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MANAGING GROWTH ‘k. as featured in INNESOTA BUSINESS, Leadership, Opportunity, Growth Diamonds in the Rough How to maximize real estate redevelopment opportunities BY BILL GRIFFITH ost business people assume that it is easier to develop in a cornfield on the edge of town than it is in a "brownfield" in the center of town. In many cases, that is true. However, given the focus of local • government on turning around underutilized or polluted sites, corporate prop- erty managers and other business people may want to look to redevelopment as an alternative.The best redevelopment sites are parcels that have good visibility, access, and proximity to population density. Where to Start? o begin your search, talk to local offs- community, they can provide good leads, require removal of significant con- 1 cials in charge of redevelopment. The even for properties not listed for sale. straints,such as blighted build- head of the local economic development However, brokers will usually direct you to ings, pollution, or access agency (EDA) or housing and redevelop- sites that result in a commission;that's how problems. Most redevel- ment authority (HRA) in a target commu- they make their living. As an alternative, opment projects take nity may be most useful. It is their job to you may want to work with a real estate more than a year support development and redevelopment of advisor,or real estate attorney,on an hourly to bring to the urban core and aging suburbs. They " or fixed-fee basis. In this case, the profes- groundbreak- have good networks of contacts for finding sional is working exclusively for the client. ing. By compari Lsites. Often, EDA and HRA staff will pro- son, a typical devel- vide technical expertise or public financing Assess the Potential opment project on • to help move sites with significant develop- jt is typical for business leaders to shy vacant, zoned land, with ent constraints. away from the risks associated with devel- good access,will take only six Local real estate brokers can be another opment or redevelopment projects. This is months to secure approval to Isource for identifying good redevelopment not without justification. Often the best begin construction. sites. If they are "plugged in" to the target sites in the fully developed urban area will On the other hand, working with 1 Reprinted with permission of the publisher.(952)844-0400