3. HRSR 11-06-2017 .-.' ..,
h1 ......, Request for Action
River
To Item Number
Housing and Redevelopment Authority 3
Agenda Section Meeting Date Prepared by
Special Meeting November 6,2017 Amanda Othoudt, EDD
Item Description Reviewed by
Trunk Highway 10 and Main Street Redevelopment Cal Portner,City Administrator
Plan Reviewed by
Action Requested
Hear presentation for Trunk Highway 10 and Main Street Redevelopment project.
Background/Discussion
The City Council discussed the Independent School District property at their July 3,2017,work session,
and subsequently the HRA and the EDA to discuss potential uses,impacts to downtown businesses and
traffic,possible opportunities and/or identify possible longer-term goals for the area.
The district received two offers on the building. Both offers fell through and the building went back on
the market for sale.
Earlier this month, staff attended the Minnesota Commercial Association of Real Estate Expo and
presented the opportunity to redevelop this site to developers and general contractors who showed an
interest in a large scale project. Staff met with all property owners within the proposed 3.21 acre project
area to discuss long-term goals for the area and a potential to redevelop downtown Elk River.
Staff has developed a Request for Proposal for a high density,mixed use,market rate residential
development that would attract specific groups such as artists or entrepreneurs.The project would
include an Innovation Center or Collaborative Workspace designed for the needs of growing small
businesses and entrepreneurs in partnership with the Central MN Jobs and Training Center and the Small
Business Development Center.
Structured above and below ground parking will address the increased parking demands resulting from
the development as well as maintaining all existing parking downtown. High quality public or quasi-
public greenspace would also be incorporated into the development at ground level or on the rooftop.
Preference will be given to projects that incorporate LEED Certification into their proposal.The project
would be broken out into two separate phases to accommodate the long term plans for Elk River Meats.
All property owners are supportive of the proposed redevelopment project.
Financial Impact
The land acquisition and assembly costs associated with the purchase of the ISD #728 property,First
National Bank property and the Elk River Meats could be funded by the City Development Fund.The
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional rER Ea 1 rservice, and communityengagement that encourages and inrpirer prnnrperity ATU��
intent would be to acquire and assemble the properties for private sale to include any carrying costs.
However,the city reserves the right if needed to consider any financing tools to close potential financing
gaps.
Attachments
■ Project Area Map
■ Request for Proposals
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Highway 10 and Main Street Redevelopment Project.docx
City of
Elk -�-�
River
Request for Proposals
Trunk Highway 10 & Main Street
Redevelopment
Contract Administration
All persons or firms who download this Request for Proposal (RFP) are requested to register their
name and email address by sending an email to Amanda Othoudt,Economic Development Director
at aothoudt@elkrivermn.gov. Any revisions or corrections on this RFP,after it has been advertised,
will be communicated to those registered. Failure to register is at your own risk. A proposal will not
be considered if it fails to include all requested information as detailed in this original RFP and any
subsequent modifications.
Acceptance of Proposal Contents
The contents of this RFP will be included as part of the contractual obligations if a contract ensues.
All information in the proposal is subject to disclosure under the provisions of Minnesota Statutes
Chapter 13—Minnesota Government Data Practices Act.
Introduction and Site Description
The City of Elk River Housing and Redevelopment Authority (HRA) is seeking development
proposals for a 3.21-acre site located between Lowell Avenue NW on the West and bounded by
Trunk Highway 10 to the North,Jackson Avenue to the East and Main Street to the South. Trunk
Highway 10 has over 31,000 vehicles per day (VPD),Jackson contributes to 5,600 VPD,and Main
Street 6,900 VPD. See Area Map in Exhibit A for an aerial perspective.
The HRA will consider gap financing tools as available.Any financing provided will be available for
extraordinary development costs associated with redevelopment of the project site.
