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HomeMy WebLinkAboutAgenda Packets - 2017/08/21 CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, August 21, 2017 6:00 p.m. ROLL CALL: Mueller, Gunn, Hull, Meehlhause, Bergeron PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. Agenda Items Discussed by Consensus 1. Presentation from Bridget Lundquist, Mounds View’s Elected Representative on the North Suburban Hospital District Board of Directors 2. Review Potential Infill Residential Development “Long Lake Woods” 3. National League of Cities Optional Line Insurance Coverage Presentation 4. Review Development Proposals for Crossroad Point Site 5. Review Emerald Ash Borer (EAB) Response Plan 6. Discuss Potential HR Specialist Position Next Work Session: TUESDAY, September 5, 2017, at 6 p.m. Next City Council Meeting: Monday, August 28, 2017, at 6 p.m. Item No: 2 Meeting Date: August 21, 2017 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Review Potential Infill Residential Development “Long Lake Woods” Introduction: Long Lake Woods is a potential infill residential development area bounded by Sherwood Road to the south, Ardan Avenue to the north, Long Lake Road to the east and Eastwood Road to the west. Altogether, including the existing homes in the area, the tract encompasses about 22 acres. The “developable” land area is closer to 7.35 acres, which would be further reduced by stormwater management and right of way. The graphic below represents the area in question. Ardan Avenue Sherwood Road Long Lake Road Eastwood Road Area to be developed Long Lake Woods Discussion August 21, 2017 Page 2 Discussion: The residents owning property within and surrounding the Long Lake Woods redevelopment area would like to proceed with the work necessary to survey and design a plat for the creation of single family homes. As many as 14 new lots could be created depending upon how the plat is laid out. Access into the site can be platted from either Sherwood Road on the south side or Ardan Avenue on the north side. It is conceivable that access into the interior area could occur midblock on Eastwood, but a house would have to be sacrificed for this to occur. There are right of way easements granted through the site where Greenwood Drive could be extended, however there is incomplete access on the south and only partial access from the north. The property owner on the south side has expressed opposition to the development and will not grant access; I’m not sure whether the owner on the north side has been approached. The participating property owners would have to bear the substantial up-front costs associated with platting and engineering of the site, plus legal fees, grading, drainage, installation of the underground utilities and construction of the road. Recommendation: Review the information and consider the presentation from the property owners. Staff has long supported the development of this area however our message to the residents has always been that the City would want all of the property owners to be on board. The residents may ask if the Council would consider using eminent domain to secure the requisite right of way if one property owner holds out, blocking access to the site. The residents may also ask if the Council would be amenable to having the City up-front some of the development costs to be repaid with assessments certified against the newly created lots. Respectfully submitted, ________________________ James Ericson City Administrator Item No: 3 Meeting Date: August 21, 2017 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: National League of Cities Optional Service Line Warranty Program Introduction: Mounds View has been approached by representatives from Utility Service Partners, Inc. (USP), offering to make a presentation to the City Council regarding their “Service Line Warranty Program”. This optional service to our residents would cover sanitary service lines from the home to the main and/or all indoor plumbing. The services are voluntary and no participation from the City is required aside from permission to offer such services to the community. Discussion: According to the supplied literature from USP, “Many homeowners are unaware of their responsibility for their service lines until they have a repair emergency. When they call the City, they often find that they are faced with a costly repair and that the City can’t help them.” Staff is aware of a few recent incidents where residents’ sewer lines collapsed requiring very expensive repairs. Perhaps residents would desire an insurance product that would provide some coverage in such events. Necessary repairs are conducted by local, licensed and insured contractors. Recommendation: Review the provided information and consider the presentation from USP representatives. The City would not be involved in the administration of the program or collection of premiums. The only potential action to be taken by the City would be to provide notice to residents of the availability of the voluntary program. Respectfully submitted, ________________________ James Ericson City Administrator Example Concept Picture of Proposed Crossroad Pointe Development Picture of Development; Please provide us one picture of a building that you have developed that would be the closest to size, look, design, # of units, etc. to the one you propose to build at Crossroad Pointe. Name of Developer Dominium Global Real Estate Management INH History Founded in 1972 and second largest affordable apartment owner/manager in the country Location of Headquarters Minneapolis Waite Park Type of Development 100% Affordable Independent Senior Housing, 100% Section 42 80% Market Rate 20% Affordable Mixed-Use/Mixed- Income, development could include a gun club as a tenanat if requested by Council. Developer also looking at possibility of aquiring existing apartments adjacent to Crossroad Pointe Heartland Gun Club & Range and/or Apartments Exterior Characteristics 4 Stories with underground parking, Build with high quality materials, Pitched Roof, Exterior to be a mixture of Hardie Board & Brick and/or Stone, Well landscaped, Well lit 3 Stories, but will to to 4 if Council allows it with underground parking. 