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Memo Work SessionDATE: June 18, 1993 CITY OF HOPKINS MEMORANDUM TO: Honorable Mayor, City Council and Council Elect Hesch & Maxwell FROM: Tom Harmening, Community Development Director Jim Kerrigan, Director, Planning & Economic Development SUBJECT: WORK SESSION - JUNE 22, 1993 I. PURPOSE OF DISCUSSION The purpose of this work session is to provide an opportunity for the existing and incoming Council members to discuss current and future economic development efforts of the City. It is anticipated this discussion will focus primarily on economic development related issues in downtown Hopkins with particular emphasis on the proposed grocery store and entertainment complex project. It is proposed that the discussion relate to the overall issues of these potential projects from both a land use /physical development and financial perspective. This memo is made up of the following components: o General overview of redevelopment and economic development projects which have been identified, and related financial issues o Overview of the grocery store and entertainment project o Overview of land use and related traffic /parking issues relative to these two projects II. OVERVIEW OF REDEVELOPMENT AND FINANCIAL ISSUES The City has, over time, identified a number of economic development projects, redevelopment projects, or public improvements which it would like to consider further for the downtown area. For example the City identified in its Comprehensive Plan two sites in the downtown area which should be considered for redevelopment. These include the Suburban Chevrolet site and the property on the north side Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 2 of Mainstreet between Fifth Avenue and Eighth Avenue (see attached Exhibit A). The City has also identified over time other projects which should be considered for the Mainstreet area. What follows is an outline of the various economic development or redevelopment activities which have been identified along with the potential 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 expenditure and revenue estimates are based on numerous assumptions and are subject to change. o Potential Projects /Related Expenditures Entertainment /Performing Arts Project - Suburban - Acquisition - Demolition & Misc. - Performing Arts Facility $1,000,000 100,000 $1,100,000 1,900,000 •$3,000,000 Mainstreet Reconstruction $300,000 ($1,000,000 previously transferred to this project. Includes $100,000 for Shady Oak /Mainstreet intersection) Bursch Acquisition $500,000 (Including demolition) Grocery Store Development $2,000,000 Commercial Rehab Loan Program $900,000 ($100,000 per year thru 2001) Administration $650,000 ($80,000 per year thru 2001) Alleyscape Improvements $450,000 TOTAL POSSIBLE EXPENDITURES o Revenue Available TIF funds 5/93 $3,500,000 Future Bond Issue Capacity $3,000,000 $7,800,000 TOTAL AVAILABLE TIF $6,500,000 • • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 3 o 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 issue, and lowering of CBD tax base due to allotments or rebates. - Estimate for TIF expenditures for Mainstreet project is $1.3 million. One million already transferred to Mainstreet Project in 1991. - 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 III. GROCERY STORE PROJECT A. Background redevelopment of Rudy Luther block. Over the last several years there has been a strong interest in constructing a larger grocery store facility within the City of Hopkins. Based upon market conditions, the general consensus seems to be that a larger facility is needed in order to adequately address the consumer needs within the market area. It is generally felt that the existing 21,000 square foot Tait's SuperValu is not large enough to meet these needs. In the fall of 1986 Ryan Construction submitted a plan for the redevelopment of the Pines Mobile Home Court to include a grocery store and approximately 38,000 square feet of adjacent retail. Based on input from adjacent property owners, business groups, and a land use study completed by R.L. Wuornos and Associates, a decision was made to not undertake this development. Ryan was Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 4 subsequently asked to look at locating such a project in the downtown area. In the summer of 1987 Ryan Construction began looking at a retail /grocery store development project for the downtown area. The area that was originally considered for this project was between Seventh and Eighth Avenue, both north and south of Mainstreet. However, for a variety of reasons it was decided that it was more practical to look at redeveloping just the property between Sixth and Eighth Avenue north of Mainstreet. Between late 1988 and early 1990 a variety of alternative plans were prepared and reviewed. In early 1990 a plan was prepared by Ryan which detailed the construction of a 37,000 square foot grocery store and 20,000 square feet of retail space in this area. Due to neighborhood concerns the project was scaled back to only include the grocery store. However, by late 1991 it became apparent that it was not possible to proceed with the project as the Hennepin County Regional Railroad Authority was unwilling to approve a request by the City of Hopkins to utilize their right -of -way through this area to facilitate the project. In mid 1992 the Council held a workshop session with staff to discuss alternative sites for construction of a grocery store in the downtown area. At this meeting a staff report was presented which outlined 11 different scenarios for four different sites in the downtown area. These four sites were: o Suburban Chevrolet o Bursch Restaurant site o Block including existing Tait's store o Area between 8th and 9th Avenue, north of Mainstreet In looking at various potential sites, the following criteria was considered: o Minimize the taking of Mainstreet commercial buildings o Minimize the taking of residential structures o Minimize the taking of any substantial commercial buildings • t Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 5 As a result of this discussion