HomeMy WebLinkAbout2016-11-14 HRA Special Closed MeetingAgenda
Housing and Redevelopment Authority Work Session Meeting
City of Edina, Minnesota
Edina City Hall Community Room
Special Closed Session
Monday, November 14, 2016
5:30 PM
I.Call to Order
II.Roll Call
III.Presentation Of Proposals 3930 West 49 1/2 Street
IV.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 properties located at 3930
West 49-1/2 Street and 4416 Valley View Road
V.Closed Session - Potential Sale of Real Estate at 3930 West 49-1/2 Street
VI.Closed Session - Potential Sale of Real Estate - 4416 Valley View Road
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 ampli4cation, an interpreter, large-print documents or something else,
please call 952-927-8861 72 hours in advance of the meeting.
Date: November 14, 2016 Agenda Item #: III.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Presentation Of Proposals 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 required; for discussion purposes only.
INTRODUCTION:
Each of the development teams will be provided time to present their proposals to acquire and redevelop the City-
owned land at 3930 West 49-1/2 Street. After the presentations, the HRA will move to 'closed session' to discuss
the potential sale of real estate.
Date: November 14, 2016 Agenda Item #: IV.
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 properties located at
3930 West 49-1/2 Street and 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 properties located at 3930 West 49-1/2 Street and 4416 Valley View Road.
INTRODUCTION:
In order for the Edina HRA to move into close session to discuss the potential sale of 3930 West 49-1/2 Street,
and 4416 Valley View Road the HRA must first take action to close the meeting. The meeting will continue to be
recorded.
Date: November 14, 2016 Agenda Item #: V.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Closed Session - Potential Sale of Real Estate at 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 requested. For discussion purposes only.
INTRODUCTION:
This discussion involves the potential sale of real estate of City-owned parcel(s) at 50th and France. Four
development teams submitted proposals to redevelop the 3930 parcel to provide new public parking with new
commercial or mixed-use development. The teams include: John Laurent Associates, Good Neighbors
Consortium, Buhl Investors/Saturday Properties, and Doran/KM2 Development. Each team will have an
opportunity to present their proposals before one is selected as the preferred developer.
ATTACHMENTS:
Description
Staff Report: 3930 Presentations
3930 original RFP document
Housing & Redevelopment Authority
Established 1974 November 14, 2016
Members of the Edina Housing & Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Potential Sale of Real Estate – 3930 West 49-1/2 Street
Presentation of Four Proposals
Information /
Background:
Each of the four development teams who responded to the Request for Proposals (RFP)
have been invited to present their proposal for consideration by the Housing and
Redevelopment Authority. The development teams include:
1) John Laurent Associates
2) Good Neighbors Consortium / O’Brien
3) Buhl Investors / Saturday Properties
4) Doran Companies / KM2 Development
Each team will present for 15-20 minutes and will have 10-15 minutes available for
questions. These presentations will be made in a Work Session that is open to the public.
After each team has presented, the audience and presenters will be excused and a “closed
session” will be convened so that the members of the HRA can discuss the terms of the
proposals.
Prior to adjourning, the HRA members will discuss which team can best meet the goals of
this redevelopment effort.
Please remember that the HRA is under no obligation to accept any of these proposals. If
none of the proposals achieve the desired objectives with reasonable terms, all can be
rejected. If the objectives of the RFP can be achieved, final discussion and selection of a
“preferred developer” will occur at a future meeting that is open to the public.
Due to the sensitive nature of real
estate negotiations, this item to
be discussed in Closed Session
(MN Statute 13D.05; Subd 3)
STAFF REPORT Page 2
END
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 1
3930 West 49-1/2 Street
Edina, Minnesota
Request for Proposal – Property Redevelopment
Responses Due Friday September 30, 2016 (4:30 P.M.)
