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CR 92-107 Alleyscape Feasibility Report .. April 29, 1992 , "'( y 0 :m: o P K \ ~ council Report No.: 92-107 PUBLIC HEARING ALLEYS CAPE FEASIBILITY REPORT Pro-posed Action Staff recommends the following motion: "Move to accept the Alleyscape Feasibility Report prepared by RLK Associates." Approval of this motion will only formally accept the feasibility report, and will not order any of the recommended improvements to be made. Overview. At the April 7th work session, council reviewed some of the findings of the alleyscape feasibility study. The main intent of the meeting was to ensure that council was comfortable with the process, results, and preliminary recommendations of this feasibility study. Council indicated their comfort level later that night at the regularly scheduled Council meeting by proceeding with the study and scheduling a public hearing for May 5th to formally review the feasibility report. Notices of the pUblic hearing have been mailed out to all property owners of the 8 block study area. Primary Issues to Consider o What were the objectives and goals in preparing the feasibility report? o How would this project be funded? o What are the Council's options? o If Council adopts staff's recommendation, what further Council action would be required? supportinq Information o Detailed Background o Analysis of Issues o Feasibility Report Works Director iI>- council Report 92-107 Page 2 Detailed Background The alleyscape improvement project undertaken by RLK Associates began in October of 1992. It began with the planning and analysis phase and continued into the current feasibility stage. The planning and analysis report presented to Council on December 12, 1991 reviewed the study area in a comprehensive manner, identifying potential projects that would promote the visibility and ultimately the retail/economic vitality of the Hopkins downtown area. RLK was directed to develop an improvement program with a pUblic/private partnership incorporating participation of private sector and public TIF funding. The planning and analysis phase identified 74 projects covering a 3 year period totalling approximately 2 million dollars, of which 28 projects totalling $837,500 were identified for 1992. Reaction from the business/property owners was generally positive and the process of identifying potential improvements was a valuable step. Support for a feasibility study of the 1992 projects was based on the positive response from the business owners attending the meeting. RLK Associates was subsequently authorized to undertake a feasibility study of the 1992 projects. Base maps were prepared and meetings were held with staff and property owners on March 12, 13, 26 and 27, 1992. The number of projects was substantially reduced during the above three week period as property owners discussed the improvements, the private/public cost, and the impact a 1992 project would have on the businesses in the study area. At the conclusion of the March 26 and 27 meetings the high priority projects were reduced to approximately 20 projects with a total budget of approximately $450,000. Subsequent to the March 27 meeting, RLK staff continued to meet with small groups of property owners to further discuss the improvement projects. The high priority project list was further condensed after these meetings, focusing on the trash/recycling centers, lighting, selected private improvements and parking lot renovation. The current project list identifies 20 plus projects with an estimated budget of $270,000 of which up to $80,000 may be considered private improvements. Analysis of Issues o What were the objectives and goals in preparing the feasibility report? The three main objectives in the early stages of this project were to determine the overall support for such a project, was the timing right for a 1992 project, and could the project be funded with a pUblic/private partnership system. The response to these issues from the property owners and DRC members in the planning and analysis stage of the project were: council Report 92-107 Page 3 The timing for an alleyscape improvement project to be constructed in 1992 was found to be acceptable. The scope of such a project was well received by the property owners and business people in the downtown area. There generally was strong support for using a comprehensive approach to studying and eventually improving the alleys and parking areas of the CBD area. projects to the pUblic right-of-way should not be assessed out. Funding mechanisms through the city's loan assistance programs should be made available as much as possible for improvements on private property. The three main obj ecti ves that were researched in the planning and analysis stage of the project were discussed further during the feasibility stage. Response from the property owners changed somewhat during this period to a more conservative approach. The comments received during this period changed the scope of the project from a detailed improvement program to more of a maintenance program as indicated in the background section of this report. The general conclusions of the feasibility study are as follows: There is general support of the project as proposed in its revised state in the feasibility report. This is especially true for the trash/recycling area projects if an economic benefit can be demonstrated, and the administration of the program can be properly managed. A number of public projects, many of them maintenance improvements, should be done to correct problems areas, thereby demonstrating a commitment to the alley improvements. Area businesses do not want an extended construction project. Projects need to be phased carefully. Parking spaces on private as well as public property are a valuable asset, and reduction of these spaces is generally not feasible. Business owners support improvements but not with added assessments to private property. Do not plan any improvements to block 4 (grocery store site) or block 8 (Bursch's site) until potential redevelopment issues are resolved. . council Report 92-107 Page 4 o How would this project be funded? In December of 1989 the city allocated, as a part of a $1. 3 million redevelopment bond, $450,000 for an alley improvement proj ect. These funds, along with tax increment reserves which the city has on hand, would be the primary source of funding for the proposed project. o What are the Council's options? Accept feasibility report as recommended. Not accept feasibility report and direct further action. Accept feasibility report and order recommended improvements. o If Council adopts staff's recommendation, what further Council action would be required? staff's recommendation is to only accept the feasibility report, and not at this time order any of the improvements to be made. However, if Council receives positive comments towards the maintenance improvements recommended in the feasibility report, staff would recommend that on May 19th Council further review these maintenance projects and adopt a resolution ordering the; improvements to be made.