CR 10-019 Hennepin County Transit Oriented Development (TOD) Program - Park NicolletGITY OF
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February 16, 2010 OPKIN Council Report 2010 -019
HENNEPIN COUNTY TRANSIT ORIENTED DEVELOPMENT PROGRAM —
PARK NICOLLET SITE
Proposed Action
Staff recommends adoption of the following motion: Approve Resolution 2010 -004
supporting an application to Hennepin County's Transit Oriented Development Program
for the Park Nicollet site.
Overview
Hennepin County's Transit Oriented Development (TOD) Program funds projects that
promote a mixture of housing, retail, and workplaces within walking distance of transit.
TOD funds are intended to supplement existing available resources and increase use of
transit, as well as increased pedestrian and bicycle activity in Hennepin County. The
Park Nicollet site, at 815 1 St St S in Downtown Hopkins, is within a quarter mile of three
well -used bus routes and the future Southwest Light Rail Transit (LRT) Station for
Downtown Hopkins.
The Park Nicollet site has been vacant since August of 2009. The site is one block from
the future Downtown Station for the Southwest Light Rail Transit line, and is located on
8 th Ave, which has been designated as the physical connector from the Downtown
Station to Mainstreet. Transit - oriented Development on 8 th Avenue is necessary to
realize that connection, and the City has a unique opportunity to purchase the property
and control its redevelopment. For the purposes of this application, Park Nicollet is
willing to give the City an option to purchase the Park Nicollet site while funding sources
are sought.
Primary Issues to Consider
• What will the application consist of?
• How much is the anticipated funding request?
Supporting Information
• Resolution 2010 -006
• DRAFT 2009 Hennepin County TOD application
Tara Beard
Community Development Coordinator
Financial Impact: $ Budgeted: Y/N Source: _PIR fund (501)
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2010 -019
Page 2
Analysis of Issues
What will the application consist of?
The application requires explanations of how the proposed project would increase
transit ridership and utilize land use, density and design that will support a vibrant,
walkable, bikeable community. These are the very goals for 8 th Ave S between the
future LRT Station and Mainstreet, and redevelopment of the Park Nicollet site into a
mixed -use, higher- density development would help accomplish that vision. Staff is
currently working on a new zoning district for the area that would include such TOD
supporting language as parking maximums, transparency requirements, and pedestrian
connections and improvements. Finally, redevelopment of the Park Nicollet site would
serve as a catalyst for future TOD along 8 th Ave S.
How much is the anticipated funding request?
The City anticipates receiving $1,000,000 in Land Acquisition for Affordable Housing
Development (LAAND) funds that were applied for in 2009 toward site acquisition. The
anticipated cost of the Park Nicollet building is approximately $2,000,000, and staff is
currently investigating ways to fill the $1 million gap in funding. The County's TOD
Program is making available $2 million in Capital Bond funds to support TOD projects in
2010. Requesting the full $1 million needed to fill the gap is unrealistic, and staff
recommends requesting $500,000 from Hennepin County's TOD fund toward the site
acquisition cost. Sources for the remaining $500,000 gap continue to be sought.
Alternatives
The Council has the following alternatives:
• Approve resolution 2010 -006 as is
• Approve resolution 2010 -006 with changes to the terms of the application
• Deny resolution 2010 -006 and opt not to apply for 2010 TOD funding
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010 -006
RESOLUTION SUPPORTING TRANSIT ORIENTED DEVELOPMENT GRANT
APPLICATION TO HENNEPIN COUNTY HOUSING AND REDEVELOPMENT
AUTHORITY
BE IT RESOLVED, that the City of Hopkins, in accordance with Minnesota Statutes §
38313.77, subd. 3., supports the Transit Oriented Development grant application
submitted to the Hennepin County Housing and Redevelopment Authority on February
25, 2010, by the City of Hopkins for the Park Nicollet Site at 815 1 sc St S.
Adopted this 16th day of February 2010.
LM
Eugene J. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk.
F1 Hennepin County
2010 Transit Oriented Development (TOD) Program
Application
Hennepin County reserves the right to accept or reject all funding requests and
Hennepin County reserves the right to request additional information, as determi
application. All information submitted through this solicitation becomes the propI
to applicable law relating to the source of TOD Program funding, applicants who
subject to a fee. Details will be discussed with applicants prior to the ann cer
Read 2010 TOD Program Guidelines carefully prior to completing iI
L. Fitzgerald at 612 - 543 -0864, patricia .l.fitzgerald @co.hennepin.mn`"
Project Title: Park Nicollet Site Acquisition
Brief Project Description (25 words or less): Purchas former
prepare for Transit - Oriented Development.
Applicant Name: City of Hopkins
Street Address: 1010 1 st St S
City: Hopkins State: MN Zip Code: 55343
Project Contact Person: Tara Bear
ZZ
Phone: 952 - 548 -6343 E -mai d n.com
Hennepin County TOD Funds Reques - $ 500,
For each paMWide
Current
to
for proposals.
.view any
nty. Subject
ay be
�m ations.
Nicollet Clinic at 815 1 9f S to
►wnership;"PID, ' ress, lot size, and current property taxes.
PID Parcel address Square footage Current year's
propertv taxes
Total s&are footage and current property taxes 1 55,489 1 $59,825 1
e within a municipally designated Redevelopment Plan/ Project Area or Housing District?
Name of Redevelopment Plan /Project Area or Housing District: Redevelopment Project No. 1
)pment Plan or Housing District maps and adopting resolution.
it Plan /Housing District must be in place at the time of final county approval.
Has the municipality passed a multijurisdictional resolution supporting the application and authorizing
submittal of the application and execution of subsequent implementing agreements?
