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MemoDATE: TO: FROM: SUBJECT: Since that Laventhol & Wonson of issues. MEMORANDUM June 20, 1988 Zoning and Planning Commission Nancy S. Anderson R. L. Johnson Development At the last Zoning and Planning meeting the Commission continued the R. L. Johnson proposal in order to receive more information on the following two issues:: traffic concerns at County Road #3 & llth Avenue South - information on the CBD Market Analysis meeting, staff has met with Steve Kotvis of Horwath regarding the Market Analysis and Mitch Benshoof & Associates regarding the traffic MARKET ANALYSIS. Mr. Kotvis has reviewed the proposed development and prepared comments. The comments are enclosed for your review. There are both positive and negative impacts with this development, but the positives outweigh the negative impacts. He stated that this development can benefit the City and should be supported by the City. He also stated that efforts should be made to link the downtown to this new development so this development is beneficial to the downtown businesses. Some of this can be done by coordinating events, sales, etc. or by having the new development become members of the downtown business group. TRAFFIC ISSUES Mitch Wonson of Benshoof & Associates did a preliminary traffic study of the intersection at County Road #3 & llth Avenue. Enclosed for your review is Mr. Wonson's report. He made traffic forecasts with the following assumptions: - no development as of November 1988 - 18,800 sq. ft. building as of November 1988 - 8000 restaurants as of November 1988 R.L.Johnson memo June 20, 1988 Page 2 Mr. Wonson concluded that the intersection will have to be improved irregardless of this development, but the timing of the improvements to the intersection speeds up with the development impacts on the intersection. Our immediate concern is the impact of the 18,800 square foot development since that is the proposal before the Commission. Mr. Wonson concluded with this development that the intersection does not have to be upgraded before the development opens, but should be done soon after. The design of the intersection presents a problem because of the llth Avenue South access. Specifically the left turn into the R. L. Johnson site has the potential to back -up into the intersection. After the final design is completed for the intersection, there are four alternatives that could be recommended for the left turn. These four alternatives are: - a full median on llth Avenue, right turn only for both sides median with full access to the west side of llth Avenue and right only for the east side - median with full access for both sides - no access from the R.L. Johnson site to llth Avenue With the knowledge that one of the four alternatives may be constructed the Commission can do the following: approve the project without the final design of the llth Avenue access - do not approve the project until there is a final design for the up- grading of the intersection Staff concurs with the recommendation of Mr. Wonson that approval of the project be granted without the final design of the llth Avenue access. Under this scenario the final design will be worked out along with construction of the project. If this were to occur the project could begin construction this summer. The applicant is also aware that the final design might recommend no access from llth Avenue. R.L.Johnson Memo June 20, 1988 Page 3 If the Commission concurs with this recommendation, an additional condition should be added, that the access on llth Avenue will be determined when the design of the intersection is finalized. BENSHOOF & ASSOCIATES INC TRANSPORTATION AND LAND USE CONSULTANTS 7901 FLYING CLOUD DRIVE, SUITE 119 / EDEN PRAIRIE, MINNESOTA 55344/ (612) 944 - 7590 June 17, 1988 M E M O R A N D U M TO: Nancy Anderson, City of Hopkins FROM: Mitch Wonson RE: Traffic Analysis of Impacts of R.L. Johnson Shopping Center on 11th Avenue South PURPOSE AND SUMMARY REFER TO FILE: 86- 34 -45 The purpose of this memorandum is to present the findings of our analysis concerning the traffic impacts of the proposed R.L. Johnson Shopping Center located in the southeast quadrant of County Road 3 and 11th Ave. South. Specifically, our analysis addressed two questions: 1) How does the proposal affect the timing of previously identified improvements to the C.R. 3/11th Ave. South intersection? 