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VII.2. Approval of Request for Proposals (RFP) for City-Owned Property; Elverum CITY OF HOPKINS City Council Report 2024-130 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Kersten Elverum, Director of Planning & Development Date: October 15, 2024 Subject: Request for Proposals (RFP) for City-Owned Property _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve the Request for Proposals (RFP) for 102 10th Avenue North, 501 Mainstreet, 525 Mainstreet and 15 6th Avenue North. With this motion, the RFP will be advertised on the City’s website and shared with developers. OVERVIEW The City of Hopkins/Hopkins HRA owns property that is currently being underutilized which includes the following: 102 10th Avenue North, 501 Mainstreet, 525 Mainstreet and 15 6th Avenue North Recently, there has been interest shown in these sites from residential developers and developing the sites is in conformance with the goals of growing the City’s tax base, providing a mix of housing options, supporting transit investment, and better utilization of land. The opportunity sites were discussed at the September 18, 2024, City Council meeting and the City Council supported the exploration of development proposals without a specific development vision. Proposers would be expected to meet the Inclusionary Housing Policy, if applicable, and encouraged to address sustainability. The intent of issuing an RFP is to explore the current options for development that exist in the private sector and determine if there is an opportunity that has greater community benefits than its current use. If approved, the RFP will be open until December 20, 2024. Proposals received by this date will be brought back to the Hopkins City Council for further consideration. The City/HRA is not obligated to sell the property to any of the responders to the RFP. SUPPORTING INFORMATION • Request for Proposals document Planning & Economic Development Request for Development Proposals Issued by the City of Hopkins/Hopkins Housing & Redevelopment Authority for 102 10th Avenue North 501 Mainstreet 525 Mainstreet 15 6th Avenue North Estimated RFP Schedule Request for Proposals Issued October 16, 2024 Proposal Deadline December 20, 2024 Proposal Review January 14, 2025 Proposer Interviews TBD Developer Selected TBD The City of Hopkins reserves the right to extend, modify or terminate the above schedule and/or process. PROPOSAL INFORMATION Complete proposals are due by 4:00pm central time on December 20, 2024. Send proposals to Kersten Elverum, Director of Planning & Development at kelverum@hopkinsmn.com Questions regarding this RFP should be directed to: Kersten Elverum Ryan Krzos Director of Planning & Development City Planner 952-548-6340 952-548-6342 kelverum@hopkinsmn.com rkrzos@hopkinsmn.com OPPORTUNITY STATEMENT The City of Hopkins/Hopkins Housing and Redevelopment Authority (HRA) is soliciting proposals for development on City-owned sites including the following: 102 10th Avenue North (Lot #800) 501 Mainstreet 525 Mainstreet 15 6th Avenue North Developers may submit a proposal for one site or multiple sites. Each opportunity is described below. 102 10th Avenue North (Lot #800) Today, this property serves as a free parking lot for transit riders on Metro Transit and to support parking for Hopkins’ downtown. It is underutilized for this purpose and the City is interested in maximizing its use and value by facilitating private development on the site. DEVELOPMENT VISION The Hopkins HRA seeks an experienced and qualified developer to construct a new development on a rare infill site adjacent to Hopkins historic downtown. The Hopkins HRA seeks proposals for development that would support the following City goals: • Grow the tax base • Provide employment and/or housing opportunities • Support the economy of Downtown Hopkins • Support ridership on the Metro Green Line Extension • Create a welcoming gateway to Downtown Hopkins from the Lake Minnetonka LRT Regional Trail • Provide appropriate transition from the historic downtown to the Avenues neighborhood Ideally a successful team will meet the following design goals: • Support numerous multi-modal opportunities including biking, walking, electric vehicles, transit and car sharing • Include attractive architecture that compliments the surrounding neighborhood and if a commercial use, establishes the design aesthetic for future commercial uses in the area • Incorporate many sustainable elements into the building and site design • Reduce vehicular access points into the site SITE AND BACKGROUND INFORMATION Property Description Lot #800 is located at the northwest corner of the intersection of 10th Avenue North and 1st Street North in Hopkins. The north property line is