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HomeMy WebLinkAbout2021-05-06 HRA Regular Meeting PacketAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota VIRTUAL MEETING Call 800-374-0221, enter Conference ID 1697935 to listen to the meeting. Thursday, May 6, 2021 5:30 PM I.Call to Order II.Roll Call Redevelopment Planning for 5146 Eden Avenue III.5146 Eden Avenue - Discussion of Preferred Outcomes 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 6, 2021 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 Preferred Outcomes 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 required; for discussion only. INTRODUCTION: This item pertains to the future re-use and redevelopment of the vacant site at 5146 Eden Avenue. Over the past ten years, the City & HRA have explored several different concepts for this site. In January 2021, the City entered into a Memorandum of Understanding with Frauenshuh and United Properties to prepare a new concept for the site. The Edina Planning Commission and Edina City Council conducted sketch plan level reviews of the preliminary concept and site plans. Based on the comments and concerns expressed, it would be appropriate for the HRA to discuss it's goals for this property and potential paths to return the vacant property to a productive use. Staff will present a brief background and pose questions for the HRA Board to consider during the discussion. ATTACHMENTS: Description Presentation for Discussion Previous concepts 2012-18 Image survey 2015 Frauenshuh United Prop concept March 2021 North Pavilion Concept April 2021 Frauenshuh United Prop MOU - Jan 2021 The CITY ofEDINA Redevelopment of 5146 Eden Avenue Discussion of Preferred Outcomes Housing and Redevelopment Authority Work Session Discussion May 6, 2021 The CITY ofEDINA 1)Questions to Consider 2)Summary of Past Efforts 3)MOU & Recent Concepts 4)Land Valuation 5)Use of Funds 6)Discussion 1)-Priorities 2)-Preferences 3)-Path Forward Outline for Today’s Discussion HRA Board Work Session 5-6-2021 2 The CITY ofEDINA Staff seeks direction from the Edina HRA, as owner of this vacant property. •Identify the preferred outcomes for the re-use of this asset •Reach consensus on the general direction to move forward in 2021 Today’s Discussion HRA Board Work Session 5-6-2021 3 The CITY ofEDINA 1)What level and type of activity is desired on this site? 2)Which new uses will provide this desired activity? 1)-Should private development continued to be pursued? 2)-Should a new publicly-owned facility be reconsidered? -will CIP and annual budget be increased to allow for construction, programming and maintenance? Preferred Activities on this Site Questions to Consider HRA Board Work Session 5-6-2021 4 The CITY ofEDINA 3)If sold, how should sales price be prioritized? 3)-Should a denser project be sought to increase value? 4)How should sales proceeds be used? 5)Should financial incentives be considered to address unique site conditions? Revenue Expectations for this Site Questions to Consider, continued HRA Board Work Session 5-6-2021 5 The CITY ofEDINA 6)How can desired activities be achieved through the site planning process? 8)-Is standard City review process adequate? 7)Should MOU with Frauenshuh / United Properties be extended to explore other concepts? -Should a different process be used to define the preferred project and select developer? Procedures to Move Forward Questions to Consider, continued HRA Board Work Session 5-6-2021 6 The CITY ofEDINASummary of Past Efforts HRA Board Work Session 5-6-2021 7 Reference separate PDF with 8 concepts explored 2012 to 2018 The CITY ofEDINASeven Guiding Principles HRA Board Work Session 5-6-2021 8 The CITY ofEDINAMOU and Recent Concepts December 2020 to April 2021 HRA Board Work Session 5-6-2021 9 The CITY ofEDINARecent Concepts HRA Board Work Session 5-6-2021 10 MOU Requirements •Ownership housing •Medical Office •Public Plaza •Pedestrian bridge and access •Exclusive relationship January to May 2021, can be extended The CITY ofEDINA HRA Board Work Session 5-6-2021 11 MOU and Recent Concepts The CITY ofEDINARecent Concepts May 2021 HRA Board Work Session 5-6-2021 12 North Plaza & Public Pavilion Concept For Discussion Only The CITY ofEDINARecent Concepts HRA Board Work Session 5-6-2021 13 The CITY ofEDINA HRA Board Work Session 5-6-2021 14 The CITY ofEDINARecent Concepts HRA Board Work Session 5-6-2021 15 The CITY ofEDINA 1)“Highest Value” versus “Fair Market Value” 2)Multi-Family Residential Element 1)-market rate units 2)-affordable units 