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HomeMy WebLinkAbout2016-12-20 HRA Regular MeetingAgenda H ousing and Redevelopment Authority Meeting City of Edina, Minnesota Edin a City Hall Cou n cil Cham be rs Tuesday, December 20, 2016 7:00 PM I.Call to Order II.Roll Call III.Approva l of Meeting Agenda IV.Adoption of Consent Agenda All a genda items listed on the consent agenda are considered routine and will be ena cted by one motion. There will be no separate discussion of such items unless requested to be remov ed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be remov ed from the Consent Agenda and considered immediately following the a doption of the Consent Agenda. (Favorable rollcall v ote of majority of HRA Commissioners present to approve.) A.Approv e Minutes of December 7, 2016 Regular HRA Meeting B.Pentagon Park Stormwater Ma nagement Plan Cooperative Agreement V.Resolution 2016-07: Naming Buhl Investors/Saturday Properties as Preferred Dev elopment Partner for 3930 West 49-1/2 Street and Adjacent Parcels VI.Adjournment The Edina Housing a nd Redevelopment Authority wants all pa rticipants to be comforta ble being pa rt of the public process. If you need assistance in the way of hearing ampli:cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: Dec ember 20, 2016 Agenda Item #: IV.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Deb ra A. Mangen, City Clerk Item Activity: Subject:Ap p ro ve Minutes o f December 7, 2016 R egular HRA Meeting Edina Housing and Redevelopment Authority Established 1974 CITY O F EDINA HOUSING & REDEVELOPMENT AUT HORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve minutes as presented. INTRODUCTION: ATTACHMENTS: Description Draft Minutes December 6, 2016 HRA Meeting Page 1 MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 7, 2016 12:37 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 12:37 A.M. on December 7, 2016. II. ROLLCALL Answering rollcall were Commissioners Brindle, Staunton, Stewart, Swenson and Chair Hovland. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Stewart, seconded by Commissioner Brindle approving the Meeting Agenda. Ayes: Brindle, Staunton, Stewart, Swenson, Hovland Motion carried. IV. CONSENT AGENDA ADOPTED Commissioner Swenson seconded by Commissioner Staunton approving the consent agenda as follows: IV. A. Approve minutes of November 14, 2016 HRA Work Session and November 15, 2016 Regular HRA Meeting B. Approve Professional Service Agreement: Grandview Green Preliminary Study with Architectural Field Office LLC for a maximum cost of $65,000.00 V. PUBLIC HEARING: REVIEW OF 2017 HRA BUDGET, RESOLUTION NO. 2016-06: SETTING 2017 TAX LEVY AND ADOPTING 2017 OPERATING BUDGET Chair Hovland noted Finance Director Roggeman had included the HRA proposed budget and tax levy during his City Council presentation. He opened the Public hearing for comments on the proposed HRA 2017 Operating Budget and Tax Levy. No one appeared to speak. Commissioner Brindle made a motion to close the public hearing. Commissioner Swenson seconded by the motion. Ayes: Brindle, Staunton, Stewart, Swenson, Hovland Motion carried. Commissioner Swenson made a motion seconded by Commissioner Brindle to adopt Resolution No. 2016-06 setting the 0217 Tax Levy and adopting the 2017 Operating Budget. Ayes: Brindle, Staunton, Stewart, Swenson, Hovland Motion carried. VI. ADJOURNMENT Chair Hovland declared the meeting adjourned at 12:42 A.M. December 7, 2016. Respectfully submitted, Scott Neal, Executive Director Date: Dec ember 20, 2016 Agenda Item #: IV.B. To:Chair & Commissioners of the Edina HRA Item Type: R ep o rt / Rec o mmendation From:Ro s s Bintner P.E., Engineering S ervic es Manager Item Activity: Subject:Pentagon P ark Sto rmwater Management P lan Co o p erative Agreement Action Edina Housing and Redevelopment Authority Established 1974 CITY O F EDINA HOUSING & REDEVELOPMENT AUT HORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Motion approving Cooperative Agreement for P entagon P ark Area Stormwater Management P lan. INTRODUCTION: T he attached report describes change in flood risk affecting an area northeast of highways 494 and 100 and a proposed agreement with the Nine Mile Creek Watershed District and City of Bloomington to study the issue and create a regional stormwater management plan. ATTACHMENTS: Description Staff Report Cooperative Agreement for Pentagon Park Stormwater Management Plan May 6, 2016 Revis ed Atlas 14 Flood Ris k Management Elevations Letter to Nine Mile Pentagon Revival LLC Letter to City on Revis ed Flood Elevation Nine Mile Waters hed 77th Street Area 1% Probability Flood Inundation Map December 20, 2016 Chair and Members of the Edina Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager Ross Bintner P.E., Engineering Services Manager Pentagon Park Stormwater Management Plan Cooperative Agreement Information / Background: The Nine Mile Creek Watershed District updated flood risk models in 2015, using new NOAA Atlas 14 1% probability (100-year) flood event. As a result of this change the commercial area northeast of highways 494 and 100 has recently been shown to be at increased risk for the 1% probability event. For more detail see attached flood inundation map. In a May 6, 2016 letter, staff requested assistance from Nine Mile Creek District and asked the District to take an active role in planning and communicating the management of flood risk for this area. In response, the District proposes the attached cooperative agreement and scope of service, with costs to be split: 50% Nine Mile Watershed District; 33.5% Edina; and 16.5% Bloomington. This cost split approximates the drainage area and benefitting property balance between the cities. The scope of service would create a regional stormwater management plan developed with input from the cities, and private property owners. Staff proposes paying this cost from the Pentagon Park TIF District through the Housing and Redevelopment Authority (HRA.) The cost proposed is not to exceed $20,000. The work would begin immediately and be completed by summer 2017. Attachments: Cooperative Agreement for Pentagon Park Stormwater Management Plan and Exhibits May 6, 2016 Revised Atlas 14 Flood Risk Management Elevations Letter to Nine Mile Pentagon Revival LLC Letter to City on Revised Flood Elevation Nine Mile Watershed 77th Street Area 1% Probability Flood Inundation Map 1 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study COOPERATIVE AGREEMENT Among Nine Mile Creek Watershed District, Housing and Redevelopment Authority of Edina, City of Bloomington Pentagon Park Stormwater Management Plan This agreement is made by and among the Housing and Redevelopment Authority of Edina, a Minnesota housing and redevelopment authority with purposes and powers set out in Minnesota Statutes chapter 469 (Edina HRA); the City of Bloomington, a statutory city and body corporate and politic of the State of Minnesota (Bloomington); and the Nine Mile Creek Watershed District, a watershed organization with purposes and powers set out in Minnesota Statutes chapters 103B and 103D (NMCWD), for purposes of joint development of a regional stormwater and flood management plan for the shared Pentagon Park/Border Basin catchment area. WHEREAS the 700-acre Pentagon Park/Border Basin area, depicted in Exhibit A and referred to hereinafter as “Pentagon Park,” lies entirely within the Nine Mile Creek watershed, in part in Bloomington and in part within the boundaries of the City of Edina, and includes significant tracts of public land, as well as a number of privately owned parcels; WHEREAS Pentagon Park is an important commercial, office and industrial district for both Edina HRA and Bloomington, and is a focus for critical and extensive ongoing redevelopment planning efforts by both cities; WHEREAS the topographic and drainage conditions of Pentagon Park make it susceptible to stormwater inundation and flooding, and rain events of increasing intensity and volume – as described by the National Weather Service’s Atlas 14 rainfall data – will add to the challenge of sustainably redeveloping the area in compliance with applicable regulatory requirements, including but not limited to NMCWD’s stormwater- management and floodplain-protection standards; WHEREAS NMCWD has developed a stormwater hydraulic model that can be used to generate stormwater flow volume and rate information, flood elevations, floodplain delineations and related data (the Model) for application to watershed-wide planning, as well as to the evaluation of the local consequences of redevelopment and public infrastructure projects, and at the direction of the NMCWD Board of Managers, the NMCWD engineer utilized the Model to develop preliminary flood-elevation information for Pentagon Park; WHEREAS the NMCWD engineer and staff has presented the results of the modeling analysis to staff at both Edina HRA and Bloomington; WHEREAS in response to a request from Edina HRA staff, the NMCWD Board of 2 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study Managers directed NMCWD staff and its engineer, Barr Engineering, to develop a scope of work that includes evaluation, in consultation with Edina HRA and Bloomington, of flood- management and regional stormwater-management scenarios, as well as development of regional redevelopment design guidelines and a regional stormwater- management plan (all told, the Project), and the resulting November 9, 2016, scope of work is attached hereto and incorporated herein as Exhibit B; and WHEREAS Bloomington, Edina HRA and NMCWD are authorized by Minnesota Statutes section 471.59 to enter into this cooperative agreement for the Project. Agreement NOW, THEREFORE, BLOOMINGTON, EDINA HRA AND NMCWD enter into this agreement to document their mutual understanding as to the scope of the Project and facilitate communication and cooperation to successfully complete the Project. 1. Conduct of the Project a. NMCWD will enter a professional-services contract with Barr Engineering for completion of the tasks specified and the submission of work product described in Exhibit B. Notwithstanding the foregoing, NMCWD makes no warranty to Edina HRA or Bloomington regarding the NMCWD engineer’s or any other party’s performance in completing the Project. b. The professional-services contract between NMCWD and Barr Engineering for the Project will identify Edina HRA and Bloomington each as an intended beneficiary of the Project, will extend the duty of care, insurance and indemnification requirements to NMCWD, Edina HRA and Bloomington, and will state that Edina HRA, Bloomington and NMCWD jointly share the right to use the work product and rights in the event of a breach of the contract by Barr Engineering. c. NMCWD, in collaboration with the representatives of each of Edina HRA and Bloomington identified in section 4, below, will direct Barr Engineering’s completion of the Project. Edina HRA and Bloomington each will have input in the conduct of the Project through the structured meetings and review opportunities described in Exhibit B. Each party to this agreement will be provided with reasonable opportunity to review, comment on, request changes to and approve work product, except that no single party may materially revise or amend the scope of work to be completed under the terms of this agreement. NMCWD retains its discretion as the principal contracting party to direct the performance of the Project and to administer the contract with Barr Engineering. Any written communication between any party to this agreement and Barr Engineering related to the subject matter of this agreement will be concurrently copied to the other parties. 3 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study d. NMCWD, Bloomington and Edina HRA will facilitate Barr Engineering’s performance of the Project by all reasonable means within their administrative capacity. If Barr Engineering requires entry onto public or private property for the purpose of the Project, Edina HRA or Bloomington, as appropriate, will use its good offices to assist in securing any necessary permissions. e. The parties to this agreement will use the work product of the Project in good faith to explore stormwater-management and flood-management practices, designs, projects and other such opportunities, to be pursued jointly and individually. However, nothing in this agreement obligates any of NMCWD, Bloomington or Edina HRA to any specific further undertaking or any commitment of funds beyond the funding of and participation in the Project as set forth herein. f. The exercise of regulatory authority by the NMCWD Board of Managers and, as delegated, NMCWD staff may not be and is not modified in any way by this agreement. NMCWD’s participation in the Project notwithstanding, no representation or warranty is made as to whether specific land-disturbing activities undertaken in reliance on the work products of the Project will comply with NMCWD rules. Further, NMCWD does not warrant and will not be liable for the actions of or failure to act by any third-party regulatory entity. 2. Cost Sharing a. NMCWD will pay the costs of completion of the scope of work in Exhibit B in accordance with its contract with Barr Engineering and applicable state law. b. Work product created for the Project will acknowledge financial support from each of NMCWD, Bloomington and Edina HRA. c. Within 30 days of written notification from NMCWD of NMCWD’s payment of a Barr Engineering invoice for the Project, Edina HRA will reimburse NMCWD 33.5 percent of the invoice amount, up to an aggregate total for the Project not to exceed $20,000. d. Within 30 days of written notification from NMCWD of NMCWD’s payment of a Barr Engineering invoice for the Project, Bloomington will reimburse NMCWD 16.5 percent of the invoice amount, up to an aggregate total for the Project not to exceed $9,800. e. Each party will pay the internal and incidental costs of its participation in the Project not otherwise specified as subject to cost-sharing as specified in herein, including but not limited to costs of staff time and materials for participation in and facilitation of the Project. 