During a special joint meeting last Wednesday night of the Merrill Committee of the Whole, Redevelopment Authority (RDA) and City Plan Commission, the city rejected a multi-million dollar development proposal for the former Lincoln House site, located at 120 S. Mill St.
The proposal as submitted by MSP Real Estate Inc. called for a multi-level, 40-unit rental property with underground parking, several surface parking stalls, a community/club room, 375 square feet of retail space as well as the option to lease 20 additional parking stalls from the municipal parking lot, to the west of the property.
The original proposal first handed to the city prior to the plan commission meeting on Jan. 5, called for the rentals to be comprised of 30 “income dependent living units” and 10 “market value living units.”
During that meeting however, the commission did not take the proposal itself under consideration, but rather re-zoning the property from Business District to Planned Unit Development, which would allow the property to accommodate such a structure.
The proposal as considered on Wednesday, had been amended to consist of 34 reduced rent units and 6 market value units.
As part of the proposal, the city was asked to contribute $1,085,000 in TIF Development incentive.
During discussion, 8th district alderman Tim Meehean voiced his opposition to the project.
“I would recommend we postpone this for a year. I think it’s a good project, I like the idea of this. But I don’t think we have enough time here to really take this into full consideration,” Meehean said. “I have an issue with the parking and I just feel the timing is wrong.
“It seems we have a lot of resistance from the folks who will be most directly affected and I’m not convinced we need a $6 million project which will be a net loser in 20 years.”
Finance director Kathy Unertl argued the parking concern, citing additional parking being available nearby such as that of St. Stephens Church.
Following nearly 90 minutes of discussion, a motion for approval was requested from the RDA and failed.
“I am disappointed this project did not move forward as it was very much in line with the city’s strategic plan and would provide needed rental housing,” city administrator Dave Johnson said following the meeting. “Due to time constraints, not of our making, it was difficult to talk with the public for their input. I am hopeful that MSP will look at Merrill for another development in the future.”