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CR 2012-095 Hennepin County Supplemental Transit Oriented Development (TOD) Program - 8th Ave Ramp-.41M CiLy of ftopkim August 21, 2012 Council Report 2012-095 HENNEPIN COUNTY SUPPLEMENTAL TRANSIT ORIENTED DEVELOPMENT PROGRAM — 8T" AVENUE RAMP Proposed Action Staff recommends adoption of the following motion: Approve Resolution 2012-059 supportinq an application to Hennepin County's Supplemental Transit Oriented Development Program for the 8th Avenue Ramp project. Overview The Hennepin County Housing and Redevelopment Authority (HCHRA) is making up to $598,000 available to support public and private multi -jurisdictional transit -oriented development (TOD) projects located along Hennepin County transit corridors. TOD Program funds are intended to supplement existing private and public resources in support of transit -oriented development. City staff recommends an application to the Supplemental TOD program for $250,000 to help fund construction of a TOD-supporting public parking ramp on the 8th Avenue corridor. Primary Issues to Consider • What will the application consist of? • How much is the anticipated funding request? Supporting Information • Resolution 2012-059 • DRAFT 2012 Hennepin County Supplemental TOD application Tara Beard Community Development Coordinator Financial Impact: $ Budgeted: Y/N _ Source: _PIR fund (501) Related Documents (CIP, ERP, etc.): Notes: Council Report 2012-095 Page 2 Analysis of Issues What will the application consist of? The application requires explanations of how the proposed project would support transit -oriented development and associated goals such as active living and environmental design. Financial feasibility and readiness are also factors in consideration. How much is the anticipated funding request? Staff is recommending a request of $250,000, which is the smallest grant request of the available sources being considered. While there is no grant award limit, the fund is the smallest in the pool of grants being considered and we anticipate a larger application for 2013 Hennepin County TOD funds. For the purposes of grant applications, staff has used a construction cost estimate ($4,100,000) in the range reflected for a 3 -story ramp in the feasibility study done in July by Collaborative Design Group. In addition to Hennepin County funds, city staff has prepared grant applications from the state Department of Employment and Economic Development (DEED) and Metropolitan Council to fund construction of the ramp. It is also likely that city contributions (via bond sales or TIF revenue) would be needed to fill remaining gaps. A proposed sources and uses table for ramp construction is as follows: Metropolitan Council LCA for TOD 2012 $2,000,000 DEED Redevelopment Grant 2012 $350,000 Hennepin County Supplemental TOD 2012 $250,000 Hennepin County TOD 2013 $500,000 City of Hopkins TIF proceeds $500,000 City of Hopkins Bond sale $500,000 TOTAL $4,100,000 Alternatives The Council has the following alternatives: • Approve resolution 2012-059 as is • Approve resolution 2012-059 with changes to the terms of the application • Deny resolution 2012-059 and opt not to apply for 2012 Supplemental TOD funding -.4m City of Hopkins CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2012-059 RESOLUTION SUPPORTING CITY STAFF SUBMITTAL OF AN APPLICATION TO HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY (HCHRA) FOR SUPPLEMENTAL TRANSIT -ORIENTED DEVELOPMENT (TOD) FUNDS FOR THE 8TH AVENUE RAMP PROJECT WHEREAS, the City of Hopkins (the "City") is a city located within Hennepin County and is therefore eligible to access the supplemental TOD grant; and WHEREAS, the project site is within a Redevelopment Project Area; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and NOW, THEREFORE BE IT RESOLVED that the City Council supports the submittal of the application in accordance with Minnesota Statutes 383B.77, Subd. 3. and authorizes the Mayor and City Manager to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted this 21 st day of August 2012. Eugene J. Maxwell, Mayor Attest: Kristine A. Luedke, City Clerk. Hennepin County Housing and Redevelopment Authority ' 701 Fourth Avenue South, Suite 400 Issued MY 3, 2012 Minneapolis, MN 55415 www.hennepin.us 2012 Transit -Oriented Development (TOD) Program Supplemental Funding Round The Hennepin County Housing and Redevelopment Authority (HCHRA) is making up to $598,000 available to support public and private multi-jurisdictional'transit-oriented development (TOD) projects