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2000-10-10 AGENDA MOUND HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 10, 2000 6:00 P.M. 6:00 1. OPEN MEETING 2. APPROVE AGENDA, WITH ANY AMENDMENTS 3. APPROVE MINUTES OF SEPTEMBER 26, 2000, MEETING 4. MARY BUJOLD OF MAXFIELD RESEARCH, INC. WITH TOWN CENTER PRESENTATION 5. INFORMATIONAL/ MISCELLANEOUS ~' A. LIVABLE COMMUNITIES GRANT APPLICATION BY BRUCE CHAMBERLAIN 7:15 6. ADJOURN ~.~.. _ HRA MINUTES -REGULAR MEETING -SEPTEMBER 26, 2000 The Housing and Redevelopment Authority of the City of Mound, Hennepin County, Muuiesota, met on Tuesday, September 26, 2000, at 6:30 p.m., in the Council Chambers at 5341 Maywood Road, in said City. Those present: Chairperson Pat Meisel; H1tA Board Members: Andrea Ahrens, Bob Brown (6:40 p.m. arrival), Mark Hanus, and Leah Weycker. Also in attendance were City Manager Kandis Hanson, City Attorney John Dean, Mound Visions Coordinator Bruce Chamberlain, and Recording Secretary Diana Mestad. Others present: Dorothy and Bill Netka, Orv Burma, John McKinley, Peter Meyer, Betty Hoy, John Bergerman, Tom Casey, Greg Petrick, Kay Hudstrom, Lorrie Ham, Lowell Olson. Chairperson Meisel called the meeting to order at 6:35 p.m. APPROVAL OF AGENDA. The City Manager added Item 5.1 "Proposal for Phase II Environmental Site Assessment of the Lost Lake Dump" to the Agenda. TAX INCREMENT FINANCING. 1.0 APPROVE MINUTES OF SEPTEMBER 13, 2000, MEETING. MOTION, by Ahrens, seconded by Hanus, to approve the Minutes of the September 13, 2000 meeting. The vote was unanimously in favor. Motion carried. 4-0. 1.1 STAFF REPORTS. A. MEDIATION PROCEEDINGS. The City Manager stated that the property owners in the John's Variety section of downtown met with Staff and the mediator for presentation of the three options to provide additional parking for the downtown. She stated that there is one abutting property owner willing to sell land for use as additional parking space. Bruce Chamberlain, the Mound Visions Coordinator, stated that it is being suggested to use the alley behind the buildings as a one-way access to the parking lot. The lot would have cone-way exit to 110 southbound and would have 8 to 9 stalls. He stated that there is an apartment building on the other side of the alley. The City Manager pointed out three of the benefits to this plan including redevelopment of the corner, an attractive lot in the new downtown area, and providing additional parking to the 6,3 Mound HRA Minutes. September 26, 2000' businesses. She further stated that two of the proposals under consideration would allow the businesses to own the parking lot. HRA Board Member Weycker asked whether this lot would be taken over when County Road 15 is widened in the future. The Mound Visions Coordinator stated that he has been working with the County and they are not anticipating widening this leg of County Road 15. What is important to the County is that the lanes line up at the intersection. ~~~ The City Manager added that it was not in the County's 20-year plan to widen County Road 15 itr thls~pert}en.'. ~~-~ _ Y c•_. HRA Board Member Hanus asked what was the likelihood of this being a workable solution and remaining privately held by the businesses. The City Manager stated that she did not know at this point. HRA Board Member Brown stated that he was under the impression that County Road 15 would be seven lanes wide and wondered why that was necessary. The Mound Visions Coordinator stated that it would be S lanes at the intersection including Z turn lanes. HRA Board Member Brown asked if the County would allow an exit onto 110. The Mound ~ Visions Coordinator stated that this would be a right turn only exit, as the County would not allow left turns out of the parking lot. HRA Board Member Weycker asked whether this was the most favored option at the meeting. The City Manager stated that this was the only design presented, but that three payment options were being considered; two of which allowed the businesses to own the lot. She further stated that the property owners were expected to give their response to the options by October 11. 1.2 POST OFFICE A. APPROVAL OF SETTLEMENT AGREEMENT WITH WILLETTE PROPERTIES. The City Attorney stated that the Board was being asked to approve the settlement agreement on the Willette property. The amount is $89,100 or $5.50 per square foot, which is .25¢ above the appraised value. He further stated that the United property settlement was approved at a prior meeting and this is the second half to this project. c~ MOTION, by Brown, seconded by Hanus, to approve the settlement agreement as presented. The vote was unanimously in favor. Motion carried. 5-0. 