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Proposals for Lot 800; Elverum CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Kersten Elverum, Director of Planning & Development Date: June 14, 2022 Subject: Proposals for Lot 800 _____________________________________________________________________ PURPOSE The purpose of the discussion at the June 14, 2022, work session is to present the responses to the Request for Proposals issued for 102 10th Avenue North, also known as Lot 800. INFORMATION One proposal was received from William Stoddard, Stoddard Companies. The proposal describes a project consisting of up to ten market rate townhomes sold to individual buyers. The stated purchase price for the land is $60,000. Mr. Stoddard also outlined an option of increasing the purchase price to $160,000 if he were to receive tax increment financing. The proposal does not include a site plan or architectural renderings but provides an example of a similar development in Excelsior. The full proposal is attached for your review. Staff did have discussions with several developers who were interested in the site but consistently they indicated difficulty in making the finances work given our stated goals for the site. This is likely an indication that in order to realize affordable, homeownership the City would need to offer a financial incentive. FUTURE ACTION If the City Council is interested in pursuing the proposal from Stoddard Companies, staff would meet with the developer to begin to refine the concept that would be brought back to the City Council and Planning Commission at future meetings. Attachments: • Request for Proposals • Proposal from Stoddard Companies Planning & Development Request for Development Proposals Issued by the City of Hopkins/Hopkins Housing & Redevelopment Authority 102 10th Avenue North, Hopkins, MN Estimated RFP Schedule Request for Proposals Issued April 6, 2022 Proposal Deadline June 3, 2022 Proposal Review June 14, 2022 Proposer Interviews TBD Developer Selected TBD The City of Hopkins reserves the right to extend, modify or terminate the above schedule and/or process. PROPOSAL INFORMATION Complete proposals are due by 4 pm on June 3, 2022. Send proposals to: Kersten Elverum Director of Planning & Development City of Hopkins 1010 First Street South Hopkins, MN 55343 Questions regarding this RFP should be directed to: Kersten Elverum Jan Youngquist Director of Planning & Development Community Development Coordinator 952-548-6340 952-548-6343 kelverum@hopkinsmn.com jyoungquist@hopkinsmn.com OPPORTUNITY STATEMENT The City of Hopkins/Hopkins Housing and Redevelopment Authority (HRA) is soliciting proposals for development on the City-owned site currently referred to as Lot #800. Today it serves as a free parking lot for transit riders on Metro Transit and to support parking for Hopkins’ downtown. It is underutilized for this purpose and the City is interested in maximizing its use and value by facilitating private development on the site. DEVELOPMENT VISION The Hopkins HRA seeks an experienced and qualified developer to construct a transit- supportive development on a rare infill site adjacent to Hopkins historic downtown. The Hopkins HRA seeks proposals for development that would support the following City goals: • Grow the tax base • Provide employment and/or housing opportunities. Affordable homeownership proposals for households earning 60-80% of the area median income are strongly encouraged. • Support the economy of Downtown Hopkins • Support ridership on the Metro Green Line Extension • Create a welcoming gateway to Hopkins from the Lake Minnetonka LRT Regional Trail • Provide appropriate transition from the historic downtown to the Avenues neighborhood Ideally a successful team will meet the following design goals: • 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 • Include attractive architecture that compliments the surrounding neighborhood and if a commercial use, establishes the design aesthetic for future commercial uses in the area • Incorporate many sustainable elements into the building and site design • Eliminate at least one access point into the site from a main road For a proposed housing development, the HRA is interested in: • Maximizing the number of housing units within the 2.5 story/36 feet limit • Providing ownership opportunities For a commercial development proposal, the expectation would be: • Businesses that would bring living wage jobs • Compatibility in use and design with the surrounding single family homes • Maximum height of 2-stories/36 feet SITE AND BACKGROUND INFORMATION Property Description Lot #800 is located at the northwest corner of the intersection of 10th Avenue North and 1st Street North in Hopkins. The north property line is adjacent to