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HomeMy WebLinkAbout2016-04-19 HRA Work SessionAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Edina City Hall Community Room Tuesday, April 19, 2016 5:30 PM I.Call to Order II.Roll Call III.Discussion Item 01-2016 - Kellogg Ave land acquisition IV.Discussion Item 02-2016 - Redevelopment of 3930 West 49-1/2 Street V.Discussion Item 03-2016 Redevelopment Management for 7001 York Avenue (Southdale Regional Library) VI.Discussion Item 04-2016 - Land for A2ordable Housing VII.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli8cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: April 19, 2016 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Discussion Item 01-2016 - Kellogg Ave land acquisition Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: This items relates to property acquisition for redevelopment purposes. ATTACHMENTS: Description Disc Item 01-2016 kellogg For Discussion only Edina HRA Discussion Item 01-2016 City / HRA Objective Acquire vacant parcel to assemble with other City-owned property, then redevelop for residential purposes Vision Edina Page Pg 7 Work Plan Item NA Description of Project The Edina Housing Foundation purchased this parcel in 2004. It has been vacant for many years. The City also owns two vacant parcels very close to this. At least two developers have expressed interest in assembling under- used land in the mixed-use neighborhood to construct new housing units – likely townhouses, condominiums or apartments. Having the parcels under the control of a single agency could simplify a redevelopment transaction. Since this parcel fronts on single-family parcels, portions of it may be needed to serve as a buffer between multi-family housing and the adjacent single-family houses. A developer is unlikely to provide a strong buffer and still complete a successful project. If acquired, this parcel could be included as part of a Request For Proposal (RFP) to secure a private developer. This would return the parcel to the tax rolls at a higher value. If multi-family apartments are constructed, a few units could possibly be affordably-priced to satisfy other goals of the City and Edina Housing Foundation. Location 6120 Kellogg Avenue – vacant parcel - 0.15 acres - zoned R-1 Estimated Costs $250,000 to $300,000 (purchase and closing costs) Funding Source(s) Existing funds from Wooddale/Valleyview pooled TIF Timeframe Summer 2016 Misc. Staff Comments See map attached. Date Discussed April 19, 2016 Work Session Direction Provided to Staff Next Step(s) Prepared: 4-12-2016 Revised: Housing and Redevelopment Authority Established 1974 Hennepin County Property Map Date: 4/7/2016 Comments: 1 inch = 100 feet PARCEL ID: 1902824430058 OWNER NAME: E Edina Housing Foundation PARCEL ADDRESS: 6120 Kellogg Ave, Edina MN 55424 PROPERTY TYPE: Residential HOMESTEAD: Non-Homestead PARCEL AREA: 0.15 acres, 6,619 sq ft A-T-B: Abstract MARKET VALUE: $0 TAX TOTAL: $0.00 SALE PRICE: $225,000 SALE DATA: 08/2004 SALE CODE: This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2016 Date: April 19, 2016 Agenda Item #: IV. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Discussion Item 02-2016 - Redevelopment of 3930 West 49-1/2 Street Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: This item is related to the commercial or mixed-use redevelopment of vacant property owned by the Edina Housing and Redevelopment Authority. ATTACHMENTS: Description Disc Item 02-2016 - RFP for 3930 For Discussion only Edina HRA Discussion Item 02-2016 City / HRA Objective Create public parking and new taxable property using the RFP process. Vision Edina Page Pgs 7, 9, 10 Work Plan Item Focused Redevelopment #3 Description of Project The HRA owns several parcels of land on West 49-1/2 Street. The 3930 site (former Edina Realty branch) is currently vacant. Recent engineering studies indicate that the North Ramp could be increased by one story with only minimal reinforcement of existing structure and a minor zoning variance to allow height of the stair/elevator enclosures. A vertical parking expansion could allow the 3930 parcel to be developed for private and/or mixed use development. A successful project would provide employment opportunities, add street-level retail space and increase the tax base. At least three developers have expressed interest in redeveloping this site. Staff recommends that a Request For Proposal (RFP) be issued to solicit proposals to redevelop the