Memo Economic Development Mainstreet
CITY OF HOPKINS
MEMORANDUM
DATE:
July 9, 1993
FROM:
Honora~~MaYOr and City council
I. . . It' t
Tom Harm nlng, Communlty Deve opmen Dlrec or
~aul T. Steinman, Community Development Specialist
TO:
SUBJECT: ECONOMIC DEVELOPMENT/REDEVELOPMENT - KAINSTREET HOPKINS
I. Introduction
The City Council and staff have recently spent a considerable amount of
time discussing two specific projects along Mainstreet. Also, over th
last several years the City has identified a number of other
redevelopment sites or projects which it desires to undertake along
Mainstreet, all of which compete for limited economic development
resources available to the city.
Due to the City's recent concentration on two high profile projects
along Mainstreet, a limited amount of attention has been given as to how
these two projects relate to what the city desires to accomplish along
Mainstreet overall, and what their priority is as related to other
projects or redevelopment sites which may have been identified.
As was mentioned during the Councils June worksession, staff is
proposing that during the upcoming work session the City Council take a
step back and reassess the current state of affairs from an economic
development/redevelopment perspective on Mainstreet and determine
whether the direction the City is headed is still correct. To assist
with this review, staff proposes to work with the Council to undertake a
process of responding to the following questions:
What does the Council consider to ~e the redevelopment sites along
Kainstreet from TH 169 to shady Oak Road? In what order would the
Council prioritize the redevelopment of these sites?
o What does the Council consider to ~e projects or economic
development ideas or approaches which should ~e undertaken along
Kainstreet from TH 169 to Shady Oak Road? In what order would the
council prioritize undertaking these projects or other economic
development ideas?
Staff requests the City Council consider these questions and be prepared
to respond to them during the work session. What follows is background
information to help you with this task.
Honorable Mayor and City Council
July 9, 1993
Page 2
II. Backaround
o What sites have been identified in the past for redevelopment along
Mainstreet?
Over the course of the last several years the city has identified
several sites which it would like to see redeveloped. Examples
include:
Rudy Luther area located on the north side of Mainstreet
between sixth Avenue and Eighth Avenue
The Bursch property
Suburban Chevrolet property
pines Mobile Home Park
o What projects or other types of economic development programs or
ideas have been identified for Mainstreet?
Again, over time a number of projects or activities have been
identified to stimulate economic development along Mainstreet.
Examples of identified projects or programs which do not
necessarily relate to any specific site include:
Grocery store project
Movie theater project
Restaurant
Performing arts center
Medical clinic
Multi family housing
Commercial rehab loan program
Sign grant program
HBCA Programs - Realtor Incentive and Business to Business
Incentive Programs
Honorable Mayor and city Council
July 9, 1993
Page 3
o
What is the expense and revenue estimate for various redevelopment
efforts which have been identified along Mainstreet?
A
The City has identified, over time, projects to consider for the Mainstreet
area. What follows is an outline of the various economic development or
redevelopment activities which have been identified, and each of their
estimated costs. In addition staff has outlined the level of tax increment
revenues which are available to facilitate these projects. Please keep in
mind that the expenditures and revenues shown are only estimates and are
subject to modification as projects proceed.
Pro;ect
Exnenditure
A) Movie Theatre/Restaurant,
performing Arts Facility
(Suburban Chev. Site)
Acquisition
Demolition & Misc.
Performing Arts Facility
$1,000,000
100,000
$1.900.000
$3,000,000
B) Mainstreet Reconstruction
($1,000,000 previously transferred
to this project. Includes $100,000
for Shady oak/Mainstreet intersection)
$300,000
C) Bursch site Acquisition/demolition
$500,000
D) Grocery Store project
. . . . . . . . . . . . . . . . . . . .
$2,000,000
E) Comm rcial Rehab Loan Program
($100,000 per year thru 2001)
$900,000
F) Administration
($80,000 per year thru 2001)
. . . . . . . . . . . . . . . . . . . .