SuperValu was asked to analyze these sites for construction of a facility. Based on this analysis a decision was made by SuperValu that the most logical alternative for building a larger grocery store facility in downtown Hopkins was to expand the existing grocery store. This alternative is generally the plan that is presently being discussed by the Council. B. Summary of Current Proposal The developer, Don Hagen, is proposing a project which would involve the expansion' of Tait's SuperValu from its current 21,000 square feet to 42,580 square feet. It is also proposed that 9,700 square feet of additional retail space be added as part of this project. The additional retail space would require the closure of Tenth Avenue. In order to provide adequate parking for the grocery store expansion, it is proposed the existing buildings along Mainstreet between Tenth and Eleventh Avenues be removed. It is also proposed that the First Bank Drive Thru facility located north of the present grocery store be removed, and possibly the Galaxy Building located at the southeast corner of Tenth Avenue and First Street North. C. Financial Aspects of Current Proposal The City has set aside $1.1 million of bond proceeds for a grocery store project. In the preliminary tax increment application, which was approved on May 4, 1993, the developer identified a request for approximately $1.7 million in public funds to facilitate this project. The following are the developer's cost estimates for the proposed usage of public funds: - Acquisition - Relocation - Demolition $1,400,000 220,000 60,000 Staff has projected, based on estimated project costs and a more conservative tax increment generation calculation, that there would be a net public cost of approximately $2 million. Neither staff's nor the developer's estimate assumes the purchase of the Galaxy building located north of Center Drug. Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 6 D. Current and Future Process Recently, the City Council agreed to enter into a preliminary development agreement with Don Hagen to begin undertaking the steps required in the project. The purpose of the preliminary development agreement is to provide additional information to the City Council /HRA related to the project. By entering into this agreement the City is not obligated to proceed with the project. The information which will be developed during the first phase of the agreement includes the following: - The overall estimated project cost - Design issues and alternatives - Relocation issues and alternatives - Financing issues Following completion by the developer of the first phase a thirty day review process will be undertaken. Based on information gathered from neighborhood groups, business organizations, and meetings held by the Planning and Zoning Commission and City Council /HRA, a determination will be made on whether to proceed further with analyzing the project. If there is interest to proceed, the developer will be required to enter the second phase of the preliminary development agreement which includes the following: - Phase I environmental assessment - Execute option agreements with owners - Traffic analysis - A detailed financial pro forma - Preliminary tenant commitments - Preliminary financial commitment from private lending institution - Submission of a final tax increment application Upon completion of the preliminary development agreement phase the City Council will then be faced with the decision as to whether it wishes to proceed further and enter into a final development agreement or take some other action. This is discussed in more detail later in this report. • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 7 E. Issues Upon considering the plan as proposed by Tait's and SuperValu, the following issues have been identified: o Removal of Mainstreet buildings. In conjunction with this issue are the following items to consider: - Impact on the downtown and community. - Potential loss of existing tenants. o Level of public assistance required in order make the project feasible. o Market issues as relates to the proposed project. There are two questions regarding this issue: - Will the proposed project adequately meet market needs - Can the existing store at 21,000 square feet adequately serve the community and survive if a larger store would enter the market area. o Positive Aspects of the Project There are a number of positive aspects as relates to this project. These include the following: - Creates a strong positive image for the downtown which demonstrates to the real estate market that both the public and private sector are willing to make substantial investments in the downtown in order to keep it strong and viable. This would be the largest new retail project which has been undertaken in the central business district for several years. - Would help to maintain or create a central focal point for the downtown area. This is especially true if the entertainment complex project on Suburban Chevrolet is also undertaken. In a sense, this project could develop a major retail hub in the downtown at the corner of Mainstreet and 11th Avenue. Would hopefully bring a new customer base into the downtown area. SuperValu is estimating that a number of individuals that • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 8 F. Alternatives are presently doing their grocery store shopping at facilities in areas other than Hopkins would begin to frequent the downtown facility. This additional customer base would hopefully create additional opportunities for other new retail in the downtown area. What follows are examples of alternatives relating to the grocery store project. o Undertake the project as proposed by the developer. From SuperValu and Tait's standpoint, this alternative allows them to construct a larger facility with adequate parking which meets customer needs and allows a grocery store to be retained in the downtown area. o Undertake an expansion of the existing store but revise the proposed site plan to reduce the amount of buildings required to be removed from Mainstreet. The developer, in conjunction with the