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Home My WebLink About2016-09-07 HRA Work SessionAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Edina City Hall Community Room Wednesday, September 7, 2016 5:30 PM I.Call to Order II.Roll Call III.Motion to close the work session of the Edina HRA as permitted by MS. 13D.05 subdivision 3(c) to consider the potential sale of the property located at 4416 Valley View Road. IV.Potential Sale of Real Estate - 4416 Valley View Road - CLOSED SESSION V.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 ampli2cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: September 7, 2016 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: From:Debra A. Mangen, City Clerk Item Activity: Subject:Motion to close the work session of the Edina HRA as permitted by MS. 13D.05 subdivision 3(c) to consider the potential sale of the property located at 4416 Valley View Road. Action 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: Motion to close the work session of the Edina HRA as permitted by MS. 13D.05 subdivision 3(c) to consider the potential sale of the property located at 4416 Valley View Road. INTRODUCTION: In order for the Edina HRA to move into close session to discuss the potential sale of 4416 Valley View Road, the HRA must first take action to close the meeting. The meeting will continue to be recorded. Date: September 7, 2016 Agenda Item #: IV. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Potential Sale of Real Estate - 4416 Valley View Road - CLOSED SESSION 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 purposes only. INTRODUCTION: One proposal was received in response to the July 2016 Request for Proposals (RFP) for this site. This property has been vacant since the City acquired it using Housing & Redevelopment Authority funds more than twelve years ago. The proposed project consists of for-sale condominium units. Due to the sensitive nature of potential real estate sales negotiations, this discussion will occur in a "closed session" in accordance with Minnesota Statute 13D.05, Subdivision 3. Any action to be taken will occur at a meeting that is open to the public. ATTACHMENTS: Description 4416 Valley View RFP 4416 Valley View Road Edina, Minnesota Request for Proposal for Redevelopment Responses Due August 5, 2016 (4:30 PM) The City of Edina, through the Edina Housing and Redevelopment Authority, seeks proposals to acquire and redevelop publicly-owned parcels located in the mixed-use neighborhood commercial district near Wooddale and Valleyview. The City is seeking a developer to deliver a project that complements the surrounding neighborhood and is successful in the marketplace. Background The City of Edina / Edina Housing and Redevelopment Authority assembled the parcels more than ten years ago as part of a long-term redevelopment strategy for the neighborhood. The Edina Housing Foundation (EHF) owns a nearby vacant parcel located at 6120 Kellogg Ave. The EHF has offered to transfer ownership of their parcel to the Edina HRA so that it can potentially be included as part of a larger scale redevelopment project. In 2015, the City completed a Small Area Plan with guidance from neighbors, business owners and planning experts. The ten guiding principles intended to shape future development in this neighborhood commercial area are summarized below: Ten Guiding Principles 1. The area should be recognizable as a “place” and be visually attractive. 2. There should be places for people to spend leisure time, whether in commercial or public locations. 3. There should be businesses that provide services or goods desired in the neighborhood, including small offices. 4. Sites should be allowed to transition to housing from business use in response to the changing market demands. 5. Future buildings north of Valley View Road should be 1 to 3 stories tall, depending on their location relative to nearby single family housing. 6. Graceful transitions should be maintained from more active areas to quieter neighborhood streets immediately beyond the node. 7. Most residential parking should be in attached garages or under the building. Views to commercial parking should be softened by plantings, walls or fences. 8. Buildings should be located near the street sidewalk without intervening parking. There should be trees between the curb and sidewalk. 9. Walking, bicycling or catching the bus should be safe and comfortable. The area should be well-linked to the nearby neighborhoods. 10. The City should provide a land use plan, zoning regulations, design guidelines and public improvements that support the intentions of the property owners and the broader community while being sufficiently flexible to guide alternative idea. 