located along Hennepin County transit corridors where transit service is frequent and high capacity. Projects must be a component of a municipally -designated Redevelopment Plan' (within designated Redevelopment Project Areas or Housing Districts). TOD Program funds are intended to supplement existing private and public resources in support of transit -oriented development. TOD promotes a mixture of housing, retail, services, workplaces and open space within walking distance of transit to maximize use of the transit system. By directing compact development to existing developed areas well -served by transit, TOD reduces public infrastructure costs overtime and preserves regional open space. Pedestrian- and bike -friendly TOD has numerous public benefits including decreased congestion, a greater range of housing options, fewer emissions, and improved public health by creating walkable neighborhoods that promote physical activity. TOD projects feature reduced parking, increased density, and building orientation toward transit and the pedestrian environment. TOD lowers combined housing and transportation costs by reducing the need to drive and own cars for commuting and daily trips, and promotes economic opportunity by linking residents with employment and service destinations. (See "Resources" section below for further descriptions of TOD.) Funding Available A maximum of $598,000 is available for the Supplemental Round of the 2012 TOD Program. Available funding consists of general obligation bond funds, which will be offered as grants to approved applicants. Funds will be provided on a reimbursement basis for actual costs as approved in the grant application and subsequent negotiated work programs and contracts. There is no minimum award amount. ' "MULTI -JURISDICTIONAL"— Minnesota Statutes 383B.79, Subdivision i enabled creation of a multi -jurisdictional reinvestment program involving Hennepin County, the cities of Minneapolis, Brooklyn Center, and other interested statutory or home rule charter cities in Hennepin County, the Minneapolis Park Board, and the suburban Hennepin County Park District. The multi -jurisdictional program must include plans for one or more of the following: housing rehabilitation and removals, industrial polluted land cleanup, water ponding, environmental cleanup, community corridor connections, corridor planning, creation of green space, acquisition of property, development and redevelopment of parks and open space, water quality and lakeshore improvement, development and redevelopment of housing and existing commercial projects, and job creation. 3 See Minnesota Statutes 469.002. H 2012 Transit Oriented Development Program Supplemental Funding Round Request for Proposals page 1 Eligible Applicants • Cities and development authorities (e.g. Housing Redevelopment Authority, Economic Development Authority or Port Authority) within Hennepin County • Private entities, including both non-profit and for-profit developers NOTE: The municipality in which the project takes place must adopt resolutions that authorize application submittal, document that the project is in a Redevelopment Project Area or Housing District, and approve participation in a multi -jurisdictional agreement with the HCHRA. Applicants must contact appropriate city staff regarding these requirements and obtain copies of resolutions establishing Redevelopment Project Area and/or Housing District prior to submitting an application. Eligible Locations Eligible projects must be located in a municipally -designated Redevelopment Project Area or Housing District within Hennepin County, and must be located along a transit corridor. Priority will be given to projects adjacent to County -identified corridors, within 1/2 mile of an existing or planned light rail station, and/or within a Transit Improvement Area designated by Minnesota Department of Employment and Economic Development (DEED). County -identified transit corridors include, but are not limited to: Hiawatha Corridor, Central Corridor, Southwest Corridor, Bottineau Corridor/County Road 8i (including Lowry Avenue and West Broadway), Northstar Corridor, 1-35 Bus Rapid Transit (BRT) Corridor, Cedar Avenue Bus Rapid Transit (BRT) Corridor, and the Midtown Greenway. Projects located along a Metro Transit express bus route, or along a bus route providing frequent (every fifteen minutes) all day service will also be considered. To view an interactive Twin Cities Metro Area Transit Systems map, see http://www.metrouansit.org. Eligible Activities Eligible uses of funds