preliminary development agreement, will be exploring this alternative. Based upon a recent parking analysis completed by staff and Benshoof and Associates it does appear adequate parking may be available for Tait's SuperValu with the Merriam Park buildings remaining. This is discussed in greater detail later in this report. In conjunction with this alternative, it should also be noted that staff has developed a site plan which would have allowed the expansion of Tait's without the taking of any Mainstreet buildings. By acquiring just the First Bank Drive Thru and liquor store the plan as proposed allowed for construction of a 35,000 to 36,000 square foot facility. However, SuperValu did not feel this plan provided adequate parking or visibility for the larger facility. o Undertake no expansion of the existing facility. Again, the market issues as detailed previously need to be taken into account. It would seem that if this alternative were undertaken, at a minimum the existing store would need to be upgraded. The City could possibly provide some financial assistance to help facilitate this effort. • • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 9 o Explore alternative locations. This has been previously undertaken a number of times. It appears there are really limited 'opportunities for facilitating a larger grocery store in the downtown area. Therefore, if staff was directed to undertake this alternative it would seem that sites outside of the downtown may also need to be considered. G. Future Actions Required Based upon information received from the second phase of the Preliminary Development Agreement, the City Council /HRA will be asked to determine whether to proceed with the project. Three options would be available at that time: A. Background - A decision not to proceed with the project - Request that the developer provide additional information - Authorize staff to prepare a final development agreement for the project as proposed or modified. . If a decision is made by the Council /HRA to proceed with preparation of a final redevelopment agreement, the following processes would be undertaken as a part of that agreement: - Submission of final tax increment application - Approval of conditional use permit By entering into a final development agreement the City would essentially be committing to undertaking a project of some type. IV. ENTERTAINMENT COMPLEX PROJECT In 1990/1991 the City of Hopkins worked with Marcus Corporation on the development of a movie theater in downtown Hopkins. A number of sites were evaluated for this project. Eventually a decision was made that the best location was the Bursch property. The project proposed the construction of a 20,000 .square foot 1,300 seat budget theater. Although the project appeared feasible from a market standpoint, the developer was unable to secure financing. • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 10 Subsequent to the Marcus Corporation project staff was directed by the Council to undertake a request for proposal process for redevelopment of the Bursch property. Eventually a decision was made to work with Frauenshuh Company on development of a new clinic facility for Park Nicollet. To date nothing has happened on this project. However, it appears there may still be some interest by Park Nicollet for development of this site once they have completed the large scale development that they are presently undertaking in St. Louis Park. In conjunction with the request for proposal process, Copeland - Mithun expressed an interest in undertaking a restaurant or theater project on the Bursch property. The Council at that time expressed an interest in having the staff work with Copeland - Mithun on the possibility of developing such a project on the Suburban Chevrolet site which it was assumed would be available for redevelopment in the near future. An agreement was entered into which granted Copeland - Mithun a certain amount of exclusivity for undertaking such a project on this site. At approximately the same time that staff began working to any serious degree with Copeland - Mithun, Child's Play Theatre approached the City concerning problems they were experiencing at their present location, Eisenhower School. Child's Play Theatre inquired of the possibility of the City assisting them in securing a new location. It was eventually decided that an effort should be made to incorporate a project to meet their needs in conjunction with the redevelopment of the Suburban Chevrolet site. Copeland - Mithun did state they would be willing to develop such a facility with assistance from the City. • In September of 1992, Steve Barberio of Child's Play Theatre informed the Council that he had concerns regarding when the Suburban Chevrolet site would become available for redevelopment. As a result of discussions with Mr. Barberio, staff was directed to explore the possibility of a free standing performing arts facility in the downtown area. A site that was looked at for this facility was between 7th and 8th Avenue north of Mainstreet, west of Hopkins Honda. In December of 1992 staff presented an extensive report to the Council regarding the feasibility of undertaking a stand alone performing arts facility. In January of 1993 the Council basically made a decision that they could not support a free standing performing arts • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 11 facility at that time. The Council did state it was interested in considering such a facility being incorporated as part of an entertainment complex project with the Suburban Chevrolet site being identified as the primary site for such a project. As a result of this action staff continued to work with both Copeland - Mithun and Child's Play Theatre to address various issues as relates to implementation of such a project. As a part of this process the City obtained an option to purchase the Suburban Chevrolet property. This option expires in March 1994. In May the Council and staff met to discuss a variety of issues regarding the performing arts facility. These included the following topics: o Potential size of facility o Cost