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Concept Plan Review for Creekview Apartments; Lindahl MEMO To: Honorable Mayor and City Council From: Jason Lindahl, AICP Date: March 14, 2016 Subject: Concept Plan Review for Creekview Apartments Proposed Action: As a concept review, this application does not require formal action. Rather, the applicant requests feedback on the proposals so they can work toward preparing a future, formal submittal. Any comments shall be for guidance only and shall not be considered binding upon the City regarding any future, formal application. Overview The applicant, KM2 Development, requests concept plan review of their proposal to redevelop the existing apartment building located at 434 Blake Road. The subject property is located one- quarter mile north of the future Blake Road LRT station, northeast of Minnehaha Creek and west of Cottagevillage Park. The applicant’s proposal is to raze the existing 3-story, 37-unit building and replace it with a new 5-story, 140-unit, market rate apartment building. The applicant believes the Blake Road corridor is prime for redevelopment based on its access to jobs, shopping and restaurants, recent improvements to Cottageville Park, its location adjacent to Minnehaha Creek, nearby pedestrian and bicycle amenities like the Cedar Lake Regional Trail and planned LRT and Blake Road improvements. This report summarizes the concept proposal, compares existing surrounding conditions, details various subdivision and zoning standards to consider and outlines a likely approval process for the application. Primary Issues to Consider • Planning & Zoning Commission Action • Concept Plan Summary • Existing Conditions • Subdivision Design • Land Use and Zoning Standards • Exterior Building Materials • Access and Parking • Pedestrian and Bicycle Access • Approval Process • Planned Unit Development • Affordability Supporting Documents • Comments from Ann Beuch with the Blake Road Corridor Collaborative • Concept Plan • Natural Resources Map • Applicant’s Narrative • Blake Road LRT Station Area Development Guide • SWLRT Housing Gaps Analysis ____________________________ Jason Lindahl, AICP, City Planner Planning Application 2017-03-CON Page 2 Primary Issues to Consider Planning & Zoning Commission Action. The Planning & Zoning Commission reviewed Planning Application 2017-03-CON during their regular February 28 meeting. Planner Lindahl summarized the concept proposal by comparing surrounding conditions, detailing various subdivision and zoning standards and outlining a likely approval process for the application. The applicant stated they were very optimistic about redevelopment in the Blake Corridor but still needed to work with the Watershed District to fully understand the floodplain and wetland impacts on the site and conduct a traffic study. The applicant stated rents would be approximately $1.85 per square foot. Ann Beuch of the Blake Road Corridor Collaborative presented her concerns about the project including preserving affordable housing, support for displaced residents and the lack of 3- or 4- bedroom units for families. As support for these concerns, Ms. Beuch cites the Blake Road LRT Station Area Development Guidelines. A copy of this document is attached for your reference. This document includes specific policies for redevelopment on the 43 Hoops, Cold Storage and Blake Road LRT station sites. In response, the Commission asked staff about affordable housing data for the Blake Road corridor. This information is detailed in the Affordability section below. After some discussion, the Planning & Zoning Commission agreed their priorities for this project were architectural design and building materials, natural resource protection and storm water management and pedestrian and bicycle facilities. Some Commissioners expressed support for Ms. Beuch’s concerns but also wanted to accommodate market driven redevelopment that is consistent with the goals and policies of the Comprehensive Plan (see below). Commissioner Newhouse suggested the applicant shrink the building’s footprint and increase its height to allow for greater setback from Minnehaha Creek and to accommodate some surface parking for guests and loading area for moving in and out. Concept Plan Summary. According to the applicant, they intend to redevelop the Creekview site with the same vision as the two projects they are currently working on in Edina (see attached narrative). Their concept is to construct a 5-story, 140-unit, market rate apartment building with a footprint that will cover most of the lot. According to the applicant, the site would have a 6 feet front yard setback, a 10 feet north side yard setback and be setback 2 feet from the 902 base flood elevation for Minnehaha Creek. This design covers the vast majority of the lot and produces a floor to area ratio (FAR) of 2.7. As proposed, the unit mix would include 10 studio, 105 one bedroom and 25 two-bedroom units. To improve the building’s interaction with the public realm along Blake Road, the applicant has proposed to include approximately 7 walk-up units with direct entry from the street. Existing Conditions. The existing apartment building was constructed in 1961. The 3-story, 37-unit building includes 35 one bedroom and 3 studio units. The building has a brick exterior with a gable roof. The site is approximately 20 percent green space and includes 37 surface parking stalls and no covered parking. The front yard setback ranges from 3.1 feet to 27 feet, and the north side yard setback is 25 feet. Planning Application 2017-03-CON Page 3 