CR 10-099 Hen Cty Transit Oriented Development Program - 8th Ave S RedevelopmentG\TY OF
September 21, 2010 Council Report 2010-099
NOPKINS
HENNEPIN COUNTY TRANSIT ORIENTED DEVELOPMENT PROGRAM —
8T" AVE S REDEVELOPMENT
Proposed Action
Staff recommends adoption of the following motion: Approve Resolution 2010-064
authorizing execution of a contract with Hennepin County for a Transit Oriented
Development award for 8 th Avenue South redevelopment.
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
City of Hopkins was awarded a TOD grant for $875,000 for redevelopment activity on
8th Avenue South. It is intended that the funds will be used towards the purchase of 815
1St Street South (the former Park Nicollet clinic). The 8th Avenue South redevelopment
project will connect new transit -oriented development to the future Downtown Hopkins
Light Rail Transit Station.
City and County staff have worked together on the attached contract to define terms
that are satisfactory to both parties. Approving Resolution 2010-064 will authorize the
appropriate persons to execute the attached contract with Hennepin County.
Primary Issues to Consider
• What are the main terms of the contract?
• What is the timeline for the grant award?
Supporting Information
• Resolution 2010-054
• Hennepin County TOD contract and attachments
p� V
Tara Beard
Community Development Coordinator
Financial Impact: $
Related Documents (CIP,
Notes:
Budgeted: Y/N
ERP, etc.):
Source: _PIR fund (501)
Council Report 2010-108
Page 2
Analysis of Issues
What are the main terms of the contract?
The City of Hopkins must establish a mixed-use zoning district (as guided by the
Comprehensive Plan) for the project area by December 31, 2012. This indicates
the.City's intent to redevelop the area in a transit -supporting way.
Construction of the redevelopment must commence by December 31, 2017, and
completion of the minimum improvements must be met by December 31, 2019.
Minimum improvements are defined as:
o At least 40 housing units with 20% of the units affordable to households at
80% of the area median income (a 2 -bedroom unit affordable to a
household at 80% of the are median income would need to be less than
$1,500 per month gross)
o Active uses on the ground floor (this can include community rooms, etc)
o Minimum 3 story development
o Minimum floor -area ratio of 2.0
o Minimum building footprint of 20,000 square feet
o Parking located at the rear or underneath the building
o Minimum bicycle parking of 1 space per 2 housing units and %2 space per
employee
Changes to the minimum improvements must be approved by Hennepin County
Leadership in Energy and Environmental Design (LEED) certification is strongly
encouraged
If upon sale of the redevelopment property(ies) the City receives a return of funds
received under this agreement, such proceeds will be used to construct public
realm improvements along 8th Avenue South.
What is the timeline for the grant award?
Hennepin County staff has requested the signed contract by September 24 to
accompany a report for a November 2 board meeting which should result in a fully
executed contract by the end of 2010. Funds maybe drawn to reimburse eligible
expenses at any point after the contract is fully executed, and must be drawn by
December 31, 2012.
Alternatives
The Council has the following alternatives:
• Approve resolution 2010-064 as is
• Approve resolution 2010-064 with changes to the terms of the contract
• Deny resolution 2010-064 and decline 2010 TOD funding
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010-054
RESOLUTION AUTHORIZING EXECUTION OF HENNEPIN COUNTY
CONTRACT NO. A101157 FOR A GRANT AWARD OF $875,000 FROM
HENNEPIN COUNTY'S TRANSIT ORIENTED DEVELOPMENT PROGRAM
WHEREAS there are three Southwest Light Rail Transit stations planned in the City of
Hopkins, including a Downtown Hopkins station at Excelsior Boulevard and 8th Avenue
South; and
WHEREAS the City of Hopkins has participated in planning efforts that have identified
a vision for the Downtown Hopkins station; and
WHEREAS there are currently underutilized or obsolete buildings within V2 mile of the
Downtown Hopkins station; and
WHEREAS, on February 25, 2010, the City of Hopkins submitted an application to
Hennepin County's Transit -Oriented Development (TOD) Program for monetary
assistance in completion of the 8th Avenue South Redevelopment project ("the Project");
and
WHEREAS, the Project consists of property acquisition and transit -oriented
development of the 8th Avenue corridor between downtown Hopkins and the planned
Downtown Hopkins station on Excelsior Boulevard and the existing regional bike and
pedestrian trail south of Excelsior Boulevard;
NOW, THEREFOR, BE IT RESOLVED, that, after appropriate examination and due
consideration, the governing body of the City authorizes its Mayor and City Manager to
execute such agreements as may be necessary to implement the project on behalf of the
City.
Adopted this 21st day of September 2010.
Attest:
Terry Obermaier, City Clerk.
0
ME
Eugene J. Maxwell, Mayor