the Lake Minnetonka LRT Regional Trail. Surrounding uses include single family homes on the north and west, and one- story commercial uses on the south and east. Today the site consists mostly of bituminous pavement with a small grass and tree-covered area on the north end where is abuts the Lake Minnetonka LRT Regional Trail. The property consists of three parcels totaling .69 acres or 30,328 square feet, and is owned by the City of Hopkins. The Hennepin County Property Identification Numbers for the three parcels are: • 2411722310095 • 2411722310094 • 2411722310002 The site is located on the northern edge of Hopkins historic downtown, known for its interesting mix of locally-owned businesses and restaurants. Downtown Hopkins features a wide variety of amenities including a seasonal farmer’s market, outdoor concerts, the Hopkins Center for the Arts, Hennepin County Library, Driskill’s grocery store, Hance Hardware, Center Drug, and numerous restaurants and bars, making downtown one of most walkable and convenient places to live and work in the metro area. Access, Connections & Transportation Access In an effort to improve the pedestrian and bike experience in and near the site, proposers should plan to eliminate a vehicle access; either off 1st Street North or 10th Avenue North. The west alley can be used as a secondary access to the site. Sidewalks Currently sidewalk exists on the east side of the property and must be replaced as part of development of the site. Regional Trail The site is adjacent to the Lake Minnetonka LRT Regional Trail, a popular recreational and commuter trail that hosts an estimated 640,000 annual visits. Traveling northwest, trail users travel through Minnetonka, Excelsior and Victoria. To the southeast, this multi-use regional trail connects trail users to a separated bikeway on the Artery at 8th Avenue, which connects to the Minnesota River Bluffs LRT Regional Trail going west and the Cedar Lake LRT Regional Trail to the east. METRO Green Line Extension The Downtown Hopkins LRT Station on the METRO Green Line is located within a 10-minute walk from the site. Enhanced connections via the Artery make the walk easy and enjoyable. The METRO Green Line Extension is a 14.5 mile extension of the METRO Green Line from Minneapolis to Eden Prairie. METRO Green Line Extension will provide a one-seat ride to downtown Minneapolis, the University of Minnesota, the State Capital and downtown St. Paul to the east, as well as major employment centers including the Opus Business Park, the United Health Optum campus and the Golden Triangle to the west. When completed, the Extension will be part of an integrated system of transit ways, including connections to the METRO Blue Line, which includes the MSP Airport and Mall of America, the proposed METRO Blue Line Extension, Northstar Commuter Rail Line and many major bus routes. It is anticipated that the METRO Green Line Extension will be operational in 2027. Bus Transit The site is conveniently located with 2 blocks of bus stops for Metro Transit routes 612 and 615. Route 612 travels between the Uptown Transit Center in Minneapolis, through St. Louis Park and Hopkins to the Opus Business Park in Minnetonka. Route 615 travels from the Excelsior & Grand development in St. Louis Park, through Hopkins, to Ridgedale Mall in Minnetonka. LAND USE Comprehensive Plan The site was identified as a possible redevelopment area in the 2040 Comprehensive Plan and guided as Downtown Center with a density of 20-100 dwelling units/acre. The Downtown Center future land use category calls for moderate density mixed use development designed to complement and enhance the existing development pattern and support the public investment in transit. Generally, the Downtown Center future land use category recommends development to be a mix of 25% commercial and 75% residential although different mix percentages will be considered. Zoning The subject property is currently zoned R-4, Medium High Density Multiple Family. However, the City of Hopkins is in the process of a comprehensive review and update of the City’s zoning regulations and it is anticipated that the zoning of this property will change. The working draft of the new zoning regulations assigns an RX-N, Residential Office Mix zoning classification; however, the draft zoning has yet to be finalized and approved by the City Council. If the preferred proposal applies for land use entitlements prior to the new code being adopted, the City will likely support the use of Planned Unit Development (PUD) zoning to achieve the goals identified for the site. The proposed RX-N zone is intended for locations along corridors and neighborhood edges where residential, office and limited commercial uses can mix comfortably in a walkable environment. Draft