$650,000
G) Alleyscape Improvements
$450.000
TOTAL POTENTIAL TIF EXPENDITURES
$7,800,000
Revenue Source
Amount
Available TIF funds 5/93
$3,500,000
Future Bond Issue Capacity
. . . . . . . . . .
$3.000.000
TOTAL AVAILABLE TIF ....................
$6.500.000
Honorable Mayor and City Council
July 9, 1993
Page 4
Assumptions Used Relating to Analysis
Bond Issue capacity based on analysis prepared by Wilson
Development Service. Could vary depending on tax
classification changes, timing of bond issue, and lowering of
CBD tax base due to abatements or reductions in value.
Bursch acquisition and Alleyscape estimate based on allocation
in 1989/1990 bond issue. These figures could potentially be
lower.
Grocery store and performing arts project based on most recent
estimates.
Revenue estimates relate only to funds in downtown tax
increment district. They do not include dollars in City's
Economic Development Fund.
Revenue projections do not take into consideration potential
tax increment generation from projects.
Expenditure estimate does not include redevelopment of Rudy
Luther block or pines Mobile Home Park. It is assumed that
redevelopment of the pines will be self supporting from a Tax
Increment Financing perspective.
Cost associated with the planned Mainstreet Improvem. nt
Project between 5th Ave. and Washington Ave. is not included
in the above analysis.
o What are the redevelopment and economic development
recommendations, goals and policies which have been identified in
past reports and plans relating to Mainstreet?
The following reports contain information/recommendations regarding
Mainstreet as related to economic development and land use:
Comprehensive Plan
Two primary sites have been identified in the Compo Plan for
redevelopment in the downtown area. These include the Suburban
Chevrolet site and the site located on the north side of
Mainstreet between Fifth and Eighth Avenues.
The Compo Plan also recommends continuing facade/signage
rehabilitation, and improvements to the rear entrances of
buildings along Mainstreet. These items are identified as
eligible improvements within the guidelines of the current
Commercial Rehab. Loan Program.
Upgrading alleys and utilities is a recommendation made in the
Compo Plan. This type of upgrading is identified within the
budget of the Alleyscape Improvement project.
Honorable Mayor and city council
July 9, 1993
Page 5
The Compo Plan also identifies the following guidelines:
o The Compo Plan states that in reviewing new
development and redevelopment proposals the City
should maintain the appearance and character of the
historic building throughout the commercial area,
both in the historic core and in the supportive
nearby areas.
o Buildings should be maintained or developed in such
a manner to address the following:
Buildings should be kept relatively small
scale consistent with the historic
downtown.
Maintain as much building line along
Mainstreet as practical. Where building
must be set back, a strongly landscaped
edge should be established to maintain
some visual line along the street.
A window should be maintained in the
building facades along Mainstreet.
New buildings should attempt to imitate
the window proportions and placement
established in the historic core.
o Parking lots should be kept small and close to the
businesses served. Larger lots should have visual
breaks or four-season landscaping treatment.
strategic Plan
The following suggested action steps are identified in the
Hopkins strategic Plan for Economic Development:
o Encourage projects which will help to provide the
full range of support services to employees and
local businesses.
o Expand City's Commercial Rehab. Loan Program and
Sign Grant Program.
o Encourage destination type businesses with an
emphasis on the arts, entertainment, recreation, and
family oriented uses, to locate on or near
Mainstreet.
o Exam~ne completing aesthetic and infrastructure
improvements to Mainstreet between 5th Avenue and
Washington Avenue.
Honorable Mayor and city Council
July 9, 1993
Page 6
Laventhol & Horwath
Laventhol & Horwath Mainstreet Market study was completed in
May, 1988. The report indicated that primary development
opportunities exist for new and expanded establishments that
serve the "local convenience" consumer needs. Examples of
these types of convenience establishments include:
- General merchandise stores
- Grocery and specialty food stores
- Men's, boys, children's, infants clothing stores
- Bar/restaurants
L & H states that Hopkin's CBD assets include its strong
identity and base of existing businesses. In addition, Hopkins
should work to attract grocery stores which specialize in
fruit/vegetable sales, and entertainment type establishments.
