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II.1. Review of Concept Plan for Footprint Development; Elverum 1 Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: April 8, 2025 Subject: Review of Concept Plan for Footprint Development _____________________________________________________________________ PURPOSE Footprint Development requests Concept Plan review for a proposed two-phased development along Mainstreet. The concept proposes an initial phase consisting of a 38-unit three-story apartment building at 501 Mainstreet with a 21-stall surface parking facility at 15 - 6th Avenue North. The second phase of the concept development is a 33- unit three-story apartment building at 525 Mainstreet. The City Council is asked to review and provide initial comments and feedback on the concept plans prior to a formal land use application. Staff is specifically looking for comment on the potential Planned Unit Development form of approval. Recommendations and opinions expressed by the Council as part of a concept plan review are for guidance only and are not to be considered binding. INFORMATION Concept Overview Address: 501 Mainstreet, 525 Mainstreet, and 15 - 6th Avenue N Applicant/Owner: Footprint Development, Applicant / Hopkins HRA, Property Owner BASE ZONE: RX-D EXISTING USE: Undeveloped (former fuel/service station, auto sales lot, and residence) BUILDING TYPES ALLOWED: General Building, Row Building PROPOSED USE: Household Living, 5+ units (38 proposed units in phase 1 and 33 units in phase 2) Standalone Surface Parking will need to be authorized in a PUD BUILDING TYPE SELECTED: General Building PERMITTED/CONDITIONAL: Permitted/PUD SITE AREA 0.91 ac (39,405 sf) DENSITY: 78 units/ac BUILDING SIZE: Three Stories COMPREHENSIVE PLAN DESIGNATION: Downtown Center (20-100 units/ac) Planning & Development 2 Background Timeline Oct 2024 Request for Proposals (RFP) Issued • For development sites: o 501 Mainstreet, 525 Mainstreet and 15 - 6th Avenue North o 102 - 10th Avenue North (Lot 800) • Based on developer interest and a desire to put HRA-owned land into productive use Dec 2024 Proposals were accepted through December 20, 2024. • One proposal was received from Footprint Development for the Mainstreet and 15 - 6th Avenue North properties. Jan 2025 Feb 2025 Reviewed by the City Council • Closed-door meeting on January 14. • Based on City feedback, the developer adjusted the site plan to add additional parking, • Again discussed at a February 4 closed-door City Council meeting. The City Council elected to continue discussions and take next steps with the developer through a Preliminary Development Agreement Mar 2025 Preliminary Development Agreement Approved by City Council on March 4, The developer hosted a neighborhood meeting on March 12, 2025, at Hopkins City Hall. • A copy of the meeting notes is included as an attachment. Planning & Zoning Commission Reviewed the Concept Plan Apr 2025 City Council Concept Plan Review The project proforma will be reviewed by the City’s financial advisor and environmental site assessments will be updated Jun 2025 Staff and the City Attorney will negotiate the terms of a Purchase and Development Agreement which will be brought to the HRA and City Council for approval. Later in 2025 Anticipated Development Plan submittal The procedure includes a public hearing and recommendation by the Planning & Zoning Commission for the rezoning and approval of Site Development Plans. City Council makes final decision on the application 2026 (Expected) If approved, construction would start Development Policy Consistency Development Code (Zoning) A summary of applicable zoning requirements and a cursory evaluation against determinable elements of the proposal is included here. The developer should note the identified requirements and seek to address any deficiencies where feasible. 2 Any remaining zoning code discrepancies may be addressed through the Planned Unit Development process. In the Planned Unit Development process the City expects to receive public benefits that meet or exceed flexibility granted from the typical standards. A few of the zoning requirements, identified below, are expected to be among deviations in the Planned Unit Development request. Off-Street Parking The concept as whole would not meet the underlying vehicle parking requirements. The size of the site makes it impractical to construct below grade parking, as much of the space would be maneuvering lanes with few actual stalls. The developer has stated that the units would be generally marketed toward prospects that are more inclined to a car-less lifestyle. Additionally, the site is in an environment with access to transit and other forms of transportation and within proximity to amenities meeting daily needs. The developer also proposed offering a car share amenity. The first phase would be developed with a parking ratio closer