Memo Background Grocery Store ProjectCITY OF HOPKINS
MEMORANDUM
DATE: August 8, 1991
TO: Mayor and City Council
FROM: Jim Kerrigan
SUBJECT: Background on Grocery Store Project
To assist with the Council's discussion of this item at their
August 13 workshop session, staff has been directed to provide a
summary of the background concerning this project. The City of
Hopkins and Ryan Construction have been working for a number of
years on this specific development. The following will serve to
summarize the background on the project as can best be'
reconstructed from existing files.
o March 1981 - Completion of report of the Hopkins Downtown
Committee. This report includes both a survey of building
owners and merchants, as well as shoppers, concerning their
thoughts.and perceptions as related to the downtown. A
couple of conclusions from this study are as follows:
o The highest number of respondents of the merchant and
building owners surveyed answered "retail merchants"
should be added to improve the central business
district.
o In the question, "What retail items might you buy in
Hopkins ?" the largest number of customer respondents
answered "groceries."
o December 1981 - Completion of Downtown Development,Program
by Barton - Aschman Associates Inc. The City had previously
contracted with this firm to identify opportunities for
revitalizing the downtown area. The study as prepared
detailed short -term project opportunities as well as a long -
range development framework. This study identified the
subject redevelopment area south of the LRT right of way as
a possible redevelopment area.
o April 1984 - Presentation by National Mainstreet Resource
Team. This'was the culmination of a process in which the
City of Hopkins had served as one of the first of six cities
in the State of Minnesota to participate in the Mainstreet
program. This program looks at improving downtowns through
Background on Grocery Store Project
August 8, 1991
Page 2
revitalization and historic preservation efforts. Their
final report detailed a variety of recommendations. One of
these recommendations stated that they felt there was
general retail potential in the downtown in the following
areas:
o Specialty retail
o Additional food service
o Additional convenience retail
o Nighttime entertainment and recreation
o Fall. 1986 - Ryan Construction submits plans for the
redevelopment of Pines Mobile Home Court to include a 38,000
square foot grocery store and approximately 38,000 square
foot of adjacent retail. Based upon input from adjacent
property owners, business groups, and a land.use study
completed by R. L. Wuornos and Associates, a decision is
made to not encourage this development on the Pines site.
.Ryan is subsequently asked to look at possibly locating such
a project in the downtown area.
o Summer 1987 - Planmark, a division of Super Valu, submits a
plan for redevelopment between 7th - and 8th Avenue N. of
Mainstreet. The project would involve closing 8th Avenue
and the purchase of United Store and Rapit Print.,
o January 1988 - Ryan Construction submits a plan for
redevelopment,of property between 7th and 8th Avenues, both
north and south of Mainstreet. The project would have a
37,000 square foot Super Valu on the Rudy Luther property,
and approximately 20,000 square feet of retail south of
Mainstreet to include both the existing retail and Bursch
property. This project is determined to be unacceptable as
the building designs for the grocery store utilizing only
the Rudy Luther property requires a northerly wall to be
constructed at an angle. This type of design is
unacceptable to Super Valu. Also, the Bursch property was
sold and is no longer available.
o May 1988 - Completion of market study for downtown Hopkins
by Laventhol and Horwath.. This study concludes the
following:
v
0
A grocery store was ranked as one of the types of
establishments with a significant undersupply within
the Hopkins trade area.
Downtown lacks a critical mass of store types and
sizes.
Background on Grocery Store Project
August 8, 1991
Page 3
o Downtown should orient itself toward specialty and
convenience oriented types of uses including grocery
stores.
o July 1988 - A telephone survey is completed by Decision
Resources, Ltd. concerning issues facing the City. Fifty
.six percent of those responding to this survey stated that
the City should place a major emphasis on redevelopment of
the downtown area as opposed to emphasis on development in
other areas` of the City.
o November 1988 - The City Council holds a workshop and
reviews various areas for future redevelopment. The Rudy
Luther block is ranked as the top priority for
redevelopment,
o November 1988 - The City Council and staff meet to identify
community goals for the City as relates to economic
.development. The goal approved is to develop an action plan
for active recruitment of another grocery store.or major
anchor for downtown.
o Fall 1988 - The City contracts with Public /Private Ventures
to review various alternative sites for the grocery store
retail project proposed by Ryan Construction. A number of
site alternatives are reviewed as a result of this process.
o Fall 1988 - Ryan Construction submits site plan detailing
the development of a grocery /retail project north of
Mainstreet between 6th and 8th Avenues.
o May 1989 — Approval by the City Council of Resolution 89 -32
requesting Hennepin County Regional Railroad Authority to .
release the light rail transit right of way which runs from
County Road 3 to the intersection of 9th Avenue N. and 1st
Street N. This action was being recommended to facilitate
redevelopment in this area.
o October 1989 — Community Development staff discuss with City
Council possible site alternatives for the grocery store.
City Council recommends studying alternatives which involve
the redevelopment of the Rudy Luther property.
o Fall 1989 - City Council and staff begin a variety of
workshop sessions to prioritize redevelopment activities.for
the City of Hopkins. The grocery store /retail project was
ranked as the number one priority, along with construction
of a movie theater.
o January 26, 1990 — City Council authorizes sale of $2.8
million redevelopment bond. This bond is financed with
Background on Grocery Store Project
August 8, 1991
Page 4
existing tax increment dollars being generated within.the
downtown area. Within this bond, $1.1 million is designated
to be utilized to facilitate construction of a grocery store
in the downtown area.
o Spring 1990 - Ryan Construction submits revised site plan
detailing development of 37,000 square foot grocery store,
20,000 square feet of retail between 6th and 8th Avenues
north of Mainstreet. The project would include acquisition
including the residential area north of the railroad right
of way.
o April 30, 1990 - The City holds a public hearing to adopt a
tax increment plan for approval of Tax Increment District
2.3 which is located between 6th and 7th Avenues north of
Mainstreet. This plan specifically details the possible
redevelopment of this area with a grocery store /retail type
of project. _
o Spring 1990 - The City Council approves updated
Comprehensive Plan. This plan identifies most of the
subject area as a potential redevelopment site.
o May 1990 - ' Residents within the project area are notified of
a potential redevelopment project. They are subsequently
provided informational update letters on November 2, 1990,
and March 6, 1991.
o December 1990 - Hennepin County Regional Railroad Authority
adopts a resolution which approves the use of HCRRA property
between 6th and 8th Avenues as a development site for a
grocery store/retail project and directed that a formal
.agreement be prepared between the City and the HCRRA.
o March 1991 - City staff and Ryan Construction meet with
property owners in the project area as well as adjacent
property owners to discuss the specifics of the project.
o April 1991 —City Council approves a concept plan for
project.
o May 1991 - A redevelopment agreement is approved and
executed between the City of Hopkins and Ryan Construction.
This agreement details the specific responsibility of both
parties as relates to undertaking of this project.
Summary
As a result of the discussion and studies undertaken by the City
Council and other groups over the last several years, the project
as proposed was initiated based upon the following:
Background on Grocery Store Project
August 8, 1991
Page 5
1 Market is available for additional grocery store space.
2. To facilitate redevelopment of underutilized /substandard
commercial area.
3. To. respond to growth needs of existing grocery store with
respect to space and parking.
4. To preserve /expand anchor draw to downtown Hopkins.
5. Proposed site meets following criteria:
- Underutilized /substandard commercial area
- Good transportation access
- Portion of site already zoned commercial
- Requires acquisition of minimal number of commercial
structures
- Is of sufficient size to accommodate project
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