The Edina Housing and
Redevelopment Authority (HRA)
seeks proposals to acquire and
redevelop publicly-owned
property located in the 50th and
France Commercial Area. The
Edina HRA is seeking a qualified
and capable real estate developer
to deliver a new project that
includes new public parking and
new commercial space in a
manner that is successful in the
marketplace and complements
the character of 50th & France.
BACKGROUND
The City of Edina and the Edina HRA have been integrally involved with the 50th & France
Commercial Area for nearly 50 years. The first district parking ramp was constructed in 1968.
A plan to encourage stabilization and growth of the district was approved in 1974 and
streetscape and parking improvements were implemented over the subsequent decades.
50th & France, Edina’s downtown, is a vitally important community and business node. The City
strives to maintain the role of 50th & France as a neighborhood destination for premier
shopping, dining and entertainment with regional appeal.
SITE INFORMATION
Parcel Address: 3930 W. 49-1/2 St.
Parcel I. D. No: 18-028-2414-0026
Parcel Size: 0.37 acres
Zoning Designation: PCD-2
Site Conditions: Vacant lot; remediation completed in 2014
Recent Purchase Price: $2.65 million for a “clean” site (June 2013)
F
r
a
n
c
e
A
v
e
3930
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 2
ADJACENT PARCEL INFORMATION
The City of Edina and Edina HRA also own several adjacent parcels.
Parcel
Address: 3936-3940 W. 49-1/2 St. 3944 W. 49-1/2 St. 3925 W. 49-1/2 St.
Parcel I. D.
No:
18-028-2414-0030
18-028-2414-0034 18-028-2414-0035
18-028-2414-0036
18-028-2414-0032
18-028-2414-0120
18-028-2414-0123
18-028-2414-0023
Parcel Size: 0.57 + 0.15 = 0.72 acres 0.24 acres 0.34 + 0.46 + 0.27 + 0.23
+ 0.23 = 1.53 acres
Zoning: PCD-2 PCD-2 PCD-2
Current Site
Conditions:
North Parking Ramp,
constructed 1991 with
1997 expansion, 260
stalls
Vacant building;
acquired for public
parking expansion in
December 2014 for
$1.55 million
Center Parking Ramp
and Surface Parking Lot,
constructed 1976, 271
stalls
3930
North Parking Ramp
3936-40
Surface Parking
3925
Center Parking Ramp
3925
3
9
4
4
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 3
ZONING INFORMATION
Relevant excerpts from Edina’s zoning regulations are summarized below. The complete zoning
regulations (Chapter 36 of Edina City Code) are found here:
https://www.municode.com/library/mn/edina/codes/code_of_ordinances
Zoning District PDC-2 (Planned Commercial District)
Allowable Uses
(Chapter 36, Article 8, Division 8)
A wide variety of commercial services (retail, services,
restaurant, office, etc.) are allowed; multi-family housing is
also allowed on upper levels of a building
Maximum FAR
(Sec. 36-617(a)) 1.5
Maximum Height
(Sec. 36-617(c))
As required by setbacks, but not to exceed 4 stories or 48
feet, whichever is less
Required Parking
(1974 50th & France Plan)
Public ramps may be used to serve parking up to a
maximum 1.0 FAR. Sites approved with a higher FAR must
provide private parking on site for the portion of the
building larger than FAR 1.0.
Required Setbacks
(Sec. 36-617(b))
Front: to match adjacent setbacks
Side: not applicable
Rear: 25 feet or building height
Exterior Wall Finishes
(Sec. 36-618(11)a)
Allowable materials include: face brick, natural stone,
precast concrete units with decorative materials, metal
framed panels, glass and prefinished metals.
NOTE: Traditional materials (like standard size face brick with stone
accents are strongly preferred to maintain the existing character of
the 50th & France District)
Housing Density
(Amended Comp. Plan, Table 4.3) 30 units per acre
Housing Affordability
(2015 City Policy)
10% of units must be affordably-priced for projects with
greater than 20 units or alternate means must be provided
Deviations from Ch. 36
Standards
(Sec. 36-95)
Variances or rezoning (including PUD) may be considered
through the City of Edina’s standard development review
process.
