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HomeMy WebLinkAbout2015-05-19 WSAGENDA • CLOSED SESSION AND CITY COUNCIL WORK SESSION CITY OF EDINA, MINNESOTA COMMUNITY ROOM TUESDAY, MAY 19, 2015 5:00 P.M. • CALL TO ORDER II. ROLL CALL III. CLOSE SESSION A. CONSIDER POSSIBLE REAL ESTATE PURCHASE IV. RECONVENE IN OPEN WORK SESSION V. GRANDVIEW DEVELOPMENT ALTERNATIVES VI. ADJOURNMENT The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large -print documents or something else, please call 952- 927 -8861 72 hours in advance of the meeting. II SCHEDULE OF UPCOMING MEETINGS /DATES /EVENTS II Tues May 19 Closed Session — Possible Real Estate Acquisition Weber Woods Update 5:00 P.M. COMMUNITY ROOM Tues May 19 Work Session — Grandview Development Alternatives 5:30 P.M. COMMUNITY ROOM Tues May 19 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Mon May 25 MEMORIAL DAY HOLIDAY OBSERVED — City Hall Closed Tues June 2 Work Session — Parking & Future of City Owned Properties 50th & France 5:00 P.M. COMMUNITY ROOM Affordable Housing 6:15 P.M. COMMUNITY ROOM Tues June 2 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues June 16 Work Session —joint Meeting with Edina Transportation Commission 5:00 P.M. COMMUNITY ROOM Joint Meeting with Bike Edina 6:00 P.M. COMMUNITY ROOM Tues June 16 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Fri July 3 INDEPENDENCE DAY HOLIDAY OBSERVED — City Hall Closed Sat July 4 INDEPENDENCE DAY PARADE Tues July 7 Work Session — Sidewalk & Street Maintenance 5:00 P.M. COMMUNITY ROOM Utility Rate Study SAS P.M. COMMUNITY ROOM White Oaks Improvement Association 6:30 P.M. COMMUNITY ROOM Tues July 7 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues July 21 Work Session — Business Meeting /201 -2017 Proposed Budget 5:30 P.M. COMMUNITY ROOM Tues July 21 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Aug 4 Night To Unite Wed Aug 5 Work Session COMMUNITY ROOM Wed Aug 5 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Aug 18 Promenade Phase 5 5:30 P.M. COMMUNITY ROOM Tues Aug 18 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS e 11 ILI tip m"u I Former Public Works Site • The Opportunity • The Background • Exploring The Need • Discovering the Potential • Selecting the Direction • Next Steps FRAUENSHUH May 19t ", 15 Commercial Real Estate Group Former Public Works Site -3. tires Tax -free since 1963 'Vacant since 2010 Ai tit a M . .... �y f• r ,Ji;}i 1. `,► ♦•.r (``, y� A Y . R ia. The Opportunity t ��1 IMF Ift_'IK9,WXI, Located in mixed -use commercial district Centrally located in northern half of Edina Adjacent to railroad right -of -way Easy access to Highway 100 `4 In comparison, this site is equivalent to nearly one block of 50th & France. May 191h,lli�5 Former Public Works Site The Opportunity Jc s ce 1963 2010 Former Public Works Site The Background 1957 • Crossroads of commerce • Retail, hotel, & restaurant successful along busy roadways • Strong industrial businesses along railroad tracks • Fields replaced by single - family neighborhoods FRAUENSHUH _\ �= Commercial Real Estate Group • j r. it it r - l r* } r R .s+ it >�AV-. _ F x . Or { .spy �` . i• � � y :, _ � a � ay 19t " ,8 _015 of g µ .. — t 1 0 } I [ • i The Background 1957 • Crossroads of commerce • Retail, hotel, & restaurant successful along busy roadways • Strong industrial businesses along railroad tracks • Fields replaced by single - family neighborhoods FRAUENSHUH _\ �= Commercial Real Estate Group • L"'04 1H- ►: i► i' `' Y,. -Ito- ,mss . to 1. .A s Former Public Works Site The Background 4:— N$ i VjW] • Highway 100 expanded • Retail, hotel, & restaurant remain active along busy roadways • Industrial businesses remain viable • New office buildings • Single- family neighborhoods built out. FRAUENSHUH Commercial Real Estate Group s A AL . to 1. .A s Former Public Works Site The Background 4:— N$ i VjW] • Highway 100 expanded • Retail, hotel, & restaurant remain active along busy roadways • Industrial businesses remain viable • New office buildings • Single- family neighborhoods built out. FRAUENSHUH Commercial Real Estate Group Former Public Works Site The Background v . ® NIP 2003 `,,. r •+vim . r Neighborhood center a with regional access 1. ° • Hotels replaced by • _.., ;- - apartments Retail & restaurant successful I Mw Industry fading, replaced by multi - family • Single- family .,1. � neighborhoods built out r FRAUENSHUH May 19 ',. 