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CR 06-039 Updated Alternative Urban Area Wide Review & Mitigation Plan for the Opus Hopkins Office Development CITY Or:: March 29, 2006 - Council Report 06-39 HOPKINS UPDATED ALTERNATIVE URBAN AREAWIDE REVIEW AND MITIGATION PLAN FOR THE OPUS HOPKINS OFFICE DEVELOPMENT (Updated AUAR and Mitigation Plan) Proposed Action Staff recommends that the City Council approve the following motion: Move to adopt Resolution 06-24 directing notice of publication and distribution of the Updated AUAR and Mitigation Plan for a ten-working-dav review and comment period. Overview In 200 I, Medica! Allina Health Systems proposed to develop a corporate headquarters for Medica on the SuperValu North Annex Site (Main Parcel) in the northeast quadrant of the State Highway 169 and Excelsior Boulevard interchange. Due to the size of that project, enviromnental review was required, and the City chose to prepare the Medica Corporate Office Development Alternative Urban Areawide Review (Medica AUAR). The City adopted the Medica AUAR and Mitigation Plan on August 21, 2001. However, Medica never proceeded with its proposed development. The Opus project on the North Annex property is required to update the AUAR. Opus Northwest, LLC, is now proposing an office development for this site similar in scope to what was being proposed by Medica. To proceed with this project, it was determined that the original Medica AUAR document would be updated by RLK Associates (they prepared the original document) to reflect the parameters of the Opus project. The AUAR update document discusses changes in potential enviromnental impacts and alternatives in mitigation measures as discussed in the original Medica Project AUAR document. The action being requested at this time is to authorize publication of a notice of availability of the updated AUAR document for comment. With this action, groups and individuals will have ten working days to comment on the document. As part of the AUAR process the AUAR will be published in the EQB monitor and local newspaper and have State Agency review. A schedule detailing the process for approval of the updated AUAR is attached to this report. A public open house is scheduled for April 12 (Raspberry Room, 5 to 7 p.m.) to provide both an update on the project and solicit comments on the updated AUAR. Based on comments received, the plan would be revised. The City Council will review the plan for approval on May 16. The actual AUAR document is being finalized at this time and will be provided to the Council in the April 7 update packet. Supportinl! Documents . Resolution 06-24 . Memo from RLK . Schedule for AUAR approval process G Financial hnpact: $_N/A Budgeted: Related Documents (ClP, ERP, etc.): Notes: Y/N Source: MEMORANDUM To: FROM: James Kerrigan, Economic Development Director, City of Hopkins John Dietrich, ASLA, RLK Incorporated March 30, 2006 DATE: SUBJECT: UPDATED AUAR AND MITIGATION PLAN FOR EXCELSIOR CROSSINGS This memorandum provides background on the Alternative Urban Areawide Review (AUAR) and surmnarizes the conclusions in the Updated Alternative Urban Areawide Review And Mitigation Plan For Excelsior Crossings (Updated AUAR and Mitigation Plan). 1. What is an AUAR? The AUAR process substitutes for an Enviromnental Assessment Worksheet (EAW) or an Enviromnental hnpact Statement (ElS) that may be required for specific qualif'ying projects provided they comply with the review assumptions and mitigation measures in the approved AUAR. The Enviromnental Quality Board states the following: A hybrid of the EA Wand ElS review processes, the AUAR uses a standard list of questions adapted from the EA W, provides a level of analysis for typical urban area impacts comparable to an EIS, and must include a mitigation plan. Since its content is uniform, scoping is not necessary; however, it has been voluntarily added to several reviews. A draft and final document is prepared and distributed in a manner similar to an EIS to ensure adequate review. The Metropolitan Councilor State agencies can object to an AUAR and force an appeal to the Enviromnental Quality Board. 2. What is an Updated AUAR? To remain valid, an AUAR must be updated if: (a) five years have passed since its adoption; (b) a comprehensive plan amendment is passed that allows more intense development in the AUAR study area than assumed in the AUAR; (c) total development in the AUAR study area or any specifically delineated subarea will exceed maximum levels studied in the AUAR; a substantial change in public facilities intended to serve the AUAR study area may result in adverse enviromnental impacts; (d) installation of public facilities will occur on a schedule other than that assumed in the AUAR or mitigation plan so that the likelihood or magnitude of adverse enviromnental impacts is substantially increased or the implementation of mitigation measures may be substantially postponed; (e) new information demonstrates that enviromnental impacts have been substantially underestimated; or (f) the responsible governmental unit determines that changes have occurred and consequently enviromnental impacts have been substantially underestimated. An update focuses on changes in assumptions and enviromnental impacts since preparation of the original AUAR. Memo to James Kerrigan Updated A UAR and Mitigation Plan for Excelsior Crossings March 30, 2006 Page 2 of 4 3. Why was the Updated AUAR and Mitigation Plan prepared? First, the proposed Excelsior Crossings development includes approximately 691,000 SF, which is 15% larger than the 600,000 SF project studied in the Medica AUAR. Second, Excelsior Crossings includes more than office uses, whereas the Medica project involved solely office space. Third, the Medica AUAR study area included only the North Annex property. Excelsior Crossings adds an 8,000 SF parcel along Jackson Avenue to the North Annex property to form its "Main Parcel" and uses a three acre parcel across Second Street NE (Chimney Parcel) for a regional stormwater pond. Fourth, the Medica AUAR must be updated to maintain its effectiveness beyond August 21, 2006. 