3. Independent relationship; liability. This agreement does not create a joint powers board or organization within the meaning of Minnesota Statutes section 471.59, and no party agrees to be responsible for the acts or omissions of the any other pursuant to 4 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study subdivision 1(a) of the statute. Only contractual remedies are available for the failure of a party to fulfill the terms of this agreement. NMCWD, Bloomington and Edina HRA enter this agreement solely for the purposes of the Project. Accordingly, with respect to any and all activity undertaken pursuant to this agreement, NMCWD, Bloomington and Edina HRA each will hold harmless, defend and indemnify the others, their officers, employees and agents for all claims, damages, liabilities, losses and expenses asserted against either or both of the other parties at any time by a third party, including any governmental body, arising from, in whole or in part by any negligent act or omission or willful misconduct of the indemnifying party, the indemnifying party’s officers, agents, employees or subcontractors.. The parties to this agreement are not liable for the acts or omissions of either or both of the other parties to this agreement. This agreement creates no right in and waives no immunity, defense or liability limitation with respect to any third party. The parties do not waive any the limitation of liability provided under Minnesota Statutes chapter 466. 4. The representatives of the parties with respect to this agreement are as follows: NMCWD: Administrator Nine Mile Creek Watershed District ranhorn@ninemilecreek.org 952-835-2078 12800 Gerard Dr. Eden Prairie MN 55346 Edina HRA: Engineering Services Manager City of Edina RBitner@EdinaMN.gov 952-903-5713 7450 Metro Blvd Edina MN 55439 Bloomington: Water Resources Engineer City of Bloomington bgruidl@BloomingtonMN.gov 952-563-4557 1800 W. Old Shakopee Road Bloomington MN 55431 5. Data Practices. All data created, collected, received, maintained or disseminated for any purpose in the course of this agreement is governed by the Data Practices Act, 5 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study Minnesota Statutes chapter 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. 6. Entire agreement. This agreement contains the complete and entire agreement among the parties relating to the subject matter hereof, and supersedes all prior negotiations, agreements, representations and understandings, if any, among the parties respecting such matters. The recitals stated at the outset are incorporated into and are a part of the agreement. 7. Waiver. The waiver by NMCWD, Edina HRA or Bloomington of any breach or failure to comply with any provision of this agreement by either or both of the other parties will not be construed as nor will it constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this agreement. 8. Term; termination. This agreement is effective on execution by all three parties and will terminate one year from the date of execution of the latest amendment hereto or on the written agreement of all three parties. IN WITNESS WHEREOF, the parties have caused the agreement to be duly executed intending to be bounded thereby. (Signature page follows.) 6 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study CITY OF BLOOMINGTON _______________________________ Date: _____________________ By _____________________________ Its _____________________ _______________________________ Date: _____________________ By _____________________________ Its _____________________ Approved as to form & execution: _____________________________ Bloomington City Attorney HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA _______________________________ Date: _____________________ By _____________________________ Its _____________________ _______________________________ Date: _____________________ By _____________________________ Its _____________________ Approved as to form & execution: _____________________________ Edina City Attorney NINE MILE CREEK WATERSHED DISTRICT _______________________________ Date: _____________________ By Randy Anhorn Its administrator Approved as to form & execution: _____________________________ NMCWD counsel 7 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study Exhibit A Pentagon Park/Border Basin Study Area 8 Nine Mile Creek Watershed District-Housing and Redevelopment Authority of Edina-City of Bloomington Pentagon Park study Exhibit B Scope of Work – Pentagon Park/Border Basin Regional Stormwater Management November 9, 2016 Edina Bloomington Richfield Lake Edina §¨¦494 §¨¦494 100 100 456731456717 Yo r k A v e S Fr a n c e A v e W 78th St W 70th St We s t S h o r e D r W 77th St Dunberry La Co r n e l i a D r W 69th St Pa r k l a w n A v e Wo o d d a l e A v e W American Blvd Xe r x e s A v e S Hibiscus Ave Hazelton Rd Gilford Dr Mavelle Dr Fr a n c e A v e S Pi c t u r e D r Ly n m a r L a Fonde l l D r Co m p u t e r A v e Edina Industrial Blvd Viking Dr Cr e s t o n R d Ga l l a g h e r D r Po i n t D r Ellsw o r t h D r Wa s h b u r n A v e S Ke l l o g A v e Dunh a m D r Sedum La Ke l l o g g A v e Clare m o r e D r Gl o u c h e s t e r D r Da w s o n L a Br i s t o l B l v d Yo r k T e r Sou t h d a l e R d Oa k l a w n A v e Andover Rd Be l t l i n e H w y Belvidere La He a t h e r t o n T r Gl o u c h e s t e r A v e W 72nd St Judson L a Sa n d e l l A v e Val l e y V i e w R d Clar e m o r e C t Yo r k A v e S He a t h e r t o n T r Xe r x e s A v e S W 70th St W 70th St W Ameri c a n B l v d Fr a n c e A v e W 70th St Oa k l a w n A v e Ba r r F o o t e r : A r c G I S 1 0 . 4 . 