must demonstrate a public purpose, and may include project components that are oriented to the transit stop(s) identified in the project (such as public plazas, pedestrian -scale lighting, bus shelters, bike racks, and other enhanced features of a development project); components that are a necessary cost of a transit oriented development project (such as demolition, utility relocation, or other extraordinary project costs); and/or public realm improvements to a transit -oriented development area (such as municipal investments in infrastructure or public realm enhancements). More specifically, eligible uses include: a) Installation of public infrastructure improvements, including pedestrian and bicycle facilities that improve pedestrian, bicyclist, and transit rider safety and ease of use; b) Clearing acquired property and installation of streets, utilities, and site improvements for uses in accordance with the redevelopment project,- c) roject;c) Acquisition of real property for the purpose of removing, preventing or reducing blight, blighting factors or the causes of blight. Examples of eligible uses of funds from past TOD Program awards include: • Public plaza with pedestrian lighting, landscaping, bike racks and bus shelter adjacent to a commercial development located along a high -frequency transit corridor; • Site acquisition for redevelopment; • Utility upgrades and streetscaping in a redevelopment area along a transit corridor; • Demolition, utility relocation, and lighting for a high density, mixed-use development near an LRT station. F7 2012 Transit Oriented Development Program Supplemental Funding Round Request for Proposals page 2 Program Criteria Selection criteria include, but are not limited to: A. Proximity to transit and transit connections • Proximity, physical orientation toward, and connection to transit. • Extent to which the project actively promotes transit ridership. Selected projects must work with the County to include evaluation tools (such as surveys) to measure impacts on transit ridership. B. Principles and outcomes of transit -oriented development • Mix of uses and the degree to which projects support expanded mobility, employment, recreation, and housing choices. For projects that include a housing component, extent to which projects align with Hennepin County's affordable housing priorities, as identified in Affordable Housing Incentive Fund (AHIF) Guidelines and Criteria (see www.hennepin.us, keyword "AHIF"). Market -rate projects will also be considered. • Use of transit -oriented and pedestrian -oriented design principles and extent to which projects contribute to a vibrant, walkable, bikeable community that encourages multiple modes of transportation and aligns with Active Living Hennepin Communities (ALHC), www.hennepin.us/activeliving. See also "Resources" section below. • Likelihood of catalyzing development, stimulating private investment and enhancing the tax base. • Job creation and retention. C. Financial feasibility, need for financial assistance, and readiness • Extent to which projects leverage other public and private resources, as demonstrated by existing financing commitments. • Extent to which projects demonstrate readiness and an ability to commence the project no later than early 2013 and complete the eligible activities no later than December 31, 2014. • Extent to which projects demonstrate that funding from other sources, both private and public, is insufficient and TOD Program funding is needed. Application Process Applicants must submit one electronic copy (on disc or USB drive), one original, and four complete copies of the application to the address listed below. Hard copies must be unbound, with only paper or binder clips attached. Double sided documents are strongly preferred. Direct any questions and submit applications by August 23, 2012 at 4:00 p.m. to Patricia L. Fitzgerald, Principal Planning Analyst Hennepin County Housing, Community Works and Transit 701 Fourth Avenue South, Suite 400 Minneapolis, MN 55415 direct -63.2-543-o864, email patricia.l.fitzgerald@co.hennepin.mn.us Potential applicants are strongly encouraged to review projects with Ms. Fitzgerald prior to submittal. A selection committee including HCHRA staff and additional contributors, as needed, will review applications and may request additional information from applicants. The HCHRA may elect to allocate funding to Hennepin County projects that meet TOD Program criteria. Staff anticipates presenting funding recommendations to the HCHRA Board on October 9, 2012. Funds are anticipated to be available for eligible expenditures incurred after final contracts are executed following final Board action. 