4. What are the major conclusions in the Updated AUAR and Mitigation Plan? Surmnarv Excelsior Crossings is consistent with the Medica AUAR, and, in every category, it is expected that enviromnental impacts will remain the same or be reduced compared to the impacts described in the Medica AUAR. The Updated AUAR addresses all the questions on the EA W form, including land use and compatibility with City plans, wildlife and critical habitat, coverage types, adequacy of public and utility infrastructure, water use, stormwater management, water quality, traffic, air quality, noise, odors, demolition, and site contamination and remediation. Excelsior Crossings is compatible with the plans, goals, and objectives of the City. The Updated AUAR analyzes cumulative impacts for each question and includes a Mitigation Plan that specifies mitigation measures. The areas which may affect the properties and residents surrounding the Main and Chimney Parcels to the greatest extent are stormwater runoff, traffic, and compatibility with City plans. A summary of each follows. Contamination On Main Parcel Phase 1 and 2 Enviromnental Site Assessments identified a number of contaminants on the Main Parcel that must be remediated. These include petroleum products and other chemicals in the soil, asbestos, lead paint, and PCBs in florescent lights and ballasts. Opus will enroll the property in the MPCA's Voluntary Inspection and Compliance and Petroleum Brownfields Programs, prepare plans to remediate the Main Parcel, and implement those plans under the supervision by of the two MPCA programs. All remediation actions will comply with Federal and State laws. Stormwater The proposed stormwater management system will provide detention and treatment for the Site as required by the Minnehaha Creek Watershed District and City. Stormwater discharge from the 28-acre Main Parcel will be reduced from the existing rate of -2- Memo to James Kerrigan Updated AUAR and Mitigation Plan for Excelsior Crossings March 30, 2006 Page 3 of4 approximately 193 cubic feet per second (cfs) for the 100-year storm in the existing condition to less than 14 cfs with the proposed improvements. In addition to a reduction in the amount of flooding in the adjacent streets from Main Parcel runoff, the proposed regional pond on the Chimney Parcel will provide over two acre-feet of additional capacity for detention and treatment of stormwater runoff from off-site developments and the City's snow storage area. Negative impacts to Minnehaha Creek, a valuable natural resource and wildlife habitat, will be further reduced from those described in the Medica AUAR based on the additional capacity in the regional pond and the improved quality of storm water leaving the regional pond. Traffic Results of the 2006 Traffic hnpact Study reveal that Build traffic volumes were 16% lower than forecast in the Medica AUAR. The analysis identified two major factors that contributed to the decline in area traffic: (I) changes to MnDOT's freeway ramp metering strategy have reduced delays in accessing the freeways; and (2) the Alliant Techsystem's property east of the Project Site was redeveloped at a much lower density than assumed in the Medica AUAR. The analysis found that, because of this reduction in existing 2006 traffic, the area roadway network will accommodate the additional traffic generated by Excelsior crossings while remaining at or under traffic levels accounted for in the Medica AUAR in the 2006 design year. For the AM peak hour on an overall intersection Level of Service (LOS) basis, every intersection except one remained at the same overall LOS when compared to the Medica AUAR. The only intersection to change was the Excelsior Boulevard, Jackson Avenue, and Milwaukee Street intersection, which improved from a LOS D to LOS C. For the PM peak hour, all but three intersections remained the same. The State Highway 7 and Fifth Avenue intersection improved from LOS F to LOS D, the primary Main Parcel access on Jackson Avenue declined from LOS A to LOS B, and the Excelsior Boulevard, Jackson Avenue, and !Milwaukee Street intersection improved from LOS D to LOS C. The following suggestions to accommodate the additional traffic are proposed at the Jackson Avenue primary entrance to the Opus Hopkins Office Development: · Restriping of the southbound approach to extend the left turn storage bay length from 75 feet to 120 feet. · Design of the onsite eastbound approach to include a 105- foot right turn storage bay. · Installation of a traffic signal at the main entrance when warranted. · Adjustment of signage and striping on the northbound approach to create dual left turn lanes and a shared through/right turn lane. This measure should be completed concurrently with installation of the traffic signal. -3- Memo to James Kerrigan Updated A UAR and Mitigation Plan for Excelsior Crossings March 30, 2006 Page 4 of 4 Compatibilitv With