The URL can be used to link to this page

Home My WebLink About2014-02-03_WORK SESSIONAGENDA CITY COUNCIL MEETING CITY OF EDINA, MINNESOTA CITY COUNCIL CHAMBERS MONDAY, FEBRUARY 3, 2014 5:00 P.M. CALL TO ORDER II. ROLL CALL III. RESIDENTIAL REDEVELOPMENT UPDATE IV. PENTAGON PARK TIF DISTRICT PROPOSAL ADJOURNMENT The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large -print documents or something else, please call 952- 927 -8861 72 hours in advance of the meeting. SCHEDULE OF UPCOMING MEETINGS /DATES /EVENTS Mon Feb 3 Work Session — Residential Redevelopment Update 5:00 P.M. COMMUNITY ROOM Pentagon Park TIF District Proposal Mon Feb 3 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Thur Feb 6 Board and Commission Interviews 5:30 — 7:30 P.M. MAYOR'S CONFERENCE ROOM Mon Feb 10 Board and Commission Interviews 5:30 — 7:30 P.M. MAYOR'S CONFERENCE ROOM Mon Feb 17 PRESIDENTS DAY HOLIDAY OBSERVED — City Hall Closed Wed Feb 19 Board and Commission Interviews 5:30 -7:30 P.M. MAYORS CONFERENCE ROOM Tues Feb 18 Work Session — Naming & Donation Policy /Park Board 1nt Sess. 5:30 P.M. COMMUNITY ROOM Tues Feb 18 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Mar 4 Work Session —Three Rivers Park District Nine Mile Creek 5:30 P.M. COMMUNITY ROOM Regional Trail Update Tues Mar 4 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS 'on Mar 17 Board and Commissions Annual Dinner Meeting 5:00 P.M. HUGHES PAVILION CENTENNAL LAKES 2s Mar 18 Work Session —TBD 5:30 P.M. COMMUNITY ROOM i ues Mar 18 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Apr 1 Work Session —TBD 5:30 P.M. COMMUNITY ROOM Tues Apr 1 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Apr 22 Work Session —TBD 5:30 P.M. COMMUNITY ROOM Tues Apr 22 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS l Phone 952 - 826 -0369 • Fax 952 - 826 -0390 • www.EdinaMN.gov To: City Council cc: From: Cindy Larson, Residential Redevelopment Coordinator Date: February 3, 2014 Subject: Residential Redevelopment Update Action Requested: None. Information / Background: MEMO o e�,�� HBO R2 .by �R:Of�T The residential redevelopment update will provide an overview of my observations of our redevelopment process. Topics covered will include common concerns from our residents and remedies presently used to address these concerns, effective policies that are currently in place, and recommendations for next steps to better improve our policies and procedures. Engineering staff will be in attendance to describe how engineering review has changed as a result of ordinance updates affecting single and two family dwelling storm water management, erosion and sediment control. City of Edina • 4801 W. 50th St. • Edina, MN 55424 0,11A, • Misc. General Questions • Parking • Drainage & Impervious Surface Coverage Questions • Street Conditions • Construction Hour Questions & Complaints • Safety Concerns • Property Damage • Encroachment Questions • Tree Removal Concerns w El, -Altl 1/31/2014 1 CITY • �. 4 Zr• oe Residential Redevelopment Update Common Concerns Remedies Effective Changes Next Steps ' 0,11A, • Misc. General Questions • Parking • Drainage & Impervious Surface Coverage Questions • Street Conditions • Construction Hour Questions & Complaints • Safety Concerns • Property Damage • Encroachment Questions • Tree Removal Concerns w El, -Altl 1/31/2014 1 Redevelopment Concern Topics* Addition /Remodel Concerns Property Damage (sprinklers, Const Hour fences, landscaping) questlons/Violatmns 5% 3% 8% I Neighborhood Mtg General r questions 'Non- compliantcomplaints I / Encroachment questions ' General question on allowedho / 2' o cerns �/ em val Con 'Sediment tracking 'Heavy fquipt using streets 'Materials in BOW Street Conditions 8% 'Grade alterations -- "Impervious surface change ralnage 'Larger housefootprint ans /Concerns 9% Parking 23% -Street congestion Dust 2% Noise Volume 1% Erosion 1% General Questions 29% "Pre - construction questions 'Process 'Buildingplans 'Builder questions 'Non - Redevelopment related ~ !'.'-d on 396 calls (7.21.13- 11.27.13) vxw Fd natAN Remedlies wa��1CU o e y • Communication with Permit Holders on Code Compliance (sweeping, erosion & perimeter protection, safety fence, placement of materials, parking, construction hours) • Parking Restrictions by Edina PD • Coordination of efforts across City departments to answer questions & remedy issues (Building, Engineering, Police, Public Works, Health) • Schedule meetings between builders and residents • Parking Tickets, Stop Work Orders, Escrow Funds 1/31/2014 2 1/31/2014 jNIA tt . CITY OF �9r1f1•\ �r Effective Changes • Site Signage — instant access to contact info • Neighborhood Meetings — provides opportunity for residents to ask questions • Escrow — holds permit holder accountable • Pre - Demolition Site Inspection specific guidelines for getting permit holder into compliance Next Steps • Enforcement Clarifications ■ Parking Issues - Ordinance Amending Chapter 26 of the Edina City Code Concerning Enforcement ■ Violation Remediation Policies — Implementation of specific guidelines