3 Stories Number of Units Proposed 160-216 216-266 150 Approximate Unit Mix 45% one-bed/one bath at 800 sq.ft, 35% two-bed/two bath at 1100 sq.ft, 20% three-bed/two bath at 1300 sq.ft Expected Rents One-bed $930, Two-bed $1115, Three-bed $1284 Without TIF: 100% Market Rate, With TIF: 80% Market Rate & 20% Affordable Without TIF: 100% Market Rate, With TIF: 80% Market Rate & 20% Affordable Income Threashold All units will fall under the 60% Area Median Income threshold If getting TIF, 20% of units fall under the % Median Income threshold If getting TIF, 20% of units fall under the % Median Income threashold Income Threashold 1 person income limit: $36,060, 2 person income limit: $41,220, 3 person income limit: $46,380, 4 person income limit: $51,480 Site Amenities Community kitchen & clubroom, Exercise room, Grilling area, Salon, Library, Storage lockers, Card Room, Theater Room, Mail Kiosk, Package Room, Covered Parking - garages Proposed Common Area Amenities Party room, Demonstration kitchen, Private Dining Room, Card room, Salon/barber shop, Fitness center, Craft room, Vending area, Underground parking, Secured entrances, Beautiful landscaping, Picknic area with grills, Gazebos, Theater/media room Proposed Unit Amenities Open Floor plans, 9' ceilings, Balconies/Patios, Large Windows, Upgraded cabinets, Washer and dryer in unit, Dishwashers, Pantries, Kitchen islands, Walk-in closets, Shower doors, Upgraded light fixtures, Decorative accents, Cable access, Internet access Type of Financing Requested Housing TIF, Land Write Down, Waive Dedication Fees, Tax Credit Project, Issuance of Conduit Issue Revenue Bonds Requesting Housing TIF & land to be negotiated Requesting Housing TIF if qualify Land Use Site-Approval, Density: 50 to 60 units/acre, Conditional Use Permit, Rezoning - PUD, if required, Vacating the right-of- way at Greenfield Ave Anticipated Amound of Subdity Requested Developing Entire Site?Yes, would take all 4.25 acres Yes, all 4.25 acres plus looking at acquiriing adjacent properties for larger development, but would entertain Heartland Gun Club if that is the Council's desire Would purchase either the 1.28 acres site for Gun club only to be owned separate from any other development or purchase entire 4.25 acre site and the 2.08 acre parcel would be apartments in second phase. Would there be a mixed use retail component? No Yes, apartments plus retail specialtiy component. Looking at restaurants as potential tennants Yes, however, Gun Club would be the only retail component Does this development fit the Comp Plan? Yes Yes Yes Does this development fit the the Council's and the Stantec Report Vision? Potentially, Council is open to a Senior Housing Yes, Council has maintained that they would like a Mixed-Use destination concept at this location Yes, Council has mentioned they would like a market rate or no more than 20% affordable with mixed-use at this location Where does the developer have other products? Multiple States Mainly Twin Cities area Mainly Waite Park area with a few in Twin Cities suburbs What roles would the developer have in the project? They would serve as the developer, builder, and manager of the units Global Real Estate Management is the investor along with USFAAF, Jim O'Neil is the Financing/Accountant, Urban Works is the Architect, Krause Anderson is the builder INH is the developer and would need to find a builder How many units does the company current manage? 25,000 units in 23 states How long does the company plan to keep the building(s)? Long-term ownership and manager Long-term 5-10 years Long-term Number of New Jobs Created Equivalent 5 full-time permanent on-site employees Ancitipated Total Sq.ft Estimated Assessed Tax Value Market Studies Completed and Provided? Yes Preliminary market study provided, full market study still needs to be completed Preliminary market study provided, full market study still needs to be completed Crossroad Pointe Developer Comparison Chart # of units managed in US # of units managed in MN Market study completed? # Units Size Rent # Units Size Rent # Units Size Rent # Units Size Rent # Units Size Rent Studio 0 - - 47 459 - 502 $918 - $1,004 31 459 - 502 $918 - $1,004 45 459 - 502 $918 - $1,004 32 750 - 779 $ 1,000 Alcove 0 - - 37 572 - 698 $990 - $1,208 16 572 - 698 $990 - $1,208 0 572 - 698 $990 - $1,208 0 - $ - 1 Bedroom 93 750 $ 930 62 590 - 884 $1,056 - $1,582 87 590 - 884 $1,056 - $1,582 111 590 - 884 $1,056 - $1,582 52 800 - 825 $ 1,250 2 Bedroom 86 1050 $ 1,115 70 928 - 1,082 $1,633 - $1,904 31 928 - 1,082 $1,633 - $1,904 67 928 - 1,082 $1,633 - $1,904 46 980 - 1067 $ 1,500 3 Bedroom 37 1250 $ 1,284 0 0 -$ 0 0 -$ 0 - $ - 6 1300 $ 1,750 Designated pet area Common Laundry Individual Storage Units Open Lounge Private Party Room Fitness studio Bike Storage Electric car charging station Car wash Outdoor Seating Outdoor swimming pool Other Other Other Other Other Other On-site Management Internet Cable Washer/dryer in unit Solid or veneer cabinents Solid or veneer coutners Tile or linoleum/vinyl kitchen floor Walk-in closets or stroage Balconies Other Other Indoor Outdoor # stalls p/unit Outdoor Notes Long term 5 - 6 residential (comercial TBD) No Yes 1.17 No Yes Parking (Commercial) Exterior Finish Material (yes/no) 1.00 3 Yes No No No $ 38,000,000 216 5 - 6 residential (comercial TBD) Developer (est yr) Preliminary Study TBD Yes No Architect Builder Residential Manager Yes No No TBD 27,000 Market Rate % Tenant Restrictions Complete Study 236,752 TBD TBD Dominium Mangagement Services Urban Works Affordable % Retail sq ft Example project TBD 0% (optional)20%20% No No Yes Yes Yes Yes 5500 Option 3 N/A 80% 20% 223 2700 University Ave, Minneapolis Kraus-Anderson - 12555 Pennock Ave, Apple Valley INH Properties (est 1982) RHA Weis Builders INH Properties Residential N/A 100% N/A N/A 80%80% 10940 Vtookrf Lake Blvd NW, Option 1 6,880 5200 Complete Study Global Real Estate (est 2017) / Kraus-Anderson (est 1897) - No Yes Yes Yes Yes 201,222 7,629 1.50 1.53 7,629 - 172 Included Parking (Residential) Parking - 52 Dominium (est 1972) Total Residential Units 55+ 0% 100% @ 60% AMI Yes Yes Yes Total Residential Sq ft 206,300 201,558 Yes Yes Yes Yes Yes No Yes Solid 58 99 160 102 - 6,118 15,432 6,118 29,403 194 154 Included Included Included IncludedSolid Yes Commercial Solid Solid Solid Optional Included Vinyl Tile or wood - TBD Tile or wood - TBD Tile Included Optional Included Included Solid & veneer Brick/Stone Included Yes Included Included Included Yes Yes 5000 - 7500 20,000 116 88 Yes Retail (speciality) sq ft - 45 13,971 - - 1.21 20,000 Total Retail Yes No Yes (shared with outdoor residential) 36 Yes (or rebate for fees incured) Will let City be conduit issuer with No No Yes Yes NoDepends on availabile TIF No No Yes 28 No No Yes No Min # of years Developer will own Long-term Long term Est Total Project Cost $ 49,000,000 $ 40,000,000 $ 35,000,000 $ 25,000,000 Phase 1 Construction Start/End Phase 2 Construction Start/End 4 (residential) 15 (commercial) 2018/2019 (residenital 4 - 5 residential (comercial TBD) Long term Long term 2018/2019 9residential) TBD (commercial) Est Construction Completion 2018/2019 (residential) N/A 2018/2018 (retail) 3 # of jobs on-site FTE 5 residential Other Other Financing 4 2018/2019 (residential) No Yes TBD (commecial) 2018/2019 (residential) TBD (comercial) Other Stucco/EFIS Hardieboard/similar siding No No No Vinyl siding Other Other Housing TIF Land Discount Waive Fees Conduit City Revenue Bonds # of Stories above parking garage No Yes Included Yes Amenities within Units (Included in rent vs. optional?) Commercial Kitchen Salon Grilling Stations Theater Room Library / Business Center 3 3 No Yes No Yes No Crossroad Point Comparison of Development Proposals Amenities in Common Areas (yes/no) 136216165 Yes Yes Yes Option 1 Option 1 Option 2 Yes Yes Yes Yes Yes Yes Included Included 123,056 Yes No Yes Yes Included Yes Tile or wood - TBD Included Included Solid Included Included Solid Yes Included Soid Commercial Manager N/A Kraus-Anderson TBD Fire Pit Fire Pit Fire Pit Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes TBD Potential Development at Crossroad Pointe May 1st, 2017 Crossroad Pointe Development •Dominium Overview •Dominium and The City Of Mounds View •Proposed Development •Benefits to the Community •Requests of the city Dominium Overview •2nd largest owner/operator of affordable housing –Portfolio across 23 states and 25,000+ units •45 years of experience in affordable housing •Long Term Perspective –Creating value for your community •Driven by 4 core values –Creating Long Term Value –Integrity –Developing People –Growth Current Position Portfolio Properties Units # of Properties Owned for Owned 203 25,458 0-4 yrs: 5-9 yrs: 10-14 yrs: 15+ yrs Fee -Interim: 1 120 51 53 50 49 204 25,578 Employment Site:698 Corporate: Property Mgmt 58 Corporate Services 71 Development 43 Asset Mgmt 21 891 Dominium and The City Of Mounds View Why Mounds View? High Traffic Counts being on Corner of H2 and Mounds View Blvd. Provide a housing option not currently available Market rate quality, 100% of units at an affordable price Meets City priorities Demographics of Community 17,500 people age 55+ within a 3 mile radius of the property (approximately 30% of the population) High Traffic Counts Traffic Counts –exceed 20,000 cars per day traveling along Mounds View Boulevard Current Senior Housing Options •Bel Rae Senior Apartments (Market Rate) (2015) •Wildwood Manor (HUD Section 202) (1982) •Silver Lake Pointe Senior (mixed income) (1995) Conformity with City of Mounds View Policies 2016 Mounds View City Council Priorities Community Development o Encourage development and promote programs to improve neighborhoods o Develop the vision associated with Crossroad Pointe Public Works o Focus on aesthetics, landscaping and appearance. 2030 Comprehensive Plan Chapter 4: Housing “Goal 1 –Promote a broad and full choice of housing opportunities that provides life-cycle and affordable housing with a mix of housing types and values” •Applicable Policies: d, g, j and k. The city wants to: d.) promote the development of move up and affordable housing opportunities and more housing options for senior citizens, g.) ensure that priority be given to Mounds View residents when providing low income housing, j.) explore seeking financial assistance from public agencies for development projects that provide affordable housing, and k.) participate in state and federal housing programs as a source for affordable housing. •The proposed development will increase the senior affordable housing stock for the residents of Mounds View. •The Cities participation in this development will provide the assistance necessary to receive public funding from MHFA in the source of federal Low Income Housing Tax Credits. 2030 Comprehensive Plan Chapter 4: Housing “Goal 3 –Administer housing programs in an efficient and cost effective manor” •Applicable Policy: c. “Continue partnerships with government agencies such as Metropolitan Council and Ramsey County that administer affordable housing programs” •The Cities participation in the proposed development will enable a successful application for an issuance of conduit bonds , which will be required to make this affordable housing development a reality 2030 Comprehensive Plan Chapter 4: Housing “Goal 4 –Encourage residential infill and redevelopment that supports the City’s housing goals and maintains residential character” •Applicable Policy: d. “The city should encourage a mix of densities and housing types in the County Highway 10 corridor to help accommodate additional housing” •Currently, there are no senior developments that are 100% affordable under the section 42 Low Income Housing Tax Credit program. 2030 Comprehensive Plan “The Metropolitan Council expects the city to plan for additional affordable housing” “There is a need for additional affordable housing units by the year 2020” •In the comprehensive plan the City of Mounds View directly calls out the need for additional affordable housing, and states that it will be a challenge to the city due to it being nearly completely developed. This project will address the City’s need for affordable housing through 2020 and into the future. Chapter 4: Housing “Life Cycle Housing and Affordable Housing” Demographics of Community Estimated 4.7% population growth within 3 mile radius through 2020 25% of Mounds View citizens are 55+ Low vacancies ~(2%) Low crime rates (~35% lower than US Average) What We Do Hits Home Similar Dominium Developments - Exteriors Stone Creek Apartments-Plymouth, MN The Landings at Silver Lake-St. Anthony, MN Legends of Cavanagh-Crystal, MN River North Apartments -Coon Rapids, MN Legends Cavanagh -Crystal, MN Legends At Silver Lake Village –St. Anthony, MN Exterior Amenities similar to proposed The Legends at Silver Lake Village-St. Anthony, MN Legends of Cavanagh-Crystal, MN Cambric Apartments-St. Paul, MN Common areas at similar projects Legends at Silver Lake Village -St. Anthony, MN The Cambric -St. Paul, MN River North –Coon Rapids, MN River