The subject property is surrounded by compatible uses on all sides including high-density residential, commercial and recreational uses. The surrounding apartment buildings tend to have minimal setbacks ranging from as little as 2 feet to as much as 35 feet and vary in height from 3 to 7 stories; however, most have surface parking lots that reduce both the density and floor to area ratio (FAR). Subdivision Design. A key component of this concept is consolidation of the existing drop- off access within the Blake Road right-of-way as part of the applicant’s developable parcel. Blake Road is currently under county jurisdiction. Therefore, the county would need to agree to transfer this property to the applicant. Once the applicant controls this access ROW, the City would need to vacate it and approve a subdivision to consolidate it with the subject property. Blake Road is scheduled for reconstruction in 2018, and vacation of this portion of the right-of- way is not expected to impact that project. Land Use and Zoning Standards. The subject property is guided HDR – High Density Residential, by the Future Land Use Map and zoned R-4, Medium High Residential. Comprehensive Plan policies that would align with this concept proposal include: • Rehabilitation should be encouraged in multi-family structures built at approximately the same time that lack many amenities found in more recently constructed, multi-family structures. • Take advantage of redevelopment opportunities to provide new housing choices for the community. • Continue to strive for a mix of housing that accommodates a balance of all housing needs. The proposed residential apartment building use is consistent with these designations, but the site design does not conform with many of the R-4 district development standards. As a result, the project will require approval of a Planned Unit Development (PUD). Lot & Building Standards for R-4 District Standard Required Proposed Status Front Setback 30 feet 6 feet Non-Conforming Side Setback (north) 30 feet 10 feet Non-Conforming Side Setback (south) Setback based on Watershed standards 2 feet above 902’ Elevation Unknown Rear Setback Maximum Height 45 feet 50+ feet Non-Conforming Minimum Lot Area 20,000 square feet 54,431 (1.25 Acres) Conforming Minimum Lot Width 150 feet 337 Feet Conforming Density 51/Acre (64 Units) 110/Acre (140 Units) Non-Conforming Building Coverage 30 percent 52 percent (gross) Non-Conforming Exterior Building Materials. The Zoning Ordinance requires exterior materials to be compatible with adjacent and neighboring structures and uses. In this case, the exterior materials of the existing building and most of the other apartment buildings along Blake Road is primarily brick. Most recently, the Project For Pride In Living apartment building located just east of the subject property will have a mixture of brick and concrete panels. In this case, the applicant is proposing a mix of exterior materials including 45 percent cement board, 35 percent Planning Application 2017-03-CON Page 4 glass, 15 percent brick and 5 percent metal. Access and Parking. The concept plan proposes the building would have two accesses from Blake Road. This design would add one additional access to the site. The proposed accesses would not align with other accesses on the east side of Blake Road; however, the plans to reconstruct Blake Road call for a center median that would prevent left turns into the site from north bound traffic and reduce potential turning conflicts. The two proposed accesses would provide entry into two levels of underground parking (one at grade and the other below grade). Floodplain standards may impact below grade parking. As currently designed, all parking would be internal to the building and the site would have no outdoor surface parking. The current design calls for 161 parking stalls including 9 tandem stalls. This design does not meet the off-street parking requirement for multifamily dwellings of at least two parking spaces for each dwelling unit. In these situations, the City typically requires the developer to conduct a parking study. Pedestrian and Bicycle Access. Pedestrian and bicycle access are crucial to meeting the City’s environment and non-motorized transportation goals. Currently there is a sidewalk along the west side of Blake Road that would connect the site to the City’s sidewalk and trail network, the Cedar Lake Regional Trail, and the planned Blake Road LRT station. When Blake Road is reconstructed in 2018, the existing sidewalk will be replaced with a 10-foot, multi-use trail. The applicant should plan to connect with the adjacent sidewalk and trail network as well as incorporate both short-term and long-term bicycle parking facilities. Approval Process. Based on the applicant’s concept plan, staff anticipates the following approval process: • Access approval from Hennepin County • Vacation of a portion of Blake Road • Subdivision to combine Blake Road right-of-way with the existing parcel • Rezoning to Planned Unit Development (PUD) • Site Plan • Approvals from the Minnehaha Creek Watershed District Planned Unit Development. The purpose of a planned unit development is to allow flexibility from traditional development standards in return for a higher quality development. Typically, the City looks for a developer to exceed other zoning standards, building code requirements or meet other goals of the Comprehensive Plan. A list of items to consider when evaluating the use of a planned unit development for this site could include, but is not limited to, the following: • Architectural design