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Page 2 Site Information Traffic volume on Valley View: 7,900 vehicles per day (2013) Parcel address: 4416 Valleyview Road Parcel I.D. Nos.: 19-028-24-43-0060 and -0061 Parcel size: 0.25 acres (combined) Zoning Designation: PCD-4 Site Conditions: The site was formerly used as an automobile service station and rental facility. While the extent is uncertain, there is likely to be some soil contamination. Information on MPCA Site 13187 is here: http://cf.pca.state.mn.us/programs/tank_leak/siteDetail.cfm?id=1 3187&programInterest=LS. Adjacent (EHF) Parcel Information Parcel address: 6120 Kellogg Ave. Parcel I.D. No: 19-028-24-43-0058 Parcel size: 0.15 acres Zoning Designation: R-1 Site Conditions: The site was formerly occupied by a single-family home. It has been vacant for several for at least ten years. Estimated Market Value: $260,000 to $300,000 Expectations of all Proposals 1) Compliance with Small Area Plan. See Excerpts in Appendix. 2) Re-use of the City-owned land must leverage additional private investment from the developer on adjacent or nearby parcels on Valley View Road or Kellogg Avenue. 3) Any proposal that includes new housing shall also include units that are affordably-priced to households earning no more than 60% of the Area Median Income. 4) Sidewalks (5-feet minimum) with landscaped boulevards (5-feet preferred) must be included on all impacted portions of Valley View Road and Kellogg Avenue. 5) The vacant land is expected to be sold for market-value. Land write-downs will only be considered if affordable housing units are included or if costs of public amenities, exterior finish materials or reduced height mandated by the Small Area Plan prevent a market return to the developer. Pro forma will be reviewed by City. 6) Developer is solely responsible, if necessary, to remediate any environmental contaminants to the satisfaction of the MN Pollution Control Agency or other regulating body. 7) The City will support and/or sponsor grant applications to outside agencies as deemed necessary by the Preferred Developer. 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Page 3 Developer Selection and Approval Process The City anticipates a multi-stage process to identity the preferred developer and issued required approvals to proceed with construction. Stage 1: Developer Selection Outcome: City announces Preferred Developer in August-September 2016. City staff will review all Proposals and invite up to four responders to present to the City Council on Tuesday August 16, 2016 at 5:30 PM. The City Council will discuss the merits of each proposal in closed session and may identify a preferred developer with which to negotiate a sales contract and redevelopment agreement. Stage 2: Preparation of Transaction Documents Outcome: Parties enter into a formal agreement on October-November 2016. City staff and City attorney will work with the Preferred Developer to prepare a sales contract and redevelopment agreement. The due diligence period will be adequate for the Preferred Developer to fully understand the site conditions and, if necessary, to present the project to the Edina Plan Commission if any re-zoning or variances are necessary to achieve the community’s and developer’s goals. Stage 3: Due Diligence & Entitlement Period Outcome: Preferred Developer will secure all local approvals in Spring 2017. The Preferred Developer shall proceed with any activities necessary to secure financing and entitlements for the project. Be aware that the execution of a sales contract is NO GUARANTY that the Planning Commission or City Council will approve any specific site plan proposal from the Developer. All requests for re-zoning, variances, or use of incremental taxes must be go through the City’s procedural review process. Stage 4: Real Estate Transaction & Construction Outcome: Closing anticipated no later than Summer 2017. The real estate transaction is anticipated to occur within two calendar weeks of the final rezoning or site approvals. Construction should begin within four weeks of the transaction. Submission Requirements Interested entities (whether an individual, company, or team) should submit a Proposal that includes the following information: 1) Name, mailing address, telephone number, and email address of the primary contact person; 2) Identification of project team, including architect and contractor/construction manager; 3) Project list that identifies two or more completed projects of a similar nature or scale; 4) Brief narrative that describes the proposed project, how it incorporates the principles and goals of the Wooddale Valleyview Small Area Plan, its likely users, estimated start date, completion date, full-occupancy date and approximate development cost; 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Page 4 5) Proposed purchase price for the land; 6) Rationale for purchase price, if less than market value 7) Identification of other parcels which will be included in the overall development proposal; 8) Financial uses, including land acquisition, hard construction costs, and soft costs; 9) Financial sources, including equity, debt, and grants, if