Special Meeting - 325 Blake Road ProjectHOPKINS CITY COUNCIL
SPECIAL MEETING AGENDA
Thursday, June 17, 2021
5:30 pm
CITY COUNCIL CHAMBERS
1010 1st Street South
I. CALL TO ORDER
II. NEW BUSINESS
1. 325 Blake Road Restoration and Development; Elverum
III. ADJOURN
Meeting: Joint Meeting
Meeting date: 6/17/2021
Agenda Item #: 1
Item type: Discussion
Title:
325 Blake Road Restoration and Redevelopment
Prepared by:
Name: Michael Hayman and Kersten Elverum
Phone: 952.641.4510 / 952.548.6340
mhaymanman@minnehahacreek.org / kelverum@hopkinsmn.com
Purpose: At the June 17, 2021 meeting of the Minnehaha Creek Watershed District Board of Managers and Hopkins City
Council, the joint group will conduct interviews of the developer finalists for the 325 Blake Road redevelopment project.
Following interviews, the joint Board of Managers and City Council will deliberate on the merits of each development
team with a goal of selecting a master developer partner.
Summary: For nearly a decade, the Minnehaha Creek Watershed District (MCWD) has been focusing on the most
degraded section of Minnehaha Creek – between West 34th Street and Meadowbrook Lake in St. Louis Park and Hopkins
– to implement a comprehensive corridor restoration that focuses on reducing pollutant loads, mitigating flashy
hydrology, reconnecting the riparian corridor, and restoring the physical character of the stream channel.
A former industrial site along 1,000 feet of Minnehaha Creek, the property at 325 Blake Road was identified as a key
piece of the Minnehaha Creek Greenway, and as such, the MCWD made a strategic acquisition of the property in 2011
to facilitate its regional scale effort. This effort identified opportunities on the site for area wide stormwater
improvement, ecological restoration of the Minnehaha Creek riparian zone and corridor linkage with
upstream/downstream restoration projects. Identified as the 325 Blake Road Restoration and Redevelopment Project
(Project), it is envisioned that, through strategic partnership with the City of Hopkins (City), a development partner will
be selected to deliver an integrated project on the portion of the site not utilized for watershed restoration.
The City is interested in a redevelopment of the site into a transit-supportive, mixed-income neighborhood that provides
numerous benefits to the surrounding neighborhood and the larger community. The redevelopment effort has been
contemplated since 2008 when the City commissioned the Blake Road Corridor Small Area Plan which began to identify
the vision for the redeveloped site.
Throughout early 2020, the MCWD and City (together as the “Partners”) developed a shared vision for the potential
redevelopment of 325 Blake Road (attachment 1). In August 2020, the Partners approved a cooperative agreement to
guide the coordinated planning, improvements and redevelopment of the site, and establish a clear partnership
framework to successfully deliver on the Partners’ shared vision for the site. The agreement also provides the
foundation for the exploration of redevelopment for the Project and outlines a clear framework for engagement of the
development community.
As such, in January 2021 the Partners solicited interest in redevelopment of the 325 Blake Road site through a request
for letters of interest. Following receipt of the letters of interest, the Partners reviewed all responses and developed a
recommended select list of five developers for advancement to developer roundtable meetings and the request for
proposal (RFP) process. This select list was developed based on identified experience in delivering complex sites through
partnerships.
In March 2021, following roundtable meetings with each of the developer teams, the Partners issued the RFP for
development of a portion of the 325 Blake Road site. Following an approximate eight week window for the
development of proposals, on May 5, 2021, the Partners received proposals from all five development firms – Alatus,
Greco, Schaefer Richardson, Sherman Associates and Wellington Management. Upon receipt of proposals, a staff
coordination team reviewed all of the information and developed a suite of preliminary questions for each of the
development teams to further inform the proposal process.
On May 20, 2021 the Review Committee – a joint committee comprised of three MCWD Board managers and two
Hopkins City Council members – reviewed the preliminary information and discussed the merits of each proposal in
advance of the preliminary interview phase. On May 26-27, 2021 the Review Committee conducted interviews of the
five development teams with a goal of further understanding each of the developer’s vision for the site and how the
development teams would approach partnering to deliver the Partners’ joint vision set forth.
Following interviews, the Review Committee considered the merits of each proposal and voted unanimously to advance
three firms as finalists – Alatus, Sherman Associates and Wellington Management – for joint Board of Managers and City
Council consideration. The proposals from each of the finalists is attached, including a development matrix highlighting
the site plans and built components of each of the proposals (attachments 2 and 3 respectively).
On June 9, 2021 the Partners participated in a series of site tours hosted by each of the developers. The sites were
chosen by the development teams as a tangible opportunity to get a feel for the type of development each delivers, and
also provided an opportunity for each team to introduce themselves to the joint MCWD Board and City Council and
describe how they would approach the 325 Blake Road site.
