HomeMy WebLinkAbout2018-05-01 City Council Work Session PacketAgenda
City Cou n cil Work Session
City of Edina, Minnesota
Edina City Hall Community Room
Tuesday, May 1, 2018
5:30 PM
I.Call To Order
II.Roll Call
III.Grandview Green: Updated Concept for Freeway Lid over Highway
100
IV.Adjournment
The City of Edina wants all res idents to be c om fortable being part of the public
proc ess . If you need as sistance in the way of hearing ampli)c ation, an
interpreter, large-print documents or s om ething els e, pleas e c all 952-927-8861
72 hours in advanc e of the m eeting.
Date: May 1, 2018 Agenda Item #: I I I.
To:Mayor and C ity C ouncil Item Type:
R eports / R ec ommendation
F rom:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:G randview G reen: Updated C onc ept for F reeway Lid
over Highway 100
Dis cus s ion
C ITY O F E D IN A
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
A C TI O N R EQ U ES TED:
No action requested. T his is a discussion item.
I N TR O D U C TI O N:
S ince August 2017, the concept of building a "freeway lid" over a portion of H ighway 100 has been further
explored. T he new structure above the highway lanes would be used as a new public park. T he land next to the
park would be used for new development - a combination of residential, commercial and civic uses.
F or the last several months, City staff and representatives have met with M nD O T officials to explore this
concept. Outside planning and development experts have been engaged. P reliminary engineering studies have
been prepared. I nput has been collected from local C ommissions. P ublic open houses have been held to collect
additional input.
A summary of this additional input and an updated rendering of the concept will be presented for discussion
purposes.
AT TAC HME N T S:
Description
Grandview Green Pres entation
The CITY of EDINA
The Grandview Green:
Spring Update to HRA
April 26, 2018
4-26-2018 HRA Grandview Green Presentation 1
The CITY of EDINA Agenda For Today:
History
Concept Update
Technical Studies
Policy
Financial Overview
HRA Discussion On Next Steps
4-26-2018 HRA Grandview Green Presentation 2
The CITY of EDINA HRA Discussion Sneak Peak:
•Should the Grandview Green be included in the Comprehensive Plan?
•Should the HRA sign a MOU with MnDOT?
•Should we begin lease negotiations with MnDOT?
•Should we create a phased development plan for the Grandview Green?
•Should we build a financial model that supports the phased development plan?
4-26-2018 HRA Grandview Green Presentation 3
The CITY of EDINA
Interstate and Highway Lids
are already located across
the United States- including
in MN!
4-26-2018 HRA Grandview Green Presentation 4
The CITY of EDINA Grandview History
4-26-2018 HRA Grandview Green Presentation 5
The CITY of EDINA Grandview Fall 2017-2018
Feasibility
Study Urban Land
Institute TAP
AAF Design
Managers’
Academy
Community
Open Houses
Community
Roadshow
Technical
Studies MnDOT Policy Financial
Structure
Sustainability
Property
Rights
= an updated Grandview Green Concept!
Transportation
Market Research Water Main Sanitary Sewer
Storm Sewer
4-26-2018 HRA Grandview Green Presentation 6
The CITY of EDINA Grandview District: 7 Guiding Principles
Leverage publicly owned parcels and civic presence to create a vibrant and connected district that serves
as a catalyst for high quality, integrated public and private development.
Enhance the district’s economic viability as a neighborhood center with regional connections, recognizing
that meeting the needs of both businesses and residents will make the district a good place to do business.
Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure
and taking advantage of the natural topography of the area.
Design for the present and future by pursuing logical increments of change using key parcels as stepping
stones to a more vibrant, walkable, functional attractive and life-filled place.
Organize parking as an effective resource for the district by linking community parking to public and private
destinations, while also providing parking that is convenient for businesses and customers.
Improve movement within and access to the district for people of all ages by facilitating multiple modes of
transportation and preserving future transit opportunities provided by the rail corridor.
Create an identity and unique sense of place that incorporates natural spaces into a high quality and
sustainable development reflecting Edina’s innovative development heritage.
