Memo - E Hopkins Land Use - Blake Rd Streetscape
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MEMORANDUM
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Hoisington Koegler Group Inc.
To:
From:
Subject:
Date:
Hopkins Zoning and Planning Commission and staff
Mark Koegler
East Hopkins Land Use and Market Analysis and Blake Road Streetscape Concept
April 24, 2003
The attached East Hopkins Land Use and Market Analysis and Blake Road Streetscape Concept represent
the first complete copies of each draft report. Because they have always been separate plamling initiatives,
· it seemed appropriate to create two documents rather than incorporating them into OIle report. ~
In examining the draft of the East Hopkins Land Use and Market Analysis report, we have concluded that
the concept plan could benefit froll1 some additional information that would outline general design
guidelines for improvements in and adjacent to the "triangle area." Such information could address
preferred building form, appropriate materials, setbacks, landscaping etc. We will add general design
guideline information to the report in its fInal form as well as any comlnents that the Zoning and Planning
COlnmission feels to be appropriate as a result of the review next week. .
We will provide an overview of the report at the Zoning and Plalming Commission meeting and be
prepared to address any questions that might arise.
123 North Third Street, Suite 100, Minneapolis, MN 55401-1659
Ph (612) 338-0800 Fx (612) 338-6838 www.hkgLcom
Direct (612) 252-7120 Email mkoegler@hkgLcom
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Table of Contents
CHAPTER 1: INTRO DUCTI ON ..... ...................... ......... ....~.. ....... ..... .................... 1-1
CHAPTER 2: SITE CONTEXT ............................................................................ 2-1
CHAPTER 3: MARKET SUMMARY .................................................................... 3-1
CHAPTER 4: TRANSIT IMPLICATIONS ................................................................ 4-1
CHAPTER 5: LAND USE ALTERNATIVES ..........................'.................................. 5-1
(HAPTER 6: REDEVELOPMENT CONCEPT ......................................................... 6-1
CHAPTER 7: IMPLEMENTATION/NEXT STEPS .................................................... 7-1
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CONSULTANTS
HOISINGTON KOEGLER GROUP INC.
123 NORTH THIRDSTREE7; SUITE 100
MINNEAPOL/~ MINNESOTA 55401
612.338.0800
WWW.HKGI.COM
Bonz I REA, Inc.
R l. "'. ,; 5 T A '[I: A l) v I 5 0 R S
BONZ/REA
67 BATTERYMARCH STREET
BOSTO~ MA 02110
617:478.2090
WWW.OONZREA.COM
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
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Introduction
The Hopkins "East End" area has experienced ongoing changes and has been heavily
influenced by changes in industry, transportation and in residential living patterns.
In recent years, the area lost two major industrial employers when the Alliant Tech
plant and the SuperValu North Annex warehouse facility closed their doors. A
1994 corridor study for Excelsior Boulevard initiated a series of roadway upgrades;
the second phase, which lies within the study area, is now under construction. Finally,
in the late 1990s, sixty-two new single-family homes were constructed in the area,
the biggest single non-attached housing project to occur in Hopkins in decades.
Some of these changes were planned by the city of Hopkins and Hennepin County;
some were the unforeseen results of a changing economy. All of them, however,
focused attention on the east end of the city and helped prompt this effort to take a
more proactive look at future land use and market opportunities in this portion of
~opkins.
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STUDY AREA
The East Hopkins Land Use and Market Analysis focuses on a diverse area of the
community that lies just east ofTH 169, within about a mile of downtown. The
boundaries of the study area generally include Excelsior Boulevard on the south,
Blake Road on the east, TH 7 on the north and TH 169 on the west. Figure 1
identifies the project area and also identifies both the primary and secondary portions
of the overall study area. The primary portion of the study area is the segment of
the overall proj ect area that is likely to see change in the short-term due to roadway
improvements and property acquisitions (Excelsior Boulevard). The secondary
portion of the study area immediately surrounds the primary area. It is not as directly
impacted by roadway improvements, but is significant in its own right due to the
presence of large-scale vacant parcels, existing residential neighborhoods and natural
amenities.
INFLUENCING FACTORS
As noted above and illustrated in Figure 2, the east end. of ~opkins has been
influenced by a number of factors. An overview of these influencing factors helps
provide a background for the study effort.
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EXCELSIOR BOULEVARD IMPROVEMENTS
The 1994 corridor study for Excelsior Boulevard established a new roadway
alignment that would change the face of the proj ect area. Because of tight building
setbacks on both sides of the road and the need for expanded right-of-way, a decision
EAST HOPKINS LAND USE
AN 0 MARKET STU DY
Hopkins, Minnesota
Figure 1: Study Area
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Blake School
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Legend
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c::J Secondary Study Area I
EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
Page 1-2
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Figure 2.' Fadors InDuenclng the Study Area
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
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was made to remove the first tier of commercial buildings along the south side of
the road from Monroe Street to Blake School. Removal of these buildings, which
began in 2000, allowed the road to be shifted to the south and created an expansive
landscaped area separating Excelsior Boulevard from the single-family
neighborhoods to the south.
Shifting the roadway to the south also created additional 01 and on the north side of
the road that could possibly be attached to existing properties to either encourage
aesthetic improvements, or be used for future redevelopment purposes. Since some
of the buildings along the corridor are aging and have need for substantial upgrades,
the latter option, the properties' potential for redevelopment, became one of the
primary focuses for this study.
ALllANT TECH
Alliant Tech, a defense contractor, operated a 537,000 square foot plant on an 11-
acre site at the comer of Jackson Avenue and Second Street NE. Closure of the
plant resulted in the loss of local employment and also left a large, very visible
vacant structure behind. Substantial parking areas serving the plant were located
on the north side of Second Street. Consistent with preliminary land use
recommendations that evolv~d as part of this planning process, these areas were
converted to housing during the assembly of this study. The former plant building
is currently undergoing improvements that will allow the building to house offices
and an indoor mini-storage facility.
SUPERVAlU NORTH ANNEX
The SuperValu North Annex site sits at the highly visible intersection ofTH 169
and Excelsior Boulevard. The site, which totals almost 29 acres, contains a largely
vacant 600,000 square foot warehouse and dry goods storage building. The property
is presently zoned as. Business Park and is currently on the market.
In 2001, the North Annex site was the proposed location for a new office campus
that was to be the new corporate home of Medica. Although the project was
cancelled, it helped call attention to the property's potential to become a signature
development site for a major office complex or corporate headquarters. Attracting
such a use to the area would significantly boost employment and further support
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area commercial developments, both along Excelsior Boulevard and in downtown
Hopkins.
PARKSIDE
The Parkside residential area was developed in the late 19908 as a small lot, single-
family detached neighborhood. The project was significant because it was Hopkins'
first major, single-family development project in decades. The project has also
provided an example of how successful intill housing could be in east Hopkins. As
a result of the Parkside development's success, former Alliant Tech parking areas
north of Second Street are currently being converted to medium density housing
consisting of a mix of small lot, single-family detached homes, and attached
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Parcels on the north side of Excelsior
Boulevard are expeded fa redevelop In
the future.
BuildIngs on the south sIde of ExcelsIor
Boulevard have been removed to
accommodate roadway Improvements.
Parkside was a pioneering residential
development In the study area.
EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
Page '-4
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townhomes. The project, known as the Regency, is again proving to be very
successful in the marketplace.
REGIONAL TRAILS
Hopkins enj oys a unique position as the confluence and hub of three maj or, regional
recreational trails extending from a location along Excelsior Boulevard to the
southwest, northwest and east to downtown Minneapolis. This eastern leg of the
regional trail network passes through the study area. Accordingly, the study area
offers excellent trail access for recreational use and non-motorized 'vehicle
commuting.
REGIONAL RAIL CORRIDOR
The Hennepin County Regional Railroad Authority owns the rail line that passes
through the southern end of the project area. Over the past 15 years, the rail line
has been considered for long-range transit improvements, either as an LRT line, or
to accommodate some other form of mass transit. Additional discussion of the rail
line and its impact on planning in the area occurs later in this report.
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MINNEHAHA CREEK
Minnehaha Creek is one of the Minneapolis area's most recognizable natural features.
However, as the creek passes through the study area, it is largely concealed from
public view by existing commercial buildings. Despite its current underutilized
and hidden condition~ it could potentially provide a stronger visual element for the
northeast portion of the study area.
