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VII.1. Approval of the Joint Powers Agreement Terms for Disposition of Excess Land; Elverum CITY OF HOPKINS City Council Report 2026-071 To: Honorable Mayor and City Council Members Mike Mornson, City Manager From: Kersten Elverum, Director of Planning & Development Date: June 16, 2026 Subject: Joint Powers Agreement Terms for Disposition of Excess Land _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve the Terms of the Joint Powers Agreement for Shady Oak Station Excess Property and Authorize Staff to Prepare the Final Document for Execution. OVERVIEW To facilitate the construction of the Green Line Extension, the Metropolitan Council purchased the former Hopkins Tech Center property at 11111 Excelsior Boulevard and demolished the large structure on the site. The rail and associated infrastructure, station platform and plaza were constructed, along with a 182-car park and ride lot and the extension of 17th Avenue through the site. The remainder of the land has been deemed excess and the Metropolitan Council intends to offer it for sale through a Request for Proposals (RFP) process. The Metropolitan Council believes the most effective way to dispose of the property is through the Hopkins Housing and Redevelopment Authority (HRA), utilizing the HRA’s statutory authority. The City of Hopkins/Hopkins HRA is also interested in being a partner in the RFP process. The terms of a Joint Powers Agreement (JPA) serve as the framework between the parties, outlining the shared goals and objectives, roles and responsibilities for the process of developing the property. Terms of the Joint Powers Agreement According to the proposed terms, the City of Hopkins/HRA would participate in the RFP and be a conduit for the sale. Under this arrangement, the HRA would work with the Metropolitan Council to draft the RFP for the excess property that supports the vision identified through the 2025 Shady Oak Station Area Development Strategy Update. Key elements of the vision include transit-supportive development with an emphasis on increased tax base, a vibrant and art-forward district that supports an active lifestyle, and using the Minnesota River Bluffs Regional Trail as an organizing feature. Planning & Economic Development Metropolitan Council Responsibilities The Metropolitan Council will be responsible for securing approvals for all aspects of the disposition process from the Federal Transit Administration (FTA), Hennepin County and the Minnesota Management and Budget (MMB). They agree to provide reasonable due diligence through sharing property information including environmental, site survey and geotechnical studies and will indemnify the HRA/City for any environmental matters associated with the land. They have also agreed to work in cooperation with the City on grant applications, permits for the interim use of excess property and commit to pursue long-term bike storage facilities for the Shady Oak Station area. The Metropolitan Council will have the appraisal completed and draft the purchase/option agreement with the Hopkins HRA. They will have at least one representative on the developer selection panel. The terms also include a statement that the Metropolitan Council will agree to consider positioning and integrating the Park and Ride with development in the future. Hopkins HRA Responsibilities The HRA would lead the procurement process, along with the Metropolitan Council as a partner, including the drafting of the RFP, marketing the opportunity, meeting with interested parties and selecting the developer. The HRA would enter into a purchase agreement with the Metropolitan Council to buy the property for fair market value, as identified through appraisal, and simultaneously enter into a purchase agreement with the selected buyer/developer. Under the terms of the agreement, the City/HRA will be responsible for our legal fees in drafting the required documents. Staff will be asking for an ability to discuss reimbursement of costs if the project is terminated by the Metropolitan Council, but the assumption is that staff time and legal fees associated with the sale to a developer will be our responsibility. City of Hopkins Responsibilities The City’s responsibility is administering the land use approvals necessary for development to entitled including zoning approval, right of way/easement determination, and compliance with applicable development policies including Inclusionary Affordable Housing Policy and the Sustainable Building Policy. Next Steps The terms reflect the agreed upon process and will be used as the basis for a Joint Powers Agreement between the City of Hopkins, Hopkins HRA and the Metropolitan Council. If there are no significant changes to the terms, the final agreement will be on a future consent agenda of the HRA and Hopkins City Council. If significant changes are made during drafting the Joint Powers Agreement, the item will be brought back for discussion prior to approval. SUPPORTING INFORMATION • Shady Oak JPA Terms – 5/20/2026 • 2025-Shady-Oak-Station-Development-Strategy-Update-PDF Shady Oak – JPA Terms – 05/20/2026 1) Joint Powers Agreement (JPA) a. Parties: City of Hopkins (City), Hopkins Housing & Redevelopment Authority (HRA); Metropolitan Council (Council) b. Purpose: Serves as the framework between the parties that outlines their shared goals and objectives, roles, and responsibilities for the process in developing the Council Property around the Shady Oak Station in Hopkins, MN. c. Key Points: i. Shared Goals and Objectives. 