1 , 2 0 1 6 - 0 7 - 0 5 1 4 : 0 1 F i l e : I : \ C l i e n t \ N i n e _ M i l e _ C r e e k _ W D \ W o r k _ O r d e r s \ P e n t a g o n _ P a r k _ U p d a t e s \ M a p s \ M e e t i n g s \ A t l a s _ 1 4 _ U p d a t e _ I n u n d a t i o n _ M a p p i n g . m x d U s e r : b a l I 800 0 800 Feet EXHIBIT A Pentagon Park/Border Basin Study AreaNine Mile Creek Watershed DistrictHennepin County, Minnesota Creek Centerline Municipal Boundary District Legal Boundary Tributary Drainage Area Nine Mile Creek Centennial Lakes Border Basin Study Area Study Area Parcels Edina Eden Prairie Bloomington Minnetonka Richfield Hopkins Barr Engineering Co. 4300 MarketPointe Drive, Suite 200, Minneapolis, MN 55435 952.832.2600 www.barr.com Edina Eden Prairie Bloomington Minnetonka Richfield Hopkins The red box shows the Pentagon Park/Border Basin area in relation to the Nine Mile Creek watershed. November 9, 2016 Randy Anhorn District Administrator Nine Mile Creek Watershed District 12800 Gerard Drive Eden Prairie, MN 55346 Re: Proposed Scope of Work: Pentagon Park/Border Basin Regional Stormwater Management Plan Dear Mr. Anhorn: Thank you for requesting us to assist the Nine Mile Creek Watershed District (NMCWD) with this project. This letter outlines a proposed scope of work, budget, and schedule to evaluate regional flood and stormwater management options for the Pentagon Park/Border Basin area. The proposed scope of work includes development of planning level cost estimates for up to three flood improvement alternatives and preparation of stormwater management guidelines for future redevelopment in the Pentagon Park/Border Basin area of Edina and Bloomington. Background The Pentagon Park/Border Basin Area is a commercial, office and industrial park area located just north of Interstate 494 and east of Trunk Highway 100 within the cities of Edina and Bloomington. The area is bounded on the north by the former Fred Richards Golf Course. The watershed tributary to the Pentagon Park/Border Basin Area is approximately 700 acres, including the Centennial Lakes watershed. There are two primary flow paths through the area. Approximately 200 acres are tributary to the ponds on the former Fred Richards Golf Course on the north side of the Pentagon Park area, and 400+ acres are tributary to the Border Basin (South Pond) located west of the intersection of West 77th Street and Minnesota Drive along the Edina/Bloomington border. Stormwater from both of these ponding areas, and from the direct Pentagon Park watershed, is collected by a 97-inch x 154-inch reinforced concrete arch pipe that discharges to Nine Mile Creek approximately 900 feet downstream of the West 77th Street crossing of the creek. Much of the Pentagon Park/Border Basin area is low-lying and becomes inundated during large storm events. Results from the Atlas 14 hydrologic and hydraulic model update completed by the District in November 9, 2016 Page 2 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx 2016 indicate that 100-year flood management elevations in the Pentagon Park area are considerably higher than previously established flood elevations (ranging from 0.4 to 2.2 feet higher). Figure 6 from Barr’s January 20, 2016 memorandum to the NMCWD Board (Atlas 14 Revised Flood Management Elevations) shows the 100-year flood inundation in the Pentagon Park area (enclosed). On May 6, 2016, the NMCWD received a letter (enclosed) from the City of Edina requesting that the NMCWD assist the City with addressing flood management issues resulting from the revised Atlas 14 flood management elevations and reaffirming the modeling methodology used to determine the Atlas 14 flood elevations. Although not specifically addressed in the May 6, 2016 letter, City staff has since requested assistance from the NMCWD in addressing increased flood management elevations in the Pentagon Park area. Significant portions of the Pentagon Park area are either currently undergoing redevelopment or will be redeveloped in upcoming years, so addressing the situation in a timely manner is important to the City and the District. At the NMCWD May 18, 2016 Board meeting, the Managers discussed Edina’s May 6, 2016 letter and directed District staff and consultants to reaffirm the Pentagon Park Area modeling methodology and results and continue to work with the City in developing a plan for addressing the potential flooding issues in this area. Since then, Barr has reviewed the XP-SWMM model for the Pentagon Park area and completed updates to the model to reflect the most recent elevation data available (2011 LiDAR data from the Minnesota Department of Natural Resources). NMCWD and Barr staff attended a meeting on July 6, 2016 with City of Edina staff to discuss stormwater management issues in the Pentagon Park area and potential options for addressing these issues as the area redevelops. At the NMCWD July 20, 2016 Board meeting, the Managers directed staff to prepare a scope of work for addressing flooding and stormwater management issues in the Pentagon Park Area resulting from the updated Atlas 14 precipitation frequency estimates and the proposed redevelopment. District and Barr staff attended a meeting with City of Bloomington staff on August 5, 2016 to discuss the Atlas 14 flood management elevations in the area and potential impacts to redevelopment. Project Understanding The Pentagon Park/Border Basin Area receives runoff from a drainage area of approximately 700 acres, including portions of Edina, Richfield, and Bloomington. Portions of this area have historically been inundated during large rainfall events due to the large drainage area, the low-lying nature of the area and limited discharge capacity to the creek during large rainfall events due to tailwater impacts. 100-year flood management elevations have increased since the Atlas 14 precipitation frequency estimates were incorporated in the NMCWD’s hydrologic and hydraulic model. Significant portions of the Pentagon Park/Border Basin Area are expected to undergo redevelopment in the near future. This includes the former Fred Richards Golf Course, for which a master plan development process is underway by the City of Edina Parks Department. The recent increase in flood management elevations in this area resulting from the Atlas 14 precipitation frequency estimates will pose a challenge November 9, 2016 Page 3 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx to redevelopment efforts, including significant site building constraints and regulatory restrictions that may, in some cases, hinder redevelopment potential. Given the increased flood risks and active redevelopment, the cities of Edina and Bloomington have requested assistance from the NMCWD to develop a regional flood and stormwater management plan for this area to identify options to alleviate flood risk and guide stormwater management for future redevelopment. The plan will include consideration of storing additional stormwater upstream and/or on the former Fred Richards golf course, planning for regional stormwater management opportunities, and developing site development best practices to guide stormwater management as redevelopment occurs. Although agreements are not formally in place, the intention is to pursue this project as a partnership between the NMCWD and the cities of Edina and Bloomington. Scope of Work The proposed scope of work has been organized into six project tasks, which are described in further detail below. Four stakeholder meetings (described in Task 6) will be held throughout the project. Task 1 – Problem Definition As previously described, Barr has already begun evaluating the flooding issue in the Pentagon Park/Border Basin area to gain a better understanding of the problem, including the following tasks: • Conducting a comparison of peak 100-year flood elevations within the study area using precipitation frequency estimates from the U.S. Weather Bureau Technical Paper (TP) 40 (1961) and the National Oceanic and Atmospheric Administration (NOAA) Atlas 14 (2013), including preparation of maps showing approximate inundation areas. • Conducting meetings with staff from the NMCWD and cities of Edina and Bloomington staff to present and discuss the flood comparison and related concerns, share information regarding future redevelopment in the study area, and discuss the scope of a regional flood and stormwater management plan. • Updating relevant portions of the existing conditions XP-SWMM model used in the update of the Nine Mile Creek flood profile to reflect the most recent topography dataset and building footprints within the Pentagon Park/Border Basin study area. As part of this proposed scope of work, Barr will further define the problem, including the following tasks: 1. Summarizing the runoff volume contributed to the redevelopment area by the upstream area. 2. Summarizing the peak flows to and from the Pentagon Park/Border Basin area. 3. Summarizing the peak flood elevation and inundation volume for each parcel within the redevelopment area for the 10- and 100-year frequency storm events. 4. Compiling a comparison of these elevations to existing structures within the redevelopment area. 5. Reviewing historic aerial photos to determine historic wetland areas within the study area. November 9, 2016 Page 4 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx Task 2 –Evaluation of Flood Improvement Scenarios Task 2 encompasses identification and evaluation of improvement scenarios to decrease flood elevations within the Pentagon Park/Border Basin area. The NMCWD will work closely with city staffs through a series of meetings to evaluate the feasibility, effectiveness, and downstream impacts of identified improvement scenarios. Potential scenarios may include: a. Increased storage in the upstream contributing area b. Diversion of runoff from the upstream contributing area to a different creek outfall c. Increased regional storage within the redevelopment area d. Restoration of historic wetlands within the study area to attenuate flow rates e. Increased outflow conveyance at the downstream end of the redevelopment area This work task includes the following activities: 1. Evaluating the effectiveness of preliminary flood improvement scenarios using the NMCWD XP- SWMM model. 2. Refining improvement scenarios based on stakeholder feedback (Stakeholder Meeting #1), including additional modeling and summarizing the results. 3. Preparing planning-level opinions of probable cost for construction for up to three flood improvement scenarios. Task 3 – Evaluation of Regional Stormwater Treatment Scenarios Task 3 encompasses identification and evaluation of options to provide regional stormwater treatment within the Pentagon Park/Border Basin area, including volume control and water quality treatment. Regional stormwater treatment would allow developers to “buy in” to regional treatment systems in lieu of designing and implementing systems for each individual parcel amid complicated site constraints. This work task includes the following activities: 1. Identifying and evaluating opportunities for regional stormwater volume control and water quality treatment, such as infiltration opportunities and/or stormwater storage and re-use. Preliminary ideas will be identified and discussed at Stakeholder Meeting #2. 2. Quantifying volume control and water quality treatment benefits using P8, the MIDS calculator, or other appropriate models. 3. Discussing and addressing potential conflicts and pathways for conformance with NMCWD rules. 4. Refining regional stormwater volume control and water quality treatment scenarios based on Stakeholder Meeting #3. 5. Preparing planning-level opinions of probable cost for construction for up to two regional stormwater treatment scenarios. Task 4 – Prepare Regional Redevelopment Design Guidelines This work task includes development of regional redevelopment design guidelines that identify specific stormwater management requirements and/or options for future private redevelopment within the Pentagon Park/Border Basin study area. The design guidelines will include discussion on implementation November 9, 2016 Page 5 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx of and conformance with the District’s stormwater management rules. Draft redevelopment design guidelines will be presented to stakeholders, including city staff and interested private development representatives, and finalized based on stakeholder feedback. Task 5 – Prepare Regional Stormwater Management Plan/Report Task 5 includes development of a regional stormwater management plan, documenting the analysis and recommendations for flood improvements and regional stormwater management. The plan will also discuss/document management policies and maintenance agreements. This work task includes the following activities: 1. A draft regional stormwater management plan document for review by stakeholders 2. A finalized regional stormwater management plan Task 6 – Stakeholder Involvement This work task includes conducting four stakeholder meetings, which will be held at Barr Engineering Co. The meetings are summarized further below 1. Conducting Stakeholder Meeting #1 with NMCWD and City staff to present problem background and description, discuss analysis and results of preliminary flood improvement scenarios and solicit feedback on refinements to flood improvement scenarios. 2. Conducting Stakeholder Meeting #2 with NMCWD and City staff to discuss modeling results and cost estimates for evaluated improvement scenarios. The meeting will also include discussion regarding regional stormwater treatment options for future redevelopment within the study area and preparation of redevelopment design guidelines that align with the regional stormwater management plan. 3. Conducting Stakeholder Meeting #3 with NMCWD, City staff, and interested private development representatives to discuss regional treatment opportunities within the study area and preparation of redevelopment design guidelines. 4. Conducting Stakeholder Meeting #4 with NMCWD, City staff, and interested private development representatives to review and provide feedback on draft report and draft redevelopment design guidelines. 