CR2002-122 Livable communities demo account application
-
GITY Or:
., . ., ~
July 11, 2002 HOPKINS Council Report 2002-122
. LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT APPLICATION
Proposed Action
Staff recommends adoption of the following motion: Move to approve the submittal of
an application to the Livable Communities Demonstration Account for the Marketplace
Lofts redevelopment proiect .
With this motion, the application will be reviewed by the Metropolitan Council for
possible funding.
Overview
As a participating city in the Metropolitan Livable Communities Program, the City of
Hopkins is eligible to apply for funds through the Livable Communities Demonstration
Account. Demonstration Account funds are designed to fund models for Smart Growth.
The funding is an incentive to demonstrate new forms of development that make better
use of land and services already in place and forge a stronger relationship between land
use and transportation
The Cornerstone Group has requested the City apply for $250,000 in additional funds
for the Marketplace Lofts redevelopment project. Construction pricing is coming in
. higher than anticipated with one of the most significant costs being the underground
parking. The grant funds would be used to offset this cost, and keep the unit pricing as
proposed. The current pricing is consistent with the top-end recommendations of the
market studies and further price increases may jeopardize the ability to sell the units.
Additionally, the application requests $25,000 to pay for the gas line relocation,
offsetting the HRA's cost of relocating utilities.
Primary Issues to Consider
The City of Hopkins, through the redevelopment agreement, did agree to submit an
LCDA application for this round of funding. Therefore this action ensures that the
City/HRA is in compliance with the agreement.
SupportinQ Information
. Application for Livable Communities Demonstration Account funding
- I
Fin nciallmpact $ 0 Budgeted: Y/N Source:
-
Related Documents (CIP, ERP, etc.):
. Notes:
Office Use
Livable C01111TIUnities Den1onstration Account
. APPLICA TION FORM 2002
Cover Sheet - Do NOT attach a page(s) or use any graphic images on top of this
sheet (One page limit)
Project Name: Marketplace Lofts (formerly known as East COD
Redevelopment Pro_iect)
Applicant: City of Hopkins
Location (city): Hopkins
Address (street boundaries): Mainstreet from 8th Avenue to 7th Avenue
Primary PrQject Contact: Kersten Elverum
Person to contact with questions about Kersten Elverum
the content of this application:
Address 1010 First Street South, Hopkins, MN 55343
Phone 952/939-1395
--
Fax 952/935-1834
E-mail kelveru m@hopkinsmn.com
e
Capsule Summary
State in no more than 20 \vords the key objecti vc of the projcct you are proposing.
The key objective is to redevelop an underutilized block of Mainstreet Hopkins with a mix of
housing and commercial uses.
Proiect Summary
In no more than 100 words, summarize the project and its key components Address what makes this
project unique.
This project will result in the construction of a four-story, mixed-use building with retail and for-
sale housing, the largest vertically integnlted project of this type outside of the central cities.
The HRA will invest approximately $1.4 million in this project with the goal of anchodng the east
end of Mainstreet and providing a catalyst for additional investment.
This project is unique in that it greatly divc,"sifies the housing options within the downtown,
attracting residents who want the convenience and style of m-ban living. The architecture of the
building uniquely compliments the existing pattern and style of Hopkins' historic Mainstrcet.
.
1. Funding Request (Begin a ne\rpagc, one-page limit)
. A Fill in the table below. listing specific project components, with itemized dollar amounts. that you
will fund with an LCDA grant and total requested amount. List components in order of priority.
Component LeDA Amount
Requested
I. Stmctured parking $250,000.00
2.Gas Line Relocation $ 25J1OO.OO
3.
-
4.
5.
6.
Total Amount Reauested: $275,000.00
B. But/For Test: What could not be accomplished in the project but for receipt of an LCDA grant?
How will funded component(s) be a catalyst')
Limit I () lines
. The funds \vill be a cat:'llyst by helping control costs and keeping the units in the affordable range. The
current pricing is consistent with the top-end recommendations of the markd studies and
further price increases may jeopardize the ability to sd] the units.
The gas \ine relocation was an unexpected expense for which the City of Hopkins did not budget Funds
available for the project have been fully committed.
C. Timing: Describe any time constraints relating to funding sources or use of LCDA funding
Limit 10 lines
The project is due to begin construction in September 2002 and be completed by May 2003. LCOA funds
will be used as soon as they arc available.