vacant parcel. If the parcel is sold, the revenue could be used toward expansion of the existing North Ramp. Sales revenue would likely cover most but not all the construction costs. Location 3930 West 49-1/2 Street Estimated Costs Negligible – Staff time Funding Source(s) Not applicable Timeframe Q2 and Q3 2016 Misc. Staff Comments A map is attached. Date Discussed April 19, 2016 Work Session Direction Provided to Staff Next Step(s) Prepared: 4-12-2016 Revised: Housing and Redevelopment Authority Established 1974 Hennepin County Property Map Date: 4/12/2016 Comments: 1 inch = 100 feet PARCEL ID: 1802824140026 OWNER NAME: Housing/Redevel Auth Edina PARCEL ADDRESS: 3930 49 1/2 St W, Edina MN 55424 PROPERTY TYPE: Commercial-Preferred HOMESTEAD: Non-Homestead PARCEL AREA: 0.37 acres, 16,034 sq ft A-T-B: Abstract MARKET VALUE: $0 TAX TOTAL: $0.00 SALE PRICE: $2,650,000 SALE DATA: 06/2013 SALE CODE: This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2016 Date: April 19, 2016 Agenda Item #: V. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Discussion Item 03-2016 Redevelopment Management for 7001 York Avenue (Southdale Regional Library) Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: This item is related to long-term redevelopment planning for County-owned property at 70th and York. ATTACHMENTS: Description Discussion Item 03 Southdale Library For Discussion only Edina HRA Discussion Item 03-2016 City / HRA Objective Work in partnership with Hennepin County to redevelop Hennepin County/Southdale Regional Library site at 70th and York Vision Edina Page Pgs 7, 9, 10 Work Plan Item Focused Redevelopment #6 Description of Project Hennepin County is actively relocating the services provided at 70th and York to better serve their users. The customer service facility will move in May 2016. The Courts facility will likely move in 2018. The County is committed to keeping a regional library in the Southdale area. They have asked Edina to provide assistance in preparing and issuing a Request For Proposals (RFP) to seek mixed-use redevelopment on the site. Upon completion, the users will have a modern library facility and much of the property will be returned to the tax rolls. HRA to serve as Redevelopment Planning Manager on behalf of Hennepin County (property owner). City staff to work with consultants and advisors to create a community engagement program to understand the preferences and concerns of stakeholders in Edina, Richfield and surrounding service area of regional library. Local input would influence the content of a Request for Proposals (RFP) issued to the real estate community on behalf of Hennepin County. City staff would then evaluate the proposals and present to the property owner for selection. Edina HRA role limited to redevelopment manager whereas City of Edina role is regulatory. Location 8+ acre parcel located at 70th Street and York Avenue, southeast corner Estimated Costs $30,000 to $40,000 Funding Source(s) Out of pocket expenses, borrowed from Centennial Lakes TIF Fund with reimbursement upon project completion. The HRA would charge Hennepin County a lump sum amount for staff resources devoted to this effort. Timeframe HRA role begins Summer 2016 with likely completion in December 2017. Actual design and construction will then begin. Misc. Staff Comments Attachments summarize the steps and timeline currently anticipated. Date Discussed April 19, 2016 Work Session Direction Provided to Staff Next Step(s) Prepared: 4-12-2016 Revised: Housing and Redevelopment Authority Established 1974 7001 York Avenue - Proposed Redevelopment Planning Process D R A F T April 12, 2016 M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 1 partnership agreement 2A Assemble consultants 2B Enviro study 2C Prelim redev planning 2D Real estate focus group 3A Issue Developer RFP 3B Select & engage developer 4 Full Site planning 5 Land transfer sale 6A Prepare construction documents, Phase 1 6B Build, Phase 1 7A Prepare construction documents, Phase 2 7B Build, Phase 2 Service Center Relocates Courts vacate May - June 2016 Late 2018 construction , Phase 1 Construction docs, Phase 2 2021 site planning & zoning approvals sales contract & devel. agrmnt select devel oper prepar e May /June approv e July construction docs, Master Plan and Phase 1 Construction, Phase 2 intervi ew & engag e 20172016 issue April, due July 1st; recommend soil bori ngs public input sessions; prepare RFP 2018 2019 Description 2020 D R A F T April 12, 