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5.2. HRSR 12-03-2001 Item 5.2. • J� City of Elk - -� River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development���% DATE: November 26, 2001 (/ SUBJECT: Core Central Business District (CBD) Concept Refinement Attachments • Preliminary Concept Summary • Core CBD Redevelopment—Jim Prosser, Ehlers &Assoc. Memo • Concept Drawings of Redevelopment Concept Options A - E • • Concept Advantages/Disadvantages Worksheet • Concept Refinement Issues —Jim Prosser, Ehlers &Assoc. Memo Issue At the October HRA meeting the HRA began steps in developing a concept for redevelopment within the Core CBD,including identifying an area and goals for redevelopment. The attached staff memo summarizes the preliminary concept that was generally agreed upon by the HRA. Since the October meeting, staff has met with members of the development community for the purpose of receiving input regarding redevelopment in the Core CBD. The attached Concept Refinement Issues memo from Jim Prosser of Ehlers summarizes the feedback from developers. Staff has also developed a series of concepts for consideration by the HRA. It should be noted that the "Staff Recommended Concept—Option B" includes many elements of the developer comments. The concepts being presented include the two extremes —"Do Nothing—Option A" and "Re-do Everything—Option E". It is important to keep in mind that the concept plan is not an exact blueprint for development,but rather a guide for development. There will be elements of each design that people like or dislike. The goal of the November meeting is to refine concepts that can be generally agreed upon by the Commission. Also,while the concepts may look 111 overwhelming, the redevelopment of the area would be broken into manageable pieces that would be prioritized. The primary purpose of establishing a development concept is to Core CBD Concept Refinement November 26,2001 Page 2 of 2 • provide developers, during the request for proposal phase,a better vision for the City's expectations of a project. The concept also provides the public a greater understanding of the City's goals for the redevelopment project. Overview The refinement of the Core CBD concept will involve the following tasks during the meeting: 1. Review Preliminary Concept 2. Discuss Development strategies/policies 3. Review Redevelopment Concept Options 1 — 5 • Staff presentation. Commission asks clarifying questions. • Discuss advantages & disadvantages of each concept • Develop Commission-refined concept 4. Next Steps in Process—Items for consideration at January HRA meeting Requested Action Staff requests that Commission members take time to review the materials and concept options and be prepared to make any additions to the advantages and disadvantages of each concept. Following the discussion, staff will take the information back and formulate up to • two refined concepts for HRA consensus in January. • City of Elk -�-� River Preliminary Concept Summary Focus Area: Core Central Business District Secondary Areas: Western Transition Area (south Hwy 10 to river &west of Lowell) Northern Area (north Hwy 10 &railroad) Problem Statements: • Lacks investment focus • Lacks connection to the rest of the city • Fails to capitalize on the riverfront • Needs a transition role from retail core • Lack of parking—perceived or real • Lack of draw to the area, such as children's theater • Vehicle and pedestrian access • The affect of the future Highway 10 interregional corridor • Would like to see service oriented and some residential • If no action is taken, the change that will occur will be negative Goals: • Assure long term viability of downtown • Provide community focal point and connection to the rest of the community • Highlight riverfront location and maintain strong visual public access to the river • Replace market/economic obsolete buildings • Strengthen commercial climate • Maintain the traditional character of the downtown • Enhance the "pedestrian friendly" traditional character environment downtown • Recognize those buildings that have potential for revitalization Design Guideline Concepts: • Mixed use (retail/service/residential) • Consider historic context study • Strengthen connection to city—"cornerstone" orientation • Traditional downtown design • Brick, stucco, stone materials with visual breaks in the building design • Increased density 411 • Pedestrian orientation • Increase exposure to the riverfront Developed by HRA—Oct. 22,2001 EHLERS • iSS •_CIATES INC OTo: Catherine Mehelich, Director of Economic Development From: Jim Prosser,Financial Advisor W Subject: Core CBD Redevelopment Date: November 16,2001 As Elk River proceeds with redevelopment of the Core CBD area, it is important to consider development of implementation policies including the following: 1. Proposals for development of multiple areas within the project area should be solicited. Based on the proposals received the HRA may decide to authorize preliminary development agreements for a limited number of areas. It is likely that phased development will improve the overall results. 2. Consideration should be given to "preserving" some selected sites for later development. This will permit the market to appreciate the impact of first phase development and potentially enhance the City's ability to achieve redevelopment goals. • 3. Clear expectations regarding land acquisition should be established. Specifically,it is recommended that the developer will use best faith efforts to negotiate property acquisition. The HRA needs to be willing to use eminent domain if those efforts fail. The HRA may require the developer to utilize mediation prior to considering requests for eminent domain. 4. A strategy that encompasses efforts to influence the Highway 10 and related improvements is key to preserving and perhaps enhancing the ultimate Core CBD redevelopment. 5. Consideration should be given to proceeding with redevelopment RFPs prior to completion of the historical context study. The proposals will be useful in evaluating alternate approaches to preserving certain sites. Additionally,the proposals may identify preservation opportunity cost and benefits to assist in decision making. Actual development in areas containing historically significant properties could be delayed until the fmal report is evaluated. 