15. , .' * . . , Commercial Real Estate Group GRANDVIEWDISTRICT HISTORICAL TIMELINE City purchases property for new Public Works facility, 7450 Metro Blvd. City prepares to sell old property to help pay for new facility; this plan is later abandoned Comprehensive Plan identifies Grandview District as likely "area of change` I* CITY ACTIONS ON SITE COMMUNITY ENGAEMENT I. CITY ACTIONS Public Works facility vacated City convenes original Community Public Works Advisory Team partnership with building; soil Large Community Frauenshuh to Advisory Team Seven convenes to Guiding prepare guiding Principles plans for the entire District 4W Development Framework May 19th, 2015 9 Former Public Works Site The Background Demolition of City begins Public Works partnership with building; soil Frauenshuh to clean -up begins collaboratively plan the public/private re-use of the site City Council unanimously approves Grandview Development Framework Small Community Advisory Team convenes to plan for re -use of Public Works site and related topics IV • Facility Assessment • Resident Survey Drafts of Request for Interest (RFI) City seeks development partner through RFI process e FRAUENSHUH /' commercial Real Estate Group May Former Public Works Site The Background PLANNING FOR CHANGE It: t i 11 )up Former Public Works Site The Background * SEVEN 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. 2,) 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. 3,) Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure and taking advantage of the natural topography of the area. 4.) Design for the present and 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. 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. 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. 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. May 19th, 2015 ''� x FRAUENSHUH 11 � Commercial Real Estate Group Former Public Works Site The Background CrandView District Development Framework Edina, Minnesota December 7, 2011 Revised January 17, 2012 Revised January 25, 2012 • ' Revised January 31, 2012 ' + • 4 , Revised March 27, 2012 Revised April 5, 2012 2010 -2012 FRAUENSHUH Ma 19th 15 ���� commercial Real Estate croup Former Public Works Site The Background City Council Unanimously Approved Development Framework crafted by 2010 -12 Community Advisory Teams apr -d 10 11 The 2 -year long community -led study ,.:._ ... —„•" ` " : �.r. '" envisioned significant redevelopment on *0 r , F "�`R The City property was envisioned to include a combination of commercial and residential uses and possibly a dedicated Metro Transit park and ride facility.A new east -west roadway was also envisioned. the under - utilized parcels throughout the Grandview District. -.•� ; " °w `- Grounded in 7 Guiding Principles, the Development Framework intends to shape a vibrant neighborhood center with <-- _- '•°' a mixture of residential, commercial and i civic uses.The Framework included five - ` ` • < areas of focus: i& • Land Use . oo • Public Realm • Transportation • Sustainability • Implementation fob QL M T The School Bus Garage was envisioned A new east -west pedestrian connection was Arcadia Street is envisioned to be to include new commercial, residential envisioned to provide a safe and desirable pedestrian- oriented with buildings that or professional uses that complement crossing for pedestrians and bicyclists of all engage the street. 13he adjacent properties. ages. Q) 4-j 0 — Ln LA v 0 E 0 Li- 0 v V m La LLI z z z 4 mi z LAA CD LU > C01 W = 0 M LAJ LL -1 > cr- CD C) CD J C) rW La cn X c c a 0 E 0 N E O :3 z a. Ln C On :3 Q Ln Z I 79 75 slaa:)uo:) moijeN X cx (U 0 t) CID :3 0 0 E � U.) E E C 0 0 0 U") rn u c > cn m 0 C C" J N — 'n .75 rj 0 7 C (n CD 0 0 cm CD Z I 79 75 W x a. "D o- O. 0 Ln 0 U") r E c E 0 0 c C) .2 cn — ro — 'n .75 rj 0 0 M E E Ln m 0 ci c cm CD > CL Ln u In 0 Ln LU x 0 z Lli Q) ui 0 cl) rz c (1) C) z fa OL 0 E E cl ui 4) H 0 -M CL 76 > a) 2 CL (v a. c r Z ci m Ln S; Q- E Z I 79 75 Former Public Works Site CommunitEngagement Process • December 4th Exploration Session open to general public (100+ participants) • Small Group Sessions — Offered to all — 120 community groups contacted — Youth, sports, education, neighborhoods, civic, business, commissions • January 15th Exploration Session at Edina High School (40+ participants) • Online suggestions • Roving suggestion box Exploring the Need FRAUENSHUH May 19th, 2015 15 commercial Real Estate croup Former Public Works Site Hundreds of Comments & Suggestions ce�`teC r�'mur�ty revJ rpose ce�`teC, s er\Or Mu \\ /pU rem aC C rem Exploring the Need Sell it to a developer and put it back on the tax roll. `rc \ud�rg \�y cer�e ►s �ac� \qty «�- ���,�oday ► �. (Nes CO r rtes el ears, c \ear ce � e ca apt 5 `I more r ► S a \e eth th�r$r O� e y- 0 0 Edina eats cake in 4 s er• °eS s Ce? N ce? th :4 wry d �\ \,� the eel spa New Art Center °beb re t �t SO abo Station on light rail line going to Senior housing downtown Minneapolis and restaurant (� FRAUENSHUH May 19th, 15 Commercial Real Estate Group 4 6 • Former Public Works Site Exploring the Need Recurring Themes Expressed • Strong and diverse opinions about the site • Recognition that some City and School District facilities are outdated — Dissatisfaction with existing Edina Community Center • Recognition that Grandview functions as a neighborhood commercial center with a mixture of uses • Concerns with the cost of new public facilities and impact to tax payers • Preference to coordinate improvements at City owned property and adjacent School District property • Importance of community gathering space welcoming to all ages • Transportation improvements throughout Grandview — Convenient public parking — Pedestrian and bicyclists, as well as vehicles May 19th, 