9.2. SR 10-19-2015 E04y1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.2
Agenda Section Meeting Date Prepared by
Work Session October 19, 2015 Zack Carlton,Planning Manager
Item Description Reviewed by
Concept Review for Modern Construction Cal Portner, City Administrator
Reviewed by
Action Requested
Provide informal, nonbinding feedback on the proposed development on the south side of Yale Court.
Background/Discussion
Jesse Hartung, owner of Modern Construction,is seeking feedback for his proposed development of the
city-owned property on Yale Court. Modern Construction focuses on high quality, environmentally
friendly buildings. Many of their projects receive the highest ratings for energy efficiency and
sustainability. Mr. Hartung will utilize the same level of craftsmanship for the proposed mixed use
development project and plans to create a showcase building.
Plans identify using the Yale Court property for a five story structure with 90+ residential units and 12+
leasable commercial spaces. The project also incorporates cohousing units where multiple families
(generations) share living and cooking spaces but have separate bedrooms. The latest green building
techniques will be used and plans include green roof agriculture, running tracks, and other active uses to
promote healthy living for the residents. Mr. Hartung also owns the 11 acres along the river and below
the Yale Court property. This area has the opportunity for a city park, expanded recreational
opportunities, and additional space for green building practices like geo thermal.
Analysis
Land Use and Zoning
The property is currently zoned Planned Unit Development (PUD) and is part of the Mississippi Ridge
development. The proposed use is not permitted in the current PUD agreement, and will require
establishing a new PUD to account for the change in use and the proposed deviations from city
ordinances. Changes from the ordinance include reduced setbacks for front yard,rear yard, and bluff
lines. There are also a number of concerns relating to the Wild and Scenic River Front ordinance that may
be addressed during the PUD process. The Environmental Division has been working closely with the
applicant to begin identifying potential solutions.
Development in this area is guided by the FAST plan and the property is split between two sub-areas;
existing residential along the river and service commercial along Hwy 10. The proposed uses support the
FAST and Comprehensive Plans.
Site Plan
Access to the site will be from the extension of Yale Court and connection to 1701h Ave near the daycare.
POWERED 6T
Template Updoted 4/14 INAMIRE1
The extension is identified in our transportation plans and is one of the key roadway connections desired
by the city. The existing cul-de-sac will be modified to accommodate surface parking north of the
building which is pushed to the west side of the parcel and as close to the bluff line as possible. The
proposed bluff line setback is zero feet.
The extension of Yale Court will likely include a land swap with the bank property to accommodate
proposed roadway geometrics. The buildable section of the parcel available, after accounting for road
right-of-way,is approximately three-quarters of an acre and will require creativity on behalf of the city
and developer to fit the program on site.
Landscaping
With such a small site there is minimal opportunity for landscaping. However, the developer plans to
include a green roof and minimize impervious surface areas as much as possible. During the PUD
process staff will work with the developer to identify potential landscape opportunities.
Budding
Construction is proposed to use the most up-to-date building materials and techniques to ensure
efficiency and promote sustainability. The plan includes five levels above ground and two levels of
parking below ground. The narrative identifies the potential for geothermal heating and cooling, solar
panels above street parking and on the rooftop,horizontal wind turbines mounted to the building, and
numerous "smart" technologies to manage building systems.
Parking
The current plan includes a total of 122 parking spaces. Of these, 16 are surface parking spaces and the
remaining 106 are in the parking garage. Ordinance requires approximately 275 parking spaces, depending
on the retail space configuration. With a small parcel,parking is a concern and the applicant is exploring
additional opportunities for parking. Potential plans include extending one level of underground parking
beneath the current cul-de-sac and tying the surface and structured parking together. Staff will continue
working with the applicant on the parking concerns and the PUD process will allow us flexibility if a
reduced parking demand be identified.
Financial Incentives
The applicant is requesting that the city forgive all of his development fees for planning, SAC/WAC, and
building review/inspection. He is also requesting that the city pay for the installation of the Yale Court
extension and associated trunk utilities, and transfer the building site to the developer. It has not been the
city's practice to waive development fees and staff does not recommend deviating from that practice.