REGIONAL SMART GROWTH INITIATIVES
"Smart Growth" has become a common planning principle throughout the country
in recent years. While smart growth can be defined in different ways, it generally
implies the creation or maintenance of livable communities, places in which people
have opportunities to work, live and shop in close proximity to one another.
The Hopkins Land Use and Market Study is a smart growth initiative. Funded in
part by the Metropolitan Council, the study examines the project area for future
development opportunities that integrate places of employment, places to live, places
to shop for goods and services, and transit amenities.
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POTENTIAL BLAKE ROAD IMPROVEMENTS
The phased improvement of Excelsior Boulevard has drawn attention to the
appearance of Hopkins' major roadways. Blake Road on the east side of the study
area is a primary north/south link between Excelsior Boulevard and Highway 7.
Responding to interest by the City of Hopkins in examining potential aesthetic
improvements along Blake Road, the Blake Road Streetscape Concept was
assembled as part of this planning study. The Streetscape Concept is documented
in a separate report.
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Views of Minnehaha Creek are largely
obscured by commercial development
EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Mi~nesota
Page 1-5
STUDY OBJECTIVES
Assembly of the East Hopkins Land Use and Market Study was guided by a series
of objectives formulated at the beginning of the planning process. They include:
Conduct' an Overall Market Analysis - Understanding market potential was
viewed as an important consideration in examining future growth potential.
Bonz/REA completed a market analysis for the project that is,summarized
later in this report.
· Review Current Regional Development Trends - Residential and
commercial development patterns have been changing in recent years.
Mixed-use projects incorporating both residential and commercial
development have proven successful in the Twin Cities marketplace.
Regional development trends were examined in the early portion of this
study in order to determine appropriate developmentpattems for the project
area.
hnprove Connections to Other Parts of Hopkins - The study area offers
excellent roadway access due to its proximity to Excelsior Boulevard, TH
169 and TH 7. One of the objectives of the study is to further explore non-
roadway connections, through either off road trails or improved transit
opportunities.
Examine Potential Changes in Land Uses - The upgrading of Excelsior
Boulevard is a catalyst for land use change.' One of the primary objectives
of this effort is to examine appropriate long-range land uses for the study
area, considering both the short-term implications. of roadway
improvements, and other changes that may evolve more incrementally over
time.
EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
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Site Context
PLANNING AND RE'GUlATORY CONTEXT
The East Hopkins Land Use and Market Analysi~ study area is included in a variety
of plans that will help shape its future. At the local level, Hopkins' Comprehensive
Plan designates a pattern of future land use for the area. In addition, the Hopkins
Zoning Ordinance further delineates the specific business and residential uses that
are allowed on all of the parcels within the project boundary.
Neither of these local tools was considered "an absolute" in assembling this study.
The planning process and the land use concepts that emerged from this analysis
were not constrained by present plans and ordinances. Rather, they were assembled
based on an assessment of market conditions, and a consideration of emerging
development trends, such as mixed-use, that challenge traditional zoning regulation
and mandate new, more flexible zoning provisions. I
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, Despite the fact that current plans were considered as background information in
the preparation of this study, it is important to understand their impact on the study
area and the direction that they currently establish. Accordingly, information on
each of these is presented as follows:
EXISTING LAND USE
Existing land use is shown on Figure 3. The study area consists of a mix of
commercial, industrial and residential uses. Commercial uses are generally clustered
along Excelsior Boulevard and Blake Road, while concentrations of retail uses
occur on the corners at the intersections of Blake Road and Excelsior Boulevard,
and Blake Road and Highway 7. Industrial uses can be found on either side of the
railroad tracks generally south of Second Street NE. Major industrial users include
Edco Company, the former Alliant Tech building and the SuperValu North Annex
site.
The northern portion of the study area contains a mix of residential uses. Single-
family homes are located in the western portion of the area and higher density
townhomes, and apartments are in the northern and northeastern por1:ions of the
study area. Housing within the area generally is in good condition, with the exception
of some higher density buildings needing improvements and renovations.
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The project area is also the location of Oakes Park, which is a 5-acre neighborhood
park. Oakes Park contains active recreational facilities such as ball fields, a hockey
Commercial uses are concentrated at
Intersedions and along major roadways.
The new Regency neighborhood under
construdion across the street from the
former Alliant Tech plant
EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
figure 3,. Existing Land Use for the Study Area
Existing Land Use
Existing land Use Categories
D Low Density Residential
~ Medium Density Residential
\ _ High Density Residential
_ Commercial
_ Business Park
_ Industrial
_ Public/Institutional
_ Park/Open Space/Trail
City of :Jfop/ijns
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500 0 1000 2000 3000 4000 5000 Feet
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rink, tennis courts and a sledding hill. The park also contains a play area and picnic
shelter. The park's central location makes it convenient and accessible for much of
the study area, particularly some of the higher density housing.
FUTURE LAND USE
Figure 4 contains Hopkins' Future Land Use plan. The future land use plan
designations are largely reflective of the existing land use pattern, however, two
recent changes are noteworthy. First, the SuperValu North Annex site is designated
as the location for a business park. This land use designation allows some flexibility
in future uses, but is focused on attracting a large scale, office and/or corporate
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EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
Page 2-2
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FIgure 4.' Future Land Use Plan for the Study Area
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Land Use Plan
Land Use Categories
D Low Density Residential
~ Medium Density Residential
_ High Density Residential
_ Commercial
_ Business Park
.. Industrial
_ Publicllnstitutional
~ Open Spacerrrail
_ Park
City ofJ(opRjns
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headquarters user. It is viewed as a signature development site, one of the only
sites of such size in the Twin Cities metro area within the 494/694 beltway.
The second change in the land use pattern involves new residential development.
The Parkside and Regency proj ects along the north side of Second Street NE have
been very successful. They have established new single-family and townhome
living opportunities. Because of their success in the marketplace, similar projects
could occur elsewhere in the study area if suitable sites can be found through future
redevelopment efforts.
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EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
P,age 2-3
ZON,ING
Existing zoning is shown on Figure 5. Zoning designations parallel land use
designations. The zoning map generally stipulates varying residential classifications
in the northern portion of the study area and industrial and commercial cla~sifications
are found in the south, generally south of Second Street NE.
Figure 5: Zoning Map for the Study Area
Zoning Map
Zoning Districts
jg R.1.A Single and Two Family High Density
~ R.1.B Single Family High Density
D R.1.C Single Family Medium Density
D R.1.D Single Family low Density
D R.1.E Single Family Low Density
o R.2 low Density Multiple Family
D R-3 Medium Density Multiple Family
~ R.4 Medium High Density Multiple Family
~ R-4 Planned Unit Development
_ R.5 High Density Multiple Family
El R~ Medium Density Multiple Family
CJ B-1 limited Business
_ B..2 Central Business
_ B3 General Business
D 1-1 Industrial
_ 1-2 General Industrial
_ institutional
_ Business Park
City ofJ[opfijns
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
Page 2-4
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Market Analysis Summary
INTRODUCTION
In seeking to inform the planning processes for the study area, the market analysis
contained herein provides: (1) an understanding of local development outlooks1;
(2) an identification of the area's most promising development niches; and (3) a
general identification of the challenge for planners in seeking to maximize the area'8
development potential.
This document c~ntains a summary of the market analysis that was completed as
part of the planning process. The full market analysis can be found in Technical
Memorandum #1 which was produced as a companion to this report.
I Redevelopment potential in the study area arises as a result of:
· The proposed realignment of Excelsior Boulevard between Highway 169 '
and Blake Road. Reconstruction will move the roadway approximately 40
to 50 feet to the south of its current alignment. This movement will add a
commensurate amount of land to the parcels along the north side of the
road, possibly freeing available land for new development;
The relocation of Alliant Tech from its site in the southwest quadrant of the
Second Street and Tyler Avenue intersection, where it has occupied
approximately 11 acres; and
SuperValu's vacation ofa 29 acre parcel located between the Alliant Tech
campus and Highway 169.
SUMMARY OF KEY FINDINGS
Positive Regional Economic Outlook: Hopkins derives its market ~evelopment
potential from the ongoing growth in the Twin Cities economy. The metropolitan
area economy is characterized by a diverse economic base with a growing
professional services component and stable growth patterns. While local and
regional economic conditions have declined along with the ongoing downturn in
the national economy, the regional economy maintains a positive long-term outlook.