2) What are the potential impacts of the development at the proposed site access on 11th Ave. South? The principal conclusions of the analysis are: . With the current proposal, the intersection of 11th Ave. South and C.R. 3 will need to be upgraded by 1989. These improvements will be required at least by 1991 regardless of this proposal. The currently proposed full movement access to llth Ave. South has the potential for significant negative impacts. The location and type of access (full movement versus right in /right out only) should be evaluated within the context of the overall design of the 11th Ave. improvements. It may be necessary to restrict access for this proposal totright in /right out movements only. • Ms. Nancy Anderson BACKGROUND -2- June 17, 1988 The current proposal contains 18,800 sq. ft. of development consisting of a 6,000 sq. ft. restaurant with liquor and 12,600 sq. ft. of retail /service uses. Access is proposed via full movement access points both at 11th Ave. South and at the 8th Ave. /C.R. 3 intersection via a "frontage road ". For purposes of comparison, an alternative development scenario was also analyzed. This scenario consisted of an 8,000 sq. ft. restaurant with access only to 11th Ave. South and would entail development solely on the parcel currently owned by R.L. Johnson. Traffic Forecasts Several p.m. peak hour traffic forecasts for the intersection of C.R. 3/11th Ave. South were prepared including: • No build forecasts for 1988 through 1992 which adjusted traffic counts prepared in November, 1987 by a yearly growth factor and assumed no development on this site or any other significant development which would affect traffic volumes. • 1988 forecasts with full occupancy of the current 18,800 sq. ft. proposal. The development forecasts were prepared based upon trip generation rates published by the Institute of Transportation Engineers, trip distribution identified in our previous studies, and the proposed access points. The forecasts accounted for trips intercepted from existing traffic by the retail /service component. The proposed development is expected to generate approximately 330 p.m. peak hour trips (in and out). 1988 forecasts with construction of an 8,000 sq. ft. restaurant, using identical traffic forecasting methodology. This development is expected to generate approximately 160 p.m. peak hour trips (in and out). Figure d presents the forecasts for the three alternative 1988 scenarios. 0 N Ln m N � � ....... OD M \ Q u, -+ N l0 L N n \ m m in _........ V 1 L C.R. 3 c 001)1 N- 48/ 48/ 48 f— 907/895/907 kc 201/239/238 No Scale 174/174/174 -- 519/512/519 —> 148/205/180 _y cn to v .o v N N N LA N d N N N \ \ \ ✓ O M N .D N N N N Nov. 1988 no site development Nov. 1988 with 18,800 sq. ft. shopping center �— Nov. 1988 with xx /xx /xx 8,000 sq. ft. restaurant CITY OF HOPKINS TRAFFIC STUDY Figure 1 FOR PM PEAK HOUR FORECASTS AT R.L. JOHNSON 11TH AVE. S0. AND C.R. 3 SHOPPING CENTER BENSHOOF & ASSOCIATES, INC. TflANSPOflTATION AND LAND USE CONSULTANTS • Ms. Nancy Anderson ANALYSIS - 3 - June 17, 1988 11th Ave. South /C.R. 3 Intersection The traffic operations at the intersection under the various scenarios were analyzed in terms of levels of service and delay using procedures published in the Highway Capacity Manual 1985. The key findings of this analysis include: Under the no build scenario, the intersection would need to be upgraded by 1991 in order to avoid significant delays, particularly on the south approach (northbound movements). These conceptual improvements shown on Figure 2 were previously developed by our firm. It should be reiterated that this scenario of improvements by 1991 assumes no significant development affecting traffic volumes at the intersection. For example, when the proposed R.L. Johnson office development occurs south of the current site, the identified improvements will be required immediately. With construction of the current 18,800 sq. ft. proposal, the intersection upgrading will be required upon full occupancy of the development. Thfs indicates that while it is not imperative that the intersection be improved prior to construction of the proposal, it is imperative that the City commence the design /construction process for the improvements to ensure their availability by the earliest possible date in 1989. With the volumes forecasted under the 8,000 sq. ft. restaurant scenario, the intersection improvements would not be required until approximately 1990. As such, the need to upgrade the intersection by 1989 is not as imperative as with the current proposal. Further, the impacts of a restaurant proposal could be somewhat mitigated dependent upon the size, type, and access opportunities associated with an actual restaurant proposal. Impacts at 11th Ave. South Access The forecasts prepared to determine the improvements to the intersection and to 11th Ave. South as shown on Figure 2 included a development with much lower p.m. peak trip generation on this site than is currently proposed. Given the size and type of development currently proposed, the 11th Ave. South access has the potential for significant negative impacts on traffic flow on 11th Ave. South These impacts result principally from the left turns into the site from southbound 11th Ave. As such, the location and type of TRAFFIC STUDY FOR R.L. JOHNSON SHOPPING CENTER Prepared by: Existing Amoco Access .CITY OF HOPKINS Benshoof 8 Associates, Inc. December 1987 BENSHOOF & ASSOCIATES, INC. TRANSPORTATION AND LAND USE CONSULTANTS* v°1i