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Memo- Public Parking Lot PLANNING & ECONONUCDEVELOPMENT Memorandum To: Honorable Mayor and City Council From: ~C Jim Kerrigan, Planning & Economic Development Director Date: September 9, 1999 Subject: Public Parking Lot Purpose of Memo The following is meant to provide information on the possibility of construction of a new public parking lot in the downtown. Discussion of this item is scheduled for the September 14, 1999, Council work session. At this meeting staff will be requesting direction on whether the Council is interested in trying to move forward with this project. Ov rview . A Parking Committee was formed several months ago to look at various issues in the downtown area. One of the items that has been discussed is the capacity of the system to adequately address customer and employee demand. A site that has been identified to potentially address this concern is the vacant property at 35-37 Ninth Avenue North Recently staff met with representatives of U.S. Bank, who have substantially increased the number of employees they have operating from the Hopkins location. To meet their employee parking needs, they expressed an interest in possibly entering into a lease agreement with the City on the development of the Ninth Avenue parking lot. Is u s To Consider . What would be the specifics of a lease agreement with U.S Bank? Although there has been only.a preliminary discussion with U.S. Bank, the following are some introductory aspects that have been discussed: . . The City would purchase the Ninth Avenue property and construct a parking lot. U.S. Bank would have exclusive use of the lot during daytime hours.. The City would have responsibility for enforcement during this time. In the evening the lot would be available for public use. JK/JK09099A Memo to Honorable Mayor and City Council, September 9, 1999 - Page 2 · U.S. Bank would agree to pay all acquisition and development costs to the City through an assessment process over a ten-year period. · After ten years, all interest in the subject property on the part of U.S. Bank would terminate and the lot would revert to full-time public parking. · What is the timetable for undertaking this project? · U.S. Bank has expressed an interest in trying to complete this project this year. In reality, if there is agreement to proceed, this would probably be a spring 2000 project. · What is the status of the property? . Staff has talked to the property owner. He has expressed a possible interest in a sale. This person also owns the clinic property directly south of the subject site and has stated that he might wish to retain a small portion of the property to allow for a potential future expansion project. Conclusion . The Council is agreeable to proceeding forward with this matter and anticipates that the following steps would probably take place: . Execute a letter of understanding with U.S. Bank · Negotiate an option or purchase agreement with the subject property owner . Approve and execute a development agreement with U.S. Bank Attachments . Letter from U.S. Bank, dated 8/24/99 . Memo from Jim Gessele, dated 8/20/99 . Site map . JK/JK09099A . . bank@ August 24, 1999 Jim Kerrigan Director of Planning & Economic Development City of Hopkins 1010 First Street South Hopkins, MN 55343 Dear Jim: As we discussed recently, U.S. Bank has increased their employee base to 133 employees in the 16 Ninth Avenue North building. This situation has put a strain on parking in the downtown area. In order to resolve this situation we would propose that the City purchase and improve the property located at 35th Ninth Avenue North and 37th Ninth Avenue North for parking, U.S. Bank would then be willing to consider executing a ten year lease, Through this lease we would reimburse the City for all acquisition and improvement costs, It is understood that staffwill present this matter to the City Council at a Council work session, Staff will meet with the property owner again to confirm his interest in selling the property, An appraisal will need to be completed, a lease agreement will need approval, and the Council will need to give final approval of the sale, If you have any questions, please call me at 728-8430. Sincerely, K~J' 8~ Karl Baltes Manager MIS Accounting Copies: Steve Mielke Jim Hartshorn PUBLIC WORKS DEPARTMENT I Memorandum TO: Jim Kerrigan, Director of Planning FROM: Jim Gessele, Engineering Supt. DATE: August 20, 1999 SUBJECT: Parking Lot Layout, Between 8th/9th Avenues North COPY: Steve Mielke, City Manager Jim Hartshorn, Economic Development Coordinator Steve Stadler, Public Works Director . Attached are two parking lot options for vacant land between 8th/9th Avenues North, south of 1 st Street North. Estimated construction cost for either one as shown is approximately $42,000. Both feature bituminous surfacing and concrete curbing. If a storm sewer system is necessary then add at least $10,000 to the cost. Option B may lose fewer parking stalls should the current owner wish to retain a portion of the south end, e.g. 20 feet. Note that the owner's current building appears to encroach on the adjoining lot. That "encroachment" is shaded in yellow and most certainly would need attention in the case ofthe city acquiring the vacant parcels. The "encroachment" had no bearing on the layout as shown. . . . I I ~ ( ~ J L ;I' f:, .. I,' I C:>:>f. '" , " , I .. 