The final step in the developer reengagement process is the joint meeting of the MCWD Board of Managers and Hopkins
City Council to conduct interviews of the developer finalists for the 325 Blake Road Restoration and Redevelopment
project. Following interviews, the joint Board of Managers and City Council will deliberate on the merits of each
development team with a goal of selecting a master developer partner.
The Partner’s Development Vision for 325 Blake Road can be read on the City’s website, along with the development
proposals from each of the finalists – Alatus, Sherman Associates and Wellington Management. To view this information
and other associated content for the 325 Blake Road site, visit the City’s website here:
https://www.hopkinsmn.com/1084/325-Blake-Road-Developer-Selection.
Attachments:
1. 325 Blake Road Developer Matrix
325 Blake Road Developer Matrix
Details of Housing, Total Units &Unit Affordable units Commercial Property Total
Project Team Site Rendering Project Components Commercial and Parking Units per acre Mix & levels SF & Proposed Uses Purchase Development Costs
Alatus
Housing and commercial. Five total buildings plus
townhomes. A 14-story tower, five story, four story
and three story buildings and approximately three
story townhomes. Includes market rate and affordable
rental.
Total of 775 housing units in five buildings
plus townhomes. Includes 23,500 square
feet of commercial. 1,271 total parking
stalls, with 1,148 stalls in parking
structures, 20 surface lot spaces, and
attached garages for the townhome units.
Total of 775 housing units
which equates to
approximately 64.6 units
per gross acre (on an
assumed 12 acres).
486 market rate units
240 affordable units
49 market rate
townhomes
Exploring senior coop
opportunity.
240 affordable units (31% of
total units) at affordable
range of 30%-80% AMI.
Includes one building of
stand-alone affordable units
and one mixed income
building.
23,500 sf of commercial
described as locally
sourced restaurateurs,
brewery and distillery
opportunities with indoor
and outdoor experiences.
Noted they would offer
some affordable
commercial spacing
leasing options for the
relocation of existing
Hopkins retail having to
make decisions about their
upcoming leasehold
interests.
Proposed
purchase price of
$11,250,000
(~$14,500/unit)
$239,536,566 total
development cost;
$309,000 per unit
Sherman Associates
Housing and commercial. Five buildings ranging from
four to six stories, designated as mixed-use with
market rate and affordable rental, active senior rental,
senior co-op and commercial.
Total of 575 market rate, affordable and
senior units in five buildings, including
senior co-op. Includes 28,250 square feet
of commercial, and 889 parking stalls,
including 120 surface lot spaces.
Total of 575 housing units
which equates to
approximately 47.9 units
per gross acre (on an
assumed 12 acres).
400 market rate units
120 affordable units
49 market rate
ownership (senior co-
op)
6 affordable ownership
(senior co-op)
126 total affordable units
(21.9% of total rental units
and 10.9% of ownership
units). Affordable rental
units at affordable range of
50% -60% AMI are in a stand-
alone building. Affordable
senior coop ownership units
at 80% AMI.
28,250 sf of commercial
identified as restaurant,
food kiosk, community
commercial (potential
grocer, coffee, brewery)
Proposed
purchase price of
$8,625,000 for
approximately 11-
12 acres
($15,000/unit)
$171,991,622 total
development cost;
$299,000 per unit
Wellington
Management
Housing, commercial and office. Three buildings
ranging from six to seven stories designated as mixed-
used residential with affordable, retail and office, and
townhomes. Central green/blue space to be retained
by MCWD.
Total of 588 market rate and affordable
units in three buildings and townhomes.
Includes 46,900 square feet
commercial/office/daycare. 689 parking
stalls using surface and ramp. Proposes
77 stalls of "street" parking.
Total of 588 housing units
which equates to
approximately 49.0 units
per gross acre (on an
assumed 12 acres).
486 market rate units
55 affordable units
39 market rate
townhomes
8 affordable townhomes
Proposes to partner
with Homes Within
Reach on 6-10
ownership townhomes
using land trust model.
55 affordable units (9.8% of
total units) at affordable
range of 50%-80% AMI in
multi-family and 8
townhomes (17% of total)
at 60%-80% AMI. Affordable
units are integrated with
the market rate units.
46,900 sf of commercial
identified as retail (17,450
sf) and office/daycare
(29,450 sf). Described as
potential destination
brewery/restaurant/event
space. 2-story daycare
w/rooftop play area.
Ground-floor small, local
retail at SW corner. Second-
floor commercial along
Blake Rd for small office
users (e.g., dental,
outpatient, financial
services). States that small
scale retail space will be
attainable for a diverse
range of entrepreneurs,
but there is not a specific
commitment to affordable
retail space.