2 ~y Mound HRA Nrnutes, September 26, 2000 1.3 REQUEST AUTHORIZATION TO PREPARE PLANS AND SPECIFICATIONS FOR DEMOLITION OF OLD MOUND TRUE VALUE BUII.DING. This item was moved to the end of the Agenda to wait for the City Engineer's arrival. 1.4 DISCUSSION/ACTION ON EDC RECOMMENDATION TO APPROVE CHANGE IN PLANS FOR PARK AND RIDE FACILITY. The Mound Visions Coordinator stated that after discussion with the County and the developers, it has been determined that the original idea of creating a bus pullout is not possible because of the roadway design. Putting the pullout into the lot would consume a large amount of land. He further stated that in other azeas, metro transit is very populaz and requires the use of ramps, but this location is not expected to grow as quickly. In looking for alternative sites, it has been determined that the best option is the True Value district which would allow shared parking with the retailers. He stated that the surface lot would include 80 to 82 stalls. The post office would require 6 of these stalls, the Pazk and Ride requires 50 stalls, and the remainder would be available for retail pazking. The EDC is recommending the HRA relocate the Pazk and Ride and amend the Visions Plan accordingly. HRA Boazd Member Ahrens asked where the post office pazking spaces aze currently located. The Mound Visions Coordinator stated the spaces aze on City owned property. Chairperson Meisel asked, assuming the proposed land is contaminated, what level of cleanup is required for a pazking lot. The Mound Visions Coordinator stated that it would be easier to cap if the contamination was a petroleum issue, but he was not sure what the extent of the cleanup would be. HRA Board Member Weycker asked whether all the pazking spaces including those allotted to the Pazk and Ride would be needed for retail. The Mound Visions Coordinator explained that peak pazking for the Park and Ride would be during the day, during the week, whereas the retail peak times would be evenings and weekends. He felt this would be an efficient sharing of the space. HRA Boazd Member Hanus pointed out that this plan would allow for vertical pazking if it were to become necessary in the future. Chairperson Meisel asked whether signage would be used to restrict the Pazk and Ride pazking to a particulaz azea. The Mound Visions Coordinator stated that the shelter could be located away from the retail stores and this would encourage transit riders to pazk in that area of the lot. He also stated that Metro Transit would contribute $100,000 to building the shelter. HRA Boazd Member Hanus asked whether it would be possible to incorporate the shelter into a ramp or tunnel in the future. The Mound Visions Coordinator stated that the additional costs involved may not warrant doing so, but that a nice custom shelter could be built. ~- Mound HRA Minutes, September 26, 2000 HRA Board Member Weycker asked how moving the Park and Ride would affect the green space grant. The Mound Visions Coordinator stated he has spoken with MNDOT and there were no issues with building the Park and Ride in 2002 when the County road is built. He stated it was possible to do the grant in phases. HRA Boazd Member Hanus pointed out that there would be a timing issue involved and the City could lose the grant money if the project was not completed by the deadline. The Mound Visions Coordinator stated that there would not be a deadline to finish, but rather a deadline to begin the work. HRA Boazd Member Hanus further pointed out that if the realignment of County Road 15 was delayed, it could delay the start of the Pazk and Ride and result in the loss of the grant. The Mound Visions Coordinator agreed that was a possibility and stated that he will be asking MNDOT for permission to split the grant and will also ask what the consequences of not beginning the project unti12002 would be. He will get back to the Boazd with this information. MOTION, by Hanus, seconded by Ahrens, to approve the new site for the Park and Ride. The vote was unanimously in favor. Motion carried. 5-0. 