Additionally, the installation of roads and trunk utilities is typically paid for by the developer.
Based on the green initiatives the project qualifies for the PACE program which is a loan to help pay for
green technologies. City staff is exploring additional options that may be available to help finance the
project, and will be in contact with the developer regarding any programs or incentives identified.
In addition to the development impacts, the Council is asked for feedback regarding their appetite for the
requested financial incentives.
N:\PubhcBodies\Agendo Packets\10-19-2015\x9.2 sr 1Nlodern Construction.docx
Financial Impact
None
Attachments
■ Location Map
■ Applicants Narrative
■ Site and Building Plans received September 21, 2015
N:\PubhcBodies\Agendo Packets\10-19-2015\x9.2 sr 1Nlodern Construction.docx
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9/12/2015
Project Overview
Modern Construction of Minnesota, inc.
Ecology Mixed use building
General Overview
Modern Construction of Minnesota inc (Modern) is proposing to develop and construct a state of the art
mixed use building within the city of Elk River along the Mississippi River. This building will consist of
rental apartments, commercial space, retail space, and underground parking and be built using some of
the most advanced and sustainable construction materials and methods as outlined below. It is the goal
of Modern to provide a safe, environmentally friendly living and working space for the residence and
business of Elk River and show the state and nation that Elk River is the only place to raise a family, start
a business, and truly be "Powered by Nature"
Site Concept:. (see initial drawings)
-3/4 Acre building pad site less future road expansion
-11 Acre recreational site along the Mississippi to be co-developed into a city park/open area
-Ability to connect to local and future regional trails, public transport, and pedestrian walkways
-Landscaped using native prairie plantings, permeable surfaces, and minimal grass
-Site work for future park entrance and parking garage on Yale ct
Building Overview: (See initial sketch)
-Create 90+ residential housing units of various size and price from studio to 3 bedroom
-Create 12+ commercial/retail office spaces for lease with additional executive office spaces
-Create a section of cohousing units (see below for details)
-Provide underground and on street parking with trail and sidewalk access
-Implement the latest green building technologies and practices as highlighted below
-Provide access to sustainable, safe, and healthy food, water, and air as highlighted below
-Foster a strong community around sustainable and peaceful co-habitation as highlighted below
-Use the building as a successful proof of concept for further development in the FAST area that
benefits both the city, the residents, and the environment ----financially and politically
Green Building Initiatives: (full set of features still being determined)
-Design the building to minimize waste, reduce site damage, and increase layout efficiencies
-Minimize resource use during construction through recycling, project management, and reclamation
-Provide 100% LED lighting for all exterior, interior, commercial, residential, and common space lighting
-Use triple pane windows for all residential units and explore triple pane windows for commercial units
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Green Buildina lnitiatives: (full set of features Mill being determined) Cont.
-Install occupancy sensors, timer switches, dimmers, photocells detectors, and other automated tools
-Explore the use of Geo Thermal heating and cooling using the Mississippi river or fled plain area
Explore the use of solar, panels above street parking, on the building rooftop, and in flood' plain area-
possible community solar project in co-operation with ERMU
-Explore the use of horizontal wind turbines along the building perimeter
-Install smart controls/ BMS systems for mechanical equipment such as smart irrigation meters,
programmable thermostats„ automatic blindcontrols, automatic door closers, and usage monitoring tools
-Provide electric car charging stations at street level and underground parking
-Create greater density and reduced material usage through a limit use of cohousing units
First building its the nation to use state of the a "thermal studs"'
Sustainable/ stronq vibrant community lnitiatives, (still under study)
-Build organic rooftop gardens and green houses to promote sustainable agriculture
-Install air quality equipment such as upgraded filtration, humidifiers, dehuimidifiers, central vac
-Install water quality equipment to capture/reuse rainwater and run off for agriculture and landscaping
-Provide outdoor communal spaces for relaxation/cooking/education on roof top and in flood zone
-lyse low/ no voc building materials where available,, specifically paints, carpets, finishing materials
-Provide bike storage and lockers with safe connections to local trails/sidewalks to promote healthy
travel
-Provide multiple housing units to include handicap/cohousing or multi-family living /medium family/
single/ and special needs to promote a strong diverse community
Provide amenities that support healthy active lifestyles such as a covered running track in the parking
garage or flood plain, community fitness facilities, community gathering facilities, community pet and oar
washing facilities, community business facilities, park and wildlife areas in the flood plain, a scenic
'Mississippi boardwaik/overlook, an off leash dog park area, restoration of native prairie plantings in the
flood plain, community theater room
-install recreational facilities in the flood plain that include fire pits, volley ball pits, sand boxes,
playground equipment„ and other low environmentally impactful amenities.