adjacent to the Lake Minnetonka LRT Regional Trail. Surrounding uses include single family homes on the north and west, and one- story commercial uses on the south and east. Today the site consists mostly of bituminous pavement with a small grass and tree-covered area on the north end where it abuts the Lake Minnetonka LRT Regional Trail. The property consists of three parcels totaling 0.69 acres or 30,328 square feet and is owned by the City of Hopkins. The Hennepin County Property Identification (PID) Numbers for the three parcels are: • 2411722310095 • 2411722310094 • 2411722310002 The site is located on the northern edge of Hopkins historic downtown, known for its interesting mix of locally-owned businesses and restaurants. Downtown Hopkins features a wide variety of amenities including a seasonal farmer’s market, outdoor concerts, the Hopkins Center for the Arts, Hennepin County Library, Driskill’s grocery store, Hance Hardware, Center Drug, and numerous restaurants and bars, making downtown one of most walkable and convenient places to live and work in the metro area. Access, Connections & Transportation Access In an effort to improve the pedestrian and bike experience in and near the site, proposers should plan to eliminate vehicle access off of 1st Street North. The west alley can be used as a secondary access to the site. 10th Avenue is scheduled for reconstruction in 2025 with full street, sidewalk, and utility replacement. Currently 10th Avenue is 36’ wide, it will be reconstructed to 28’ wide. Sidewalks Currently sidewalk exists on the south and east side of the property and must be replaced as part of development of the site. The existing sidewalks will be replaced with the proposed street reconstruction project. Regional Trail The site is adjacent to the Lake Minnetonka LRT Regional Trail, a popular recreational and commuter trail that hosts an estimated 640,000 annual visits. Traveling northwest, trail users travel through Minnetonka, Excelsior and Victoria. To the southeast, this multi-use regional trail connects trail users to a separated bikeway on the Artery at 8th Avenue, which connects to the Minnesota River Bluffs LRT Regional Trail going west and the Cedar Lake LRT Regional Trail to the east. METRO Green Line Extension The Downtown Hopkins LRT Station on the METRO Green Line is located within a 10-minute walk from the site. Enhanced connections via the Artery make the walk easy and enjoyable. The METRO Green Line Extension is a 14.5 mile extension of the METRO Green Line from Minneapolis to Eden Prairie. METRO Green Line Extension will provide a one-seat ride to downtown Minneapolis, the University of Minnesota, the State Capital and downtown St. Paul to the east, as well as major employment centers including the Opus Business Park, the United Health Optum campus and the Golden Triangle to the west. When completed, the Extension will be part of an integrated system of transit ways, including connections to the METRO Blue Line, which includes the MSP Airport and Mall of America, the proposed METRO Blue Line Extension, Northstar Commuter Rail Line and many major bus routes. It is anticipated that the METRO Green Line Extension will be operational in 2027. Bus Transit The site is conveniently located within 2 blocks of bus stops for Metro Transit routes 612 and 615. Route 612 travels between the Uptown Transit Center in Minneapolis, through St. Louis Park and Hopkins to the Opus Business Park in Minnetonka. Route 615 travels from the Excelsior & Grand development in St. Louis Park, through Hopkins, to Ridgedale Mall in Minnetonka. LAND USE Comprehensive Plan The site was identified as a possible redevelopment area in the 2040 Comprehensive Plan and guided as Downtown Center with a density of 20-100 dwelling units/acre. The Downtown Center future land use category calls for moderate density mixed use development designed to complement and enhance the existing development pattern and support the public investment in transit. Generally, the Downtown Center future land use category recommends development to be a mix of 25% commercial and 75% residential although different mix percentages will be considered. Zoning The subject property is currently zoned RX-N, Residential Office Mix zoning. The RX-N zone is intended for locations along corridors and neighborhood edges where residential, office and limited commercial uses can mix comfortably in a walkable environment. Hopkins’ Zoning regulations are organized around building types. The general building type (i.e. a small apartment building) or row buildings are preferred. General zoning standards are summarized in the table below. RX-N Development Standards Category Standard General Building Row Building (2 units min 6 units max per building, multiple