considerations o Ownership - public versus private B. Summary of Current Proposal The following is currently being discussed as part of the overall redevelopment of the Suburban Chevrolet site in downtown Hopkins: o Construction of a restaurant facility - 7,000 to 10,000 square feet o Construction of a movie theater facility - 18,000 to 20,000 square feet o Construction of a publicly owned performing arts facility - 17,000 to 22,000 square feet It is anticipated these three uses will take up a majority of the site on the south side of Mainstreet, with the north side of Mainstreet left available for parking and possibly redevelopment purposes. A majority of the parking for these uses will be facilitated through the use of the parking ramp adjacent to the site. • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 12 C. Financial Aspects of Current Proposal The following are estimated public costs required to undertake the entertainment complex /performing arts project: o Land acquisition, demolition, remediation $1.1 million 0 17,000 to 22,000 sq ft performing arts facility (assumes public owned facility) D. Current Process $1.6 to $1.9 million Total $2.7 to $3 million As part of the development agreement which is being negotiated with Child's Play Theatre, they will be required to provide $350,000 for necessary leasehold improvements. If Minnetonka Dance were included in the project they would be asked to commit to $100,000 in leasehold improvements. These figures are above and beyond the costs as noted above. At the City Council meeting on May 18, 1993, the Council indicated an interest in pursuing a publicly owned performing arts facility with a size of approximately 17,000 to 22,000 square feet., The 22,000 square foot facility would accommodate Child's Play and Minnetonka Dance Theater. Copeland - Mithun, developer for the project, has indicated an interest in continuing to pursue development of the restaurant and movie theater portion of the entertainment complex, in conjunction with the City developing the performing arts facility component of the project. Staff is currently in the process of negotiating a Development Agreement with Copeland - Mithun for construction of the restaurant /theater facility. This development agreement would require the developer to complete the following: o A preliminary site plan o A preliminary project pro forma o An application for concept review o Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 13 o A preliminary project timetable o Preliminary letters of commitment from prospective tenants o Provide design schematic plans for the project o Apply for conditional use permit and subdivision of the property o Final financing commitment o Submission of construction plans In conjunction with the agreement with Copeland - Mithun, staff is presently proposing an "Agreement to Lease" document. This agreement would be executed by Child's Play Theatre and the HRA and detail various responsibilities to be performed both by the City and Child's Play Theatre. This agreement does make the construction of the performing arts facility contingent upon the restaurant /movie theater being constructed. Attached is a preliminary timetable as relates to completion of some of the major events required as part of the process. The option agreement currently held with the owners of Suburban Chevrolet require that a closing be scheduled by no later than March 15, 1994. Based on the schedule for completing the various tasks within the Child's Play development agreement, this date should be attainable provided the agreement is executed sometime in the near future. The current draft of the development agreement with Copeland - Mithun does not make construction of the movie theater and restaurant contingent upon the performing arts facility proceeding. E. Issues As related to the proposed performing arts facility the Council has the following issues to consider: o Size of the facility. With Child's Play Theatre it is anticipated that they will need a facility of approximately 17,000 to 18,000 square meet. However, Minnetonka Dance Theater, which the Council is also considering as a tenant of this facility, would need 4,000 square feet which would result in a total facility size of approximately 21,000 to 22,000 square Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 14 feet. If the Council wishes to proceed with this project a final determination will need to be made at some time within the reasonable future as to whether the smaller or larger sized facility should be constructed. Although there will be an additional cost, schematic plans can be developed for both size facilities. Following the completion of this process the Council would definitely need to make a decision on . facility size. It should be noted that the staff recently contracted with a local architectural firm to review the preliminary design /layout of the Performing Art Facility as proposed by CPT. In conjunction with this review it was felt that CPT is being very realistic in their request. However, it was felt that the overall size of the facility may have to be increased by 2,500 to 3,500 square feet to reflect such things as wall widths, additional circulation requests, mechanical needs and storage. If this additional space was required it could increase the overall public cost by about $240,000 to $340,000. o Cost issues. Child's Play Theatre, as part of their lease, would agree to pay all operating costs as relates to the performing arts facility. However, the capital cost of construction would need to be borne by the City. A very preliminary estimate of construction costs would range from approximately $1.6 million for a 17,000 square foot facility to $1.9 million for a 22,000 square foot facility. This budget would allow for a fairly basic facility without any special or unusual amenities. o Risk factors. What follows are factors associated with the performing arts project: - Possibility that Child's Play Theatre could have financial or other types of problems that would remove them as a tenant from this facility. - Possibility that the City would be requested