The controversial Village Place project planned for the corner of Sixth Avenue East and Fourth Street is going back to the drawing board.
The latest version of the proposal called for an $11 million project that would have provided 68 to 72 housing units along with spaces for stores and offices.
But it also required the city to seize some property through the process of eminent domain. The land is currently leased by an Auto Lube and belongs to the Katoski family, which also owns the adjacent Last Chance Liquor Store.
The idea of the city forcing the family to sell the property did not set well with a large crowd of opponents who packed City Hall Monday night. Project supporters also turned out to testify.
The project as proposed was also unpopular with some city councilors, and it appeared the resolution authorizing condemnation would be defeated. But there was support for the housing aspect.
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Councilor Donny Ness proposed sending the resolution back to the administration to explore the possibilities for developing the project without taking the Katoski property.
"We want to have the project happen without using eminent domain," Ness said.
Considerable discussion ensued, though most speakers backed the action. Several members of the Katoski family thanked the council and other supporters.
But a disappointed Bruce Wyman, executive director of the Hillside Business Association, said the project had taken three years to put together and a lot of people were involved.
Councilors Rod Stenberg and Jim Stauber opposed removing eminent domain as a possible solution. However, the Ness resolution passed 8-0, with Councilor Greg Gilbert abstaining.
In other business, the council opposed a plan to reduce traffic flow on Arrowhead Road from four lanes to three, including a left turn lane.
The council did agree to ask the Minnesota Department of Transportation to drop the speed limit from 40 to 30 mph between Rice Lake Road and Kenwood Avenue. The city will also study installing a traffic light on the stretch.
After hearing from several speakers, the council passed a resolution opposing and calling for the repeal of any unconstitutional provisions of the U.S. Patriot Act. The action requests that any reauthorizations of additions to that law be given a full public hearing by Congress.
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The measure passed 7-2, with Stenberg and Stauber voting no.