Utility Connection Fees Standard utility fees (SAC, WAC, REC, etc) apply.
Storm Water
Most parcels in this area were not designed to meet
current storm water standards. Redevelopment parcels
must comply with requirements of Minnehaha Creek
Watershed District.
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 4
OTHER RELATED DEVELOPMENT INFORMATION
In recent years, the City of Edina and Edina HRA have explored alternatives for public parking.
2011 Walker
Parking Study
Identified the need for 140 to 200 additional parking stalls to better
serve the District. This accommodates anticipated demand during
regular business hours as well as the peak time during the peak holiday
season.
2012 North Ramp
Expansion Study –
East (3930)
Estimated that a total of 131 new parking spaces could be constructed
on three levels - 37 spaces on the ground floor with 47 spaces on the
second and third floors.
2012 North Ramp
Expansion Study –
West (3944)
Estimated that 27 to 52 new parking spaces could be constructed on
one or two levels, with 4,900 square feet of commercial space on the
street level.
2014 P-23
Feasibility Study
Identified the preference to expand public parking on upper or lower
levels and to encourage new commercial activity on the street level.
2015 KHA North
Ramp Expansion
Study
Confirmed that the existing North Ramp has the strength to
accommodate one additional level of parking, provided that a few
critical structural elements can be upgraded. This vertical expansion
could deliver approximately 75 new parking spaces. The estimated
cost of this work is $3.4 million, including design, construction, and
construction oversight.
Environmental
Clearance
The MN Pollution Control Agency (MPCA) provided a “No Further
Remediation” letter for the 3930 parcel after the building was razed
and remediation completed in 2014.
EXPECTATIONS OF ALL PROPOSALS
1) Compliance with Edina Comprehensive Plan and consistency with applicable portions of
Southdale Area Principles.
2) Increased taxable value.
3) Additional public parking stalls.
4) Commercial space on street level.
5) Inclusion of adjacent parcels, if possible, to add street life and commercial vibrancy on
West 49-1/2 Street
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 5
6) Proposals that include new housing must comply with Edina’s Affordable Housing Policy.
In short, 10% of the units must be affordably-priced to households earning no more than
60% of the Area Median Income or an equivalent monetary contribution must be
provided to construct these units elsewhere in Edina.
7) Upper levels are encouraged to align (vertically) with the adjacent North Parking Ramp.
The existing entrances to the North Ramp can also provide access to the 3930 site.
8) The faces of the proposed building adjacent to public streets must step back at the 2nd
or 3rd level and the building elevations must be well articulated to achieve a human-scale
that is consistent with the existing character of 50th and France.
9) Finish materials must be consistent with the existing character of 50th & France. Strong
preference is given to natural brick and stone. Synthetic materials, other than
miscellaneous trim, is discouraged.
10) Public sidewalks, at least 10 feet in width must be provided along all streets and should
match the existing brick pavers. Stamped and colored concrete will be considered, but
current preferences favor natural brick pavers. The sidewalk itself must be at least 6 feet
while the boulevard should be hardscaped with street trees and landscaping in character
with the streetscapes along West 50th Street.
11) The redeveloped site must include a plaza, podium, or similar space where public art can
be displayed.
12) Any impacted Metro Transit bus stop must be replaced and improved.
13) The parcel is anticipated to be sold for market-value. Land write-downs will only be
considered if 70 or more stalls of public parking are provided on the site.
14) Any impact or damage to the existing public parking facilities or public improvements in
the right-of-way must be repaired or replaced by the Developer.
15) Any loss of public parking stalls in the existing public parking facilities must be replaced
at a one per one (1:1) ratio.
16) Although a No Further Remediation letter has been received, the Developer is solely
responsible, if necessary, to remediate any environmental contaminants to the
satisfaction of the MN Pollution Control Agency or other regulating body.