buildings allowed) Height 1 story min., 2.5 stories max. 2 stories min., 2.5 max. Front Setback 5 ft. min. 25 ft. max 5 ft. Side Setback 5 ft. 12 ft. Rear Setback 20 ft. 20 ft. Hard Surface Coverage 60% 65% Vehicle and Bicycle Parking • Surface parking required behind building and enclosed parking is preferred • Office - 1/400 square feet • Residential – o 1/studio or 1 bedroom units o 2/2+ bedroom units • Reduced parking standards may be considered for affordable housing • Bicycle Parking o Residential – 1.1/unit o Office – 1/4,000 square feet Environmental A Phase I Environmental Site Assessment (ESA) was prepared for the property in August 2019. The site was previously developed as single family homes, which were demolished in the mid- 1970’s. The site was paved for parking by 1984. The Phase I ESA revealed no evidence of recognized environmental conditions, historical recognized environmental conditions or controlled recognized conditions in connection with the property. Storm Water Management Development must meet the storm water management requirements of the City and the Nine Mile Creek Watershed District, the regulatory agency for storm water and erosion control permitting. Utility Connections An existing 8” sanitary sewer main and 6” watermain are located within 10th Avenue North. Storm sewer is located to the north and west of the site. 10th Avenue North is in the 5-year capital improvement plan for reconstruction and utility mainline replacements are planned. Sanitary sewer will remain at 8”, and the watermain will be upgraded to 8”. Additional capacity upgrades are possible at that time. An existing 54” storm sewer trunk line is located in the alley to the west. An existing 12” stormsewer line is located in parcel 2411722310002. An easement for this stormsewer must be granted to the City of Hopkins if this parcel is included in the proposal. No upgrades to the storm sewer system are planned as part of the street reconstruction. 501 & 525 Mainstreet - 15 6th Avenue North Today these parcels are vacant but were once home to gas stations (501 & 525 Mainstreet), used car sales (525 Mainstreet) and a single family house (15 6th Avenue North). These are individual parcels and are not contiguous. Developers can submit a proposal for one or more of the lots. DEVELOPMENT VISION The Hopkins HRA seeks an experienced and qualified developer to construct a compact development on these rare infill sites on Hopkins’ historic Mainstreet. The Hopkins HRA seeks proposals for development that would support the following City goals: • Grow the tax base • Provide employment and/or housing opportunities, including affordable housing as defined by the City of Hopkins Inclusionary Housing Policy (if applicable). • Support the economy of Downtown Hopkins Ideally a successful team will meet the following design goals: • Support numerous multi-modal opportunities including biking, walking, electric vehicles, transit and car sharing • Include attractive architecture that compliments the surrounding neighborhood and if a commercial use, establishes the design aesthetic for future commercial uses in the area • Incorporate many sustainable elements into the building and site design SITE AND BACKGROUND INFORMATION Property Description The properties are located on the northwest block of 5th Avenue North and Mainstreet in Hopkins. The surrounding uses include a mix of commercial and housing, with building heights varying from one to four stories. Today the sites are undeveloped and maintained as open, grassy areas. There are three non-contiguous parcels identified by Hennepin County by the following PIDs: • 2411722420009 (501 Mainstreet) 0.4 acres • 2411722420166 (525 Mainstreet) 0.3 acres • 2411722420017 (15 6th Ave N) 0.21 acres The sites are located on eastern edge of Hopkins historic downtown, known for its interesting mix of locally-owned businesses and restaurants. Downtown Hopkins features a wide variety of amenities including a seasonal farmer’s market, outdoor concerts, the Hopkins Center for the Arts, Hennepin County Library, Driskill’s grocery store, Hance Hardware, Center Drug, and numerous restaurants and bars, making downtown one of most walkable and convenient places to live and work in the metro area. 501 Mainstreet 525 Mainstreet 15 6th Avenue North Access, Connections & Transportation Access In an effort to improve the pedestrian and bike experience in and near the site, proposers should plan for one vehicle access off the north/south streets and not off Mainstreet. Sidewalks Currently sidewalk exists on the front (Mainstreet) and the side streets and must be replaced as part of development of the site. METRO Green Line Extension The Downtown Hopkins LRT Station on the METRO Green Line is located within a 10-minute walk