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HomeMy WebLinkAbout2017-05-16 HRA Work SessionAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Edina City Hall Council Chambers Tuesday, May 16, 2017 5:30 PM I.Call to Order II.Roll Call III.Grandview Green: Project Update IV.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 ampli&cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: May 16, 2017 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Grandview Green: Project Update 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 only. INTRODUCTION: This discussion pertains to long-term planning for redevelopment in the Grandview District. In Fall 2016, the Housing and Redevelopment Authority engaged a consultant team led by Architecture Field Office to prepare a preliminary concept study for a transformational public amenity that would attract additional development. The centerpiece of the project is a new park amenity located above a portion of MnDOT's Highway 100 right- of-way. The creation of the park would unify the neighborhoods on both sides of the highway and would also enable the productive use of approximately 13-acres of adjacent right-of-way space. The consultant team will present a summary of their study for discussion. ATTACHMENTS: Description Staff Memo: Grandview Green Project Update Grandview Green Concept Study Revised Grandview Green Concept Study City of Edina • 4801 W. 50th St. • Edina, MN 55424 Economic Development / HRA Phone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov Date: May 16, 2017 To: Chair and Commissioners of the Edina Housing and Redevelopment Authority From: Bill Neuendorf, Economic Development Manager Katie Clark Sieben, Project Consultant Re: Grandview Green – Project Update On September 7, 2016, the Edina Housing and Redevelopment Authority contracted with Architecture Field Office, LLC (AFO) to study the feasibility of constructing a lid/green roof over Highway 100, known as “Grandview Green”. The AFO study builds upon the 2012 Redevelopment Framework and the 2016 Grandview District Transportation Study. The intent of the study was to determine the feasibility of constructing a green roof over Highway 100 and assess the economic development potential of the new parcels created on land that is currently un-usable right-of- way. AFO is a specialized design consultancy founded by Mic Johnson, FAIA. As the previous interim director of the University of MN’s Metropolitan Design Center, Mic and his team of researchers focused on the potential of lidding metro area freeways to reconnect communities, promote health and wellness and catalyze new development including air rights and property development over the freeway. For the Grandview Green project, AFO supplemented their team with Bruce Jacobsen who contributed firsthand knowledge of emerging development plans in the Grandview district and Kimley Horn who contributed transportation and civil engineering technical expertise. Jones Lang LaSalle was also engaged to provide an economic impact analysis of the green roof and development parcels surrounding the lid structure. The preliminary study included a variety of tasks to better understand the impacts and feasibility of this concept. During the course of their initial work, the AFO team completed the following: • Leveraged existing city studies, GIS data and relevant city documents to prepare base maps that presented the development opportunities inherent in constructing a lid structure over Hwy. 100. Housing and Redevelopment Authority Established 1974 Grandview Green Project Update May 16, 2017 Work Session Page 2 • Assessed technical feasibility through reviewing traffic, transportation and parking impacts, MNDOT highway road bed design criteria, storm water and soil conditions and lid configuration options. • Developed concept planning options by exploring land use, density, parcel plans and phasing. The team also produced a coordinated economic impact/ tax study. • Prepared a summary report, an aerial rendering and a series of presentations for the staff steering group, MNDOT staff and HRA members. In summary, the Feasibility Study found: • No major fatal flaws in the development of a green roof over limited portions of Highway 100. • This concept has the potential to create approximately 13 acres of new buildable land on 16 parcels. • The area has the potential to support 2,525 new parking spaces and an additional 2.4 million square feet in private development. • After completion, property tax revenue is projected to increase from approx. $2 million to $100 million. • There is a dramatic range of public investment needed for this project. o $6.7 million if only one lid segment constructed o $70-90 million if both lid segments, new roads and off-ramps and public parking ramps are constructed • Several public entities could potentially be involved in this project – MnDOT, Hennepin County, City of Edina and possibly others. • The initial economic analysis predicts the City will realize a 348% return on investment over a fifteen year period. o Returns recognized as soon as the fifth year. o Assumes that the City constructs two lids for a total of $12.18 million and contributes $25 million towards new road construction. Grandview Green Project Update May 16, 2017 Work Session Page 3 o Does not include any investments in buildings because that investment isn’t needed to encourage ancillary private investment. The AFO team will present a summary of their initial findings for informal discussion. The purpose of this presentation is merely to identify the potential opportunity and its likely costs and benefits for the community. No action is required at this time. It should be noted that this information is preliminary in nature. If the Edina HRA chooses to advance further, additional detail will be required. END Architecture Field Office Grandview Green Feasibility Study City of Edina HRA Update May 16, 2017 Architecture Field Office BRUCE JACOBSON LANDSCAPE ARCHITECT Architecture Field Office Meeting Agenda 1.Introductions 2.Overview: Site Context and Grandview Green Study 3.Financial Assumptions and Analysis 4. Discussion and Next Steps DRAFT FOR REVIEW: May 16, 2017 1 Architecture Field Office Study Goals 1.Verify technical and cost feasibility of lid structure (green roof). 2.Assess potential development opportunities. 3.Create the right scale of development to fit the neighborhood. 4.Create a new tax base that supports the existing community. 5.Assure new development benefits existing and future Edina residents. DRAFT FOR REVIEW: May 16, 2017 2 Architecture Field Office Grandview Green Site Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 3 Architecture Field Office HWY 100 Vernon Ave City Hall Grandview Green Existing Grandview District DRAFT FOR REVIEW: May 16, 2017 4 Architecture Field Office Vernon Ave City Hall HWY 100 Grandview Green MnDOT Right-of-Way DRAFT FOR REVIEW: May 16, 2017 5 Architecture Field Office Vernon Ave City Hall HWY 100 Grandview Green City of Edina Owned Land DRAFT FOR REVIEW: May 16, 2017 6 MNDOT Owned Land City Owned Land Architecture Field Office Precedent Projects Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 7 Architecture Field Office Klyde Warren Park –Dallas, Texas Completed:2012 Size: 5.2 Acres, Length: 1,045’ Cost: $471/Sq. Ft Attributes: •Spurred in excess of $1 billion in new development •Reconnected districts •Improved accessibility in/out of downtown CBD •Air quality improvement •Owner: City of Dallas Texas DoT Klyde Warren Foundation DRAFT FOR REVIEW: May 16, 2017 8 Architecture Field Office I-670 at Union Station –Columbus, Ohio Completed:2004 Area: 1.12 Acres, Length: 227’ Cost: $160/Sq. Ft Attributes: •Mend a 40-year scar •Composed of three separate bridges •Provides 25,500 SF of leasable space •The previous void caused by the highway was transformed into a seamless urban streetscape •Owner: Ohio DoT 30-year lease with an extension to 70 years DRAFT FOR REVIEW: May 16, 20179 Architecture Field Office Highway 100 Access and Street Network Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 10 Architecture Field Office Transportation Design Considerations •Simple and safe intersection configuration. •Balance vehicle movements with pedestrian comfort and current land ownership. •Right-size the travelways. •Highway 100 roadbed assumptions: •No car traffic lane expansions needed or planned. •Allow for possible transit (BRT) as a fourth lane in each direction. •If entrance/exit ramps are reimagined, that space can be repurposed. DRAFT FOR REVIEW: May 16, 2017 11 Architecture Field Office Potential Roadway Configurations DRAFT FOR REVIEW: May 16, 2017 12 Concept A Concept B Concept C Concept D Architecture Field Office Lid / Green Roof Section Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 13 Architecture Field Office Typical Freeway Section Typical Freeway RoadbedUnderutilized embankment Underutilized embankment Frontage Road Frontage Road Lid Zone Redevelopment ZoneRedevelopment Zone Grandview Green Typical Freeway Section DRAFT FOR REVIEW: May 16, 2017 14 Architecture Field Office Typical Freeway Section Hwy 100 Roadbed 3 Lanes + Safety Zones Existing Frontage Road 50th Street Bridge Eden Avenue Bridge Similar Redevelopment Zone Redevelopment Zone 50th Street Grandview Green Existing Highway 100 Section East West Site Section DRAFT FOR REVIEW: May 16, 2017 15 Architecture Field Office Typical Freeway Section Hwy 100 Roadbed 3 Traffic Lanes, Future Transit Lane + Safety Zones New N/S Frontage Road Redevelopment Zone Redevelopment Zone District Parking + Development above parking Grandview Green Proposed Highway 100 Lid Section East West Site Section 68 FT 68 FT DRAFT FOR REVIEW: May 16, 2017 16 Architecture Field Office Grandview Green Green Roof / Lid Section Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 17 Architecture Field Office N/S Pedestrian Connection to 50th New Grange Road Location New N/S Access Road Arcadia Grandview Green Development Concept Lid HYW 100 Green Lid District Parking7 Story Building with parking below 5 Story Housing with parking below 2 Story Community Building with visitor parking below East West Site Section DRAFT FOR REVIEW: May 16, 2017 18 Architecture Field Office Parcel Development Potential Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 19 Architecture Field Office Grandview Green Road Alignments New Intersections Intersections Removed Impact on Existing Properties Phase 1 Access from Northbound Hwy 100 Phase 2 Access from Northbound Hwy 100 Ar c a d i a Gr a n g e DRAFT FOR REVIEW: May 16, 2017 20 Architecture Field Office 5a 9 5b 1 12 6 16 15 16 2 1 13 11 10 8 4 3 7a/7bPublic InfrastructureNew Roads •Central Main Street (New) •North South Freeway Access (New) •Grange (New alignment) Public Realm Improvements •Arcadia •Eden •50th Lids + Green •Lid A 42,000SF •Lid B 36,000SF Grandview Green Public Infrastructure Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 21 No r t h -So u t h F r e e w a y Ac c e s s R o a d Architecture Field Office 1 34 5a 9 10 5b 1 2 11 12 13 8 6 16 15 17 7a 7b 14 Grandview Green Concept Parcels Parcel 1 Approx. 