City of Minneapolis
University of Minnesota
Humphrey School News
by Peter Callahan
June 23, 2016
“To sell, a surface parking lot has to be in the right place and someone needs to make you an offer. And the offer needs to be enough to replace that cash flow. What’s the sweet spot? Everyone’s got a different one. There are still 40 blocks of surface lots in downtown. We have a long ways to go before it’s built out.”
"The greatest reward I get from teaching the course is that every year 20 to 30 more students are out there in the world succeeding and I get to see them out there."
“Most people have a hard time seeing change as positive. And who brings us change? Real estate. They’re gonna block your views, “They’re gonna shadow your building. Who knows what’s going to happen?”
“A real estate development is a business venture financed by private investors and lenders who take serious risks with the objective of earning significant profits. Developers, therefore, are reluctant to give the public too much influence on the factors that determine the ultimate profits: costs, design and marketability. On the other hand, development affects everything from home values and views to the use and enjoyment of public streets, so members of the community feel they should play a stronger role in shaping projects.”
“The people financing a development usually have more interest in the interiors than the exteriors. The interiors — size, design, utility — are what command the prices and rents that determine profitability. Exteriors? That’s where neighbors and politicians focus more of their eyes because that’s what they will see everyday. The developer has to figure out a way to have the inside and the outside come together in something that works for everybody.”
“The idea of having a waterfront view anywhere in the world where there’s a working harbor didn’t exist until 40 or 50 years ago and now we all act like this has been around for a million years and we’re entitled to it.
“The developers who buy the property have property rights and they don’t have to do what their neighbors want, so it behooves residents to work with rather than against developers who show themselves to be thoughtful.”
“By taking an all-or-nothing approach you run the risk that you’re not collaborating in a way that you can actually get a decent thing out of it, so you run the risk that you’re going to kill a good project and something’s going to come back that’s worse. And that’s happened.”
“You grew up in a house built by a developer. You shop at a mall built by a developer. You go to restaurants in a building built by developers. If you look at the world over the last several hundred years, speculative, risk-taking people with capital have created it.”
“The developers and the density are coming, folks, so let’s get on board with that.”