The project consists of 17 contiguous parcels owned by the following entities: City of Elk River,Elk
River Municipal Utilities,Elk River ISD #728,First National Bank of Elk River,and Elk River Meats.
The city anticipates assembling and acquiring properties for private sale.The total project area is
broken out by the following ownership groups:
■ Parcel No. 75-405-0190;75-405-0180;75-405-0120;75-405-0170.The Elk River School
District purchased four contiguous parcels in 1997 for use as their district office. The
building is currently vacant and consists of 14,190 square feet of office situated on four
separate parcels totaling 1.19 acres and is currently marketed for sale at$899,900.
Request for Proposals
2017 Downtown Redevelopment Project Page 2 of 7
• Parcel No. 75-405-0210; 75-405-0360; 75-405-0350; 75-405-0240;75-405-0205; 75-405-0275.
The City of Elk River owns six parcels consisting of 0.92 acres of surface parking, and 0.47
acres of Right-of-Way for a total of 1.39 acres.
• Parcel No. 75-405-0230;75-405-0235. The City of Elk River HRA owns two parcels
consisting of 0.25 acres of surface parking.
• Parcel No. 75-405-0280. Elk River Municipal Utilities owns 0.08 acres of surface parking lot.
• Parcel No. 75-405-0220;75-405-0215. First National Bank of Elk River owns 0.21 acres of
surface parking.
• Parcel No. 75-405-0230. Elk River Meat Market owns 0.09 acres consisting of 3,255 square
feet retail building built in 1900 currently in operation.
Downtown Elk River is surrounded by a vibrant,busy Main Street,mixed use,market rate residential
condos, affordable residential dwellings,and a robust retail and service district consisting of dining
establishments,boutiques, salons, financial services,and River's Edge Commons City Park.
The Farmers Market operates on Thursdays from June-October on the HRA-owned surface parking
lot and is planned to relocate in 2018. Rivers Edge Park hosts free summer concerts on Thursdays
from mid-June through August and attracts approximately 1,200 -2,000 visitors.
Adjacent to the proposed redevelopment project, Granite Shores Apartments was built in 2005 and
frequently boasts a waiting list. Rents range from$1,229 per month for a 1 BR/1 BA, 737 sf luxury
apartment to $1,849 per month for a 2BR/1.5BA 1,301 sf luxury apartment.
To the East of the proposed project is Jackson Place Apartments, a workforce housing development
built in 2007 with of 32 affordable units consisting of 16 one bedroom and 16 two bedroom units
located on the second and third floors. The property also features 12,855 sf of at-grade Office/Retail
space and 20,680 sf of underground parking.
Finally, the site will afford upper level units with commanding views of the Mississippi River as it
bends and flows south towards Anoka County.
These features, combined with the relatively large size of the site and its location in the urban core,
make this redevelopment project an excellent fit for a high-quality, high-density market rate,mixed use
residential development.
A response to this RFP will require significant time and a strong financial commitment.
Relevant City Plans
The city updated their Comprehensive Plan in 2014 and completed the Mississippi Connections plan
in 2010, focusing on the historic core of Elk River. These plans, along with the city's zoning code,
support a variety of development goals for the area, including zero lot line setbacks and unique
parking requirements.
Project Overview
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RFP For High Density-Mixed Use Residential Downtown ER v3(Cal Zack Mikaela and Jenny B Reviewed).doc
Request for Proposals
2017 Downtown Redevelopment Project Page 3 of 7
The City of Elk River,in collaboration with the above entities seeks to achieve the following
objectives for the proposed development site:
• Development consistent with the approved land use guidance included in the
Comprehensive Plan and the Mississippi Connections Plan.
• High density,mixed use,market rate residential development as the most predominant land
use. The proposed development shall also target a specific group such as artists or
entrepreneurs.
• The inclusion of an Innovation Center or Collaborative Workspace designed for the needs
of growing small businesses and entrepreneurs complete with an executive conference room.