11 2012 Transit Oriented Development Program Supplemental Funding Round Request for Proposals page 3 Under Minnesota law, data submitted by a business to a government entity in response to a request for proposal are private or nonpublic until the responses are opened. Once the responses are opened, the name of the proposer becomes public. All other data in a proposer's response to a request for proposal are private or nonpublic data until completion of the evaluation process. Completion of the evaluation process means that the government entity has completed negotiating the contract with the selected proposer. After a government entity has completed the evaluation process, all remaining data submitted by all proposers are public with the exception of trade secret data as defined and classified in Minnesota Statute Section 13.37. A statement by a proposer that data are copyrighted or otherwise protected does not prevent public access to the data contained in the response if such data does not qualify as trade secret data. This request for proposals does not commit Hennepin County or the HCHRA to pay any costs incurred in the preparation of a proposal forth is application. Hennepin County and the HCHRA reserve the right to acceptor reject any or all applications received, to acceptor reject any late applications, to rescind the request for proposals, to request additional information as deemed necessary to review any application, to negotiate with all qualified proposers, to use any or all proposer ideas and/or approaches presented, or to cancel in part or in its entirety this request for proposals, if it is in the best interest of Hennepin County and the HCHRA to do so. Hennepin County and the HCHRA may require the entities selected to participate in negotiations to submit any fiscal, technical, or other revisions of their proposals that may result from negotiations. Resources Transit -Oriented Development U.S. Department of Housing and Urban Development, Sustainable Communities, http://portal.hudAo " !: � �':'Ea'' �Jfices/sustainable_ housing_ communities Metropolitan Council: Guide for Transit -Oriented Development, www.metrocouncil.or_Tannin TOWtod,' Urban Land Institute (ULI): Ten Principles for Successful Development Around Transit, www.uli.oro/ResearchAndPublicatt_o isjke� o ,. , Joc,-n ent-s/Reseat-chAndPublications/Reports/T enPrinciples/TP D-evTransit.ashx Reconnecting America, Center for Transit -Oriented Development, www.reconnectin-gani(?rica.org/pul)li(/teports "What Does Density Look Like?" I�?' g/cped planning -zoning Saint Paul Transit -Oriented Development Guidebook for the Central Corridor, http://www.stp,.: Transit Corridors Regional Transportation rp_�r.vv���..metrocou�,ul.ory/t-ansportationLransportation.htm Central Light Rail Corridor, wv w.centr Icq r c or_c Southwest Transitway Light Rail Corridor, v, ww.soullrwesttransitway.otg Bottineau Transit Corridor, www.bottransit.orc Active Living and Complete Streets Active Living Hennepin Communities (ALHC), vjww.hennepin.us/activeliving Active Design Guidelines, www.n_yc cov/html/ddc/htmll/design/active design.shtml Minnesota Complete Streets Coalition, vvv,;, ti% nin(onrT)letestreets.orc - Minnesota Department of Employment and Economic Development Transit Improvement Areas (TIAs) http://www.positivelvniinnesota.cori /Gov_e_rri.n>ent]Fi_nancia.l_Assistarice Site_Cleanup Redevelopment, Transit Funding/Transit Improvement Areas.aspx [j 2012 Transit Oriented Development Program Supplemental Funding Round Request for Proposals page 4 Hennepin County Housing and Redevelopment Authority ' 701 Fourth Avenue South, Suite 400 Minneapolis, MN 55415 www.hennepin.us 203.2 Transit Oriented Development Program Supplemental Funding Round Application 1. Project name 8th Avenue Ramp 2. Applicant City of Hopkins Application contact, title Tara Beard, Community Development Coordinator Address 1010 1st St S Hopkins MN 55343 952-548-6343 tbeard@hopkinsmn.com Phone Email I Project Main site address 15 9th Ave N, 14 8th Ave N, 22 8th Ave N location City Hopkins Hennepin County District 6 Name of Redevelopment Redevelopment Area 1 Area / Housing District (attach adopting resolution & map) Designated Transit ® Yes ❑ No Name: Hopkins Station Improvement Area (TIA)? Transit lines, stations, or Rte 12 (hi -frequency), Rte 618, Rte 664, Rte 665 (express) stops within 1/4 mile (note express routes and/or frequency of service) Rte 