2015 17 FRAUENSHUH v Commercial Real Estate Group Former Public Works Site Exploring the Need Preliminary Community Desires regarding Land Use • Mixture of significant public and private uses • New Community Recreation Center • New Community Arts & Culture Center • New Community Performing Arts Center • New Multi- purpose Community Space — All ages — Indoor and outdoor spaces • Improved parks and open space • More restaurants in Grandview • Housing, with range of affordability e PRAUENSHUH Ma 19th, 18 ^� Commercial Real Estate Group y 1 15 0 0 Former Public Works Site Four Popular Themes for Civic Space: Exploring the Need Multi Generation Community Center Fitness /Wellness Center 10,000 to 20,000 square feet on I or 2 levels. Typical Size & Flexible space that can be used for a variety of community needs as Program Elements needed, gallery space, history exhibit, 10 -20 person meeting rooms, multi- purpose room for 100 -200 people, all -ages programming for fitness, education, teens, & seniors, cafe. Competitive (Low - similar services scattered at multiple sites in Edina Landscape Pa imi), Demand .. - predictable usage with higher demands for special events Con"o U( ilo(l Costs Low / Modv?c',:t. M (,derat r - Some existing staff can be retained with some new staff Operating Costs WA. Potential Long -term debt, sale of public land, philanthropic donations, user fees, I9 Revenue Sources rental fees; retail sales JI 1 20,000 to 60,000 square feet on I or 2 levels. Typical Size & Indoor multi- purpose court, cardio equipment, strength training, weight Program Elements room, multiple rooms for fitness classes, indoor walking loop, lap pool, locker rooms, Competitive High - Six existing full - service fitness centers within 5- miles.An Landscape additional 10 smaller facilities also within S- miles. Parking Demand High - dramatically high peaks in the early evening and weekends Construction Costs Moclarate / High Operating Costs High - New staff and enterprise budget will be needed Potential Long -term debt, sale of public land, some philanthropic support possible, Revenue Sources monthly /daily user fees, rental fees Four Popular Themes for Civic Space: Arts & Culture Center • Former Public Works Site Exploring the Need Performing Arts, Culture & History Center 15.000 to 30.000 square feet on I or 2 levels. Typical Size & Spaces for visual arts education, classrooms. pottery, artist studios. Program Elements history exhibit, gallery space, poetry readings and small group lectures. Program Elements artists lockers, teen hangout, multipurpose/flexible community meeting ;space, community oven, cafe, gift shop Competitive Low — Four similar facilities located within 14 miles are sponsored by Landscape communities with little competition from the private market. Parking Demand — predictable usage with increases for special events and Ispecial Landscape programming IConstruction Costs!Low I Mod<,uate Operating Costs Low - Existing staff and existing enterprise budget can be retained; any X43'§ / High — predictable usage with higher demands for special increases in staffing to be determined performances Construction Costs Potential Long -term debt, sale of public land, high potential for philanthropic ;Revenue Sources donations, registration fees, rental fees, retail sales • Former Public Works Site Exploring the Need Performing Arts, Culture & History Center 20,000 to 35.000 square feet. Spaces for visual arts education, classrooms, pottery, artist studios, Typical Size & history exhibit, history archives /library, gallery space, poetry readings Program Elements and small group lectures, artists lockers, teen hangout, 200 -400 seat auditorium, black box/multipurpose /flexible community meeting space, community oven, cafe, gift shop Low — Four similar facilities located within 14 miles are sponsored by Competitive communities with little competition from the private market. Nearby Landscape auditoriums are 600 -800 seats, with little competition for a smaller fixed -seat hall. Parking Demand X43'§ / High — predictable usage with higher demands for special performances Construction Costs . - / High Operating Costs Low / - Existing staff and existing enterprise budget can be retained with some staff increases likely Potenital Long -term debt, sale of public land, high potential for philanthropic Revenue Sources donations, registration fees, rental fees; retail sales Former Public Works Site Exploring the Need Community Exploration Session [100 participants] Edina Student Exploration Session [42 participants] December 41h, 2014 January 151h, 201t) Community Exploration Session [100 participants] December 4th, 2014 Public Space MOST PREFERRED Former Public Works Site Exploring the Need Edina Student Exploration Session [42 participants] January 15th, 2015 Public Space MOST PREFERRED ! "�7 � i few �... k.; PW j� ft ,w Former Public Works Site Exploring the Need Community Exploration Session [100 participants] Edina Student Exploration Session [42 participants] December 4th, 2014 January 15th, 2015 Ow Ao L ' 1 Resident suggestions were