Hamms Brewery South Site Development                               A
April 14, 2000                                                                                                                             notes

A summary of: 

Options for South Hamms Site Development
1. Passive:  Wait for potential tenants - soft marketing
2. Force  Action:  St. Paul finds a developer and buys the site 
3.  Pro-active:


Community assists Mr. Gelb in finding a     developer/partnership for the development of this unique   property and its connection to the surrounding  community.

Howard Gelb - Welcome & Goals

1. Doesn’t want to demo site.  Demo would be a great expense to the city.
    Doesn’t want the city to develop

2. Wants tenants who can pay, are reliable and if tenants want site improvements, they must sign long term
    leases for 10 to 20 years.

3. Existing status: 
    70 to 80% of the north and middle sites are rented.  Would like that to happen now at the south site. 

4. Doesn’t have to move quickly. 
   5  year negotiation with Liverpool company
   Negotiating with a Japanese company for 2 million in improvements and  a 20 year lease. 
   Doesn’t want to use government money -- too much red tape.

Weiming Lu, President of Lower Town Redevelopment

1. It is not a fast process.  You need to create a visibility and relationship between all of the potentially
    interested parties: owner, developers,  public sector, neighbors, education, potential users and tenants.

2. Visualize change.  You need to create a sense of place, an identity.
    For example:
                   1.  Lowertown was declared a Historical District which reduced 
                        the pressure to demo and/or develop

                    2. A theme was established:  “New Urban Village”

                    3. Designs and drawings were done with input from potential 
                        users and tenants that we sought to attract.

3. Marketing.  You must have a budget for marketing -- communicating your 
    amenities to potential tenants: in existing locations who need to move or 
    expand; new start-ups; existing corporations with unique needs for offices, 
    meetings, creative research, etc.; venture capitalists; and mortgage bankers,

    Use Drawings, models, web sites, print ads, TV, radio, public relations - sponsor “events”

    Need to be in very public places like the Mall of America, the airport,
    Carlson Center, St. Thomas Business School, Corporate events, on TV - Winter Carnival etc.

4. Learn how to get gap financing.  Between periods of sponsored 
    development, grants, research, foundations, etc...

5. Provide visualizations of progress, create benchmarks leading to the critical 
    mass when the development takes off and creates its own demand.

6. Create unique and affordable space

7. Find long term, energetic, creative leadership

Hamms Brewery South Site Development                               B
April 14, 2000                                                                                                                             notes


Options A:  Major Anchor Tenant -- Smithsonian

• The Smithsonian Institute has run out of space and is now seeking the feasibility for Regional Museums
   and storage.

• Minnesota Science Museum is willing to make a joint proposal with H. Gelb as long as the museum
   doesn’t have any science content.

• The site could be embellished with restaurants and beer garden based upon historical theme.

• Bring green and trail connection into and through the site.

• Additional parking would be a must

• Provide stairs and other connections to community

• The key to this, or any developments’ success, will be leadership to drive the process and promote the 

Option B:  Practical Steps to Achieve Big Vision

A. Meet with H. Gelb to determine least desirable building for easy rental - for development. 
    Create a development cash flow from the others.

B. Create a non-profit entity to receive grants and drive the process

C. Sell the idea through:
     1. Alleviating problems for H. Gelb
     2. Maximizing profit
     3. Look at building by building
     4. Polish vision, then
     5. Develop specifics

D. Look for interesting partnerships: City, Parks, Foundations, Educational institutions.
For example: 
                     Educational institutions:  To provide job training and skill development.  This could be 
                     especially attractive for high tech start-ups looking for a variety of services (clerical,technical,
                     research, legal and management.)  St. Thomas and Carlson Companies could lend name and 
                     services without a large investment of capital.

                     YMCA:  On several floors of (hard to develop) Building 17.  This service could tie in with
                      community needs, the greenway running biking trails.  A sports equipment store where the
                      building’s east side becomes a climbing wall and sign of “Creative Change.”

                      This physical activity amenity would be an attraction to the busy, work oriented, and the 
                      alternative life styles of “techey’s” of high tech companies seeking low overhead but unique 
                      office and housing spaces.

Option C:  High Tech Incubators -- Co-op

This site and collection of buildings is ideal in character and location for high technology start-up companies.

Typically, they are looking for:

      1.  Cheap facilities that are creatively stimulating and unique. with the  opportunity for rapid expansion

      2. Internet, phone and media services

      3. Legal, accounting and marketing services

      4.  Amenities such as unique nearby housing, recreation and city action  (all necessary to attract 
           qualified tech personnel)

      5. Access to a supply of tech and support staff - a natural with the UofM  High Technology Initiative.

Hamms Brewery South Site Development                               C
April 14, 2000                                                                                                                             notes


Options D: Creating Place and Connections For Change and Development
This scheme incorporates many of the ideas from options A, B, and C.

A. Begin with Weiming Lu’s concept creating “Place, Identity and Vision”

B. Starting with the least attractive Building 1: Create a100,000 to 150,000  budget - transform building 
     into a unique meeting and marketing space:

        1.  To demonstrate and visualize creative change and a place

        2.  For a meeting place to determine needs and vision of potential  developers, tenants, and the
             community, etc...

         3. Where visions are illustrated and refined.   Models are built and walls are covered. 

  Marketing and Visibility
        4. Where potential tenants are interviewed on site

        5. Where proposals for development are made on site

        6. Where businesses, community groups, etc.. may rent space for meetings.

        7. Where adjunct space may be rented for office and training space associated with community 
            and nearby businesses.

        8. Were development architects and designers would have space on site.

        9. Where press conferences and events could center out of.

Hamm's Brewery South Site
Internal Site Development and External Ammenities
 (click here for larger image)
C.  Second development might be Buildings 8 & 9 -- artist and designer studios.

                1. These spaces are deteriorating and don’t lend themselves to the development of efficient office 
                     rental spaces like buildings 17 & 18. 

                2. Artists, artisans and designers are always looking for cheap, unique, open living/working
                    environments and are willing to supply sweat equity in trade for reduced rents. 

                3. Consulting with the project architect, these tenants will create unique attractive sites, art,
                    designs, site activity, art events such as art crawls and gallery spaces, along with small coffee

                4. These tenants can also provide (through rent and trade) for site embellishment: signage,
                     landscape, paving, lighting, benches, banners, iron work, glass, woodwork, etc...

D. The above type of site activity may stimulate the need for buildings 13 & 59, which would be great for 
     production shops, furniture design proto-typing and custom work that can use more industrial spaces 
     and truck service.

E. Site activity would drive additional development of prime housing and office spaces in Buildings 3, 6,
     and 7 which face the developing greenway, and are thus extremely desirable for that purpose. 

F. The need for this housing may also be driven by the development of office space in Building 18, with
     multiple and unique skyway connections to Building 17. 

G. The most difficult Building 17, will also become the most creative combination of mixed uses:  Offices,
     apartments, physical fitness and a laboratory for energy efficiency. 

H. At that point, critical mass will have been achieved and the most attractive space 2 will be ripe for the
     Galleries, shops, Cyber Cafe and related site support activities. 

I. An early commitment at stages A, B. and C should be made to connections with trails, greenway and
   Swede Hollow: “Hamms’ Spanish Steps” etc. 

Hamm's Brewery South Site
External Site Development
 (click here for larger image)