HRSR MEMORANDUM 07-19-2002 f .
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MEMORANDUM
TO: Housing and Redevelopment Authority
Mayor & City Council
FROM: Catherine Mehelich, Director of Economic Developmen , 7
DATE: July 19, 2002
SUBJECT: Downtown Revitalization Project
- Developer and Project Evaluation Criteria
Attachments
• Developer and Project Evaluation Criteria
• • Developer Interview Questions
• Developer Qualification Interviews—Evaluation Score Sheet
• Downtown Revitalization Project Goals and Objectives
An interview of the three finalist developers is scheduled for the Monday,July 29, 2002
special meeting of the HRA and City Council. The meeting will be heldin the City Council
Chambers and start at 5:00 p.m.
The three developer interviews will be scheduled for up to 45-minutes each, allowing
sufficient time for presentation, and question and answer. There will be a 15-minute break
between each interview. Staff recommends that the HRA make its selection of the
developer at a separate meeting in order to allow sufficient time to consider all of the
information,rather than reactive to the presentations alone.
Staff and Ehlers &Associates have drafted the attached standardized evaluation criteria,
interview questions, and evaluation score sheet. It is important that the HRA and City
Council agree on the basis for which the developers will be evaluated.
Since the HRA and Council will not be meeting prior to the July 29th interview, staff requests
that HRA and Council members review the attached items and consider any ideas you may
have for additional questions or evaluation criteria.
IIII will contact you early next week to discuss any of your ideas, or you may contact
me directly at 441-4905.
"(City of
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City of Elk River
Developer and Project Evaluation Criteria
1 .0 Experience
1.1 Previous redevelopment experience, including experience developing similar project
(especially neighborhood office and retail).
1.2 Previous experience incorporating existing local businesses into redevelopment
project.
1.3 Knowledge and experience with market segments relevant to this project (retail,
office and housing).
1.4 Demonstrated ability to move from concept stage to construction completion within
a reasonable time frame.
• 1.5 Knowledge of development process including land use, utilities, roadways, wetlands,
environmental and other regulatory permitting and review processes.
1.6 Demonstrated ability to "partner" with other firms for project design and
development.
1.7 Ability to establish effective working relationships with redevelopment impacted
persons, property owners and businesses, community members, elected officials and
staff.
2.0 Financial
2.1 Financial capability, including ability to secure project financing, secure construction
bonds and finance pre-development activities.
2.2 Financial planning capacity including ability to prepare project pro-formas and
financing plans.
2.3 Ability to demonstrate initial project financial feasibility.
3.0 Design
3.1 Design capacity as evidenced by similar projects that have been completed.
3.2 Design flexibility as evidenced by ability to adapt designs to meet local design
criteria.
3.3 Consistency of design elements with established design framework
• 3.4 Creativity as demonstrated by design approaches used to address special
development challenges.
S:\Downtown Revitalization\Proposal Review\Developer and Project Evaluation CriteriaER.doc
City of
Elk
River
City of Elk River
Downtown Revitalization Project
Developer Interview Questions
July 29, 2002
1. Describe your redevelopment experience in developing projects similar to Elk River's
traditional downtown.
2. What steps would you take to develop public support for your proposed development?
• 3. Describe your previous experience incorporating existing local businesses into a
redevelopment project.
4. Describe what efforts will be made to maintain the traditional design of the Elk River
downtown.
5. What are the major challenges to accomplishing the development program you have
proposed?
6. Describe your approach to move from the concept stage to construction completion within
a reasonable time frame. What is your expected time frame?
7. Identify the expected level of public improvements required to accommodate your
development.
8. Identify the process you will use to assure that the proposed development is market and
financially feasible.
9. Describe the variety of means that your firm would consider closing any gaps in project
financing,including but not limited to funding sources.
•
S:\Downtown Revitalization\Proposal Review\Developer questionaireElk River.doc
TEAM EXPERIENCE
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City of
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City of Elk River
Downtown Revitalization
Project Goal & Objectives
Purpose: For more than 30 years,various studies and proposals have examined the need to redevelop
Elk River's downtown business district. Investment in the downtown has stagnated and area businesses and
residents alike are concerned about the need to revitalize downtown and attract people there.
Neighborhoods age, and change will occur whether or not the City intervenes. Controlling that change
through revitalization and redevelopment will ensure that the types of changes that occur in downtown Elk
River are the ones people want—those that will keep our community vital and flourishing.
Primary Goal: To assure the long-term viability of downtown by making a connection to the rest of the
community and by utilizing the riverfront location. Redevelopment will enhance downtown Elk River's role
as a residential, retail and commercial area and also revitalize investment in the downtown business district.
Development Objectives:
• Mixed use (residential/retail/service)
• Consideration of the historic context study results
• Strengthen connection to the community
• Traditional downtown design elements
• Brick, stucco, stone materials with visual breaks in the building design
• Increased residential density
• Pedestrian orientation
• Increase exposure to the riverfront
• Recognize those buildings that have potential for rehabilitation
• Replace market/economic obsolete buildings
• Multiple types of housing products (i.e. townhomes, senior rental coops,market rate apartments)
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City of Elk River
Downtown Revitalization Project
Redevelopment Process
The phases of Redevelopment Process include:
Phase I — Need Identification
The HRA has identified the Core Central Business District as the focus area for redevelopment. The
primary goal is to assure the long-term viability of downtown by making a connection to the rest of the
community and by utilizing the riverfront location. A communications strategy is developed to keep the
public informed of the project and to provide opportunities for public comment.
Phase II — Concept Development
Various design concepts have been developed which incorporates consistent themes from the previous 30
years of planning, current design objectives, and input from the development community. The design
• concepts identify desired outcomes, potential redevelopment uses and design ideas, and designates potential
areas for redevelopment.
Phase III — Concept Refinement
In this phase the concept is tested for market and financial feasibility with the help of developers and market
specialists. The redevelopment concept is then refined,based on the financial and market analysis. This
phase includes an opportunity for the public to provide comments on the alternative design concepts.
Phase IV— Request for Proposals/Developer Selection
The City will be contacting qualified developers to discuss the redevelopment concept. Developers'
experience and financial capabilities are assessed. One or more developers are selected for further analysis
of the redevelopment feasibility. The City reviews general plans,including uses, design concepts, densities
and financial feasibility with developers.
Phase V— Development Agreement
Most of the planning is completed and a developer has been selected,but the project is still months from
construction. A pre-development agreement is negotiated with one or more developer,providing a period
of exclusive right for development. During this period the developer must refine plans and assess market
feasibility. In the development agreement, the developer secures a lease commitment and financing for the
project,completes land use and other regulatory issues. The development agreement occurs when the
developer completes contingencies and initiates land acquisition and building design.
Phase VI — Construction
• All development agreements are final, acquisition has begun and even some initial demolition of existing
properties has occurred.