3)Medical/Office/Commercial Element 4)Adjustment for extra-ordinary site conditions Determining Land Value March 2021 HRA Discussion HRA Board Work Session 5-6-2021 16 The CITY ofEDINA Determine Fair Market Value based on: •Developable square footage of medical office parcel •Number of units on housing parcel •Consider similar project types •Adjust for unique site conditions •Consider cost of public improvements and any public financing •Ultimately, consider pricing that achieves a feasible & buildable project Recommended Valuation Methodology March 2021 Next Steps 1)Submit concept plans for “sketch plan” review 2)Negotiate purchase agreement with actual pricing and possible adjustments 3)Final pricing established after preliminary zoning approvals secured HRA Board Work Session 5-6-2021 17 The CITY ofEDINAHypothetical Land Value -Order of magnitude estimate only -Does not account for any unusual conditions -Price has not yet been negotiated with developers Description Buildable Square Feet Price per Unit Number of Units Hypothetical Land ValueAverageHigh 1) All rental apartments –max density (75 units/acre)130,555 $37,060 $50,000 299 Highest 2) All senior co-op –max density 130,555 $23,185 $30,000 299 Moderate-High 3) North co-op –max density 77,421 $23,185 $30,000 177 Moderate 4) North co-op -anticipated density 77,421 $23,185 $30,000 90 Moderate 5) South medical office 53,134 $30.71 per Sq Ft $39.60 per Sq Ft Na Low-Moderate 6) General retail TBD $30.90 per Sq Ft $65.39 per Sq Ft Na Low-Moderate 18HRA Board Work Session 5-6-2021 The CITY ofEDINA Description of Use Land Value and Growth in Tax Base Unique opportunity Traffic Generation Activity Level Rental Apartments High No Moderate Low Condominiums Moderate-High Yes Moderate Low Co-operative Housing Moderate Yes Low Low Low Density Housing Low-Moderate --Low Low High Density Housing High --Moderate Low Retail Strip Center Low –Moderate No Moderate Low Restaurant Low Slightly High Moderate Medical Office Low-Moderate No High Low Office, traditional Low-Moderate Slightly Moderate Low Public Plaza, destination None Yes Varies Varies Matrix of Land Value & Activity HRA Board Work Session 5-6-2021 19 The CITY ofEDINAAllowable use of HRA proceeds HRA Board Work Session 5-6-2021 20 Allowed •Land acquisition & assembly for redevelopment •Infrastructure for redevelopment •Affordable housing •HRA debt repayment Typically Not Allowed •New public buildings •-new art center •-new park facility •-new fire stations •Repay City debt MN Statutes limit the use of HRA funds to redevelopment and housing activities. The CITY ofEDINA Discussion Priorities –Preferences –Path Forward HRA Board Work Session 5-6-2021 21 The CITY ofEDINA 1)What level and type of activity is desired on this site? 2)Which new uses will provide this desired activity? 1)-Should private development continued to be pursued? 2)-Should a new publicly-owned facility be reconsidered? -will CIP and annual budget be increased to allow for construction, programming and maintenance? Preferred Activities on this Site Questions to Consider HRA Board Work Session 5-6-2021 22 The CITY ofEDINA 3)If sold, how should sales price be prioritized? 3)-Should a denser project be sought to increase value? 4)How should sales proceeds be used? 5)Should financial incentives be considered to address unique site conditions? Revenue Expectations for this Site Questions to Consider, continued HRA Board Work Session 5-6-2021 23 The CITY ofEDINA 6)How can desired activities be achieved through the site planning process? 8)-Is standard City review process adequate? 7)Should MOU with Frauenshuh / United Properties be extended to explore other concepts? -Should a different process be used to define the preferred project and select developer? Procedures to Move Forward Questions to Consider, continued HRA Board Work Session 5-6-2021 24 5146 Eden Avenue Redevelopment Concepts Previously Investigated 2012-2018 1 Summary - January 2019 Prepared by 2010 Community Advisory Team; approved by City Council in 2012 Summary - January 2019 1 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 Summary - January 2019 2 2012 Framework Concept •25k Sq.Ft. public building •District parking garage •Access to train tracks •Multi-family residential Summary - January 2019 3 Concept #1 Central Civic with North Residential and South Office Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop Summary - January 2019 4 Concept #2 Central Civic with North Residential and South Residential Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop Summary - January 2019 5 Concept #3 North Civic with South Residential Former Public Works Site Discovering the Potential May 19, 2015 Public Workshop Summary - January 2019 6 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. Summary - January 2019 7 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. Summary - January 2019 8 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. Summary - January 2019 9 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. Summary - January 2019 10 Former Public Works Site Preliminary Program for New Civic Facility April 16, 2015 Summary - January 2019 11 Performing Arts / Community Center Concept •HGA Architects •May 2016 •70,000 Sq. Ft. •$43 million capital cost Concept illustration only. Not for construction. Summary - January 2019 12 High Rise Concept Study •Studied Jan-March 2018 •Residential High-Rise •Art/Senior civic facility •Artist/affordable lofts •District parking •Green rooftop park plaza Concept illustration only. Not for construction. Summary - January 2019 13 High Rise Concept Study •Studied Jan-March 2018 •Residential High-Rise •Art/Senior civic facility •Artist/affordable lofts •District parking •Green rooftop park plaza Concept illustration only. Not for construction. Summary - January 2019 14 •140-150 Apartments •20k to 50k Sq Ft Arts & Senior Facility •Shared Parking •May to September 2018 Concept illustration only. Not for construction. Mid-Rise Concept Study Summary - January 2019 15 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. Summary - January 2019 16 Conceptual Community Arts and Active Adult Center July 2018 Concept illustration only. Not for construction. Summary - January 2019 17 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 Summary - January 2019 18 IMAGE PREFERENCING STUDY POLLING RESULTS The Former Public Works Site | The City of Edina Community Exploration Session Edina Community Center December 4th, 2014 100 Participants Edina Student Exploration Session Edina High School January 15th, 2015 42 Participants Community Exploration Session [100 participants] December 4th, 2014 Development : Form, Mass + Character MOST PREFERRED Edina Student Exploration Session [42 participants] January 15th, 2015 MOST PREFERREDDevelopment : Form, Mass + Character Community Exploration Session [100 participants] December 4th, 2014 LEAST PREFERREDDevelopment : Form, Mass + Character Edina Student Exploration Session [42 participants] January 15th, 2014 LEAST PREFERREDDevelopment : Form, Mass + Character Community Exploration Session [100 participants] December 4th, 2014 MOST PREFERREDPublic Space Edina Student Exploration Session [42 participants] January 15th, 2015 MOST PREFERREDPublic Space Community Exploration Session [100 participants] December 4th, 2014 LEAST PREFERREDPublic Space Edina Student Exploration Session [42 participants] January 15th, 2014 LEAST PREFERREDPublic Space Community Exploration Session [100 participants] December 4th, 2014 MOST PREFERREDStreetscape + Parking Edina Student Exploration Session [42 participants] January 15th, 2015 MOST PREFERREDStreetscape + Parking Community Exploration Session [100 participants] December 4th, 2014 LEAST PREFERREDStreetscape + Parking Edina Student Exploration Session [42 participants] January 15th, 2014 LEAST PREFERREDStreetscape + Parking Community Exploration Session [100 participants] December 4th, 2014 MOST PREFERREDUses, Events + Activities Edina Student Exploration Session [42 participants] January 15th, 2015 MOST PREFERREDUses, Events + Activities Community Exploration Session [100 participants] December 4th, 2014 LEAST PREFERREDUses, Events + Activities Edina Student Exploration Session [42 participants] January 15th, 2014 LEAST PREFERREDUses, Events + Activities FIRST LEVEL 114'-0" SECOND LEVEL - MOB 128'-0" THIRD LEVEL - MOB 142'-0" ROOF LEVEL - MOB 156'-0" SECOND LEVEL - HOUSING 161'-0" 11 ' - 0 " 11 ' - 0 " 11 ' - 0 " 11 ' - 0 " 11 ' - 0 " 16 ' - 0 " 12 ' - 0 " THIRD LEVEL - HOUSING 172'-0" FOURTH LEVEL - HOUSING 183'-0" FIFTH LEVEL - HOUSING 194'-0" ROOF LEVEL - HOUSING 216'-0" FIRST LEVEL - HOUSING 145'-0" 14 ' - 0 " 14 ' - 0 " 14 ' - 0 " LOWER LEVEL - PARKING HOUSING 133'-0" FIRST LEVEL COVERED PARKING SECOND LEVEL SURFACE PARKING MEDICAL OFFICE BUILDING PLAZA GREEN LOBBY & AMENITY SENIOR CO-OP HOUSING COURT AUTO COURT PEDESTRIAN LINK ROOF DECK -1 LEVEL PARKING SIXTH LEVEL - HOUSING 205'-0" LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 COURT FIRST LEVEL SECOND LEVEL THIRD LEVEL ARCADIA AVE SECTION LINE SECOND