Proposed
purchase price of
$9,000,000 for
approximately
11.44 acres
($15,306/unit)
$154,726,701 total
development cost;
$263,000 per unit
325 Blake Road Developer Matrix
Project Team
Alatus
Sherman Associates
Wellington
Management
Estimated Requested Approach to Working
Employment Public Assistance Description of Public Benefits Stormwater and Open Space Elements Transit Oriented Development with MCWD, City and Community
Estimated future
taxable market value:
$205,430,740
Estimated City portion
of taxes: $1,477,749
Unspecified
13.2% of total
development costs
identified as public as
TIF and grants.
Assumes award of Low
Income Housing Tax
Credits (LIHTC) for the
affordable units,
which is a very
competitive program.
Described as TOD with a goal of 15-minute city within
the site. Focus on bicycle and pedestrians with public
ped and bike corridors. Commercial spaces to activate
areas. Includes connections to the Cedar Lake LRT
Regional Trail.
Proposal focused on 11-12 acre built area. Describes
every plaza, park, courtyard, or boulevard being
connected and tied to the existing and revitalized creek
pond retention areas. Six acres dedicated to
stormwater and greenspace with ideas for activation.
Details in page 14 of proposal
Described as being:
-environmentally and fiscally sustainable,
-spectrums of living affordability,
-progressive design concepts,
-inclusive natural resources for all
Unspecified approach, but describes a desire
for collaborative effort with MCWD design
team. Desire to celebrate water via fountains,
plazas, channels, streams, and ponds woven
through the development.
Described as minimized block sizes with the
primary goal of creating walkability and a more
pedestrian and bikeable scale. The street
pattern provides mobility for all modes of
transportation with a greater focus on the
pedestrian. Proposes bike sharing options
including electrically assisted cargo bikes.
Details in page 15 of proposal and the
response to the request for clarifications.
Alatus will bring on a development
engagement consultant to lead community
engagement efforts. Notes the importance of
this effort. The proposal indicates that the
three parties will work together to establish a
malleable engagement and entitlement
timeline. Development team would work with
MCWD and the City to conceptualize site plan
design efforts leading up to the engagement
process. Would look to the City and MCWD to
be involved in site plan creation and the
community engagement sessions.
Estimated future
taxable market value:
$150,218,750
Estimated City portion
of taxes: $1,114,835
18 permanent
jobs in the
building
communities, 40-
50 food hall jobs,
6 seasonal café
jobs, plus
recreational jobs
based around
kiosk.
11.2% of total
development costs
identified as public in
the form of TIF and
grants. Assumes
award of Low Income
Housing Tax Credits
(LIHTC) for affordable
units, which is a very
competitive program.
Connections to Cedar Lake Regional Trail,
public/private plaza with food hall and community
commercial on SW corner of site. Sport rental kiosk to
encourage use of Minnehaha Creek. Seasonal
restaurant, water resources, pocket parks and trails.
Describe streetscaping improvements on Blake and
Lake Street, public/private plaza on SW corner,
connections to Cedar Lake Trail, trails and sidewalks,
pocket parks.
Details on page 88 of proposal.
Cites affordable units, 18 permanent jobs in the
building communities, 40-50 food hall jobs, 6 seasonal
café jobs, plus recreational jobs based around kiosk.
Improvements to the public realm such as trail
connections and access to water. $2,155,000 in
annual tax base.
Described as collaboration with MCWD and
City on green, disconnected/decentralized
stormwater infrastructure. Provides a list of
BMPs. Active and passive learning such as a
signage and hands-on learning stations.
Collaborate to tie development into regional
system and include interaction through fishing,
boating, bird watching, dining/socializing by
water.
Described as capitalizing on adjacency to multi-
modal transit resources. Encourages a
connection to the future Blake Road LRT
Station through a public/private use plaza on
the SW corner of the site. Connections are
made to the Cedar Lake Trail and new paths
are integrated throughout the site.
Cites experience using collaborative
approaches, welcomes participation in the
charrette and can host additional listening
sessions with community. No particular
approach suggested to collaboration beyond a
desire to work together.
Estimated future
taxable market value:
$154,852,500
Estimated City portion
of taxes: $1,290,787
Estimated 150-
200 permanent
jobs across
commercial and
office.
6.8% of total
development costs
identified as public
funds in the form of
TIF and grants.
Project named “The Blue on Green.” Mixed-use
residential, retail, and office space at SW corner across
from LRT station. Potential destination brewery at this
corner to further activate. Street has forward-facing
commercial and residential for active pedestrian
experience.