development standards are summarized in the table below. Draft RX-N Development Standards Category Standard Height 1-2.5 stories Front Setback 5’-15’ Side Setback 5’-10’ Rear Setback 10’-20’ Hard Surface Coverage 60%-70% Vehicle and Bicycle Parking • Surface allowed behind building but enclosed parking is preferred • Office - 1/400 square feet • Residential – Based on unit/bedroom count • Reduced parking standards may be considered for affordable housing • Bicycle Parking – 1.1/unit (residential) • Office – 1/4,000 square feet Environmental A Phase I Environmental Site Assessment (ESA) was prepared for the property in August 2019. The site was previously developed as single family homes, which were demolished in the mid- 1970’s. The site was paved for parking by 1984. The Phase I ESA revealed no evidence of recognized environmental conditions, historical recognized environmental conditions or controlled recognized conditions in connection with the property. Storm Water Management Development must meet the storm water management requirements of the city and the Nine Mile Creek Watershed District, the regulatory agency for storm water and erosion control permitting. Utility Connections An existing 8” sanitary sewer main and 6” watermain are located within 10th Avenue North. Storm sewer is located to the north and west of the site. 10th Avenue North is in the 5-year capital improvement plan for reconstruction and utility mainline capacity upgrades are possible at that time. CITY POLICIES FOR DEVELOPMENT Affordability The City is interested in creating more affordable housing opportunities within the City and increasing owner-occupied housing choices. Proposals for housing that include affordable ownership opportunities are strongly desired. Public Assistance It is the desire of the City of Hopkins to receive fair market value for the property and not provide a subsidy for development unless the project demonstrates clear, significant community benefits. Sustainability The intention is for the selected development to incorporate many sustainable elements so that it serves as a model for future development, with a focus on alternative and/or reduced energy use. Electric vehicle charging stations are expected. Building certification through Energy Star of similar program is desired. RFP SUBMISSION AND SELECTION PROCESS Proposal Content Proposal responses should demonstrate clearly and accurately the capabilities, knowledge, experience and capacity of the development team to meet the requirements of the RFP and proposed project. Respondents must submit three hard copies, and one digital file of their proposal containing the following information: • A cover page including the following information: o Developer/team’s name and mailing address o Name, mailing address, telephone number and email address of the primary contact person o Signature of authorized representative of responding developer or team • Letter of Intent to purchase the property including the offered amount. It is the expectation of the HRA to sell the property for fair market value. • Identification and qualifications of the development team including architect, engineering firm and contractor (if known). Please indicate any women or minority- owned companies involved with the project and the percent of the overall budget their work represents. • List of two or more development projects of similar nature or scale. • Brief narrative that describes the proposed project and how it meets or exceeds the city’s vision and development objectives. • Preliminary Site Plan • Conceptual building elevations and renderings to illustrate the proposed project • List of project components, stories, square footages, and building materials. If you are proposing a residential development include the unit mix, number of affordable units available at 30, 50, 60 & 80% AMI. • Estimated project construction cost • Project’s estimated economic benefits including total market value of development, BIPOC hiring plans, and overall employment potential • Project’s community benefits resulting from the project such as affordability, connections and support of surrounding uses, advancement of racial equity and inclusion, public spaces and amenities, landscaping and public art • List of environmentally-sustainable elements incorporated into the project • Projected timeline for land use approvals, purchase of site and construction of project • Developer’s current legal status: corporation, partnership, sole proprietor, etc. and supporting evidence of financial ability to complete project • Description of how you will interact with the community to assure your project addresses their needs and concerns • Any other information that is critical to the city’s ability to evaluate the proposal