27,000 SF Parcel 2 Approx. 27,000 SF Parcel 3 Approx.46,000 SF Parcel 4 Approx. 57,000 SF Parcel 5a Approx. 14,000 SF Parcel 5b Approx. 11,000 SF Parcel 6 Approx. 21,000 SF Parcel 7a Approx. 26,000 SF Parcel 7b Approx. 20,000 SF Parcel 8 Approx. 17,000 SF Parcel 9 Approx. 31,000 SF Parcel 10 Approx. 85,000 SF Parcel 11 Approx. 50,000 SF Parcel 12 Approx. 86,000 SF Parcel 13 Approx. 15,000 SF Parcel 14 Approx. 34,000 SF Redevelopment site with Parcel 7b Parcel 15 Redevelopment Parcel 16 Redevelopment Total Parcels 13 Acres DRAFT FOR REVIEW: May 16, 2017 22 Phase 1 Development Phase 2 Development Redevelopment Opportunity Architecture Field Office Grandview Green Concept D2017 Parcels Architecture Field Office Grandview Green Full Build Out DRAFT FOR REVIEW: May 16, 2017 23 Architecture Field Office Grandview Green View Looking North East Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 24 Architecture Field Office Grandview Green View Looking South East Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 25 Architecture Field Office Financial Assumptions & Analysis Grandview Green Feasibility Study Architecture Field Office DRAFT FOR REVIEW: May 16, 2017 26 Architecture Field Office Grandview Green Roof Block Summaries -Assumptions DRAFT FOR REVIEW: May 16, 2017 27 Category Cost per Sq. Ft. Build - Residential 240 Build - Commercial 180 Land - Residential*80 Land - Commercial*80 Institutional Devel.180 Personal Prop.55 Parking 30,000 / unit Green Lid Construction 110 Green Lids - Maintenance 150,000 / lid / yr. Road Alignments 25,000,000 Land Sq. Ft. Land Value Residential 451,710 36,136,811 Commercial 157,290 12,583,189 Institutional 136,000 10,880,000 Totals 745,000 59,600,000 61%21% 18% % of Total Land Residential Commercial Institutional Architecture Field Office Grandview Green RoofCurrent Tax Roll DRAFT FOR REVIEW: May 16, 2017 28 Phase 1 Development Phase 2 Development Architecture Field Office Grandview Green RoofCurrent vs. Projected Revenue Stream DRAFT FOR REVIEW: May 16, 2017 29 (2,000,000) - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Property Tax Revenue Less: Current Tax Roll Sales Tax Revenue Preliminary Current vs. Projected Revenue Stream * Sales Tax on Initial Construction ($30M) * 15-Yr. Property Tax Revenue on Phased Investment ($100M) (excluding parking) Bldg. 1 Bldg. 2 Bldg. 3 Bldg. 4 Bldg. 5 Bldg. 6 Bldg. 7 Bldg. 8 Bldg. 9 Bldg. 10 Bldg. 11 Bldg. 12 Bldg. 13 Bridge 1 Bridge 2 Architecture Field Office Grandview Green Roof Real Estate Tax •Current vs. Projected •15 yr. term •Phased investment DRAFT FOR REVIEW: May 16, 2017 30 --- (2,000,000) - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Ph I -Bldg. 1 Ph. I -Bldg. 2 Ph. I -Bldg. 3 Ph. I -Bldg. 4 Ph. I -Bldg. 5 Ph. 1 -Bldg. 6 Ph. I -Bldg. 7 Ph. I -Bldg. 8 Ph. I -Bldg. 9 Ph. I -Bldg. 10 Ph. II -Bldg. 11 Ph. II -Bldg. 12 Ph. II -Bldg. 13 Ph. I -Green Roof Ph. II -Green Roof Projected New Tax Current Tax Architecture Field Office Grandview Green RoofInvestment Summary DRAFT FOR REVIEW: May 16, 2017 31 Ph. I - Bldg. 1 (yr. 1 invest.)71 - 22,000 22,000 44,000 3,960,000 - 3,960,000 2,420,000 2,130,000 12,470,000 Ph. I - Bldg. 2 (yr. 1 invest)71 - 22,000 22,000 44,000 3,960,000 - 3,960,000 2,420,000 2,130,000 12,470,000 Ph. I - Bldg. 3 (yr. 3 invest.)125 98,500 15,000 - 113,500 2,700,000 23,640,000 - 825,000 3,750,000 30,915,000 Ph. I - Bldg. 4 (yr. 3 invest.)480 195,000 25,000 - 220,000 4,500,000 46,800,000 - 1,375,000 14,400,000 67,075,000 Ph. I - Bldg. 5 (yr. 3 invest.)