03-06-02 WSMINUTES
CITY COUNCIL WORKSESSION -MARCH 6, 2002
A work session of the Hopkins City Council was held at 6:00 p.m. on March 6, 2002,
at the Hopkins City Hall. City Council members present were Mayor Maxwell and
members Brausen, Rowan, Jensen and Johnson. City personnel present were City
Manager Steve Mielke, Planning Director Jim Kerrigan, and Housing Coordinator
Kersten Elverum. Also present were Sid Inman, Ehlers & Associates; Heidi Kurtze,
The Cornerstone Group; Dick Paik and Anna Lincoln, Bonz/REA, Inc.
I. CALL TO ORDER
The meeting was called to order at 6:05 p.m. by Mayor Maxwell.
II. NEW BUSINESS
Retail Market Study Presentation
Kersten Elverum introduced Dick Paik, Bonz/REA, hlc. who conducted the retail market
study for the Marketplace Lofts redevelopment project. Mr. Paik began with an overview
of the project and his role in determining the feasibility of the retail component of this
mixed-use development. He explained the three key factors he evaluated: growth
potential, unseived niches, and opportunity to draw from a larger market area. He briefly
described the methodology that was used to complete the study.
Mr. Pails then described the existing retail market in downtown Hopkins and compared it
to similar markets in Excelsior, White Bear Lalce and Anoka. He described the trade area
as the area between highways 100, 394 and 494. He indicated that the entertaimnent
component of the Hopkins downtown is encouraging and that the recent addition of a
munber of antique stores is part of the recipe for a successfiil downtown.
He indicated that there is not much growth potential as Hopkins is completely built out,
however, he did see pent-up demaald and some unserved niches in areas serving the
upscale market. An inflow/outflow analysis indicated a large outflow in clothing and
eating/drinking establislmnents. From this analysis and from evaluating what other
similar cities had that Hopkins does not have, Mr. Paik developed a list of potential
tenants in the project's retail space. He projected lease rates of approximately $12 per
square foot, perhaps up to $14. He also indicated that the space would not attract national
chains, rather small, entrepreneurs with perhaps one or two other locations in the metro
area.
III. OLD BUSINESS
North Annex Land Use
Jim Kerrigan introduced this item by providing background and indicating that this was a
continuation of the discussion regarding the redevelopment of the Supervalu North
Annex property. He outlined three redevelopment options for this property:
• Business Park -currently zoned for this use
• Mixed-use -combination of office, manufacturing, production, retail and/or
housing
Office -Single, corporate user or multi-tenant
He explained that there are three ways the City can help facilitate the redevelopment
including renegotiating the purchase option, re-zoning the property and by providing
financial assistance. Mr. Kerrigan explained that consideration should be given to job
creation potential, timing in relationship to the real estate market, estimated increase in
tax base of the various types of developments, Tax Increment Financing (TIF)
requirements and the project's impact on the East End and the ability to change the
current image of this area.
He outlined the restrictions of the current TIF district and options available to address
those requirements, including legislative efforts in the 2002/2003 session.
Overall, the City Council expressed support for an office use of the property and a
willingness to wait for the office real estate marlcet to improve.
III. ADJOURNMENT
Brausen moved; Jensen seconded, to adjourn the meeting. The motion was approved
unanimously. The meeting adjourned at 7:10 p.m.
COid~T~I. MEMBERS
ATTEST:
Eu ne axwell, Mayor