It is also discussed within the report that Hopkins must
"cluster most of the development together" in an attempt to
reinforce "spin-off" trade.
L & H discusses Hopkins "strong sense of place and character,
which differentiates it from surrounding communities." Hopkins
CBD exhibits "town charm that offers a sense of character,
history and identity."
L & H identifies the following issues also:
Development efforts should be targeted toward
meeting the convenience retailing needs of the local
resident and working populations, i.e., specialty
retailers, food stores, and entertainment
establishments.
Efforts should also be targeted toward the growth
and development of merchants which serve the
destination specialty market, i.e., auto-related
products and services, professional services,
maintenance and repair services, and other
miscellaneous destination specialty retailers.
Encourage commercial development to be clustered
close to the four-block core business district.
Attachments:
comprehensive Plan excerpts
Laventhol & Horwath Market study Executive Summary
strategic Plan excerpts
Map of Mainstreet
TH07073C
COMPo PLAN EXCERPT
The abandoned railroad right-of-way which angles across Central
Hopkins is proposed for conversion to a County bicycle path.
Redevelopment Plan
There are two primary locations in which redevelopment should be
explored and encouraged in Downtown Hopkins. They are:
. The Suburban Chevrolet site between 11th and 12th Avenues on
the south side of Main Street.
. The several parcels between 5th and 8th Avenues which abut the
north side of Main Street.
The City will carefully examine the possible application of tax increment
financing to leverage private reinvestment on these properties if
proposals are offered which are consistent with this Plan and the 1988
Hopkins Main Street Commercial Market Study.
The rehabilitation of facades and signage will continue to be promoted
through the Downtown Hopkins Commercial Rehabilitation Loan Pro-
gram and the Commercial Signs Rehabilitation Grant Program.
Urban Design Guidelines
The following guidelines will be used by the City in reviewing new
development and redevelopment. The overall intention is to maintain
the appearance and character of the historic buildings throughout the
commercial area, both in the historic core and in the supportive nearby
areas.
Buildings
. Buildings should be kept held to a relatively small scale consistent
with the historic Downtown.
. Building heights in the historic core should match that of adjacent
structures, with two or three stories being the desired height in that
area. Building heights outside the historic core may vary.
46
COMPo PLAN EX ERPT
. Maintain as much building line along Mainstreet as practical.
Where buildings must be set back, a strongly landscaped edge
should be established to maintain some visual line along the street.
. A window line should be maintained in the building facades along
Mainstreet.
. All commercial buildings along Mainstreet should have rear entries
designed to be attractive, functional, and identifiable.
. All building entries, front and rear, should make provision for the
':protection of users from the'elements by overhangs, recessed door-
ways, and/or awnings.
. New buildings along Mainstreet should attempt to imitate the win-
dow proportions and placement established in the Historic Core.
. Exterior building colors along Mainstreet should' be in the red-
brown spectrum so as to be consistent with those of the historic core.
Parking
. The Downtown Parking Committee should continue to revise and
refine the Downtown Parking Plan, calling upon the assistance of a
professional traffic and parking consultant whenever major ques-
tions arise. The Parking Plan should be utilized 'whenever
,development or redevelopment occurs and its recommendations
should be continuously pursued.
. Parking lots should be kept small and close to the businesses served.
Larger parking Jots' should have visual breaks of four-season
landscaping treatment.
. Parking areas directly abutting the rear of commercial buildings
should be paved and landscaped. These spaces should, of course, be
reserved for customers and not occupied by employees. Emphasis
should be placed on easy and pleasant customer use in all seasons.
. All parking lots should have perimeter landscaping consisting of
trees and shrubs selected to withstand the harsh conditions.
. All parking lots must be paved with asphalt or concrete and properly
maintained, striped, and landscaped.