LEVEL - HOUSING 161'-0" THIRD LEVEL - HOUSING 172'-0" FOURTH LEVEL - HOUSING 183'-0" FIFTH LEVEL - HOUSING 194'-0" ROOF LEVEL - HOUSING 216'-0" FIRST LEVEL - HOUSING 145'-0" LOWER LEVEL - PARKING HOUSING 133'-0" SIXTH LEVEL - HOUSING 205'-0" JERRY'S PARKING PEDESTRIAN LINK ROOF DECK -1 LEVEL PARKING FIRST LEVEL PARKING SENIOR CO-OP HOUSING LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 1 GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 SITE SECTION -NORTH 1" = 50'-0" SITE SECTION -WEST 1" = 50'-0" DROP-OFF COVERED PARKING 103 STALLS MOB DRO P- O F F 18 4 ' - 4 " OFFICE & SERVICE2-STORY ENTRANCE/LOBBY 199'-8" STAIR 3990 GSF NEW PROPOSED ROUNDABOUT LAYOUT SURFACE PARKING 63 STALLS 2-STORY ENTRANCE/LOBBY OFFICE 7'- 0 " 12 3 ' - 8 " STAIR 7'-0" 17785 GSF OFFICE STAIR OUTDOOR DECK 18575 GSF GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 MOB -FIRST LEVEL FLOOR PLAN 1" = 50'-0" MOB -SECOND LEVEL FLOOR PLAN 1" = 50'-0" MOB -THIRD LEVEL FLOOR PLAN 1" = 50'-0" STORAGE WORKSHOP STAIR STAIR ST A I R STAIR HOUSING LOWER LEVEL PARKING 114 STALLS AUTO COURT COURT GREAT ROOM ENTRANCE & LOBBY MAIL OF F I C E CRAFT STAIR ST A I R STAIR PARLOR GUEST PARKING 39 STALLS TRASH STAGING TRASH STAIR B10 B10 B4B6 B9 B4B2 RESIDENT OUTDOOR GATHERING D R O P-O F F GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 SENIOR CO-OP -LOWER LEVEL PARKING 1"= 40'-0" SENIOR CO-OP -FIRST LEVEL 1"= 40'-0" OPEN LOUNGE & LIBRARY B11 GUEST ROOM FITNESS STAIR STAIR ST A I R STAIRB7 B1 B1 B1 B5 B5B5 B4 B4 B4 B10 B10 B6 B9 B3 B2 B8 B4 B1 B1 B3 B5 B5 B5 B5 B10 B9 ST A I R B7 B1 STAIR STAIR B10 B6 RES STORAGE B4 B4 B4 B2 B8 STAIR GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 SENIOR CO-OP -SECOND LEVEL 1"= 40'-0" SENIOR CO-OP -UPPER LEVELS (3-5) 1"= 40'-0" ROOFTOP PATIO STAIR STAIR CLUB ROOM B7 B4 B1 B1 B1 B4 B3 B8 GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 SENIOR CO-OP -SIXTH LEVEL 1"= 40'-0" GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 SOUTH-EAST PERSPECTIVE GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 NORTH-EAST PERSPECTIVE 1 PROJECT NARRATIVE Sketch Plan Submittal March 31, 2021 Grandview Senior Cooperative & Medical Office Mixed-Use Development 5146 Eden Ave South Edina, Minnesota Project Team: Master Developer Co-Developer Frauenshuh, Inc. United Properties 7101 78th Street West, Suite 100 651 Nicollet Mall, Suite 450 Edina, MN 55439 Minneapolis, MN 55402 Contact: David Anderson, Senior Vice President Contact: Alex Hall, Senior Vice President Phone: 952.829.3480 Phone: 952.820.8725 Email: david.anderson@frauenshuh.com Email: alex.hall@uproperties.com Master Plan Design Team / Architecture Master Plan Design Team / Civil Pope Associates Loucks Associates 1295 Bandana Blvd. N, Suite 200 7200 Hemlock Ln N, Suite 300 St. Paul, MN 55108 Maple Grove, MN 55369 Contact: Paul Holmes, Principal Contact: Vicki VanDell, Engineer Phone: 651.642.9200 Phone: 763.424.5505 email: pholmes@popearch.com email: VVanDell@loucksinc.com Property Owner City of Edina HRA 4801 W 50th St Edina, MN 55424 Contact: Bill Neuendorf, Economic Development Manager Phone: 952.826.0407 Email: BNeuendorf@EdinaMN.gov The team of Frauenshuh, Inc. and United Properties is pleased to submit this package for sketch plan review with the City of Edina Planning Commission and City Council. The enclosed package provides information which describes and illustrates the elements of an exciting redevelopment vision being crafted for the property at 5146 Eden Avenue, commonly referred to as the “former public works site”. 2 At the foundation of this plan and vision are the Grandview District 7 Guiding Principles, which set an important framework for the City’s vision and opportunity to achieve even greater potential for the Grandview District, through sound planning, land uses, design and civic infrastructure reflected in this plan. We are excited to bring this project together, working in collaboration with the City of Edina HRA and community stakeholders to drive the success of this vision. Frauenshuh, Inc. and United Properties are excited to share our long-standing commitment as stakeholders, investors, residents and contributors to the growth and success of the Edina community. We look forward to the opportunity to discuss the overall vision with the Planning Commission and City Council at this early sketch plan/pre-design phase. 