1.5 PROPOSAL FOR PHASE II ENVIRONMENTAL SITE ASSESSMENT OF THE LOST LAKE DUMP. The Mound Visions Coordinator stated that Phase I of the project is complete and reminded the Board that they had previously approved $6,500 for Phase II. He stated that it has been suggested to enroll this site in the Voluntary Investigation and Cleanup program (VIC). The estimated cost for this is $22,000 - $31,000. If laboratory analysis costs can be paid through the MPCA brownfields program, the cost would be reduced to $12,000 - $16,000, but this application has not yet been formalized. HRA Board Member Hanus stated that there was a possibility that an outside party could double the cost by contesting the study and stated that the Board needed to be prepazed for increased fees. HRA Boazd Member Broom asked where the money for this study would come from. HRA Board Member Hanus stated that it would be HRA money and wondered if it was time to think about selling a bond to cover these costs. He further stated that this work must be done in order to develop the property and wondered if the cost is reimbwsable through TIF. The City Attorney stated it was reimbursable, but that there is no TIF money at this time. MOTION, by Ahrens, seconded by Brown to approve the funds to enroll the property in the VIC program contingent upon a written agreement for a contribution from the MPCA brownfields program. The vote was unanimously in favor. Motion carried. 5-0. 4 ~~ ~.. Mound HRA Minutes. Sevtember 26, 2000 The Mound Visions Coordinator stated that he has invited the property owner next door to join in the study because he also wants to sell his property. The property owner would be paying his own costs for this. 1.6 REQUEST AUTHORIZATION TO PREPARE PLANS AND SPECIFICATIONS FOR DEMOLITION OF OLD MOUND TRUE VALUE BUII.DING. The City Manager stated that if the Board was comfortable, they should go ahead with this issue without the City Engineer, as timing was an issue. HRA Board Member Hanus asked what the proposed cost was. The City Manager stated that she did not know the cost, but that it would be the City's responsibility. The City Attorney stated that a bidding process would determine the cost. Motion, by Ahrens, seconded by Hanus, to recommend Staff proceed with the plans and specifications for this project. The vote was unanimously in favor. Motion carried. 5-0. ADJOURNMENT• MOTION by Ahrens, seconded by Hanus to adjourn the meeting at 7:20 p.m. The vote was unanimously in favor. Motion carried. 5-0. Chairperson Meisel reopened the meeting at 7:21. Ken Custer addressed the Board and stated that Dave Willette did not attend tonight's meeting, but that even though he agreed to the price for his property, he was not happy with it. MOTION by Brown, seconded by Weycker to adjourn the meeting at 7:22 p.m. The vote was unanimously in favor. Motion carried. 5-0. Kandis Hanson, City Manager Attest: Chaim rson 'sel L~~ 5 i ~~ ~.. ... TOWN CENTER MARKET PRESENTATION 1) Introduction Maxfield Research Inc. 2) Discussion of Town Center Concept a. Historical Context b. Community Identity c. Community Center/Gathering Place d. Who does it serve and why? 3) Town Center Components a. Housing --Life Cycle Housing --Housing Products/Styles --Density --Form of Ownership b. Commercial Space --Retail Trade Areas --Types of Retail/Goods and Services --Office/Retail --Space Design --Local/Regional Businesses c. Amenities --Open Space --Pedestrian Connections/Linkages --Use of Existing Physical Amenities 4) Mixed-Use Development a. Synergy with various components b. Momentum ~. ,. ... l1 September 21, 2000 CITY O F MOUND 5341 MAYWOOD ROAD MOUND, MINNESOTA 55364-1687 (612) 472-0600 FAX (612) 472-0620 Ms. Joanne Barron Metropolitan Council Mears Park Centre 230 East 5`~ Street St. Paul, MN 55101-1634 Dear Ms. Barron: The City of Mound is pleased to submit this Phase 2 LCDA application for the Mound Visions project. Downtown Mound is faced with some interesting challenges and some tremendous opportunities. City officials and the community at-large believe in downtown's future and the vision that has been expressed for its redevelopment. Much has been done already to set the stage for redevelopment but the myriad of issues needing to be addressed can be daunting. Despite the challenges, the City is committed to seeing the project through and more importantly seeing that it is carried out the "right way" with sensitivity to the environment and culture. We believe the Mound Visions project demonstrates the exact values espoused by the Livable Communities program. We hope our application communicates that belief. I look forward to presenting the project at an upcoming interview. If you have any questions, please do not hesitate to contact me. Sincerely, Kandis Hanson City Manager Enc. p~nfM on iecycl~d papa. ~. , 4.a. Funding Requested: $900, 000 4.b. Project Components: a. Creation of on-street parking bays and crosswalk treatment on County Road 110 between Auditors Road and the new Countv Road 15. $200,000 Two county roads cut through the heart of downtown Mound. Because of traffic volumes, Hennepin County forced the removal of parking from the county roads over 25 years ago. With the Mound Visions plan, County Road 110 will remain an important downtown retail street. Since on-street parking is critical in street-front retail success, the City has proposed and the County accepted that parking be