2016 Page 1 7001 York Avenue Hennepin County / Southdale Regional Library Site Proposed Redevelopment Process Hennepin County is considering redevelopment of this 8-acre site to better meet the needs of modern users. The customer service function will relocate to Southdale Center Mall in May 2016. The Court function is anticipated to move to Bloomington in 2018. The regional library will remain in the area but in a new building. The remainder of the site provides a mixed-use development opportunity. The Edina HRA has been requested to serve as “redevelopment planning manager” so that the eventual project proposed for the site meets the needs of the County and makes a positive impact to the surrounding community. Description Deliverables (Start Date) Time Step 1 establish partnership Prepare contract for services to define roles, responsibilities and expectations. HRA to serve as manager NOT regulator. Assume that traditional City Code and current policies will be applied to this site with no special or unusual consideration. Contract with terms acceptable to Edina HRA and County. (May 2016) 2 months May/June Step 2 select consultant for preliminary study HRA to interview and recommend consultants to prepare RFP and background data relevant to private developers; subject to County approval. Hire consultants to engage stakeholders and prepare RFP. (August 2016) Clarify who issues contract – HRA or County. 3 months conduct preliminary environmental & related studies HRA to prepare environmental, geotechnical, and economic studies, as well as property survey Background data to help potential developer understand the site conditions. (July 2016) Clarify who issues contracts – HRA or County. 2 months preliminary site planning & market direction Consultant to implement community engagement process that identifies goals and constraints for the site using broad process that includes perspectives from several stakeholder groups. Conduct approximately 3-4 public forums and focus groups to discuss priorities and concerns of: Edina and Richfield residents, neighbors, businesses, governing agencies as well as market-based conditions provided by various real estate interests. Prepare guidelines and minimum expectations for site redevelopment. Issue RFP. Respond to questions raised at developer meeting. (December 2016) Content likely to include: preferred height, density and land uses; size and location of Library; economic tools available; materials and architectural preferences (if any); transportation connections; timing and selection process 5-6 months Issue RFP Distribute and promote RFP to solicit formal redevelopment proposals. Print and online RFP with one in-person meeting for Q & A. 3-4 months D R A F T April 12, 2016 Page 2 Description Deliverables (Start Date) Time Step 3 select developer HRA to review developer proposals and recommend top-ranked developer(s) with input/consent from City. County to select developer. Edina HRA does not have role after this point. Preferred developer selected. 1-2 months engage developer County to prepare transaction contract and redevelopment agreements. Executed sales and redevelopment agreement. 3 months Step 4 site planning Developer to work with architects and engineers to secure entitlements for the site. Developer to conduct neighborhood meeting(s) including meeting with original stakeholders (Step 2) to provide input on preliminary plans. Site plan with zoning & other approvals by Edina City Council (Edina HRA if TIF used). 8 months Step 5 land transfer Transfer real estate after property receives City Approvals. Sales agreement will include many non-regulatory details such as cross- access agreements and other matters of interest to the County. Land transfer completed. 1 month Step 6a construction documents, Master Plan & Phase 1 Developer to prepare full construction plans and specs to secure final costs and building permits for Master Plan & Phase 1 Construction permits issued by City. 5 months Step 6b Construction, Phase 1 Developer to construct Phase 1. New Library completed. 12 months Step 7a Construction documents, Phase 2 Developer to prepare full construction plans and specs to secure final costs and building permits for Phase 2. Construction permits issued by City. 5 months Step 7b Construction, Phase 2 Developer to construct Phase 2. Completed project. 