North-Coon Rapids, MN Similar Amenities to Proposed River North-Coon Rapids, MN The Cambric-St. Paul, MN The Legends at Silver Lake Village-St. Anthony, MN River North-Coon Rapids, MN The Cavanagh-Crystal, MN River North-Coon Rapids, MN Interiors –Similar Senior Projects The Grainwood –Prior Lake, MN Cambric-St. Paul, MN Bedroom Layout –The Legends Of Silver Lake Village, St. Anthony, MN Kitchen and Dining Room-The Grainwood, Prior Lake, MN Proposed Development -Crossroad Pointe Location Proposed Senior Development (concept) Current Proposal 216 Units 100% independent senior 100% Section 42 Units Rent and Income Restricted to 60% of the AMI o 1 Person 2017 Income Limit: $37,970 o 2 Person 2017 Income Limit: $43,400 o 3 person 2017 Income Limit: $48,840 Unit Mix: Unit Type # of Units Approx:Sq. Ft.Proposed Rents One Bedroom -One Bath (60% AMI)93 710 $930 Two Bedroom -Two Bath (60% AMI)86 1,040 1,115 Three Bedroom -Two Bath (60% AMI)37 1,250 1,284 TOTAL/AVERAGE 216 935 $1,064 Exterior Characteristics 4 Stories with underground parking Built with high quality materials Pitched Roof Exterior to be a mixture of Hardie Board Brick and/ or Stone Well landscaped Well lit Proposed Common Area Amenities Party room Demonstration Kitchen Private Dining Room Card room Salon/barber shop Fitness center Craft room Vending area Underground parking Secured entrances Beautiful landscaping Picnic area with grills Gazebos Theater/media room Proposed Unit Amenities Open Floor plans 9-foot ceilings Balconies/ Patios Large Windows Upgraded cabinets Washer and dryer in unit Dishwashers Pantries Kitchen islands Walk in closets Shower doors Upgraded light fixtures Decorative accents Cable Access Internet Access Sample One-Bedroom Unit Approximately (721 sq ft) Sample Two-Bedroom Unit (Approximately 1031 sq ft) Sample Three- Bedroom Unit (Approximately 1250 sq ft) Benefits to the City of Mounds View •Addresses the need for additional affordable housing beyond 2020, as recommended by the Met Council •Increased population creates increased spending at local businesses •Increased interest in surrounding area for commercial developers •Increase tax base •Creates full time jobs •Initiates additional local consumption of everyday goods and services •Increases adjacent property values Adds 216 Units –Addressing City Needs 167 units of Dominium senior new construction in Coon Rapids, MN Increased Population = More Local Spending •The addition 216 units of senior housing including 1, 2 and 3 bedrooms will increase consumer population in immediate area by approximately 400. This means increased consumption at local business. Increased Interest of Potential Commercial Developers •Capital investment in community creates new jobs and attracts new businesses •Increasing attraction of surrounding area to retail developers New Jobs Created: •Approximately 450+ construction related jobs created from $48 million investment in proposed development o Approximately 300+ on-site construction jobs o 150+ indirect jobs from supplying construction materials and services •Equivalent of 5 full time permanent on-site employees Development Requests •Site-Plan Approval –Density of 50-60 units/acre •Vacating the right away at Greenfield Ave •Tax Increment Financing •Waiver of City fees •Sale of property •Support with applications to MHFA •Issuance Of Conduit Issue Revenue Bonds Conclusion In return for the city’s participation,the City of Mounds View will benefit in the following ways: •A revitalization of the area,which serves as a focal pointe of Mounds View •A high quality affordable housing option for Mounds View seniors that is needed and currently not available •Creation of jobs related to the construction,management and maintenance of the property •Increased tax revenues through increase in property values and increased spending and consumption. •The city will meet its affordable housing needs through 2020 and well into the future as outlined in the Comprehensive plan Conclusion CREATING AFFORDABLE SENIOR HOUSING AND INVESTING IN COMMUNITY It takes government, industry, and the private sector working together to advance affordable housing solutions to make projects happen in the right manner across the country. When we partner together with families, corporations, contractors, cities, and counties we are able to improve communities. This development can become an excellent example of a partnership that is necessary to create affordable housing options into the future, while at the same time adding vitality through job creation and economic stimulus. Dominium Providing Quality Affordable Housing Since 1972 DEVELOPMENT TEAM Global Real Estate Management and Kraus-Anderson Development Company of Minneapolis is excited to bring a new and progressive mixed use development to Mounds View. By combining Global Real Estate Management’s knowledge of the local market with Kraus-Anderson’s years of experience in apartment development, we know we can deliver a project that Mounds View will be proud of. 1MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments SITE 1” = 60’-0” 2MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments SITE AERIAL OPTION 1 1” = 60’-0” 3MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments SUBLEVEL 1 1 OPTION 1 1” = 60’-0” 4MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments LEVEL 1 1 OPTION 1 1” = 60’-0” 5MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments LEVEL 2 - 4 1 Development Summary KA : Mounds View Apartments - Opt. 3 Updated 07.06.17 Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSF Efficiency NLSF Structured Parking Surface Parking Res. Units -1 Sublevel Parking 67,146 67,146 - - - 194 58 - 1 Apartments / Amenity / Retail 61,126 - 6,118 55,008 7,774 37,192 61% - 51 2 Apartments 61,126 - 61,126 - 50,297 82%69 3 Apartments 61,126 - 61,126 - 50,297 82%69 4 Apartments 24,298 - 24,298 - 19,906 82%27 Total 274,822 67,146 6,118 201,558 7,774 157,692 78% 194 58 216 Unit Mix Mix # of Units # of Beds Units SF NLSF Micro 0.0%- - 400 Studio 22.1%48 48 499 23,962 110 Alcove 17.1%37 37 590 21,843 101 1 BR 28.6%62 62 663 41,136 190 2 BR 32.3%70 140 1,011 70,749 326 Total 100%217 287 727 157,690 727 Metrics Total Dwelling Units 216 Total Stalls (Enclosed + Surface)252 Total Stalls / Dwelling Unit 1.17 36 Average Unit Size 727 Above Grade SF / Unit 963 Site SF 184,336 Site Acreage 4.23 Dwelling Unit / Acre 50.96 FAR 1.13 OPTION 1 - HOUSING 6MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments DEVELOPMENT SUMMARY 1” = 60’-0” OPTION 2 7MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail SUBLEVEL 1 - PARKINGRamp to Level 12 1” = 60’-0” OPTION 2 8MOUNDS VIEW, MN / 07.17.2017 / 17-0017 LEVEL 1Ramp to Sublevel 1Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail 2 1” = 60’-0” OPTION 2 9MOUNDS VIEW, MN / 07.17.2017 / 17-0017 LEVEL 2 - 3 Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail 2 Development Summary Mounds View Apartments - Opt. 5 Updated 07.11.17 Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSF Efficiency NLSF Structured Parking Surface Parking Res. Units -1 Sublevel Parking 55,330 55,330 - - - 154 - 1 Apartments / Amenity / Retail 70,762 - 30,582 40,180 7,058 24,012 34% - 99 35 2 Apartments 55,330 - 55,330 - 44,856 81%65 3 Apartments 55,330 - 55,330 - 44,856 81%65 Total 236,752 55,330 30,582 150,840 7,058 113,724 75% 154 99 165 Unit Mix Mix # of Units # of Beds Units SF NLSF Micro 0.0%- - 400 Studio 21.8%58 58 501 29,050 109 Alcove 12.0%32 32 596 19,070 72 1 BR 41.7%111 111 670 74,329 279 2 BR 24.4%65 130 995 64,659 243 Total 100%266 331 703 187,108 703 Metrics Total Dwelling Units 165 Total Stalls (Enclosed + Surface)253 Total Stalls / Dwelling Unit 1.53 88 Average Unit Size 703 Above Grade SF / Unit 1,100 Site SF 184,336 Site Acreage 4.23 Dwelling Unit / Acre 38.99 FAR 0.98 OPTION 2 - HOUSING & SPECIALTY RETAIL 10MOUNDS VIEW, MN / 07.17.2017 / 17-0017 DEVELOPMENT SUMMARY Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail Development Summary Mounds View - Building A Updated 07.11.17 Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSF Efficiency NLSF Parking Res. Units -1 Sublevel Parking 55,330 50,139 - 5,191 - 154 - 1 Apartments / Amenity 55,330 - 15,150 40,180 7,058 24,012 60%63 35 2 Apartments 55,330 - 55,330 - 44,856 81%65 3 Apartments 55,330 - 55,330 - 44,856 81%65 Total 221,320 50,139 15,150 156,031 7,058 113,724 73%217 165 Unit Mix Mix # of Units # of Beds Units SF NLSF Micro 0%- - 400 Studio 19%31 31 500 15,501 94 Alcove 10%16 16 605 9,676 59 1 BR 53%87 87 669 58,193 353 2 BR 19%31 62 979 30,354 184 Total 100%165 196 689 113,724 689 Metrics Total Dwelling Units 165 Total Stalls (Enclosed)217 Total Stalls / Dwelling Unit 1.32 Average Unit Size 689 Above Grade SF / Unit 1,006 Site SF 133,816 Site Acreage 3.07 Dwelling Unit / Acre 53.71 FAR 1.28 OPTION 2 - BUILDING A - HOUSING 11MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail DEVELOPMENT SUMMARY Development Summary Mounds View - Building B (Specialty Retail) Updated 07.11.17 Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSF Efficiency NLSF Parking Res. Units 1 Specialty Retail 15,432 - 15,432 - - - 0%36 - Total 15,432 - 15,432 - - - 0%36 - Metrics Total Dwelling Units - Total Stalls (Retail-Gun Club)36 Total Stalls / Dwelling Unit - Average Unit Size - Above Grade SF / Unit - Site SF 50,520 Site Acreage 1.16 Dwelling Unit / Acre - FAR 0.31 OPTION 2 - BUILDING B - SPECIALTY RETAIL 12MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments & Specialty Retail DEVELOPMENT SUMMARY OPTION 1 1” = 60’-0” MOUNDS VIEW, MN / 06.23.2017 / 17-0536 Global Real Estate - Mounds View Apartments 2 OPTION 1 SUBLEVEL 1 3 OPTION 1 1” = 60’-0” MOUNDS VIEW, MN / 06.23.2017 / 17-0536 Global Real Estate - Mounds View Apartments 3 OPTION 1 LEVEL 1 3 OPTION 1 1” = 60’-0” MOUNDS VIEW, MN / 06.23.2017 / 17-0536 Global Real Estate - Mounds View Apartments 4 OPTION1 LEVEL 2 - 4 3 Development SummaryKA : Mounds View Apartments - Option 1Updated 06.24.17Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSFEfficiency NLSFStructuredParkingSurface ParkingRes. Units-1 Sublevel Parking61,758 61,758 - - - 172 52 - 1 Apartments / Amenity / Retail60,405 - 7,629 52,776 8,057 34,750 58% - 46 2 Apartments61,758 - 61,758 - 49,778 81%73 3 Apartments61,758 - 61,758 - 49,778 81%73 4 Apartments24,930 - 24,930 - 19,387 78%31 Total270,609 61,758 7,629 201,222 8,057 153,693 76% 172 52 223 Unit MixMix # of Units # of Beds Units SFNLSFMicro0.0%- - 400 Studio20.0%45 45 500 22,263 100 Alcove0.0%- - 575 - - 1 BR50.0%111 111 680 75,695 340 2 BR 30.0%67 134 1,000 66,790 300 Total100%223 289 740 164,748 740 MetricsTotal Dwelling Units223 Total Stalls (Enclosed + Surface)224 Total Stalls / Dwelling Unit1.01 Average Unit Size740 Above Grade SF / Unit938 Site SF184,336 Site Acreage4.23 Dwelling Unit / Acre52.61 FAR1.13 3 Development SummaryMounds View - Building AUpdated 06.24.17Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSFEfficiency NLSF Parking Res. Units-1 Sublevel Parking36,828 36,828 - - - 107 - 1 Apartments / Amenity36,828 - - 36,828 7,054 23,524 64%- 31 2 Apartments36,828 - 36,828 - 30,391 83%42 3 Apartments36,828 - 36,828 - 30,391 83%42 Total147,312 36,828 - 110,484 7,054 84,306 76%107 115 Unit MixMix # of Units # of Beds Units SFNLSFMicro0%- - 400 Studio18%21 21 496 10,413 90 Alcove18%21 21 593 12,449 107 1 BR33%38 38 658 25,000 216 2 BR 31%36 72 1,012 36,444 314 Total100%116 152 727 84,306 727 MetricsTotal Dwelling Units115 Total Stalls (Enclosed)107 Total Stalls / Dwelling Unit0.93 Average Unit Size727 Above Grade SF / Unit964 Site SF89,100 Site Acreage2.05 Dwelling Unit / Acre56.04 FAR1.24 Development SummaryMounds View - Building BUpdated 06.24.17Description Gross SF Parking GSF Retail SF Residential GSF Res. Amenity Residential NLSFEfficiency NLSF Parking Res. Units-1 Sublevel Parking24,930 24,930 - - - 65 - 1 Apartments / Amenity23,577 - 7,629 15,948 1,003 11,226 48%- 15 2 Apartments24,930 - 24,930 - 19,387 78%31 3 Apartments24,930 - 24,930 - 19,387 78%31 4 Apartments24,930 - 24,930 - 19,387 78%31 Total123,297 24,930 7,629 90,738 1,003 69,387 76%65 108 Unit MixMix # of Units # of Beds Units SFNLSFMicro0.0%- - 400 Studio31%33 33 502 16,566 153 Alcove40%43 43 538 23,153 214 1 BR7%8 8 672 5,375 50 2 BR 22%24 48 1,014 24,333 225 Total100%108 132 643 69,427 643 MetricsTotal Dwelling Units108 Total Stalls (Enclosed)65 Total Stalls / Dwelling Unit0.60 Average Unit Size643 Above Grade SF / Unit911 Site SF79,703 Site Acreage1.83 Dwelling Unit / Acre59.03 FAR1.23 PRECEDENT IMAGES - HOUSING CORNERSTONE CREEK, MINNEAPOLIS MN CASCADE APARTMENTS, ROCHESTER MN FORT ROAD FLATS, ST. PAUL MN EAST WOOD RIDGE, ROCHESTER MN 13MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments REPRESENTATIVE URBANWORKS PROJECTS PRECEDENT IMAGES - SPECIALTY RETAIL 1 - HTTPS://WWW.WEAPONSANDGEARRANGE.COM/ 2 - HTTP://MAGMAARCHITECTURE.COM/ 3 - HTTP://ARTICLE2RANGE.COM/ 