considered alongside input from the real estate community. Supported Land Uses • Multi - family housing • Hotel • Office • Medical office • Retail • Restaurant plan var�ab�es vic Site South, central, c� • . Visibility r- C' Former Public Works Site Discovering the Potential Goa)is impr °vements ct ortation Transp eats Connectivity Cher i,provem Catalyst for fur Supported Civic Uses • Community recreation center • Arts & culture center • Performing arts • Community gathering space • Outdoor public space • Park and ride • Future transit connection Acce t &density He1gh;4:, e FRAUENSHUH l Commercial Real Estate Group May 19t ", 2015 25 More than 100 people participated in the March 11th Discovery Session. Many concerns and suggestions were shared with the design team. May 19th,lb15 Former Public Works Site Discovering the Potential CJ x FRAUENSHUH 6 Commercial Real Estate Group Former Public Works Site Outdoor Space and Walkability is Key Discovering the Potential Southern Civic Plaza Corner of Eden and Arcadia facing northwest with art garden and civic building. IMay 191h, 2015 27 The Site can connect adjacent spaces. I "A Former Public Works Site Discovering the Potential Outdoor Space and Walkability is Key I Northern Civic Plaza - Woonerf facing northwest with entry gateway and north green wall with public art. May 191h, 201C V, Former Public Works Site Discovering the Potential # Outdoor Space and Walkability is Key Former Public Works Site Discovering the Potential North woonerf - facing southeast with performance area and projected imagery on trellis, with office in background May 191h415 30 Commercial Real Estate Group Adghk AM, Former Public Works Site Discovering the Potential Multi- Generational Community Space is Preferred The preliminary programming for a new civic facility envision as a 21 st century community Multi- center with strong connections to arts and generational culture. Visual Programming Three options have been prepared to illustrate a N 4rts variety of desirable outcomes. Each option shares the goal of providing Edina with a state -of- the -art community facility that serves a need not filled in the private marketplace. Each option is also flexible to meet the programming needs of today and tomorrow. In designing a new facility, it is not possible to satisfy every need simultaneously. These options, however, are responsive to requests to create a community gathering space that is accessible and welcoming to all ages. Performing Arts �1 Ed ]*Ilia Center for Axts all( Comimulity FRAUENSHUH May 19th, 2015 31 =, S Commercial Real Estate Group Former Public Works Discovering Multi- Generational Community Space is Preferred Education, training production Visual media (painting, pottery, glass, metals) Public galleries & event space Same as Option A, plus History display /exhibit Multi- generational flexible spaces (large, medium and small rooms) Oversized lobby for community events Theatre and full stage with 350 fixed seats • Music, dance • Live theater, film • Lectures, meetings Back of house areas / • • 23,680 Sq. Ft. 60,007 Sq. Ft. Approx. Parking 1 95 stalls 240 stalls Approx. Constr. Cost* 1 $9 to $13 million $24 to $33 million • - ' - - User fees; Long -term debt; Sale /lease of land; Cost estimate for building only, exclusive of outdoor civic plaza and parking structure May 19t ",015 • Potential Same as Option B, except 350 fixed seat theater replaced with: Largest community room designed as flexible, multi - purpose space • Up to 300 movable seats • Full variety of performances and events • Supported by lobby & back -of -house support 56,080 Sq. Ft. 225 stalls $22 to $31 million Philanthropic support _ l I \i 1V Cumnm , al Real Eswte croup 0 Discovering the Potential Multi- Generational Community Space is Preferred Classroom May 19t,2015 33 1y1/ Commercial Rea[ Estate Group Former Public Works Site Discovering the Potential Clarification from City Council On April 7th, 2015, the City Council members provided additional direction and clarification to the design team. • Civic use must anchor the site with significant indoor & outdoor presence and prominent entrances • Add option with Civic Use on north side; adjacent to outdoor plaza • Refine option with high rise on south side • Some of the new housing should be affordably - priced • Preferred civic uses include: arts & culture, performing arts and multi - generational, multi - purpose community space • Clarify pedestrian and vehicular improvements leading to /from the site • Provide cost summary and economic analysis © FRAUENSHUH May 19th, 015 4 Commercial Real Estate croup Former Public Works Site Discovering the Potential Four Potential Scenarios After pursuing several different concepts, four scenarios are proposed for discussion. Each scenario includes a combination of public and elements in an effort to provide new and improved community services while enhancing the tax base. Each scenario is described on the following slides. May 19th, 2015 private e �' FRAUENSHUH �. 