18 months Total Time = 62 months Proposed Role of Edina HRA during Step 2 only. 1) Serve as site redeveloper planning manager & contract manager, on behalf of County 2) Engage consultants & other professional services, as needed 3) Oversee preliminary planning process, including stakeholder engagement 4) Oversee issuance of RFP and solicitation of developer proposals 5) Other limited duties as determined by County Edina HRA to receive flat fee plus expenses for these services. Payments to be made upon completion of key milestones. Planning consultants bill directly to County. Date: April 19, 2016 Agenda Item #: VI. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Discussion Item 04-2016 - Land for Affordable Housing Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: This item relates to strategies to achieve new affordable housing in Edina. ATTACHMENTS: Description Disc Item 04-2016 land for aff hsg For Discussion only Edina HRA Discussion Item 04-2016 City / HRA Objective Provide affordable housing options for Edina seniors and families Vision Edina Page Pg 7 Work Plan Item NA Description of Project Recent multi-family development projects appear unable to deliver the full number (10%) of affordable housing units requested by the City. If the City desires to see significant action regarding the affordable housing goals, a more pro-active approach should be considered. The HRA could potentially acquire and assemble property for construction of new affordably-priced multi-family housing using new incremental real estate taxes collected from the new luxury projects in the Southdale 2 TIF District. Once a site is assembled, a developer with expertise in owning and managing affordably-priced apartments could be selected to buy or lease the land, and construct a new apartment building. This approach will likely take several years, while the developer secures grants and other funding sources. This approach would provide the City & HRA with greater site control and deliver permanent units without the need for the City to own and manage the property. Location TBD Criteria include: 1-2 acres; near transit, near commercial services and newa employment opportunities Estimated Costs $2 to $4 million (land and related transaction costs) Funding Source(s) Pooled funds from Southdale 2 TIF District Possible creation of new TIF District Timeframe No later than February 2017 Misc. Staff Comments Sites within the boundaries of the Southeast Edina Redevelopment Project Area can be considered (see attached map). Possible sites might include: existing City-owned property, OLG parcel, SD 273 bus garage parcels, parcels north of Vernon @ Hwy 100, under-utilized parcels near 70th & Cahill area, and several others Date Discussed April 19, 2016 Work Session Direction Provided to Staff Next Step(s) Prepared: 4-12-2016 Revised: Housing and Redevelopment Authority Established 1974 T R A C Y A V E V E R N O N A V E W O O D D A L E A V E H A N S E N R D V A L L E Y V I E W R D 70TH ST W F R A N C E A V E S Mud Lake LakeEdina Mirror Lake Lake Cornelia ArrowheadLake HighlandsLake IndianheadLake Melody Lake LakePamela HawkesLake Harvey Lake C e n t e n n i a l L a k e Minnehaha Creek Nine Mi le Cree k Nine Mile Creek C a n a d i a n P a c i f i c R a i l r o a d C a n a d i a n P a c i f i c R a i l r o a d CityHall St Peters Lutheran Church & School FireStation Public Works &Park Maintenance GraceChurchPublicLibrary ConcordSchool EdinaCovenant CorneliaSchool ColonialChurch HighlandSchool CalvaryLutheran EdinaHighSchool Our Lady ofGrace Church& School SouthviewJr High CrossviewLutheran CountrysideSchool St Albans Episcopal Valley ViewJr High Creek Valley School NormandaleLutheran ColonyParkBaptist St PatricksCatholic CreekValley Baptist NormandaleElementary St StephensEpiscopal EdinaCommunityCenter GoldenYearsMontessor CalvinChristianSchool GoodSamaritanMethodist EdinaMorningsideChurch ChristPresbyterianChurch ChapelHillsCongregtional Shepard of the HillsLutheran Edina Community Lutheran Church FireStation B L A K E R D S C H A E F E R R D V E R N O N A V E C A H I L L R D 66TH ST W Y O R K A V E S INTERLACHEN BLVD MALONEY AVE 4 4 T H S T W 50TH ST W 54TH ST W 58TH ST W G L E A S O N R D 70TH ST W 76TH ST W DEWEY HILL RD VALLEY VIEW RD VALLEY VIEW RD MINNESOTA DR78TH ST W I-494 H W Y 1 0 0 H W Y 1 6 9 H W Y 1 6 9 H W Y 1 0 0 HWY 62 HWY 62 /Engineering Dept.March, 2016 Economic Development Districts in Edina Pentagon Park TIF District (established 2013) Southdale 2 TIF District (established 2012) Southeast Edina Redevelopment Project Area Proposed Grandview 2 TIF District