Apartment plans near Stone Arch bridge stalled

A deadlock has developed at Minneapolis City Hall over a second attempt by a development team to build apartments near the north end of the Stone Arch Bridge on the Mississippi riverfront.

Developers Steve Minn and John Wall in 2003 opened the 96-unit first phase of their Stone Arch Apartments at 600 SE. Main St. Now they're back seeking approval for a 79-unit second phase across Main on a wedge-shaped parcel that lies between that project and the University of Minnesota steam plant, 330 feet from the bridge.

That's being opposed by the Marcy-Holmes neighborhood group, which earlier this year helped persuade the City Council to deny a 96-unit version of the development on the same site -- a project that would have required a rezoning. Some want the property developed as a park.

A council committee on Thursday deadlocked on the smaller proposal by the developers, who have drafted and informally sent to the city a draft copy of a lawsuit they may file if they're denied again.

Under existing zoning they're entitled to at least 40 units on the site, and with bonuses for affordable housing and underground parking, a plan for 56 units could likely win approval.

That leaves 23 units at issue, with developers having a financial incentive to increase the number of units on a site. Wall and Minn would need a variance to build the extra 23 units, which requires a finding of hardship among other factors. They argue that the odd shape of their lot, shallow bedrock, high-voltage power lines, drainage conditions, pollution on the site and other factors meet the test for hardship.

Moreover, they argue that the city has set a precedent by giving variances to other developments in the area, including their first phase and their nearby Flour Sack Flats project, and they say denying them a variance would be discriminatory.

They argued Thursday that they've redesigned the project to minimize its impact on views of the river. They argued that the city would be arbitrary if it denied them variances granted to other nearby projects. "The only thing that's changed here is the politics, and my client shouldn't be trapped in those machinations," Flakne argued.

After deadlocking on proposals to grant 56 units and to forward the appeal to the City Council without recommendation, the panel deferred the issue for two weeks. The panel will ask city planners to research the circumstances involving precedents in the area for the type of approvals Minn and Wall are seeking.

Although the parcel has been designated in regional park plans as potential parkland since 1973, Minn said he's offered to sell it to or swap it with Minneapolis park officials several times without success. "There's no members of the Park Board here with a check," Minn said.