- - 36,000 - 36,000 6,480,000 - - 1,980,000 - 8,460,000 Ph. I - Bldg. 6 (yr. 4 invest.)- - 21,000 - 21,000 3,780,000 - - 1,155,000 - 4,935,000 Ph. I - Bldg. 7 (yr. 4 invest.)210 303,600 40,500 - 344,100 7,290,000 72,864,000 - 2,227,500 6,300,000 88,681,500 Ph. I - Bldg. 8 (yr. 4 invest.)48 83,200 5,000 - 88,200 900,000 19,968,000 - 275,000 1,440,000 22,583,000 Ph. I - Bldg. 9 (yr. 5 invest.)80 - - 84,000 84,000 - - 15,120,000 4,620,000 2,400,000 22,140,000 Ph. I - Bldg. 10 (yr. 5 invest)685 323,000 80,000 - 403,000 14,400,000 77,520,000 - 4,400,000 20,550,000 116,870,000 Ph. II - Bldg. 11 (yr. 5 invest.)128 172,000 110,000 - 282,000 19,800,000 41,280,000 - 6,050,000 3,840,000 70,970,000 Ph. II - Bldg. 12 (yr. 6 invest.)342 189,000 53,600 - 242,600 9,648,000 45,360,000 - 2,948,000 10,260,000 68,216,000 Ph. II - Bldg. 13 (yr. 6 invest.)285 456,100 25,000 - 481,100 4,500,000 109,464,000 - 1,375,000 8,550,000 123,889,000 Ph. I - Green Roof 1 (yr. 1 invest.)- - - - - - - 4,620,000 - - 4,620,000 Ph. II - Green Roof 2 (yr. 6 invest.)- - - - - - - 3,960,000 - - 3,960,000 Possible Road Improvements - - - - - - - 25,000,000 - - 25,000,000 Total 2,525 1,820,400 455,100 128,000 2,403,500 81,918,000 436,896,000 56,620,000 32,070,500 75,750,000 683,254,500 Residential Sq. Ft. Commercial Sq. Ft. Total Developed Sq. Ft. Commercial RP Investment Parking Investment Total Investment Institutional Sq. Ft. Parking Spaces Residential RP Investment Personal Property Investment Institutional RP Investment Residential Sq. Ft. 76% Commercial Sq. Ft.19% Institutional Sq. Ft. 5% Development Ratio Commercial RP Investment 12% Residential RP Investment64% Institutional RP Investment8% Personal Property Investment 5% Parking Investment11% Investment Ratio Architecture Field Office Grandview Green RoofReturn on Investment * No inflation is taken into consideration, which will positively impact the break-even point because of private investment, assessed value, and millage rate increases. Parking is not included in potential property taxes. DRAFT FOR REVIEW: May 16, 2017 32 Yr. 0 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Total Tax Revenue Sales Tax - 1,431,138 - 4,768,181 5,178,541 9,777,018 8,511,183 - - - - - - - - - 29,666,060 Property Tax - 291,560 724,047 1,759,289 3,443,377 6,123,545 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 99,669,333 Total Tax Revenue - 1,722,698 724,047 6,527,470 8,621,918 15,900,563 17,243,934 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 129,335,393 Less: Public Investment Lid 1 - 4,620,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 6,720,000 Lid 2 - - - - - 3,960,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 5,460,000 Possible Road Issues 25,000,000 - - - - - - - - - - - - - - - 25,000,000 Total Investment 25,000,000 4,620,000 150,000 150,000 150,000 4,110,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 37,180,000 Return on Investment 348% - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 Yr. 0 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Return on Investment Cumulative Public Revenue Cumulative Public Expense Architecture Field Office Grandview Green RoofSpecial Tax District Edina’s construction of a green roof to encourage new development will be precedent setting. The philosophy behind establishing a special taxing district to capture and reinvest new tax revenue should be established. •Affordable housing •Micro loans •Green roof maintenance •Green roof programming •Schools •Property tax DRAFT FOR REVIEW: May 16, 2017 33 Architecture Field Office Discussion Grandview Green Feasibility Study Architecture Field Office BRUCE JACOBSON LANDSCAPE ARCHITECT Grandview Green Feasibility Study City of Edina HRA Update May 16, 2017 BRUCE JACOBSON LANDSCAPE ARCHITECT Meeting Agenda 1.Introductions 2.Overview: Site Context and Grandview Green Study 3.Financial Assumptions and Analysis 4. Discussion and Next Steps DRAFT FOR REVIEW: May 16, 2017 1 Study Goals 1.Verify technical and cost feasibility of lid structure (green roof). 2.Assess potential development opportunities. 3.Create the right scale of development to fit the neighborhood. 4.Create a new tax base that supports the existing community. 5.Assure new development benefits existing and future Edina residents. DRAFT FOR REVIEW: May 16, 2017 2 Grandview Green Site Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 3 HWY 100 Vernon Ave City Hall Grandview Green Existing Grandview District DRAFT FOR REVIEW: May 16, 2017 4 Vernon Ave City Hall HWY 100 Grandview Green MnDOT Right-of-Way DRAFT FOR REVIEW: May 16, 2017 5 Vernon Ave City Hall HWY 100 Grandview Green City of Edina Owned Land DRAFT FOR REVIEW: May 16, 2017 6 MNDOT Owned Land City Owned Land Precedent Projects Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 7 Klyde Warren Park –Dallas, Texas Completed:2012 Size: 5.2 Acres, Length: 1,045’ Cost: $471/Sq. Ft Attributes: •Spurred in excess of $1 billion in new development •Reconnected districts •Improved accessibility in/out of downtown CBD •Air quality improvement •Owner: City of Dallas Texas DoT Klyde Warren Foundation DRAFT FOR REVIEW: May 16, 2017 8 I-670 at Union Station –Columbus, Ohio Completed:2004 Area: 1.12 Acres, Length: 227’ Cost: $160/Sq. Ft Attributes: •Mend a 40-year scar •Composed of three separate bridges •Provides 25,500 SF of leasable space •The previous void caused by the highway was transformed into a seamless urban streetscape •Owner: Ohio DoT 30-year lease with an extension to 70 years DRAFT FOR REVIEW: May 16, 20179 Highway 100 Access and Street Network Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 10 Transportation Design Considerations •Simple and safe intersection configuration. •Balance vehicle movements with pedestrian comfort and current land ownership. •Right-size the travelways. •Highway 100 roadbed assumptions: •No car traffic lane expansions needed or planned. •Allow for possible transit (BRT) as a fourth lane in each direction. •If entrance/exit ramps are reimagined, that space can be repurposed. DRAFT FOR REVIEW: May 16, 2017 11 Potential Roadway Configurations DRAFT FOR REVIEW: May 16, 2017 12 Concept A Concept B Concept C Concept D Lid / Green Roof Section Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 13 Typical Freeway Section Grandview Green Typical Freeway Section DRAFT FOR REVIEW: May 16, 2017 14 Typical Freeway Section Grandview Green Existing Highway 100 Section East West Site Section DRAFT FOR REVIEW: May 16, 2017 15 Typical Freeway Section Grandview Green Proposed Highway 100 Lid Section East West Site Section DRAFT FOR REVIEW: May 16, 2017 16 Grandview Green Green Roof / Lid Section DRAFT FOR REVIEW: May 16, 2017 17 Grandview Green Development Concept Lid East West Site Section DRAFT FOR REVIEW: May 16, 2017 18 Parcel Development Potential Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 19 Grandview Green Road Alignments New Intersections Intersections Removed Impact on Existing Properties Phase 1 Access from Northbound Hwy 100 Phase 2 Access from Northbound Hwy 100 Ar c a d i a Gr a n g e DRAFT FOR REVIEW: May 16, 2017 20 5a 9 5b 1 12 6 16 15 16 2 1 13 11 10 8 4 3 7a/7bPublic InfrastructureNew Roads •Central Main Street (New) •North South Freeway Access (New) •Grange (New alignment) Public Realm Improvements •Arcadia •Eden •50th Lids + Green •Lid A 42,000SF •Lid B 36,000SF Grandview Green Public Infrastructure DRAFT FOR REVIEW: May 16, 2017 21 No r t h -So u t h F r e e w a y Ac c e s s R o a d 1 34 5a 9 10 5b 1 2 11 12 13 8 6 16 15 17 7a 7b 14 Grandview Green Concept Parcels Parcel 1 Approx. 