-use native prairie plantings and permeable surfaces for landscaping with an effort to minimize grass and
impervious surfaces to reduce runoff and pollution of the surrounding river and wetlands
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PUD Requests and variances
As demonstrated by the list above this project will greatly benefit the residents and business of Elk River
and provide unmeasurable recognition for the City of Elk Diver as a leader in sustainable development.
In addition this project fulfills more objectives in the Elk River Comprehensive plan than any other single
project including job growth, sustainable development, goals laid out in the FAST plan„ miixed housing
types, and green building promotion.
Such an ambitious project will require the careful planning and assistance of the City of Elk River as well
as a number of variances and incentives to insure the success and benefits of such a project are shared
among all Elk River residents.
'variances:
-bluff line setback to be 5' so that building can sit on the bluff' line to prevent erosion
-tree removals to be replaced on a 111 to 5 ratio in the flood plain
-street setback to be 1' at closest point die to street curvature or redesign of future yale ct
-side setbacks to be 10'
-building height variance to accommodate 5 stories plus non-permanent greenhouse
-high water table variance to 1°for parking garage
Wetland/flood Dlain area a rovals needed:
-gravel road to access flood plain located at current trail location
-diversion of existing storm water pondon yale ct to flood plain area to accommodate future park
entrance
-use of flood plain area for permeable parking lot, geothermal loop field, permeable running track
-use of flood plain area for park facilities as highlighted above
-installation of boardwalk/dock at Mississippi river
-installation of solar panels
-native prairie and shoreline restoration projects in flood plain
it parovided incentives:
-Installation of yale ct expansion and sewer/water/utilities
-.transfer of remaining building pad and land adjacent to cul-de-sac to Modern for development
-waiver of all planning fees
-waiver of all, SAS QAC fees
-Waiver ofall building department fees
year property tax deferment during site improvement phase
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Modern Provided incentives:
-Transfer of 6 acres of Mississippi river frontage land to the City of Elk River
-,Site improvements and prep work for future parks and trails
-Initial FA.S.T development to spearhead future development
-Open source all building plans and techniques to prornote future sustainable building in Elk River
- n street public car charging ports
Summary:
Modern hopes to work with the city be able to build a truly landmark building that demonstrates when
municipalities and business work together toward common goals development can be dram in a gray that
benefits the environment, the City, and the residents and business within the city in the short and long
terra. Modern has the ability to deliver on such ambitious goals as demonstrated by multiple projects
already completed within the city limits achieving efficiency scores in the top % worldwide with costs
considerably .under market value.
It is the goal that the planning, environmental, and building departments can provide feedback„
assistance, and a letter of support to modern as a complete proposal is developed and presented to city
council can community,
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Ecology
October 192015
th
1
Introduction
Who is Modern
2
Modern Construction of Minnesota, Inc.