and building materials • Natural resource protection and storm water management • Pedestrian and bicycle facilities • Energy conservation and renewable energy • Open space and public art • Buffering and landscaping Planning Application 2017-03-CON Page 5 Affordability. As noted above, some Commissioners expressed support for concerns raised about how this project will impact affordable housing in the Blake Road corridor. According to the applicant, their current policy is to set aside 20 percent of a building’s units for the Housing Choice Vouchers program. This program allows low-income renters to lease any type of housing in the Metro service area from participating property owners. Eligible households pay 30% to 40% of their incomes for rent and Metro HRA pays the remainder, within established rent guidelines. This policy is currently in place at the subject property and the applicant has stated they intend to continue it at the redeveloped site. Based on the applicant’s policy, 7 units are set aside for the Voucher program, and this number would increase to 28 units in the new 140-unit building. It is also worth noting that the Project for Pride in Living project directly across Blake Road will add 51 units affordable to households earning 50 percent of the area median income or less (10 one bedroom, 28 two-bedroom and 13 three-bedroom units). The Planning & Zoning Commission requested affordability information for the Blake Road corridor. The most recent source for this information is the 2014 Southwest Light Rail Transit Housing Gaps Analysis prepared by Southwest LRT Community Works. A copy of the analysis for the Blake Road Station Area is attached for your reference. This report found there are an estimated 1,200 market rate apartment units that are “naturally occurring” affordable at or below 60 percent of the area median income. This report also estimated the potential for 1,200 new housing units near the Blake Road Station over the next 15 years. The table below breaks down these units by both time frame and affordability. Conclusion. Staff requests the City Council consider the concept plan detailed above and provide feedback to the applicant. 1 Jason Lindahl From:Meg Beekman Sent:Tuesday, February 28, 2017 4:04 PM To:Jason Lindahl; Kersten Elverum Subject:FW: [EXTERNAL] 434 Blake Road FYI Meg Beekman | Community Development Coordinator | City of Hopkins 1010 1st St S | Hopkins, MN 55343 | 952-548-6343 | 952-935-1384 Fax www.hopkinsmn.com Like the City on Facebook Download Hopkins mobile app Visit Think Hopkins From:Ann Beuch [mailto:ann.beuch2@gmail.com] Sent:Tuesday, February 28, 2017 4:01 PM To:Lisa Walker <Lisa.Walker@hopkinsschools.org>; DLisa Campbell <DLisa.Campbell@hopkinsschools.org>; Anne Marie Buck <abuck@HOPKINSmn.com>; Julia Ross <jross@HOPKINSmn.com>; Meg Beekman <mbeekman@HOPKINSmn.com>; Ann Davy <adavy@eminnetonka.com>; Vinodh Kutty <Vinodh.Kutty@hennepin.us>; Renae Clark <RClark@minnehahacreek.org>; Peg Keenan <director@icafoodshelf.org>; Christine Hart <chart@capsh.org>; Scott Flemming <sflemming@blakeschool.org>; Gretchen Nicholls <GNicholls@lisc.org>; Scott Searl <scott.searl@sothchurch.com>; Hildy Shank <hmshank@me.com>; Tom Schuster <TomSchuster@43hoops.com>; Tarrah Palm <tarrah@resourcewest.org> Subject:[EXTERNAL] 434 Blake Road Hi everyone - I just recently heard that a concept review for a proposed project at 434 Blake Road will take place as part of the Planning and Zoning Commission meeting this evening. Here is the agenda with more information:http://www.hopkinsmn.com/boards/zpc/pdf/agenda-packet.pdf The developers of this project propose to raze an existing 3-story, 37-unit apartment building (Creekview Apartments located at 434 Blake Road N) to build a 5-story, 140-unit market-rate apartment building in its place. With the project being in the neighborhood, I wanted to pass along the information to all of you as well as a few thoughts that came to mind when reading the documents for the meeting this evening. Would you have any additional thoughts/comments/feedback regarding this proposal and steps (if any) we might want to take as a group or individually? Over the past couple of years, we have had a number of opportunities to hear from neighbors and community members about what would be useful in future developments on Blake Road (such as the goals outlined in the Blake Road LRT Station Area Development Guidelines created in 2015). In such conversations with community members, there is often a strong desire to remain in the area and continue to participate in and benefit from the changes that are occurring in the neighborhood. With this in mind, there are a few questions that arise when reading through the documents available for the meeting this evening: 2 •Since this project is proposing to raze the existing building of 37 units, community members and families who currently live in the building will be displaced if the project is to move forward. Housing currently located at this site is naturally occurring affordable housing which is increasingly difficult to come by - what support can be provided to these residents who face displacement? •In many conversations with community members, it has often been said that while there are a number of apartments with one bedroom units, there is a real lack of apartments with three and four bedroom units. The narrative explains that this project proposes a building with 10 studio units, 105 one bedroom units, and 25 two bedroom units. How can this project provide new housing choices for the community and help accommodate a housing need that