Strategic Location: The study area occupies a strategic location, offering proximity
to downtown Minneapolis and. direct access to the regional freeway system and
Excelsior Boulevard, a major suburban traffic carrier. Western suburban Hennepin
EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
County offers few if any sUDstantial developable land parcels at such strategic
locations; this gives the study area an increasingly important development asset.
Develovment Constraints and Challenges: The study area's low-end, industrial
image constrains its potential for development targeting the economy's higher-end
growth sectors. Under these conditions, development prospects face two challenges:
1. Until new development~ give new identity to the area, new commercial
developments in the area will not target high-end tenants or markets;
2. To the extent that desirable upscale development does occur, under current
conditions such developments would seek to minimize their relationships
with their immediate surroundings, rather than maximizing their potential
influences.
Planning Challenge: Given these assets and constraints, the study area's prospects
for attaining its maximum development potential - and recouping the public
investment in street realignments along Excelsior Boulevard - are contingent upon
public as well as private investments that will enhance the overall study area's
image and physical environment.
Emerging Changes and Development Forms: fu seeking high-quality development
that will enhance the image and property value of the study area, several emerging
factors will help generate a level of market support that has not been available in
the past. One of the more prominent changes involves the emerging popularity of
"New Urbanist" development forms featuring mixes of complementary uses in
clustered, pedestrian-oriented centers. In order to succeed in the study area, New
Urbanist developments should: (1) focus on one or more "anchor" uses based on
market-driven ,demand; and (2) provide convenient access to amenities such as
recreational facilities, entertainment destinations, and/or a mix of uses that can be
of mutual benefit to one another.
Strongest Niche: Commercial Office Development: h1 seeking to realize the study
area's maximum development potential, the City should target commercial office
development. This represents the study area'8 strongest market niche.
Notwithstanding currently prevailing weak regional market conditions, the Study
area's location offers three key advantages:
Location in the metropolitan area's prime suburban office region(s). The
West and Southwest suburban office markets contain more than one-third
of the metropolitan area's office inventory and contain its largest suburban
concentrations of corporate office tenants;
Proximity to the region's high-quality office labor;
· A strategic location offering excellent access to the metropolitan area
freeway system as well as downtown Minneapolis.
Given these advantages, over time the study area will offer an attractive locatio~
for new large-scale office development.
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 3.2
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Long- Term Office Development Potential: As regional market conditions improve
over approximately the next five years, developers and/or corporate tenants will
seek new office development in the western/southwestern parts of the Twin Cities,
and are likely to target the SuperValu site at the northeast quadrant of Highway 169
and Excelsior Boulevard. Following the introduction of a new high-quality catalyst
project at this location, additional office development would follow. Applying
reasonable annual growth rates of2.5 to 3 percent, total new office development in
the study area would amount to roughly 370,000 square feet over the next ten years
and 735,000 to 755,000 square feet over the next twenty years.
OFFICE MARKET POTENTIAL
EAST HOPKINS MARKET AREA: 20 YEARS
Low High
Growth Rate 1 2.50% 3.00%
Initial Catalyst 2 325,000 325,000
10- Year Growth 368,000 377,000
Avg. Annual 36,800 37,700
20- Year Growth 736,000 754,000
. A vg. Annual 36,800 37,700
Annual A vg. Multi-tenant office absorption in 450,000 450,000
combined West and SW markets: 1991-2002
1 Range of growth rates based on various economic projections furnished by MN
Dept. of Economic Security, Metropolitan Council, economy.com.
2 Initial office development at NE quadrant of Highway 169 and Excelsior Boulevard.
Figure based on AlIina Medica proposal; project assumed to open in Year 5.
Source: Metropolitan Council; MN Dept. of Economic Security; economy.cont;
Colliers Towle; United Propeties,. CB Richard Ellis; Bonz/REA, Inc.
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Opportunity for Residential Develooment in Attached Formats: In recent years,
Hopkins and its neighboring communities have attracted new rental housing as
well as for-sale developments in townhouse, duplex and midrise formats. These
have targeted the local and regional market's younger (age 20 to 29) and o,lder (50
and older) householders. Recent apartment developments,have included luxury
units; for-sale projects have successfully targeted a middle-tier, $180,000 - $300,000
price range. Apartment and townhouse development may offer short-term
opportunity in the study area, but given an environment enhanced by additional
public- and private-sector investments (e.g., nearby office development, a well-
planned, mixed-use environment, aesthetic amenities, recreational amenities, etc.)
the study area may also be able to target increasingly upscale residential development
niches.
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 3-3
Retail Sector: Prospective retail development in the study area would suffer from
(1) ample competition In local'as well as regional niches, (2) market wealmess at
existing competitive properties, and (3) limited prospects for local demographic
growth. Retail development in the Study area could benefit from convenient access
to new high-end office, residential and/or lodging development; absent such
development, the retail market will not offer an attractive market opportunity for
developers.
Lodging Sector: Prospective lodging development in the study area would face
ample competition from properties located throughout Minneapolis's western and
southwestern suburbs. The recent performance of these properties does not indicate
strong demand for additional properties. New office developments and high-quality
restaurants in the Study area would improve its market prospects for hotel
development, but without such improvements, lodging would not offer an attractive
development opportunity.
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Ovtimum Mixed-Use Opportunity: Overall, the office market offers the greatest
potential for attracting high-quality development that can contribute to an improved
image for the study'area. h1 targeting quality development (and redevelopment)
throughout the study area, the City may be able to use developer interest in office
development as a lever to attract developments offering a mix of uses in a mutually
beneficial, planned environment. Given this character of development, the City
and the new development can help promote additional opportunities for residential
and possibly retail development, thus further enhancing the character and vitality
of the Study area.
Limitations on Retail Components in Mixed- Use Development Protects: A critical
mass of new residential households can create new demand for retail space. Given
the significant market constraints to new retail development in the area, however,
substantial new retail development in the study area would most likely follow the
introduction of nearly 2,000 new residential units.
As shown in the table below, a smaller, 1,OOO-household scenario (even this scenario
would represent a 12 percent increase in the number of Hopkins ' households) would
offer limited potential, as this would require that a typical new grocery-anchored
shopping center capture more than two-thirds oflthe new households' total retail
spending. This is unlikely. Therefore, new retail developments would be
considerably smaller than 80,000 square feet. Given a smaller, unanchored center,
however, the achievable capture of local (as well as non-local) retail spending
declines commensurately. As a result, new retailing opportunities would most likely
focus on expansions to existing competitive retail centers; new retail space in the
study area would most likely fall in the category of small (e.g., 5,000 to 12,000
square feet) convenience-related ground-floor components.
Under a longer-term, 2,OOO-household scenario, given relatively high household
income levels, a new retail center would have to capture roughly one-third of
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 3-4
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households' retail spending. Under this scenario, development, may be feasible for
80,000 square feet of new retail space. This scenario, however, would require the
introduction of new households amounting to nearly 25 percent of Hopkins ' current
total, and would not occur within even a twenty-year time span, if ever.
RETAIL DEVELOPMENT POTENTIAL
1000 households 2.000 households
Low High Low High
Household Growth 1,000 1,000 2,000 2,000
A vg. Household Income $60,000 $80,000 $60,000 $80,000
Household Retail Sales @ 40% gross income $24,000,000 $32,000,000 $48,000,000 $64,000,000
Sales/sq. ft. 275 275 275 275
Su~portable Space w/lOO% spending capture 87,000 116,000 175,000 233,000
Grocery-Anchored Shopping Center 80,000 80,000 80,000 80,000
Required Retail Spending Capture 92.0% 69.0% 45.7% 34.3%
Potential Influences: New stimuli may be required to attract high-end development
and generate desirable images for the study area~ Potential stimuli include:
\
Market-driven office development: Upscale office development and high-
profile tenants, if supported by other improvements in the area's physical
environment, would help position the study area among a limited number
of desirable development locations in the inner ring of Minneapolis's
western suburbs. Such development is most likely to occur on study area
parcels offering direct proximity to the Excelsior Boulevard/Highway 169
interchange.
Public imDrovements: As private investors seek development opportunities
in the study area, concurrent public investments would enhance market
opportunities while increasing the study area's visibility as a location for
additional private investment. Potentially appropriate public investments
would address issues such as aesthetic appearances, recreational amenities,
access (to and within the study area), and others. In addition, the potential
introduction of a light rail transit corridor and station in the study area
would further enhance interest in new commercial and residential
development opportunities.
