Apartment building could be part of Merle Hay Mall redevelopment
KENT DARR Nov 1, 2018 | 7:21 pm
2 min read time
460 wordsAll Latest News, Business Record Insider, Real Estate and DevelopmentThe owners of Merle Hay Mall, Anawim Housing and the city of Urbandale are weighing a plan to place apartments on the west side of the shopping center, where large anchors Younkers and Sears were recently shuttered because of the bankruptcy of their parent companies.
On Tuesday, the Urbandale City Council will have a work session to discuss how much help it wants to be in furthering the proposal, a plan that could potentially provide housing for workers at the mall and other retailers, provide new shoppers for the mall and help the city press toward its goal of creating more multifamily options.
Urbandale City Manager AJ Johnson said the proposal puts his city in the “exciting” position of playing a role in the rehabilitation of the mall, the first of its kind in Greater Des Moines and a retail center whose ownership has shown a remarkable ability to roll with and overcome any punches thrown by a constantly changing retail environment.
Russ Frazier, executive director of Anawim Housing, said although his organization is helping with the early planning of the project, it is likely that property for the apartment building, now proposed as a four-story structure with 43 units, will eventually be sold to a developer.
“It’s a great opportunity to bring new households to the mall,” Frazier said.
On Tuesday, the Urbandale City Council will have a work session to discuss how much help it wants to be in furthering the proposal, a plan that could potentially provide housing for workers at the mall and other retailers, provide new shoppers for the mall and help the city press toward its goal of creating more multifamily options.
Urbandale City Manager AJ Johnson said the proposal puts his city in the “exciting” position of playing a role in the rehabilitation of the mall, the first of its kind in Greater Des Moines and a retail center whose ownership has shown a remarkable ability to roll with and overcome any punches thrown by a constantly changing retail environment.
Russ Frazier, executive director of Anawim Housing, said although his organization is helping with the early planning of the project, it is likely that property for the apartment building, now proposed as a four-story structure with 43 units, will eventually be sold to a developer.
“It’s a great opportunity to bring new households to the mall,” Frazier said.
The apartment building would be located on vacant property on the west side of the mall near Douglas Avenue.
Anawim Housing is weighing its options for future involvement. Those options could involve ownership or providing property management services, Frazier said.
“Right now we are more concerned with just making sure the site itself is viable,” he said.
For example, a determination of the mix of market-rate and affordable units has not been determined, though the project is likely to include both, Johnson said.
Obtaining a “viable” property means a site where the zoning allows housing. As it stands, that would require a zoning change or possibly the creation of a Planned Unit Development.
In addition, the city of Urbandale likely will be asked to fill a $150,000 financing gap in the project, Johnson said.
Meanwhile, the city of Des Moines continues to negotiate with mall ownership on ways to rejigger a development agreement approved nearly a decade ago when the mall built storefronts that provided shoppers access to some retailers directly from the parking lot and added a unique blend of brewhouse and movie theater.
In addition, Polk County supervisors have approved a $2.5 million loan to help mall owners Merle Hay Investors buy the darkened Sears and Younkers buildings. Plans are to demolish the Sears store and possibly place retailers in the Younkers building.
The Urbandale City Council work session is scheduled for 6 p.m. Tuesday at City Hall.
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