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CR 01-034 East End Hopkins Land Use & Market Analysis . . . .,,1 c>\ T Y 0 F ~ Council Report 2001-34 March 15,2001 HOPKINS EAST END HOPKINS LAND USE & MARKET ANALYSIS ProDosed Action Staff recommends adoption of the following motion: authorize staff to enter into a contract for the East End Hopkins Land Use & Market Analysis. as detailed in the scope of work dated March 12. 2001. conditioned on approval by the Metropolitan Council to participate in the cost of the study in the amount of $47.900. Overview In November, staff and a representative of Hoisington Koegler Group (HKG) met with the Council to discuss a proposal to undertake a study involving the following: . A land use and market analysis study for the area north of Excelsior Boulevard, east of Highway 169 to approximately Pierce Avenue . An examination of general aesthetic improvements for Blake Road between Excelsior Boulevard and Highway 7 Based on this discussion, staff was directed to work with HKG to prepare a contract for future Council approval. The scope of work that was agreed upon had acost of $20,650. Since this work session, staff and HKG have had a number of meetings with the Metropolitan Council concerning the various development activities that are taking place in East Hopkins, specifically the Medica project. As a result of these discussions, they have agreed to participate financially in the costs of undertaking a study, based on the following: . The project area is expanded . Smart growth concepts are incorporated in the study The scope of the study that is now being presented to the Council for consideration reflects a much more in-depth study than originally discussed. The cost of this study is $69,950. The Metropolitan Council would pay $47,950, and the City would be responsible for $22,000. Mark Koegler ofHKG will be present at the meeting to provide an overview of the proposed scope of work. Primary Issues To Consider . What is the of scope of work? . What is the timetable for completing the study? . What are the tasks to be completed by the City? SUDDortim! Documents . Scope of work from Hoisington Koegler Group bn . Jir{Kerrigan ~ Planning & Economic Development Director Financial Impact: $22.000 Nt A _ Budgeted: Y IN _ Source: ED Fund/TIF 2-11 Related Documents (CIP, ERP, etc.): Notes: . v CROl-34 Page 2 . Primary Issues to Consider . What is the scope of the work? The study will involve the project team of Hoisington Koegler Group, Bonz/REA, and Ehlers & Associates. Hoisington Koegler will be the lead consultant. Hoisington Koegler will work on the land use, streetscape and urban design portions of the study. The market study will be completed by Bonz/REA and the financing portion will be completed by Ehlers & Associates. After the initial work is completed there will be a series of work sessions and meetings with various groups for input. The end product of the project area study will be to develop a final redevelopment concept, and the end product of the Blake Road area study will be a concept for Blake Road improvements. The last step in the study will be for Hoisington Koegler Group to work with the City to define the responsibilities and procedure for implementation and to hold a community meeting to review the results. . What is the timetable for completing the study? The preliminary schedule indicates that the study will start in May and continue to December. May and June will involve the market review and background information to identify what exists. The first meeting with the Zoning and Planning Commission will be in July. The schedule can be . modified if it is determined that additional time will be needed. . What are the tasks to be completed by the City? The City staff will be involved in the Blake Road study. This involves working with the Planning Commission and Hoisington Koegler Group. There are several meetings that will be led by the City staff for the Blake Road study. It is estimated that working with the consultant on the Blake Road study, the staffwill contribute approximately 250 hours of time. . Creative Solutions for Land Planning and Design . March 12,2001 Hoisington Koegler Group Inc. III II (gO Mr. Jim Kerrigan Economic Development Director City of Hopkins 1010 First Street South Hopkins, MN 55343-9475 Re: East Hopkins Lai1d Use and Market Analysis Dear Mr. Kerrigan: The enclosed scope of work outlines a process for studying a section of eastern Hopkins generally bounded by Excelsior Boulevard, Blake Road, Second Street and Highway 169. For purposes of this analysis, the area has been defined into pr.imary and secondary study areas as shown on Exhibit 1. . The project area is the site of a number of ongoing changes. The improvement of Excelsior Boulevard, the development of the Medica campus, the sale of the Alliant Tech building, the new Parkside residential development, the identified need for redevelopment along portions of Excelsior Boulevard, the confluence of three regional trails, and the potential establishment of a busway passing through the area make this portion of Hopkins a candidate for application of Smart Growth