48
C .P. PUll EXCERPT
TABLE 5
DOWNTOWN ACTION PLAN
Action Responsibility Timing Funding Coordinate with
Redevelop single-family BRA, PC, Ongoing TIP if Land Use Plan
housing into multiple family CC necessary,
buildings Dk of CD EDF
Assist redevelopment of lIRA, PC, Unknown TIP, EDF Land Use Plan
Suburban Chevrolet site CC
Dk of CD
Assist redevelopment of BRA, PC, 1990-1993 TIP Land Use Plan
area between 5th and 8th CC SA
Avenues north of Mainstreet Dk of CD EDF
Continue facade and signage Planner Ongoing CDBG
rehabilitation
Review new construction PC Ongoing None Land Use Plan
for compatibility with Engineer Transpoctation Plan
historic character and Planner Downtown Parking
traffic and parking impact Plan
Continue to follow and PC Ongoing None Land Use Plan
refine parking plan Planner
Engineer
Assist improvement of rear lIRA Ongoing TIP Parking Plan
of buildings along Dk of CD CDBG
Mainstreet EDF
Upgrade alleys and Engineer Ongoing GF
utilities SA
Improve entry signage Planner 1990-1994 GF Excelsior Blvd.
SA Corridor Plan
Study traffic impact of Engineer 1990 GF Transportation Plan
straightening Mainstreet
Design comprehensive Planner 1990-1992 GF,SA
planting and lighting plans TIP, EDF
Extend Mainstreet Planner Engineer 1990- 2000 SA
landscaping and lighting TIP, EDF
west to Shady Oak Road
and County Road 3
Rename 5th Avenue CC 1990 None U.S. Postal Service
Hopkins Avenue
ABBREVIATIONS:
PC = Planning Commission
CC = City Council lIRA == Hopkins Housing and Redevelopment Authority
TIP= Tax increment financing
GF = General Fund
SA == Special Assessments
It CDBG = Community Development Block Grant Funds (federal)
EDF = Economic Development Fund
53
LaHSTUDY
EXECUTIVE SUMMARY
The development potential for 107 retail, service and financial
establishment types was analyzed for Hopkins Mainstreet. The
process to determine development potential identified where a
majority of the district's consumers live, and evaluated a wide
range of their demographic characteristics to determine what types
of products and services are in demand. The demand for products and
services was compared to the existing base of retail, service and
financial establishments in the area, as well as to competing
commercial centers inside and outside of the trade area.
Development assets and liabilities were identified, and
recommendations for targeting future growth and development are
provided. Finally, a prospect list and marketing program are
provided for implementing several of the recommendations in the
report.
Key Findings
The development potential is limited and development efforts
need to be specifically targeted to effectively compete with
the many competing commercial centers in the area. The
opportuni ties for developing commercial establishments in
the Hopkins Mainstreet CBD are limited, largely due to. the
large numbers of competing facilities surrounding the
commercial district.
primary development opportunities exist for new and expanded
establishments that serve the local convenience consumer
needs. The commercial district currently lacks some
necessary products and services to provide for the frequent
and convenient needs of its local consumer base. This base
includes people who live and work in the immediate Core
Trade Area. Examples of local convenience establishments
include miscellaneous general merchandise stores, grocery
and specialty food stores, men's, boys, children's and
infants clothing stores, and bar/restaurants.
Additional development opportunities exist for new and
expanded establishments that serve the destination specialty
market. These establishments provide specialty products and
services, and draw a large share of their trade from outside
of the immediate Core Trade Area. There presently are a
number of these establishment types in the area that should
be supported. Over the long-term, efforts should be made to
attract additional destination specialty establishments.
t
EXECUTIVE SUMMARY
HOPKINS MAINSTREET COMMERCIAL MARRET STUDY
Other Issues
A number of related issues identified to further focus development
efforts.
Establishments should offer moderate-priced products and
services. Hopkins establishments will compete more
effectively for the local convenience market with
moderately-priced products and services that are in line
with the more moderate-income characteristics of the local
residents. The area cannot compete as well for the high-
priced market.