4-26-2018 HRA Grandview Green Presentation 7
The CITY of EDINA
Concept Update
4-26-2018 HRA Grandview Green Presentation 8
The CITY of EDINA 2017 Concept Review
Date Feedback Event Date Feedback Event
9/5 Urban Land Institute Technical
Assistance Panel
10/13 Edina Chamber of Commerce
9/11 Community Health Commission 10/31 Edina Morning Rotary Club
9/12 Parks and Recreation Commission 11/1 American Architectural Foundation: City
Managers’ Design Academy
9/13 Planning Commission 11/9 Public Open House at City Hall
9/26 Human Rights and Relations
Commission
11/13 Public Open House at City Hall
9/28 Arts and Culture Commission 12/14 Grandview Green Alumni Focus Group
9/28 Transportation Commission MnDOT Meetings Twice Per Month
10/10 Historic Preservation Commission
10/12 Environment and Energy Commission
10/19 Edina Noon Rotary Club
Public Notices:
•75 Community Boards
(coffee shops, libraries,
grocery stores, etc.)
•Newspaper Event
Calendars
•Online Announcements
•900+ Resident Emails
(individuals who
signed up for
Grandview district
updates over the past
ten years)
4-26-2018 HRA Grandview Green Presentation 9
The CITY of EDINA The Grandview Green
Vision Statement:
Grandview Green is a model for connected, healthy, and sustainable living that operates with net-
zero buildings, infrastructure, and utility services.
Mission Statement:
Creates new public green space, increasing connectivity to nature and community
Reestablishes street grids, safe pedestrian walkways and bicycle paths
Reconnects neighborhoods and communities divided by Highway 100
Delivers a fiscally sustainable model: new public amenities are born through the private development of public
land
Employs sustainability efforts through conservation, renewable resources, and resilient infrastructure reducing
long-term operational costs
Provides an opportunity to co-locate residential, commercial and public community centers in one district
Serves as a case study for sustainable lid development in Minnesota
4-26-2018 HRA Grandview Green Presentation 10
The CITY of EDINA
Weaknesses: Strengths:
1.Traffic Congestion 1. Safe Walking and Biking
2.Increased Density 2. New Civic Amenities
3.Not Enough Green Space 3. More Green Space
4. Why Change? 4. Change is Overdue
4-26-2018 HRA Grandview Green Presentation 11
The CITY of EDINA
Create a vista to City Hall; Let Vernon and Eden streets be the natural park boundaries.
Don’t put a road through the park. Instead consider this east-west connection as a bike-pedestrian route.
Vehicular edges are okay as they promote part access and better connections across the site.
A master developer is not recommended. While this could be done, the panel felt having a private sector team between the
public and the city could add complications that make the process more challenging. In a sense, the City is the master
developer.
Conduct a lid-area study to develop a master plan for the expanded district area and determine its boundaries as soon as
possible. The Master Plan should allow for flexible zoning and uses. Developers will not want to face second-guessing down
the road. Creating a vision and goals for the public realm as early as possible will build community interest and support and
help developers envision themselves in the area.
Affordable housing for workers employed in Edina should be a priority for Grandview Green.
Consider holding one or more sites in Grandview Green specifically for affordable or mixed-income housing. The cost of
land, especially in places like Edina, is a major impediment for housing developers. If a site or two were reserved for
affordable housing at a discounted price, it is likely that the rest of the financing package will come together.
In addition to Edina’s Affordable Housing policy, more flexible zoning standards in Grandview may also incentivize
affordable housing. One idea would be to “automatically” allow a commercial property to become mixed use with the
inclusion of a certain percentage of affordable units.
4-26-2018 HRA Grandview Green Presentation 12
The CITY of EDINA
Prepare alternative density models and corresponding cost-benefit analyses to determine project viability at different
buildout levels. Start with what is the least that can happen to make the infrastructure pencil out and move up from there to
minimize risk.
Consider using the Alternative Urban Areawide Review (AUAR) process to facilitate alternative density models. This should
be done after completing the master plan to help understand the cumulative impacts of development to the district and set
the baseline for maximum densities.
Get a firmer picture of the district parking needs. Determine how it will be funded and who will build it. The private sector
likely cannot afford to front end parking costs. Identify potential phasing for construction.
