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Adaptive reuse for live/work units that benefit the arts community

Models Project Information
Proj ID: 

Model01

Proj Subject: 

Adaptive reuse for live/work units that benefit the arts community

Proj Name: 

Northern Warehouse Artists’ Cooperative (the first real estate development project of Artspace Projects, Inc., a nonprofit advocacy organization)

Proj Purpose: 

To provide affordable residential units, work areas and exhibit/performance spaces for artists and arts organizations; a goal often fulfilled through sustainable development of ‘green building’ projects and repurposing historic sites

Proj Time Frame: 

Approximately five years In 1978, the Lowertown Development Corporation (a nonprofit organization) sought to encourage investment into Lowertown district – a former storage and manufacturing area dotted with warehouses (many of which were built in the 1800s) – which, by the 1950s, was in poor condition. The neighborhood park was improved in the 1980s and in 1982, the Farmers Market was redeveloped. In 1983, the district was added to the National Register of Historic Places. As a result of revitalization efforts, artists and non-profit organizations repopulated the area but rising rents and property values threatened to drive artists out of the neighborhood. Artspace Projects, Inc. (which began in 1979 as a nonprofit advocacy organization seeking only to lobby for artists who had been displaced from their homes as a result of rezoning) became a real-estate developer in 1985 when it began the Northern Warehouse Artists’ Cooperative project. By 1990, the Northern Warehouse Artists’ Cooperative was operational.

Proj Method & Activities: 

Northern Warehouse Artists’ Cooperative: A 149,040 square-foot six-story warehouse (built in 1908 and listed in the National Register of Historic Places but abandoned by the 1950s) was purchased by Artspace Projects, Inc. The first two floors were developed as commercial spaces rented out to arts-related businesses and nonprofit organizations at market/less than market rates. The upper floors were made into 52 live/work units (1,000 - 2,000 square feet in size) leased out to low/moderate-income artists. The building is co-owned by Artspace Projects and the tenants under a cooperative agreement. Artspace Projects, Inc. (Organization’s main activities): (1) Property development – purchase and redevelop existing buildings*, then lease units out to low/moderate-income artists, artists’ cooperatives, and arts organizations for residential, commercial or mixed use. (2) Asset management – as property owner/co-owner (with the building cooperative), provide for maintenance needs and keep the units affordable to low/moderate- income artists over a long period of time by subsidizing the rental costs through Artspace’s own funds and allowing tenants to benefit from a 30-50 year tax credit compliance period (3) Consulting – offer advice to other institutions interested in developing low- to moderate-income housing and work spaces for the art community, assist in conducting feasibility studies, planning programs and similar evaluations for cultural centers and arts organizations * The buildings are usually historic properties (often industrial buildings for their availability of light and space): warehouses, factories, hotels, a school, temple, car dealership, theater, telephone station, department store, market, hospital, printing press. Artspace Projects, Inc. has, however, also engaged in new construction projects.

Models Coverage
Location: 

Lowertown historic district, St. Paul, Minnesota, USA (Address: Northern Warehouse Artists' Cooperative - 308 Prince Street, Saint Paul, Minnesota 55101, USA)

Models Financing
Funding Agency: 

Developing the Northern Warehouse Artists' Cooperative initiative cost US $5 million. Funds came from private contributions made to Artspace Projects, Inc.(10-15% of the revenues), and from access to public funds through low-income housing tax credits, historic housing tax credits, and city housing funds Artspace Projects, Inc. uses both private and public funding. It accepts private contributions from foundations, corporations, and private individuals as well as government donors (e.g., Minnesota State Arts Board, National Endowment for the Arts, National Trust for Historic Preservation); generates its own income from rents (often making only 10-15% profit from leases); and relies on government funding (e.g., federal low income tax credits, state rehabilitation tax credits, historic preservation tax credits granted by city governments, tax credits for affordable housing) where offered.

Models Organization
Mod Org Name: 

Artspace Projects, Inc.

Org Project Director: 

Kelley Lindquist (President, Artspace Projects, Inc.)

Org Resources: 

Artspace Projects, Inc. operates with a board of 31 members and 20 full-time staff. For the Northern Warehouse Artists' Cooperative project, they worked with the Minnesota Historic Preservation Office and other local preservation groups. Their property development activities entail: (1) analyzing and identifying potential properties, (2) getting community support for the development project, (3) purchasing the property and getting the necessary permits/approvals from the local government, (4) obtaining financing for the project (e.g., working with permanent mortgage lenders, applying for low income housing tax credit financing and historic rehabilitation region tax credits), (5) working with architects and creating plans/blueprints, and (6) supervising the construction.

Org Mailing Address: 

Artspace Projects, Inc. 250 Third Avenue North, Suite 500 Minneapolis, MN 55401 Phone: 612-333-9012 Fax: 612-333-9089

Models Outcome
Material Type: 

Repurposed buildings

Models Evaluation
Status: 

Northern Warehouse Artists' Cooperative is always fully occupied. Meanwhile, Artspace Projects is considered “the nation's leading nonprofit real estate developer for the arts". As of 2009, Artspace has developed 20 properties (many of which were forms of adaptive reuse) and is in plans to develop 13 more. Its properties can be found across 12 states in the US.

Selection Criteria & Results of Initiative: 

By creating residential/commercial properties targeted directly for artists, Artspace promotes the growth of the local arts community and their business model exhibits corporate social responsibility in providing for the needs of low/moderate-income artists. The Northern Warehouse project led to community regeneration of Lowerton, St. Paul as seen in: an increase in the local population, economic benefits for the local government (from an increase in property values), an increase in visitors to the area, an increase in the number of arts/culture/tourism events, a rise of new businesses and the development of other properties in the area. Artscape’s experience has taught them that other developments usually follow one to three years after the introduction of an Artspace project into an area.

Applicability to Philippine Setting: 

An initiative such as this will require identifying a nonprofit organization/charity with a strong commitment to their beneficiaries and a willingness to learn the skills needed of a real estate developer.

Possible Benefits: 

Adaptive reuse projects give a second life to under-utilized, abandoned industrial buildings. Adaptive reuse targeted for a particular segment of the market can be a community and economic development strategy that benefits the local government unit where the property can be found, real-estate firms and the intended beneficiary category.

Reference: 
Adaptive reuse for live/work units that benefit the arts community
Links: 
Adaptive reuse for live/work units that benefit the arts community