4 - HTTP://WWW.THERANGEAUSTIN.COM/ 5 - HTTP://WWW.COLONIALSHOOTING.COM/RVA/ 6 - HTTP://WWW.RWMURRAY.COM/PORTFOLIO/ELITE-SHOOTING-SPORTS 7 - HTTP://WWW.CENTENNIALGUNCLUB.COM/ 8 - HTTP://WWW.FISHERMT.COM/FEATURED/THREE-SIGHTS-INDOOR-SHOOTING-RANGE/ 9 - HTTP://WWW.CCSSEF.ORG/EDUCATION-MARKSMANSHIP-CENTER/ 3 - ARTICLE II RANGE, LOMBARD, IL 2 - TORONTO INTERNATIONAL TRAP & SKEET CLUB, ONTARIO, CANADA 1 - POWAY WEAPONS AND GEAR RANGE, POWAY, CA 4 - THE RANGE AT AUSTIN, AUSTIN, TX 7 - CENTENNIAL GUN CLUB, CENTENNIAL, CO 8 - THREE SIGHTS INDOOR SHOOTING RANGE, BILLINGS, MT 9 - CHESHIRE COUNTY SHOOTING SPORTS EDUCATION CENTER, KEENE, NH 5 - COLONIAL SHOOTING ACADEMY, RICHMOND, VA 6 - ELITE SHOOTING SPORTS, MANASSAS, VA 14MOUNDS VIEW, MN / 07.17.2017 / 17-0017 Global Real Estate Management LLC - Mounds View Apartments REPRESENTATIVE PROJECTS BY OTHERS Introducing Crossroad Pointe Redevelopment A mixed use development that will enhance the Mounds View community Development Team INH Properties from St. Cloud, MN will be the project developer on the Crossroad Pointe project. INH brings to the project many years of experience in apartment development in many different communities. Community Number of Units Year Opened Chanhassen, MN 183 (3 phases)2001 to 2004 Fergus Falls, MN 59 (2 phases)2001 to 2002 St. Michael, MN 48 2002 Shakopee, MN 237 (3 phases)2002 to 2004 Alexandria, MN 80 (2 phases)2003 to 2004 Mankato, MN 122 (3 phases)2005 to 2006 Aitkin, MN 24 2005 LeSeuer, MN 48 (2 phases)2006 Baxter, MN 58 (2 phases)2006 to 2007 Hastings, MN 66 2008 Alexandria, MN 115 (2 phases)2009 to 2010 Watford City, ND 164 2013 to 2014 Rochester, MN 39 2014 Cambridge, MN 103 (2 phases)2014 to 2015 INH sample projects from various communities INH Development Project –Powers Ridge Apartments –Chanhassen Crossroad Pointe Redevelopment Highlights •4.25 acre site •Mixed use development with retail, specialty retail and market rate apartments •Retail component will offer potential tenants flexible space with the ability to offer outdoor dining etc. •Specialty retail will provide ancillary benefits to the community and to local law enforcement •Market rate apartments will attract a both a younger demographic with disposable income to spend in the community and provide current residents a “senior friendly” place to live without having to leave their community. •All components of the development will support each other’s use and provide amenities currently not offered in the community. Crossroad Pointe Apartments •Approximately 136 market rate apartments •Unit mix between studios, one, two and three bedroom units •Amenities will include covered parking, swimming pool and community room with a kitchen and meeting space, fitness center and management offices. •INH Properties will lease and manage the property after completion. INH manages approximately 6,000 apartment units in Minnesota and North Dakota. See: www.inhproperties.com •CoStar Market Study shows very few vacancies in the area for market rate apartments. Crossroad Pointe Apartments Sample Floor Plans Studio/Efficiency One Bedroom Two Bedroom Crossroad Pointe Redevelopment Site Plan 136 Apartment units with approximately 20,000 feet of retail and specialty retail. N Play Area Pickle Ball Courts Crossroad Pointe Redevelopment Floorplans N N Crossroad Pointe Apartments: Amenities Playground Pickleball Courts Pool Crossroad Pointe: Retail Component •Approximately 20,000 sq. ft. of retail near the corner of Mounds View Boulevard and H2. Interested in bringing in at least two restaurant concepts to be the anchor tenants in the building •A short building setback from the right of way will mean proximity to and great exposure to Mounds View Boulevard •We will focus on talking to family friendly restaurants with the potential to host small events and provide outdoor dining Crossroad Pointe: Specialty Retail Component •Heartland Gun Club and Range -approximately 15,000 sq. ft. Class A space with treed and landscaped grounds. •Specialty / Destination Retail will draw clients from the surrounding area •Committed to the Mounds View community and will partner with local and regional law enforcement to provide training to their officers •Provide training to our clients that emphasizes safety training, classroom training along with practice and proficiency on the range all of this is done in a welcoming environment for all shooting sports enthusiasts. •Sound from our facility will be less than the ambient roadside sounds. We will be a good neighbor and give back to the community. Heartland Rendering Heartland Gun Club and Range Site & Floorplan Sample Site Plan Sample Floor Plan Thank you! •We are excited about the opportunity to bring a dynamic development to Mounds View. Our mix of retail, specialty retail and market rate apartments will bring many new members into the community to live, play, relax and enjoy the community and be an option for current residents to downsize but remain in Mounds View. •The development team is committed to building a first class development across the retail and apartment projects •The project is planned to be phased in with the retail area being developed first and apartments coming soon after •All components of the development will support each other’s use and provide a wide range of amenities currently not offered in the community PID Parcel Address Size in Acres Square Feet Building SF County Price per/SF County Price per/SF Amount City Paid for land and demo County Land Value County Builindg Value Total County Valuation for Tax Year 2018 Difference of City's investment v. County EDA's Break Even Amount Notes 83023310005 Old Roberts Site 2400 County Rd H2 2.05 89298 N/A $6.00 NA $835,495.06 535,800.00$ -$ 535,800.00$ (299,695.06)$ 835,495.06$ 83023310071 Former Taiko Site 2394 Mounds View Blvd 0.48 20908.8 N/A $7.14 NA 298,022.81$ 149,300.00$ -$ 149,300.00$ (148,722.81)$ 298,022.81$ 83023310072 Premium Stop Gas Station 2390 Mounds View Blvd 1.28 55,756.80 N/A $7.00 NA 669,001.35$ 390,300.00$ -$ 390,300.00$ (278,701.35)$ 669,001.35$ Total 3.81 165963.6 N/A $6.48 N/A $1,802,519.22 $1,075,400.00 N/A $1,075,400.00 (727,119.22)$ 1,802,519.22$ $10.86 Dollar Amount Per/SF Price Per/SF Difference Between Amount Per/SF and Break Even Price Bottom of Market Price $1 165,963.60$ (1,636,555.62)$ $2 331,927.20$ (1,470,592.02)$ $3 497,890.80$ (1,304,628.42)$ Median Price $4 663,854.40$ (1,138,664.82)$ $5 829,818.00$ (972,701.22)$ $6 995,781.60$ (806,737.62)$ Top of Market Price $7 1,161,745.20$ (640,774.02)$ Break Even Price $10.86 1,802,364.70$ (154.52)$ PID Parcel Address Size Square Feet Building SF County Price per/SF Land & Building County Price per/SF Building County Land Value County Builindg Value County Valuation for Tax Year 2018 Current Sale Price Asking Price per/sf Last Sale Price Notes 63023340089 Tires N More 2832 Mounds View Blvd 0.7 30,492 10,560 7.00$ 14.07$ 213,400.00$ 148,600.00$ 362,000.00$ $550,000 $12.14 $250.00 63023340086 Tires N More 0 Mounds View Blvd 0.34 14,810.40 No Building 3.00$ #VALUE!