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02-11-2020 Work Session HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS FEBRUARY 11, 2020 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, February 11, 2020 at 7:00 p.m. at the Hopkins Center for the Arts, 1111 Mainstreet, Hopkins. Mayor Gadd called the meeting to order with Council Members Brausen, Halverson, Hunke and Beck attending. Staff present included City Manager Mornson, Finance Director Bishop, Director of Planning and Development Elverum, Administrative Assistant Pearsall and Community Development Coordinator Youngquist. ARTSPACE ENGAGEMENT SHARE-BACK-SESSION Mayor Gadd commented that tonighYs agenda is a continuing discussion about Artspace with an opportunity to hear feedback and answer questions. In addition to City staff, Artspace, Juxtapostion Arts and BKV Architects representatives were present for the item. Director of Planning and Development Elverum introduced the item commenting that this was an opportunity to report back to the community on the engagement process and address frequently asked questions with time for public comment. Ms. Elverum discussed the Artspace project that would allow Hopkins to build on its identity as an arts community and provide support for creative businesses by offering employee housing and customers. Ms. Elverum discussed the current housing market pressure and the need for affordable housing. Ms. Elverum discussed the site identification process and reasons Lot 800 is a preferred site. Lot 800 has close proximity to downtown, the Hopkins Center for the Arts, the regional trail and future light rail transit. The underutilized city owned lot would not displace any businesses or residents and is currently not generating any tax revenue. The site would be consistent with the 2040 Comprehensive Plan and it is currently zoned for multi-family residential but staff is recommending a developer seek mixed-use zoning. Ms. Elverum discussed the parking concerns commenting that Artspace would have parking onsite, a parking study would be completed and staff would continue to review the Hopkins parking system. Ms. Elverum gave an overview of other sites considered. Artspace representatives gave an overview of the Artspace mission to create, foster and preserve affordable space for artists and arts organizations. Artspace gave an overview and showed images of Artspace properties around the country. Artspace has a commitment to the community engagement process and they discussed eligibility criteria to live in the space. Juxtaposition Arts representatives gave an overview of the goals, strategies, public engagement and highlighted the general input, ideas and concerns generated from the events. There were a lot of concerns regarding parking and traffic. City staff created a Frequently Asked Question document for additional information. The representatives gave an overview of the exercises, design idea results and overall themes resulting from the community engagement process. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS FEBRUARY 11, 2020 Representatives from the BKV Group discussed the site plan explaining that it is not a design concept but an example what the project could be. The BKV representative gave an overview of the site and potential spaces. Mayor Gadd asked for an explanation of the estimated land value for Lot 800. Ms. Elverum discussed the resources that staff used to determine the $800,000 land value. Council Member Brausen appreciated the information packet commenting that it woutd take some time to absorb all the information and that the work session was for information gathering, listening to questions and concerns not making decisions. Council Member Beck commented on the high density for the space and asked for additional information on Floor Area Ratio (F.A.R). Artspace representatives commented that it is not uncommon to put this density on the site size and discussed cost efficiencies in regard to the number of units. Mayor Gadd discussed the guidelines for the public comment process. Billee Kraut, 140 11t'' Avenue North, spoke about concerns of Iot size, density zoning, parking, payment for the land and rushing the project to complete the public financing application. Ms. Kraut prefers Artspace be in a different Hopkins location. Ms. Elverum commented that no terms for the land purchase have been negotiated. Ms. Elverum discussed the feasibility study commenting that none of the sites studied were available or viable so staff looked at city owned property as a possible site location. Ms. Elverum discussed the site zoning, development process and commented that staff constantly evaluates parking and restrictions throughout the City. Council Member Brausen asked about the Katherine Curren site or exploring other opportunities on the west end of Mainstreet. Ms. Elverum commented that staff has met with school district staff and the Hopkins School District is not interested in conversations about the Katherine Curren site at this time. Maggie Seedorf, 122 Oakwood Road, spoke about concerns of financial impact to the City and the project location. Ms. Seedorf asked about a financial analysis of the real estate. Ms. Elverum discussed the planning process and gave an explanation of a city's roll with redevelopment projects for the broader community benefit. There will be a presentation of the City's development and approval process at the March 4 City Council meeting. Mayor Gadd asked about Artspace developments of similar size. Artspace gave an overview of projects developed on smaller sites and would follow up with examples of similar density projects. Elizabeth Reynolds, 210 10'h Avenue North, spoke about concerns of multiple affordable housing projects within close proximity, significant pressure on City public services, parking, high cost of underground parking and use of city funding. Mayor Gadd commented no public financing has been promised for the project. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS FEBRUARY 11, 2020 Abby Seba, 134 9th Avenue North, spoke about concerns of F.A.R, land use zoning and project location. Ms. Elverum discussed the difference of high density and single family zoning and impact on the tax base. Paul Hearth, 114-11 th Avenue North, spoke about parking and neighborhood density concerns as the City changes and not creating affordable housing for a certain occupation. Artspace representatives commented on the diverse populations housed in Artspace projects. Ms. Elverum commented on the redevelopment process. Mayor Gadd commented that each year the City Council and City staff evaluate potential future redevelopment impacts on the City. Patrick Hanlon, 109-11th Avenue North, spoke about concerns of building size, land value, parking and the consideration for a scaled back project. Ms. Elverum commented that the concept review process is to acquire additional public feedback. Mindy Woods, 110-11th Avenue North, spoke about concerns of height, density, parking and taking away the single-family feel of the neighborhood. Ms. Woods commented that the project would be better suited in a different location. Butch Johnson, 140 11th Avenue North, spoke about the opportunity to collaborate with the Hopkins School District on the Katherine Curren site. Bill Beekman, 105-7th Avenue North, spoke in support of the project and close proximity to Mainstreet and public transportation. Rebecca Ulasich, 4128 Pepperwood Trail, Minnetonka, spoke in support of the Artspace project. Shawn Anderson, 923 Mainstreet, spoke about concerns of parking and opposes the location. Bruce Rowen, 9 Monroe Avenue South, spoke in favor of the Artspace project. Michael deJolsvay, 105-11th Avenue North, spoke about building permit concerns and asked about scaling back the project. Artspace commented that the cost per unit is significantly higher with a smaller project and the project would less likely be able to acquire tax credits and require more subsidies. Rick Pavelka, 146-11th Avenue North, commented that the project is not consistent with the Comprehensive Plan and on the cash flow and tax revenue benefit of single family lots. Greg Madsen, 209 11t'' Avenue North, spoke about concerns of the City debt and overlapping opportunities with Hopkins Center for the Arts. Mr. Madsen does not support the site or the project. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS FEBRUARY 11, 2020 Mayor Gadd thanked the public for attending and encouraged further participation in the engagement process. The City Council and City staff would continue to review all the questions and feedback. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Brausen, second by Hunke, the meeting was unanimously adjourned at 9:26 p.m. Respectfully Submitted, Debbie Vold ATTEST: r � �...�1 � J on Gadd, Mayor Amy Domeier, City Clerk