5. Conduct presentation to NMCWD Board of Managers 6. Conduct study sessions (2) with Bloomington and Edina City Councils November 9, 2016 Page 6 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx Project Schedule and Meetings Table 1 outlines the proposed project schedule. Work shall commence immediately upon agreement to this scope of work. Table 1. Proposed project schedule. Task Name Estimated Completion Date Stakeholder Meeting #1 November 2016 Stakeholder Meeting #2 January 2017 Stakeholder Meeting #3 March 2017 Completion of Draft Regional Redevelopment Design Guidelines & Draft Regional Stormwater Management Plan/Report April 2017 Stakeholder Meeting #4 April 2017 Study Sessions with City Councils May 2017 Completion of Final Regional Redevelopment Design Guidelines & Draft Regional Stormwater Management Plan/Report May 2017 Project Budget The estimated cost to complete the proposed scope of work is $ 56,500. The scope of work and cost estimate can be revised at any time as the project proceeds. The proposed work described will be conducted on a time and expenses basis. Table 2. Proposed project budget Task No. Task Name Estimated Hours Estimated Budget 1 Problem Definition 50 $4,500 2 Evaluation of Flood Improvement Scenarios 106 $12,000 3 Evaluation of Regional Stormwater Treatment Scenarios 80 $9,500 4 Prepare Regional Redevelopment Design Guidelines 90 $9,000 5 Prepare Regional Stormwater Management Plan/Report 70 $7,500 6 Stakeholder Involvement (4 meetings) 110 $14,000 Subtotal 506 $56,500 November 9, 2016 Page 7 G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Pentagon & Border Basin\161220 Agreemt - Ex B scope 11-9-16.docx Thank you for the opportunity to assist the District, Cities, and private developers/property owners with this important project. Please contact Janna Kieffer if you have any questions about this proposal at (952) 832-2785 or jkieffer@barr.com. Sincerely, Robert Obermeyer P.E. Vice President Barr Engineering Co. Enclosures May 6, 2016 Board of Managers, Nine Mile Creek Watershed District c/o Kevin Bigalke, District Administrator Kbigalke@ninemilecreek.org <via email only> 12800 Gerard Drive Eden Prairie, MN RE: Revised Atlas 14 flood risk management elevations Dear Board of Managers, District staff recently shared a May 14, 2015 memorandum you received describing Atlas 14 revised risk assumptions, modeling methodology, and revised flood management elevations. This modeling effort, and revised flood risk management elevations has potentially significant consequences to public and private redevelopment along Nine Mile Creek and in adjoining areas subject to creek backwater flooding. This letter will describe concerns related to the modeling and development of revised management elevations and asks the District to take an active role to plan and communicate the management of flood and flow, clarify its rules, and reaffirm the modeling methodology used to define flood risk management elevations. In review of the May 14, 2015 Atlas 14 memo, I note the following concerns: 1) The District utilized upstream city models, including Edina’s XP-SWMM model, updating topographic information in only the Braemar Branch to refine storage and overflow elevation. 2) In the absence of hydrologic guidance from NOAA, the District used rainfall distribution recommended by MnDOT to develop a conservative ‘nested distribution’ methodology. 3) While creek elevation management was the focus of the memo, maps showing 100-year inundation extent were provided that define split, and upstream flow paths, both overland and backing though local systems, the management of which I presume would have a material effect on flood flow and elevation, but for which no management regime currently exists in District rules. In response to these concerns, I ask the District to consider the following: 1) Review and affirm the level of accuracy in modeling is sufficient to set management elevation, particularly in areas that upstream city models were used, but not updated to the same standard used in the creek model. 2) Review and affirm the assumptions used to develop rainfall distributions. 3) Provide comparison of management elevations before and after modeling 4) Provide assistance in communicating change in management elevations to property owners with development proposals in progress. 5) Consider providing best practices for site development, site level design guidance for acutely affected redevelopment sites, and alternatives to providing rate control for 100 year events. 6) Consider implications and future management of split flow and upstream flow paths both overland and through pipe networks. Thank you for the consideration of these concerns. I am available to describe or clarify the issues and requests presented in this letter at your next board meeting, or at any time with District staff. Sincerely, Ross Bintner P.E. Environmental Engineer Cc: Chad Millner P.E. – Director of Engineering <all cc via email> Cary Teague – Community Development Director Bill Neuendorf – Economic Development Manager Bryan Gruidl – Water Resource Manager, City of Bloomington Janna Kieffer P.E. – Barr Engineering G:\ENG\ADMIN\AGENCIES\WATERSHED DISTRICTS\NINE MILE CREEK\2017 Watershed Plan update\160506 Flood planning Letter.docx PENTAGON REVIVAL, LLC 2424 KENNEDY STREET NE, MINNEAPOLIS, MINNESOTA 55413 612.371.0123 April 22, 2016 Ross Bintner City of Edina, Engineering Department 7450 Metro Boulevard Edina, MN 55439 RE: Revised Nine Mile Creek Watershed District Flood Management Elevations Via email and US Mail Dear Ross, In response to recently learning of the Nine Mile Creek Watershed District (NMCWD) updated flood management elevations, we are interested in working with the City of Edina and NMCWD to better understand the potential impact of meeting redevelopment goals at the former Pentagon Park site. After reviewing the March 8, 2016 City of Edina comments in response to the May 14, 2015 Barr Engineering memorandum and related figures prepared for the NMCWD, we have some questions. As it relates to common goals for the redevelopment of Pentagon Park, we are interested in working with the City of Edina and NMCWD to better understand integrated planning opportunities. And specifically, the land use options that can serve as flood storage in 100-year precipitation events, preferred stormwater management strategies for the area, verification of the elevations to better delineate the impact, and the effect to related properties of raising 77th Street West above the flood elevation. We ask the City of Edina to reach out to NMCWD and ask for technical assistance so that together we can approach the understanding of impacts and opportunities of the revised flood management elevations to the area. Sincerely, nstin mitten Penta n Revival, LLC Director of Sustainability, Development Manager CC: Cary Teague, City of Edina, Community Development Manager Bill Neuendorf, City of Edina, Economic Development Manager Kevin Bigalke, Administrator, Nine Mile Creek Watershed District Scott Tankenoff, Pentagon Revival, LLC Creek Centerline Edina CWRMP 100-year Inundation Extents 100-Year Floodplain Management Inundation Extent (1) a x-1 Municipal Boundary ri District Legal Boundary (1) Based on Atlas 14 precipitation Label Explanation: ... j Atlas 14 Peak Elevation Rounded to the Nearest 0.1 Feet (NGVD29) 1114 Toffte r I • Feet 200 0 200 400 600 FT5-ta fT1' Ff..18 15„ FIGURE 1 77th Street and Fred Richards GC Area 100-Year Inundation Extents Nine Mile Creek Watershed District Hennepin County, Minnesota 9i1MilleCreek BARR W A T E R S NED D S T R I C Date: Dec ember 