.
I
C_\OoClInlt.:"HL<;; ;;tnd Scttin~5\krdv...:mm\t\iy 1.1t1l.:11nlcnl:1\L~yahk ('Ilmmnlllll~:" D"'1l1"l'L.:'UL'frn A~~cnl1l1l 2002_dl'~
2. Project Site Description and Components (Beglll a ncw page. ]1=-page limit)
. A. Proposed land use changes:
Will buildings be rehabilitated?
~u I Yes x No
Will buildings be demolished? x Yes II No
If yes, indicate thc number of and type of Six substandard commercial stmctures will be
buildings: dcmolished
Will new buildings be constructed? x Yes I: No
Check type of buildings CJ Commercial r I residential x both
Will new streets or other infrastmcture be x Yes I! No
added?
List any other kinds of land lIse changes planned:
An outdoor public courtyard, sidewalks and dining areas arc included in the site plan. Thesc elements
will serve both occupants of the housing units and customers ofthe rctai I spaccs. ~
B. Adjacent land lIses and relationships: Describe any plans or opportunities to \ink adjacent
land uses to the project site.
Limit ::; lines
-
The project will restore the active, pedestrian-friendly environmenL that exists within the other
blocks of Mainstreet. This had bcen lost \\ith the deterioration of the existing buildings and the use
ofthc buildings as storage and \VarehOllse space. The proposed projl.:cfs sit!; plan incorporates
Mainstreet's streetscape theme and the building has been designed to reflect and complement the
detailing, materials and style of the existing historic structures. The project will strongly enhancc
the propcrty directly south of the pr~ject site through shared parking, amcnities such as an outdoor
. courtyard and a building design that uscs the samc materials of brick and stucco, and the same
quality of detailing, on the rear as on the front.
C. Land Use Patterns (check all that apply)
_x _ Connect to traditional street pattern
_ Re-establish traditional street pattern
_x_ Improve existing traditional street pattem
_ Create new interconnccted street pattern
D. Walkability: Will new pedestrian infrastructure be added? x Yes No
If yes, what?
l' Streets x Sidc\\alks !.:::- Bike paths ,=1 Trails
E. Describe how the project will incorporatc Lransit.
Limit () lines - -
Thc project site is located on an existing bus roule with over] 3g buses passing the site every
\veekday. In connection with the project a new bus shelter will be constructed at the SE corncr of
the intersection of Mainstrcet and th Avenue
The sitc is one block from a park and ride and the Southwest Transit\\ay CorridoL a future multl-
modal transit and trail corridor.
.
C:\Dol;unl.t:nt;; a:ml SdU.ng:-i:.krdv.::mm\'1\.ly [il'CUl1lt.llb'\i.I~-'a!Jlc 1_'.'I!U11ilt11'h':::; I k.'llIL'rbtr;I~'n ;h,t'j)llJll ~OO~ d/1C
F. Type and Tenure of Housing: List the number ofhousillg units by type and tenure (ownerlrenter)
currentl:,>' in the project site area and plannl:d.
. Distinguishing Features:
Total # of # Units # llnits (# of stories,
1I nits Owner Rental architectural design)
Existing Housing: -
Single-family 0 () ()
Townhouse 0 0 0
Apartments or Condominiums 3 0 3
Duplexes 0 0 ()
Other (list): 0 0 0
Planned Housing:
Sin,glc- fami 1 y 0 0 0
Townhouse 0 0 0
Apartments or Condominiums 47 47 0 4-story. loft-style
condominiums
Duplexl:s 0 0 ()
Other (list): 0 0 0
G. Housing Density:
2.5 current overall density 3lJ planned overall densIty
- - -
units per acre (net) units per acn:: (net)
. H. Housing Affordability: List affordability kvc\s for eXIsting and planlled houSlllg in the follO\\ing
format: (Area median income - $76.7(0)
# of Units up to # of Units at 50- # of Affordable
50%, of AI'ea 80%, of Area # of Units at units to be
Median Income Median Income Market Rate demolished (if any)
Existing housing 3 0 0 3
Planned housing 0 10 37 N/A
Aloe there mechanisms to ensure long-term affordability: 11 Yes x No
If yes, check type: iJ land trust I ] resale price indexing I J other (list):
~ - .---
.