LocalExperiencedProven
•Founded in Elk River by an Elk •Owners experience dates back •National Energy scores average in
River residentover 20 yearsthe top 5% for all new houses,
some reaching the top 3% of all
houses tested under the HERS
•4 full time employees are Elk •Combined experience of all staff
program
River residents and many other exceeds hundreds of years
regional residents on staff
•Achieving state of the art home
•Hundreds of commercial and
construction while maintaining
•Currently officingin a similar residential projects completed
costs at or well below market
building at 621 Main ST
rate as evidenced by purchase
price and MLS Sold homes data
3
Common Goals
Sharing the responsibility
4
“Abounding in natural beauty, Elk River is a vibrant, historic rivertown
that promotes an active lifestyle in an innovative and involved
community offering unlimited opportunities”
-Elk River Vision Statement
Elk River stated aspirationsEcology stated goals
History Making Project
•First building to use Thermal Stud in the nation
•Powered by nature
•First Co-Habitation units in the state
Identity
•Having destination locations
•Opportunity for destination park on the Mississippi
•Character all its own
•Proof of concept for future private and public sector
collaborations
•Commercial is the most visible, used to
shape views and attitudes about community
Innovative Development
Development
•Promote sustainable and energy efficient
forms of development
•Site plan to maximize open space and natural resources
•Expansion of local employment
•Sustainable development with an entire systems approach
•Recreational opportunities are vital
•Results in huge short term and large long term economic boost
elements of a complete place
•Private sector funds to promote the project and Elk River
•Accessible for all people, create
Community
Truly Community focused
opportunities for social connections
•Everyone shares the responsibility, the city
•Local public park to enjoy nature and promote active lifestyles
will seek collaborative efforts
•Organic rooftop gardens, co habitation and accessible housing units
•Safe indoor air quality and improved quality of life through shared
amenities and facilities
5
Ecology Overview
Using private development to fulfil public aspirations
6
General
-90+ residential housing units of various size and price
-12+ commercial/retail office spaces for lease with additional executive office spaces
-underground and on street parking with trail and sidewalk access
Green Building Initiatives:
-Design the building to minimize waste, reduce site damage, and increase layout efficiencies
-Minimize resource use during construction through recycling, project management, and reclamation
-Use Thermal Studs to reduce noise pollution, increase comfort, and reduce energy consumption
-Provide 100% LED lighting for all exterior, interior, commercial, residential, and common space lighting
-Use triple pane windows for all residential units and explore triple pane windows for commercial units
-Install occupancy sensors, timer switches, dimmers, photocells detectors, and other automated tools
-Geo Thermal heating and cooling using the Mississippi river or flood plain area for the loop field
-Explore the use of solar panels above street parking and on the building rooftop, possible community solar project in co-operation with ERMU
-Explore the use of horizontal wind turbines along the building perimeter
-Install smart controls for mechanical equipment such as smart irrigation meters, programmable thermostats, automatic blind controls,
automatic door closers, and usage monitoring tools
-Provide electric car charging stations at street level and for underground parking
Sustainable/community Initiatives:
-Install a rain water collection system
-Build organic rooftop gardens and green houses to promote sustainable agriculture
-Install air quality equipment such as upgraded filtration, humidifiers, dehumidifiers, central vac
-Install water quality equipment to capture/reuse rainwater and run off for agriculture and landscaping
-Provide outdoor living spaces for relaxation/cooking/education on roof top and in flood zone
-Use all low/ no voc building materials where available, specifically paints, carpets, finishing materials
-Provide bike storage and lockers with safe connections to local trails/sidewalks to promote healthy travel
-Provide multiple housing units to include handicap / communal or multi-family living / medium family / single / and special needs to
promote a strong diverse community
-Provide amenities that support healthy active lifestyles such as covered running track in the parking garage, community fitnessfacilities,
community gathering facilities, community pet and car washing facilities, community business facilities, park and wildlife areasin the flood
plain, a scenic Mississippi boardwalk/overlook, an off leash dog park area, restoration of native prairie plantings in the floodplain, community
theater room, install recreational facilities in the flood plain that include fire pits, volley ball pits, sand boxes, playground equipment, and
other low environmentally impactful amenities.
