Memo- 8th Ave Redevelopment•
Planning & Economic
Development
MEMORANDUM
TO: Honorable M or and Hopkins City Council Members
FROM: Kersten Elve Director of Planning & Development
DATE: May 4, 2010
SUBJECT: 8th Avenue Redevelopment
• A discussion has been scheduled for the May 11, 2010, work session to discuss the
redevelopment plans for 8`h Avenue. The agenda for the discussion will include:
■ Background on the properties/funding sources
■ Results of developer interviews
■ Discussion of next steps
Background
The City of Hopkins has secured an option on the Park Nicollet site that runs through June, with
the ability to extend through August. The option establishes the purchase price of the property at
$2 million. One million in funding has been awarded through the LAAND program, and an
additional $500,000 in Hennepin County TOD funds has been applied for.
Staff has also been in discussions with Chris Dahl, the owner of the Johnson Building at 8th
Avenue and Excelsior Boulevard. He has indicated an interest in selling in order to facilitate the
redevelopment of this site.
Staff will discuss the terms of the various funding sources, as well as our ability to carry the
properties until a developer is selected and financing secured.
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Market Interest
Staff has met with six developers to discuss the two sites and the City's overall redevelopment
goals. The feedback has been helpful. Developer reactions and possible concepts will be shared
at the work session. Generally speaking, current and near-term markets for rental housing and
retail would likely allow for redevelopment of one or both of the sites. Owner -occupied and
office markets are very weak, and financing is extremely hard to secure. Realizing either of
those uses of the sites will likely require some patience.
Based on market realities and Council input, it is hoped that a shared vision for the sites emerge
to guide the developer selection process.
Alternatives
There are a few different ways redevelopment of 8th Avenue can be pursued at this point. Staff
will outline the various options at the work session. Stacie Kvilvang, Ehlers & Associates, will
be at the meeting to provide guidance and answer questions. Patricia Fitzgerald, Hennepin
County, will also be at the meeting to listen to the discussion in an effort to better understand the
City's commitment to facilitating transit oriented development on 8th Avenue.
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