~"'\lJi1t:lUlI~r1t.;, and Scuings1lrdvcrLlll1l.J', ly D(loL:ui\lcnb\LI""ilb~~ ~ \....mmlIl11fl(:~ j ~~m, \n"tfiLl~n !\('n"!Ult 2002,d(l(
l. Mix and Type of Uses: List thc number and types of commercial, retail, office, government/civic.
arts/cultural, entertainment or other uses existing or planned in the project site.
. Number of Square Number of Square Indicate if planned uses
Type of Use Existing Footage 01' Planned Footage or are new construction or
Uses Acrea e Uses Acrea e rehab
New Rehab
~
Commercial 4 ~UOO
~~ ~ .~ - ~---
Retail , 7.500 7 ] 2. (J(J() X
k
Restaurant I 5.00n x
~
Office
_. ~
Govcn1mcn tIC ivic
- ~
Arts/Cultural
- - -"--
Entertainment
~ ~
Open Space/Public 1 2.0UO x
Space
Other (list)
- - -
J. Employment connections: Indicatc the numbcr of jobs within 2 miles of the project site and list
major employers.
Check
appropriate Major employers within 2 mile
number
- ~ -
. More than 5,000 jobs ____ _n___ ____ _
3,000-5,000 jobs x SuperValu, NAPea, Thcrmotech, Sungard Financial
1,000-3,000 jobs -
500-1,000 jobs ~~
Less than 500 iobs ~~
Will this project create any new jobs? x Yes No
If yes, how mal1\' and what type'! ~ -
Number Type
- --
10 Protcssiollal/Manage~
10 Administrative
25 S<.:rvicc/Retai I
5 Othcr
-
K. Environmental protection and enhancement: Docs th<.: project include environmental protection
practices and environmental enhancement measures?
x Yes I': No
If yes, \vhat kind?
_ Innovative practices to reduce storlmvater mnoff volume and improve water quality
. _ x_ Landscaping with native plants to improve habitat and rcduc.: pesticide use
_ x_ Construction of energy cfficient buildings to protect air quality
_ x_ Provision of green spaces for nxrcation and views
_ _ Other (describe): -.- - ~ --- ~-
-------- ~-
C '\Dpl.;tlJll~llt::. and Sc:tllllg:.\k..d\'~rum\l\ly U\)~lIll1";1It:;\LI\.~ibk l'PIl11lnulIl]~.., [_h:1I1o\n:-.tr;I'ij.,n A..::..:,1U1'I' )l)jjld(l(;
L. Replicability: State hO\v yOll \vill use components or processes of the: project in other locations in
. your community, or in the comprehensive: plan and zoning codes.
Limi 1 10 lines
The City views this project as a way to demonstrate to the development community that there is a market
for a different housing type on Mainstreet and other areas of the City including along Excelsior
Boulevard. It specifically will be used to demonstrate the potential of an adjacent redcvdopment site.
The design guidelines established for this pro.iect have been the catalyst for creation of design guidelines
for the entire central business district. The overall project design with featurcs such as enclosed trash
building, outdoor courtyard and overall superior architectural detai ling wi 11 set nc\v standards that
subscquent infill prQjccts will need to meet.
.
.
\'\D()cum~rUs aTIlt Sdhllgs.\bd\'~rum\'r..ly D(~CUm"'l,~I.LI\'ilbh.: ('(\lllII1I11Utlc::-; I kllwlt:-tr'lf511 Ae'lo1tllt ~OO2.dnc
3. Partnerships and Community Participation (Begin new page. one-page
limit)
. A Partnerships: List and briefly describe the type and nature of partnerships in the proj ect among
government. private, for-profit and non-profit sectors.
- -~ -
Name of Partners Type or Pal"tnership
Weis Builders General Contractor
--
DJR Architects Architects
--
The Cornerstone Group/RMF Entities Developer
Hopkins Business & Civic Assoc Consultant
Hopkins Historical Society Consultant
Hopkins HRA/City of Hopkins Owner
B. Community's role: Describe the role of residents. businesspersons and others in developing the
proposal, including the process to date, and plans for future community involvement in project
implementation.
Lim i t 8 lines
The selection of a developer and the design of the project have bel.;I1 accomplished through an open,
public process> Members of the business community \\ ere involved in the developer selection
process which included an advertised Request for Proposals. A committee of residents. business
owners, Historical Society Members and City Staff developed the design guidelines for the project
which were adopted by the City Council. This project is highly supported by the community and
has been highlighted in many of the City.s newsletters.