by CPT to assume a portion of the operating costs. At the present time Child's Play Theatre feels comfortable that they will have sufficient revenues to pay all the operating costs for the term of the lease. If they did not experience the growth that they are anticipating• there is a possibility that they would not have sufficient revenues to pay these costs. Under this scenario they may be forced to approach the City for some • • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 15 type of financial assistance to pay these operating costs. o Benefits of project. It would appear there are a variety of benefits as relates to having a performing arts and entertainment facility in the downtown. These include the following: - Drawing new customer base into the downtown area. For example, Child's Play Theatre anticipates that they will have an audience of approximately 60,000 people per year, many of which are children. According to a study that Child's Play Theatre completed many of these people presently do not frequent downtown Hopkins. As a result of this new customer base, hopefully it would help to encourage additional redevelopment and investment in the downtown area. - It would help to create a unique identity for downtown Hopkins. It appears that as suburban retail development continues to occur, the niche for downtowns is moving more towards businesses such as service businesses, arts and entertainment, and destination retail. - Would provide a structure to undertake cultural activities and public events in Hopkins. - Would provide a positive resource for the use of the youth in the community. - Would allow for the redevelopment of a site which is being vacated. F. Alternatives What follows are examples of alternatives relating to the entertainment complex /performing arts center. o Undertake the project as currently proposed involving a publicly owned performing arts facility, and a privately owned movie theater /restaurant component. o Undertake a project involving a movie theater/ restaurant and retail component in place of the performing arts facility. • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 16 o Undertake project with performing arts facility and alternative uses which do not include a movie theater /restaurant. o Utilize Suburban Chevrolet site for relocation of grocery store and rehab existing grocery store for use as performing arts facility. o Do not redevelop site at this time. G. Future Actions Required If, at some point, the City Council is willing to proceed further with the performing arts facility and the entertainment complex, staff would propose the use of the following agreements: o Development agreement with Copeland - Mithun for construction of a movie theater /restaurant facility. o Agreement to lease with Child's Play Theatre V. OVERVIEW OF LAND USE ISSUES - GROCERY STORE AND ENTERTAINMENT COMPLEX At recent discussions concerning both the grocery store and the entertainment complex it was stated that the staff should look at how these projects interrelated with each other and the downtown area as a whole. In response to this request staff asked the firm of Dahlgren, Shardlow and Uban and Benshoof and Associates to look at the information which has been prepared for these projects and provide preliminary comments as relates to urban design, parking, and traffic issues. Attached is information from Dahlgren, Shardlow and Uban that has been received to date concerning this matter. In their report they have detailed various elements which could be incorporated into the overall design of these two projects to insure that they are well incorporated into the downtown area. As relates to the parking and traffic issue, staff has attached the preliminary findings from Benshoof and Associates. In conjunction with their review they looked at the following: • • Honorable Mayor, City Council and Council Elect Members June 18, 1993 Page 17 JKDEVEL2 o The available parking spaces between Ninth and Eleventh Avenue north of Mainstreet for the grocery store project under various project scenarios. o Parking demands as related to parking availability for the entertainment complex project. o Traffic issues. The general conclusion was that there are sufficient off street spaces within these areas to provide adequate parking for the two projects as proposed. With regard to the grocery store project Benshoof also found that parking availability may be adequate under the scenario of the Merriam Park buildings being retained. SuperValu may or may not agree with these findings. Benshoof also concluded that based on their initial analysis there may be sufficient parking capacity in this area to support a small development project, i.e., 5,000 square foot building on the northerly Suburban Chevrolet parcel. Lastly, Benshoof did not note any major transportation problems would result from the two projects proceeding. drq • Li 7 C) Z w c7 w J ; Sf; r r i � + r A 45r w t. , `.' i • ' - ,. % :S + 5: . a • is x i • EXHIBIT A 47 Z zz E z 0 o z ti) � ^^ v 0 1- "' p3 § 2 1 1 EXHIBIT B 11 2 1 1 1 11 1N3AV 4:16 '31N3AV 41OL 31N3AV 4111 i EXHIBIT C PARKING SITE PLAN . 60• REESE WAGNER ARCHITECTS 8220 COMMONWEALTH DRIVE EDEN PRAIRIE, MN 12/Z3, PROPOSED PARKING MAIN STREET PLAZA THEATER/RESTUARANT BUILDING 11000 MAIN STREET HOPKINS, MINNESOTA ARKING RAMP P X IORTH l COPELAND- MITHUN BUILDER /DEVELOPER 7625 METRO BLVD EDINA, MN 0 0 � 0 Ul 0 0 c f. 12th AVENUE 11th AVENUE 10th AVENUE 9th AVENUE MAINSTREET STUDIO LORAL PHOTO OUICK SUBURABAN CHEVROLET TMI TAX SER. CHIROPRATIC CONIC PREFERRED TRAVEL VACANT MR. OFFICE PIKES LODGE STATE FARM MAINSTREET ANTIQUES 00000 12th AVENUE 0 0 k. VA T BOSTON GARDEN BOSTON SUBWAY VACANT OUTDOORSMAN PARKING LOT MAINSTREET TRAD S BERT'S HAIR TRIPLE LAY TS FRAME DESIGN INS NTfPLAY SPORTS TROPICAL MN. 0 LIBRARY 10th AVENUE 9th AVENUE ��1 4 11th AVENUE 0 • CITY OF HOPKINS MEMORANDUM DATE: June 15, 1993 TO: Tom Harmening, Community Development Director FROM: Jim Kerrigan, Director, Planning & Economic Development SUBJECT: PRELIMINARY TIMETABLE, PERFORMING ARTS FACILITY Task Days to Complete - Execution of agreement to lease July /August 1993 - Preparation of specs for architect and Project Manager (CM) 14 days - Response period for architect - CM 14 days - Interview and negotiate, approve and execute contract for architect & CM 30 days - Programming phase and schematic drawings 45 days - Review and approval of schematic drawings 45 days - Preparation of construction drawing 90 days - Review and approve construction drawings 21 days - Bid period 30 days - Award and execution of contract document 14 days - Start of construction 30 days - Construction period 180 - 240 days JK06143B • • MEMORANDUM DATE: 17 June 1993 TO: Jim Kerrigan, Planning and Economic Development Director FROM: Geoff Martin RE: Urban Design Assessment of the Entertainmen Complex and Taits Expansion Following is a summary of our preliminary assessment of the urban design implications associated with the proposed Hopkins Entertainment Complex and the expansion of Taits Super Value. Purpose The main purpose of this assessment is to evaluate how the two projects may be integrated to fit within the urban character of Downtown Hopkins and to maximize the parking efficiency. Our study will focus on the urban design implications, such as, building massing, parking lot placement, parking lot landscaping, buffering for adjacent residential uses, impacts on existing buildings and the character of Main Street. The recommendations formulated from this study should be evaluated in conjunction with the parking and circulation assessment which is being prepared by Benshoof and Associaties. A plan illustrating our recommendations will accompany this memo. Assumptions: C ONSUL 1N( PLANNERS 1 ANDSCi \PE ARCHITECTS 33)1) FIRST AVENUE NORTH SUITE 2111 MINNEAPOLIS, A1N =H1111 632 339 3300 For the purposes of this assignment we are assuming the following: • The Concept to be evaluated for the expansion of Taits is that which proposes the removal of a full block of Main Street Buildings and introduces a suburban style shopping mall within an urban context. We are also assuming: the city council has reviewed the plans and staff reports associated with this concept; the council is familiar with the issues related to the removal of Main street buildings that are clearly stated in past staff reports and do not have to be repeated as part of this assignment. Twits Expansion • This assignment will focus on recommendations for integrating, as much as possible, the proposed projects into the urban development pattern and character of downtown Hopkins. PROBLEMS and OPPORTUNITIES Main Street Frontage The proposal calls for removing a full block of buildings fronting on Main Street between lOth and 1lth Avenues. The buildings that line Main Street form the "streetwall." The streetwall forms a sense of enclosure to the street and contribute to the comfortable pedestrian scale associated with Main Street. This problem is compounded by the fact that mainstreet buildings have been removed from the adjacent block for the used car lot. A two block void will be created in the " streetwall" if another full block of buildings are removed between lOth and 1lth Avenues. Recommendation: Parking Lot Buffers: Taits and the Used Car Lot To maintain the sense of a streetwall and enclosure that is created by a consistent line of buildings along the sidewalk, an architecturally designed low wall should be incorporated along all the parking lot frontage. This wall will also screen the view to the parking lots from Main Street. The wall should be 36in. to 42in. high and designed to compliment the character of adjacent buildings and the streetscape. Materials to be used should include brick, colored concrete, ornamental steel, or a combination of all of the above. Higher vertical elements such as ornamental lights, trees and possibly a gateway should also be incorporated into the wall design to enhance the sense of enclosure for pedestrians on the sidewalk (refer to the attached illustration). Access points at the corners of the parking area proposed on the used car lot should be highlighted with a gateway feature. These gateways will direct people to the crosswalks and discourage j- walking between the theatre and the parking lot. Both parking lots should incorporate buffers that are architecturally similiar to help integrate them into the streetscape character. Parking Lots: As the proposals stand two full blocks of parking will be fronting Main Street. This situation will open up a view to two blocks of parking from Main Street and from 1 lth Avenue which is a primary entry to downtown. The two block expanse of parking will also provide little protection to pedestrians from winter winds and will also contribute to dust and heat build up in the Downtown core. • Recommendation: Parking Lot Landscaping Parking Lot Perimeters The perimeters of the parking lots fronting on the side streets should incorporate a small setback, approximately 5 to 8ft. wide. The setback should be treated with a combination of overstory or ornamental trees, shrubs, and a low brick, concrete, or metal picket screen. A loft. wide landscaped setback should also occur along the rear lot lines where the parking lots are adjacent to residential property such as, the south edge of the Entertainment Complex and the north edge of the proposed parking area on the used car lot. These edges should be treated with a four season landscape that will incorporate a combination of overstory trees to buffer views from upper level windows, evergreens, and /or an approximately 6ft. high fence. Parking Lot Interiors Trees should be incorporated into the parking lot islands in the interior of the lots to breakup the negative image created by large expanses of parking and also to provide shade, reduce heat build -up and dust. Overstory trees or high pruned evergreens should be utilized in areas where snow is likely to be piled. The ground layer of the parking lot islands should be treated with materials that will not be damaged by snow piling such as, loosely laid brick, flag or field stone, or perenials that die back each fall such as daylillies or hosta. Site Lighting The lighting utilized for the parking lots should be a maximum of 20ft. in height and a similiar character to the standards used within the Main Street streetscape. 