27,000 SF Parcel 2 Approx. 27,000 SF Parcel 3 Approx.46,000 SF Parcel 4 Approx. 57,000 SF Parcel 5a Approx. 14,000 SF Parcel 5b Approx. 11,000 SF Parcel 6 Approx. 21,000 SF Parcel 7a Approx. 26,000 SF Parcel 7b Approx. 20,000 SF Parcel 8 Approx. 17,000 SF Parcel 9 Approx. 31,000 SF Parcel 10 Approx. 85,000 SF Parcel 11 Approx. 50,000 SF Parcel 12 Approx. 86,000 SF Parcel 13 Approx. 15,000 SF Parcel 14 Approx. 34,000 SF Redevelopment site with Parcel 7b Parcel 15 Redevelopment Parcel 16 Redevelopment Total Parcels 13 Acres DRAFT FOR REVIEW: May 16, 2017 22 Phase 1 Development Phase 2 Development Redevelopment Opportunity Grandview Green Concept D2017 Parcels Grandview Green Full Build Out DRAFT FOR REVIEW: May 16, 2017 23 Grandview Green View Looking North East DRAFT FOR REVIEW: May 16, 2017 24 Grandview Green View Looking South East DRAFT FOR REVIEW: May 16, 2017 25 Financial Assumptions & Analysis Grandview Green Feasibility Study DRAFT FOR REVIEW: May 16, 2017 26 Grandview Green Roof Block Summaries -Assumptions DRAFT FOR REVIEW: May 16, 2017 27 Category Cost per Sq. Ft. Build - Residential 240 Build - Commercial 180 Land - Residential*80 Land - Commercial*80 Institutional Devel.180 Personal Prop.55 Parking 30,000 / unit Green Lid Construction 110 Green Lids - Maintenance 150,000 / lid / yr. Road Alignments 25,000,000 Land Sq. Ft. Land Value Residential 451,710 36,136,811 Commercial 157,290 12,583,189 Institutional 136,000 10,880,000 Totals 745,000 59,600,000 61%21% 18% % of Total Land Residential Commercial Institutional Grandview Green RoofCurrent Tax Roll DRAFT FOR REVIEW: May 16, 2017 28 Phase 1 Development Phase 2 Development Grandview Green RoofCurrent vs. Projected Revenue Stream DRAFT FOR REVIEW: May 16, 2017 29 (2,000,000) - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Property Tax Revenue Less: Current Tax Roll Sales Tax Revenue Preliminary Current vs. Projected Revenue Stream * Sales Tax on Initial Construction ($30M) * 15-Yr. Property Tax Revenue on Phased Investment ($100M) (excluding parking) Bldg. 1 Bldg. 2 Bldg. 3 Bldg. 4 Bldg. 5 Bldg. 6 Bldg. 7 Bldg. 8 Bldg. 9 Bldg. 10 Bldg. 11 Bldg. 12 Bldg. 13 Bridge 1 Bridge 2 Grandview Green Roof Real Estate Tax •Current vs. Projected •15 yr. term •Phased investment DRAFT FOR REVIEW: May 16, 2017 30 --- (2,000,000) - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Ph I -Bldg. 1 Ph. I -Bldg. 2 Ph. I -Bldg. 3 Ph. I -Bldg. 4 Ph. I -Bldg. 5 Ph. 1 -Bldg. 6 Ph. I -Bldg. 7 Ph. I -Bldg. 8 Ph. I -Bldg. 9 Ph. I -Bldg. 10 Ph. II -Bldg. 11 Ph. II -Bldg. 12 Ph. II -Bldg. 13 Ph. I -Green Roof Ph. II -Green Roof Projected New Tax Current Tax Grandview Green RoofInvestment Summary DRAFT FOR REVIEW: May 16, 2017 31 Ph. I - Bldg. 1 (yr. 1 invest.)71 - 22,000 22,000 44,000 3,960,000 - 3,960,000 2,420,000 2,130,000 12,470,000 Ph. I - Bldg. 2 (yr. 1 invest)71 - 22,000 22,000 44,000 3,960,000 - 3,960,000 2,420,000 2,130,000 12,470,000 Ph. I - Bldg. 3 (yr. 3 invest.)125 98,500 15,000 - 113,500 2,700,000 23,640,000 - 825,000 3,750,000 30,915,000 Ph. I - Bldg. 4 (yr. 3 invest.)480 195,000 25,000 - 220,000 4,500,000 46,800,000 - 1,375,000 14,400,000 67,075,000 Ph. I - Bldg. 5 (yr. 3 invest.)