Agenda City Council Work Session City of Edina, Minnesota Edina City Hall Community Room. Tuesday, May 1, :30 PM

Transcription

1 Agenda City Council Work Session City of Edina, Minnesota Edina City Hall Community Room I. Call To Order II. Roll Call Tuesday, May 1, :30 PM III. IV. Grandview Green: Updated Concept for Freeway Lid over Highway 100 Adjournment The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplication, an interpreter, large-print documents or something else, please call hours in advance of the meeting.

2 Descr ipt ion CITY OF 4801 West 50th Street Edina, MN Date: May 1, 2018 Agenda Item #: III. To: Mayor and City Council Item Type: Reports / Recommendation From: Bill Neuendorf, Economic Development Manager Item Activity: Subject: Grandview Green: Updated Concept for Freeway Lid Discussion over Highway 100 ACTION REQUESTED: No action requested. This is a discussion item. INTRODUCTION: Since August 2017, the concept of building a "freeway lid" over a portion of Highway 100 has been further explored. The new structure above the highway lanes would be used as a new public park. The land next to the park would be used for new development - a combination of residential, commercial and civic uses. For the last several months, City staff and representatives have met with MnDOT officials to explore this concept. Outside planning and development experts have been engaged. Preliminary engineering studies have been prepared. Input has been collected from local Commissions. Public open houses have been held to collect additional input. A summary of this additional input and an updated rendering of the concept will be presented for discussion purposes. ATTACHMENTS: Grandview Green Presentation

3 The Grandview Green: Spring Update to HRA April 26, HRA Grandview Green Presentation 1

4 Agenda For Today: History Concept Update Technical Studies Policy Financial Overview HRA Discussion On Next Steps HRA Grandview Green Presentation 2

5 HRA Discussion Sneak Peak: Should the Grandview Green be included in the Comprehensive Plan? Should the HRA sign a MOU with MnDOT? Should we begin lease negotiations with MnDOT? Should we create a phased development plan for the Grandview Green? Should we build a financial model that supports the phased development plan? HRA Grandview Green Presentation 3

6 Interstate and Highway Lids are already located across the United States- including in MN! HRA Grandview Green Presentation 4

7 Grandview History HRA Grandview Green Presentation 5

8 Grandview Fall Feasibility Study Urban Land Institute TAP AAF Design Managers Academy Community Open Houses Community Roadshow Technical Studies Policy Financial Structure Property Rights MnDOT Sustainability Transportation Storm Sewer Sanitary Sewer Market Research Water Main = an updated Grandview Green Concept! HRA Grandview Green Presentation 6

9 Grandview District: 7 Guiding Principles Leverage publicly owned parcels and civic presence to create a vibrant and connected district that serves as a catalyst for high quality, integrated public and private development. Enhance the district s economic viability as a neighborhood center with regional connections, recognizing that meeting the needs of both businesses and residents will make the district a good place to do business. Turn perceived barriers into opportunities. Consider layering development over supporting infrastructure and taking advantage of the natural topography of the area. Design for the present and future by pursuing logical increments of change using key parcels as stepping stones to a more vibrant, walkable, functional attractive and life-filled place. Organize parking as an effective resource for the district by linking community parking to public and private destinations, while also providing parking that is convenient for businesses and customers. Improve movement within and access to the district for people of all ages by facilitating multiple modes of transportation and preserving future transit opportunities provided by the rail corridor. Create an identity and unique sense of place that incorporates natural spaces into a high quality and sustainable development reflecting Edina s innovative development heritage HRA Grandview Green Presentation 7

10 Concept Update HRA Grandview Green Presentation 8

11 2017 Concept Review Date Feedback Event Date Feedback Event 9/5 Urban Land Institute Technical Assistance Panel 10/13 Edina Chamber of Commerce 9/11 Community Health Commission 10/31 Edina Morning Rotary Club 9/12 Parks and Recreation Commission 11/1 American Architectural Foundation: City Managers Design Academy 9/13 Planning Commission 11/9 Public Open House at City Hall 9/26 Human Rights and Relations Commission 11/13 Public Open House at City Hall 9/28 Arts and Culture Commission 12/14 Grandview Green Alumni Focus Group 9/28 Transportation Commission MnDOT Meetings Twice Per Month 10/10 Historic Preservation Commission Public Notices: 75 Community Boards (coffee shops, libraries, grocery stores, etc.) Newspaper Event Calendars Online Announcements 900+ Resident s (individuals who signed up for Grandview district updates over the past ten years) 10/12 Environment and Energy Commission 10/19 Edina Noon Rotary Club HRA Grandview Green Presentation 9