principles. The objective of the project is to conduct an overall market analysis; to review current development trends and patterns; to improve connections between the area and other parts of Hopkins; to establish design standards; to examine potential future land use changes and to establish a framework for aesthetic improvements along Blake Road. Proiect Team Hoisington Koegler Group will serve as the lead consultant for the East End Study focusing on the land use, streets cape and urban design portions of the project. The approach includes a market study to be conducted by Bonz/REA. BonzlREA is a real estate and market consulting firm located in Boston, Massachusetts. Dick Paik from Bonz/REA is very familiar with the Twin Cities market as he is currently working with HKGi on two projects that are similar to the Hopkins redevelopment study. The study will place an emphasis on implementation. Accordingly, Ehlers and Associates will provide expertise in municipal finance, tax increment financing and implementation strategies. Work Program: 1.0 Identify what exists, understand what is desired... Through the work of this part of the process, the HKGi project team will gain an understanding of the forces influencing both the primary and secondary project areas and the elements of the community that will influence future development and redevelopment in the greater Excelsior Boulevard area. This stage of the work includes a tour of the project area with city staff. The HKGi team will review past development plans, studies, reports, zoning information or other infonnation that might be relevant to the site. . Abase map will be compiled from information provided by the City of Hopkins. Features of the project area that were not apparent from information provided by the City will be added to the base map after the tour and site investigations. 123 North Third Street, Suite 100, Minneapolis, MN 55401-1659 Ph (612) 338-0800 Fx (612) 338-6838 . The specific tasks related to this part of the work prograrp include: . 1.1 Assemble a preliminary base map of the project area from information provided by the City of Hopkins. 1.2 Review background information provided by the City. 1.3 Tour the project area with city staff to understand the physical influences on the project. 1.4 Investigate forces that might influence the development in the area, including man-made forces (traffic patterns, utilities, existing and planned developments, zoning and ordinances); community forces (history, elements of local culture, general safety concerns, relationship with other community features); market forces (conditions of the housing, and commercial uses); and <;lther influences (views, special features i.e. Minnehaha Creek). 1.5 Assess the project area in terms of its theme, image and identity, seeking opportunities to capitalize on elements that are meaningful to the community and noting areas that detract from a positive image. 1.6 Obtain information related to utilities and other infrastructure to determine constraints posed by those facilities (preliminary assessment). 1.7 Identify aspects of the base map that are incomplete and revise base map to meet actual conditions. 1.8 Work with Hopkins' building officials to identify structures that qualify as substandard under TIF consistent with State Statutes. 1.9 Present information at a meeting with staff. Deliverables: . base map of project area . summary of existing conditions and project influences 2.0 Market Review BonzJREA will assist the planning process by identifying the likely development opportunities as well as the area's key development limitations. This will entail the following tasks: CommunitvlEconomic Overview In identifying development opportunities, Bonz/REA will begin by first preparing an analysis of local economic trends, prevailing conditions, and outlooks. An understanding of this context provides the essential base-level understanding of the nature and volume of likely development opportunities. This analysis will focus on Hopkins' demographic trends and profiles, local economic base, the rate and character of local employment growth, economic assets and constraints, and potential economic niches. Sector-By-Sector Market Analyses . BonzJREA will conduct analyses of potential redevelopment opportunities for the subject area. This analysis will proceed sector by sector (residential, commercial, industrial, etc.), with additional attention to special niche opportunities. While specific analytical methods will vary as appropriate to potential types of development, market analyses for each potential sector will entail examinations of: 2 . . Market trade area definitions; . Customer profiles for types of land uses and tenants; . Relevant demographic and economic trends and conditions (e.g., shifting demographics, employment patterns, travel patterns, etc.) within the relevant trade areas; . Projected business patterns involving spending, sales, industry needs, development formats, etc. . Existing and planned competitive projects; . Impacts of infrastructure advantages and disadvantages, involving new telecommunications improvements, transportation