(FOOTNOTES)
1 Much of the market research for this analysis was conducted prior to September
11, 2001.
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Hopkins, Minnesota
Page 3-5
Transit Implications
The S~uthwest Transit Corridor passes through the study area providing a potential
future link to a variety of destinations outside the city of Hopkins. As noted in the
July 2002 edition of the Southwest Corridor News, "the corridor was first identified
for transit use in the 1998 Comprehensive Light Rail Transit (LRT) System Plan
for Hennepin County. In the early 1990s, the HCRRA purchased the Southwest
Corridor right-of-way to preserve it for future transit use. In 1999, Hennepin County
partnered with the Metropolitan Council/Metro Transit to conduct the 29th Street
and Southwest Busway Feasibility Study. The Southwest Corridor was also
identified in the Metropolitan Council's Transit 2020 and MnlDOT's Busway Study
as an exclusive busway candidate prior to 2010.
In 2001, the State Legislature acted to prohibit the Metropolitan Council from
expending funds to study, plan, design, or construct an exclusive bus way in the
cities of Eden Prairie, Minnetonka, Chanhassen, and Chaska as well as in the
Kenilworth and Midtown Corridors in Minneapolis. Late in 2001, the Metropolitan
Council changed the designation of the Southwest Corridor from "exclusive busway"
to "transitway technology unspecified.
In early 2002, the HCRRA initiated a study to revisit earlier plans to develop light "
rail transit along this corridor. ", That study which is currently nearing completion
looks at a variety of alignments for routes from Minneapolis to Eden Prairie and
focuses on two primary modes, either Light Rail Transit (LRT) or Diesel Motor
Unit (DMU).
Regardless of the mode selected, the construction of a transit line passing through
the study area could significantly enhance the attractiveness of the area as a business
and residential setting. Accordingly, this study examines a number of potential
station locations and their impacts on surrounding land use. It should not be
construed as a definitive station study. That effort will take place after the Southwest
Corridor Rail Transit Study is completed in 2003.
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Hopkins, Minnesota
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 4-2
Land Use Alternatives
LAND USE CONCEPTS
While the primary study area is the area likely to see the most immediate change, it
is in the broader secondary study area where many of the influencing factors
mentioned previously converge and exert the most force. . Although Excelsior
Boulevard and the Southwest Transit Corridor (and its regional trail) are included in
the primary study area, their importance is related more to their significance as part
of a regional transportation system. Minnehaha Creek is o~e of the most impo~ant
waterways in the Metropolitan Area. Aregional trail parallels TH 169, a major state
highway, and new residential development of a traditional scale and pattern is being
added to the existing neighborhood. Understanding these various forces as well as
other regional trends is important in helping to understand how East Hopkins ~ts into
its community and its region. The Concept Land Use Plan is a tool to help shape this
understanding, a road map of where the neighborhood wants to be as it moves into
the future.
The City of Hopkins most recently updated its Comprehensive Plan in 1999, but
since that time there have been changes that the plan did not anticipate. As part of
this study, several concept land use plan alternatives incorporating subtle changes to
the existing Comprehensive Plan were explored.
OPTION 1
The development focus of this concept is minimal, focusing instead on improvements
to the public realm. While the SuperValu North Annex site would be redeveloped as
an office complex and industrial redevelopment would happen within the existing
Alliant Tech building, the remainder of the study area (including the primary study
area) would only see spot redevelopment.
Attention would instead be focused on improvements to what the City directly
controls-public land, streets and rights-of-way. A small parcel north of the SuperValu
site would be converted from little-used City storage space to an open space amenity
and a trail head for the regional trail. Other trails would fmd their way through the
neighborhood and connect with the regional trails. Public access to Minnehaha
Creek would be created along Hiawatha Avenue and trails along both sides of the
wetland would increase public opportunities to connect with the creek. Streetscape
improvements on Blake Road and Second Street NE would create a public amenity
and identity for the area, and would improve pedestrian circulation both within the
site and connecting to areas beyond, such as Knollwood Mall and Downtown Hopkins.
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins) Minnesota
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.. D Medium Density Resfdential
II High Density Residential
CommerciaVRetail
~l:if.ffi Office/Industrial
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. off..-.et buaway, LRT. bI UwI)' Dr combNlon
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 5-2
Public transit in this option would take the form of a regional busway with a stop at
Blake Road and another at Excelsior Boulevard that would include more transit-
ariented cammercial redevelapment. The same corridar wauld also' be shared by a
regional commuter trail, and pedestrian connections to this transit corridor would be
enhanced tlrroughout the study area.
OPTION 2
Although this concept is primaril~ concerned with maximizing open space and creating
a "green infrastructure," it is focused more ~trongly on development and
redevelopment than Option 1. Again, the SuperVaJu site would be redeveloped as
an office complex and again, part of the Alliant Tech building would see new ~dustrial
development, although part of this building would be removed in this concept, creating
space far parking an site and eliminating the need far parking north af Secand Street
NE. With parking removed north of Second Street NE, a linear park would be
created as a permanent open space buffer between the existing residential
neighborhood to the north and the industrial uses south of Second Street NE. East
of Alliant Tech, Edco would remain, but the uses ea~t of it would eventually redevelop
as a mix that would include commercial. The pritpary study area would redevelop
with a mix of uses, but the current industrial uses Within this area would remain as
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part <}f the future mix. Access points to this area would be reduced and an interior
circulation system would be created to help organize the site. This concept also
suggests creek-oriented, mixed use redevelopment of the site on the west' side of
Blake Road immediately north of the creek where there currently exist a somewhat
marginal mix of uses including two vacant restaurants.
The open s~~ce characteristics that distinguish this concept incl:ude creation of
parkways along Jackson and Second Street NE, .~treetscape improvements along
Blake Road that would be more green and less urban, a realigned interior street and
reconfigured park adj acent to the south side ofMi~ehaha Creek, and various trails
connecting to the regional trails.
Public transit would not specifically be a part of this concept plan other than the
regional trail and the creation of a regional greenway along th~ rail corridor that
would also function as a commuter trail.
OPTION 3
This concept was shaped by an optimistic office market view that if a big "splash"
occurs on th~ .SuperValu site it would create ripples throughout the study area. A
constant in all three concepts, the SuperValu site is again 'redeveloped as office in
this concept. The Alliant Tech site is redeveloped as industrial (or office) within its
current site, eliminating t~e need for parking north of Second Street NE and opening
that land up for residential redevelopment. All of the remaining parcels east of
Alliant between Second Street NE and the rail corridor would eventually be
redeveloped as office under this scenario. The primary study area would be wholly
redeveloped with office uses, and the entire site would be organized around a new
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 5-3
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internal system of circulation with limited access to Blake Road and Excelsior
Boulevard. The exception to office development within this area would be the
westernmost comer where the proximity of a transit station would create the
opportunity for small scale neighborhood commercial. The City-owned parc~l north
of the SuperValu site would also be developed as a small office site, as would the
site north of the creek along the west side of Blake Road.
This concept addresses open space primarily through streetscape improvements
and the creation of a parkways at Jackson and Second Street NE. It also creates a
small amount of open space at the south side of Minnehaha Creek providing public
access, and establishes various trail links to the regional trail throughout the
neighborhood.
In this concept the rail corridor would become a regional public transit corridor,
either BRT or LRT, and commuter trails would share the corridor as well.
FINAL LAND USE CONCEPT PLAN
Through workshops with Hopkins Zoning and Planning, two public meetings, and
input from City staff, the initial concept land use options were refined into a single
preferred Land Use Concept Plan that combined many of the most desirable features
of each. Following is a brief description of how the plan addresses several key
issues.
.
DEVELOPMENT/REDEVELOPMENT
The SuperValu North Annex site will eventually be redeveloped as office, a view
that was consistently reflected in each of the preliminary concept options. The
Alliant Tech site immediately to its east will continue to be an industrial site, possibly
incorporating office development, and it will be contained on the site south of Second
Street NE. The land north of Second Street NE that was formerly used as parking
for Alliant Tech will become medium density residential, as will the industrial site
immediately to the west of this parcel, north of Second Street NE and west of
Monroe. The site north of Minnehaha Creek on the west side of Blake Road would
become a mixed-use redevelopment site that takes better advantage of its proximity .
to the creek, while at the same time opening up an opportunity for the public to make
a better connection with the creek. East of the Alliant Tech site and south of the rail
corridor, within the pnmary study area, all of the land will ultimately be redeveloped
to include a mix of uses that take better advantage of the many opportunities presented
in this changing area. Various scenarios for redevelopment of the primary study
area are explored later in this document.