The Hopkins Hainstreet CBD should undergo some physical
design changes that better serve the existing convenience-
oriented shopping behaviors. The design of circulation and
access are currently in conflict with the convenience-
oriented shopping behaviors present. in Hopkins.' Design
elements should support the multi-stop, drive-in and drive-
out behaviors, as opposed to encouraging one-stop, multi-
purpose shopping trips.
t
EXECUTIVE SUMMARY
HOPKINS HAINSTREET COMMERCIAL MARKET STUDY
LaH TUDY
Ie
;,
STRAT.GI PLAN EX BRPT
GOAL #1
BUSINESS RETENTION/RECRUITMENT
Foster the stability and growth of existing businesses.
An important element in job growth is business retention. A much greater percentage of employment base
comes from within existing bu.sinesses, than from recruitment of outside business. With this in mind, the
City must focus a great amount of attention toward fostering the growth of the existing businesses in the
community.
Suggested action steps:
1
1.
2.
,I 3.
4.
5.
;\
6.
,'1 7.
: I
Encourage projects which will help to provide the full range of support services to
employees and local businesses.
Undertake a "business retention and expansion" survey process to identify needs of
existing businesses.
Work with SUPERVALU warehouse to encourage and accommodate their expansion
needs.
Take an inventory of environmentally contaminated sites and identify Mure plans for
redevelopment/clean-up of these sites.
As much as is determined appropriate, expand the City's existing programs, such as the
Commercial Rehabilitation Loan Program and Sign Grant Program, to include other
commercial/industrial areas.
Work with Hennepin County on redevelopment of Hennepin County Public Works site.
Insure that existing training opportunities are easily accessible for employees of local
businesses through marketing and development of these programs. Facilitate
partnerships between local businesses and institutions which provide these training
opportunities.
8. Work with local banks, Department of Trade & Economic Development, and SBA to
increase awareness of existing programs which support business expansion.
9. Establish landscaping programs for all commercial/ industrial areas of the City.
)1
a.-
Page 7
THAT.OIC PLAN EXCERPT
MAINSTREET
GOAL #1
Provide an atmosphere which will foster the retention of existing business on or near Mainstreet and
attract new businesses.
~~
Mainstreet, bordered by Washington Avenue on the east and Shady Oak Road on the west, needs to be
preserved as a major service/retail sector of Hopkins. The City currently has programs developed to aid in
the retention and attraction of businesses along Mainstreet. The City's Commercial Rehabilitation Loan
Program and Sign Grant Program act as incentives to upgrade existing buildings/businesses along
Mainstreet. The City and Hopkins Business and Civic Association have developed programs to help attract
retail businesses to Mainstreet:
o New Business Incentive Program
o Realtors Incentive Program
o Leasing Guide
::.-
~.
~~
The City has recently made a large investment into the upgrading and repair of Mainstreet. The City
completed the final phase of a $3.7 million dollar Mainstreet Improvement Project in the Fall of 1992. The
Improvement Project repaired infrastructure and provided a variety of enhancements to Mainstreet
including brick pavers, antique lighting, additional parking, benches, trash receptacles and a plaza and
clock tower in the heart of the Central Business District.
Suggested action steps:
1.
, 2.
3.
Encourage destination type businesses with an emphasis on the arts, entertainment,
recreation, and family oriented uses, to locate on or near Mainstreet.
Explore new incentive programs to attract/retain businesses on or near Mainstreet.
Improve and regular1y assess existing programs to attract/retain businesses, i.e., the
Commercial Rehabilitation and Sign Grant Program, New Business Incentive Program,
Realtors Incentive Program and the Leasing Guide.
4. Continue to promote Mainstreet Hopkins through trade show attendance, festivals, and
special events such as Farmers Market, Parades, Heritage Days, the Raspberry Festival
and other promotional opportunities.
5. Maintain an inventory of vacant buildings on or near Mainstreet and actively distribute to
Realtors and potential lessors.
6. Encourage businesses on or near Mainstreet to adopt uniform hours and a more
consistent management style in order to provide a reliable level of service to patrons of the
Mainstreet area.
,
,
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Page 17