3 5 i Commercial Real Estate Group Former Public Works Site Discovering the Potential Potential Scenarios presented at April 22nd Open House More than 100 people attended the event to discuss the concepts with the design team. Boards were displayed around the room to illustrate concepts. May 19th,Z01s PRAUENSHUH 6 Commercial heal Estate Group #1 Central Civic With North Residential and South Office May 191h,2015 37 f TV: fir .� j 41 Former Public Works Site Discovering the Potential New east -west street (future Grandview Crossing) Proposed residential tower 4.- , Al Future entrance to transit platform 4 e tz New link to Jerry's Ramp ANN New 600 -800 stall public parking garage e Centr8l Givic 'h' May 19t',,2.,015 Residential & Office Two new outdoor civic plazas w, New civic building (multi - purpose) New sidewalks and on- street parking LI 11 Proposed medical office FRAULINSlll:11 Commercial Real Es:atc Croup t E qF 4 Former Public Works Site Discovering the Potential Y a MQ__ u, M�. c a 7� a c K e 1 Central Civ, kAvith Residential & Office 39 Program Elements: • Residential tower: 140 units • Office: 40,000 sq. ft. • Civic: 24,000 sq. ft. • Restaurant and retail: 8,000 sq. ft. • Park /Ride: 100 spaces • Total targeted site parking: 654 • Public Land: 78% Site /District Infrastructure Private Development Costs Public Development Costs Total Est. Development Costs Economic Impact (local) $4.5M -$8.0M $52.0 M - $60.5 M $11.0M- $15.0M $67.5 M - $83.5 M $10.0 million 40 #2 Central Civic with North Residential and South Residential .Ago* May 19th, 5 40 11 • 9 r�. x' -40 . ' . #2CentratCivicmrith th t,„ e� May Residential Only Former Public Works Site Discovering the Potential Program Elements: • Residential (two separate buildings): 290 units • Civic: 60,000 sq. ft. • Restaurant and retail: 8,000 sq. ft. • Park /Ride: 100 spaces • Total targeted site parking: 748 • Public Land: 82% Site /District Infrastructure Private Development Costs Public Development Costs Total Est. Development Costs 41 Economic Impact (local) $4.5M -$8.0 M $62.0 M - $69.5 M $27.5 M - $38 M $94M- $115.5M $11.8 million Former Public Works Site Discovering the Potential ha #3 North Civic with South Residential May 191h, 5 2 qi� 46 0 a ri Former Public Works Site Discovering the Potential Program Elements: • Residential: 170 units • civic: 601000 sq. ft. • Restaurant and retail: 8,000 sq. ft. • Park /Ride: 100 spaces • Total targeted site parking: 643 • Public Land: 76% Site /District Infrastructure Private Development Costs Public Development Costs Total Est. Development Costs 43 Economic Impact (local) $4.5M -$8.0M $40.5 M - $47.0 M $27.5 M - $38.0 M $72.5 M - $93 M $8.3 million �-" — Former Public Works Site -- - - - � Discovering the Potential May 19t ",4�. 5 . #4 North Civic with Medical Office Program Elements: • Civic: 60,000 sq. ft. • Medical Office: 60,000 sq. ft. • Restaurant and retail: 8,000 sq. ft. • Park /Ride: 100 spaces • Total targeted site parking: 695 Public • :.'. reliminaryCosts - l Site /District Infrastructure Private Development Costs Public Development Costs Total Est. Development Costs 44 Economic Impact (local) • Former Public Works Site Discovering the Potential 1) New Public Infrastructure 2) New Civic Building(s) Architecture Define the progra 3 & 711 nal Construction Move Engineering ricing in! 3) New Private Building(s) May 19th, 2015 45 now -� �� FRAUENSHUH 4, Commercial Real Estate Group Former Public Works Site Discovering the Potential External Funding Sources could be available Local Construction of new civic facility & civic plaza Philanthropy Met. Council — TBRA Met. Council — LCA Met. Council — LCA -TO D Metro Transit TIF — Grandview 2 TI — Southdale 2 May 19t ",�15 Remediation and site preparation to re- activate tax base Public plaza for infill development project that supports transit - oriented development Same as above Construction of dedicated park -n -ride facility Construction of parking garage and street improvements Affordably - priced housing units • flexible TBD May 1st & $100 to $300k Nov 1st May 1st $200 to $600 k June 1st $200 to $600 k Varies $2 — 4 million Spring $5 — 9 million 2016 Flexible $1— 2 million • Former Public Works Site Selecting the Direction There are many dimensions to consider in selecting the direction for this site. 1) Land Use and Site Planning 2) New Civic Facilities 3) Economic Impact to the City 4) Transportation Improvements 5) Structure of the Business Agreement May 191h, 2015 47 FRAUENSHUH Commercial Real Estate Group Former Public Works Site Selecting the Direction 1) Land Uses &Site Planning • How many land uses are preferred on the site? • Is the proportion of public and private elements acceptable? • What is the preferred scale of height and density? • To what degree should affordable- housing be considered? • What style of architecture should be pursued? May 191h,11 5 I.RAUENSHUH Commercial Real Estate Group .. eJ, Former Public Works Site Selecting the Direction Ik , j'iLand Uses & Site Plannin All Scenario Sc+ Public #1 Site elements 1 4 4 3 3 2 -- Total Building 105,000 1821000 283,000 272,000 128,000 314,000 Area % Public Land 100% 78% 82% 76% 86% 