7
Co-habitation Units
Providing extremely affordable rental/transitional housing based on a common
lifestyle or synergistic lifestyles. (single parent, college students, widowed
elderly)
Each group consists of shared living, dinning, kitchen, laundry, and entertainment
areas while maintaining private sleeping and possible bathing areas
Builds a community around peaceful living and creates social connections between
groups that would typically feel isolated in single family homes
Maintained by a designated community leader with oversight by the property
management team
Interview process and procedures to be selected for joining the community (may
be operated as a non profit within the building)
Could be multiple family members getting together and each renting out a room to
live together with separate bills but share the common areas
Estimate that a total of 3 units will be built with between 5 and 15 rooms per unit
for a maximum of 45 co-habitation units initially
8
Making it Happen
Public Incentives requested, Private incentives offered
9
(Provide incentives that encourage the use of green building techniques)
(Promote mixed commercial/high density housing in near future transit hubs)
-
Excerpts from page 84 on the city comp plan
Public IncentivesModern Incentives
Dedicate 6+/-acres of river frontage land
Provide building pad on Yale CT with
for city park
all infrastructure improvements
Spend $100,000 in private money to
promote the city as a leader in
Provide PUD and CUD approvals to
sustainable development and the city with
achieve the stated goals
the highest quality of life
Exempt all planning, zoning,
Open source all building data and
construction methods with ERMU, the
building, SAC, WAC, and application
local schools, and the public
fees for the entire project
On street improvements for future park as
well as public car charging ports
3 year tax abatement for entire
building and land during site
Zero Contractor fee-over 1.5 million in
costs reduced to make financing on such a
improvement phase
forward thinking building possible
10
Collaboration is the Key to Success
PublicPrivate
PublicPrivate
Incentivesinvestment
Overview &
Time
Direction
Planning
Expertise
support
-All requested incentives are justifiable by the comp plan direction and implementation guidelines
-All financial incentives are reductions in possible revenue and not increases in spending; the revenue would not be realized ifthe
building doesn’t get built so the net effect on the city budget is zero with or without the building
-The value of the requested incentives is negligible considering the value and opportunities the project will provide to the city, the
residents, and business
11
-Long term tax revenues as a result of an increased population, economic growth, employment expansion provides a very favorable
ROI for the city
What the comprehensive plan says…..
12
What the comprehensive plan says…..
Incentives
Does the comp plan support the requested incentives?
•The comp plan calls specifically for incentives to be provided to support green building technologies, sustainable
development, preservation of natural spaces, and economic growth. (chp 7 pages 83 and 84, 90, chp 12 page 129)
•The comp plan calls for collaborative efforts with those that have a shared vision –chapter 2, page 7
•Specific work needed in this project is already slated to be completed by the city (Yale CT infrastructure, future
Mississippi access)
Support & Promote
Does this project line up with the goals of the comp plan?
•The comprehensive plan is filled with more than 50 statements that call for the city and its related departments to
support Green technologies, sustainable development, preservation of open space, the expansion of the commercial tax
base, expansion of local business and etc.
•This project will provide solutions to all of the above listed city goals at a fraction of the costs of various independent
efforts
Image & Identity
Will Ecology positively impact the Image of Elk River?
•Chapter 13 goes into great detail the importance of the core image of Elk River and it’s “powered by Nature” theme (page
132), this project will literally be powered by nature with it’s geothermal HVAC system and solar panels
•Effectively marketing the City as a place with a high quality of life is called out on page 132, this project embodies the
core tenants of a high quality of life and will have a dedicated marketing budget to promote the building and the city as a
whole
!!!This project fulfills the goals and objectives on more than 40 pages of the
Elk River Comprehensive plan!!!
13
In Conclusion
Putting it all together
14
A Historic Opportunity to Create an Iconic Building
through an Equitable Public and Private Partnership
Elk River instantly becomes a leader in sustainable development
Portions of the F.A.S.T plan get completed
Elk River receives access to the Mississippi River and a public park space
A substantial increase in the most reliable tax revenue source
Local and regional short term and long term job growth
Private sector investments over $1.5 Million to make this project happen
Ongoing knowledge and educational opportunities to develop further
sustainable development within Elk River
Only Building in the State to offer Co-habitation units
15