re- introduced to County Road 110 in the form of inset parking bays beyond the current curb line. The City would also like to incorporate special paving treatment in the crosswalks and parking bays in order to enhance the pedestrian and aesthetic qualities of the streetscape. b. Underground parking for rental housing in the Auditors Road District. $400,000 In this district, rental housing is planned on upper stories above retail. In order to accomplish the proposed mix of uses and intensity of development, underground parking for the residential units will be essential. LCDA funds will help buffer higher than average construction costs, keeping rental rates within the market range. Beard Group indicated that construction costs increase by $10,000 per rental unit due to additional code compliance for residential above retail and underground parking adds an additional $8-12,000 per unit. c. Equity buy-down program for townhomes in the Haddon` District. $175,000 The City will work with MetroPlains Development to establish an equity buy-down program for several units in the district to make them affordable at 80% median income. d. Facade enhancements to planned grocery store in the Haddorf District. $100,000 The City is working with MetroPlains Development to construct a proposed grocery store up to the street rather than setting it back on the site, behind a parking lot. Since convenience is primary in grocery store success, this scenario suggests that the primary building entry would be on the parking lot side, away from the street. In order for this scenario to work, significant aesthetic facade enhancements that are well beyond typical development costs will be necessary on the street-side. e. Transit building. $25,000 The City and Metro Transit are working cooperatively to construct a new park 8~ ride facility in the True Value District. The building is proposed to be a ~~ rehabilitation of a unique downtown well house with the addition of a custom transit shelter. Mound Visions Pg. 2 ~ .,, . Transportation: Metro Transit provides the City with regular bus service from downtown Mound to Ridgedale and downtown Minneapolis via routes 51 and 75. Policy "Provide convenient access to the downtown area including transit facilities and emphasize pedestrian movement in and around the central business district." "Promote increased development of bikeways and trail facilities to accommodate non-motorized forms of transportation which conserve energy and reduce vehicular congestion." 6.a. Housing Densities Net units per acre: 15 (includes proposed housing by MetroPlains Development in the Haddorf District of downtown and the assumption of housing in the Langdon and Auditors Districts of downtown) 6.b. Mix of Uses x residential x government/civic x office arts/culture x retail multipurpose/conference center ', x restaurant x open space x entertainment x public space 6.c. Housing Mix and Integration Proposed Housing Types: Townhomes -attached, owner occupied Condominiums -stacked, owner occupied Apartments -rental (above retail) Number of rental housing units affordable: 12 units through tax credits Number of ownership units affordable: 5 units through equity buy-down program 6.d. Employment Proximity 2,400 jobs within one mile (includes 2,250 existing & 150 as part of project) Data Source: Metropolitan Council 6.e. Transit Improvements existing transit hub or station x proposed transit hub or station x existing park 8~ ride facility x proposed park 8 ride facility x proposed improvements to transit passenger facilities Mound Visions Pg. 4 • pedestrian-oriented streetscapes with connected retail storefronts ~~'' • continuous pedestrian loop along retail storefronts '~-~~ • building facades on the street, not set back • multi-level buildings • re-introduction of on-street parking • all off-street parking is under or to the rear of buildings 2. Concentrated Development: Downtown Mound is nestled between several lakes and was originally developed in the traditional small town pattern. As a result, Mound has historically had a fairly concentrated downtown district. Mound Visions proposes higher intensity redevelopment than currently exists within the bounds of the existing downtown in the following ways: • multi-level buildings • structured parking • shared parking • efficient use of space (eliminate development gaps) 3. Multi-use: It is well understood that a compatible diversity of uses result in a rich and exciting place. Mound is striving to create this mix by taking several steps in its downtown: • integrate recreation with the downtown and out to the greater community; all leading to a central green at Lost Lake • insist on continuous ground-level retail in its downtown