5 acres retained for “dynamic” stormwater treatment
area, including “Central Blue” public area providing
access to the creek. Pocket parks and urban plazas
interspersed connected by trails and sidewalks. Public
art located at nodes throughout. Bike repair and
parking to encourage cycling. Includes connections to
the Cedar Lake LRT Regional Trail.
Details on page 32 of proposal. Focuses on
walkability, preserving neighborhood diversity,
environmental/water quality, and neighborhood-
oriented retail. Details construction and permanent
job creation (1,000 / 150-200) and tax base ($139
million).
Stormwater concept is based around the
“Central Blue”, which also serves as the main
community gathering space within the
development while functioning as stormwater
treatment in addition to the regional
stormwater and greenway components.
Described as including the highest density and
greatest mix of uses at the southwest corner
immediately across from the light rail station
to contribute to a vibrant station area.
Additional high-density residential with a
ground-floor daycare will extend north along
Blake Road to enhance the vitality and
livability of the Blake Road corridor. Trails and
walkways will cross the site from the Cedar
Lake Trail up to Lake Street along the Creek
and out to Blake Road to create stronger
connections and promote walkability.
Describes using the design charrette to share
concept designs, establish shared goals for an
integrated water-based approach, and
establish lines of communication. Proposes
two follow-up meetings to agree on a common
concept plan, then commence community
engagement.
Activation and Public Realm Improvements
Estimated Market
Value/City Taxes
325 Blake Road Developer Matrix
Project Team
Alatus
Sherman Associates
Wellington
Management
Sustainability Community Development Similar Phasing Financial Team
Components Engagement Team Projects Plan Capacity Experience
Unspecified on sustainability,
LEED and other goals.
References MCWD’s work as
integral to its sustainability
goals, but does not include
information about developed
areas meeting sustainability
goals.
Use of an outside
consultant firm to lead
engagement. Three to
six month process with
four to eight
significantly attended
sessions. Describes the
importance of engaging
with the community in a
multitude of ways.
Alatus and
Humphreys
Architects. Will
build out remainder
of team as project
proceeds (civil, LA,
structural, etc.)
The Carlyle and
Grant Park
Condominiums
Approximately one
year for planning and
entitlements.
Constructed in three
phases, beginning in
August 2022 and
ending in Q4 of 2025.
Unspecified
beyond project
development
costs, but letter
of interest
detailed Alatus'
capacity.
Team partnered
on referenced
projects (Carlyle
and Grant Park
Condos)
Describes commitment to
“above market standard”
sustainable design. Anticipate
use of solar gardens.
References to the
sustainability of their past
projects, but lacks details of
specific commitments for this
site.
Community
engagement plan to be
arrived at with MCWD
and City. Indicated that
they can host additional
listening sessions with
community.
Sherman Associates
as
developer/owner;
Kaas Wilson as
architect; Anderson
Companies as
general contractor;
Solution Blue as
water conservation
specialist
Market rate and
senior living
projects listed as
relevant
experience that
Kaas and
Sherman have
worked on
Design, due diligence
June 2021 – June
2022. Phase I
construction June
2022- December
2023. Phase II
construction August
2023-December 2024.
Stormwater facilities
constructed on
MCWD’s timeline,
affordable building
timed based on LIHTC
and bonds.
Provided letter of
intent, company
profiles, select
project profiles
and financial
information
indicating a
capacity to
deliver.
Provided
company profiles
and project
experiences
working together
and individually
Describes many ideas, but it is
unclear which are included.
Ideas include: Rainwater
reuse for irrigation, rooftop
solar, EV charging stations,
car sharing hubs, potential
geothermal, pollinator
gardens, bike parking and
amenities, educational
elements, meet Green
Communities standards,
enroll in Energy Design
Assistance, maximize
construction material
recycling
Community
engagement section
describes the firm’s
experience and ongoing
ownership interest, but
does not describe an
approach for this
project. States they look
forward to working with
MCWD to engage the
community early and
often to ensure the
project reflects the
desires of those most
impacted by it.
Wellington
Management,
Collage Architects
and Kimley Horn.
Homes Within
Reach would
partner on 6-10
ownership
townhomes using
land trust model.
Wellington and
Collage: Bassett
Creek Valley
(North
Minneapolis),
Westgate Station
(St Paul), Lake &
Hiawatha (South
Minneapolis).
Allows for
approximately 1 year
of planning.
Constructed in three
phases over five
years, beginning in Q2
2022 and ending in
Q3 2026. Letter of
intent suggests
phased land
acquisition.
Provided letter of
intent, company
profiles, select
project profiles
and financial
information
indicating a
capacity to
deliver.
Wellington and
Collage: Bassett
Creek Valley
(North
Minneapolis),
Westgate Station
(St Paul), Lake &
Hiawatha (South
Minneapolis).