Look for opportunities for sustainability and shared uses across the district such as stormwater collection, garbage and
recycling, and possibly district energy generation.
Start thinking about how work might be phased. This is closely related to identifying shared use opportunities. Developing a
plan for how infrastructure and public realm improvements might be phased will improve efficiency, speed time to delivery,
and save money.
Begin looking for strategic opportunities for land swaps and relocations. Think about how the City can work with existing
property owners who may be interested in relocation within or outside of Grandview to aid in accomplishing the vision for
the area.
Hire a good landscape architect to create drawings that capture the vision for the park / civic space – these are the desired
highlights of this development.
4-26-2018 HRA Grandview Green Presentation 13
The CITY of EDINA Grandview Green: Updated Plan
4-26-2018 HRA Grandview Green Presentation 14
The CITY of EDINA
4-26-2018 HRA Grandview Green Presentation 15
The CITY of EDINA
4-26-2018 HRA Grandview Green Presentation 16
The CITY of EDINA
4-26-2018 HRA Grandview Green Presentation 17
The CITY of EDINA
4-26-2018 HRA Grandview Green Presentation 18
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 19
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 20
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 21
The CITY of EDINA
Technial Studies
4-26-2018 HRA Grandview Green Presentation 22
The CITY of EDINA
Technial Studies
4-26-2018 HRA Grandview Green Presentation 23
The CITY of EDINA
Technial Studies
4-26-2018 HRA Grandview Green Presentation 24
The CITY of EDINA
Technial Studies
4-26-2018 HRA Grandview Green Presentation 25
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 26
The CITY of EDINA Market Research Study
Summary: “The Grandview Green site has the potential to be a “best in class” development in the Twin Cities, incorporating a
variety of land uses while incorporating “place making” into the development with leisure and green spaces. Although the
development could incorporate various private sector developments; the catalyst for the Grandview Green project will be
centered around the green/open space on top of the lid.”
“The lid concept should be centered on the park and recreational amenities. A park over Highway 100 would take advantage of
previously unusable space off the freeway and would not displace any existing property owners. The recreational space has the
potential to create economic benefits to the surrounding area while making adjacent parcels more marketable and putting new
property on the tax rolls.”
4-26-2018 HRA Grandview Green Presentation 27
The CITY of EDINA Market Research Study
CRITICAL:
Transportation: Critical to the success of the project. Could include bike paths, walking paths, etc. Future transit stops and
structured parking will be important to meet parking demands for tenants and events.
STRONG DEMAND:
General-Occupancy Rental Housing: Excellent area for higher-density rental housing in a mixed-use format.
Condominium Housing: Strong demand due to pent up demand and favorable demographics for condo housing.
Senior Housing: Excellent senior housing site in a mid-rise to high-rise development format.
Retail: Excellent location for retail or retail-related commercial uses. Retail could be new concepts different from 50th and
France or Southdale area.
Entertainment: High household spending on dining out, entertainment and recreation in the PMA suggests strong demand
for restaurants and entertainment venues. Due to the location near the Edina City Hall, other governmental and public uses
would be well suited for the Grandview Green area.
VIABLE:
Office: Viable land use in the longer-term. At the present time, market is soft and not supported.
Medical Office: Because of medical concentration near France Ave., medical tenants may prefer being near established
concentration of health care users. However, could still attract a user due to access to Highway 100.
Lodging: Supply is starting to outpace demand, but a select service brand may be well received at Hwy. 100 and 50th Street.
4-26-2018 HRA Grandview Green Presentation 28
The CITY of EDINA Property Research
MnDOT:
◦Completed fee/easement research and mapping for the district
◦Next Steps: the preparation of legal descriptions and deed documents necessary for
the transfer of the property rights from Hennepin County to the State of Minnesota
(process will begin in a few months after light rail projects are complete).
Edina:
◦Completed underlying title research for the district
◦Next Steps:
City will acquire underlying fee for one parcel where Hennepin County owns an easement
MnDOT is, however, taking the lead to research the process of transferring particular
interests to the City
4-26-2018 HRA Grandview Green Presentation 29
The CITY of EDINA Transportation Study
Built upon the 2016 Grandview Transportation Study
Added new public land with assumed uses in Fall 2017 concept map
Result: Supported with some concerns under current transportation
model
What will transportation look like in 5-10 years?