core • encourage upper story office use • encourage higher density upper story and separate structure housing in the downtown core • better integrate the existing industrial district at the fringe of downtown • pursue a permanent farmers market facility • pursue development of a small hotel 4. Linkages: Linkages have been viewed as the essential first step in preparing for successful downtown redevelopment. Creating linkages has been the focus of two successful ISTEA funding applications and will continue to be the focus of significant local investment. Construction of some major linkages is underway and will be completed over the next two years. These and other important linkages include the following: • reestablish a boating connection between downtown and Lake Minnetonka via the Lost Lake canal (ISTEA, completed `99) • public boat docking facilities in downtown (ISTEA, construction '01) • Lost Lake greenway in downtown that will include amulti-use trail and pedestrian amenities (ISTEA, construction `01) • transit park & ride facility (ISTEA, construction `02) • pedestrian-oriented "main street" with on-street diagonal parking (completed '99) • relocate CSAH 15 to put heavier and higher speed traffic where it can be best accommodated as well as allow for the creation of the Auditors Road District as ahigh-amenity pedestrian district (Hennepin County CIP - `02) • establish pedestrian ways through downtown and out to the greater community • create better pedestrian and bike links between existing low and moderate income housing and jobs, shopping, recreation and transit Mound Visions Pg. 6 ,....~ , . Auditors Road Redevelopment District: This district will become the heart of downtown redevelopment. It is approximately 6 acres in size and is envisioned to include multi-use and multi- story buildings with approximately 48,000 SF of ground level retail and over 80 rental apartment units above retail. Buildings will be built at the street with the majority of parking under and behind buildings. Construction 2001. Langdon Redevelopment District: The Langdon District will reestablish the retail presence on County Road 110 in downtown as well as have a strong orientation to the quiet Lake Langdon. It is approximately 5 acres in size and is envisioned to include approximately 22,000 SF of ground level, street-front retail, over 30 rental apartments above retail and over 30 townhomes. Retail parking will be at ground level to the rear of buildings and apartment parking is intended to be below grade. Construction 2001. Coast To Coast Redevelopment District: This district is currently under construction and is transforming an auto-oriented strip center to a downtown, pedestrian-oriented retail district. It is approximately 2.5 acres in size and will include 22,000 SF of ground level retail and 8,000 SF of second story office. The district will also include municipal parking for retail and the transit facility. Haddorf District: This redevelopment district is the former high school site. It will contain approximately 60,000 square feet of retail including a new downtown grocery store, approximately 90 units of for-sale townhomes and condominiums and a small central park. Construction 2001. Lost Lake District: This district will include a small hotel/restaurant replicating historic resort hotels and a farmers market. The district will be integrally connected to the core of downtown via the greenway. Construction 2002. 9. How is the Project a Model There are numerous project elements that Mound believes can act as a model for other communities. The most significant may be the story of the revitalization effort itself. The Mound Visions project began more than 10 years ago with the notion that downtown was failing and something needed to be done. City leaders had the will to take action and invest in the planning process. The community responded with support and an incredible investment of personal time, effort and passion. The downtown vision that was established focussed on fundamental urban design principles that are often ignored in contemporary development. The fact that the Vision calls for tearing down most of the existing downtown, relocating businesses, building a new "main street" where one never before existed, relocating a county road, dredging a canal, creating green downtown corridors, and redeveloping in a "traditional downtown pattern" rather than suburban led many to believe that the task was insurmountable. But the work is getting done and getting done according to the Vision. Every small victory brings with it more supporters, investors, developers and businesses -believers interested in playing a part in the project. The specific project elements that