Figure 2 50' ApproxIaate Scale CONCEPTUAL IMPROVEMENTS TO C.R. 3 /11TH AVE. SO. INTERSECTION • Ms. Nancy Anderson - 4 - June 17, 1988 the access (full movement versus right in /right out) on 11th Ave. South needs to be reviewed within the context of the ultimate design and traffic needs of 11th Ave. South This review, which can be done in conjunction with the design of the roadway improvements needs to analyze the following opportunities: Are additional improvements, such as a left turn lane at the currently proposed access, feasible, thus ensuring safe effective traffic flow with the currently proposed access? Are alternative locations farther south on the site available to provide both effective traffic flow and full movement access? In order to preserve effective traffic flow on llth Ave. South, will an uninterrupted median be required between the C.R. 3 intersection and the railroad tracks thereby limiting access for this site to right in /night out only? While an unlikely scenario, will all access to this site from 11th Ave. need to be eliminated in order to preserve effective traffic flow? Based upon the current analysis, it is recommended that the location and type of access to 11th Ave. South, for the shopping center proposal not be approved at this time, but rather be determined in conjunction with the design of the llth Ave. South improvements. The access for this proposal may need to be restricted to right in /right out only. • Laventhol &Horwath June 20, 1988 SITUATION Certified Public Accountants Mr. Steven Mielke Community Development Director City of Hopkins 1010 First Street South Hopkins, MN 55343 POTENTIAL IMPACT A member of Horwath & Horwath International with affiliated offices worldwide. 100 Washington Square Minneapolis, Minn. 55401 (612) 332 -5500 Dear Mr. Mielke: At your request we have prepared this letter that outlines our reactions to the proposed R. L. Johnson development at the southeast intersection of County Highway 3 /Excelsior Avenue and 12th Avenue in Hopkins. R. L. Johnson Company proposes to develop a retail center totaling 18,800 square feet. It would include an Applebee's restaurant approximately 6,200 square feet in size, as well as additional miscellaneous retail. The City is considering action on the pro- posed project for several reasons. One, it must approve a liquor license required for the Applebee's restaurant. Two, the City owns the parcel of land required for parking spaces at the site. The City is concerned about the impact of the proposed project on downtown Mainstreet merchants. At issue is, will the proposed development be an asset or a liability to Hopkins Mainstreet busi- nesses and the future vitality of the downtown area. Laventhol & Horwath has been asked by the City to review the proposed development and make comments in light of their knowledge of the downtown area, and the commercial market research study recently conducted by the firm. The potential impacts of the proposed development are likely to be both positive and negative. Each of these impacts need to be weighed against one another to determine the net impact of the proposed development. • • Mr. Steven Mielke June 20, 1988 Page Two Positive Impacts. The proposed development is likely to have a number of positive impacts on the City as well as the downtown area. First, the City's endorsing or supporting the development at this site will help the City build a more positive relationship with the business community regarding new development. For example, a number of retailers in surrounding commercial areas indicated during the market research study that the City was difficult to deal with, and created a number of loopholes which kept them from locating in the downtown area. The City, by supporting this devel- opment, may work to bridge the ties between the public and private sectors. New developments adjacent to the downtown area are likely to . help create the necessary critical mass and retail image the City of Hopkins currently lacks. The effect of this commercial development near the downtown area should benefit downtown businesses and the City of Hopkins at large. While the market study recommended that new development be centered around the four- block area of downtown Hopkins, these recommendations were not intended to discourage growth that occurs surrounding the "bull's eye" of the target area. Much development has and may continue to occur surrounding Hopkins. The closer this development occurs to the downtown area, the greater potential there is for downtown businesses to benefit. The restaurant at the proposed development is very consistent with the establishment types found to have high development potential for the Hopkins trade area, and thus will be beneficial to the City of Hopkins and the trade area. It is important to note that if the development does not occur in the proposed area adjacent to the downtown, it is likely to occur at another site in the Hopkins trade