any; 10) If a financial gap exists, provide clarification regarding the gap and the need for a land write- down or the use of incremental taxes; developer fees and estimated profitability must be identified if a land write-down or use of incremental taxes is proposed; 11) Preliminary site plan; 12) Conceptual elevations, floor plans and renderings to illustrate the proposed project; 13) Identification of any variances or re-zoning requests anticipated; and 14) Any other information that is critical to the City’s ability to evaluate the proposal. Respondents are encouraged to be thorough, yet concise. Proposals should be limited to 10-pages. Submission is due by 4:30pm on Friday August 5, 2016. The Proposal must be submitted in electronic format (email or flash drive preferred) with 10 printed hard copies delivered to: City of Edina | 4801 West 50th Street | Edina, MN 55424 Attention: Bill Neuendorf, Economic Development Manager Selection All complete submittals will be evaluated by an ad-hoc selection team comprised of City staff likely to be engaged in the development planning process. Submittals will be evaluated on the following criteria: • Satisfaction of principles and goals of Small Area Plan (up to 30 points) • Assembly of adjacent or nearby parcels (up to 10 points) • Anticipated growth in taxable value (up to 5 points) • Creation of new commercial space (up to 10 points) • Creation of new affordably-priced housing units (up to 10 points) • Creation of new market rate housing units (up to 5 points) • Creation of public plaza or similar public areas (up to 5 points) • Below grade parking and screening of surface parking (up to 5 points) • Reduce or minimize curb cuts and vehicle-pedestrian conflict points (up to 5 points) • Capacity of team to complete project (up to 15 points) Selected responders will be invited to give in-person presentations to the City Council tentatively scheduled on Tuesday August 16, 2016 at 5:30 PM. The City Council will discuss the merits in closed session and follow up with the preferred respondent. Preparation of a sales contract and redevelopment agreement is anticipated to begin immediately thereafter. 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Page 5 Terms This is a Request for Proposals and in no way obligates the responder to enter into a relationship with the City. Nor does this request obligate the City to enter into a relationship with any entity that responds, nor does it limit or restrict the City’s right to enter into a relationship with any entity that does not respond to this request. In its sole discretion, the City may pursue discussions with one or more entities responding to this request, or none at all. The City further reserves the right, in its sole discretion, to cancel this Request for Proposal at any time for any reason. All costs associated with responding to this request will be solely at the responder’s expense. Additional Information In addition to this RFP, the Edina Zoning Code, Comprehensive Plan, Wooddale Valley View Small Area Plan and Affordable Housing Policy are available online at www.EdinaMN.gov. Any addendum to this RFP will be posted on the City’s website at least one week prior to the submittal deadline. Questions about this Request for Proposal can be directed to Bill Neuendorf, Economic Development Manager at 952-826-0407 or bneuendorf@edinamn.gov. Responses will be provided and posted online to questions received before 4:30 PM on Friday July 29, 2016. 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-1 This Appendix contains excerpts from the City of Edina’s Zoning Code and the recently approved Wooddale/Valleyview Small Area Plan. It also includes an environmental summary from MN Pollution Control Agency. • The complete zoning code can be found here: https://www2.municode.com/library/mn/edina/codes/code_of_ordinances • The full Small Area Plan can be found here: http://edinamn.gov/edinafiles/files/City_Offices/Community_Development/ Planning/WooddaleValleyViewSAP/Reports/WVVSAP_4-3-2015.pdf • The MPCA website may contain more information. http://cf.pca.state.mn.us/programs/tank_leak/siteDetail.cfm?id=13187&programIn terest=LS 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-2 Zoning Map 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-3 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-4 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-5 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-6 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-7 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-8 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-9 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-10 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-11 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-12 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-13 4416 Valleyview Road, Edina, Minnesota July 12, 2016 Request for Proposal for Redevelopment Appendix Page A-14