• Pedestrian oriented retail and service use space on ground level adjacent to fronting Main
Street.
• Structured above and below ground parking to address the increased parking needs resulting
from the development.The parking areas used for development must be accounted for
within the new development.
• Innovative shared parking facilities/arrangements within and/or beyond the boundaries of
the development site.
• High-quality,public or quasi-public greenspace at ground level or on the rooftop.
• Work with existing businesses on possible relocation options, to include multiple phasing of
the project to accommodate relocation if needed
• Pedestrian corridor improving access to the core downtown area from Highway 10.
• An enhanced pedestrian environment along Main Street corridor.
• Innovative project elements that enhance the long-term environmental sustainability of the
development. Applicants are encouraged to propose LEED Certified Building Concepts.
• Indoor family-friendly amenities such as a pool, or playground,and multi-bedroom units.
Environmental
Specific testing will be needed when development plans are formulated.
Eligible applicants
Applicants may be either for-profit or non-profit developers and may include a partnership of both.
Applicants must have a proven record of delivering projects and at least 10 years of professional
experience, demonstrated success in managing redevelopment projects,demonstrated ability to
collaborate and partner with local stakeholders, and the ability to obtain sufficient financing.
The selected developer should have a history and reputation for developing well designed,well
managed, safe,market rate rental and ownership.
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Request for Proposals
2017 Downtown Redevelopment Project Page 4 of 7
Selection Criteria
• Quality and completeness of proposal.
• Demonstrated capability to implement the proposed development plan.
• Financial considerations. Proposals should include a proposed purchase price for the site,
noted as a cost per square foot.
• The extent to which the proposed development meets the goals of approved plans and the
development objectives outlined in this document,including consideration of land use,
housing mix, development intensity,the pedestrian environment,public spaces and other
site amenities,parking facilities and management.
• Quality of the strategies proposed to mitigate traffic congestion and parking demand
associated with site build-out.
• The extent to which the project maximizes development intensity and increases tax base.
• Demonstrated success in re development projects in a timely manner.
• Demonstrated understanding and ability to resolve extraordinary site conditions.
• Commitment and history of working with a local community around development matters
including examples of meeting and/or exceeding performance goals.
• Preference will be afforded to proposals that utilize the entire site and employ innovated
shared parking strategies with nearby land uses.
• Preference will be given to any LEED-Certified project proposals.
Review/Selection Process
Potential development proposals received by the due date will be reviewed by a team of city staff,who
will determine a list of finalist based on the above selection criteria.
Following review of the proposals, only selected finalists will be asked to make oral presentations of
their proposals to the HRA and the City Council. Upon conclusion of the presentations, staff and the
City Council will select a proposal to negotiate a contract as follows:
1. If for any reason a firm is not able to commence the services in that firm's proposal within
30 days of the award, the city reserves the right to contract with another qualified firm.
2. The city shall not be liable for any expenses incurred by the developer prior to the signing of
a contract including,but not limited to, the proposal preparation,attendance at interviews,
legal fees or final contract negotiations.
3. The proposal must be signed in ink by an official authorized to bind the developer to its
provisions that will be included as part of an eventual contract. The proposal must include a
statement as to the period during which the proposal remains valid. This period must be at
least 120 days from the date of the submittal.
4. The city reserves the right to reject any and all proposals submittals or to request additional
information from any or all of the proposing firms.
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Request for Proposals
2017 Downtown Redevelopment Project Page 5 of 7
Proposal Contents
1. The submittal should follow the Table of Contents listed below:
• Letter of Interest
• General Information
• Ability to Meet Project Goals
• Project Approach to Development Issues
• Proposed Timeline and Narrative Description
• Detailed Narrative on Housing/Retail Mix
• Developer's Proforma
• Proposed Purchase Price
• Project Team Roles and Relevant Experience
2. Letter of Interest
Brief narrative to include a signature of authorized corporate officer for each entity
proposing as a partnership or team.
