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HomeMy WebLinkAbout2025-06-10 HRA Packet Meeting location: Edina City Hall Community Room (2nd Floor) 4801 W. 50th St. Edina, MN Housing & Redevelopment Authority Special Meeting Agenda Tuesday, June 10, 2025 4:00 PM 1. Call to Order 2. Roll Call 3. Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) 3.1. MOTION TO CLOSE SESSION: as permitted by MS. 13D.05 subdivision 3 to review and discuss proposals for sale of land at 5146 Eden Ave. 3.2. Motion to move back into open session. 4. Adjournment Page 1 of 13 d ITEM REPORT Date: June 10, 2025 Item Activity: Discussion Meeting: Housing & Redevelopment Authority Agenda Number: 3.1 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: MOTION TO CLOSE SESSION: as permitted by MS. 13D.05 subdivision 3 to review and discuss proposals for sale of land at 5146 Eden Ave. Action Requested: Motion to close session as permitted by MS. 13D.05 subdivision 3 to review and discuss proposals for sale of land at 5146 Eden Ave. Information/Background: This item pertains to the potential sale of real estate located at 5146 Eden Avenue and is a continuation of the discussion that was held at the May 15, 2025 meeting. Eleven development teams responded to a Request for Proposal (RFP) to purchase and redevelop the vacant parcel. Each proposal will be reviewed and discussed in closed session, to maintain the ability for the HRA to negotiate for the best project at the best sales price. No formal action will be taken in the closed session. Any formal decision will occur in a future open meeting. Resources/Financial Impacts: NA Relationship to City Policies: Supporting Documentation: 1. 5146 Eden - list of responders April 2025 PUBLIC 2. Housing RFP 5146 Eden Ave March 2025 Page 2 of 13 List of Developer(s) who submitted proposals in response to Edina’s RFP for 5146 Eden Avenue (April 2025) (in alphabetical order) •Crowe Companies, Assembly MN •CSM Corporation •Gramercy Development, LLC •Hempel Real Estate, Monarch Development Partners, Jester Concepts, Rokos Advisors •Lifestyle Communities, Ron Clark Construction •Noor Companies, Wellington Management, Inc. •Onward Investors, LLC,, Ebenezer Homes, Leap Development •Opus Development Company, LLC •Real Estate Equities •Roers Companies •Sherman Associates, Twin Cities Habitat for Humanity April 29, 2025 Page 3 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 1 EDINA HOUSING & REDEVELOPMENT AUTHORITY Request for Proposal Redevelopment Opportunity 5146 Eden Ave. Edina, MN 55436 INTRODUCTION The City of Edina and the Edina Housing and Redevelopment Authority (HRA) are seeking a creative and experienced developer(s) to construct new mixed housing/commercial project on a vacant 3-acre site in Edina’s Grandview District. This packet contains information to guide prospective developers as they prepare proposals to purchase and redevelop the site. Teams of developers are also welcome. The Edina HRA is open to reasonable offers that allow the preferred type of project to be built at the maximum land price to the City. The land will be sold in ‘as is’ condition subject to permanent easements for public outdoor areas and covenants for long-term affordability of some of the new housing units. Proposals are due by Monday April 21st, 2025 at 5:00 pm CST. Page 4 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 2 VISIONS FOR A VIBRANT NEIGHBORHOOD Several properties in the Grandview area were formerly used for industrial purposes. Over several decades, the neighborhood transitioned to a mixture of uses including office, retail, housing, institutional and civic. This trend is expected to continue when other sites transition. The City completed a community-based planning process to craft a long-term vision for the Grandview District. The resulting “Grandview Development Framework” established Seven Guiding Principles that are applied to new real estate projects. Key excerpts follow. Grandview Seven Guiding Principles 1) … create a vibrant and connected District that serves as a catalyst for high quality, integrated … development 2) …a neighborhood center with regional connections… 3) Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure … 4) … pursue logical increments of change… to [create] a more vibrant, walkable, functional, attractive, and life-filled place. 