1. Transit-oriented development on and adjacent to Council Property around Shady Oak Station should be promoted to achieve vitality, safety and economic health through increased tax base, a vibrant, art forward, mixed-use district and an improved pedestrian and bicyclist environment with amenities to support an active lifestyle 2. Redevelopment should follow as much as practicable the design principles as outlined in the Land Use Strategy of the 2025 Shady Oak Station Area Development Strategy Update prepared by Van Meter Williams Pollack and Toole Design and the associated Design Standards Memo 3. The redevelopment potential of the Council Property around Shady Oak Station should be maximized to the greatest extent possible 4. Encourage proposals from developers that have control of adjacent properties (specifically within Minnetonka along the city boundary) for integrated or coordinated developments 5. Redevelopment of the Council owned property around Shady Oak Station should occur as close to opening day of the Green Line Extension as possible. a. Council owned property may be sold in phases, depending on developer interest. Priority of phases are northeast parcel, west parcel, and parcel directly west of the park and ride (see map). Phase I should occur as close as possible to opening day. b. On a case-by-case basis, the Council owned property directly west of the park and ride may be utilized by short-term activation opportunities, subject to Use of Council Property Policy, to test interim programs before Shady Oak – JPA Terms – 05/20/2026 permanent investment, as outlined in the Interim Activation Strategy 6. Minimum sale price shall be the appraised value per FTA and MMB policy 7. Identify a specific timeline for the JPA agreement 8. Need to have language with the ability to terminate the agreement. 9. Each Party will be responsible for paying its own costs, unless otherwise agreed to in writing by the Parties ii. Council actions 1. Work with the Green Line Extension Project funding partners Federal Transit Administration (FTA ), Minnesota Management & Budget (MMB), Hennepin County, and Hennepin County Regional Rail Authority (HCRRA) on process and approval for the sale of the property 2. Provide information and facilitate a discussion allowing Council and HRA to make informed recommendations on the method of procurement 3. Determine the future programming requirements for transit needs and station facilities including facilities needed for a bike-commuter hub. Work in partnership with the HRA to identify funding sources and pursue grant applications for long-term bike storage. 4. Provide reasonably required due diligence, including but not limited to site survey, geotechnical study, and environmental assessment(s), of Council Property to support the solicitation for redevelopment of the land around Shady Oak Station a. The contaminated soils removed were only as warranted based on the GLE project construction, rather than full site remediation. Based on the contamination, the future site use (depending on the land use) may require further remediation or considerations in building design. b. Council will provide copies of any studies on the property to the developer to assist in the due diligence c. Indemnify the HRA/City for any environmental matters associated with the site Shady Oak – JPA Terms – 05/20/2026 5. Conduct a fee simple market value appraisal of the Council Property per MMB and FTA policies 6. Allow its property to be made available for sale as part of the agreed upon procurement process to redevelop the Council Property around Shady Oak Station and allow the selected developer access to the property for due diligence 7. Participate and provide oversight with the HRA in the procurement process related to FTA requirements, marketing of the redevelopment opportunity, and selection of the developer to redevelop the Council Property around Shady Oak Station a. At least one representative from the Council on the review panel b. Council Procurement Office confirms process meets FTA rules (reviewing and approving documents) 8. Draft purchase/option agreement with the HRA/City a. Purchase/option agreement would be cross-contingent with the execution of the HRA/City and developer purchase agreement. 9. Review HRA’s agreements with the developer, including purchase agreement. 10. Participate with the selected developer to subdivide or re-plat the Council Property into Council Development Parcels and Council Transit Parcels per the City of Hopkins’ subdivision process a. Plat/subdivision process will trigger park dedication 11. In the future, agree to consider positioning and integrat ing the Park and Ride with development. 12. As an interim activation strategy, allow for public uses, authorized by the Council’s incidental use policy, on Council Property as described in the Land Use Strategy of the Shady Oak Station Area Development Strategy Update. 13. Except for Council grants, support funding applications on behalf of the developer and/or Hopkins City/HRA for environmental clean-up, transit-oriented development and placemaking activities. 14. Advocate, with the HRA, for pedestrian and bike infrastructure improvements to safely connect new residents and transit riders to area destinations. Shady Oak – JPA Terms – 05/20/2026 iii. HRA actions 1. Lead the procurement process with the participation of all parties in the marketing of the redevelopment opportunity and selection of the entity to redevelop Council Property around Shady Oak Station 2. Lead the negotiation process with the selected Developer with respect to the Developer’s development plan 3. Prepare and execute necessary purchase and development agreements 4. Selected developer, through the HRA, to pay Met Council market value for the property being redeveloped. iv. City actions 1. Define zoning and form-based code standards for the land around Shady Oak Station that align with the vision and recommendations in the Shady Oak Station Area Development Strategy Update. 2. Assist the Council with the process to evaluate the need for areas of public right of way adjacent to Council property 3. Process applications for land use approvals consistent with the City’s Development Code and policies. 4. Prepare and execute necessary development agreements associated with the land use approvals 5. Consult on the public art program for the Shady Oak Station area.