12 (hi -frequency), Rte 618, Rte 664, Rte 665 (express) Transit lines, stations, or stops within 1/2 mile (note express routes and/or frequency of service) 4. Proposed use of funds (eligible Construction funding for a publicly owned and operated parking activity or activities) (25 words or less) structure to support TOD. 5. Amount requested $250000 6. Has the municipality passed a multijurisdictional resolution supporting the application? Attach resolution. ® Yes ❑ No ❑ In process H 2012 Transit Oriented Development Program5upplemental Funding Round Application page i 7. Attach an aerial of the project area, with the location where the eligible activities will occur clearly marked. Show project site boundaries, nearby transitway(s), transit stops, and other relevant information. 8. Project description: Provide a brief narrative description of the project and what makes this project transit - oriented development. If applicable, include basic information about proposed land use, commercial square footage, number of residential units (if applicable), building height and bulk, number of parking spaces, ownership structure, identified tenants/owners. (zoo words or less) Hopkins has run a successful shared parking system in its downtown that consists of many small surface lots and one ramp on the west side of town. The current parking capacity is stressed, especially on the east end of Mainstreet. In June of 2012 the City of Hopkins commissioned a parking ramp feasibility study and determined that a new structure serving the east end of Mainstreet was feasible at the project location. Consolidating two 8th Avenue parking lots into a new public ramp on 8th Avenue North (just north of Mainstreet) accomplishes four transit -oriented goals: 1) Allows for the redevelopment of a public surface lot in the critical 8th Avenue South TOD corridor; 2) Directs vehicular traffic north of Mainstreet so that pedestrian and bicycle access can be emphasized south of Mainstreet, and 3) Reduces the need for existing and future TOD to provide 100% of their parking on site, thus reducing the cost of development. 4) Builds capacity within the shared parking system for entertainment and dining uses, strengthening downtown Hopkins as a destination along the SW LRT line. The ramp location is far enough (1/2 mile) from the LRT station that it will not be a desirable park and ride location, but will accommodate vehicular traffic (which will remain despite increased density and access to transit) away from key TOD sites and the station itself. g. Financing: Identify all sources of funding for the project and status of securing proposed funding in the table below. Attach a detailed capital pro -forma (sources and uses), and a 10 year operating pro -forma with cash flow projections. Show all formulas and assumptions. Attach funding commitments, preliminary loan commitments, etc. Source Committed Type of Funds* Amount (Yes/No) See Attachment Total P,j 2012 Transit Oriented Development Program5upplemental Funding Round Application page 2 TOD request as % of TDC *Specify "grant," "owner's funds," "deferred loan," "amortizing loan," etc. io. Need for financial assistance: Describe why TOD funds are needed to supplement other sources. (75 words or less) The City of Hopkins has extremely limited funds for development activities. Our ability to bring in financial assistance through traditional tools such as assessments or tax increment financing is very limited. The Hopkins HRA's tax levy is modest, and is dedicated to staffing. The City does not have any other sources of funds to be used as match for design work, so the TOD grant is critical for leveraging other sources of funding. si. Readiness: Describe the project's readiness and proposed timeframe for project commencement, completion of the eligible activities, and overall project completion. List all significant project milestones achieved to -date. Attach evidence of site control, if applicable. Attach a project schedule, including anticipated dates of applications and commitments for any uncommitted financing sources, closing on project financing, beginning and end of construction, etc. (ioo words or less) The city owns half the site, and the remainder of the land is on the market. A real estate appraisal is currently underway and negotiations will begin thereafter. The city anticipates negotiation and due diligence will be completed in the next 5 months, with closing anticipated by the end of 2012. The majority of construction financing is being sought in grant rounds this