11th Avenue Frontage Eleventh Avenue is one of the main north /south connections between Taits, Main Street, the Entertainment Complex, and County Road 3. Streetscape elements should be extended one block north and south of Main Street to enhance this linkage and entry to Downtown. All the proposed parking lots along this route, including those proposed for the Entertainment Complex, and Taits should incorporate an architecturally designed screen. The treatment should include materials as discussed above and overstory or ornamental trees. Building Treatments The design of both the Entertainment Complex and Taits Supervalue will be the most critical element in integrating these developments into the Downtown. Following are general recommmendations for both buildings: Recommendations: • Facade treatments should incorporate similiar window placements and building lines as adjacent buildings on Main Street. • Building heights should not be more than twice the height of adjacent buildings. • Rooftop utilities should be screened from ground level views with the use of parapet walls or enclosures similiar in form, material, and detail to the primary structure. • A minimum of 20% of the first floor facade fronting Main Street should be windows and entries. • Building materials should include brick, stone or other materials compatible with the character of adjacent Main Street buildings. • The primary building entries should be clearly visible from Main Street. • Service areas should be screened from view from neighboring properties and streets either by locating inside buildings or utilizing screen walls made of the same architectural materials as the principle structure. • Window canopies should be encouraged to add an element of color and change and to reflect the character of Main Street buildings. Entertainment Complex • The building face should be built to the R.O.W. line on all three sides to maintain the streetwall. • A plaza should be incorporated at the entry on Main Street to act as a gathering space. This space could be utilized for outdoor performances and or an outdoor dining area associated with the proposed restaurant. • A bus drop -off area should be considered on either 12th Ave. or Main Street. ALTERNATIVES Taits If this project goes forward consideration should be given to a concept that retains the Miller Building at the southeast corner of 10th Avenue and Main Street and eliminates the retail space proposed to connect Taits with the retail complex to the east. The approximately 65 parking spaces proposed for the Miller Building site could be transferred to the site proposed for the infill commercial space east of Taits. This concept would retain a valuable building along Main Street, reduce the impact of loosing a whole block of Mainstreet Buildings, decrease the amount of parking lot frontage on Main Street, provide more parking closer to Taits front door, and still provide visibility to Taits. Entertainment Complex and Restaurant Another possiblity to consider is to locate an approximately 5,000sf restaurant at the southeast corner of the used car lot site. It is my understanding adequate parking would be available to serve the restaurant and the entertainment complex. The building should be located at the suggested site to break -up the expanse of parking lot frontage and be closely related to the entertainment complex. a ctel e c . $trfet 1 1 a.= ) �" Thin I1V LOREN Si waxx»v , n • er t t $text? v t Nctivl 6r • 4er -Ad vrlIal Residential Buffer Urban Design Assessment Entertainment Complex and Taits Expansion goessoliv N coryler egTe Walf or ra lP Jsecriem • �t�vu n'ah Parking Lot Edge Treatment: Street Frontage freir svat1 - 'r erVice Areas /01 ParWriol mot ,a r{atKTal✓I tTTeer ed wt 5' 14; grciil?re- -vra1 ream Tr s Hopkins, Minn: • Thid - treer , eteittee (i uM qM s7 • ro er dat1sal O/ers'Epy,r ever-Green liee6 w(4aTeert • Wexler 1-0r Lavdxa�i✓�v • rot-iv, ter , •$hrk+ktdi lf:sr rrvrtIci 7! erects • AG r uiI4M races w F'l1 ether 114ht heer 8c+iiai • ✓prly Flora. rreiaor- PAN ct r rWate tsce �� _ 'r A VD gill \ IIG rt rrrr� ill CO 07 Ipth Entertainment Complex and Taits Expansion Urban Design Assessment ra I _ it �, Jl riessitib r6rn �v� 'Per Vice Areas Fetal" tirlkr 6ailali reds-Fauravr7 t a ,, ">F. ICcriar par Wt; Lot 1.2pAciart h(atnralri dicer edie wry " t GrGLfitecinra) rose rTr 6 Farkt: - GO Alternate. Concept 'A' Hopkins, Minn IIU II GIU N 5I Lllti )Il4C. WI)I 7A\ • BENSHOOF &ASSOCIATES, INC. TRANSPORTATION ENGINEERS AND PLANNERS 7301 OHMS LANE, SUITE 500 / EDINA, MN 55439 / (612) 832 -9858 / FAx (812) 832 -9564 June 16, 1993 93 -27 REFER TO FILE: MEMORANDUM TO: Jim Kerrigan z FROM: Jim Benshoof and Ed Terhaar RE: Initial Review of Traffic and Parking Implications Regarding Prospective Downtown Redevelopment Projects PURPOSE The purpose of this memorandum is to summarize the preliminary results of the traffic and parking implications resulting from the following two prospective downtown redevelopment projects: Taits Supervalu area and the theater complex proposed for the existing Suburban Chevrolet site. • TRAFFIC IMPLICATIONS Taits Supery lu Area The proposed redevelopment of this area includes the closure of 10th Avenue S. to through traffic and making it an entrance to the parking lot. We see no significant problems in doing this. Currently, the street is used for both through traffic and as an entrance to the parking lot. This double use creates conflicts with those vehicles wanting to go through and those trying to park in the adjacent spaces. The closure of the street to through traffic would eliminate this problem. Because of 10th Avenue's local street nature, we see no problems with the displacement of the through vehicles to 9th Avenue and 11th Avenue due to the limited volume this movement comprises. Theater Complex The traffic generated from this site has adequate opportunities for exit and entrance to the complex and the adjacent parking facilities and therefore should have no significant problem accessing