Citv Plans The City certifies that its Comprehensive Plan complies with the requirements in Minnesota Rules Chapter 4410.3610, Subpart 1. The Project is compatible with the following: · Business Park Zoning District, year 2000. · Business Park Comprehensive Plan, year 2001. . CSAH 3 Corridor Study 1995. . City of Hopkins Stormwater Management Plan. The Project will be designed to meet the objectives of the City's Business Park Zoning District. The Updated AUAR identifies the access locations, which are consistent with the Medica AUAR. The City will review the detailed site development plans through the Planned Unit Development process. -4- UPDATED ALTERNATIVE URBAN AREA WIDE REVIEW AND MITIGATION PLAN FOR EXCELSIOR CROSSINGS (Updated AUAR and Mitigation Plan) SCHEDULE FOR UPDATED AUAR AND MITIGATION PLAN REVIEW AND APPROVAL PROCESS If the City Council orders distribution of the Updated AUAR and Mitigation Plan for review and comment, the review and approval process schedule will be as follows · April 6, 2006. Notice that the Updated AUAR and Mitigation Plan will be available on April 7, 2006, and of the public open house on April 12, 2006, is published in the Sun Newspaper. · April 6, 2006. Notice of public open house is mailed to area residents. · April 7, 2006. The Updated AUAR and Mitigation Plan is mailed to the EA W Distribution List, made available in Hopkins City Hall, and posted on the City's web site. · April 10, 2006. Notice of availability of the Updated AUAR and Mitigation Plan is published in the EQB Monitor. · April 11, 2006. Ten-working-day comment period for public comments commences. · April 10, 11 & 12, 2006. Ten-working-day comment and objection period for Metropolitan Council and State agencies commences depending on when each receives the Updated AUAR and Mitigation Plan · April 12, 2006. City holds public open house from 5:00 p.m. to 7:00 p.m. in the Raspberry Room in City Hall to provide information, answer questions, and take written comments on the Updated AUAR and Mitigation Plan. · April 25, 2006. Ten-working-day comment period for the public closes at end of City's business day. (An extra day has been included due to the Good Friday holiday.) · April 25, 26, & 27. Ten-working-day comment and objection period for Metropolitan Council and State agencies closes based on when each received the Updated AUAR and Mitigation Plan. · May 9, 2006. Planning Commission reviews responses to comments, Updated AUAR and Mitigation Plan, and any proposed changes. · May 16, 2006. City Council acts on responses to comments, Updated AUAR and Mitigation Plan, any proposed changes, and Record of Decision. CITY OF HOPKINS Hennepin County, Minnesota RESOLUTlON NO. 06-24 A RESOLUTION OF THE CITY OF HOPKINS DIRECTING PUBLICA TlON OF NOTICE AND DISTRIBUTION OF THE UPDATED ALTERNATNE AREAWIDE REVIEW AND MITIGATION PLAN FOR THE EXCELSlOR CROSSINGS OFFlCE DEVELOPMENT FOR A 1 0- WORKING-DAY COMMENT PERIOD WHEREAS, in 2001 Medica!Allina Health Systems proposed to develop a corporate headquarters for Medica on the SuperValu North Annex Site (Site); WHEREAS, in response to this proposal, the Hopkins City Council ordered preparation of the Medica Corporate Office Development Alternative Urban Areawide Review (Medica AUAR) for the Site; WHEREAS, on August 21, 2001, the Hopkins City Council accepted the Medica AUAR for the proposed Medica corporate headquarters project; WHEREAS, Medica!Allina Health Systems abandoned the project and the Site remains undeveloped; WHEREAS, Opus Northwest, L.L.C. (Opus) now proposes to develop the Site primarily for office space but also with uses not considered in the Medica AUAR, including some ancillary retail and possibly a hotel and medical manufacturing and research and development uses(Excelsior Crossings Office Development); WHEREAS, Opus anticipates development and storm water management facilities on parcels not included in the study area ofthe Medica AUAR; WHEREAS, major street improvements have been constructed next to the Site since acceptance of the Medica AUAR; 2006; WHEREAS, the Medica AUAR must be updated to remain in force after August 21, WHEREAS, on February 17, 2006, the Hopkins City Council ordered preparation of an update to the Medica AUAR; and WHEREAS, City staff and consultants have prepared the Updated Alternative Urban Areawide Review And Mitigation Plan For The Excelsior Crossings Office Development (Updated AUAR and Mitigation Plan). NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Hopkins hereby directs City staff to arrange for notice of publication of the Updated AUAR and Mitigation Plan in the EQB Monitor and in the local newspaper and to distribute copies of the Updated AUAR and Mitigation Plan to all persons on the Enviromnental Quality Board's EA W Distribution List for a 10-working-day comment period. BE IT FURTHER RESOLVED, the City Council of the City of Hopkins directs City staff to hold a public open house during the 10-working-day comment period to discuss and answer questions on the Updated AUAR and Mitigation Plan and to receive written comments on the document. BE IT FURTHER RESOLVED, that City Council of the City of Hopkins directs City staff to make a copies ofthe Updated AUAR and Mitigation Plan available for public review at City Hall,on the City's web site, and at the Hennepin County Library - Hopkins Branch during the 10-working-day comment period. Adopted by the Hopkins City Council this 4th day of April, 2006. Eugene J. Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk 2