12 The Grandview Green Vision Statement: Grandview Green is a model for connected, healthy, and sustainable living that operates with netzero buildings, infrastructure, and utility services. Mission Statement: Creates new public green space, increasing connectivity to nature and community Reestablishes street grids, safe pedestrian walkways and bicycle paths Reconnects neighborhoods and communities divided by Highway 100 Delivers a fiscally sustainable model: new public amenities are born through the private development of public land Employs sustainability efforts through conservation, renewable resources, and resilient infrastructure reducing long-term operational costs Provides an opportunity to co-locate residential, commercial and public community centers in one district Serves as a case study for sustainable lid development in Minnesota HRA Grandview Green Presentation 10

13 Weaknesses: Strengths: 1. Traffic Congestion 1. Safe Walking and Biking 2. Increased Density 2. New Civic Amenities 3. Not Enough Green Space 3. More Green Space 4. Why Change? 4. Change is Overdue HRA Grandview Green Presentation 11

14 Create a vista to City Hall; Let Vernon and Eden streets be the natural park boundaries. Don t put a road through the park. Instead consider this east-west connection as a bike-pedestrian route. Vehicular edges are okay as they promote part access and better connections across the site. A master developer is not recommended. While this could be done, the panel felt having a private sector team between the public and the city could add complications that make the process more challenging. In a sense, the City is the master developer. Conduct a lid-area study to develop a master plan for the expanded district area and determine its boundaries as soon as possible. The Master Plan should allow for flexible zoning and uses. Developers will not want to face second-guessing down the road. Creating a vision and goals for the public realm as early as possible will build community interest and support and help developers envision themselves in the area. Affordable housing for workers employed in Edina should be a priority for Grandview Green. Consider holding one or more sites in Grandview Green specifically for affordable or mixed-income housing. The cost of land, especially in places like Edina, is a major impediment for housing developers. If a site or two were reserved for affordable housing at a discounted price, it is likely that the rest of the financing package will come together. In addition to Edina s Affordable Housing policy, more flexible zoning standards in Grandview may also incentivize affordable housing. One idea would be to automatically allow a commercial property to become mixed use with the inclusion of a certain percentage of affordable units HRA Grandview Green Presentation 12

15 Prepare alternative density models and corresponding cost-benefit analyses to determine project viability at different buildout levels. Start with what is the least that can happen to make the infrastructure pencil out and move up from there to minimize risk. Consider using the Alternative Urban Areawide Review (AUAR) process to facilitate alternative density models. This should be done after completing the master plan to help understand the cumulative impacts of development to the district and set the baseline for maximum densities. Get a firmer picture of the district parking needs. Determine how it will be funded and who will build it. The private sector likely cannot afford to front end parking costs. Identify potential phasing for construction. Look for opportunities for sustainability and shared uses across the district such as stormwater collection, garbage and recycling, and possibly district energy generation. Start thinking about how work might be phased. This is closely related to identifying shared use opportunities. Developing a plan for how infrastructure and public realm improvements might be phased will improve efficiency, speed time to delivery, and save money. Begin looking for strategic opportunities for land swaps and relocations. Think about how the City can work with existing property owners who may be interested in relocation within or outside of Grandview to aid in accomplishing the vision for the area. Hire a good landscape architect to create drawings that capture the vision for the park / civic space these are the desired highlights of this development HRA Grandview Green Presentation 13

16 Grandview Green: Updated Plan HRA Grandview Green Presentation 14

17 HRA Grandview Green Presentation 15

18 HRA Grandview Green Presentation 16

19 HRA Grandview Green Presentation 17

20 HRA Grandview Green Presentation 18

21 Technical Studies HRA Grandview Green Presentation 19

22 Technical Studies HRA Grandview Green Presentation 20

23 Technical Studies HRA Grandview Green Presentation 21

24 Technial Studies HRA Grandview Green Presentation 22

25 Technial Studies HRA Grandview Green Presentation 23

26 Technial Studies HRA Grandview Green Presentation 24

27 Technial Studies HRA Grandview Green Presentation 25

28 Technical Studies HRA Grandview Green Presentation 26

29 Market Research Study Summary: The Grandview Green site has the potential to be a best in class development in the Twin Cities, incorporating a variety of land uses while incorporating place making into the development with leisure and green spaces. Although the development could incorporate various private sector developments; the catalyst for the Grandview Green project will be centered around the green/open space on top of the lid. The lid concept should be centered on the park and recreational amenities. A park over Highway 100 would take advantage of previously unusable space off the freeway and would not displace any existing property owners. The recreational space has the potential to create economic benefits to the surrounding area while making adjacent parcels more marketable and putting new property on the tax rolls HRA Grandview Green Presentation 27