1. SITE OVERVIEW Parcel Basics The parcel is approximately 3.125 acres in size and is positioned at the northwest quadrant of Eden Avenue and Arcadia Avenue in the Grandview district of Edina. The site was formerly occupied by the City of Edina public works operations, which relocated its operation to 7450 Metro Blvd. in 2010. Subsequent to the move, the public works building was demolished, and the parcel has remained vacant and minimally maintained in the interim. Project Land Use Data The site is currently zoned Planned Industrial District (PID) and would seek to be rezoned as a Planned Unit Development (PUD) to accommodate the specific use components and attributes that the project will bring to the Grandview district. The proposed development will include a replat of the parcels, creating a new parcel on the north end of the site (the “Senior Cooperative Parcel”) and a parcel on the south end of the site (the “MOB Parcel”) as illustrated in the attached site plan. Integrated with the Senior Cooperative Parcel is an elevated public plaza/green connecting to Arcadia Avenue that would provide an open gathering space amenity and become a unique addition to the community and Arcadia Avenue experience. The north portion of the site would accommodate a future trunk water line extension to be installed, owned and maintained by the City in addition to providing right-of-way for a pedestrian walkway and bridge installation, spanning the rail line and extending to Arcadia Avenue to the east and to the Brookside Parking ramp and nearby developments west of the railroad right-of-way. This pedestrian connection is under evaluation to be developed in coordination with the HRA as part of the 2021 Grandview District improvement plans. In addition to the physical plan and use components of the site, the site plan incorporates and anticipates the future installation of a roundabout at Eden Ave. and Arcadia Ave., widening of Arcadia Ave. and pedestrian improvements to the rail bridge foundation at Eden Ave. These improvements, along with the elements of the development plan for the site, bring together an exciting vision for this important site and its overall integration into the Grandview District. 3 2. DEVELOPMENT DATA Senior Cooperative Overview The senior cooperative project will reside on the north portion of the site with two points of ingress/egress from Arcadia Avenue. The building will be five and one-half stories in height and contain two levels of underground parking (114 spaces), with guest parking on the main level, west portion of the site (39 spaces), for a total of approximately 153 parking spaces. Units will range in size from 1,230 to 1,779 sq. ft. and contain a mix of 2 and 3-bedroom units. Initial programming targets a total unit count of approximately 90 homes. Applewood Pointe Cooperatives provide a “for sale” housing option with high quality finishes in a low maintenance community-based setting. Members elect a resident board of directors responsible for managing their community. Financing is provided through a 40 -ear HUD insured master mortgage. Members choose from 4 equity tiers with the balance financed thru this mortgage eliminating the need to secure individual financing. It is anticipated that this cooperative would include a 10% affordable housing component. Medical Office Building Overview The medical office building project will reside on the south portion of the site with points of ingress/egress from Eden Avenue and Arcadia Avenue. The building will be three stories in height and contain two levels of structured parking (approximately 166 spaces), and a roundabout drop-off area at the southwest entry of the site. The total building area will consist of approximately 40,000 gross square feet and designed to accommodate a range of medical office, clinical and specialty healthcare uses. The materiality and design of the building will provide flexibility to allow the incorporation of brand components that reflect the specific healthcare providers. The overall vision for the building’s architecture will include the incorporation of glass, masonry and metal elements that create an energetic and identifiable ‘point of entry’ into the Grandview district from the southeast. Pedestrian Bridge Overview A key element of the overall vision for the site and response to the Grandview District 7 Guiding Principles is the incorporation of a pedestrian bridge spanning the rail line and connecting the district from east to west. This infrastructure is a key element of ‘unlocking the potential’ of the Brookside parking ramp and drawing pedestrians to destinations on both sides of the rail line through the heart of the Grandview district. Plans are