improvements, etc. . Local, regional and national trends that will influence market dynamics; . Recent or planned developments, public improvements, or events that may influence market dynamics; . Areas of unrealized potential; and . Projected demand for new types of development. In the above tasks, BonzIREA will rely upon City data, published market reports, available appraisals, planning documents, and other reports, commercial data providers, and interviews with local sources including public officials, property managers, real estate brokers, developers, landowners, and other such sources, in addition to our own knowledge gained through past analyses and appraisals conducted in the area. BonzIREA's assessment of market opportunities will identify the key strengths, weaknesses, development opportunities and necessary improvements required to support development in the multi- modal station area. Emerging Changes and their Impacts on Development Potential . While the above tasks provide an analysis of currently foreseeable development conditions, Bonz/REA will discuss the area's list of changes and potential changes, which may involve new employers, newly available properties, transportation improvements, and the constantly shifting patterns of development elsewhere in the metropolitan area. These types of changes often enhance or constrain development opportunities. Given the strategic importance of the subject area's location, the community must take such changes into consideration so as to maximize the area's potential for desirable development and community benefit. Smart Growth Development Concepts Bonz/REA will identify 'and analyze recent smart-growth-related development projects that may be competitive with or comparable to prospective projects in the subject area. Such projects may include nearby projects as well as projects in similar urban settings elsewhere in the Twin Cities. BonZ/REA's examination of such projects will produce findings regarding market acceptance of unique development forms, targeted demographic profiles, likely market trade areas (sources of demand), key development features and pitfalls, supportable prices, likely absorption rates, and other such issues. Financial Analvses . Working with the above, Bonz/REA will prepare financial analyses for one or more viable or desired development projects. This analysis will guide the preparation of likely development programs, costs, revenues, and economic returns. As such, it will provide an understanding of the financial issues that will shape development and investment decisions, as well as the issues that the community may have to address in attracting desirable, well conceived planning and development alternatives. 3 . Catalysts The HKGI team will identify potential opportunities for special niches and/or "catalyst" uses. Such uses - which may include entertainment uses, recreational amenities, museums, cultural facilities, etc. - involve developments that can substantially alter local market conditions and generate new opportunities. Opportunities for such developments are rare, and often depend on substantial public commitments. Nonetheless, given the subject area's strategic location, Bonz/REA will examine such possibilities, focusing on market dynamics, site preferences, economic guidelines and financing conditions for potentially viable catalyst projects. Bonz/REA's analyses will present these concerns, evaluate the likelihood of attracting such uses, and then analyze the impact of such uses on adjacent development prospects. Deliverables: . market analysis findings and report 3.0 Zoning and Planning Commission Workshop An early step in the process includes conducting a Zoning and Planning Commission workshop. This workshop, facilitated by City staff and HKGi, will accomplish two objectives. First, it will provide the Commission with an overview of the project and a summary of the market review. Second, it will help build a common understanding among Commission members about general streetscape improvements by examining a series of case histories of recent improvements in Hopkins and other communities in the Twin Cities metro area. 4.0 Project Kick-off Meeting - Seek Initial Business/Community Ideas for Improvements . Before work begins on any concept alternatives, a "Kick-Off Meeting" will be conducted with community residents and businesspersons to introduce the project, to review the process for the work, and to confirm preliminary project objectives. The kick-off meeting will provide an opportunity to gain insights into the concerns and desires of the neighborhoods and project area interests. This meeting ensures that the project begins with a concrete understanding of the roles, responsibilities and tasks that will be involved and that those interested in the plan have the opportunity to shape its goals and objectives. The kick-off meeting will provide general overviews of both the redevelopment planning process and the aesthetic improvement planning process for Blake Road. A second meeting will focus only on the Blake Road area and will be used as a forum to gather the community's specific ideas about streets cape improvements. 