.
OPEN SPACE/PUBLIC REALM
The City-owned parcel north of Second Street NEand adjacent to TH 169 would
become a more developed regional trailhead that the City could continue to use for
its snow storage needs. City-owned land north of Lake Street that is currently used
for storm ponding would be cleaned up and an amenity created that connects with
the south side of the wetland and Minnehaha Creek. A trail would be created
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EAST HOPKINS LAND USE
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Page 5-4
around the north side of the wetland/creek and would extend westward along the
south side of TH 7 to connect with the regional trail to the west. The Southwest
Transit Corridor would become a regional greenway with various 'connections to the
neighborhood. Jackson and Second Street NE Streets would become parkways
and Blake Road and Excelsior Boulevard would see streetscape improveme~ts added,
to create an identity for the neighborhood and strengthen its connections to important
activity centers beyond the immediate study area.
TRANSIT IMPLICATIONS
The Southwest Transit Corridor would become either a BRT or LRT corridor and
there would ultimately be a transit station within the primary study area, probably at
Blake Road. The corridor would continue to be shared with a regional trail within
what the plan identifies as a regional greenway.
This plan would become a guide for exploration of redevelopment opportunities
within the primary study area and would serve as a constant reminder of the broader
forces at work in the area.
EAST HOPKINS LAND USE
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Page 5-5
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Redevelopment Concept
A wide range of outside influences creates an equally wide range of redevelopment
possibilities for the primary study area. Depending on the City's intent, these
possibilities might range from doing very little other than improving City property
and circulation all the way up to a more aggressive approach that combines parcels
and redevelops very large areas. While the final picture will almost certainly lie
somewhere in between, these extremes marked a good starting point for the creation
of preliminary redevelopment concepts.
.
Several alternatives were explored and several different areas within the primary
study area were examined in detail. As various ideas were tested and alternative
concepts brought before the City, the concepts and ideas were refined. Eventually
two concepts emerged for redevelopment of the main body of the primary study,
area-the triangle bounded by the rail corridor, Blake Road and Excelsior Boulevard.
The concepts presented each of the extremes mentioned above, the "Redevelop"
concept of making major changes to the whole area, and the "Facelift" concept of
improving circulation and public areas and leaving redevelopment to the private
sector. At the same time as these concepts were evolving, so too were various
pictures of what might happen in the rest of the primary study area north of the rail
corridor.
With freight traffic likely to continue for the foreseeable future and the possibility
of an LRT line being located in the northern part of the rail corridor, it was determined
that, while relationships exist between the two sides of the tracks, what ultimately
happens on either side isn't completely dependent on what happens on the other.
What happens on the north side of the tracks really depends more on how transit
evolves within the rail corridor and what eventually happens on the SuperValu site
than it does on what happens within the triangle. And redevelopment within the
triangle relates more to Excelsior Boulevard and general market trends than it does
to development north of the tracks. With that in mind, two preliminary concepts
emerged for the area south of the tracks, and each was tested with the three different
redevelopment scenarios on the north side of the tracks.
NORTH OF THE TRACKS
.
Constant in both of the redevelopment concepts, the redevelopment potential of
three separate areas within the primary study area north of the tracks was examined.
Each site was studied with regard to its potential relationship to a future transit
stop, and since there will most likely be only one stop within the primary study
area, there was validity in looking at the implications of each of three potential
station locations.
EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
Office redevelopment of the SuperValu North Annex site
Of the tlrree redevelopment scenarios north of the rail corridor, the SuperValu North
Annex site is the least dependent on a future LRT line, it's potential being strong
regardless. This site was looked at as an office complex, primarily to explore site
plan alternatives that create enough mass without creating a sea of parking.
Redevelopment of this site also must have a strong TH 169 presence and a strong
orientation toward Excelsior Blvd., without turning it's back on the residential
neighborhood across Second Street NE. The type of signature development that
the City wants to see here must also have an attractive campus that relates strongly
to the natural amenity of the regional trail and any storm ponding that will need to
be created. Such a concentration of jobs would potentially be a large supporter of
public transit, so this concept looked at a transit stop toward this end of the primary
study area, near the intersection of Jackson and Excelsior Boulevard.
If a transit stop were to locate instead at the east end of the site, on the west side of
Blake Road, market forces might eventually push redevelopment of the adjacent
parcels. These redeveloped parcels would likely include a mix of uses that include
small neighborhood commercial, as well as possibly jobs and probably housing,
which is the land use most supportive of public transit.
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EAST HOPKINS LAND USE
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Page 6-2
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Redevelopment associated with a transit slalion west of Blake Rd. Includes a mix of uses
that can be phased In over time.
A third potential location for a transit station is across Blake Road on the east side of
the street. If this were to happen, the market might eventually push the industrial
use out of this piece of land and open it up for a larger scale redevelopment that
would have not only a strong orientation to public transit, but would also have a very
strong relationship with Minnehaha Creek. Again commercial and a mix of housing
densities were included on this site.
.
.
Redevelopment associated with a transit station east of Blake Rd.
includes a mix of uses with a strong relationship to Minnehaha Creek.
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EAST HOPKINS LAND USE
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Hopkins, Minnesota
Page 6-3
CONCEPY 1 - I'FACELIFY"
T,his redevelopment concept reorganizes the circulation pattern within the triangle,
preserving buildings for the most part while creating ,an understandable network of
interior streets. The east end would continue to be commercial and one building
would be removed to create a common parking court. The two existing strip malls
would be reconfigured to face this parking court, and their Blake Road ~nd Excelsior
Boulevard frontages would become pedestrian-oriented front doors, capitalizing on
the newly improved Excelsior Boulevard streetscape and the green space of Blake
School across the street. The two big industrial uses would remain, each anchoring
a new "pod" of office and industrial organized around its own parking court. Out at
Excelsior Boulevard, each of these "pods" wo~ld ~ave ne~ small office buildings
oriented toward Excelsior Boulevard where footprints of buildings are currently,
creating the opportunity to phase spot redevelopment into the new pattern. The far
west end would be a small commercial pad, taking advantage of additional right-of-
way created by the reconstruction of Excelsior Boulevard. An interior drainage
way, located in land that is today low and often wet, would create an open space
amenity that provides a pedestrian linkage through the site. Curb cuts along Blake
Road and Excelsior Boulevard would be reduced to a few points that would be
intersections with the new interior streets, cleaning up what is presently a very
disorganized, messy, and confusing pattern of development.
The advantage to a redevelopment strategy such as this is that it's incremental and
could therefore begin immediately. Land acquisition would be minimal, but the City
would need to get several property owners to collaborate on shared parking
arrangements, reconfiguring of buildings, and easements for new streets. The major
question is, would such an investment by the City be enough incentive for property
owners to invest in their properties, or enough incentive to cause redevelopment to
happen? Is it a wise investment to remove a viable business and building to create
a surface parking lot? And does this' even go far enough, given the condition of
many of the properties within the triangle.
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EAST HOPKINS LAND USE
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Page 6-4
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CONCEPT 2
I'REDEVELOP"
.
This is the more aggressive concept previously mentioned and it represents a maj or
initiative that seeks to create enough critical mass and momentum to make the
project work. Everything within the triangle is redeveloped and an entirely new
pattern of mixed use development is created. Commercial development again
occupies the busy intersection and most visible frontage at Blake Road and Excelsior
Boulevard. These would be buildings with pedestrian front doors along the streets
and vehicular front doors oriented toward parking on the interior of the blocks.
Further west along Excelsior Boulevard there would be small office buildings
oriented toward Excelsior Boulevard with their parking located on the interior of
the blocks again. The far west end of the site would again get a small pad of
commercial with its parking located behind. And on the interior of the triangle, along
the greenway/rail corridor, would be high density residential that would presumably
support both the transit and the new neighborhood commercial. The entire site is
linked by an interior parkway and drainage network, creating an open space amenity
for workers, shoppers, and residents alike.
While this concept was well received, its obvious drawback is economics. This
might be a great picture of what the future East Hopkins should look like, but the
financial re,alities of making something like this happen are daunting at best. There
are many different landowners that would have to be relocated and parcels that
would have to be assembled and prepared for construction before a developer would
even look at this area. And the market study that was prepared as part of the overall
study doesn't indicate the market potential is particularly strong here at the present,
with the possible exception ofresidential development.
