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HomeMy WebLinkAbout2019-01-17 HRA Work Session Meeting PacketAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Community Room Thursday, January 17, 2019 7:30 AM I.Call to Order II.Roll Call III.5146 Eden Avenue: Discussion of Redevelopment Strategy 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: January 17, 2019 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:5146 Eden Avenue: Discussion of Redevelopment Strategy 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 item pertains to the HRA-owned parcel of land at 5146 Eden Avenue. T his 3.3-acre parcel was formerly the home of the City's public works facility and is vacant. The re-use of this property has been discussed for ten years. Recent efforts to prepare a site plan with a combination of large-scale public and private elements at favorable financial terms have not been successful. Staff will share a brief presentation and seek direction regarding how to proceed with a redevelopment strategy in 2019. ATTACHMENTS: Description Summary of previous studies Staff Presentation 5146 Eden Ave. 5146 Eden Avenue Redevelopment Concepts Previously Investigated 2012-2018 1 2 Prepared by 2010 Community Advisory Team; approved by City Council in 2012 2016 - City engages HRA &Pros to study community center Concludes Frauenshuh planning contract 2018 - City re-engages Frauenshuh to study high-rise and mid-rise options with arts/senior center but does not execute final agreement 3 2012 Framework Concept •25k Sq.Ft. public building •District parking garage •Access to train tracks •Multi-family residential 4 5 Concept #1 Central Civic with North Residential and South Office Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop 6 Concept #2 Central Civic with North Residential and South Residential Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop 7 Concept #3 North Civic with South Residential Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop Preliminary Program •60,000 + SF community center •8,000 SF restaurant/café •New east-west shared street •outdoor civic plaza •170-unit apartment building •57% public land & 43% private •Streetscaping of Eden & Arcadia Widi f Adi Former Public Works Site Preliminary Concept September 1, 2015 Concept illustration only. Not for construction. 8 9 Former Public Works Site Preliminary Concept – civic facility September 1, 2015 Rendering of a potential community center as the cornerstone of a public/private redevelopment Concept illustration only. Not for construction. 10 Former Public Works Site Preliminary Concept – residential building September 1, 2015 Rendering of a potential apartment building facing Eden Ave. Concept illustration only. Not for construction. 11 Former Public Works Site Preliminary Concept – cross section September 1, 2015 The hilly terrain presents challenges and opportunities. The existing excavation can be used to mask the public parking below the new community building. Concept illustration only. Not for construction. 12 Former Public Works Site Preliminary Program for New Civic Facility April 16, 2015 Performing Arts / Community Center Concept •HGA Architects •May 2016 •70,000 Sq. Ft. •$43 million capital cost 13 Concept illustration only. Not for construction. High Rise Concept Study •Studied Jan-March 2018 •Residential High-Rise •Art/Senior civic facility •Artist/affordable lofts •District parking •Green rooftop park plaza 14 Concept illustration only. Not for construction. High Rise Concept Study •Studied Jan-March 2018 •Residential High-Rise •Art/Senior civic facility •Artist/affordable lofts •District parking •Green rooftop park plaza 15 Concept illustration only. Not for construction. •140-150 Apartments •20k to 50k Sq Ft Arts & Senior Facility •Shared Parking •May to September 2018 16 Concept illustration only. Not for construction. Mid-Rise Concept Study 17 1.8 acres retained for public use 1.5 acres sold for private use Conceptual Community Arts and Active Adult Center July 2018 Concept illustration only. Not for construction. 