6. The time frame for the current version of the concept refinement and redevelopment strategy should be expected to last no longer than five years. After that time changing market conditions and base conditions withing the area will change sufficiently to require concept and strategy adjustment and update. 7. It is important to forecast the time frame for redevelopment(based on the process outline previously provided). That time frame should reflect the reality that initial redevelopment is not likely to occur until mid to late 2003. Further redevelopment will occur in stages and be completed over a three to seven year period of time. • LCAbERS IN PU3LI - INAI\ %: ii ne d=ni-IR Bryn 5n ir7/rea9 NA Snlj71/� liaseviV V\I 551=3.1105 'im >ips.rc,cxn • Page 2 November 16,2001 8. It is likely that tax increment or other forms of assistance will be needed to make redevelopment financially feasible. It is advisable to begin now to assess the ability to qualify the area as a Redevelopment District and to explore other financial resources. 9. Continued attention to public dialog on the purpose,process and status of redevelopment efforts is key to maintaining public confidence in the project efforts. A key part of the communication is forecasting of time frame,upcoming decisions and opportunities for public involvement. 10. The City should carefully monitor potential property acquisition opportunities from willing sellers. This can help make the redevelopment more affordable due to reduced acquisition and relocation costs. This must be balanced against the holding, financing costs. 11. The Redevelopment Concepts currently being prepared should be considered a "framework" for developers in preparation of proposals and not blueprints for exactly what will be built. It is likely that the fmal redevelopment result will be quite different (and hopefully better) than initial Redevelopment Concept. • N:\Minnsota\Elk River\Riverfront\Strategies.11.15.01.wpd • s ikk River Redevelopment Concept Options Advantages/Disadvantages Worksheet Option A— Advantages Disadvantages * Maintains status quo * If no action is taken, change will be a continued decline Option B — Advantages Disadvantages * Improves traffic bottleneck at Main St. &Hwy 10 * Lose 12-15 surface parking spaces * Maintains existing structures * $$ for bridge * Creates full streetscape—Jackson Ave, strong gateway * Provides opportunity for community activity as a draw * Increases housing • * Hwy 10 gateway landscaped * Maintains connection to the river * Maintains existing retail/service business Option C — Advantages Disadvantages * Main St. on same trajectory *Lose Hwy 10 gateway landscaping * Hwy 10 lowered * Limited increase of housing * Dining and family center as draw *Lacks strong visual/physical access to river * Creates full streetscape—Jackson Ave, strong gateway Option D — Advantages Disadvantages * Revitalize core structures *Limited increase of housing * Infill development *Allows no left turn to Main St from CR42 *Adds retail/office * Doesn't develop strong gateway (Jackson) * Relieves congestion at CR42 &Main St * Lose Hwy 10 gateway landscaping * Better utilizes existing parking areas * Lacks strong draw to the downtown * Maintains connection to the river Option E — Advantages Disadvantages * Start with"clean-slate" for new development * $$ Costly * Disruptive *Lose existing traditional character • EHLERS s ASS 2CIA1ES INC 0 To: Catherine Mehelich,Director of Economic Development From: Jim Prosser,Financial Advisor W Subject: Concept Refinement Issues Date: November 20, 2001 After reflecting on the feedback we received from developers on November 2,the following suggestions are provided regarding the Concept Refinement and redevelopment process: Redevelopment Strategies 1. Reaffirm the primary goal of redeveloping the area as a"Cornerstone" or Town Center development with a focus on establishing the area as a"reflection"of a historical downtown area with retail components. 2. Increase housing density to support improved,but limited,retail climate. • 3. Identify three or four target redevelopment site for initial RFPs. These areas would include sites that are adjacent to the river, suitable for housing development and could be assembled for reasonable costs. 4. Consider including a Banquet Hall (possibly City/HRA owned)as part of redevelopment plan. The City has identified a desire for a full service restaurant within this area,however the site will be difficult to market for this use. Including a Banquet Hall,which could be combined with a restaurant, owned by the City and operated by contract,may improve the possibility of achieving your objective. Ideally,the Banquet Hall could be located adjacent to public parking and have river views. 5. Discuss the potential to relocate the First National Bank and Funeral Home sites adjacent to the river in order to create a larger redevelopment area and better utilize limited Riverfront area. 6. Develop a model for facade restoration for selected buildings within the project area. Provide financial tools to assist with funding. 7. Target at least three separate housing markets for new development with the area including; senior co-op rental, senior market rate rental,owner and rental town homes and luxury apartments,market rentals. 8. Focus on Jackson as the"gateway"into the area from Highway 10 with clear venues into the River area. 4111 LCAGCRS IN PU3LIC WANG = v'11`. Bred F.1-fel/ALM "NA I.aSeviIc V V 551-311J5 3 ,.corn 0 Page 2 November 20,2001 9. Consider design guidelines that support the traditional downtown type of design for retail with a complimentary,yet distinctive, form for residential development. 10. Strengthen the Highway 10 gateway(one block on either side of Jackson)by including a lineal design element into the area such as a combination of landscaping, smaller distinctive monuments, lighting and decorative fencing. 11. Incorporate a River trail system into plan. 12. Forecast the need for a Special Service area tax to support cost to develop and maintain some features in design(including facade restorations). 13. Consider acquiring or obtaining options on property which could be developed,without assistance, in a incompatible manner to plan. 14. Phase redevelopment of the parking area on Jackson after residential redevelopment. 15. 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