5) Organize parking … link community parking to public and private destinations … 6) Improve movement within and access to the District for people of all ages … 7) Create an identity and unique sense of place that incorporates natural spaces … Page 5 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 3 The primary outcomes of the Grandview Development Framework include: • Support the “go to” auto-oriented uses (like grocery store, coffee shop and funeral home) while encouraging more “stay at” pedestrian-oriented uses (like new housing, new restaurants and new public space. • Recognize and respond to the need for a range of housing types. • Emphasize a pedestrian-oriented sense of place that produces an appropriate scale and function with a high degree of walkability. • Support economic growth and community stability by providing accessible and efficient connections between home, school, work, recreation and business destinations. Over the years, the Edina HRA has explored a variety of programs for the site. A new developer is sought for the 5146 site with the intention of breaking ground in 2026. GENERAL SITE INFORMATION • Approximately 3-acre vacant site • Parcel ID #s 28-117-21-31-0014, -0015 and -0016 • Northern edge of the site has been improved with public sidewalk and pedestrian bridge. These improvements will remain and will not be sold. • Previous storage/repair facility on the site was demolished in 2013 • Environmental studies identified remains of hydraulic fluid in limited areas of the southern portion of the site; other contaminants remediated in 2013 • Approx 34 ft elevation change from north to south property boundaries • Surrounded by commercial, multi-family and institutional users • Adjacent to Canadian Pacific Kansas City railroad tracks (aka Dan Patch line) • Adjacent to public parking garage • Easy access to and from Highway 100 • Currently zoned for industrial and guided for mixed uses • Property is currently owned by the Edina Housing & Redevelopment Authority (HRA); title will be transferred to City of Edina before purchase agreement executed with developer • Land sold in ‘as is’ condition. • Supplemental information is available online at www.edinamn.gov. Page 6 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 4 DESIRED TYPE OF REDEVELOPMENT Proposals should be primarily focused on new mixed use or residential development that creates a vibrant destination for residents, workers and guests. Proposals for industrial uses will not be accepted at this location. The proposal must complement the overall Grandview District taking the general vision expressed in the Guiding Principles into consideration. Recognize that the Development Framework establishes only a general vision and is not considered a mandatory blueprint. Ownership units preferred In the past decade, thousands of new rental apartment units have been constructed in Edina. At this location, there is a strong preference for other types of housing, especially ownership units like townhouses, condominiums or cooperatives. Proposals with primarily luxury and market- rate rental housing will be considered but are a low priority at this location. Creative types of housing proposals are preferred and encouraged. Examples include (but are not limited to): missing middle, townhouses, mixed-income, attainable, affordable, co-housing flats, courtyard buildings, passive house, smaller-scale apartments or condominium building(s), car-share program, limited equity models, community land trust model. Modest Living at a Range of Prices In this location, there is a preference for modest living arrangements to keep some of the unit prices low. Preference will be given to proposals that are skewed toward affordability and attainability instead of luxury while still being responsive to the marketplace. Commercial uses A combination of housing and commercial uses is strongly preferred, but not mandatory. Jester Concepts was formerly under contract to develop a new restaurant with indoor and outdoor seating on a portion of the site. Although the contract has expired, Jester still has interest to create a new restaurant in a portion of the site. Proposals that include Jester as a partner will be considered on the same basis as other potential commercial partners. Walkable and Connected The proposed site plan must create a walkable environment that provides convenient access routes for pedestrians and bicyclists to travel to, from and within the site. Scale and Massing While moderate levels of height and density are possible on this site, the City does not strive to maximize the height or density at this location. The public streets closest to the Eden/Arcadia intersection are preferred to be lined with lower height buildings (2-3 stories for Page 7 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 5 example). Additional height is acceptable and preferred in the western and northern portions of the site to avoid overwhelming the public streets. The layout and massing of new buildings must recognize the importance of the new sidewalk and pedestrian bridge at the northern edge of the site. This public route provides convenient access from the parking garage to the site. This public route must remain welcoming to guests and visitors after the