$44,400 -$ $44,400 N/A N/A $250,000 Total 1.04 45302.4 5.69$ 14.07$ 257,800.00$ 148,600.00$ 406,400.00$ #VALUE!#VALUE!250,250.00$ 63023310043 Pat's Muffler 2848 Mounds View Blvd 0.5 21,780 1,722 $7.00 $71.14 $122,500 $152,500 122,500.00$ $275,000 N/A $210,000 Open to selling 63023310173 Single-Family west of MWF 2925 Mounds View Blvd 1.42 61,855.20 1,546.00 $1.39 $59.64 $86,100 92,200.00$ $178,300 N/A N/A $400,000 63023310237 Single-Family west of MWF 2935 Mounds View Blvd 0.8 34848 3792 $2.58 $75.32 $90,000 285,600.00$ $375,600 N/A N/A N/A 63023310174 Single-Family west of MWF 2949 Mounds View Blvd 0.26 11,325.60 858.00 $3.61 $77.16 $40,900 66,200.00$ $107,100 N/A N/A $64,850 Total 2.48 108,028.80 6,196.00 $2.53 $71.66 $217,000 444,000.00$ $661,000 N/A N/A N/A 83023220039 Snyder's Building 2525 Mounds View Blvd 0.96 41,817.60 6,021.00 $6.97 $178.38 $291,500 1,074,000.00$ $1,365,500 $2.5 Mill 59.78$ $980,000 Open to selling for right price 83023310076 Rydell Auto 2375 Mounds View Blvd 3.26 142,005.60 22,842.00 $7.00 $50.51 $994,700 1,153,800.00$ $2,148,500 N/A N/A N/A Open to selling for right price 83023310075 5-Parcels, Next to Bel Rea 2310 Mounds View Blvd 2.98 129,808.80 No Building $0.92 N/A $119,500 -$ $119,500 N/A N/A $175,000 Owns two end lots 83023420013 5-Parcels, Next to Alliegence Fitness 0 Mounds View Blvd 0.85 37,026 No Building $2.05 N/A $75,900 -$ $75,900 N/A N/A No Data Available Owns two end lots 83023420003 5-Parcels, West Single-Family Home 2300 Mounds View Blvd 0.25 10,890 1,168 $4.80 $104.62 $52,300 122,200.00$ $174,500 N/A N/A $158,400 3.30.2015 83023420004 5-Parcels, Middle Single-Family Home 2288 Mounds View Blvd 0.57 24,829.20 1,228.00 $2.87 $64.01 $71,200 78,600.00$ $149,800 N/A N/A $145,000 11.17.2014 83023420005 5-Parcels, East Single-Family Home 2280 Mounds View Blvd 1.13 49,257.65 1,270.00 $1.99 $69.53 $98,200 88,300.00$ $186,500 N/A N/A No Data Available N/A Total 5.78 251,811.65 3,666.00 $1.66 $78.86 $417,100 289,100.00$ $706,200 N/A N/A N/A Properties West of MWF Development Snyder's Building Crossroad Pointe Pricing Scale Per Square Foot Owner would like $1 Mill or $22.07/SF Some onwers open to selling Rydell Auto 5 Single-Family Parcels East of Bel Rae City paid $10.86 P/SF for all three properties including demo Crossroad Pointe Tires N More Identified Properties for Redevelopment Pat's Muffler Item No: __3__ Meeting Date: August 21, 2017 Type of Business: Work Session Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Economic Development Coordinator Jon Sevald, Planner Item Title/Subject: Review Development Proposals for Crossroad Point Site Discussion: At the May 1st and July 17th City Council work sessions, the Council heard presentations for the development of Crossroad Pointe, located at the SW intersection of Mounds View Blvd and Co Rd H2. The three presentations were from: (1) Dominium, (2) Global Real Estate / Kraus-Anderson, and (3) INH Properties. The intent for this evening’s work session is to select a preferred developer, and to discuss a price for the 4.25 acres. Each of the proposals differ significantly from each other. With the assistance of the developers, Staff has assembled a chart comparing each proposal (attached). Developer Residential Commercial Dominium: 216 units, senior, 100% affordable N/A Global Real Estate/Kraus-Anderson: 165 – 223 units, 80% market rate 6,100 – 29,400 sq ft INH Properties: 136 units, 100% market rate 20,000 sq ft City Council members were invited to tour projects completed by each development team (or partners), that would be similar to what would be built at Crossroad Pointe. PROJECT HISTORY: 2006: City acquires Premium Stop gas station (2394 Mounds View Blvd) 2006: Premium Stop demolished 2006: DSU/Bonestroo completes market analysis and planning study 2013: City acquires Roberts (2400 Co Rd H2) and Taiko restaurants 2013: Roberts & Taiko demolished 2014: Neighborhood Open House. 2014: Stantec completes redevelopment study 2015: City Council and City commissioners tour three mixed-income apartment complexes in St Anthony (Dominium), St. Louis Park (Bader Development), and Osseo (The Beard Group) 2015: The Beard Group proposes Phase 1 to include approximately 2.5 acres of the 4.25 acre site, Phase 1 to include 119 units (market rate), consisting of studios, 1-bedroom, and 2-bedroom units. 2016: City enters into a preliminary development agreement with The Beard Group 2016: The Beard Group withdraws from the preliminary development agreement 2017: Three proposals from; (1) Dominium, (2) Global Real Estate / Kraus- Anderson, and (3) INH Properties. Item 03 August 21, 2017 Page 2 The 2006 DSU/Bonestroo study included concept plans (above) for redevelopment of the block, from Co Rd H2 (north) to Woodale Dr. (south). The concepts focus on mixed-uses, walkability, and two-story buildings intending to relate to the surrounding neighborhood. The 2014 Stantec study focuses on Crossroad Pointe, and includes two concept plans (above). Both concepts feature apartments above retail/office use. The study notes that due to competition with Northtown, Rosedale, and Rice Creek Commons (TCAAP), there is not a local market for retail that depends on an anchor tenant, such as a big box store. There may be a market for experimental retail, and for medical offices. The 2014 Stantec study includes results from a neighborhood open house and survey. About 15-20 people participated. The survey highlights a desire for mixed-use, providing goods and services which Mounds View residents would otherwise leave town to find, and for public amenities. Figure 1: DSU/Bonestroo Long-term Concept D1: 60 units Apartments/Condominiums 33 units Townhomes 10,000 sf Retail/Office Figure 2: DSU/Bonestroo Long-term Concept D2 60 units Apartments/Condominiums 20 units Townhomes 60,000 sf Office Figure 3: Stantec