18 Conceptual Community Arts and Active Adult Center July 2018 Concept illustration only. Not for construction. To date, none of these concepts have moved past the exploratory phase. Unresolved hurdles include: •Undesirable real estate terms •High cost of public building •Increase in debt burden to City taxpayers •Unclear on size, programs and need for new public facility •High cost of structured parking for non-revenue generating public facility 19 The CITY of EDINA Redevelopment and Re-use of 5146 Eden Avenue Discussion of Next Steps Housing and Redevelopment Authority January 17, 2019 For Discussion Only The CITY of EDINA 1)History of recent efforts 2)Lessons learned 3)Options to consider 4)Preliminary recommendation 5)Discussion 6)Next Steps HRA Discussion 1/17/2019 www.EdinaMN.gov 2 Outline for Today’s Discussion The CITY of EDINA HRA Discussion 1/17/2019 www.EdinaMN.gov 3 History of Recent Efforts The CITY of EDINA HRA Discussion 1/17/2019 www.EdinaMN.gov 4 History of Recent Efforts Seven Guiding Principles The CITY of EDINA 1)The site could accommodate one or two buildings 2)Only so much building will fit on a 3.3 acre site 3)The current use of the railroad tracks is likely to remain unchanged 4)The elevation change complicates site planning 5)A shared street along the northern edge would not be able to connect across the tracks for many years 6)There is no interest from Metro Transit in a park-and-ride 7)Structured parking is necessary to maximize use of the site 8)Structured parking is expensive, especially if no revenue is generated HRA Discussion 1/17/2019 www.EdinaMN.gov 5 Lessons Learned -Site Planning The CITY of EDINA 1)There are many ‘wants’ for a new public facility but fewer ‘needs’ 2)Past efforts have been based on a site looking for a “public facility” instead of a well-supported public facility searching for the best site 3)A new large-scale public facility will increase the tax burden to Edina tax payers 4)$30-50 million in new public debt may impact the City’s / HRA’s credit rating 5)District parking may not be essential in this area HRA Discussion 1/17/2019 www.EdinaMN.gov 6 Lessons Learned -Public Facilities The CITY of EDINA 1)There is solid market interest in the property 2)The current economy creates good conditions for a sale 3)The property is valuable 4)Incremental property taxes could be used to fund public improvements throughout Grandview HRA Discussion 1/17/2019 www.EdinaMN.gov 7 Lessons Learned -Real Estate Interest The CITY of EDINA All options remain available for consideration •Hold land for future redevelopment •Sell or Lease property and use proceeds for other purposes •Build a new public facility on the site •Split the property •- hold part and sell part HRA Discussion 1/17/2019 www.EdinaMN.gov 8 Options to Consider The CITY of EDINA If Selling or Leasing … •What are the preferred uses? Residential? Commercial? Medical? •How will the site be laid out? •Will any portion be available to the public? If Holding or Building a new public facility … •What are the uses of the public facility? •How will it be funded? •Who will operate the facility? HRA Discussion 1/17/2019 www.EdinaMN.gov 9 Options to Consider The CITY of EDINA •This may not be the best location for a new large-scale community facility •Any new public facility on the site should fulfill a clear community need and have a clearly defined budget •Staff has concerns with issuance of $30 to $50 million in new public debt in 2019-2020 for a community facility at this site •Consider selling all or a portion of the site in 2019 •Consider using a portion of the site to deliver new affordably-priced housing; perhaps arranged as townhouses, condominiums or co-ops, which are not currently being provided by the private sector HRA Discussion 1/17/2019 www.EdinaMN.gov 10 Preliminary Recommendation – Re-use of the Site The CITY of EDINA Any Request for Proposal must clearly define the expectations of the HRA: •How much land to be sold? •What are preferred uses? •How much public or open space must be provided? •What is the minimum sale price? •How will incremental taxes be used? 1)Issue Request for Proposals in Spring 2019 2)Evaluate Proposals and negotiate terms in summer 2019 3)Take action in Fall 2019 HRA Discussion 1/17/2019 www.EdinaMN.gov 11 Preliminary Recommendation – Process to Evaluate and Act The CITY of EDINA HRA Members - What are your visions, goals and suggestions for the site? How would you suggest proceeding in 2019? HRA Discussion 1/17/2019 www.EdinaMN.gov 12 Discussion The CITY of EDINA Staff will prepare a recommendation based on these suggestions. The recommendation will be presented for consideration at a future HRA meeting. HRA Discussion 1/17/2019 www.EdinaMN.gov 13 Next Steps