JoAnne Lewellen - Community Affairs Officer
Published December 1, 1998 | December 1998 issue
This Community Dividendis the first of two issues focusing on mixed-use development. Whether it involves inner-city redevelopment or new construction in a suburban setting, mixed-use development provides opportunities for lenders and developers to participate in projects that can incorporate affordable housing, small retail businesses, commercial office space and other uses.
This issue serves as an introduction to mixed-use development and provides an overview of lender and developer perspectives on the topic. A second issue on mixed-use development, to be published in the second half of 1999, will explore the subject in greater detail.
The cover article of this issue highlights the perspectives of three lenders who have experience with mixed-use development. These lenders offer their insight into the analysis and underwriting of mixed-use projects. The article discusses similarities in the treatment of mixed-use projects and traditional single-use projects as well as some of the added complexities and issues surrounding mixed-use development. The article concludes with recommendations to other community lenders who are interested in pursuing mixed-use development projects.
This issue also includes brief profiles of three distinct mixed-use development projects. The first profile details a small multi-use building located in an inner-city neighborhood. The second describes a combined senior housing and commercial-retail project that involved historic preservation and is located in northern Minnesota's Iron Range. The third profile highlights a large "urban village" project located in a first-ring suburban community.
An interview with Larry Laukka, president of L.A. Laukka Development Company, provides a for-profit developer's view on mixed-use development. Laukka has participated in several large mixed-use development projects across the Twin Cities and offers his views on the future of mixed-use development.
We hope that the information provided from these resources helps identify and address some of the barriers to lender and developer participation in mixed-use development.