has been identified by community members for units with a greater number of bedrooms? •Another aspect of housing that is often mentioned in conversations with community members is affordability. The narrative describes wanting to create housing for workforce renters and notes that this project is intended to align with the projects the developer is currently working on in Edina. The projects in Edina are luxury apartments. How will this vision for workforce housing align with projects for luxury apartments yet maintain a level of affordability as the term workforce housing implies? Additionally, the narrative states that "the project will continue to allow up to 20% low-income vouchers." Housing Choice Vouchers could be a useful tool for community members to access market- rate housing, and at the same time, provide full rent to the property owners. Does there need to be a 20% voucher limit? Could this project aim to be accessible to all? Thank you for any advice, thoughts, or comments you might have! Ann -- Ann Beuch Coordinator Blake Road Corridor Collaborative Direct: 952-279-0287 12990 St. Davids Road Minnetonka, MN 55305 www.blakeroad.org www.facebook.com/blakeroad Jan. 19, 2017 Hopkins, MN HOPKINS Collage | a r c h i t e c t s RESIDENTIAL 140 UNITS 25 2 BEDROOMS 105 1 BEDROOMS 10 STUDIOS PARKING 152 STALLS (+9 TANDEM) SITE PLAN BLAKE ROAD NORTH MINN E H A H A C R E E K He nn e pin Cou n ty Na tu ra l R es o urc es Ma p Da te : 2/1 7/20 17 Co mm e nt s : This data (i) is fu rnished 'AS IS' wit h n o re prese nta tion as to completene ss or a ccuracy; (ii) is furnish ed wit h n o wa rran ty o f any kind; a nd (iii) is not suitab le f or leg al, e ng in ee rin g o r surveying pu rposes. He nnepin County sh all no t be lia ble for any d amag e, in jury or loss re sulting from this d at a.CO PYRIGHT © HENNEP IN COUNTY 20 17 1 inc h = 1 00 f ee t Le ge nd Bas e F lood E le vat ions (ft ) FEM A F loodpl ain s - 1 00 Ye ar A AE F L O O DP LA IN AH AO AE F L O O DW AY We t lan ds Pot ent ial W et la nd - HCW I Pro bable W et land - HC W I Pro bable W et land - NW I PID: 1 911 7 211 2 000 2 Add re s s: 4 3 4 B LAKE R D N , H OP KINS O wne r N am e: F CM FAM ILYLTD PAR TN ER SH IP Acr es: 1.25 ¯ 434 Blake Road Project Narrative Introduction: KM2 Development is excited to discuss our proposal for a new development at 434 Blake Road North. KM2 is looking to raze the current 37-unit building, and replace it with a new 140-unit market rate multi-family apartment building. KM2 is working with Collage Architects on the concept design. KM2 is an organization comprised of partners Mike Mikan the Chairman and CEO of Shot-Rock Capital, and Kurt Krumenauer the President of Midwest Apartment Brokers. KM2 Development is currently building a new luxury apartment project at the Southeast corner of 66th & York in Edina; this 187-unit development has been fully entitled and will break ground in March of 2017. KM2 is also working with the City of Edina on a massive redevelopment of the entire North side of 49 ½ Street & France Avenue. Project Description The Creekview project is aligned with the same vision we have for our Edina projects and will produce a long-term successful project in area that we feel is readied for new development. By offering the high quality project at Creekview, it will provide exceptional amenities, unmatched floor plans, and a great location not only for lifestyle renters, but also for those workforce renters who want to live close to work, bike paths and the new light rail, but may not be able to purchase a home. Workforce housing is commonly targeted at "essential workers" in a community i.e. police officers, firemen, teachers, nurses, medical personnel. REQUESTED ACTIONS While this is a Concept Plan review and no formal action is being requested at this time, as this project moves through the Entitlement Process, we anticipate the following actions will be required: -Comprehensive Plan Amendment -Rezoning to Planned Unit Development (PUD) -Site Plan Approval -Others TBD Unit Mix: The project is currently planned for 140-units. The unit mix will consist of 10-studio units, 105-one bedroom units, and 25-two bedroom units. We will also have approximately 7-units that will be direct-entry units off of Blake Road, this will create a great interaction to the street. The project will continue to allow up to 20% low-income vouchers. Exterior Materials: The finish of the building will consist of approx. 45% cement board, 35% glass, 15% brick, and 5% metal. Vehicle Access and Parking: There are two levels of underground parking. Both are accessed from Blake Road. The parking will consist of 161 total parking stalls, with access occurring directly from Blake Road and consists of one level of on-grade parking, and one level of underground parking. A total of 87 stalls would be on the lowest level of underground parking, and 74 stalls at the on-grade level, including 9- tandem parking stalls. Pedestrian access: Pedestrian access and font door are centrally located on Blake Road. Bicycle access would come from the backside of the on-grade parking garage, and be accessible from Blake Road. Setback Information: The building is setback 6’ from the east property line assuming the property line is straightened to remove the drop-off. Removing the drop-off is a requirement for the building location as proposed. The building is proposed at 2’ from the floodplain of the 902’ contour. The total Floor to Area Ratio equals 2.7% and lot coverage of 52% of total coverage, with a total lot density of 110 units per acre. Relationship to Minnehaha Creek Floodplain: The building is located approximately 2- 20’ from the 902’ contour (902’ is understood to be the floodplain). Zoning and Variances: The proposed development does not meet the requirement of the current zoning. Given the comprehensive nature and the scale of the development we think the best option would be to zone this under a PUD. Currently the site is zoned R-4, and has a front yard setback of 3.1 feet. HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 1 Overview Hopkins is a dynamic community of over 17,000 residents located just 13 minutes west of the Twin Cities. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large city with the security of a small town. The residents and the business community have an enormous sense of pride and sup- port for their City. Travel any street and you will see and feel the reflections of pride and vitality. Three of the Southwest LRT transit stations will be located in Hopkins, one of which is the Blake Road Station. Already a mixed-use, higher density district, the transit stop will offer greater regional access to jobs and ameni- ties. A partnership between the City of Hopkins, Hennepin County Community Works, the Minnehaha Creek Watershed District (MCWD) and the Met Council, is transforming Cottageville Park to increase the amount of green space along Blake Road, improve the water quality of the Creek, and make the creek more accessible and visible to the community. Phase one of this $3 million project will be completed in October of 2015. The new park will include new play equipment, trails, lighting, a permanent community garden with water source and tool shed, and extensive new landscaping. When the project is complete the park will be nearly three times larger. Sponsored by: Blake Road Corridor Collaborative City of Hopkins Hopkins BLAKE ROAD LRT STATION AREA Development Guidelines May 2015 HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 2 With the advent of the light-rail transit investment, the Blake Road Corridor Collaborative and the City of Hopkins partnered with Twin Cities LISC / Corridor Development Initiative to lead a series of community workshops to explore development options and scenarios for existing or proposed redevelopment sites that include public ownership near the Blake Road LRT station area. These development objectives are the result of the community workshops, and serve to inform the future development of the area surrounding the Blake Road LRT Station. Through the CDI process, three key sites that include some aspect of public ownership were identified for their redevelopment potential: A. The Joint Development site, south of the Blake Road LRT Station (proposed for a park-and-ride and possible joint development by Metro Transit) B. 43 Hoops Basketball Academy site and adjacent parcel to the north of the Blake Road LRT Station (43 Hoops site is owned by the Hennepin County Rail Authority) C. Cold Storage site (owned by the Minnehaha Creek Watershed District) All three sites will be integrated with Blake Road and its improvements in pedestrian, bike, and vehicle access. 0 200 400100 Feet Blake Road Potential Development Sites Freight Rail Platforms Roadways Sidewalks Tracks Trails Blake_Parcels A B1 C B2 HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 3 ASSETS The City of Hopkins offers a wonderful quality of life through: • Its spirit of community where people are treated with respect, and where the community participates in building culture, character and common bonds; • A thriving Mainstreet featuring an array of local shops, restaurants, the Hopkins Art Center, a movie theater, and residential components. • Support for business growth, and home of corporate campuses such as Cargill and SuperValu; • Outstanding schools and a community that offers and values diversity and cultural heritages; quality parks, housing and public services. • Hopkins is home to over 20 community education facilities, including public, charter, private and adult education schools. • Numerous regional trails and parks that connect to downtown Minneapolis, the Uptown area, St. Louis Park, and Minnetonka. • The surrounding Blake Road area includes parks, educational institutions, athletic center, large and small companies and retail businesses. Above: Images from Downtown Hopkins HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 4 DEVELOPMENT GUIDELINES The Blake Road Station has been noted for its strong redevelopment potential along the Southwest LRT Corridor in various planning studies. Factors supporting redevelopment in the Blake station area include a large and diverse population base, good station access, several strategic sites available for redevelopment, a number of underutilized properties, and open space amenities such as Minnehaha Creek and Cottageville Park. Near the proposed station platform, the Hennepin County-owned 43 Hoops site presents a near-term redevelopment opportunity for transit supportive uses. The Cold Storage site, now owned by the Minnehaha Creek Watershed District, and several underutilized sites along Excelsior Boulevard offer additional redevelopment opportunities near the station. A potential joint development project includes a park- and- ride ramp that may be able to be incorporated with a mixed-use development facing Blake Road and the station platform, located just south of the station. The Joint Development (A) proposed for the three parcels, including the Pawn America site, immediately south of the Blake Road LRT Station will house a structured parking ramp (245 parking stalls) to help increase access