Mixed Use Concept 1: ? units Apartments/Condominiums 0 units Townhomes 36,000 sf Retail/Office Figure 4: Stantec Mixed Use Concept 2: ? units Apartments/Condominiums 0 units Townhomes 32,000 sf Retail/Office Item 03 August 21, 2017 Page 3 The survey additionally asked residents what they would specifically like or dislike on this site (open question). Answers varied greatly. Often, what one person wanted, another did not. A common theme to the Bonestroo and Stantec studies is mixed-use. Referring to the development proposals, mixed use is proposed by Global and INH. INH’s proposal is specific to an indoor shooting range. Global’s three proposals (Option 1, 2, 3) are not tenant specific. Options 1 & 3 include mixed use buildings with residential over retail. Global has stated that if they are not able to fill retail space, it may be converted into residential. City Staff has discussed with Ramsey County access to the site. The County’s Access Management Policy recommends that driveways be setback a minimum of 660’ from an intersection. The south end of the property is about 500’ from the Co Rd H2 intersection with Mounds View Blvd, thus, it is unlikely that an access would be approved onto Mounds View Blvd. Access is likely to come from Edgewood Dr, and Co Rd H2. This has been communicated with the three developers, none of which have responded that the limited access would substantially change their proposals. However, it will affect the type and amount of retail/office. In comparing the three developer’s proposals to the Bonestroo and Stantec studies, it should be understood that the developers did not have the same benefit of time. Thus, the proposals do not include the same level of detail for landscaping, public amenities, and exterior materials compared to the two studies. If Councilmembers have expectations for specific amenities or appearances, the Council should express that to the chosen developer so that it may be incorporated into the next design phase. The anticipated development process is as follows: Fall 2017: City enters into predevelopment agreement with Developer. Fall/Winter 2017: Developer applies to re-zone property from B-3 to R-4 or Residential PUD if all residential, or to Mixed Use-PUD if residential/retail. Winter 2017: Developer applies for Preliminary Plat and Development Review. Winter/Spring 2017: Developer applies for TIF, if applicable. Spring/Summer 2018: Developer applies for Final Plat. Greenfield Ave is vacated. Property is sold by City to Developer. Fall 2018: Utilities are moved, construction begins. Fall/Winter 2019: Construction completed. LAND VALUE Attached, please find a chart showing: (1) assessed land values and City’s acquisition costs, (2) price scale per sq ft of land/buildings, and (3) comparable land values. The City purchased these properties (3.81 acres/165,963.6 sq ft excluding ROW) and demolished three buildings for the equivalent cost of $10.86 p/sq ft ($1.8 million). The second graphic on the attached chart shows a variable cost of $1 - $7 p/sq ft ($166,000 - $1.1 million). If the City Council vacates Greenfield Ave, this would add approximately Item 03 August 21, 2017 Page 4 15,840 sq ft for a project total size of 181,803 sq ft (4.17 acres). Staff recommends a selling price of $6 p/sq ft ($1,090,818) to $6.601 p/s aft ($1,200,000). The Beard Group and other previous developers preliminarily agreed to pay $1.2 mill for all three parcels. The type of development could change the value of the land. Recommendation: Staff requests that the City Council consider each developer’s proposal, ask questions, and choose a preferred development team (by consensus), OR continue the discussion at a future meeting if more information is needed. Staff recommends a land sale price of $6.6 p/sq ft ($1,200,000) then negotiating to $6 p/sq ft ($1,090,818.00), depending on the TIF run and public subsidy requirements. To determine a more accurate price, a formal appraisal and survey would need to be completed. Once a developer has been chosen, the next step is to enter into a preliminary development agreement. Staff will work with the City Attorney and developer and present the agreement at a future regular Council meeting. Respectfully submitted, ____________________ ____________________ Brian Beeman, MPA Jon Sevald, AICP Business Development Coordinator Planner ATTACHMENTS 1. Chart comparing the three development proposals 2. Dominium presentation, May 1, 2017 presentation Global Real Estate / Kraus-Anderson, July 17, 2017 presentation1 INH Properties, July 17, 2017 presentation 3. Chart of comparable land values 1 Global Real Estate presented two options at the July 17th Work Session, and has added a third option. Item No: 6 Meeting Date: August 21, 2017 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Discuss Potential HR Specialist Position Introduction: The resignation of Assistant City Administrator Desaree Crane has created an opportunity to review the job description and make changes to better reflect our current needs. Staff believes that at this point, there isn’t a compelling need to maintain an assistant city administrator position, however one of the core duties of the position should persist as a position on its own—that being human resources. A couple years ago we had discussed internally how such a position would be defined and a job description was created. Discussion: The attached job description for a Human Resources Technician is similar to other HR positions in suburban communities. Given the combination of HR duties, business licensing and City Clerk responsibilities, the position should continue to be full time. The position could serve directly under the City Administrator or perhaps report to the Finance Director. Recommendation: Review the draft job description for the position of Human Resources Specialist or HR Technician to replace the Assistant City Administrator position. If the Council feels it would be important to move forward with the position in advance of hiring a new City Administrator, I would recommend asking Springsted to point the new position and generate a market-rate compensation schedule before posting the position. Given the present staffing deficiency, the City Council could ask an HR consultant to assist in the marketing, collection, ranking and backgrounding of candidates for the position. Respectfully submitted, ________________________ James Ericson City Administrator