30 Market Research Study CRITICAL: Transportation: Critical to the success of the project. Could include bike paths, walking paths, etc. Future transit stops and structured parking will be important to meet parking demands for tenants and events. STRONG DEMAND: General-Occupancy Rental Housing: Excellent area for higher-density rental housing in a mixed-use format. Condominium Housing: Strong demand due to pent up demand and favorable demographics for condo housing. Senior Housing: Excellent senior housing site in a mid-rise to high-rise development format. Retail: Excellent location for retail or retail-related commercial uses. Retail could be new concepts different from 50 th and France or Southdale area. Entertainment: High household spending on dining out, entertainment and recreation in the PMA suggests strong demand for restaurants and entertainment venues. Due to the location near the Edina City Hall, other governmental and public uses would be well suited for the Grandview Green area. VIABLE: Office: Viable land use in the longer-term. At the present time, market is soft and not supported. Medical Office: Because of medical concentration near France Ave., medical tenants may prefer being near established concentration of health care users. However, could still attract a user due to access to Highway 100. Lodging: Supply is starting to outpace demand, but a select service brand may be well received at Hwy. 100 and 50 th Street HRA Grandview Green Presentation 28

31 Property Research MnDOT: Completed fee/easement research and mapping for the district Next Steps: the preparation of legal descriptions and deed documents necessary for the transfer of the property rights from Hennepin County to the State of Minnesota (process will begin in a few months after light rail projects are complete). Edina: Completed underlying title research for the district Next Steps: City will acquire underlying fee for one parcel where Hennepin County owns an easement MnDOT is, however, taking the lead to research the process of transferring particular interests to the City HRA Grandview Green Presentation 29

32 Transportation Study Built upon the 2016 Grandview Transportation Study Added new public land with assumed uses in Fall 2017 concept map Result: Supported with some concerns under current transportation model What will transportation look like in 5-10 years? Car sharing, bike sharing, autonomous vehicles big changes coming HRA Grandview Green Presentation 30

33 Transportation Study Handout Signalized Intersections: Level of Service C or better Unsignalized Intersection: Level of Service D or better Identified Concerns: Loss of east-west connector road, now dedicated to pedestrian and bicycle Increased traffic volumes on 50 th Street Type of facility on Vernon Avenue Cost: estimated $25 million HRA Grandview Green Presentation 31

34 Sanitary Sewer Study $3-$5.8 Million HRA Grandview Green Presentation 32

35 Water Main Study $3.1 Million HRA Grandview Green Presentation 33

36 Storm Sewer Study $ Million HRA Grandview Green Presentation 34

37 Sustainability Study: Impact Areas Identified HRA Grandview Green Presentation 35

38 Sustainability Energy Study: District Services Business as Usual Development (A1) Equivalent of anticipated MN 2021 Energy Code High-Efficiency Buildings + Electrification (A2) ~20% more efficient than anticip MN Energy Code Electric space & water heating systems Central Plant District (A3) 4-pipe system Allows for simultaneous heating & cooling Ground-Source District (A4) Moderate temperature loop Heat pump integreation allows for heating & cooling benefits HRA Grandview Green Presentation 36

39 Sustainability Energy Study: Total Site Carbon Emissions by Scenario Ground Source + Rooftop Solar PV *Based on current PUC approvals, in 2030 Xcel Energy s emissions factor is anticipated to be lbs/mwh. HRA Grandview UnofficiallThis Green Presentation does include additional carbon reductions that has been unofficially 37 announced by Xcel Energy in October 2017.