area that is not as close to downtown. The proposed development is likely to benefit the downtown area be- cause it will increase the number of options for shopping and attract additional consumer dollars from outside of the immediate area. This in effect will help to reduce the existing amount of leakage of customer dollars to areas outside the trade area and strengthen the draw of Hopkins for customers outside the immediate trade area. The proposed development is not expected to draw a significant share of business from existing Mainstreet establish- ments. Importantly, new retailers in town can add to the membership of business associations both in terms of numbers and with regards to new ideas and fresh perspectives on efforts to promote business. Negative Impacts: A potential negative impact of the proposed devel- opment is that it will draw existing businesses operating on Main - street to the proposed development. The impact of a net shifting or loss of establishments is undesired for obvious reasons. However, the degree of movement from Mainstreet to the proposed development is expected to be minimal. Rental rates in the new development are expected to be too high to be competitive for many of the Mainstreet establishments. • • • Mr. Steven Mielke June 20, 1988 Page Three Development outside of the core Mainstreet area may potentially dilute the image and cohesiveness of the downtown. The proposed development is located south of Highway 3 /Excelsior Avenue, which acts as a physical and psychological barrier to the south. The impacts, however, are considered minimal because Highway 3 is largely a commuter thoroughfare carrying local traffic. To the ex- tent that Highway 3 is carrying out -of -town traffic to the estab- lishments at the new development, the impacts of the new development will be positive in that it will be attracting or drawing additional customers from outside the trade area. Also, the auto- oriented behaviors of Hopkins' shoppers minimize the effect of Highway 3 acting as a north /south barrier that would prohibit shoppers from making related trips downtown. RECOMMENDATIONS This evaluation indicates that the benefits of the proposed develop- ment outweigh the negative impacts for the City of Hopkins. The development should be supported by the City through issuance of a liquor license and sales agreement for the adjacent City -owned property. The development will have a positive impact to the extent that it is identified with the Mainstreet area and downtown Hopkins. Efforts should be made to link the new development to downtown and, therefore, expand or broaden the retail base and not create an independent and separate entity from the downtown area. The City may want to consider a number of contingencies in the contract with the developer to ensure that the development is beneficial to downtown businesses. These contingencies may address issues related to organization, cooperation, coordination and de- sign. Several possibilities are suggested below. Organization The City may require that the management and /or tenants of the new development become members of downtown business organization and that they be active participants in activities related to the management of Hopkins Mainstreet. Cooperation The City may seek assurances from the developer that they will not "raid" downtown Hopkins for tenants. • • • Mr. Steven Mielke June 20, 1988 Page Four Coordination The City may require that the new development management and /or tenants participate in coordinated events including sales promo- tions, advertising, special events, hours of operation and other activities related to linking the new development with the downtown to create a unified and cohesive image. Design The City may require that the new development be designed to rein- force the Mainstreet image. This may include architectural layout, signage, and naming the center in such a way that it identifies closely with Mainstreet. CONCLUSION A situation that benefits both developer and City is possible through cooperative efforts. The City should support the develop - ment of the new center and encourage a cooperative relationship between City and developer. Contingencies proposed by the City should be presented in a positive nature and in the context of supporting its existing business community. They should be made to link the proposed center to Hopkins Mainstreet's existing businesses and discourage the concept of the development creating its own self- sustaining and independent node of shopping activity. The City's cooperative and positive attitudes towards this development will help assure that the developer, management and tenants of the center will too be interested in coordinating the development to create a win -win situation for the new development and the community at large. We are willing to discuss this letter with you at your convenience. Sincerely A AA Ste -n Kotvis, Associate Management Advisory Services SK /pjp