underway for the design scope of this infrastructure and its inclusion with the 2021 Grandview area improvement project. Green Plaza Overview The Green Plaza along Arcadia Avenue is an exciting element of the overall vision of the site and opportunity to bring a dynamic new and functional open space to the Grandview District. The space would be similar in size and dimension to the Grandview Square park and provide 4 adequate space for passive use by pedestrians and also be used for certain types of public gatherings throughout the year. We view the Green Plaza as a key component of the site plan and an exciting opportunity create greater outdoor opportunities for Edina residents, guests and visitors throughout the year. Additionally, we see an opportunity to name or brand the Green Plaza in a way that honors the history of the Edina community and the Grandview District and look forward to exploring these opportunities with the City. Site and Building Program Summary Component Site Area Building Area (Total GSF) FAR Parking Area Total Parking Count Senior Cooperative (SC) 76,000 171,650 2.26 56,740 153 Medical Office Building (MOB) 55,580 40,500 0.73 36,500 166 Green Plaza (11,750 SF) Incl. in SC n/a n/a n/a n/a Total Development Area 131,580 212,150 1.61 93,240 319 Pedestrian Walkway & Bridge 4,540 n/a n/a n/a n/a 3. GRANDVIEW DISTRICT 7 GUIDING PRINCIPLES 1. 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. The 5146 Parcel is the “strategic interior link” between the Grandview District Hwy 100 Frontage area and Vernon Avenue West Gateway area. The proposal activates this link with the pedestrian connections, green plaza on Arcadia and maintains access for transit. 2. Enhance the District’s economic viability as a neighborhood center with regional connections, recognizing that meeting the needs of both business and residents will make the District a good place to do business. Economic viability includes tax base, residential living, expanded service offerings and job creation. The proposal hits on all points with tax capacity generation of the entire site, new home ownership opportunities for Edina residents, and economic development to enhance neighborhood center improvements. 3. Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure and taking advantage of the natural topography of the area. The development is layered over structured parking that uses the natural 35-foot topographic differential from north to south. Pedestrian connectivity – once a barrier, is now an opportunity. 4. Design for the present and for the future by pursuing logical increments of change using key parcels as stepping-stones to a more vibrant, walkable, functional, attractive and life-filled place. The site design captures all these themes – vibrant, walkable, functional, attractive and life filled. 5. 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. The plan offers nearly 200 new parking spaces with the potential for shared district use and moreover activates the Brookside ramp (270+ spaces) into a renewed resource for parking supply in the district with the addition of the pedestrian bridge. 6. Improve movement within and access to the District for people of all ages by facilitating multiple modes of transportation and preserve future transit opportunities provided by the rail corridor. The development is multi-modal, pedestrian led, transit ready. The site plan covers the objective and opportunities for district wide access to and through the site. 7. 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. A combination of common space, home ownership and community health and wellness care packaged within a design plan that is sustainable and augments the potential of existing district infrastructure. 5 4. SUMMARY The team of Frauenshuh, Inc. and United Properties is excited to bring this exciting development vision to life through a collaborative effort with the City of Edina HRA. We believe the elements that are incorporated into this vision provide the opportunity to create a truly forward looking, fitting and catalytic redevelopment of this important site in the Grandview District. Pavilion Concept 6,000- 8,000 SF indoor/outdoor events, markets, receptions. May have a restaurant or café (seasonal or all-seasons) North Plaza and Pavilion Concept Alternative Concept for discussion 4-30-2021 1 North Plaza and Pavilion Concept Alternative Concept for discussion 4-30-2021 2 Multi-purpose and programmable for all-seasons Alternative Concept for discussion 4-30-2021 3 Multi-generational, multi-functional