from the site. Enhanced connections via the Artery make the walk easy and enjoyable. The METRO Green Line Extension is a 14.5 mile extension of the METRO Green Line from Minneapolis to Eden Prairie. METRO Green Line Extension will provide a one-seat ride to downtown Minneapolis, the University of Minnesota, the State Capital and downtown St. Paul to the east, as well as major employment centers including the Opus Business Park, the United Health Optum campus and the Golden Triangle to the west. When completed, the Extension will be part of an integrated system of transit ways, including connections to the METRO Blue Line, which includes the MSP Airport and Mall of America, the proposed METRO Blue Line Extension, Northstar Commuter Rail Line and many major bus routes. It is anticipated that the METRO Green Line Extension will be operational in 2027. Bus Transit The site is conveniently located on the Metro Transit routes 612 and 615. Route 612 travels between the Uptown Transit Center in Minneapolis, through St. Louis Park and Hopkins to the Opus Business Park in Minnetonka. Route 615 travels from the Excelsior & Grand development in St. Louis Park, through Hopkins, to Ridgedale Mall in Minnetonka. LAND USE Comprehensive Plan The site was identified as a possible redevelopment area in the 2040 Comprehensive Plan and guided as Downtown Center with a density of 20-100 dwelling units/acre. The Downtown Center future land use category calls for moderate density mixed use development designed to complement and enhance the existing development pattern and support the public investment in transit. Generally, the Downtown Center future land use category recommends development to be a mix of 25% commercial and 75% residential although different mix percentages will be considered. Zoning The subject properties are currently zoned RX-D, Residential-Office Mix Downtown Center. The RX-D zone is intended for use in the downtown center in support of Mainstreet, where residential, office, and limited commercial uses can mix comfortably in a walkable environment. Hopkins’ Zoning regulations are organized around building types. The general building type (i.e. a small apartment building, mixed use building, or commercial building) or row buildings are preferred. General development standards are summarized in the table below. RX-D Development Standards Category Standard General Building Row Building (3 units min 8 units max per building, multiple buildings allowed) Height 1 story min., 4 stories max. 2 stories min., 3 stories max. Front Setback 7.5 ft min., 15 ft max. 7.5 ft min., 15 ft max. Side Setback 5 ft min. 12 ft. min. Rear Setback 0 ft min abutting an alley; 20 ft with no alley 20 ft min. Hard Surface Coverage 70% max. 70% max. Vehicle and Bicycle Parking • Surface parking required behind building and enclosed parking is preferred • No commercial requirements • Residential – o 1/studio or 1 bedroom units o 2/2+ bedroom units • Reduced parking standards may be considered for affordable housing • Bicycle Parking o Residential – 1.1/unit o Office – 1/4,000 square feet Environmental A Phase I environmental site assessment (ESA) was conducted in 2005, and a Phase II ESA and Phase II ESA Addendum were conducted in 2007. Additional Environmental Investigation Reports for the properties were completed in 2009. An additional Phase I ESA was completed for the parcels in 2013. 525 Mainstreet was a former car repair lot and gas station. There was a leaking underground/aboveground storage tank (LUAST) that was closed in 2017 (LEAK #19626). The closed status indicates that the MPCA required no additional investigation or cleanup of the petroleum contamination at the Site at the time of closure. However, If land use activities change, including property transfer, redevelopment, or excavation activities of the Site are planned, the historical recognized environmental condition of the “closed” release would then be considered a recognized environmental condition for the Site. 501 Mainstreet was a former gas station, built in the 1940s. The City had building demolished and removed two underground hydraulic hoists, one underground oil water separator tank, and six gasoline dispensers in 2014. No sign of contamination or a release was observed during the removal of the hydraulic hoists, oil water separator tank, or dispensers. There was a leaking underground/aboveground storage tank (LUAST) that was closed in 2014 (LEAK #19153). The closed status indicates that the MPCA required no additional investigation or cleanup of the petroleum contamination at the Site at the time of closure. However, If land use activities change, including property transfer, redevelopment, or excavation activities of the Site are planned, the historical recognized environmental