site is developed. Outdoor Green Space A portion of the site should be arranged to provide a shared outdoor space for residents, guests and the general public. This could be arranged with a combination of landscaped and hardscaped areas. This outdoor space is anticipated to be privately owned and maintained and subject to a limited-access public use easement. There is no mandatory size or placement of this outdoor space. Additional outdoor spaces exclusively for residents and guests of the new building are also encouraged provided that a portion can be shared with the general public. Parking Private parking should be included on site to meet the market needs of the proposed project. The adjacent Grandview Parking Garage is owned by the City and available as a shared amenity to all surrounding properties. This public facility is frequently underutilized and has some availability during daytime hours (M-F) and is fully available on weekday evenings and weekends. This public garage is available for the limited shared use by guests, workers and customers. A new pedestrian bridge provides access from the site to the parking garage. ZONING AND PLANNING EXPECTATIONS The site is currently zoned Planned Industrial District (PID). In 2022, the site secured preliminary Planned Unit Development (PUD) rezoning that included a senior housing cooperative, full-service restaurant and public park. That PUD was not finalized. None of the pre-established zoning designations in Edina’s Zoning Code are suitable to achieve the development goals envisioned in the Grandview Development Framework. Thus, the pending PUD zoning is anticipated to be modified (or replaced) to reflect the preferred developers proposal. A brief and high-level summary of zoning regulations follows. Developers are strongly encouraged to conduct a full code review as part of their submission. Future Land Use Guidance (Comp Plan pg 3-30) Guided as “Mixed Use Center” - Primary uses: retail, office, service, multi-family residential and institutional - Vertical mixed use is encouraged - Create new pedestrian and streetscape amenities Page 8 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 6 - Encourage structured parking - Buildings may “step down” in height from intersections Residential Density (Comp Plan, pg 3-30) Guided for 20 to 100 dwelling units per acre depending on layout; acceptable density level determined using the PUD rezoning process; higher density levels require greater degrees of affordability Floor to Area Ratio Varies by land use, typically not applicable to multi-family residential Building Height (App. A Height Overlay District) Zoned for 4 stories or 48 ft based on HOD-4 overlay; could be modified using PUD rezoning process; height of adjacent Jerry’s office building typically recognized as acceptable limit for projects in this area Minimum Parking (Sec. 36-1311 to 36- 1326) Varies by land use; minimum requirements can be adjusted if justified by an independent Parking and Traffic Study as part of the PUD rezoning process; there is a public parking garage adjacent to the site Building Lot Coverage (Sec. 36-525) Varies by land use; can be adjusted using the PUD rezoning process provided that alternate provisions for storm water and landscaping are provided Setback Varies by land use and building height; at least 16-22 feet recommended from curb along Eden and Arcadia; sufficient width to accommodate fire department operations on other sides Sidewalks (Sec 36-1274) Complete sidewalks required along Eden and Arcadia; 5 ft minimum sidewalk with 5 ft landscaped boulevard Fire Department Access An alley or other access route is required for Fire Department access to the full site Architectural Design Not regulated; a variety of styles and massing including articulation and step backs is preferred Exterior Materials (Sec 36-618(11)) Not regulated; mixture or natural materials preferred, a variety of materials are acceptable using the PUD rezoning process Affordability At least 10% of all residential units must be priced as affordable to moderate-income households; a greater number of affordable and attainable units is strongly preferred but not mandatory APPLICABLE CODES, STANDARDS AND POLICIES All proposals are expected to comply with applicable codes and policies, including: • MN State Building Code • MN Accessibility Code • Americans with Disabilities Act (ADA) • Public Right-of-Way Accessibility Guidelines (PROWAG) Page 9 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 7 • Edina Zoning Code • Edina Affordable Housing Policy (2022, as revised) • Edina Sustainable Buildings Policy (2022, as revised) • Edina Grandview Development Framework • Edina Comprehensive Plan • Grandview Maintenance Assessment District ANTICIPATED SELECTION PROCESS The Seller anticipates a two-step