for getting permit holder into compliance ■ Construction Hours — Research ways to clarify confusion between Chapter 10. Article IV. Sec. 111(b) (7am -7pm M -F; 9am -6pm Sat) vs. Chapter 23. Article II. Division 5. Section 124 (7am -9pm M -F; 8am - 7pm Sat, Sun, holidays) - Ed-NIN g- e , Next Steps • Creation of Critical Topic Handouts (fordemolition & new building permits) Site Signage Template • Rock Construction Exit Specifications Safety & Silt Fence Installation Specifications ® Sample Neighborhood Meeting Letter • Common Courtesies (not parking in front of mailboxes, etc.) • Website Presence for Residential Redevelopment Information for both Permit Holders and Residents Code Clarifications • Shoring Plan details • Dust control • Drainage Policy Review (Engineering) 1/31/2014 51 49ti~�14L, o e f �ti Current Regulations • Erosion & Sediment Control Permitting — Greater than 1 acre • Local Watershed • MPCA — Less than 1 acre - none • Ordinances - Erosion Control — Lack of Enforcement www.Edinab "N 1/31/2014 5 • � o1r(e F:�� Overview - Engineering Review "No person shall obstruct or divert the natural flow of runoff so as to harm the public..." "The stormwater management plan must detail how stormwater will be controlled to prevent damage to adjacent properties and adverse impact to the public stormwater drainage system:' — EdinMN.9- 49ti~�14L, o e f �ti Current Regulations • Erosion & Sediment Control Permitting — Greater than 1 acre • Local Watershed • MPCA — Less than 1 acre - none • Ordinances - Erosion Control — Lack of Enforcement www.Edinab "N 1/31/2014 5 'd What's New? Ordinance Revisions Stormwater " Requires Engineered Plans • Engineer designs all stormwater and erosion control plans. AM www.EdinaMN.gm What's New? Staff Changes • Different staff member • Expanded checklist • Longer review time 49t��f'4 r uM.w FAinaMN nr 1/31/2014 6 How is it working so far? Uncertain Outcomes • Highly constrained sites • Erosion and sediment control Negative Outcomes • Public system 113A. — .EdlnsW 1/31/2014 How is it working so far? Positive Outcomes • Site drainage issues — majority • Cross departmental collaboration / communication • Responsiveness to residents — Edina]Vkgw How is it working so far? Uncertain Outcomes • Highly constrained sites • Erosion and sediment control Negative Outcomes • Public system 113A. — .EdlnsW 1/31/2014 91y.A. eft. 6 r1.U. y o a Policy Preview - "Are you comfortable with the next step? Minimum Required Information: Provide a standard level of engineering analysis and reporting... but, we could double design and review effort and cost? -- — - - tee- .. - - -- — -- - -- -- 1/31/2014 8 4./1 �. CITY OF 9�I�IA' 1 4rt J What are the areas for improvement? Internal • Consistency of standards • Standard operating procedures and enforcement response procedures. External • Customer service to builder • Communication of standards • Guidance for highly constrained sites — EdinaMN ga 91y.A. eft. 6 r1.U. y o a Policy Preview - "Are you comfortable with the next step? Minimum Required Information: Provide a standard level of engineering analysis and reporting... but, we could double design and review effort and cost? -- — - - tee- .. - - -- — -- - -- -- 1/31/2014 8 Policy Preview - "Are you comfortable with the next step? Standard Operating Procedure and Enforcement Response Procedure: We provide a standard and transparent permit and enforcement process... but, increase costs, and limit flexibility with complaints and when enforced shut down work sites for noncompliance? 1/31/2014 9 �zNA Policy Preview - "Are you comfortable with the next step? Stormwater and Erosion Control Standard: More certainty to avoid problems, and add stormwater controls on constrained site... but, site inspection costs increase and some sites have to pay an extra $1,000 410,000 to construct drainage solutions? — .EdI- MN.gov Policy Preview - "Are you comfortable with the next step? Standard Operating Procedure and Enforcement Response Procedure: We provide a standard and transparent permit and enforcement process... but, increase costs, and limit flexibility with complaints and when enforced shut down work sites for noncompliance? 1/31/2014 9 4 91��f�2 Thank you! 1/31/2014 10 To: Mayor and City Council From: Bill Neuendorf Economic Development Manager Date: February 3, 2014 Subject: Pentagon Park TIF District Proposal Action Requested: o e A. O IHHti Agenda Item #: Work Session IV. Action ❑ Discussion Information ❑ Discussion and general direction regarding preparation of new TIF District and Term Sheet for redevelopment of Pentagon Park Information / Background: The tax valuation and market appeal of the Pentagon Park office park has declined in recent years. A comprehensive transformation could reposition this site for the next generation. The new owner /developer has worked with City staff and officials for the past year to discern an appropriate direction for redevelopment. While stabilization is occurring in the short -term, planning is under way for the long -term transformation of the site. Based on the