◦Car sharing, bike sharing, autonomous vehicles – big changes coming
4-26-2018 HRA Grandview Green Presentation 30
The CITY of EDINA Transportation Study
Handout
Signalized Intersections: Level of Service C or better
Unsignalized Intersection: Level of Service D or better
Identified Concerns:
◦Loss of east-west connector road, now dedicated to pedestrian
and bicycle
◦Increased traffic volumes on 50th Street
◦Type of facility on Vernon Avenue
◦Cost: estimated $25 million
4-26-2018 HRA Grandview Green Presentation 31
The CITY of EDINA Sanitary Sewer Study
$3-$5.8 Million
4-26-2018 HRA Grandview Green Presentation 32
The CITY of EDINA Water Main Study
$3.1 Million
4-26-2018 HRA Grandview Green Presentation 33
The CITY of EDINA Storm Sewer
Study
$1.2 - 3.1 Million
4-26-2018 HRA Grandview Green Presentation 34
The CITY of EDINA Sustainability Study:
Impact Areas Identified
4-26-2018 HRA Grandview Green Presentation 35
The CITY of EDINA
High-Efficiency Buildings +
Electrification (A2)
•~20% more efficient than anticip.
2021 MN Energy Code
•Electric space & water heating
systems
Ground-Source District (A4)
•Moderate temperature loop
•Heat pump integreation allows for
heating & cooling benefits
Business as Usual Development
(A1)
•Equivalent of anticipated MN 2021
Energy Code
Central Plant District
(A3)
•4-pipe system
•Allows for simultaneous
heating & cooling
Sustainability Energy Study:
District Services
4-26-2018 HRA Grandview Green Presentation 36
The CITY of EDINA
*Based on current PUC approvals, in 2030 Xcel Energy’s emissions factor is anticipated to be 411
lbs/MWH. UnofficiallThis does include additional carbon reductions that has been unofficially
announced by Xcel Energy in October 2017.
Ground Source
+ Rooftop Solar
PV
Sustainability Energy Study:
Total Site Carbon Emissions by Scenario
4-26-2018 HRA Grandview Green Presentation 37
The CITY of EDINA Update on Proposed Legislation
Current state law does not have a provision for this type of development. Other MN communities
exploring lid development include St. Paul and Duluth.
Legislation for Special TIF Legislation to Finance the Grandview Green has been introduced in both the
House and Senate: HF 4408 (Anselmo, Rosenthal)/ SF 4004 (Franzen).
Much of our effort this session has been getting local legislators up to speed, identifying the TIF tools
needed for financing, finalizing bill language, and starting discussions with key legislative stakeholders.
Edina and our lobbying team have met with the House and Senate Tax Chairs, the Governor’s Office, the
MN Department of Transportation and other key decision makers in the Legislature. We received a
hearing in the MN House of Representatives on Friday, April 20, 2018.
Local legislators and chairs have noted that this is a large and complex project and may take more than
one session to accomplish legislatively.