20, 2016 Agenda Item #: V. To:Chair & Commissioners of the Edina HRA Item Type: R ep o rt / Rec o mmendation From:Bill Neuendorf, Econo mic Development Manager Item Activity: Subject:Res o lutio n 2016-07: Naming Buhl Inves to rs /S aturd ay Pro p erties as P referred Development P artner for 3930 Wes t 49-1/2 S treet and Adjac ent Parc els Action Edina Housing and Redevelopment Authority Established 1974 CITY O F EDINA HOUSING & REDEVELOPMENT AUT HORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve Resolution 2016-07 and authorize staff to begin negotiations with development partner. INTRODUCTION: T his item pertains to the potential redevelopment of publicly-owned parcels located in the 50th and France Commercial District. T his item pertains only to the potential real estate transaction. T he land use approvals are considered by the P lanning Commission and City Council separately from the real estate transaction. ATTACHMENTS: Description 3930 pref dvlp prtnr - s taff report Res 2016-07 nambing Buhl-Saturday for 3930 Summary of 3930 Propos als Oct 2016 3930 RFP - Aug 2016 Housing & Redevelopment Authority Established 1974 December 20, 2016 Members of the Edina Housing & Redevelopment Authority Bill Neuendorf, Economic Development Manager Resolution 2016-07: Naming Buhl Investors/Saturday Properties as Preferred Development Partner for 3930 West 49-1/2 Street and Adjacent Parcels Information / Background: In August 2016, the Edina Housing and Redevelopment Authority (HRA) issued a Request for Proposal (RFP) to redevelop vacant property located at 3930 W. 49-1/2 Street. This property was purchased by the HRA in 2013 with the intent of creating additional public parking for the commercial district. Prospective developers were encouraged to provide creative ways to deliver public parking while also adding street life, vibrancy and new business opportunities. Interested developers were encouraged to consider including other adjacent properties to increase the impact of the redevelopment effort on W. 49-1/2 Street. A copy of the RFP is attached. Four development teams submitted proposals, summaries of which are attached. The teams include: Development Team Brief Description of Proposal John Laurent Associates Public parking, retail space and condominiums Good Neighbor Consortium Public parking, retail space, office space and public park Buhl Investors / Saturday Public parking, retail space, apartments and public STAFF REPORT Page 2 Properties plaza KM2 Development / Doran Companies Public parking, retail space and apartments Invitations to present and discuss their proposals were extended to each development team. Three teams presented their concepts to the Edina HRA at the November 14, 2016 Work Session. One team (Laurent Associates) declined the invitation and asked to be withdrawn from consideration. The three remaining developers delivered their presentations during the Work Session. Upon conclusion, the Edina HRA transitioned to a “closed session” to discuss the potential sale of real estate. After comparing the potential outcomes with the potential challenges of the three proposals, it is recommended that the Edina HRA name the Buhl Investors / Saturday Properties team as the preferred development partner for the site(s). The Buhl Investors / Saturday Properties team submitted an ambitious proposal that was responsive to the goals identified in the RFP. Their proposal has the potential to enhance the pedestrian experience, improve parking conditions, eliminate an aging and unsightly parking structure, create new business opportunities and return properties to the tax rolls. Collectively, this concept could transform the 3900 block of West 49-1/2 Street into an integral part of the 50th and France business district and expand the desirability of 50th and France for the next generation. The selection of a “preferred development partner” initiates the real estate negotiation process as well as the development review process. This is the first step forward in a lengthy process. In the months ahead, staff of the Edina HRA intends to negotiate a Term Sheet that identifies key points of the potential business agreement and real estate transaction. Key points of discussion are anticipated to include: purchase price, parking ownership, pedestrian easements, construction phasing, and public financing. Legal professionals from Dorsey & Whitney and financial advisors from Ehlers Associates will assist staff in the preparation of the Term Sheet. A preliminary traffic impact overview will be conducted by SRF Consultants who prepared a comprehensive study of northeast Edina in 2006. STAFF REPORT Page 3 Simultaneously, the development team will begin the process of vetting their design concept through the City’s full development review process. This will include a neighborhood meeting, and sketch plan reviews with Planning Commission and City Council. Please note that the selection of a preferred partner is not intended to imply that the initial proposal will be accepted and approved. If the development team and the HRA are unable to reach agreeable terms, the project will not move forward. Resolution 2016-07 has been prepared to formally document the intentions of the Edina HRA. Staff recommends that this Resolution be approved. Upon approval of the Resolution, the staff and developer will begin negotiations. A check-in discussion with the full Edina HRA is anticipated in February 2017. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA RESOLUTION NO. 2016-07 NAMING BUHL INVESTORS/SATURDAY PROPERTIES AS PREFERRED DEVELOPMENT PARTNER FOR 3930 WEST 49-1/2 STREET AND ADJACENT PARCELS WHEREAS, the Edina Housing and Redevelopment Authority (“Authority”) owns property at various locations in the 50th and France commercial district which has been acquired for the purpose of providing public parking for the shared use of employees and customers. WHEREAS, on August 17, 2016, the Authority issued a Request for Proposals to acquire and redevelop certain land in the 50th and France commercial district, specifically including the vacant parcel at 3930 West 49th Street, and WHEREAS, the Authority received four responses to the Request for Proposals; and WHEREAS, three of the four development teams accepted invitations and presented their proposals for mixed-use redevelopment at the November 14, 2016 Authority Work Session; and WHEREAS, the team led by Buhl Investors and Saturday Properties presented a proposal consisting of additional public parking, with new commercial space on the street level and apartments on the upper levels as well as extensive new public plazas to enhance the pedestrian-friendly shopping and dining experience at 50th and France; and WHEREAS, after considering the potential outcomes of the proposals, pursuit of new mixed use development on West 49-1/2 Street is a desirable goal to achieve further improvements to the 50th and France commercial