and ridership of the Green Line. Currently, SPO and the City of Hopkins are partnering to explore working with a private developer to incorporate additional components to increase the functionality, value and appeal of the site. The 43 Hoops Basketball Academy (B1) and adjacent site (B2) Well loved by the Blake Road community, the 43 Hoops Basketball Academy sits on a site owned by the Hennepin County Regional Railroad Authority situated just north of the proposed Blake Road LRT Station. The parcel was purchased for potential transit purposes, and offers the opportunity for higher density residential and other transit-related uses given its proximity to the transit station. The adjacent site is considered to be underutilized given the future potential of the area. The community has expressed strong desire for a community center in the area, for which 43 Hoops has served as a surrogate. Above: Sites near the Blake Road LRT Station. Clockwise from l to r: Joint Development site, 43 Hoops Basketball Academy, Cold Storaage site, and the Cedar Lake LRT regional trail. HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 5 Above: Some of the many amenities Hopkins has to offer. Top: Cargill campus, Bottom r: Blake School, Bottom l: New commercial development on Blake Road. The Cold Storage site (C) was seen as the site with the greatest redevelopment potential because of its size (approximately 17 acres), proximity to natural amenities which also buffer nearby uses, and visibility and access to Blake Road. Of critical importance on this site will be the integration of storm water management and expansion of the Minnehaha Creek Greenway. This section of the creek is currently the worst offender for pollutants draining into the creek’s watershed. Because of the site’s central location and size, attention should be given to creating connectivity to the surrounding amenities (e.g. Minnehaha Creek, Cottageville Park, Three Rivers Bike Trail, Blake Road LRT Station), and providing for walkable areas. The opportunity is great to explore how transit-oriented development could further enhance the area by addressing accessibility, livability, and strengthening the pedestrian environment for people of all ages and abilities. It might be advantageous to move the smaller sites to the south and north of the Blake Road LRT station for redevelopment first, which could strengthen the market for the more desirable Cold Storage site. It is important that the Blake Road Station maintain its neighborhood character, diversity, and sense of place. This can be accomplished by enhancing the pedestrian flow of the area, attracting smaller scale retail and services, and utilizing public art or green space to make it memorable. The Blake Road LRT Station offers an important opportunity to capitalize on the transit and natural amenities in the area, strengthen the multi-modal access, and provide for a mix of housing options to serve the needs of the community. HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 6 Above: Pizza Luce located near the future Blake Road LRT station. Recommendations for redevelopment of the site include: Goal 1: Create stronger connections and walkability for the Blake Road area A. Create a connected, walkable, mixed-use, sustainable neighborhood, with a pedestrian-oriented and human-scale streetscape. B. Greater pedestrian / bicycle safety through better signage and slowing cars on Blake Road. C. Improve the permeability of Blake Road by creating more areas for pedestrians to cross safely. D. Improve safety and security through partnership with the City’s Police Department, Three Rivers Police, and Metro Transit, with strategies such as greater security presence, improved lighting, and other practices such as CPTED (Community Policing Through Environmental Design). E. Pursue transit-oriented design that enhances multi-modal access, and provide for bicycle accommodations (racks, lockers, etc.) for businesses and residents. F. Connect site / LRT station area to bike trail. G. Pedestrian access to the Blake Road LRT Station from the north (e.g. 43 Hoops site) H. Add green space to soften the built environment that would allow for outdoor use year-round. I. Utilize landscaping and streetscape amenities to create stronger pedestrian district. J. Limit surface parking with new development encourage underground or structured parking. K. Improve connections with the Cargill Corporate Headquarters to strengthen local businesses. Goal 2: Preserve the neighborhood diversity L. Maintain cultural and ethnic diversity, and the needs of those communities. M. Provide for a range of housing types and affordability to meet the needs of all people throughout their life and changing lifestyle needs. N. Utilize universal design principles that can respond to changing demographic needs and anticipate in innovative ways to address the dynamic and changing needs of residents. O. Strengthen the vitality of the area through increased density and mixed commercial and residential uses. P. Encourage businesses that fit into and serve the needs of the community. Q. Enhance the intergenerational opportunities in the community. R. Engage neighborhood residents in planning for redevelopment projects early in the process. S. Promote high-quality design. T. Enhance a sustainable neighborhood by promoting energy efficiency and renewable energy. U. Create opportunities to live, work, learn, play – the spectrum of elements for a healthy community. HOPKINS BLAKE ROAD LRT STATION AREA : Development Guidelines 7 Above: Bike trail near the future downtown Hopkins