4 . 4.1 Conduct a project kick-off meeting to introduce the planning processes. Summarize input received. 4.2 Convene a neighborhood meeting to solicit input on aesthetic improvements along Blake Road. The meeting will include presentations and small group discussions that will provide information and seek input on property owner and public interest in improvements. 4.3 Conduct a survey of area residents and property owners. Define a geographic survey area, assemble a written survey, send out a mail-in survey and tabulate results. With assistance from HKGi in structuring survey questions, staff will conduct a survey of area residents and property owners to gather additional ideas about improvements along Blake Road. The survey will not be statistically accurate but will provide another means to assess public opinion on the area. 4.4 Prepare a summary of the neighborhood meeting (HKGi) and survey data (staff) for consideration by the Zoning and Planning Commission. 4.5 Meeting of the Zoning and Planning Commission to consider meeting and survey input. 5.0 Explore what is possible... With the foundation of understanding gained in Tasks I and 2, the HKGi team will develop two redevelopment alternatives for the project area and a framework for aesthetic improvements along Blake Road. Redevelopment Alternatives In creating redevelopment alternatives for review, the process will address two levels of information: the public realm and private investments. . The public realm will be examined as part of concept exploration. Public realm includes land use, densities, pedestrian linkages, transportation, transit, and community open space. It will also address streetscape, roadways, and pedestrian corridors as well as other spaces that interface with the public realm. Concept exploration will consider the pending Excelsior Boulevard street improvements. The creation of the redevelopment alternatives will also address private sector investments including building form and character. Concepts will address the general project area. The redevelopment concept alternatives will identify varying locations for specific land uses. Concepts will address both short-term and long-term recommendations. Task 6 will include an examination of both the primary and secondary study areas. In the primary area, emphasis will be on: . Impacts of the planned busway . Impacts of the proposed Medica development . Future development and redevelopment of land lying on the north side of Excelsior Boulevard from the railroad tracks to Blake Road. . Consideration of reuse alternatives for the Alliant Tech building. . Opportunities to integrate additional residential development (higher density) into the area. . Examining connections between surrounding neighborhood areas and bus transit and regional bicycle trails. . Additional connections to Excelsior Boulevard. . Design/redevelopment standards for the area. . Aesthetic improvements along Blake Road consistent with Tasks 4 and 5. . In the secondary area, emphasis will be on: . Access/connections to Minnehaha Creek. . Trail connections to surrounding residential areas and the greater Hopkins community. 5 . Alternative concepts will be presented at. a workshop with City staff and the Zoning and Planning Commission and then at a public meeting involving property owners, residents, businesspersons and interested community members. Participants will be asked to evaluate the alternatives, and identify their preferred alternative (or the best aspects of the alternatives). Blake Road Aesthetic Improvements With the foundation of understanding gained in Tasks 1 through 4; HKGi will develop two roadway/streets cape improvement concepts for the project area. They will address streetscape, roadways, signage, landscaping and pedestrian corridors and will focus on addressing issues identified during the public meetings. The concepts will be presented at a workshop to City staff and the Zoning and Planning Commission and then at a public meeting involving property owners, residents, businesspersons and interested community members. Based on input received, a preferred concept will be developed. Tasks: 5.1 5.2 5.3 5.4 5.5 . 5.6 5.7 5.8 Explore a broad range of possible solutions by compiling two redevelopment concept alternatives and two concepts for aesthetic improvements along Blake Road. Meet with City staff to review the alternatives. Present the public realm and private sector sets of alternatives and the Blake Road alternatives at a workshop for the Zoning and Planning Commission and City Council allowing for active critique of the alternatives. Prepare modifications based in input received in Task 6.3 Conduct a public meeting to seek input from the community on the alternative land use concepts and the aesthetic alternatives for Blake Road. Prepare a summary of the workshop and public meeting results and clarify directions with City staff. Assemble preferred concept plans for potential redevelopment in the area and for aesthetic improvements for the Blake Road area. Meet with the Zoning and Planning Commission and City Council to review the preferred concept plans. Deliverables: . concept alternatives . summary ofworkshop(s) . preferred concept plans 6.0 Depict how the area will look and function... Once a direction has been established, HKGi will compile the final redevelopment concept and the concept for Blake Road improvements to reflect the level of detail needed to ensure their common understanding. The redevelopment concept will reflect anticipated uses; vehicle and pedestrian circulation systems; transit considerations; qualities of public and private spaces; the character and location of special features that will convey the. importance of this area. The redevelopment concept will look at both short-term and long-term recommendations for land use in both the primary and secondary areas. . The redevelopment concept will be illustrated using a variety of techniques, including drawings, diagrams, or other graphics. Emphasis will be placed on development of materials that communicate the essential ideas of the concept and provide a "tool" to direct subsequent planning and implementation efforts. 6 . . . Finally, general redevelopment costs will be framed to aid in the definition of an implementation strategy. The Blake Road aesthetic improvement concept will be illustrated using a variety of techniques, including drawings, diagrams, or other graphics. Emphasis will be placed on the development of materials that communicate the essential ideas of the concept and provide a "tool" to direct subsequent design efforts. The concept will be developed at a level of detail to serve as a design guide. For example, suggested planting patterns and streets cape elements will be noted on the drawings, however, the plan will not be a construction plan and it will not include specifications. A general cost estimate for the identified improvements will be developed. Tasks: 6.1 6.2 6.3 6.4 Assemble the final redevelopment and aesthetic concepts. Illustrate critical character elements and features. Develop costs based on the concept plans. Meet with city staff to review the concepts, and make adjustments as required. Deliverables: · redevelopment concept plan and an aesthetic improvements concept for Blake Road illustrating land use modifications; concept level depictions of development character; a description (verbal and graphic) of various elements of the plan; the relationship of the concept plan to other community features and resources; projected costs and illustrations, diagrams, renderings or graphics necessary to communicate the qualities, character and form of development as appropriate. 7.0 Define the next steps... The concept plan is only a "paper plan" at this point in the process. It is expected that the community will not (and should not) be capable of implementing every aspect of the plan on its own or all at once, and that others, developers, regional and state governments, and current business owners will need to be a part of the implementation equation. In fact, it is easy to predict the first question to be asked at a public presentation of the final master plan: "It looks great, but who is going to pay for it?" The last phase of this project will outline the steps necessary to carry the plan forward to implementation. The HKGi team will work with the city to define the responsibilities and procedures for implementation of the ideas generated during the master plan process and to outline the process, timing, funding options and priority of the various elements of the plan. Most important, likely strategies will be identified along with the process necessary for making those elements a reality. Once next steps are defined, a community meeting will be held to review the results of the effort. 7.1 Outline specific steps, working with the city, for impl~menting the concept plan. 7.2 Identify and describe redevelopment/implementation strategies. 7.3 Test existing finance options. Suggest alternatives for legislative action if appropriate. 7.4 Meet with the Planning and Zoning Commission and City Council to review implementation efforts. 7.5 Hold an open house for interested residents, businesspersons and members of the community to view the results of the planning and aesthetic improvements effort. Deliverables: . implementation strategy . final report 7 . . . Schedule Based on the scope of work outlined herein, the project can be completed in approximately 9 to 12 months. A preliminary schedule is attached. Fee Based on the work program outlined in this proposal, the total fee is $69,950.00. Components of this total fee include: Planning and Urban Design Market Analysis Public Finance $35,950.00 22,000.00 12,000.00 Total $69,950.00 If the approach outlined herein is acceptable to the City of Hopkins, I will prepare the necessary contract documents. Thank you again for the opportunity to present this proposal for professional services. Sincerely, ~ ~u;.yJ' ---... R. Mark Koegler, RLA President RMK:dbm Enclosure:; 8 Exhibit 1 . ~ ~ GOODRICH ST. i ~ ~ _ Primary Study Area J"",n;:];;;:n,,,,;,:,1 Secondary Study Area (i) . ", ~ . . Schedule . Pre l i m 1 n a r Y d Market Analysls . L d Use an East Hopklns an I ~ . . . . . . . . : . ~ . . 11111 Hoisington Koegler Group Inc. lB.