0% -- FAR* 0.73 1.27 1.97 1.89 0.89 2.18 1.5 Residential 0 140 240 170 0 310 -- Units Density NA 42 73 52 NA 94 30 Height TBD 10 -12 10 -12 5 -7 3 10 -12 4 -6 FRAUENSHUH May 19th, 2015 49 ComemW Real Estate Group m Former Public Works Site Selecting the Direction 2) New Civic Facilities • What is the preferred function and size of the civic building? • Should the building be constructed in phases? • Are "flexible" spaces preferred over spaces dedicated to a single use & purpose (e.g. fixed seat theater)? • What types of partnerships should be explored regarding use, programming and operations? • What level of non -City financial support is needed to give the "go- ahead "? • What process should be used to refine the use and design? • How can philanthropic support best be obtained? FKAUENSHUH May 19th1 15 Q Commercial Real Estate Group 0 W r- 0 V) 4� Q O a--J U �, U r _Q) E L- 0 L.L.. c/1 �U LL ,U U I W] O O \ •— v � W O 0) m M m m l0 00 v O W w c Q v 4-j v �c o 0 o a � •o O U v o m m m 000 -C:3 o z Qj -1 v •— v v z -Q v — 00 m al 00 v Ln Ln N m m r-_ o Z3 a O U N ru O U D O o m o a L Qj Qj v 0- v v a D -� Ln N N u O m D Ll aA a� aA Q o �— co a- v Ln Qj m u N u I-- z O N Ln v _0 v ° Gi ci v z z z z J Former Public Works Site Selecting the Direction 3) Economic Impact to the City • What is the short -term &long -term economic impact? • Does one scenario have more benefit than the others? • Which infrastructure improvements will be paid for by the City? • Which improvements can be paid for by the developer? • What are the long term operational and maintenance costs? • Is this a good time to finance a new public facility? • What is the impact of this project to the City's bond rating? • What is the impact of this project to Edina taxpayers? ® FRAUENSHUH May 19th, JJ15 2 Commercial Real Estate Group O •4-J t/1 � L- 0 V � D V L � E L O LL V O a-J V ro Q 1 O c O W M a Qo a x o O O o z v /} to m r-I a►j t/} tn- to O a Wcr v o 4-1 � U E �Q.) v G0 �.o t\ m Lr) ,n N m 1O 4-f)- c�i � t n- tn- o ° +� � U a v m 1O v •� a a m r14, 1D 'n 'n v ` v � to m to �i tn- v a a 4- v v Qj m m c» 00 Ui v n � Lri m a to to o; c� a 4, a a v M V) v a v � m v - a m O) -p a v m -C3 o t to QJ O a O L- Z � � U _U s v o u E U UO N N > a Qu E v a •° ca a) — X o V to N U O v > v u E v Cl- a- 0- _ z i-- 3) Economic Impact to the City $12 $10 $8 $6 $4 $2 $0 May 19t",46 15 Former Public Works Site Selecting the Direction All Public Scenario #1 Scenario #2 Scenario #3 Scenario #4 All Private FRAUENSHUH 4 Commercial Real Estate Group Former Public Works Site Selecting the Direction PRELIMINARY, FOR DISCUSSION PURPOSES ONLY. FIGURES SUBJECT TO CHANGE BASED ON PROJECT DESIGN, SITE DUE DILIGENCE, MARKET AND CIVIC USES The data below is used for discussion purposes only. Figures are not to be considered a proposal or a representation of future actual cost, income and expenses until full feasibility study and design of any given scenario is complete Site plan and program design, site due diligence and financial and market analysis are required to complete feasibility evaluation of all development assumptions. Estimates subject to modification based on further concept refinement r. 4 ' tit w . I 55 Total Property Economic Impact $9,974,606 Required Project Contribution to Off -set GAP ($11,089,229) NET GAIN /(GAP) ($1,114,622) Public Development Cost $19,3SS,000 Additional Contribution $1,114,622 TOTAL PUBLIC PROJECT COST $20,469,622 Magnitude of Order Estimates only based on market dev, cost references Assumes no extraordinary site or soil prep or environmental remediation costs Assumes park -ride of 100 + /- spaces programmed or shared with civic uses Pre- design level of information on infrastructure and engineering requirements l,irget Estimates include land, design, hard/soft costs, misc. const. and dev. fees i rmtingencies to be further defined Pricing and rates to be fitrther defined with market and civic use study Former Public Works Site Selecting the Direction PRELIMINARY -FOR DISCUSSION PURPOSES ONLY, FIGURES SUBJECT TO CHANGE BASEDON PROJECT DESIGN, SITE DUE DILIGENCE, 41ARKET AND CIVIC USE':: The data below is used for discussion purposes only Figures are not to be considered a proposal or a representation of future actual cost. Income and expenses urdl full feasibility study and design of any given scenario is complete Site plan and program design. site due diligence and financial and market analysis are requlmd to complete feasibility evaluation of all development assumptions Estimates subject to modification based on further concept refinement Scenario ' S11.845.414 Required Project Contribution to Off -set GAP Target ' 5120,905 100 r S38.975,000 � 60,000 • S 1501S 6,000,000 • Additional Contribution (S120,90s) Stnuchuecl P,irking 1 1)40 land Pricing Acres SF 1 Units Unit Price - L Unit Price - H Total Price - low Total Price - High r i i Milli - ; s. r.' Residential - Tower 0 2a 140 $ 1? (01 S 15 000 S 1,680,000 S 2,100,000 Residential Mid 0.92 100 S 10000 S 11()(.l) S 1,000,000 S 1,200,000 Civic /Civic Plaza 064 28'") S - S - S Paiking woonell 0.69 :oCX)0 I