can act as models are: open space as the framework for development: The vision suggests that open space corridors should be the tie that binds the downtown together. Those spaces have been identified as "off limits" to development and are being protected and enhanced as redevelopment occurs. Intensity of development: Mound is proposing an intense development pattern in its downtown district. In order to accomplish it, innovative solutions such as underground parking, shared parking, elimination of standard parking requirements, regional ponding and adistrict-wide approach to impervious surface requirements will be used. Mound Visions Pg. 8 ~,, some of those units affordable. The full range of new downtown housing will be seamlessly integrated among itself and with other uses downtown. Mound is regarded as an affordable place to live, which is due in part to historical platting of small lots. Hennepin County Assessed Value data shows that 1,787 homes or 54% of Homestead Properties were valued at $95,000 or less in 1996. Residential neighborhoods are located primarily north of and west of the downtown and provide a wide range of housing types. Hennepin County branch library, City Offices, and several schools are located on the fringes of downtown. Associated parks, playgrounds, and athletic fields compliment these public uses. The former Tonka Toys plant is home to a number of manufacturing and warehousing businesses that are replenishing the City's employment base. 12. Housing, Employment and Transportation Connections What the Mound Visions project does which is so unique in the Midwest is to completely weave an intermodal transportation system into an integrated, multi-use, urban fabric. There is an environment created around transportation facilities that make them pleasant, convenient and fun. This intermodal environment makes the act of getting around integral to all kinds of other community benefits. It subtly teaches people about the history of Mound and Lake Minnetonka. It makes it easy for people to shop on their way to and from work without their car. It reduces pollution by promoting the use of alternative transportation. It allows people to meet their neighbors. And, it creates a strong community focus. As the downtown system takes hold, it is anticipated to continue reaching outward to adjacent neighborhoods. The Metro Transit bus system links downtown Mound with major shopping and employment centers such as Ridgedale and downtown Minneapolis. Planning Process The planning activities that have occurred in preparation for redevelopment of downtown Mound are too numerous to list but here are some of the key components: • Formation of Economic Development Commission - 1989 • Formation of Mound Visions community volunteer groups - 1991 • Adoption of a Downtown Concept Plan and design guidelines - 1992 • Establishment of downtown TIF redevelopment district and budget - 1999 • Adoption of Comprehensive Plan supporting downtown redevelopment -2000 • Passage of revised zoning ordinance creating the "Pedestrian District" in the downtown core along with necessary requirements to support Mound Visions principles - 2000 • Adoption of downtown Stormwater Management Plan - 2000 • Determination of preliminary roadway alignment for future CSAH 15 - 2000 • ALTA survey, phase I environmental, title work, and appraisals of redevelopment districts - 2000 • Memorandum of Understanding between City and County for realignment of CSAH 15, reconstruction of CSAH 15/110 intersection and reintroduction of parking on CSAH 110 - 2000 • Coordination with Metropolitan Waste Control and NSP regarding utility relocation - 2000 Next Steps: • Developer selection for Auditors and Langdon Districts - 1/00 • Development agreements including TIF funding for Auditors, Langdon and Haddorf Districts - 1 /00 Mound Visions Pg. 10 ~..,, • Mound Family Hardware, Inc.: redevelopment agreement -Coast to Coast District 16. Financial Summaries Attached 17. Project Schedule Attached 18. Local Government Support Attached END OF PHASE 2 APPLICATION IISERVER1ActivelMOUNDILCDA991LC OOph2.doc Mound Visions Pg. 12 r Livable Communities Demonstration Account (LCDA) Application 1999 ATTACHMENT B SUMMARY FINANCIAL INFORMATION Public Private LCDA Amount Requested 1. Total Project Cost 7, 3 m 3 8 m Total Soft Cost 600 k 7 _ 5 m Total Hard Cost 6 .7 m 30 .5 m 900k * Includes only Auditors, Langdon & ~~addorf District redevelopments and direct inf~~a~tructure costs plus transit facility. 2. What funds are committed for this project? Local funds: 75k - transit faci 1 i ty Other Funds: 200k - transit facility 3. What funds are anticipated but not yet committed? 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