to the minimum requirements (23 stalls for 38 units proposed; 45 stalls is the required minimum). The developer has indicated that the design of the second phase may vary based on the performance of the first. The Development Code allows for credits and reductions for provision of bike-share, car-share, and for affordable units. Additionally, the amount of required stalls may be reduce through alternative compliance measures involving the preparation of a travel demand management plan. However, to meet the practical needs of residents and guests the City may look to explore parking permits within a nearby City facility and/or expanding on-street parking where practical. Off-Site Parking Residential parking is required to be on the site of the building it serves. The City Council and staff encouraged the developer to maximize the amount of parking available to residents. As such, the 6th Avenue N lot is proposed as surface parking. While this would serve the immediate need, it also represents a “land banking” opportunity. Should car ownership and transportation characteristics change in the future, redevelopment of the parking area could occur. Setbacks and Impervious Cover In general, the building is located close to the sidewalk /street with the intention to create an edge for the 3 pedestrian realm and for a more urban presence. The proposed building locations would conflict with street- side setback requirements. The lessened setback also allows for a maximization of the size of individual units and the resulting walk-up style. Additionally, the concept for 501 Mainstreet and potentially the surface parking lot on 6th Avenue exceed the allowable impervious coverage. It appears the sites may cumulatively meet the 70% requirement, which staff finds to be a reasonable approach. Additionally, the developer explore semi-pervious surfaces, such as porous pavers/pavement. The developer is expected to detail how the flexibility offered by the Planned Unit Development is offset with a higher quality design and/or meeting other City goals. Items typically consider when evaluating the use of a Planned Unit Development could include, but is not limited to: • Public Art • Natural resource protection and storm water management • Pedestrian and bicycle facilities • Enhanced sustainability or livability elements • Energy conservation and renewable energy • Enhanced Streetscape elements • Enhanced transit facilities • Enhanced landscaping and buffering • Native and/or Salt-tolerant plantings • Other suggestions from Planning & Zoning Commissioners A significant aspect of the development expected to be offered by the developer as an offset is certification through the Passive House Institute. Passive House Certification sets rigorous energy efficiency standards and tied to specific performance criteria. The developer is expected to provide greater detail related to the sustainability considerations during the presentation. Comprehensive Plan A detailed list of the applicable goals and policies of the Comprehensive Plan addressed by the concept is available here. In general, the concept is responsive to the goals and policies related to compact urban development in downtown Hopkins; encouragement of transit, biking and walking; building sustainability and energy efficiency; and affordability and options in housing. Inclusionary Housing Policy The City’s Inclusionary Housing Policy would apply to the project. The policy requires units to be constructed and offered at an affordable rent as moderate-income units at levels based on one of two options. Either 10% of the units at 60% of the Area Median Income (AMI); or 5% of units at 50% AMI. The development is expected to comply with this requirement by providing units affordable at 60% of Area Median Income. 4 Sustainable Building Policy The City’s Sustainable Building Policy may be in place by the time formal land use applications are submitted. Staff expects that the Passive House certification likely would significantly satisfy/exceed much of the policy. However, the developer may also have to address specific aspects of the universal provisions that may not already be covered by the Passive House certification. Staff believes exceeding the policies requirements may be viewed as an offset in the Planned Unit Development. Planning and Zoning Commission Review The Planning and Zoning Commission reviewed the concept plan at their March 25, 2025 meeting. The Commission expressed support for the development generally and the quality of the design, specifically the sunken courtyard. The Commission encouraged the developer to find a solution to address any parking concerns. Additionally, Commissioners emphasized the importance of the pedestrian experience along the frontage of the building, including discussion about multiple front entrances. Staff Comments Staff distributed the concept plans for review