40 Update on Proposed Legislation Current state law does not have a provision for this type of development. Other MN communities exploring lid development include St. Paul and Duluth. Legislation for Special TIF Legislation to Finance the Grandview Green has been introduced in both the House and Senate: HF 4408 (Anselmo, Rosenthal)/ SF 4004 (Franzen). Much of our effort this session has been getting local legislators up to speed, identifying the TIF tools needed for financing, finalizing bill language, and starting discussions with key legislative stakeholders. Edina and our lobbying team have met with the House and Senate Tax Chairs, the Governor s Office, the MN Department of Transportation and other key decision makers in the Legislature. We received a hearing in the MN House of Representatives on Friday, April 20, Local legislators and chairs have noted that this is a large and complex project and may take more than one session to accomplish legislatively HRA Grandview Green Presentation 38

41 Initial Financial Assessment Tax Projections and TIF Pay 2018 Rates Development PROJECT INFORMATION - Total Build Out Square Feet / Value per sq. ft. or Estimated Market Class Tax Units Value per unit Value Rate Capacity Commercial 82,000 $200 $16,400, % 325,750 Multi-Family Institutional / Civic 1,180,000 $ ,000 $200 $236,000, % 2,950,000 % Increase to City of Edina Taxable Market Value $21,200, % % 0.00% $273,600,000 $3,275, % 2.31% Tax Capacity 0.14% 0.23% 2.04% 2.08% Development TAX BREAKDOWN - Annual Taxes at Full Build Out Estimated Tax Rate and Fiscal Disparities Local TC City County School Mk Value State-wide Misc Value Capacity Taxes Taxes Taxes Portion Portion Dist Taxes Taxes Commercial $16,400, ,750 Tax Rate Gross Taxes $152,250 $247,970 $61,496 $94,528 $23,555 $68,392 $36,378 $142,890 $579,489 Multi-Family $236,000,000 2,950,000 Tax Rate Gross Taxes $0 $3,312,732 $821,546 $1,262,836 $314,677 $913,674 $523,495 $0 $3,836,227 Institutional / Civic $21,200,000 0 Tax Rate Gross Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $152,250 $3,560,702 $883,041 $1,357,364 $338,231 $982,066 $559,874 $142,890 $4,415,717 TIF Present Value (@4.00%): $48,429, HRA Grandview Green Presentation 39 TOTAL

42 Initial Financial Assessment Potential Public Sources and Uses Years Total PUBLIC SOURCES Land Sale / Lease / Assessment Commercial (@ $45 psf land use) 733, , ,470-1,452,330 Multi-Family (@ $15,000/unit) 2,700,000-7,290,000-7,710,000-17,700,000 Institutional / Civic (@ $45 psf land use) 2,575, ,575,980 Land Revenues Subtotal 6,009,075-7,857,765-7,861,470-21,728,310 Developer Contributions (% of up-front infrastructure cost) Other City Funding (100% of infrastructure cost net of land proceeds: TIF, Fees, Bonds, etc.) 38,186,905 - (7,857,765) - (3,901,470) - 26,427,670 Parking (Developer, Fees, Bonds, etc.) 13,500,000-14,400,000-20,550,000 8,550,000 57,000,000 Grants TOTAL CAPITAL FUNDING 57,695,980-14,400,000-24,510,000 8,550, ,155,980 PUBLIC USES MNDOT Acquisition Costs Land Write-Down (Civic Uses) 2,575, ,575,980 Transportation Infrastructure 25,000, ,000,000 Utility Infrastructure (high side of ranges) 12,000, ,000,000 Lid Development 4,620, ,960,000-8,580,000 Parking Infrastructure (1,900 $30k / stall)* 13,500,000-14,400,000 20,550,000 8,550,000 57,000,000 Environmental Cleanup Costs TOTAL CAPITAL EXPENSES 57,695,980-14,400,000-24,510,000 8,550, ,155, HRA Grandview Green Presentation 40

43 1 st HRA Discussion Topic: Comp Plan Should the Grandview Green be included in the Comprehensive Plan? HRA Grandview Green Presentation 41

44 Technical Studies HRA Grandview Green Presentation 42

45 Technical Studies HRA Grandview Green Presentation 43

46 2 nd HRA Discussion Topic: MnDOT Should the HRA sign a MOU with MnDOT? Should we begin lease negotiations with MnDOT? HRA Grandview Green Presentation 44

47 Technical Studies HRA Grandview Green Presentation 45

48 Technical Studies HRA Grandview Green Presentation 46

49 3 rd HRA Discussion Topic: Development Should we create a phased development plan for the Grandview Green? Should we build a financial model that supports the phased development plan? HRA Grandview Green Presentation 47

50 Technical Studies HRA Grandview Green Presentation 48

51 Technical Studies HRA Grandview Green Presentation 49

52 Contact Information Scott H. Neal City Manager Bill Neuendorf Economic Development Manager Katie Clark Sieben Project Consultant HRA Grandview Green Presentation 50