Memo - Redevelopment - Honda Mainstreet properties
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Planning & Econon1ic
Developn1ent
MEMORANDUM
TO: Honorable Mayor Maxwell and Hopkins City Council Members
FROM: Kersten Elverum, HOU~ Development Coordinator
DATE: April 21,2004
SUBJECT: Rcdevelopmcnt of Hopkins Honda Mainstreet Prope11ies
. Attac hed is a memo [rom The Comerstone Group detailing the status of their
plans for the redevelopment of the ()OO & 700 Blocks of Mainstreet
Representatives will be at the April 29, 2004, worksession to discuss the project
in greater detail. They will share various site plans which they used to evaluate
options for the property. The goal is to come to an agreement regarding the
overall concept ror the site,
Also attached is a draft of the development design standards of the POO
Agreement that describes the project as it has been proposed. The guidelines will
he revised, if needed, after discussion at the worksession. 11 is anticipated that the
PUO Agreement will be considered by the City Council at the June 1,2004, City
Council meeting. The Cornerstone Group will then have approximately a year to
refine the project and enter into a redevelopment agreement with the City.
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. HOPKINS PHASE II
MAINSTREET, HOPKINS, MINNESOTA
SITE ALTERNA TIVES
The Cornerstone Group reviewed various alternatives for the site, per the request
llf the City Staff and City Council. The Cornerstone Group investigated adding
additional retail/office on Mainstreet and office space on Slh Avenue. Both
alternatives were problematic for these reasons:
1. The office/retail option in lieu of townhomes on Mainstreet at 71h
A venue and on Slh A venue caused a gap in the financing in excess of
$1.8 million.
'! The Cornerstone Group is still in lease negotiations with several
tenants for Marketplace lofts. Based on our experience and on market
information, it will be difficult to lease additional retail and office
space in this location. At the present time, the market is close to full
and overbuilding ,vill hurt not only Marketplace lofts, but other
. tenants and business owners along Mainstreet.
3. Site constraints including irregular shape and parking requirements.
We have researched other locations in the metropolitan area that have a mix of
housing and retail along a central business corridor. We will be presenting these
images at our next meeting and we are confident that having a mix will not
prevent future commercial development at the east end of Mainstreet.
CURRENT PROPOSAL
We are continuing to work on the budget and the number and type of units
being proposed for the site. Currently, the project contemplates the following
unit types and sizes:
. 12 townhnme units approximately 1650 square feet in size
. 32 lofts rZlnging in size from approximately 725-1500 square feet.
Parking is accommodated on site by underground parking at the condominium
building, garages within the individual townhomes and surface parking for
. guests. The proposed unit count currently has greenspace will be incorporated
in the interior of the site through the design of yards for the cluster townhomes,
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. as well as at the edges of the site. A proposed urban gateway garden (hardscape,
benches, water feature, etc...) could be designed within the triangular piece on
the current schematic design at 6th and Mainstreet.
The project also includes approximately 6,000- 6,500 square feet of retail space on
Mainstreet between 71h and 8th Avenue with lofts above.
Initial pricing from Weis Builders has indicated that this current scheme has a
budget shortfall. The Cornerstone Group and its team are working on the overi1ll
site layout to increase the housing density, The difficulty of the site
configuration presents some challengcs. We are optimistic that a reasonable
increase in density will be enough to offset the increase in construction costs,
DEVELOPMENT ST A TUS
The Cornerstone Group and The Luther Company havc been working together
to resolve title and survey issucs. Both groups are completing the due diligence
as required in their purchase agreement and staying on schedule.
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. EXHIBIT C
DEVELOPMENT DESIGN STANDARDS
1. Intent. The purpose of this overlay zone IS to create a Planned Unit Development
permitting the development, construction and operation of mixed use, multi-story
residential and commercial facilities complying with the permitted uses and design
standards stated herein. The use of the overlay PUD zoning is to allow for more Oexib1c
design standards while creating a higher quality project. The PUD overlay zone requires
that the Development demonstrate a higher quality of architectural standards and site
design. The underlying B-3 zoning \vill remain in effect and any future use of property
within the PUD overlay zone must be consistent and in conformity with the underlying
B-3 zoning and the pu~ overlay zoning,
II. Permitted Uses. The pe1l11ittcd uses in the pu~ overlay zone are limited to retail
and commercial uses consistent with the underlying B-3 zoning and owner-occupied
housing consisting 0 f l11ulti- fami! y/condomini Ul11 housing or townbomes.
III. Setbacks. {INSERT SETBACK REQUIREMENTS OR INCORPORATE B-
3 SETBACK REQUIREMENTS BY REFERENCE.l
. IV. Design Standards.
Building Design and Construction:
a. Retail or commercial uses sl1a]] constitute not less than 6,500 square feet
in total within the pu~ overlay zone between ih Avenue and 8111 Avenue
and shall have frontage on Mainstreet.
b. In the area west of Seventh Avenue, nOl1h of Mainstrcet and east of the
midpoint of the block, owner occupied multi-family housing shall be
located above the retail/commercial space, with total building height of
110t less than three stories and not more than four stories,
c. In the area north of Mainstreet located between Sixth A venue and Seventh
A venue, owner-occupied housing consisting of townhomes or retail or
office use or a combination of these uses, the design of which shall bc
subject to approval by the Hopkins City Council as part of a conditional
lIse permit or site plan approval for redevclopmel1t of all of t11C Real
Property. All structures shall have a height of at least two stories above
grade, but not more than three stories.
d. In the area cast of Eighth Avenue, north of Mainstreet and west of the
. midpo1nt of the block, owner-occupied housing consisting of townholl1es
or retail or office use or a combination of those uses, the design of which
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. shall be subject to approval by the Hopkins City Council as part of a
conditional use pe1111it or site plan approval for redevelopment of all of the
Real Propelty. All structures s],all have a height of at least two stories
above grade, but not lllore than three stories.
e. Structured parking (preferably underground) shall be provided for the
multi-family residential use in compliance with the parking requirements
of the City's Code of Ordinances. Adequate on-site parking shall also be
provided for all retail, commercial and office uses in compliance with the
parking requirements of the City's Code of Ordinances.
f All development and construction must meet the design guidelines stated
in the Downtown Overlay District Ordinance, Section 556 of the Hopkins
City Code.
U' The City may also require exterior finish, facade or other design elements,
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111 addition to those described 111 the above Design Standards, as
detellllined at the time of redevelopment of the Real Propetty as a mixed
use Development.
V. Prohibited Uses. The following uses shall be prohibited within the PUD overlay
zone, as other primary or accessory uses, whether or not the sallle arc permitted by the
. underlying B 3 zoning: automobile sales or leasing, automobile repair or body shop, adult
cslabli shment, adult motion picture theater, adult novelty business or bookstore,
amusement device establishment, cabinet, electrical, heating, plumbing, upholstery or air
conditioning sales or service shop, fix-it shop, liquor store, open sales lot, pawn shop,
drive-thru restaurant, warehouse, taxi te11111na], tattoo parlor, CUlTency exchange or
tobacco shop. If any of the words and phrases in the preceding sentence are defined in
the Hopkins Code of Ordinances, sllch words and phrases, when used in this paragraph,
shall have the same meanings stated in the Hopkins Code of Ordinances.
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