®Yes ❑No Ellin process City contact person: Tara Beard Attach resolution.
The Park Nicollet site would provide an excellent opportunityre %v a single story, non- descript
building that has been vacant for over 6 months into a mixe ulti -story development with
active, inviting uses on the first floor and convenient housing /aimum of 20% of the
housing affordable to families at °° or less of the AML We esti 60 and 100 total
housing units would be includ ject.
Redevelopment of the site wi o a lV
connect the future LRT sta ion witl
bicycle connection between the Cec
identified as such nor welcoming as
be a catalyst for additional TOD plat
creatinq a truly odal 8th Ave 1
�d ansit Oriented V aa ent Project
e overall project, makes it T OD? Describe how the project meets the stated
D Program (see Program Guidelines Section VI A & B). For example, how
ed, h will the project promote transit ridership and /or improve walkability?
eets the W teria discussed in the guidelines Section III. Specifically state the
y existing or planned transit lines, stops or stations. See also 2010 TOD Program
>n of TOD (Section 1) and resources for more information about TOD (Appendix B).
The o e
housi
Hopkins
near the
develope
and street
N h e project
site wj�
of the o profit is a new, dense development that would add jobs, services, and
ithin a qua of well -used bus routes and future Light Rail Transit. Guidance in
10 Compr sive Plan update include mixed -use, four -or -more story development
ntown Lion (including the Park Nicollet site), and current zoning districts being
the area include TOD supporting language such as parking maximums, pedestrian
pe improvements, and bicycle amenities.
4 ts the goal of proximity to transit and transit usage by increasing the density of the
is well served by transit. Mixed -use redevelopment of the site would provide more
affordable housing, services, and some jobs near existing and future transit.
Th oject meets the goal of land use, density, and design by allowing the City of Hopkins to have
site control, selecting a developer and establishing a zoning district where vibrant uses are
established on the first floor and a walkable, bikeable community near transit is provided.
Mainstreet is already an excellent example of such a community and extending those features to
8 th Ave S will allow existing and future transit to add to and connect to those amenities.
To the south of the project site is an underutilized office /wa;., 10. building. Tran ' ente
redevelopment of the Park Nicollet site would further poat building, w faces Ex
Blvd and the future LRT Station, for market - driven redent that wo er the vision
the Station area.
As mentioned above, the City of Hopkins is currently develnew zo district for rea
is consistent with the guidance given in its Comprehens�update. new zonin tl
ensure transit oriented and pedestrian oriented develop h princ s as parkin
maximums, fenestration minimums, streetscape improv bi amenities, and wafin
requirements. The new zoning district should be finaliz
Tax base will increase significantly with a dense, mixed ,�' buildin The current use, a single ry
building with surface parking that was built in 19„_ s been va since August of 2009.
3. Feasibility
What work has been done to assess the feasibility of transit on eevelopment in the project area? If applicable,
has a market study been completed? What is the role of the priv in this project? Discuss whether the
overall project consists of public sector investment only, private inve t only, or ombination of public and
private investment, including whethe ny and all partners are committe this ' Refer to 2010 TOD Program
Guidelines Section VI C.
1 � ._ ,
Upon acquisi the Ci p in an RFP or RFQ to find a qualified developer to realize the
vision for th development terms would be negotiated as a condition of sale of the property. The
City has appli LAAND funds through Minnesota Housing and the Metropolitan Council for the project
well, and anti s approximately $1 million via that program to be used toward site acquisition. The
Troximates t st of t property around $2 million, and proposed to fill that gap with Hennepin
Cou OD funds an er grams or city financing. Park Nicollet has given the City an option to buy
the pro through Jun ` _ Y 10' .
4. Financials eed for TOD Program Funding
Why are TO, Program funds needed?
=' The purpos f TOD is met strongly by the project, and the City has no available funds for site acquisition.
List all sq0tibs and uses of funds for the overall TOD project, or attach a project pro forma. (If the project is a
4 V municwofrastructure project, provide sources and uses for the infrastructure project, and another table listing
W and uses for development projects within the redevelopment area. With regard to municipal projects,
e will be to proiects in which substantial investments from other sources are committed.)
,W
Source
Use
Committed/
Type of
Amount
Pending
Funds*
Land Acquisition for
Site acquisition
Pending'
Loan
$560,000
Affordable New
Development LAAND -
Total $2,000,000
fTDC 25%
*Specify "Loan ", "Grant ", "Owner's Funds ", etc.
5. Readiness
Describe the project's readiness and ability to meet the timeline refere in the TOD Program
Guidelines. Discuss site control, f ommitments, partnership or re I nt agreements, zoning
approvals, or any other significa jec ones achieved. State when roposed TOD Program -
funded activities will be comp when all project will be c ted.
11. r
Acquisition of the property should be c pleted w ure, likely in 2010.
Redevelopment of the site would ha n be n 1 and 5 s after acquisition. LAAND
program requirements do not allow r v ent to oc ooner than one year after acquisition,
and the City would use that time to se evelopment artner and negotiate a redevelopment
agreement., t_,
�Y•°•
i Z�p• c. ., ePo.�
S
The following may be attached to the applic xcluded from the page limit), or
be submitted anytime prior to May 1, 2010:
El Redevelopment Plan /Project Area or Housinap
❑ Redevelopment Plan or Housing District Ado lution
El City resolution supporting the TOD applicatioizing of the app lication, execution
of subsequent implementing agreements and contracts =�
Submit one electronic copy (on disc or USB drive), one original, an" ee complete opies of the
application to address listed below. Please include any graphics or p %as ind" al jpegs. Hard copies
W must be unbound, with only paper o ader clips attached. Double sidu s are strongly preferred.
Dea : February
4L A
2010, 4:00 p � µ