3. General Information
• A brief history of the firm and key sub consultants,if proposed for the project.
• Developer's current legal status: corporation,partnership, sole proprietor, etc.
• Federal ID number
• State ID number
• Contact person's name,title, address,phone number, fax number and email address.
4. Ability to Meet Project Goals
• Compatibility with relevant city plans and other project goals.
• Define how project positively impacts the city.
5. Project Approach to Development issues
• Mixed-use development
• Opportunities for community engagement
• Collaboration with public and private partners
• Connectivity
• Higher density
• Approach to geo-technical and environmental issues
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Request for Proposals
2017 Downtown Redevelopment Project Page 6 of 7
• Public/private parking strategies and open space enhancements
• Incorporation of sustainable design and development
6. Proposed Timeline and Narrative Description
Include a listing of key tasks within each phase,key milestones and approximate dates,and
deliverables. Include a narrative description,conceptual site plan of the proposed
development and identify any phased developments.
7. Detailed Narrative on Housing/Retail Mix
Include bedroom compositions,rents and/or sales price,if retail is proposed,information
about the anticipated tenants,preliminary site plan and building elevations for proposed
development including time needed to obtain financing, secure permits, complete designs,
take ownership of the property,relocate city services if necessary,begin and complete
construction and lease up or sell of units.
8. Developer's Proforma
Include 5-year projections, conceptual sources and uses, financial analysis, and assumptions.
9. Proposed Purchase Price
Indicate the purchase price by the cost per square foot to include demolition.
10. Project Team Roles and Relevant Experience.
• Identify the key project team members and describe their specific roles on the
project. Include key team members from sub-consultant firms if any.
• Describe relevant experience and provide information on at least three (3) reference
projects completed in the last five (5) years. Provide personal references and contact
information.
• Include one-page resumes only for key members of the project team,including field
personnel.
• Include specific descriptions of proposed team members'roles on reference projects.
Proposal Submission
Proposals shall be delivered to the city on or before 4:00 p.m., February 1, 2018. Requests for
additional information required for the preparation of the proposal should be directed via email to
Amanda Othoudt,Economic Development Director at aothoudt@elkrivermn.gov. All questions
must be received before 4:00 p.m.,January 26, 2018. No responses will be provided for questions
received after the deadline. Proposals received after the deadline will not be accepted. Failure to
supply the requested information may result in rejection of your proposal.
Amanda Othoudt, Economic Development Director
City of Elk River HRA
13065 Orono Parkway
Elk River,MN 55330
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RFP For High Density-Mixed Use Residential Downtown ER v3(Cal Zack Mikaela and Jenny B Reviewed).doc
Request for Proposals
2017 Downtown Redevelopment Project Page 7 of 7
Please provide seven (7)paper and one electronic (pdf) copies of the Proposal for the evaluation
process.
Timing
Following is a tentative timeline:
Publish RFP November 7,2017
Pre-proposal meeting December 11,2018
Proposal deadline February 1,2018
Review/evaluation of proposals February 2018
HRA Recommendation to City Council March 2018
City Council Awards Project March 2018
Attachments
• Respondents to this request for proposals are encouraged to review all of the following
documents in detail. Please see the RFP website for links to these documents
■ 2017 Location Map
• KW Commercial Sell Sheet
• City Comprehensive Plan: (http://www.elkrivermn.gov/DocumentCenter/View/1522)
■ Mississippi Connections Plan: (http://www.elkrivermn.gov/DocumentCenter/View/388)
• Downtown District—Code&Regulations:
(https: /library.municode.com/mn/elk river/codes/code of ordinances?nodeId=COOR
CH3OLADERE ARTVIZO DIV7COBUDI SDIINGE S30-1026DDDODI)
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RFP For High Density-Mixed Use Residential Downtown ER v3(Cal Zack Mikaela and Jenny B Reviewed).doc