17) The City may support and/or sponsor grant applications to outside agencies as deemed
necessary by the Developer.
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 6
DEVELOPER SELECTION AND APPROVAL PROCESS
A multi-step process will be used to identity the preferred developer and to secure required approvals
to proceed with a real estate transaction and construction.
Stage 1: Developer Selection Outcome:
Preferred
Developer
announced in
October-November
2016.
Staff will review all Proposals and invite up to three developers to
present to the HRA Board of Commissioners on Tuesday October 18,
2016 at 5:30 P.M. The Commissioners 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.
Selection of a Preferred Developer does NOT guarantee that the original
proposal will be approved by the Planning Commission or Edina City
Council. All projects that require a variance or rezoning will be
considered through the City’s standard development review process.
Stage 2: Preparation of Transaction Documents Outcome: Parties
enter into a formal
agreement by
January 2017.
Staff and special legal counsel 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 to present the project to the Edina
Planning 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/Summer
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 GUARANTEE 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 Fall 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.
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 7
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, its likely users, estimated start date,
completion date, full-occupancy date and approximate development cost;
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; developer fees and estimated profitability must be identified if a land write-
down is proposed;
11) Preliminary site plan;
12) Conceptual elevations, floor plans and renderings to illustrate the proposed project;
13) Anticipated finish materials;
14) Identification of any variances, re-zoning, or amendments to Comprehensive Plan; and
15) Any other information that is critical to the City’s and HRA’s ability to evaluate the
proposal.
Respondents are encouraged to be thorough, yet concise. Submission is due by 4:30 P.M.
on Friday September 30, 2016. The Proposal must be submitted in electronic format
(email or flash drive preferred) with 10 printed hard copies delivered to:
Edina Housing and Redevelopment Authority
4801 West 50th Street
Edina, MN 55424
Attention: Bill Neuendorf, Economic Development Manager
3930 West 49-1/2 Street, Edina, Minnesota August 17, 2016
Request for Proposal – Property Redevelopment Page 8
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. The selection team may also include
representatives from the 50th & France area.
Submittals will be evaluated on the following criteria:
• Compliance with height restriction and minimized impact to residential properties north
of the site (up to 15 points)
• Assembly of adjacent or nearby parcels (up to 10 points)
• Anticipated growth in taxable value (up to 10 points)
• Creation of new public parking (up to 20 points)
• Creation of new commercial space (up to 15 points)
• Creation of new market rate housing units (up to 10 points)
• Creation of public plaza or similar public areas (up to 5 points)
• Reduction of existing curb cuts and vehicle-pedestrian conflict points (up to 5 points)
• Capacity of team to complete project (up to 10 points)
Selected responders will be invited to give in-person presentations to the Edina HRA tentatively
scheduled on Tuesday October 18, 2016 at 5:30 P.M. The Edina HRA 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 shortly thereafter.
TERMS
This is a Request for Proposals and in no way obligates the responder to enter into a
relationship with the Edina HRA. Nor does this request obligate the Edina HRA to enter into a
relationship with any entity that responds, nor does it limit or restrict the Edina HRA’s right to
enter into a relationship with any entity that does not respond to this request.
In its sole discretion, the Edina HRA may pursue discussions with one or more entities
responding to this request, or none at all. The Edina HRA 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 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.
Please direct questions about this Request for Proposal solely to Bill Neuendorf, Economic
Development Manager at 952-826-0407 or bneuendorf@EdinaMN.gov. Please do not contact
elected officials or other staff members. Responses will be provided and posted online to
questions received before 4:30 P.M. on Friday September 30, 2016.
Date: November 14, 2016 Agenda Item #: VI.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Closed Session - Potential Sale of Real Estate - 4416
Valley View Road
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 required; for discussion purposes only.
INTRODUCTION:
This item pertains to the potential sale of City-owned real estate at 4416 Valley View Road.
ATTACHMENTS:
Description