year, and any gaps will be sought in 2013 funding rounds or city actions, depending on the funding source. Design and engineering would also commence in 2013 with a construction start anticipated in 2014. Completion would be expected by 2015. H 2012 Transit Oriented Development Program5upplemental Funding Round Application page 3 sz. Alignment with TOD Program Priorities. a. Location & connections. Describe the project's proximity to transit as well as the project's physical orientation toward, and connection to transit. Describe the pedestrian, bicycling, and transit connections to other areas of interest, such as commercial areas, employment centers, open space, and other amenities. Explain how transit ridership will be measured at completion. (ioo words or less) The project is two and a half blocks north of the future Hopkins Station on the SouthWest LRT line, and 1/2 block north of Mainstreet. The connection between the Hopkins Station and Mainstreet is imperative to capitalize on the future transit riders coming to downtown Hopkins. The city has been developing an ambitious and pedestrian "seductive" vision for this connection that includes increased density and active first floor uses at key redevelopment sites, art -infused placemaking, and a bicycle trail connecting two regional trails. One of the challenges for this vision is the need for parking. While the corridor is primed for TOD, it has been difficult to provide even minimal parking for the densities desired to support transit. Furthermore, one key redevelopment site on the corridor is a public surface parking lot whose spaces are vital to many Mainstreet businesses that have no private parking. A parking ramp north of Mainstreet but still within close walking distance to the 8'�' Avenue corridor south of Mainstreet allows the TOD sensitive area to be built to its full potential. Other strategies the city has explored to implement the TOD vision for the 8th Avenue corridor include making 8'r Avenue South a one-way in order to widen sidewalks and allow for the aforementioned bike trail. b. Mix of uses. Describe the mix of uses (if applicable). If the project includes a housing component, list the number and percentage of affordable units, the level and term of affordability. If the project includes a commercial or employment component, list the number and type of businesses created or retained, and the number of jobs created or retained (FTEs). Describe how these numbers were generated. (75 words or less) The redevelopment sites that will become feasible if parking is consolidated and relocated to the proposed 811 Avenue ramp will be guided by the mixed-use designation in our comprehensive plan. That means that redevelopment on 8th Avenue South will be 4-6 stories in height, with FARs over 2.0, and maximum parking requirements. Exact land uses are unknown, but first floor uses will be required to be active. c. Design. Describe how the project uses transit -oriented and pedestrian -oriented design principles, encourages multiple modes of transportation and aligns with Active Living Hennepin Communities (ALHC). Attach a site plan, elevations, and/or photos. (75 words or less) The project reduces parking needs in a TOD-sensitive area and allows 811, Avenue South to become the pedestrian seductive environment that is envisioned. The corridor will need fewer curb cuts, fewer street parking spots, and will have higher densities if additional parking is provided north of Mainstreet. H zoiz Transit Oriented Development ProgramSupplemental Funding Round Application page 4 d. Impact on future development. Describe the project's likelihood of catalyzing further development, stimulating private investment, and enhancing the tax base. (75 words or less) This project is paramount to redeveloping the existing surface lot on 8th Avenue South. Redevelopment of that site will return it to the private sector, enhancing the tax base significantly. Application Checklist ® Application form ® Redevelopment Plan/Project Area or Housing District map ® Redevelopment Plan/Project Area or Housing District adopting resolution ❑ City resolution authorizing the TOD Program application and participation in multijurisdictional project ® Aerial map showing location and transit connections ❑ Capital pro -forma ❑ Operating pro -forma ❑ Copies of all funding commitments, preliminary loan commitments, etc. ❑ Evidence of site control ® Project schedule ® Site plan, elevations, and/or photos H 2012 Transit Oriented Development ProgramSupplemental Funding Round Application page 5