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REVISED. REDEV~LOPME,cNT CONCEPT
'Prom the beginning of the study it was clear that a long-term redevelopment plan
would lie somewhere between doing nothing and complete redevelopment. With
additional input from the City and key stakeholders and more detailed study of the'
financial implications associated with redevelopment concept alternatives, a revised
redevelopment concept was created. It was clear that doing nothing, or even the
idea of a "facelift" were not ideas that enjoyed any support, and that wholesale
redevelopment would be desirable if realistic implementation strategies could be
attached to a fmal plan. The feeling is that East Hopkins is a high visibility area at
the community's edge, a key entry. It will one day likely be home to a significant
population of workers and will possibly be a station stop on a regional transit system.
To do anything less than planning for the long-range redevelopment of this area
would be doing the community a disservice. What had to be created was a plan
similar to Concept 2, but more grounded in reality and assembled in such a way that
it could be incrementally phased.
.
While the Revised Redevelopment Concept is similar to the earlier Concept 2, its
various pieces fit more closely into the present day,pattern of land ownership. The
interior network of streets includes north-south streets at Pierce and Tyler ,Streets,
making it possible to develop pieces of the overall project on one side of the street or
the other as parcels become available or developers show interest. The east-west
interior parkway similarly bisects the site and makes it possible for businesses such
as Edco to remain indefinitely without significantly upsetting the long term vision
of the overall development pattern. Open space is distributed evenly throughout,
as is storm water treatment in an effort to spread out the amenities and make each
component as feasible as the overall development.
Mixed use at the eastern end, or block, would include commercial on the ground
floor with a pedestrian orientation toward Blake Road and Excelsior Boulevard and
vehicular orientation toward an interior network of streets and parking areas. Some
high d~nsity residential would be located on the interior streets. A central block
would be high density residential again, but could be phased between the north and
south halves depending on Edco's long-term plans. The western block would be
primarily office, with the exception of one small commercial pad at the western tip.
This is based on the assumption that eventually the SuperValu site is going to develop
and that influx. of office space will create a market "splash" of sorts, creating need
for more office space in the proximity of the big office concentration. The overall
increase in amount of residential is a direct reflection of more in-depth market study,
the conclusion being that a certain amount of residential density is needed to fmancially
drive this project. It also supports regional goals of providing transit ridership and
increasing density within the 494-694 loop.
.
North of the tracks this plan illustrates a transit station with "kiss-n-ride" and mixed
use including small transit-oriented commercial development on the west side of
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Page 6-7
Blake Road. If this were to happen, it's reasonable to assume that the uses in this
area, with the exception of Ed co, would eventually be forced out by market pressures.
Again, the plan took a~ incremental approach and looked at how the Edco site could
independently redevelop at such a time as this business decides it might want to
relocate, and eventually more residential of a character similar to new development
north of Second Street NE would be created.
This Redevelopment Plan is no less grand in its vision of East Hopkins than earlier
concepts, yet it is more realistic in that it can be done incrementally. As pieces begin
to fall in place, momentum builds and subsequent projects become easier to make
happen. It won't happen overnight, and some things like the LRT ,might never
happen. But it is realistic to assume that a development pattern such as this can
happen regardless of future transit development, regardless of significant office
development on the SuperValu site, simply because of the other amenities that East
Hopkins has to offer.
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EAST HOPKINS LAND USE
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Page 6-8
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Implementation/Next Steps
BARRIERS TO REDEVELOPMENT
In broad terms, the Concept Plan seeks to define the form and a path for
redevelopment in the study area. To understand the strategies for implementing the
plan, the barriers to redevelopment must be identified. These barriefs represent the
factors that impede the private and public investments envisioned by this Plan.
Efforts to implement this Plan should focus on removing these barriers to
redevelopment.
LACK OF ECONOMIC INCENTIVE
Current businesses appear to have a successful operating environment in the existing
setting. This success provides little incentive for redevelopment; therefore, it is
unlikely that a significantly improved setting would generate enough new revenues
to support the improvement costs.
.
CURRENT LAYOUT
In some circumstances, taking an incremental approach to redevelopment in which
projects can occur on a parcel-by-parcel basis is possible. However, the configuration
of parcels and uses in the Study Area limits the opportunities for an incremental
approach. Edco controls the middle group of parcels, and the redevelopment
potential of this site is linked to the long-term plans of Edco to operate at this
location. Parcels along Excelsior Boulevard between Edco and Blake Road are
linked together for redevelopment purposes because it would be difficult to provide
improved access, parking or site design without clustering these parcels. A housing
development (as proposed in the plan) could not fit in this location without a complete
redesign of the site. Other locations in the Study area offer slightly better prospects
for smaller, incremental changes, but other factors may limit the ability to undertake
such projects.
.
COST OF REDEVELOPMENT
Redevelopment faces costs not present with comparable development on vacant
land. For example, the cost of land acquisition is higher. This statement does not
mean that the land itself is more expensive; instead, it reflects the reality that the
cost of preparing sites for redevelopment includes both land and buildings. Also,
redevelopment often requires some form of compensation for the relocation of
existing businesses. Thi~ compensation may appear in the price of the land or by
direct payments to the property owner. Finally, redevelopment may also require
the demolition and removal of existing buildings.
EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
These additional costs often present economic barriers to redevelopment because
the revenue potential from the resale or lease of a developed project cannot cover
the development expense. A simple example illustrates this situation. The
redevelopment site on the northwest comer of Blake Road and Excelsior Boulevard
consists of six parcels. Assuming that this property could be acquired (with
relocation) for 170% of the estimated market value, the site assembly cost would
equal $17.35 per square foot. Demolition and site clearance would mean additional
expenses. The proposed development for the Study area cannot support this level
of investment in initial site expense.
NEED FOR GREATER DENSITY
It is unlikely that redevelopment will result in a substitution of like uses because
the costs of redevelopment make such options impractical. Redevelopment requires
the acquisition of multiple parcels, the demolition of existing structures and the
construction of new internal infrastructure. Keeping the same form of development
would not produce enough revenue capacity. Additional density, however, would
add to the private and public revenue capacity from redevelopment. This additional
capacity creates the resources needed to finance redevelopment. ~
The redevelopment site at Blake and Excelsior helps to illustrate the implications
of changing density and land use. The table below estimates the net land cost
assuming acquisition of the site at 1 70% of current estimated market value, current
property tax laws and use ofTIF for 25 years. The value of the annual stream of
TIF revenues is discounted to a current (present) value using an interest rate of 8%.
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Sample redevelopment scenario at Blake
Road and Excelsior Boulevard.
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Commercial Owned Rental Owned Rental Owned Rental
Development Ratio/Density 300/0 6 6 15 15 30 30
Development Capacity (SF) 132,483 61 61 152 152 304 304
New EMV/SF 65 250,000 250,000 200,000 200,000 160,000 160,000
New EMV 8,611,420 15,207,000 15,207,000 30,414,000 30,414,000 48,662,400 48,662,400
New Tax Ca pacity 171,478 152,070 273,726 304,140 547,452 486,624 875,923
Lost Base Value (55,987) (55,987) (55,987) (55,987) (55,987) (55,987) (55,987)
Captured Value 11 5,491 96,083 217,739 248,153 491,465 430,637 819,936
Tax Rate 12 70/0 127% 12 7% 1270/0 1270/0 127% 1270/0
Annual Tax Increment 146,674 122,025 276,529 315,154 624,161 546,909 1,041,319
PV of Cash Flow 1,565,713 ',302,594 2,951,880 3,364,202 6,662,774 5,838,131 11,115,847
25
8.000/0
Net Land Cost 6,095,507 6,358,626 4,709,340 4,297 ,018 998,446 1,823,089 -3,454,627
Net Cost Per SF 13.80 14.40 1 0.66 9.73 226 4.13 -7.82
EAST HOPKINS LAND USE .
AND MARKET STUDY
Hopkins, Minnesota
Page 7.2
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With low density (both commercial and housing), the net land cost remains too
high for redevelopment. The Plan calls for additional housing to increase the density
of development at this location.
This table shows how tax laws influence the financial feasibility of redevelopment.
At a density of 15 units per acre, both owned and rental housing created the same
amount of estimated market value. The rental housing option, however, translates
into more taxable value, more TIP capacity and lower net land costs. This difference
is due to the statutory rates used to convert estimated market value into tax capacity
(taxable) value. Under current laws, rental housing creates more taxable property
valuation and, therefore, more public funding capacity. The negative number for
net land cost under the rental housing option at 30 units/acre indicates that this
form of development provides more TIF funding capacity than needed to pay all
estimated acquisition costs.