LRT station. Goal 3: Improve water and environmental quality V. Align with efforts to expand the Minnehaha Creek Greenway to promote and integrate 260 acres of regional storm-water management to improve water quality for Minnehaha Creek. W. Connect the Minnehaha Creek Greenway to the newly expanded Cottageville Park and downstream trails and open space. X. Ensure community access to the Minnehaha Creek Greenway, the Three Rivers Park bike trail, and other public open spaces. Y. Reduce the area’s carbon footprint. Z. Incorporate sustainable development practices into new construction projects. Goal 4: Strengthen residential and neighborhood-oriented retail to enhance vitality and livability Support was expressed for: • A mix of housing types, including senior housing, that can accommodate a range of incomes, ages and family size (both rental and ownership options). • Multi-family housing amenities such as guest suites and shared space for larger gatherings. • Medium to high density residential, to preserve green space and enhance street-level amenities. • Locally owned businesses and increased opportunities for residents of all ages to live and work in the area. • Commercial uses that enhance rather than compete with downtown Hopkins Mainstreet vitality. • A hotel or motel. • Redevelopment that works to incorporate existing local businesses into new construction projects. • Creative ways to support small cultural businesses that serve the community. • Maintaining existing assets such as 43 Hoops Basketball Academy in the area. • A community center that supports activities for all generations. • Convenience services (e.g. fast food, bike repair, etc.), especially near the transit station. • Flexible space that can adapt as needs change. • The option of a trail attraction, offering a convenient stop-off spot for bikers and pedestrians. • Encourage public private partnership for infrastructure • A connected and complementary system of parks and other privately owned but publicly accessible (POPS – Privately Owned Public Spaces) open spaces that ensures higher quality development and weaves the neighborhood together to enhance livability (see Trust for Public Land’s report: Greening the Green Line http://www.tpl.org/our-work/parks-for-people/green-line-parks-and-commons). • Welcome developers and businesses that operate with equity principles of hiring and wages. Kersten Elverum, Director of Economic Development & Planning 952-548-6340 / kelverum@hopkinsmn.com FOR MORE INFORMATION, CONTACT: SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 71 Blake Road Station Area SW Community Works Corridor Investment Framework, 2013 SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 72 Current Housing Supply: Station Area 0%-30%30%-60%60%-80%80%-100%100%+Total Units Blake Road # of Units 30 1,626 190 180 598 2,624 % of Unit Inventory 1%62%7%7%23%100% Sources: SWLRT Housing Inventory; Marquette Advisors Units by Affordability Range (% of AMI) Current Housing Inventory by Affordability Range Blake Road Station Area (1/2 Mile Radius) Strengths: · Land availability. The “Cold Storage” site, owned by Minnehaha Creek Watershed District (MCWD) comprises approximately 17 acres with considerable potential for redevelopment in the short- to mid-term (net approximately 13 acres after provision of regional storm water area). · Existing housing stock includes more than 1,600 units affordable at 30-60% of AMI, representing 62% of the housing units within ½ mile. · Additional sites present potential for redevelopment, including the “43 Hoops” property owned by the County, as well as a number of under-utilized and aging commercial properties both north and south of the LRT line. It is reasonable to expect change/upgrade in use of these properties in the mid to long-term. · Minnehaha Creek and major recent investments by MCWD. · Cedar Lake Trail access. · Recent/ongoing investment in parks/green space, including Minnehaha Creek and Cottageville Park. · Proximity to major employers within ½ to 1 mile. Major employers in area include the Cargill corporate headquarters (Excelsior Crossing) and Japs-Olson. We also note that Blake is the next station immediately west of Louisiana, where Methodist Hospital is located, employing 3,900 workers. Given the challenges of redevelopment in the Louisiana station area, we expect that new housing in the Blake station area would be very appealing to Methodist Hospital workers. · Blake School campus to the south of LRT at Blake Rd & Excelsior Blvd. SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 73 Development Challenges: · Pedestrian environment needs improvement, including connectivity and streetscape improvements. · Connectivity of Cold Storage site to the LRT platform area. · Aging and deteriorating quality commercial development in the area, and absence of appealing “walk-to” shops and restaurants. · Low quality commercial sites present opportunity for future redevelopment; however, this is complicated due to fractured ownership and cost of sites. · Connectivity upgrades needed to Minnehaha Creek greenway, which is a major amenity for the area. Residential Develpoment Recommendations – Blake Rd. Station Area: Marquette Advisors estimates the potential for approximately 1,200 new housing units near the Blake Road Station over the long-term (10-15 years), including a mix of multifamily and single- family detached housing products. We recommend a mix of housing as follows: Product Type/Afforability Range Short Term (3-5 Yrs)Mid-Term (6-10 Yrs)Long Term (10-15 Yrs)Total Pct. Rental <30% of AMI 45 0 0 45 3.6% Rental 