •Re-financing- 3 projects refinanced in 2010 •Evolution of our business model- residential sustains commercial •Uncertainty of future funding(28E) •Limited incentives for building new commercial construction •Small business loans/opportunities for emerging businesses – not available to our typical tenant Addressing challenges by: •Locating a local bank will to lend to NDC; educational efforts with other local banks to broaden our lending pool. •Foregoing residential incentives (affordable housing) to realize full leasing potential. Adjusting to new commercial market rates for NDC areas of development. •Limited duration of our current 28E agreement limits our ability to obtain project funding, requires additional cross collateralization and financial securities in place. Requesting early renewal to our 28E agreement to solidify our future in Des Moines. •Constant evaluation of our operating costs. Have reduced operating costs 35% in the last 16 months. •Collaborating with private organizations to determine the feasibility of new ways to lend to non-traditional small business start ups.
NDC 2012 and Beyond
Projects: •NDC will finalize construction and financing of their 12,000 sf mixed use building at 1938 SE 6th Avenue. The development consists of 5,000 sf of commercial space and 7,000 square feet of one and two bedroom apartments. •NDC will continue to work with City leadership and staff on identifying areas where NDC can play a role in redevelopment. •NDC will update our strategic plan (last plan created in 2009/2010) •NDC will work in conjunction with the City of Des Moines Community Development’s Neighborhood Revitalization Program to identify future development opportunities •NDC will continue to identify development partners in order to leverage their development dollars and mitigate risk •NDC will be involved with new planning efforts (such as the Capital Crossroads and Tomorrow plans) in order to identify additional opportunities and funding sources
Thank you!
NDC 2011 Board of Directors: Matt Marsh, President, Iowa State Bank Jake Christensen, Vice President, Terrus Real Estate Group Matt Anderson, Treasurer, Knapp Properties Matt Brown, Secretary, Wellmark Nadine Hogate, NRB Representative to the NDC Joel Huston, Kum and Go Chris Johansen, City of Des Moines Community Development Cyndi Chen, Neighborhood Representative to the NDC Holly Olson, Neighborhood Finance Corporation Bret Vandelune, Polk County Brian Meyer, City of Des Moines City Council Questions: Contact Heidi Wessels, Executive Director: 244-8600 X 1 or [email protected]