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CR 90-189 Pines Mobile Home SiteAugust 29, 1990 • • Ker gars, Planning eeEconomic A:_velapment Director P K 0 PINES MOTILE HOME SITE Council Report: 30 -189 Sta.f, E _gmgoneis app csvaa1 of the .L o1 • jni motion : Move to apereve ?' ..pt f: r . of the Pj. ee {obit HOle Court _�y__ ozsolair Corporatian r�.it Gonda t z o �as_eta loci_ sta f and author' e t teare nre- dpwelooment aeerrent . The pre- development agreement will be prepared for consideration by the HRA. on October 2, 1990. Overview. The developer has submitted a preliminary tax increment financing assistance application for a redevelopment project at The Pines Mobile Home site. The project would call for construction of the following: -- 120 unit market rate rental housing project - 20,000 square feet retail space The total estimated project cost is $10,000,000. The developer is requesting public assistance of approximately $2,000,000. Following review by the HRA at their August meeting the plan was presented to both the Business Council and Zoning and Planning Commission for concept review. Prior to either the staff or developer proceeding any further with this project the HRA needs to provide concept approval. o What are the c pecifics of the project? o What concerns or issues will have to be addressed? o Does the project comply with the City TIF Policy? o What process should he followed? o What are the specifics of the public assistnce? o Does the project comply with the existing designated land use? o What is the pre-development agreement? o What comments did the Bus ness Council and Zoning and Planning Commission provide on this project? o With what condition does staff recommend approval? o Preliminary Tax Increment Financing Assistance Application o Site Plan o Sample Pre-development Agreement o Memo from Kathy Bodmer • THE PINES SITE CR: 90-°189 Page 2 AMAXEitte Based upon the action requested, the City Council has the following items to consider: o What are the specifics of the project? The project as proposed would consist of the following: - 120 unit market rate rental housing - 20,000 square feet retail space The developer has prepared a site plan for the project. This site plan is preliminary at this time and probably needs to be modified and changed as the project is refined. The plans shows access to the site on both Shady Oak Road and Nainstreet. The residential development would be three floors in height. It is understood that the present plan is just at the concept stage. It will probably be revised substantially throughout the planning and negotiation process. le What concerns or issues will have to be addressed? There are a variety of items that will have to be addressed as part of the overall review process of this project. Some of these issues include the following: - retail use concerns - project design - displacement of low income housing - neighborhood impact - type of housing proposed - function and operation of parking garage - project feasibility - capability of developer to complete project - level of public assistance - land use issues -a traffic o Does the project comply with the City TIF Policy? The project as proposed would comply with the eligible uses for tax increment financing. One of the evaluation criteria identified in this policy is that all TIF proposals should obtain the highest possible private -to- public financial investment ratio. Specifically a 3 part private to 1 part public financing is identified for industrial projects. Housing and retail commercial projects are reviewed on an individual basis. The project as proposed would have a ratio of 4 parts private to 1 part public financing. • • TIE PINES SITE CR: 90-189 Page 3 o What process should be followed? Staff is recommending that following concept approval by the HRA and city Council that the developer execute a pre - development agreement. With approval of this agreement (possibly at October 2 HRA meeting), the developer would need to begin to address the various issues and concerns identified in the concept review stage. Sometime during this process the developer would complete a formal application for tax increment assistance. If this application received approval, a development agreement would be executed between the City and the developer. o What are the specifics of the public assistance? The developer is requesting the use of tax increment financing to accomplish the following: - acquire property -- relocation of existing residents -- roadway improvements site improvements The total amount of assistance being requested is approximately $2,000,000. This is approximately 20% of the total $10,000,000 project cost. o Does the project comply with the existing designated land use? The existing zoning for this site is R-4 Medium High Density residential. This zoning designation allows for the type of housing being proposed. The Comprehensive Plan guides The Pines for medium density residential. Furthermore the plan states the following: "The Pines Mobile Home Court located at the southwest corner of Mainstreet and Shady Oak Road would be allowed to be privately redeveloped in a combination of mid or low density housing" However, the Comprehensive Plan further states the following: "The City will not assist in the redevelopment of The Pines Mobile Home Court but through private action change will be considered to a co bination of commercial and mid- density housing." In order to accommodate the proposed project both the Zoning Ordinance and Comprehensive Plan would need to be revised to reflect a publicly assisted mixed use, residential /commerical, development. A rezoning under the proposed PUD designation would probably be most logical. • • THE PINES SITE CR: 90-189 Page 4 o What is the Pre - development Agreement? A pre- development agreement is a less formal document than an actual development agreement. It identifies issues, concerns that need to be addressed. It also establishes a basic schedule for items to occur. Either the HRH, or developer can terminate the agreement with relative ease. Although the PIRA has not used this type of agreement in the past, Holmes & Graven have stated they feel it does serve a benefit in that it provides a more formal approach to this early planning stage. This type of agreement usually extends 90 -180 days. o What comments did the Business Council and Zoning & Planning Commission have on this project? These comments presented at the Business Council meeting were for the most part positive. There seemed to be a feeling from a few present that they would be willing to support a plan with additional retail space over the 20,000 square feet detailed. The Zoning and Planning Commission review of the project also appeared to be fairly favorable. Some of the comments presented were as follows: o more retail space o lower building height for residential o concern about retail competing with the downtown merchants o one commissioner stated he was not in favor of retail o make sure surrounding neighborhood is involved in process o need traffic and market study o With what condition does staff reccmnnend apps oval. of the concept? that the City of Hopkins and hop :Uns Housing & Redevelopment is not obligated to take any further action or grant any future approvals as a result of this action Approval of the concept is defined as the approval of a plan which would consist of: - a mixed use residential/retail development in approximately the square footage and unit mix detailed on the preliminary plan • developer shall be required to comply with all requirements of the zoning ordinance. • THE PINES SITE CR :90_189 Page 5 PattERAIIMAN.2. The City Council has the following alternatives regarding this issues 1. Approve the action as recommended by staff. Under this action staff will begin working on the Pre - development Agreement for possible consideration by the HRA on October 2. 2. Continue for additional information. 3. Deny the action as recommended by staff. The BRA has previously stated that the staff should continue to work with the developer on this project. This alternative should be selected if the HRA feels that the input from Business Council, Zoning and Planning, or other groups has been sufficiently negative to warrant that no more staff time be dedicated to this project. 4. Provide concept approval but take no action as relates to the Pre - development. Agreement. The Pre -- development Agreement is not necessary to continue the negotiation or planning process. It, however, more formally defines this effort. • MEMORANDUM C I T Y O F HOPKINS Date: August 28, 1990 To: Jim K. From: Kathy B. Subject: Feedback to Pines Redevelopment ?reject This is a brief memo which will highlight any review of the Pines Redevelopment Project in light of the findings of our recent housing study. After thinking about a few of the major housing issues, I think that this redevelopment project would be beneficial for the City. The proposed redevelopment pro jest would redevelop the Pines Mobile Home site, a mobile home park consisting of approximately 100 mobile home car manufactured home units, into a combined multiple- family and retail development. The multiple family development would include the construction of a 96 -unit apartment building along with 3 8-unit townhouse buildings. Approximately 100 mobile home units would be replaced with 96 apartment units and 24 townhouse units. Some of the important housing issues which come to mind include: o What will be the impact on the City's already high percentage of multiple-family and renter- occuppied dwellings? o What will be the impact of this development to the adjoining neighborhoods? c What about the displacement of the low - income housing? • • Issues What will be the impact on the City's already high percentage of multiple- family 4nad renter-occuppied dwellings" The impact on the composition of the types of housing will be negligible. Converting approximately 100 waits of mobile homes to 96 apartment units and 24 townhouse units will not have a significant impact on the City's housing stock. lQasill Type Single Family 2,430 (28 %) 2,430 (28 %) Doubles 504 (6 %) 504 (6 %) Triplex 18 (.2 %) 18 (.2 %) Apartments 4,168 (48 %) 4,264 (49 %) Condominiums 1,017 (12 %) 1,017 (12 %) Townhouses 376 (4 %) 400 (5 %) Mobile Homes 100 (1 %) O Totals Source: Assessing 1990 City. of Hopkins Housing Stock Existing After Jevslopment 8,613 8,633 The percentage of apartment units and townhouse units would increase by only 1% respectively. One question that could be discussed since this project is in the concept stage, is whether there is any way that the City could require the townhouses to be owner-occuppied rather than rental. Would that be a feasible alternative considering the current townhousc/condomi.nium market? o What will be the :tweet of this development to the adjacent neighborhoods? This site is zoned in the City's Comprehensive plan as a medium - density area. The purpose of the medium - density area is to provide a buffer between the residential neighborhood and the commercial strip along 4a. inst In addition, the proposed redevelopment project would have a positive impact on the adjoining neighborhoods by improving and upgrading that site. a What about the displacement of low-income housing? One of the most important issues which will have to be addressed as this project progresses is how to accommodate the displacement of the low - income housing. Although this will be a challenge, it shouldn't stand in the way of pursuing this project. It is important, however, to be sensitive to this issue. Conclusion One of the biggest concerns from the housing study was the high percentage of multiple family and renter- occuppied dwellings in the City. Not only does the City have a high percentage of multiple-family dwellings, but the remaining development and redevelopment projects all call for more multiple - family dwellings. The concern is that the percentage of multiple family dwellings significantly outnumbers the percent of single-family dwellings. At the same time, the percent of renter- occuppjed dwellings far exceeds the percent of owner- occuppied dwellings. The proposed redevelopment project would not remove any single family dwellings, nor would it significantly increase the number of multiple - family units. to addition, the project would provide improved utilization of that area. It may be appropriate for staff to explore whether it would be beneficial to require the development of Owner- cccuppied units. In the face of an already weak condominium market, however, perhaps such a proposal would not be feasible.