.
LACK OF CATALYSTS
Redevelopment is successful when public and private parties work together to
undertake change and create a sustainable setting for new development. The Study
area, though, lacks the short-term catalyst necessary to spark that change and put
the Plan into action. The planned roadway improvements enhance the setting, but
do not create a significant impetus for change. Potential sources of redevelopment
catalysts are, however, on the horizon. Changes that could become a trigger for
redevelopment in the Study area include:
Redevelopment of the old SuperValu site.
Enhanced transit service and the construction of a transit station or hub in
the area.
· A future decision by Edco to relocate.
Each of these factors enhances the Study Area's attractiveness to private investment
sources.
IMPLEMENTATION STRATEGIES
As stated earlier, implementation of some redevelopment plans involves a series of
incremental actions focused around one or more initial projects that jump start the
process of reshaping the physical and economic environment of an area. Again, the
Study area is not well suited to this approach because the area consists of a series of
redevelopment sites rather than individual parcel-oriented projects. There is no
clear-cut project to initiate redevelopment. Instead, the implementation strategy
for this plan will focus on removing the barriers to redevelopment and laying the
ground work needed to capture opportunities when they occur.
.
ADOPT LAND USE CONTROLS
Adopting this plan and making related modifications to the zoning ordinance are
important steps in preparing for redevelopment. These land use controls lay the
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
Page 7-3
foundation for the land use pattern illustr~ted in this plan. 'Through the
Comprehensive Plan and the zoning ordinance, the City is able to prevent new land
uses that are inconsistent with redevelopment objectives. Without appropriate land
use controls, the City faces the risk of small, new development projects that add
further impediments to the redevelopment objectives for the Stud)' area.
Since redevelopment effort~ are likely to occur over a long period of time, it is
suggested that the City consider an overlay ordinance approach for key portions of
the study area. An overlay zone could be established for properties immediately
north of Excelsior Boulevard and south of Second Street NE that allows the current
uses to remain in place but prescribes another zoning and use classification should
properties discontinue their present usage patterns. Such an approach would preserve
existing usage rights but establish a pattern for eventual redevelopment.
WORK WITH Eoco
This plan does not advocate the removal of Edco from the Study area. Over time,
this manufacturing use will become increasingly out of place in this location. The
ideal solution would be to coordinate the relocation of Edco to a new location in
Hopkins in conjunction with a specific plan to redevelop this site. This approach
keeps employment and tax base in Hopkins and facilitates the redevelopment
objectives for the Study area.
Timing becomes an important element in this strategy. Edco could decide to leave'
the area prior to redevelopment, which would mean the city would either need to
acquire the property, or allow another manufacturing user to occ~py the facility.
, Past experience suggests that a new user will complicate future redevelopment
initiatives for the site, but acquiring the site creates financial issues for the city.
These issues include: '
using city reserves for interim funding.
acquiring the property through a contract for deed or similar transaction.
using lease purchase financing to acquire the property.
placing the property in a tax increment financing district and issuing bonds
to finance acquisition.
When borrowing for land acquisition, the fmancial issue becomes revenue support
for the debt. The long-term finance plan will involve a combination of city support
(TIP or abatement) and the sale of land to a developer. Revenues from a
redevelopment project will support the debt, but interim revenue support will be
needed between acquisition and redevelopment.
Initial land acquisition may not involve the entire site. Current property tax records
show Edco Products as the owner of 11 parcels in the Study area. The City should
negotiate the right of first refusal for the acquisition of these parcels. The potential
to assemble the site in smaller pieces would require less financial commitment and
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EAST HOPKINS LAND USE
AND MARKET STUDY
Hopkins, Minnesota
Page 7-4
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would also prevent the redevelopment of pieces of this site in a manner not consistent
with the plan. a
FACILITATE SUPERV ALU REDEVELOPMENT
The redevelopment of the SuperValu site is an important and on-going objective of
the city. This plan e~courages the City to view redevelopment options for the '
SuperValu site because new activity here would provide a significant catalyst for
redevelopment in the Study area. In planning for redevelopment of the SuperValu
site several questions should be asked to explore linkages with the Study Area:
What additional development may occur?
· Do these opportunities fit in the Study Area?
· What actions can the City take to channel this catalyst into the Study Area?
Does the redevelopment of the SuperValu site provide financial resources
for initiatives in the Study Area?
The market research conducted for the Plan suggests that the SuperValu site will
promote new office opportunities in the Study Area. Other forms of spin-off
development will depend on the nature of redevelopment at SuperValu
.
GUIDE TRANSIT PLANNING
Excelsior Boulevard and the adjacent rail corridor are likely routes for enhanced
mass transit in the southwest portion of the Twin Cities. The next phase of transit
planning is likely to examine the potential location of transit stations in more detail.
This planning must be coordinated with the redevelopment objectives of East
Hopkins as well as the balance of the community. Implications of enhanced transit
for the Study Area include:
Access to enhanced transit supports residential redevelopment in the Study
area.
Enhanced transit would improve the potential for reverse commuting and
support employment uses at the SuperValu site and in the Study area.
The design and location of a ,transit station may be an asset or a liability for
the Study Area. A well designed facility complements the objectives for
the Study Area, but a large park and ride lot conflicts with the Plan.
.
PLAN FOR PUBLIC PARTICIPATION
The plan for redevelopment of the Study Area cannot materialize without public
financial participation. This participation is needed to assemble the sites and reduce
the land costs to a point at which development is financially feasible. Under current
State Law, tax increment financing (TIP) provides the most funding capacity. The
City of Hopkins has made extensive and effective use of TIF. This experience
eliminates the need for this Plan to provide an overview of TIF. Instead,
implementation strategies focus on specific steps to prepare for the use ofTIF.
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minnesota
Pa&~ 7-5
The use ofT~ relies on the ability to meet the statutory criteria for establishing a
district. For the Study area, the single most important criteria is the presence of
structurally substandard buildings. These buildings form the basis for establishing
both redevelopment and renewal and renovation types ofTW districts. An assessment
of the Study Area building stock was beyond the scope of the planning process;
therefore, a preliminary assessment is an initial implementation task. The objective
of the preliminary assessment would be to provide an informed basis for evaluating
the potential for establishing a TIP district:
· Which buildings appear to fit the structurally substandard criteria?
· 'How does the location of these buildings match the layout of potential
redevelopment sites?
What potential TIF district configurations are possible?
A complete analysis (sufficient to meet statutory requirements) seems premature at
this stage in the process because redevelopment projects and the need for a TIP
district do not appear imminent. Building conditions could change over time and
negate the fmdings of earlier building analysis. Nevertheless, planning for future
use ofTIF is important for several reasons. First, a lack of structurally substandard
buildings would show that TIF is not a viable tool for the IStudy Area. However,
this planning work could point to statutory changes that would allow TIP to be used
to implement the plan. Acting in advance of redevelopment would' allow for the
time to seek necessary legislative action. In addition, identifying barriers to the use
ofTlF allows the City to explore other funding options such as tax abatement. This
proactive approach provides the opportunity to explore the potential for County
and School District participation in an abatement program.
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EAST HOPKINS LAND USE
AN D MARKET STU DY
Hopkins, Minneso,ta
Page 7-6
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Blake Road
Streetscape
Concept
City of
Hopkins;
Minnesota
April 2003
prepared by
Hoisington Koegler
Group, fne.
123 North 3rd Street
Suite 1 00
Minneapolis, MN 55401
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INTRODUCTION
In 2001, Hoisington Koegler Group (HKGi) was retained to explore land use
alternatives associated with redevelopment in an area of Hopkins adj acent to Blake
Road and Excelsior Boulevard. In conjunction with this Land Use Study, the City of
Hopkins asked HKGi to explore a range of possibilities for upgrading the character
of Blake Road as it passes along the eastern edge of the City and the Study Area.
The City has recently undertaken efforts to improve streetscapes on several of its
more important streets, and the feeling is that Blake Road certainly qualifies as an
important street within the City's hierarchy. As development pressures mount in the
area and system-wide traffic volumes continue to climb, the pressure for Blake
Road to accommodate a variety of uses increases. As the volume of use increases,
so too does the opportunity for this street to present an attractive face of the
community along this, its eastern edge.
