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VII.1. Request for Proposals – 102 10th Avenue South; ElverumFebruary 15, 2022 Council Report 2022-015 REQUEST FOR PROPOSALS – 102 10TH AVENUE NORTH Proposed Action Staff recommends adoption of the following motion: Move to authorize staff to prepare a Request for Proposals for the disposition of 102 10th Avenue North (Lot #800). With this motion, the Request for Proposals (RFP) will be prepared and shared with the City Council prior to it being issued. Overview The City of Hopkins owns the property at 102 10th Avenue North, currently used as a municipal parking lot. It serves as free parking for employees and customers of downtown Hopkins and recently as a temporary park and ride location for Metro Transit. The lot is underutilized for parking and at the January 7, 2022, goal setting session of the Hopkins City Council, support was shown for soliciting proposals for a development on this site. There has been interest shown in this site from both residential and commercial developers in the past and developing the site is in conformance with the goals of growing the City’s tax base, supporting transit investment, and better utilization of land. The discussion at the February 15, 2022, City Council meeting will focus on discussing the specifics of the RFP so that staff can draft a clear set of expectations for the preferred development. Primary Issues to Consider • What are the desired goals for the development? • What are the specific requirements for development? • What is the proposed process for soliciting proposals and selecting the preferred developer? ___________________________ Kersten Elverum, Director of Planning & Development Financial Impact: $__0__________Budgeted: Y/N ____ Source: ________________ Related Documents (CIP, ERP, etc.): _______________________________________ Notes: _______________________________________________________________ City Council Report 2022-015 Page 2 Analysis of the Issues: • What are the preferred goals for the development? The following are the suggested goals for future development: • Maximize tax base • Support the economy of Downtown Hopkins • Support ridership on the SW LRT line • Create a welcoming gateway to Hopkins from the Lake Minnetonka LRT Regional Trail • Provide employment and/or owner-occupied housing opportunities • Provide appropriate transition from the historic downtown to the Avenues neighborhood Additional design goals for the development could include: • Provide structured automobile parking in order to minimize surface parking • Support numerous multi-modal opportunities including biking, walking, electric vehicles, transit and car sharing • Provide green space for both public and private use • Attractive architecture that compliments the surrounding neighborhood and if a commercial use, establishes the design aesthetic for future commercial uses in the area • Building and site design that incorporates many sustainable elements • Eliminate at least one access point into the site from a main road For a proposed housing development: • Maximizing the number of housing units within a 2.5 story limit • Providing ownership opportunities For a commercial development proposal: • Businesses that would bring living wage jobs • Compatibility with the surrounding single family homes • Office use vs. retail • Preference for existing businesses • What are the specific requirements for development? City Council Report 2022-015 Page 3 Because the site is owned by the City of Hopkins, through the Hopkins Housing and Redevelopment Authority, the selection of the developer and the type of project to be built can be decided based on community goals. City staff is interested in getting feedback on specific outcomes the City Council would like to achieve including the following: Affordability of housing. The City could require that housing units, all or some, are affordable to households at a certain percent of area median income. Particular market(s) type of housing. The City could indicate a preference for a certain market type of housing including senior, first-time homebuyers, family or owner- occupied. Equity. The City could require the developer to address how the proposed development would be equitable, how it would serve to provide opportunities to the full community and/or first-generation home buyers, or how the developer would create opportunities for minority and/or women-owned businesses. Sustainability. Specific features, like solar installation or EV charging stations, could be specified or the City could require that the developer obtain an environmental certification such as LEED or WELL for the building(s). Access. The RFP could dictate where access to the site would be located and which access points would need to be removed. Building Height. The draft zoning code would call for a minimum height of one story for a commercial use, maximum of 2.5 stories and a minimum of two stories for a residential development with a maximum of 2.5 stories. The City could be more specific of the desired height through the RFP. Materials. The zoning code will have some parameters around materials for commercial and residential structures. If the City Council has expectations for materials that go beyond the zoning requirements, that should be stated in the RFP. Setbacks. The City could be specific on the setback requirements for both residential and commercial uses. Establishing value. The City Council/HRA can set a minimum sale price based on estimated market value or elect to ask proposers to state the purchase price they are willing to offer. If the City Council/HRA desires to establish a minimum sale price, the value could be determined through a formal land appraisal or rely on the Hennepin County Assessor for a more informal estimation of value. Another option would be to state upfront that the City is willing to accept less than market value, if needed, for an affordable housing development and that the purchase price would be negotiated based on need. City Council Report 2022-015 Page 4 • What is the proposed process for soliciting proposals and selecting the preferred developer? If the City Council directs staff to prepare a RFP, staff will spend the next 30 days preparing the RFP using existing templates and information from the February 15, 2022, City Council discussion. It will be brought back for City Council/HRA approval before being issued to the development community. The RFP will include background, City goals for the site, specific requirements and/or preferred elements and submittal information requested including the following: The proposals will be accepted for 60 days following the issuance of the RFP and presented to the City Council/HRA after the 60 day periods ends. The City Council/HRA will review the proposals and may decide to interview some or all of the proposing developers. It will be at the sole discretion of the City Council/HRA to elect to enter into a development agreement. Alternatives: The City Council has the following options regarding this issue: • Elect to direct staff to prepare a Request for Proposals for Lot #800 • Elect not to direct staff to prepare a Request for Proposals for Lot #800 at this time • Elect to modify the process to dispose of the property in another manner such as listing with a Real Estate Broker or issuance of a Request for Qualifications or a request for interest.