HRA Report 2012-014 Cooperative Agreement for Shady Oak Road Community Works ProjectG1TY OF
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October 11, 2012 N O P K i N S HRA Report 2012-14
COOPERATIVE AGREEMENT FOR SHADY OAK ROAD COMMUNITY WORKS
PROJECT
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Cooperative
Agreement for Shady Oak Road Community Works Project between the Hennepin County
Housing and Redevelopment Authority, the Housing and Redevelopment Authority in and
for the City of Hopkins and the Economic Development Authority in and for the City of
Minnetonka,
With this motion, it is understood that staff has the ability to make minor modifications to
the agreement that do not affect the overall intent.
Overview
As the planning for the Shady Oak Road project progressed it was realized that there
would be an impact on the parking availability within the area from Oak Drive to Bradford
Road, largely on the west side of the roadway. In order to provide for an enhanced
business environment, Hennepin County pledged up to $3 million in Community Works
funds. The purpose of the Community Works program is to stimulate economic
development, strengthen communities and increase the tax base.
The City of Hopkins goals for the use of Community Works funds are to help position
businesses and property owners to succeed through and after construction of the
expanded roadway. The funds will be used to strategically acquire property from willing
sellers in order to create redevelopment opportunities and project area parking.
One scenario of how the Community Works funds could be used is attached to the
agreement as attachment A, but it does not represent the only option available under the
agreement. Once the funds are committed, staff will begin negotiations for the use of the
Community Works funds with the various parties.
Primary Issues to Consider
■ What are the terms of the agreement?
Supporting Documents
f imperatiZAAgrem tfor Shady Oak Road Community Works Project
C!
Kerstgri Elverum
Director of Planning & Development
Financial Impact: $ 0
Related Documents (CIP,
Notes:
Budgeted: Y/N
ERP, etc.):
Source:
HRA Rpt 2012-14
Shady Oak Road Agreement
Page 2
Analysis of the Issues:
The major terms of the Community Works Agreement are as follows:
■ The maximum amount of Community Works funds that will be available for the
project is $3 million.
■ Additional funds will be made available through the road project budget to off -set
the cost of the ROW acquisition.
■ The term of the agreement is December 1, 2012 to December 31, 2017.
■ The funds will be distributed on a reimbursement basis.
■ The use of Community Works funds must result in a minimum of one
redevelopment site with a 10,000 sf development or 8,000 if owned or occupied by
an existing business within the project area
■ The priority of the use of the funds is established as follows:
First Priority — purchase of land, relocation of tenants, demolition,
environmental abatement, and restoration of properties
Second Priority — Construction of new parking lots
Third Priority — Improvements to existing parking lots
Fourth Priority — Fagade improvements
Fifth Priority — Other public amenities
■ Private parking lot improvements will be coordinated through a project manager
assigned by the City of Minnetonka, but approved by the City of Hopkins
Alternatives
The HRA has the following alternatives regarding this item:
• Approve the Agreement as recommended.
• Recommend changes to the Agreement.
• Elect not to accept the Community Works funds.
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