Alternative Concept for discussion 4-30-2021 4 MEMORANDUM OF UNDERSTANDING 5146 EDEN AVENUE MEMORANDUM OF UNDERSTANDING ("MOU") dated this 28th day of January, 2021 ("Effective Date"), by and the Edina Housing and Redevelopment Authority, a public body corporate and politic under the laws of the State of Minnesota (the "HRA") and Frauenshuh, Inc., a Minnesota corporation, d/b/a Frauenshuh Commercial Real Estate ("Frauenshuh") and United Properties Development LLC, a Minnesota limited liability company ("United") (Frauenshuh and United are collectively referred to as the "Developer"). WHEREAS, the HRA owns and desires to promote redevelopment of certain property within the City located at 5146 Eden Avenue, Edina, MN 55436 (the "Property") as depicted in Exhibit A attached hereto; WHEREAS, the Developer desires to explore the possibility of acquiring the Property for a multi-phased mixed-use development, consisting of four (4) mandatory elements, as follows: (i) a Commercial building on the southern portion of the Property; (ii) a Public green plaza in the central portion of the Property; (iii) a Multi-family ownership building on the northern portion of the Property; (iv) a pedestrian crossing bridge over the railroad tracks on the northern edge of the property with future access to railroad tracks at the southern or central portion of the Property; (collectively referred to as the "Proposed Development"); WHEREAS, Developer desires that the HRA work exclusively with Developer related to the redevelopment of the Property to provide Developer with time to study and explore redevelopment of the Property for the Proposed Development; WHEREAS, the HRA is willing to work solely with Developer for the time period provided in this MOU, subject to the conditions identified herein in order to (i) identify a market viable scenario to repurpose the Property for the Proposed Development and (ii) convey the Property at fair market value. NOW THEREFORE the parties agree as follows: 1. TERM. This MOU will commence upon the Effective Date and will terminate one-hundred twenty (120) days after the Effective Date ("Tenn"). Upon mutual agreement of the parties, the Term may be extended based on satisfactory progress or other considerations which may warrant such an extension. 213528v2 2. ASSUMPTIONS AND UNDERSTANDINGS. The parties agree on the following assumptions and understandings with respect to development of the Property and this MOU: a. The studies for development of the Property will include the four mandatory elements described above; b. There is no expectation of a new public building or Metro Transit park-n-ride as part of the Proposed Development of the Property; c. That the combination of elements making up the Proposed Development may not maximize the land value for the HRA, but the HRA places priority on delivering the best practical project following the 7 Guiding Principles, rather than simply maximizing the sale price of the Property. However, the HRA expects that a purchase price for the Property will be based on the fair market value for the approved level of development and mandatory elements of the Property; d. The use of tax increment financing or other public financing sources may be considered to support construction of affordable housing units and public infrastructure including but not limited to the pedestrian crossing bridge over the railroad tracks on the northern edge of the property; e. Rezoning as a planned unit development process may be necessary for the Proposed Development. f. Based on the City and HRA comments on the concept plans proposed under this MOU, the parties will be in a position to make an informed decision about the viability of the Developer's concept for the Proposed Development and will inform the parties' desire to consider preparation of appropriate agreements for the sale and development of the Property following termination of this MOU. g. This MOU is not intended to bind the parties to enter into any future agreement for the sale, acquisition or development of the Property, but is merely intended to set forth the parties' intent to determine whether the parties desire to proceed with the process of negotiating an agreement for the sale and purchase and development of the Property following termination of the MOU. 3. DEVELOPER RESPONSIBILITIES. During the Term of this MOU, Developer agrees that it will: a. Conduct appropriate studies of the Property necessary for determining the feasibility of the Proposed Development of the