the site. Traffic will be dispersed over several streets around the complex. The increase in traffic volumes at the intersection of Main Street and llth Avenue S. likely will be adequately accommodated by the traffic signal at this intersection. On an overall basis, we see no significant problems due to the additional traffic generated by this site. Mr. Jim Kerrigan PARKING 'IMPLICATIONS • Faits Sypery lu Area -2- June 16, 1993 The two block area surrounded by 9th and 1 lth Avenues and by Main and North 1st Streets was used in the analysis of parking demand and supply. The municipal parking lots in this two block area, as well as immediately adjacent on- street parking spaces were used in the parking supply. Two different redevelopment scenarios were compared to the existing conditions for parking supply and demand. The existing condition analysis, with the uses as they are today, showed a parking demand of 537 spaces from 11 a.m. to 2 p.m. and a supply of 317 spaces for a deficit of 220 spaces. This deficit can be reduced to approximately 190 spaces based on considerations regarding a lower than normal level of activity at some of the retail and restaurants in this area. It should be emphasized that this relationship of existing parking supply and demand (i.e. deficit of 190 spaces) is solely for the purpose of comparing to the prospective redevelopment scenarios. An actual operating deficit of 190 spaces is not presently experienced because most of the employee portion of the total parking demand is accommodated outside the two blocks addressed in this analysis. The first redevelopment scenario involved the expansion of Taits Supervalu and its parking lot, the demolition of all of the buildings fronting Main Street between 10th Avenue S. and llth Avenue S., and the addition of general retail space across the closed portion of 10th Avenue S. This scenario showed a demand of 518 spaces from 11 a.m. to 2 p.m. and a supply of 460 spaces, for a deficit of 58 spaces. Thus, this scenario would result in substantially greater parking availability than the current situation. The second redevelopment scenario involved the same expansion of Taits Supervalu and the new retail space across 10th Avenue, but left 9,150 square feet of the eastern portion of the Main Street buildings intact for retail uses (i.e. building space in northwest corner of Mainstreet and 10th Ave. S.). This showed a demand of 543 spaces from 11 a.m. to 2 p.m. and a supply of 410 spaces for a deficit of 133 spaces. With the deficit under this scenario being slightly smaller than the existing deficit, this scenario would result in slightly greater parking availability than at present. Th ater C44nplex For the parking analysis of this site, the block on which the complex is to be located as well as the block immediately to the east were considered. The block to the east of the site, which is bounded by South 1st and Main Streets and by 10th and 11th Avenues, was included due to the availability of the 380 stall parking ramp. Other parking spaces used in the analysis included a small number in the southeast corner of the site itself, spaces in what is now Suburban Chevrolet's used car lot directly to the north, and immediately adjacent on- street parking, In analyzing the parking ramp block, it was assumed that all the uses and available spaces would stay the same in the future. Using this, it was determined that there was a demand of 223 spaces form 6 p.in. to 9 p.m. and a supply of 468 spaces, for a surplus of 245 spaces. • Mr. Jim Kerrigan Four different scenarios were considered for the theater complex. The first scenario involved the complex as planned, which includes the Children's Play Theater, a movie theater, and a restaurant, with some parking available on site and no development in the used car lot to the north. This resulted in a demand of 464 spaces from 6 p.m. to 9 p.m. and a supply of 473 spaces, including the 245 surplus from the ramp, for a surplus of nine spaces. The second scenario involved the complex as planned plus a 900 seat addition to the movie theater and a 10,000 square foot restaurant on the used car lot. This resulted in a demand of 756 spaces from 6 p.m. to 9 p.m. and a supply of 387 spaces, including those in the parking ramp, for a deficit of 369 spaces. The third scenario involved the complex as planned plus a 5,000 square foot restaurant on site and a 10,000 square foot restaurant on the used car site. This resulted in a demand of 567 spaces from 6 p.m. to 9 p.m. and a supply of 435 spaces, including those in the parking ramp, for a deficit of 132 spaces. The fourth scenario involved the complex as planned plus a 5,000 square foot restaurant to be located on the used car lot. This resulted in a demand of 498 spaces from 6 p.m. to 9 p.m. and a supply of 448 spaces, including those in the parking ramp, for a deficit of 50 spaces. In our judgment the fourth scenario provides the best balance in terms of parking supply and demand. The 50 space deficit under this scenario could readily be accommodated by the expanded parking lot in the northeast corner of Mainstreet and I lth Avenue addressed under the prospective Taits redevelopment. CONCLUSIONS - June 16, 1993 Based on the review presented in this memorandum, we have established the following conclusions: The proposed redevelopment plans pose no significant traffic problems relative to changes to existing roadways or new traffic generated. The Taits Supervalu Area redevelopment will function with a parking supply /demand relationship that is slightly better than existing conditions with the Main Street buildings in the northwest corner of Mainstreet and 10th Ave. S. (about 9,150 sq. ft.) left intact for retail uses. ▪ The theater complex, with an additional 5000 square foot restaurant development in the used car lot area, will function with an adequate parking supply /demand relationship. • The scenarios showing future elimination of parking on the southeast portion of the Theater site due to expansion of that development suffer due to a lack of parking spaces. It is advisable to leave this space dedicated to parking,