TOTALS 1 3.301 143,897 S 2,680,(00 1 S 3.300.000 Silr Prr ) /Ltc- A 301 143,897 S I S S S land Proceeds Net of Demo and Site Piep S 68000", S 5,30.1 00 Total Property Economic Impact S11.845.414 Required Project Contribution to Off -set GAP (511,724,510) NET GAIN /(GAP) 5120,905 Civic Shy II 60-Ak S 300 1 S 400 I S 18,00U.0U0 I S 24,000,000 100 Public Development Cost S38.975,000 Civic Finish 60,000 S 100 S 1501S 6,000,000 I S 9,000,000 Additional Contribution (S120,90s) Stnuchuecl P,irking 1 1)40 S 1500%) 5 .n ").000 I S 3.600.000 I S 4,800,0001 ?,K) TOTAL PUBLIC PROJECT COST S3 8.854.095 IUTAL PUtSUC INVLSiMLNI Is 27111100.000 s ifAm000 240 Total S 89,060,000 S 106860,000 648 Pat and Rick 1 i.o 15,0001S 20,000 S 1, 5M.000 S 2,000,000 100 East -West Street $ ?.500.000 S 5,000,000 Arcadia4clen Ave. Stt 1' O i_w 250,000 S 3W,OW S 50.000 Civil Plaza 1 �, ,o (kh) S SOOOt 250.000 S 50.000 Total S 4,5 4000 S 8,000,000 100 May 191h 1615 TOTAL EST. S 93,610,000 S 114,860,000 748 Magnitude of Order Estimates only based on market dcv. cost references Assumes no extraordinary site or sod prep or environmental remediation costs Assumes park ride of 100•/- spaces 1)1ex3rdninie f or shared with civic uses Pre - design level of information on infrastructure and engineering requirements Target Estimates inckucle laird, design, hard /soft costs, mist, contt. and dev. tees Contingencies to be further defined Pricing and rates to be further defined with market and civic use study Former Public Works Site Selecting the Direction PRELIMINARY - FOR DISCUSSION PURPOSESONLY. FIGURES SUBJECT TO CHANGE BASED ON PROJECT DESIGN, SITE DUE DILIGENCE, MARKET AND CIVIC USES The date below is used for discussion purposes only. Figures are not to be considered a proposal or a representation of future actual cost, income and expenses until full feasibility study and design of arty given scenario is complete Site plan and program design, site due diligence and financial and market analysis are required to complete feasibility evaluation of all development assumptions. Estimates subject to mocification based on further concept refinement. Scenano #3: Land Assembly - Target Estimate I lip. � M Land Pricing Acres SI /Units Unit PoicA- I I )nit Price Ii Total Price - law Total Mice - H' h ' Residential Tc»vel 1 0.001 1 S 11,0w I S 15,0001 S S �• •+ D., LI.. #;# I AA;,4 I I All t 7n I [ 1 i fvv I ( I e t l Magnitude of Order Estimates only based on market dev. cost references Assumes no extraordinary site or soil prep ar environmental rem ediation casts Assumes park -ride of 100 + /- spaces programmed or shared with civic uses Pre - design level of information on infrastructure and engineering recluirements Target Estimates include land, design, hard /soft costs, miss. const and dev. fees Contingencies to be further defined Pricinci and rates to be lurther defined with market and civic use studv 57 Former Public Works Site Selecting the Direction PRELIMINARY -FOR DISCUSSION PURPOSES ONLY, FIGURES SUBJECT TO CHANGE BASED ON PROJECT DESIGN, SITE DUE DILIGENCE, MARKET AND CIVIC USES The data below Is used for discussion purposes only. Figures are not to be considered a proposal or a representation of future actual cost. Income and expenses until full feasibility study and design of any given scenario is complete. Site plan and program design, site due diligence and financial and market analysts are required to complete feasibility evaluation of all development assumptions. Estimates subject to modificatlon based on further concept refinement. 1 i 53,851,398 Required Project Contribution to Off -set GAP t -n Fryn� NET GAIN /(GAP) $ 2,000,000 _ y ;. ♦ $ 2,500,000 , 150,000 t T S SW,(= ui X.ui i, 250,000 S !:1000i() $ 4,550,0001 $ 8,000,0001 1001 S 52,41Q000 I S 70,760,000 1 688 Total Property Economic Impact 53,851,398 Required Project Contribution to Off -set GAP Magnitude of Order Estimates only based on market dev. cost references Assumes no extraordinary site or soil prep or environmental iemediation costs Assumes park -ride of 100+/- spaces progiammed oi shaied with civic uses Pre - design level of inlormation on infraslructuieand engineering requirements Target Estimates include land, design, hard /soft costs, misc. const. and dev. fees Contingencies to be further defined 1 Pricing and rates to be further defined with market and civic use study ($1,941,293) NET GAIN /(GAP) $ 2,000,000 51,910,105 District Support Infrastructure Park and flick 100 $ 15,O(X) East-West Sheet Arcadia /Eden Ave. She 2 150,0(X! Civic Plaza 1 4. Total May 191h11615 ITOTAL EST. Magnitude of Order Estimates only based on market dev. cost references Assumes no extraordinary site or soil prep or environmental iemediation costs Assumes park -ride of 100+/- spaces progiammed oi shaied with civic uses Pre - design level of inlormation on infraslructuieand engineering requirements Target Estimates include land, design, hard /soft costs, misc. const. and dev. fees Contingencies to be further defined 1 Pricing and rates to be further defined with market and civic use study 20,000 $ 1,500,000 $ 2,000,000 