high costs of redevelopment, the creation of a new TIF Redevelopment District should be considered so that a higher caliber project can be successfully pursued. This type of incentive appears necessary to counter the high costs of redevelopment. Extraordinary costs include: demolition of existing substandard structures, correction of unstable soils, construction of public roadway improvements, construction of storm water features and construction of structured parking so that a more intensive and pedestrian - friendly site plan can be achieved. This area is located in the Southeast Edina Redevelopment District. A January 2014 study from LHB Associates has found the site eligible for TIF designation. A public hearing is scheduled for February 18, 2014 to fully consider the creation of a TIF Redevelopment District. As staff prepares the relevant documents and preliminary agreements, it is highly beneficial to discuss the general direction and guidance from the City Council. All suggestions will be considered as the City prepares for the upcoming Public Hearing. Attachments: Presentation (14- pages) City of Edina • 4801 W. 50th St. • Edina, MN 55424 r— Pentagon Park TIF District Preliminary Overview Edina City Council Work Session February 3, 2014 Tonight's Discussion 1) Why a new TIF District? 2) Description of Potential Project 3) How should Tax Increment be Invested? 4) Preparing a Term Sheet 5) Discussion and Next Steps n. 1/29/2014 1 1) Why a new TIF District? • Existing buildings are outdated and "substandard" — Class C and declining • Major reinvestment needed to transform and ensure future economic contribution • High costs for transformation — New storm water standards — Public roadway improvements — Soil stabilization 1) Why a new TIF District? _:.. •• L .,.... "� ' 1®1o,p ilp Wit/ Ylfii,�,� i i. - •. cam» :�» -:aa :.,- 1/29/2014 2 1) Why a new TIF District? Anticipated Elements of TIF Plan • Redevelopment TIF district — At least 50% of buildings substandard — Reasonable distribution of substandard buildings • All parcels in a single district • 26 year term • Newer buildings included due to potential public improvements /storm water needs — Barr Engineering building — Walsh Title building 2) Description of Potential Project • Initial Phases — 495,000 s.f. office with small amount of retail — 425 room hotel — Upgrades to 771h Street — Potential storm water improvements • Future Phases — 800,000 — 900,000 s.f. of additional office and supportive retail — New public roadways and parking • $500,000,000 total project cost (estimate) s 1/29/2014 3 2) Description of Potential Project Anticipated Tax Increment ® Gross TIF Net TIF Cashflow J Present Value (6% 0 $140,000 M $120,000 N $100,000 $80,000 $60,000 $40,000 $20,000 $0 2015 2019 2023 2027 2031 2035 2039 20-43 Full build: estimate $126 Million in Net TIF available for eligible costs (Present Value: $53.8 Million) 1/29/2014 3) How should Incremental Taxes be Invested? • Developer financed — Pay -as- you -go TIF • Recommend focus on extraordinary redevelopment costs — Soil corrections — Storm water features — Public streets and sidewalks — Shared structured parking — Demolition and other eligible costs 3) How should Incremental Taxes be Invested? 1/29/2014 5 South North Total Soil Correction $9,581,000 $16,020,000 $25,601,000 Storm Water $777,000 $1,070,000 $1,847,000 Demolition $1,750,000 $2,890,000 $4,640,000 Green Space / Sitework $2,625,000 $2,730,000 $5,355,000 Street Infrastructure 77th Street $2,886,000 77th Street Bridge $2,563,000 Transit Shelters $180,000 76th Street Parkway $7,825,000 Supporting Street $1,676,000 Green Streets $4,319,000 Monument Signs $80,000 $19,529,000 Parking Ramps Ramp A- 1,140 Stalls $11,514,000 Ramp B - 1,140 Stalls $11,514,000 Ramp C- 650 Stalls $6,565,000 Ramp D - 650 Stalls $6,565,000 Ramp E - 650 Stalls $6,565,000 Ramp F - 975 Stalls $9,847,500 $52,570,500 TOTAL INFRASTRUCTURE INVESTMENT $109,542,500 1/29/2014 5 3) How should Incremental Taxes be Invested? 3) How should Incremental Taxes be Invested? Limitations on TIF • TIF law complicates multi -year projects with broad range of costs — 80% of TIF costs must be spent within first five years (2019) — TIF must be targeted to substandard buildings — Cannot use TIF exclusively for "social /recreation" purposes • When 77' Street improvements are installed, TIF needs to be "committed" from future building phases 1/29/2014 [: 4) Preparing a Term Sheet • Establish minimum improvements — Value or square footages • Establish process for refining assistance to each building phase based upon pro forma review • Outline expected triggers for 77th Street and other roadway improvements — At City's option, may assess portion of road improvements to adjoining parcels via Chapter 429 process • Storm water improvements determined after Fred Richards site decision • Expect amendments to redevelopment agreement in future years ]3 5) Discussion and Next Steps • TIF hearing scheduled February 18 • Term sheet anticipated March 18 • Redevelopment agreement to follow lA 1/29/2014 7