condition of the “closed” release would then be considered a recognized environmental condition for the Site. 15 6th Ave N. was vacant until a single-family home was constructed in the 1940s. The home was demolished in 2014. The Phase I ESA revealed no evidence of remaining recognized environmental conditions, historical recognized environmental conditions or controlled recognized conditions in connection with the property. Storm Water Management Development must meet the storm water management requirements of the City and the Nine Mile Creek Watershed District, the regulatory agency for storm water and erosion control permitting. Utility Connections An existing 8” sanitary sewer main and 6” watermain are located within 6th Avenue North and 5th Avenue North. A 10” sanitary sewer main and 12” watermain are located within Mainstreet. No upgrades or replacements are planned at this time. Utility connections into Mainstreet are not desired. A 54” stormsewer trunk main is located within 6th Avenue North. A 15” stormsewer main in located in Mainstreet. Multiple inlet leads are adjacent to the 501 and 525 sites. No capacity upgrades or utility mainline replacements are scheduled at this time. - CITY POLICIES FOR DEVELOPMENT Affordability The City is interested in creating more affordable housing opportunities within the City and increasing owner-occupied housing choices. Proposals for housing that include affordable ownership opportunities are strongly desired. Public Assistance The City of Hopkins intends to receive fair market value for the properties and not provide a subsidy for development unless the project demonstrates clear, significant community benefits. Sustainability The selected development should incorporate many sustainable elements so that it serves as a model for future development, with a focus on alternative and/or reduced energy use. Electric vehicle charging stations are expected. Building certification through Energy Star or similar program is desired. Planned Unit Development The development proposal may seek a rezoning to a Planned Unit Development (PUD) to allow for greater flexibility in meeting the zoning requirements. The RFP proposal should indicate if the developer will be seeking zoning relief through a PUD and if so, what the developer is willing to offer in exchange for flexibility. RFP SUBMISSION AND SELECTION PROCESS Proposal Content Proposal responses should clearly and accurately demonstrate the capabilities, knowledge, experience and capacity of the development team to meet the requirements of the RFP and proposed project. Respondents must submit one digital file of their proposal containing the following information: • A cover page including the following information: o Developer/team’s name and mailing address o Name, mailing address, telephone number and email address of the primary contact person o Signature of authorized representative of responding developer or team o Address of the property(s) included in the proposal • Letter of Intent to purchase the property including the offered amount. • Identification and qualifications of the development team including architect, engineering firm and contractor (if known). Please indicate any women or minority- owned companies involved with the project and the percent of the overall budget their work represents. • List of two or more development projects of similar nature or scale. • Brief narrative that describes the proposed project and how it meets or exceeds the City’s vision and development objectives. • Preliminary Site Plan • Conceptual building elevations and renderings to illustrate the proposed project • List of project components, stories, square footages, and building materials. If proposing a residential development, include the unit mix, number of affordable units available at 30, 50, 60 & 80% AMI. • Estimated project construction cost • Project’s estimated economic benefits including total market value of development, BIPOC hiring plans, and overall employment potential • Project’s community benefits resulting from the project such as affordability, connections and support of surrounding uses, advancement of racial equity and inclusion, public spaces and amenities, landscaping and public art • List of environmentally-sustainable elements incorporated into the project • Projected timeline for land use approvals, purchase of site and construction of project • Developer’s current legal status: corporation, partnership, sole proprietor, etc. and supporting evidence of financial ability to complete project • Description of how the development team will interact with the community to assure the project addresses their needs and concerns • Any other information that is critical to the City’s ability to evaluate the proposal