-
. C. City's role: How has the city supported the proJect')
Limit 8 lines
The redevelopment of the project site has been a long-term viSIOn of the City of Hopkins. The
City's goals for the prqject include increasing the density of the sitc with quality owner-occupied
housing above retail thus anchoring the east end of Mainstreet and bringing economic diversity to
the downtown. The City of Hopkins, through the Hopkins HRA. has acquired the property for the
project which consists of nine parcels and \\ill expend over $1.4 million through acquiSItion.
demolition and environmental remediation.
D. Planning and implementation efforts/public pa,"ticipation: Describe how any collaborative
planninglimplementatiol1 efforts and public participation processes contribute to the project.
I ,ill]]! 8 lines
The developer has held three focus group meetings with over 200 IKOplL; in attendance. Through
the meetings. the potential buyers werc asked to give feedback on cverything from exterior
elevation to unit design. interior materiaIs.common clements. amenIties" etc.... These comments
\Vcre then incorporated into the final design.
The developer has also relicd on the l1lemb<.:rs of the Hopkins Business and Civic AssociatIOn
(HBCA) for expertise on the retail component and facilitated a retail fOCllS group for information
. on shopping patterns and preferences as \\el1 as possible tenants for the retail space.
C:\.DOI,:UUlt:111s ;md Sdlings\"-Td\'t:'mm\JI.~y D\}~Lllll~TlI...\I.iI;"<lhk ('l,)IlJl1illl!ili~~ n....t\ll.n-;tnitfin i\CC0111l1 "'nn2 d\)~
-.- --
4. Regulatory And Implementation Tools and Strategies (Bcgil1l1f!\1'pagc,
hall-page limit)
. A. City reviewlregulatory process: Were any new city review or regulatory processes or procedures
used or developed for this project?
I~; Yes x No
If yes, describe them: (limit 4 lines)
Not Applicable
B. Zoning!regulatory changes: Were any zoning or other regulatory changes necessary for the project
to be implemented as planned?
x Yes [ No
State status of development or city adoption of them: Il1Lmt 4 lines)
The City of Hopkins approved the rezoning of the property to a PUO on June 18,2002.
C. Design standards: Were any design standards developed'?
x Yes [I No
I
. State status of adoption or inclusion in formal regulatory processes llillll( 4 lines)
The design standards were incorporated into the development agreement between the Hopkins
Housing & Redevelopment Authority and the developer.
5. Developability (Iwlf~p{lgt' 11/1111)
a. Market and feasibility studies: Have market and leasibility studies been conducted for the
project?
x~: Yes /-1 No
If so, state briefly the conclusions of the studies: (limit 4 I me!> I
The retail market study indicated a need for more traditional retail and food-related businesses.
Local retailers would be more attracted to the site than national tenants and rents would be
moderate 111e housing study' concluded there is a market for this type of housing, with absorption
of about 60 units. Prices below $ I R5 per square foot were strongly encouraged.
b. Developer's role: Is a devcloper(s) committed to the projeet'i x Yes C No
. Name of Develo er(s) T e of contract or commitment
The Comcrstone Group/RMF Entities Development Agreement
-
(,:\UnL...ull1~nl5 mill SctliJ'g:.;\krd\'l;'f1l1w,!\ly f)~I""lIm<:r1b.i_LI\'nbk: ('~lmtIllIllWc...II'.:[1h1fl:-;llat1rT A-eclIlull ~OO~ dill'
6. Readiness and Financial Aspects of the Project (Begin ne\1' page. / 1= poge
limit)
. a. Is the development site as represented currently within a designated development district, or an
approved development (i.e. PLIO)?
x Yes U No
b. Describe the applicant's controls of the site. or sites represented in the proposal?
_ under option
x o\.vn
- -
- condemnation
_ other (list):
c. If the site is not under the applicant's control, what steps wiI1 need to be taken in order to do so')
Limit 5 lines
Not Applicable
d. Are market studies or appraisals available for all components of the project (i.e. retail. office.
ownership housing, rental housing)? x Yes IJ No
. e. If the developer is acquiring the development site from the city. is the site being sold at fair-
market value? D Ycs x No
f Has an architect/engineer been selected for the project? x Yes J No
rfyes, what level of completion are the drawings at') (limit 4 lines)
Construction drawings are 75% complett::. All necessary site plan. zoning and planning and plat
approvals are complete.
g. HO\v have costs been determincd?