4-26-2018 HRA Grandview Green Presentation 38
The CITY of EDINA Initial Financial Assessment
Tax Projections and TIF
Pay 2018 Rates
Square Feet /Value per sq. ft. or Estimated Market Class Tax
Units Value per unit Value Rate Capacity
$273,600,000 $3,275,750 2.31%
TAX BREAKDOWN - Annual Taxes at Full Build Out
Estimated Tax Rate and Fiscal Disparities Local TC City County School Mk Value State-wide
Value Capacity Taxes Taxes Taxes Portion Portion Dist Taxes Taxes
Tax Rate 1.45095 1.12296 0.27849 0.42808 0.10667 0.30972 0.0022182 0.43865
Gross Taxes $152,250 $247,970 $61,496 $94,528 $23,555 $68,392 $36,378 $142,890
Tax Rate 1.45095 1.12296 0.27849 0.42808 0.10667 0.30972 0.0022182 0.43865
Gross Taxes $0 $3,312,732 $821,546 $1,262,836 $314,677 $913,674 $523,495 $0
Tax Rate 1.45095 1.12296 0.27849 0.42808 0.10667 0.30972 0.0022182 0.43865
Gross Taxes $0 $0 $0 $0 $0 $0 $0 $0
$152,250 $3,560,702 $883,041 $1,357,364 $338,231 $982,066 $559,874 $142,890 $4,415,717
TIF Present Value (@4.00%):$48,429,000
Commercial $16,400,000 325,750
1,180,000 $200
Development
Institutional / Civic $21,200,000 0
Multi-Family $236,000,000 2,950,000 $3,836,227
2,950,000
Misc TOTAL
Institutional /
Civic $21,200,000 0.00%0106,000 $200
Multi-Family
% Increase to City of Edina
Tax
Capacity
Taxable
Market Value
$0
PROJECT INFORMATION - Total Build Out
$579,489
Development
Commercial $16,400,000 1.5-2%325,75082,000 $200
$236,000,000 1.25%
2.19%
0.14%0.23%
2.04%2.08%
0.00%0.00%
4-26-2018 HRA Grandview Green Presentation 39
The CITY of EDINA Initial Financial Assessment
Potential Public Sources and Uses
Years 1 2 3 4 5 6 Total
PUBLIC SOURCES
Land Sale / Lease / Assessment
Commercial (@ $45 psf land use)733,095 - 567,765 - 151,470 - 1,452,330
Multi-Family (@ $15,000/unit)2,700,000 - 7,290,000 - 7,710,000 - 17,700,000
Institutional / Civic (@ $45 psf land use)2,575,980 - - - - - 2,575,980
Land Revenues Subtotal 6,009,075 - 7,857,765 - 7,861,470 - 21,728,310
Developer Contributions (% of up-front infrastructure cost)- - - - - - -
Other City Funding (100% of infrastructure cost net of land proceeds: TIF, Fees, Bonds, etc.)38,186,905 - (7,857,765) - (3,901,470) - 26,427,670
Parking (Developer, Fees, Bonds, etc.)13,500,000 - 14,400,000 - 20,550,000 8,550,000 57,000,000
Grants - - - - - - -
TOTAL CAPITAL FUNDING 57,695,980 - 14,400,000 - 24,510,000 8,550,000 105,155,980
PUBLIC USES
MNDOT Acquisition Costs - - - - - - -
Land Write-Down (Civic Uses)2,575,980 - - - - - 2,575,980
Transportation Infrastructure 25,000,000 - - - - - 25,000,000
Utility Infrastructure (high side of ranges)12,000,000 - - - - - 12,000,000
Lid Development 4,620,000 - - 3,960,000 - 8,580,000
Parking Infrastructure (1,900 Assumed @ $30k / stall)*13,500,000 - 14,400,000 20,550,000 8,550,000 57,000,000
Environmental Cleanup Costs - - - - - - -
TOTAL CAPITAL EXPENSES 57,695,980 - 14,400,000 - 24,510,000 8,550,000 105,155,980
4-26-2018 HRA Grandview Green Presentation 40
The CITY of EDINA 1st HRA Discussion Topic: Comp Plan
Should the Grandview Green be included in the
Comprehensive Plan?
4-26-2018 HRA Grandview Green Presentation 41
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 42
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 43
The CITY of EDINA 2nd HRA Discussion Topic: MnDOT
Should the HRA sign a MOU with MnDOT?
Should we begin lease negotiations with MnDOT?
4-26-2018 HRA Grandview Green Presentation 44
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 45
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 46
The CITY of EDINA
3rd HRA Discussion Topic: Development
Should we create a phased development plan for
the Grandview Green?
Should we build a financial model that supports the
phased development plan?
4-26-2018 HRA Grandview Green Presentation 47
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 48
The CITY of EDINA
Technical Studies
4-26-2018 HRA Grandview Green Presentation 49
The CITY of EDINA Contact Information
Scott H. Neal
City Manager
sneal@EdinaMN.gov
952-826-0401
Bill Neuendorf
Economic Development Manager
bneuendorf@EdinaMN.gov
952-491-1143
Katie Clark Sieben
Project Consultant
ksieben@EdinaMN.gov
612-655-5199
4-26-2018 HRA Grandview Green Presentation 50