selection process. Step 1: All proposals that are responsive to this RFP and received prior to the deadline will be evaluated by City staff and forwarded to the HRA Board and/or City Council members for consideration. Proposals will be evaluated on their (1) professional capabilities to complete the project, (2) compatibility with preferred project types and (3) anticipated land purchase price. The City officials will determine which responders, if any, will be invited to interview. Step 2: A limited number of proposals will be invited to refine their proposal and present a more detailed proposal directly to the City officials (in a public meeting) After conclusion of the presentations, the City officials will re-evaluate the finalists as they select the preferred developer. The announcement of the preferred developer will take place at a subsequent public meeting and will include a Letter of Intent or similar document to identify the terms of sale. After the preferred developer is announced, the City Attorney will prepare and present a Contract for Private Development or similar document that identifies the terms of the sale, the responsibilities and expectations of buyer and seller and deadlines to proceed. After execution of the Contract, the preferred developer will proceed with the City’s standard development review process. This process includes a series of public meetings (sketch plan, preliminary and final) with the Planning Commission and City Council to consider rezoning and site plan approvals. SUBMITTAL REQUIREMENTS AND DEADLINE Motivated developers are encouraged to submit a proposal for consideration. Proposals must follow the general format attached. Send proposals to the City of Edina to the attention of: Bill Neuendorf Economic Development Manager BNeuendorf@EdinaMN.gov Proposals must be received no later than Monday April 21st, 2025 at 5:00 pm CST. Page 10 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 8 QUESTIONS Questions can be directed to Bill Neuendorf, Economic Development Manager at BNeuendorf@EdinaMN.gov for written response no later than Monday March 31st, 2025 at 5:00 pm CST. Responses to questions received by the deadline will be posted to the website. GENERAL TERMS This is a request for proposal and in no way obligates the responder to enter into a contract with the City of Edina or the Edina HRA. Nor does this request obligate the City of Edina or the Edina HRA to enter into a contract with any entity that responds, nor does it limit or restrict the City of Edina or the Edina HRA’s right to enter into a contract with any entity that does not respond to this request. In its sole discretion, the City of Edina or the Edina HRA may pursue discussions with one or more entities responding to this request, or none at all. The City of Edina and 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. Page 11 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 9 5146 Eden Avenue PROPOSAL SUMMARY Use this format to submit your proposal. Attach additional pages as appropriate. Brevity is preferred for the first round. Additional detail will be requested from selected finalists. Failure to provide complete information is grounds for the City to reject the proposal. (1) Contact Information Name of Development Company Contact Name Phone Number and Email Website Name of Development Partner, if any Years of relevant development experience Examples of similar completed projects by developer(s) (project name and location) MBE, WBE, SBE,or VBE status of developer(s) and partners, if applicable (2a) Brief Description of Proposed Project Attach a brief description of the proposed project, including unique characteristics or amenities. Two single sided pages maximum. Also attach a conceptual site plan that generally depicts the site layout and massing envisioned for the site. One page minimum; three pages maximum. (2b) Anticipated Commercial Uses included on Site Description of Commercial Use(s) Approx Size (sq ft) A B C Page 12 of 13 Edina Housing & Redevelopment Authority Issued March 3, 2025 Redevelopment Opportunity – 5146 Eden Ave Page 10 (2c) Anticipated Unit Count (fill in approx. # units of each type) Total Units Affordable Attainable Market Rate < 50% AMI 50% AMI 60% AMI 80% AMI 100% AMI 120% AMI > 120% AMI Townhouse, for-sale Townhouse, rental Cooperative Condominium Rental Apartment, Senior Rental Apartment, All ages Other, A Other, B (3a) Anticipated Land Purchase Price Anticipated Land Price per Unit Anticipated # of Units Sub-Total Townhouse building(s) Multi-family building(s) Other Commercial Use(s) NA Estimated Total Land Purchase Price = (3b) Conditions or Contingencies that impact purchase price or land closing (3c) Describe the type of debt and equity funding anticipated Submitted by (name & date): END Page 13 of 13