- - 36,000 - 36,000 6,480,000 - - 1,980,000 - 8,460,000 Ph. I - Bldg. 6 (yr. 4 invest.)- - 21,000 - 21,000 3,780,000 - - 1,155,000 - 4,935,000 Ph. I - Bldg. 7 (yr. 4 invest.)210 303,600 40,500 - 344,100 7,290,000 72,864,000 - 2,227,500 6,300,000 88,681,500 Ph. I - Bldg. 8 (yr. 4 invest.)48 83,200 5,000 - 88,200 900,000 19,968,000 - 275,000 1,440,000 22,583,000 Ph. I - Bldg. 9 (yr. 5 invest.)80 - - 84,000 84,000 - - 15,120,000 4,620,000 2,400,000 22,140,000 Ph. I - Bldg. 10 (yr. 5 invest)685 323,000 80,000 - 403,000 14,400,000 77,520,000 - 4,400,000 20,550,000 116,870,000 Ph. II - Bldg. 11 (yr. 5 invest.)128 172,000 110,000 - 282,000 19,800,000 41,280,000 - 6,050,000 3,840,000 70,970,000 Ph. II - Bldg. 12 (yr. 6 invest.)342 189,000 53,600 - 242,600 9,648,000 45,360,000 - 2,948,000 10,260,000 68,216,000 Ph. II - Bldg. 13 (yr. 6 invest.)285 456,100 25,000 - 481,100 4,500,000 109,464,000 - 1,375,000 8,550,000 123,889,000 Ph. I - Green Roof 1 (yr. 1 invest.)- - - - - - - 4,620,000 - - 4,620,000 Ph. II - Green Roof 2 (yr. 6 invest.)- - - - - - - 3,960,000 - - 3,960,000 Possible Road Improvements - - - - - - - 25,000,000 - - 25,000,000 Total 2,525 1,820,400 455,100 128,000 2,403,500 81,918,000 436,896,000 56,620,000 32,070,500 75,750,000 683,254,500 Residential Sq. Ft. Commercial Sq. Ft. Total Developed Sq. Ft. Commercial RP Investment Parking Investment Total Investment Institutional Sq. Ft. Parking Spaces Residential RP Investment Personal Property Investment Institutional RP Investment Residential Sq. Ft. 76% Commercial Sq. Ft.19% Institutional Sq. Ft. 5% Development Ratio Commercial RP Investment 12% Residential RP Investment64% Institutional RP Investment8% Personal Property Investment 5% Parking Investment11% Investment Ratio Grandview Green RoofReturn on Investment * No inflation is taken into consideration, which will positively impact the break-even point because of private investment, assessed value, and millage rate increases. Parking is not included in potential property taxes. DRAFT FOR REVIEW: May 16, 2017 32 Yr. 0 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Total Tax Revenue Sales Tax - 1,431,138 - 4,768,181 5,178,541 9,777,018 8,511,183 - - - - - - - - - 29,666,060 Property Tax - 291,560 724,047 1,759,289 3,443,377 6,123,545 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 99,669,333 Total Tax Revenue - 1,722,698 724,047 6,527,470 8,621,918 15,900,563 17,243,934 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 8,732,751 129,335,393 Less: Public Investment Lid 1 - 4,620,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 6,720,000 Lid 2 - - - - - 3,960,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 5,460,000 Possible Road Issues 25,000,000 - - - - - - - - - - - - - - - 25,000,000 Total Investment 25,000,000 4,620,000 150,000 150,000 150,000 4,110,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 37,180,000 Return on Investment 348% - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 Yr. 0 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10 Yr. 11 Yr. 12 Yr. 13 Yr. 14 Yr. 15 Return on Investment Cumulative Public Revenue Cumulative Public Expense Grandview Green RoofSpecial Tax District Edina’s construction of a green roof to encourage new development will be precedent setting. The philosophy behind establishing a special taxing district to capture and reinvest new tax revenue should be established. •Affordable housing •Micro loans •Green roof maintenance •Green roof programming •Schools •Property tax DRAFT FOR REVIEW: May 16, 2017 33 DRAFT FOR REVIEW: May 16, 2017 17 Discussion BRUCE JACOBSON LANDSCAPE ARCHITECT