30-60% AMI 45 0 0 45 3.6% Rental 60-80% AMI 40 0 0 40 3.2% Rental 80-100% AMI 40 0 0 40 3.2% Rental 100%+ AMI 330 140 500 970 78.0% For-Sale (entry-level to mid market)0 80 0 80 6.4% For-Sale (mid-market to high-end)0 24 0 24 1.9% Total Units 500 244 500 1,244 100.0% Source: Marquette Advisors Blake Road Station Area -- Recommended Residential Development SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 74 30 1,626 190 180 598 2,624 45 45 40 40 1,074 1,244 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 <30% of AMI 30-60% of AMI 60-80% of AMI 80-100% of AMI 100%+ of AMI Total Housing Units Blake Road Station Area Existing Units Recommended New Construction We understand that the City has had discussions with a local developer regarding a potential project in the near-term, involving a combination mixed-use commercial/residential development along with park & ride. This development is expected to occur shortly after completion of LRT. We estiamte that approximately 150 market rate apartment units are supportable here. We also note that our development forecast for the Blake Road Station Area includes 51 units planned by Project for Pride in Living (PPL), which will include 4 apartments affordable to households earning <30% of AMI and another 47 units affordable at 50% of AMI. This develompent is expected to occur in the short-term. The Cold Storage site presents another short- to mid-term opportunity for a high-impact, SWLRT model-type mixed-use development incorporating a full range of lifecycle housing products ranging from affordable and workforce rental units to mid-priced detached cottage-style single family homes overlooking Minnehaha Creek. Additionally, we recommend that potential commercial sites west of Blake Road be considered jointly for redevelopment, including the County-owned “43 Hoops” property and adjacent parcels. The Cold Storage redevelopment area east of Blake should feature a primarily residential orientation, with neighborhood scale retail and restaurants focused along Blake Road. We believe there is an opportunity to provide in excess of 500 units on approximately 13 acres at the Cold Storage site. Units should be phased from approximately 2018 to 2022. We suggest a preliminary concept for the 13 acre site as follows: o Phase I (2018-2019): 120 apartments affordable at <100% of AMI along with 180 market rate apartments (avg rent approximately $1,500 to $1,600/month, or about $1.80 psf avg.) SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 75 o Phase II: (2019-2022) – 140 market rate apartments (avg rent $1,700-$1,800/month, or about $2.00+ psf); 80 entry level to mid-priced condos (low $200,000s to mid $300,000s); 24 detached cottages/homes (upper $200,000s to $400,000+) developed using pocket neighborhood design principles, featuring views of and strong connectivity to Minnehaha Creek. We note that connectivity of the Cold Storage site to LRT needs improvement. However, the size and location of the parcel and the influence of the Creek and recent greenway investment are primary drivers of residential demand and potential at this location, along with LRT. It is also important to note that our analysis of the site and market experience indicates that the Cold Storage site also has potential for future office development. Highest and best-use analysis is beyond the scope of this engagement; however, future office development should be evaluated as an alternate and/or adjoining complementary use along with housing and retail. Combination park & ride/residential-mixed use development should occur at Blake Road just south of the LRT platform, as suggested in the Investment Framework. However, this will require acquisition/assembly of privately owned parcels, including primarily under-utilized and aging commercial properties. Long-term potential for as many as 500+ additio nal residential units is possible through redevelopment of var ious parcels. This could occur along Exclesior Boulevard on the 16.51-acre parcel which is controlled by a single owner and/or multiple parcels currently occupied by low- quality commercial development on Excelsior Blvd., just north of The Blake School. However, redevelompent in this area will be complicated by multiple private owners and land acquisition costs. Within ½ of the Blake Road Station site there are an estimated 1,200 market rate apartment units which are “naturally occuring” affordable at or below 60% of AMI. Planning and focus of resources is reqiured which will result in the preservation of these units at affordable levels, and improves the maintenance and quality level of these aging properties. SWLRT Corridor Housing Gaps Analysis September 1, 2014 Marquette Advisors Page 76 SW Community Works Corridor Investment Framework, 2013 Investment in Public Realm: · Improve pedestrian connectivity to the platform area throughout the neighborhood. This should include connections from Cold Storage site to commercial area across Blake Rd and to the station area. · Develop trails and access points to Minnehaha Creek. · Seek out opportunities to provide additional neighborhood-scale shops and restaurants, along with enhanced pedestrian connections to commercial nodes. · A public plaza should be considered as part of park & ride/mixed-use development just south of the station platform. “Cold Storage” site redevelopment area. 13.0 acres + added joint commercial redevelopment which should be incorporated along Blake Rd. Potential long-term residential and mixed use redevelopment areas Potential short -term residential development with commercial & park/ride