district; and WHEREAS, based on the strength of the concept and team, staff recommends that the development team led by Buhl Investors and Saturday Properties be named as the preferred development partner for this project; and WHEREAS, it is necessary to identify the business terms of a real estate transaction so that the Authority can give its full review and consideration; and WHEREAS, the parties will each be responsible for their own costs incurred during the negotiations and the development partner will be responsible for costs incurred related to any public incentive requested; and WHEREAS, it is understood that any required land use approvals would be subject to review and approval through the City of Edina’s standard processes, including public meetings and public hearings with the Planning Commission and City Council. NOW, THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority directs the following actions: 1) The team led by Buhl Investors and Saturday Properties is named as the preferred development partner. This designation shall expire in 120 days if a Term Sheet has not been completed. 2) The preferred development partner is authorized to prepare and present concept plans showing potential redevelopment on the Authority’s property. 3) Staff is directed to negotiate a detailed term sheet based on the concept submitted by Buhl Investors and Saturday Properties for further consideration by the Authority. 4) Staff is authorized to engage legal and public finance advisors, as necessary to prepare the term sheet. 5) Staff is further authorized to conduct a preliminary traffic study to investigate the potential impact of redeveloping parcels owned by the Authority. Dated: December 20, 2016 _______________________________________ James Hovland, Chair ATTEST: ___________________________________ Ann Swenson, Secretary STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of December 20, 2016, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. Scott Neal, Executive Director Responses to RFP 3930 W. 49-1/2 Street For HRA discussion 10-18-2016 KM2 / Doran Proposal Page 2 Overview Brief Description 6-story mixed-use building with street level commercial space (including new pharmacy with drive-thru window) and luxury apartments on the upper levels to replace all existing buildings on the north side of W. 49-1/2 St. Replacement public parking would be constructed below grade. Private parking for residents would also be located below grade. Land Transfer and Public Financing City to transfer land to developer at no cost. Developer seeks Tax Increment Financing to reimburse for costs of new public parking. New Public Parking Stalls New Public Space New Commercial New Residential Parcels Included Estimated Project Cost Yes (+441) Pocket park Yes (40,000 SF) Apartments (187) 4916, 3918, 3930, 3944, North Ramp, Clancy Lot $73+ million KM2 / Doran Proposal Page 3 Site Plan – Street Level Center Ramp to remain as-is KM2 / Doran Proposal Page 4 Site Plan – Upper Levels Foot print gets smaller on the highest levels KM2 / Doran Proposal Page 5 Perspective 1 – Looking NE from Halifax KM2 / Doran Proposal Page 6 Perspective 2 – Looking NW from Pinehurst John Laurent Proposal Page 7 Overview Brief Description 5-story mixed-use building with street level commercial space and condominiums on the upper levels. New public parking and resident parking located below grade. New Public Parking Stalls New Public Space New Commercial New Residential Parcels Included Estimated Project Cost Yes (+52) Sidewalk plaza Yes (27,000) Condominiums (32) 3930 $10 million Land Transfer and Public Financing Developer to purchase land from City/HRA. John Laurent Proposal Page 8 Site Plan Two levels of underground parking Page 8 John Laurent Proposal Page 9 Perspective 1 – Looking North Buhl Investors / Saturday Properties Proposal Page 10 Overview Brief Description Vertical expansion of the existing North Ramp to 4-stories with horizontal expansion on the vacant parcels with street level commercial space and additional public parking above. Reconstruction of the Center Ramp with 6-story mixed-use with street level commercial, public plaza/woonerf and luxury apartments above. Replacement public parking would be constructed below grade. Private parking for residents would also be located below grade. Land Transfer and Public Financing Developer to purchase land from City/HRA. Developer seeks Tax Abatement to reimburse for costs of new public parking. New Public Parking Stalls New Public Space New Commercial New Residential Parcels Included Estimated Project Cost Yes (+305) Center Plaza Yes (30,500 SF) Apartments (131) 3930, 3944, North Ramp, Center Ramp, Clancy Lot $79 million Buhl Investors / Saturday Properties Proposal Page 11 Site Plan – Street Level Buhl Investors / Saturday Properties Proposal Page 12 Site Plan – Upper Levels Buhl Investors / Saturday Properties Proposal Page 13 Perspective 1 – Looking West on 49-1/2 & France Buhl Investors / Saturday Properties Proposal Page 14 Perspective 2 Mixed Use to Replace Center Ramp & Clancy Parking Lot Restaurant with upper-level Parking to replace 3930 Building (above) Good Neighbors / O’Brien Proposal Page 15 Overview Brief Description Vertical expansion of the existing North Ramp to 4- stories and convert 3930 into pocket park. Construct new 4-story mixed-use building on 3944 site with street level commercial uses and office space above. Land Transfer and Public Financing Developer to lease land from City/HRA with up front and annual payments. City to fundraise to construct park. New Public Parking Stalls New Public Space New Commercial New Residential Parcels Included Estimated Project Cost Yes (+84) Pocket Park Yes (28,000 SF) None 3930, 3944 $15 million Good Neighbors / O’Brien Proposal Page 16 Site Plan – Impacted Properties Good Neighbors / O’Brien Proposal Page 17 Site Plan - Concept Add 1 level to North Ramp New office New public park Good Neighbors / O’Brien Proposal Page 18 Perspective 1 – Looking NW from Spalon Good Neighbors / O’Brien Proposal Page 19 Perspective 2 – Looking NE from Halifax Comparison of Four Proposals Page 20 Real Estate Transaction New Public Parking Stalls New Public Space New Commer- cial New Residen-tial Parcels Included Est. Project Cost KM2 / Doran Land Donation and TIF for public improvements Yes (+441) Pocket park Yes (40,000 SF) Apartments (187) 4916, 3918, 3930, 3944, North Ramp, Clancy Lot $73+ million J. L. Laurent Associates Traditional Sale Yes (+52) Sidewalk plaza Yes (27,000) Condominium s (32) 3930 $10 million Buhl / Saturday Traditional sale and tax abatement for public improvements Yes (+305) Center Plaza Yes (30,500 SF) Apartments (131) 3930, 3944, North Ramp, Center Ramp, Clancy Lot $79 million Good Neighbors / O’Brien Long-term land lease with fundraising for public park Yes (+84) Pocket Park Yes (28,000 SF) None 3930, 3944 $15 million 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.