_ x_ bidding (partial)
x contracting estimates
_ developer cstimates
city estimates
_ other (list): -
h. If commercial is proposed, provide as lllllch specificity' as possible regarding the type of tenants
and roO ected rents.
T e of Tenant Pro' ected Rents
Full-service Restaurant $15-16 p.s.f
. Bakery/CoffceShop/Othcr Food $16p.s.f.
S L':cialtv Sho - Retail $12-14 .s.f
Service Retail $16-1Sp.sf I
c '\n(1i:.llIll~l1ls ilnd Si.:llings.\k:rd...\,:mm\~ly fJ(lcum<:nt..\Ll\'ilbl~ CClmllllllUtlc:-' n~~llh'n~lra'811 .'\COHlnl 2"Olr!pc
I. Describe the financial hardship or complcxity that requires LCDA funding.
Limit () lines
Due to the increasing cost of labor, materials and unanticipated site \\ork related issues; the cost of
. the project has increased. lessening the number of units affordable in the project. The project has
taken ovcr 40 rcservations over the last 4 months and has lost 20 uue primarily to the increasc in
sales price to cover these costs. Funding is rcquested to prevent filrthcr price incrcascs due to thc
incrcased cost of underground parking structure and additional site \\ ork that \,>ould othemisc to
passed on to the buycr thus hindering presale efforts nccded to get the project under construction.
~_~_r
J. If lcss fimding is availablc than requested. ho\\ can the project be phased')
Limit 6 lines
The project could not be phased since it is all one structurc. ho\\cvcr. construction may be delayed
until 2003 if prices increase enough to slo\\' the sales pace thus delaying the dcvdopcr meeting the
pre-sale requirement in order to start construction. A delay until 2003 will risk cancellation of tile
negotiated Contract for Redevelopment and result in holding costs for the City that arc not budgeted.
-
k. Does the applicant intend to re-apply for future LeDA funds for this project'!
. II Yes x No
1. Provide project sourccs/uscs budgds 011 the follO\ving pagc.
I
.
C.".DO(,\Inl~llt:; ;)11(1 Setting:-.\krd\"~rLlIll\!'.ty' IJonmli:~T1I:"o\Li"'''ilbl~ C\.mnmmili.;'i 'l~tII\'Tl:-;tlii"ttJH /~L,-'(}1U11 :.mO:!.do(:
--- --- -- - ---
SOURCES AND USES
~
Sources Amount Status Approval Anticipated by:
. st $ 1.900, OO() Negotiating Loan August 2002
Permanent 1 mortgage
Commitment
Constmction Loan $8,590.000 Negotiating Loan August 2002
Commitment
LCDA - 2001' $400.000 Approved NA
Developer Equity $400.000 Approved NA
TOTAL:
-
~ -
POl'tion from Other Public Other Private
Uses Amount LCOA Source Sources Sources
Hard Costs: $ $ $ $
Land $200,000 $200,000
Constmction $9.000,000 400,000 $X,600,000
.
-
Total Hard Costs: $9,200,000
Soft Costs:
A&E $350.000
Sales/Marketing $Y50.000
.-
Special Consult $425.000 -
Financing $215JJOO
Title & Recording $75,000
Legal $75.000 -
-
Total Soft Costs: $2,090,000
~
~
OVERALL TOTAL $11,290,000 ~
I
.
C.\Dl.loCllm~Jlt:; .md St:'tling.j\J...Jd\'~I1II11\l\ly DQL,:UII]<:':lIb",Ll\..~~ll~ C~\lUnHI1I111C~ [J":111~\lbni.Jllf)~ /\oL:L:,'llI1T :?()/J~,d.l'.:
.
-
.
u
d) x
vr
ll)
.:: x
d3
.s
+-' X
ll)
~ x
u
.-
0.. -
0- X -
ro -
ul
~ ~ x
~ ro
E
;:J ..c
u
~ c:
ll) N
~ .n 0
--
0= C .::1\
ro I
U t:: :::
r.F1 0 .S
0.. .....
E u
E- .- 2 c
U >-.. 1;; 0 ;,....-~
c: C"a g
. ~ ro o u ro
~ ll) u 2 0.
-0 C tl ;:l
0 ::I .- C u
"0 OJ) 0 u
~ c: oouo
~ ......
.
r-