.
The area of Blake Road affected by this study lies ~etween the intersection with
Highway 7 on the north and Excelsior Boulevard on the south. The purpose of this
study is two-fold: It is intended to determine what enhancements can be accomplished
within a limited amount of physical space and within a limited budget. Additionally,
it is intended to determine what, if anything, are those most directly involved with
Blake Road--business and property owners--interested in seeing happen alongthe
corridor, and to what degree are these stakeholders willing to participate financially.
ISSUES AND OPPORTUNITIES
.
The biggest constraint to potential improvements along Blake Road is the amount of
available right-of-way within which improvements can be undertaken. There is
seldom an abundance of excess right-of-way beyond the back of the curb and there
are frequently clear zones and other restrictions limiting what can be done in this
zone, particularly when the roadway in question is a state or county highway, as is
the case with Blake Road (Hennepin County 20). Other factors limiting what can
be done include existing land uses, frequency of curb cuts (driveways,) traffic volumes,
and availability of financial resources. Nonetheless, opportunities do exist within
this corridor to create amenities that are at once unique to Blake Road and recognizable
as being part of the broader community of Hopkins. Part of the objective of this
study is to determine how best to configure the corridor in order to maximize its
potential as a mover of people in all forms, and to enhance the identity of this part of
Hopkins by seizing on the unique qualities that it can offer the community.
BLAKE RoAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 1
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Early in the process, the City conducted an informal survey of property owners
along Blake Road, and several items of concern emerged. Some specific items the
study is intended to address include:
Aesthetics - As an important street within the Hopkins street network and one at the
community's edge where it also acts as a gateway of sorts, Blake Road is not very
attractive in its present form.
Accommodation of pedestrian traffic - With a number of higher density housing
units in the area, the proximity of public transit and pedestrian des~ations at either
end, (eg. Knollwood Mall and its surrounding commercial), the corridor serves as an
important pedestrian link in the neighborhood and its pedestrian features are currently
grossly underdeveloped. This observation is reinforced by the existence of impromptu
"cow pat4s" where sidewalks don't exist, yet people still walk along the corridor.
Improving access to Minnehaha Creek - Passing beneath Blake Road virtually
unnoticed is one of the most important waterways in the Metropolitan region,
Minnehaha Creek. While grades preclude any sort of direct connection of a public
nature at Blake, making a visual connection would help remind those travelling along
Blake that the creek is there.
Continued accommodation of vehicular traffic - While improving access for
other forms of transportation is important, the primary function of Blake Road will
continue to be moving cars and trucks through the corridor safely and efficiently.
An Impromptu path created by
pedestrians along Blake Road
underscores the need for pedestrian
amenities.
BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 2
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EXISTING CONDITIONS
BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 3
PRELIMINARY CONCEPTS
.
Preliminary streetscape concepts recognized the fact that Blake Road is not the
same along its length, and that opportunities and limitations would vary depending on
where concepts were being tested within the corridor. Study of the corridor suggested
that the Blake Road corridor could be broken into three different street types. The
segment on the far north end is where the greatest traffic levels exist, where the
busiest commercial exists, and where the highest volume of pedestrian traffic exists.
This segment, therefore, was identified as a "Main Street" segment of the study
area. Just south of thi~ segment, traffic volu111es (both vehicular and pedestrian)
drop slightly, but the scale and density of development, as well as the amount of
available right-of-way is still distinctly urban; this segment was identified as an
"Urban" streetscape segment. South of the Urban segment, the street takes on a
more suburban feel, with greater distances between building frontages and more
green spaces. This segment was identified as a "Boulevard" segment. At the far ,
south end of the study area, density of development and volumes and patterns of
traffic again suggest a much busier street life. This area ~as designated as a second
"Main Street" segment.
.
A unique level of improvement is applied to each unique streetscape type, but the
pallette of materials and patterns maintains a consistency throughout the length of
the study area. The resulting street corridor should feel united along its length, yet
respond to the varying levels of life and activity within different zones of the corridor.
A description of the elements included in each street type follows.
,A. "MAIN STREET" STREETSCAPE ELEMENTS
BOULEVARD - (6'-8', turf with shrubs and perennials)
STREET TREES - (tight spacing, in 1/2 tree grates at back of boulevard)
SIDEWALK - (8', with banding of concrete pavers and/or colored concrete,
match elsewhere in Hopkins)
· APRONS - (concrete to match sidewalks)
· STREET LIGHTS - (16'-18' tall, tight spacing, match ornamental street
lights elsewhere in Hopkins)
BENCHES & TRASH RECEPTACLES - (match those found ,elsewhere
in Hopkins)
BRICK PIERS & ORNAMENTAL METAL FENCE - (separate public
from private, match elsewhere in Hopkins)
FLOWER PLANTINGS - (in boulevard and in space between public walk
and building)
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BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 4
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B. "URBAN" STREETSCAPE ELEMENTS
. · BOULEVARD - (none)
· STREET TREES - (tight spacing, in tree grates)
SIDEWALK - (10', with banding of concrete pavers and/or colored concrete,
match elsewhere in Hopkins)
· APRONS - (concrete to match sidewalks)
STREET LIGHTS - (16'-18' tall, dense spacing, match ornamental street
lights elsewhere in Hopkins)
BENCHES & TRASH RECEPTACLES - (match those found elsewhere
in Hopkins)
· ORNAMENTAL METAL FENCE - (at back of walk, match elsewhere in
Hopkins)
· FLOWER PLANTINGS - (in ~pace between public walk and building)
c. '''BOULEVARD STREETSCAPE ELEMENTS
BOULEVARD - (5', with shrubs and perennials)
STREET TREES - (wider spacing, in boulevard)
SIDEWALK - (6', with banding of concrete pavers andlor colored concrete,
. match elsewhere in Hopkins)
APRONS - (concrete to match sidewalks)
STREET LIGHTS - (16'-18' tall, wider spacing, match ornamental street
lights elsewhere in Hopkins)
BENCHES & TRASH RECEPTACLES - (none)
· BRICK PIERS & ORNAMENTAL METAL FENCE - (none)
FLOWER PLANTINGS - (in boulevard and in any space between walk
and building or parking areas)
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BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Min'nesota
Page 5
STREETSCAPE ELEMENTS
.
While a number of different events, such as the creek overlooks or plaza intersections
where important streets meet, punctuate travel through the corridor, the basic building
blocks or elements that make up the streetscape remain the same. A pallette of 1
materials such as common streetlights, benches, street trees etc...will help unify the
corridor, while the patterns in which these elements are applied to each of the street
types within the area will help distinguish the different segments of Blake Road. For
example, the same streetlight would be used in each of the three street types, but
spacing within the "Main Street" segment :would be much more dense to reflect a
more dense pattern of usage/development. This strategy also relates to the speed at
which the various components will be experienced. If a car is travelling more
quickly near the middle of the study area, streetscape improvements in that segment
should be directed at someone moving much faster than the pedestrians in the "Main
Street" segme~ts. So too should fmancial resources be more concentrated in the
areas in which usage is concentrated.
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FINAL STREETSCAPE CONCEPT/STRATEGIES
.
The final concept design takes advantage of opportunities where they exist and
attempts to create opportunities where they do not currently exist. If, for example,
there is room outside the right-of-way, the concept pushes the sidewalk further from
the street and creates more of a planted buffer between pedestrians and vehicles.
Where sufficient room doesn't exist within the right-of-way, the concept suggests
planting easements on private property. Materials are consistent throughout and
sidewalks and decorative street lighting are located throughout, yet different features
like special paving at intersections, carefully placed flower gardens, and overlooks
at the creeks punctuate a trip along Blake and differentiate between various points
BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 6
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FINAL CONCEPT
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EETUOHTB . ell SPACINO
SPAClNG. IN HAt.F TREE ORATES
MD
DEWALK, ICORING l1M!S OUT WITH
SPACING
ROsa DRIVEWAY APRONS AND CROSSWAU<S
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BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 7
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along the street. The result would be a Blake Road corridor much different than it
exists today. The street would project an identity that is at once unique and
recognizable as being part of Hopkins.
(OST ESTIMATE
While these numbers are at best very preliminary, it is important that a basic
understanding of the costs associated with streetscape improvments be understood.
The following is a cost estimate based on proj ects of similar scope recently constructed.
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BLAKE ROAD
STREETSCAPE CONCEPT
Hopkins, Minnesota
Page 8