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" ~. c .:t.Jv' K.ij-. . ..., '~r'I::';.5b . ? ~- i .10 . 1_1~:~~1; . ~,.-:: ~ i~ M; .. _ '_ ~ <Jl TREET 'lc1{o.:i,:. (; <) 17;' ,'U' '" ~ .50. : ~ ..... ..,~~' .ii Ul ., 'l,\<;~,~~l-;2.'-~'~'~ ...~ 117 -_...,.,- '---- ,. '" l;:'\"\:~~ ,~~ ~I';~:S~ ';;10' I;, ,g _1~i,I:;-5;1' -1--~~. ~~(;'-' _ . II' -:r;:Z]~, '.- N_' 1 ~E n;il r"'\ \ A J 1 ,... , ,_~:';.OOl ' r ", z i'" ".. ' I I - r ...~'; i r- -~ ~ .., _ ,~ /' 3 :1 i' z: ~~~ ~-~ ref :Z~ i 5"]1 1 I {; , ' 45 11';. ~z ,,44 170.3 , PLANNING & ECONOMUCDEVELOPMENT Metnorandum To: Honorable Mayor and City Council From: -=l!CJim Kerrigan, Planning & Economic Development Director Date: September 9, 1999 Subject: Public Parking Lot Purpose of Memo The following is meant to provide information on the possibility of construction of a new public parking lot in the downtown. Discussion of this item is scheduled for the September 14, 1999, Council work session. At this meeting staff will be requesting direction on whether the Council is interested in trying to move forward with this project. Ov rview ,." r ~_ A Parking Committee was formed several months ago to look at various issues in the downtown area. One of the items that has been discussed is the capacity of the system to adequately address customer and employee demand. A site that has been identified to potentially address this concern is the vacant property at 35-37 Ninth Avenue North Recently staff met with representatives of U.S. Bank, who have substantially increased the number of employees they have operating from the Hopkins location. To meet their employee parking needs, they expressed an interest in possibly entering into a lease agreement with the City on the development of the Ninth Avenue parking lot. u s To Consider · What would be the specifics of a lease agreement with U.S Bank? Although there has been only.a preliminary discussion with U.S. Banks th following are some introductory aspects that have been discussed: · The City would purchase the Ninth Avenue property and construct a parking lot. U.S. Bank would have exclusive use of the lot during daytime hours., The City would have responsibility for enforcement during this time. In the evening the lot would be available for public use. JK/JK09099A Memo to Honorable Mayor and City Council, September 9, 1999 - Page 2 · U.S. Bank would agree to pay all acquisition and development costs to the City through an assessment process over a ten-year period. . After ten years, all interest in the subject property on the part of U.S. Bank would terminate and the lot would revert to full-time public parking. · What is the timetable for undertaking this project? . U.S. Bank has expressed an interest in trying to complete this project this year. In reality, if there is agreement to proceed, this would probably be a spring 2000 project. . What is the status of the property? . Staff has talked to the property owner. He has expressed a possible interest in a sale. This person also owns the clinic property directly south of the subject site and has stated that he might wish to retain a small portion of the property to allow for a potential future expansion project. Conclusion The Council is agreeable to proceeding forward with this matter and anticipates that the following steps would probably take place: · Execute a letter of understanding with U.S. Bank · Negotiate an option or purchase agreement with the subject property owner · Approve and execute a development agreement with U.S. Bank Attachments . Letter from U.S. Bank, dated 8/24/99 . Memo from Jim Gessele, dated 8/20/99 . Site map JK/JK09099A bank@ August 24, 1999 Jim Kerrigan Director of Planning & Economic Development City of Hopkins 1010 First Street South Hopkins, MN 55343 Dear Jim: As we discussed recently, V,S, Bank: has increased their employee base to 133 employees in the 16 Ninth Avenue North building. This situation has put a strain on parking in the downtown area. In order to resolve this situation we would propose that the City purchase and improve the property located at 35th Ninth Avenue North and 37th Ninth Avenue North for parking. V.S, Bank would then be willing to consider executing a ten year lease. Through this lease we would reimburse the City for all acquisition and improvement costs. It is understood that staffwill present this matter to the City Council at a Council work session. Staffwill meet with the property owner again to confIrm his interest in selling the property. An appraisal will need to be completed, a lease agreement will need approval, and the Council will need to give fInal approval of the sale. If you have any questions, please call me at 728-8430. Sincerely, K~J' 8~ Karl Baltes Manager MIS Accounting Copies: Steve Mielke Jim Hartshorn PUBLIC WORKS DEPARTMENT I Memorandum TO: Jim Kerrigan, Director of Planning FROM: Jim Gessele, Engineering Supt. DATE: August 20, 1999 SUBJECT: Parking Lot Layout, Between 8th/9th Avenues North COPY: Steve Mielke, City Manager Jim Hartshorn, Economic Development Coordinator Steve Stadler, Public Works Director Attached are two parking lot options for vacant land between 8th/9th Avenues North, south of 1 st Street North. Estimated construction cost for either one as shown is approximately $42,000. Both feature bituminous surfacing and concrete curbing. If a storm sewer system is necessary then add at least $10,000 to the cost. 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