100 $ 2,500,000 S 5,000,0= 150,000 $ 300,000 S SW,(= ui X.ui i, 250,000 S !:1000i() $ 4,550,0001 $ 8,000,0001 1001 S 52,41Q000 I S 70,760,000 1 688 Former Public Works Site Selecting the Direction PRELIMINARY - FOR DISCUSSION PURPOSES ONLY. FIGURES SUBJECT TO CHANGE BASED ON PROJECT DESIGN, SITE DUE DILIGENCE, MARKET ANDCIVIC USES The data below is used for discussion purposes only Figures are not to be considered a proposal or a representation of future actual cost, income and expenses until full feasibility study and design of any given scenario K complete. SMe plan and program design, site due diligence and financial and market analysis are required to complete feasibility evaluation of all development assumptions Estimates subject to modification based on further concept refinement District Support Infrastructure SO Required Project Contribution to Off -set GAP $0 NET GAIN /(GAP) $0 Palk .indVide Itm } 11,(Kx! S ev'(J(H) S 1 "a),( 0) S liR )(),(x )() I East Wrwt Stri -et S 2,WO,(0) S 5,000,(JOO Arcadia /fdeii Avv. Stie 160,000 S 300,()(x) S 500SM (ivir llkw.r 1 1• , ",Uiiki '.(xr(X)U i. ''W'O(X) S IAV(xlt) Total $ 4.5S0,00D S 8,0J(J,(x)() t()() Mav 1 C)th inl 5 ITOTAL EST. S 44,450,000 1 S 62700,000 1 520 Total Property Economic Impact SO Required Project Contribution to Off -set GAP $0 NET GAIN /(GAP) $0 Public Development Cost S 53,525,000 Additional Contribution S0 TOTAL PUBLIC PROJECT COST S 53,525,000 Assumes cost efficiencies on larger facility shell and finish components Magnitude of Order Estimates only based on market dev, cost references Assumes no extraordinary site or soil prep car environmental remediation costs Assumes park -ride of 100•/- spaces pwgrarnmed or shared with civic uses Pre - design level of information on infrastructure and engineering requirements Target Estimates include land, design, hard/soft costs, misc. const, and dev, fee,, Contingencies to be further defined Pricinq and rates to be further defined with market and civic use study Former Public Works Site Selecting the Direction PRELIMINARY - FOR DISCUSSION PURPOSES ONLY, FIGURES SUBJECT TO CHANGE BASED ON PROJECT DESIGN, SITE DUE DILIGENCE, MARKET AND CIVIC USES The data below Is used for discussion purposes only. Figures are not to be considered a proposal or a representation of future actual cost. Income and expenses until fuh feasibility study and design of any given scenario is complete. Ste plan and program design, site due diligence and financial and market analysts are required to complete feastbllly evaluation oral development assumptions. Estimates sAad to modification based on further concept refinement . District Support Infrastructure Park and Ride 5 1, East -West Street S S !, Arcadia /Eden Ave, Civic Plaza I Total I S S S Mav 1 qth qni ,; TOTAL EST. S 68,53Q500 S 76.644,000 513 19 ...u, -- 11 0 As ernes cost efficiencies on development components for all private use Magnitude of Order Estimates only based on market dev. cost references Assumes no extraordinary site or soil prep or environmental remediation costs Assumes park -ride of 1DO +/• spaces programmed or shared with civic uses Pre - design level of information on infrastructure and engineering requirements Target Estimates include land, design, hard /soft costs, mist, const and dev. fees Contingencies to be further defined Pricing and rates to be luriher defined with market and civic use study Former Public Works Site Selecting the Direction 4) Transportation Improvements • Is the new east -west street (woonerf) preferred? • To what degree should a future rail /transit connection be designed? • What additional improvements to the surrounding roadways should be included as part of this project? May 19th, 2015 61 FRAUENSHUH Commercial Real Estate Group Former Public Works Site Selecting the Direction 5) Structuring the Business Agreement • Should both "land -sale" and "land - lease" options be pursued? • Should joint -use and maintenance agreements be pursued, similar to other City -owned parking garages and parks? • Should phased construction with staggered delivery dates be pursued? © PRAUENSHUH May 19t ", 15 6 Commercial Real Estate Group 4 0 Former Public Works Site Next Steps As the direction for the site is selected, much additional work is necessary to define a successful project. • Refine site plan and pursue regulatory approvals — Prepare site mobility study — Find balance of building size and open space • Complete traffic study — Identify off -site improvements • Clarify scope &program of civic facility — Prepare cost recovery analysis — Create fund - raising strategies • Select developer of private element(s) • Negotiate redevelopment agreement, including — Land value — City &developer commitments — Maintenance &operating costs May 191h,2015 W, 'r FRAUENSHUH �I � {� Commercial Real Estate Group Former Public Works Site Next Steps After discussion of these issues, direction from City Council is needed. Additional materials will be generated so that a final decision can be made in summer 2015. May 19th *5 Thank you. © FRAUENSHUH 4 Commercial Real Estate Group