Property, including: a review of existing site conditions, past studies, relevant codes and guidelines, and market conditions to support the preparation of conceptual plans to redevelop the Property; 213528v2 2 b. Submit conceptual plans to the HRA for review and comment; c. Submit conceptual plans to the City of Edina for review using the City's standard process for sketch plan reviews, which will then be reviewed by the City of Edina staff, Planning Commission and City Council pursuant to the sketch plan review process. d. Present and obtain feedback from stakeholders and other interested community members, as identified by HRA/City staff; e. Submit the methodology for Developer's determination of a purchase offer price for HRA consideration and approval. 4. HRA RESPONSIBILITIES. During the term of this MOU, the HRA agrees that it will: a. Work exclusively with Developer on the study and review of the development of the Property with the intent of identifying the viability of the Proposed Development and identifying a proposed sale price of the Property; b. Identify essential criteria applicable to the development of the Property, including roadway and utility right-of-way needs and public access needs for pedestrians and other non- motorized traffic as well as other preferred criteria to be considered as the Developer prepares concept plans; c. Consider a methodology for determination of a purchase price offer within sixty (60) days after the Effective Date; d. Share existing studies or other information pertinent to the site, upon request of the Developer including: (i) Most recently available ALTA Survey with all Table A checklist requirements; (ii) Most recently available site geotechnical report; (iii) Most recently available Environmental Assessment report(s); (iv) Updated Title Commitment; (v) Copies of any unrecorded easements. leases, licenses and other agreements for use or rights that encumber the Property. 5. CONDITIONS. Developer agrees to the following conditions: a. The Developer's conceptual plans for the Property will be responsive to and to the greatest extent feasible, consistent with: 213528v2 3 the City's Grandview Framework Plan; (ii) the City of Edina Comprehensive Plan; (iii) other applicable guide plans, including the 2016 Grandview Transportation Plan and the 2018 Grandview Stormwater Guide; b. Any and all costs associated with the studies, preparation of concept plans, attendance at meetings and other costs and expenses incurred by Developer in performing the obligations of this MOU shall be the sole responsibility of the Developer; c. The HRA's sole costs incurred in connection with this MOU will be limited to the cost of the HRA's internal staff time that is not typically required to be paid by developers as part of the sketch plan review process; d. During the term of this MOU, the Developer will only communicate with HRA/City staff regarding issues pertinent to the Property. Except for presentations and discussions at public meetings, Developer will not communicate in any way with elected or appointed City or HRA officials regarding issues pertaining to this Property. 6. AMENDMENT. This MOU may be amended by mutual written agreement of the parties. 7. TERMINATION. This MOU may be immediately terminated by a party upon violation of the obligation or conditions of the MOU by another party to the MOU. IN WITNESS WHEREOF, the parties have caused this Memorandum of Understanding to be duly executed as of the date and year first above written. EDINA HOUS AND REDEVELOPMENT AUTHORITY James Hovland, Its Chair 4/07gai , Its Secretary JaMC Pifvc,e, 213528v2 4 DEVELOPER: FRAUENSHUH, INC. dba FRAUENSHUH COMMERCIAL REAL ESTATE BY: Its: c---...- UNITED PROPERTIES DEVELOPMENT LLC slier /4/gmedet btaa BY:James Alexander Hall (Jan 29, 2021 09:57 CST) Its: SVP 213528v2 5 4•O • • 176;174:;.4;1'iL.... ;I I F r►• I ,s • 11.4.citi" ,;•., F.:71R r l''•' , s• ',.- .. v Ill• • •k '' •• • '.1- frIll VI - ,... {ii r • • 11 ristdirt t •,F 1. r• - / 4: • 1Y, , aililidillialL 7.." ..... t•Trair.-.. • ,,, k .rfl• kik 44 , I: r V re • 4 IN •• I-1 • -' fi..t iv.:, 777 (A 1/Mignitqa. 1 c A,. A, G .---. f:. .1v"I'vk rt.;3,.• - ',it ,'' . , 7, , , Atte, 6 ,,i,•1 -. . ••• •• v.4%, r• •••!•vAv L1*'.. .412::::111" /.. 044,0 It I IP 1, t 1 Alp. A ,....• I I ter r, el, WAY, ' •A•Ri.11,‘, Illt ifilleOvittit i r, # ,1 ..,.,,.., , ,,. .,. . ... . . ' ..1..' . i ... • -I* • t 401,, law \.4 1(1111 . 011 EXHIBIT A DEPICTION OF PROPERTY PID: 2811721310014 PID: 2811721310015 PID: 2811721310016 213528v2 6