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7.3. HRSR 07-29-2002 • Item # 7.3. 1i City of River MEMORANDUM TO: Housing & Redevelopment Authority Mayor & City Council FROM: Catherine Mehelich, Director of Economic Developmen DATE: July 29, 2002 SUBJECT: Downtown Revitalization Project - Developer Interviews Attachments • Developer Evaluation Criteria • • Developer Interview Questions • Developer Evaluation Score Sheet—TOLD,Best&Hempel,MetroPlains • Elk River Downtown Revitalization Project Goal and Objectives • Elk River Downtown Revitalization Project Redevelopment Process Background In early May the City received five proposals in response to its request for proposals for the Downtown Revitalization Project. In June the HRA selected three finalist developers for further interview and consideration. Following is the schedule for interviews: 5:15 —6:00 TOLD Development Company 6:15—7:00 Best&Hempel 7:15— 8:00 MetroPlains Development Format Each interview has been scheduled for up to 45-minutes. The attached Evaluation Score Sheets are provided if you wish to use them. The developers have been asked to make a 20- minute presentation,which should include the following items: • Development partners • Past experiences that clearly relate to downtown Elk River • Proposed site(s) and proposed project(s) • How does the proposal meet the outlined Goal and Objections of the Revitalization 411 Project Downtown Revitalization Project Developer Interviews July 29,2002 • Page2of2 The balance of the time will be reserved for the attached prepared interview questions. Please note question numbers 10 and 11 were added as suggested from certain HRA and Council members. Staff suggests that each HRA and Council member take a turn in asking a prepared question. There will be a 15-minute break (or cushion-time if needed) 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 reacting to the presentation alone. Following the HRA's selection the Council may be asked to ratify the decision so that there is consensus by both public bodies. • 4111 City of Elk .� .. River Downtown Revitalization Project Developer 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 • -fs City of Ells --�- 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. 10. Identify any additional development sites you would consider as an alternative to your initial proposal, or for future phases. 11. Describe your plan of action if you hit a roadblock during the project process e.g. site • constraints, funding,public support. S:\Downtown Revitalization\Proposal Review\Developer questionaireElk River.doc a,/ • City of Ells - �-, River Downtown Revitalization Project 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) • • City of El --�-, 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 Ill — 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. • Downtown Revitalization Project Developer Interviews - Evaluation Score Sheet Developer: TOLD Development Company Person Evaluating: •nterview Schedule: 5:15 — 6:00 PM Project Description: Plan A: 110 Units of Market Rate Apartments & 4,000 sq/ft Retail Location: Lowell Ave to King Ave., South Main Street to River Plan B: 64 Units of Market Rate Apartments & 6,000 sq/ft Restaurant or Retail Location: Nadeau's to Cinema Building Rating Guidelines Score I Description 0 Non responsive to issue 1 Vague understanding of issue.No or limited experience with desired capacity. 2 Limited understanding of issue.No relevant experience with desired capacity. 3 General understanding of issue.Limited or non-specific examples of desired capacity. 4 Clear knowledge of issue. Specific and relevant examples of desired capacity. Criteria Comments Score Previous related experience i iii{ Experience with local businesses Knowledge of market Project planning capability Py Knowledge of development process Partnering experience Financial capability q,�'T, Financial planning capability Design capacity Z Design flexibility 6 in Design creativity • Total . _1 _ ® ff j ..,/ ' I in / 8 NN O N g O ® ® 8 N / a� UZ 3AV 110H / 8 J CD I . El �s U O L . ; 7 zED- K----- /al A 1 Mt . HAV DNIANI 1111111 will ,, i v ® �N IJQ II • a,I xw ` .�" O a NDVf O C¢ O c.7) a E.„ , 1 o W a o , tr4Q Cl ,,,,,,,,:,” - anv D/rx�. C > F i ,. • I EZ, '¢' IQ r .... ... 0 Q O O ;z Q ?, H Q m tc 44 ''S • 21v 773M07 4 ,, f as l III. 4® r® or 4w t• i . , is • . Downtown Revitalization Project Developer Interviews - Evaluation Score Sheet Developer: Best&Hempel Person"interview Schedule: 6:15 —7:00 PM Project Description: 78 Units of Market Rate Apartments 4,825 sq/ft Retail 6,375 sq/ft Restaurant Location: Nadeau's to Cinema Building Rating Guidelines Score Description 0 Non responsive to issue 1 Vague understanding of issue.No or limited experience with desired capacity. 2 Limited understanding of issue.No relevant experience with desired capacity. 3 General understanding of issue.Limited or non-specific examples of desired capacity. 4 Clear knowledge of issue. Specific and relevant examples of desired capacity. Criteria Comments Score Previous related experience Experience with local businesses • Knowledge of market Project planning capability Knowledge of development process Partnering experience Financial capability illFinancial planning capability Design capacity Design flexibility Design creativity Total r . , 1 .,, i ft, c 0 4 11 "11111 a: a 4, s 8 * SIP 4 _ . . ,, , /4 1 Mg • ®i LOWELL AVE obi I C41-71-le'D . : - - , g I()' a GG AVE N4 O IhL471°'''""1 / /-... 4 Ng , ,- ,-, z' o �_ ..• r: ill ,--3 7) • JACKSON AVE cn CA 10 (/J JACKSON A CA b r* \ O 7► ,S� c7 oa O PCJ O — y 1111 l' al 111 111 111 !:4 i 0 ■ IRVING AVE Om L I iii s 17 , as 11 a y t _ 8 / HOLT AVE l .� II 5.1 `gig g / \ / p N N 8 / r , ., , PI ._11 ® iiiiii Downtown Revitalization Project Developer Interviews - Evaluation Score Sheet Developer: MetroPlains Development Person Evaluating: onterview Schedule: 7:15 — 8:00 PM Project Description: Plan A: 80 Units of Market Rate Apartments & 8,000 sq/ft Retail Location: Nadeau's to Nextel Communications Building Plan B: 96 Units of Market Rate Apartments & 10,450 sq/ft Retail Location: East King Ave and NE corner of King&Main Rating Guidelines Score I Description 0 Non responsive to issue 1 Vague understanding of issue.No or limited experience with desired capacity. 2 Limited understanding of issue.No relevant experience with desired capacity. 3 General understanding of issue.Limited or non-specific examples of desired capacity. 4 Clear knowledge of issue. Specific and relevant examples of desired capacity. Criteria Comments Score Previous related experience Pak Experience with local businesses IIF- Knowledge of market Project planning capability Knowledge of development process Partnering experience Financial capability Financial planning capability Design capacity Design flexibility iht Design creativity • Total !V MI % 4111111 IC .6 I 1 Aft ., a LOWELL AvE I , . 1 all ' ---- - 7 ,[7 o4 y O m O 7***** S yr 1() a A b • y a / 1 b 7 J ICKSON AVE 1 l ,...: II, JACKSON A V1 "S7 • A 1, sb O y ad H Fill all IRVING AVE J� L ® 11/ , / I7' ,' ■ p �r ®® 1 ®Z so nil I-- g / HOLT AVE • .� 5-ig CI-21 P / -1 • / , ' N 8 / _._L. ..1_.. _ _.. 1�] f __ . _ _._ _.._ _..