and comment to other City departments, including Engineering, Building Inspections, Fire, and Police. Below is a list of comments the developer should consider in moving forward with developing plans for the formal land use approval process. • Prepare travel demand management plan as part of a request for relief from off-street parking standards. • Ensure that a 10-foot separation from existing buildings is provided for emergency access, light and air. • Consider the use of semi-pervious surfaces. • Re-evaluate the use of metal panels on street facades as minor cladding element. Composite or Fiber Cement would be acceptable alternative. • Proposed balconies conflict with design requirements. • Utility equipment is expected to be located inside, unless if doing so conflicts with the equipment’s function. • A survey of existing trees on the site is required, which is to include identification of significant and contributing trees. • Explore ways to enhance landscaping around perimeter of surface parking areas. • Develop plan for servicing of refuse and recycling containers. • Consult with Nine Mile Creek Watershed District for stormwater treatment requirements and permitting. • Consult with Hopkins Public Safety staff to explore ways to promote and support resident safety. • Work with City Staff and Metro Transit for possible enhancements to bus stops adjacent to the site. NEXT STEPS The HRA and City Council will consider a Purchase and Development Agreement for approval. With the agreement in place, the developer is expected to work towards a formal land use application submittal later this year. 6 STALLS21 STALLS Main Street 501 Mainstreet Minutes # of attendees: 14 + 3 staff Questions • Are they putting up more apartments here? • Do you own those lots? • Do you develop other properties? • What company are you with? *presentation at 5pm* Questions - How many charging stations? - Are there buildings being torn down? There’s a building in between there. - Is there a reason for the step-down garden units? - How come your left building is crooked? - Any elevators or handicap accessible units? - Maybe you’ll share the slides with us? - Do you have any pictures of what the property looks like now? - Without elevators, with people furnishing units, concerns over moving in – will there be furnished units? - What other multifamily or other properties has footprint developed? - In the buildings that you have, how many cars do people actually have? If you have 40 units, is that 40 cars? - So once you’ve met the # of parking spaces, do you have means of limiting tenants who don’t have vehicles? o The City does have requirements for MF tenants parking? - So, if your calculation is right, 50% have cars, you’ll be 14 cars short. Those cars are going to cluster up 6th Ave. - What would be the impact of the second building on sunlight and views to existing building in between them? - Have you done any parking or traffic impact studies or plans to do that? - Are your buildings pet friendly? - So you have a dog run, if you have dogs there, where are they going to toilet if you don’t have any grass available? - Do you have an estimate on rent? - During construction itself, I live next door, do you have an idea on where to accommodate construction and delivery vehicles? - How’s leasing going at solstice? - What is your renewal rate? - What are the buildings that are housing this project? You’re surrounded by apartments? - What is your square footage on your units? - What’s the foundation size? - What is the heat and air conditioning? But only down to a certain temperature? - To clarify, you’re talking just over 70 units between both phases of development? - Three story, maybe four story, what would influence your decision? - Are any of those lots public? Guests couldn’t park there overnight? - So your first phase is mainstreet and 5th ave corner? - Do you have an onsite manager and office in the building? - In order to foster the eco-conscious goal of your property, are there any creative solutions to encourage reduction in cars – work with metrotransit for passes? - If you find that there a lot of vehicles in the first phase, so you’ll restudy for the second phase, what would be the plan then? - Do you anticipate housing demand continuing to grow? There’s been two really big projects in the area. - Is it a big draw, the air quality? - What’s your background, what were you doing 5 years ago before you started a development company? - I’m just curious, with the corners you have going on there, you;ll have buildings on two of your four corners, limiting view of 2 sides of your renters – will those units be cheaper? - Do you have controlled access? - I missed the first part, is this all electric? - So laundry? - Sewer line has been updated – studies on where sewer is going in for the load? - Got a name for the building? - How many cards did you send out?