7.2. HRSR 03-07-2022 �J
etyof
ElkRequest for Action
River
To Item Number
Housing and Redevelopment Authoritv 7.2
Agenda Section Meeting Date Prepared by
General Business March 7, 2022 Brent O'Neil, Economic Development Director
Item Description Reviewed by
Main and Gates Redevelopment Update Cal Portner, City Administrator
Reviewed by
Action Requested
Item presented for information and discussion.
Background/Discussion
Proposers of the Main and Gates development requested to present their project to the City Council on
February 22, 2022. The Council shared feedback which included favorable comments on the building
materials and density. The Council expressed an interest in maximizing the commercial and retail space as
much as possible and echoed the concerns of the Planning Commission regarding sufficient parking is
provided on site.
The proposers also discussed the working project budget estimate of$14.3 million and a forthcoming
request to seek Tax Increment Financing for the project. The Council suggested the proposers continue
to work with the HRA on refining the project and to consider ways to minimize requests for tax
incentives.
As acquisition of the property from the HRA is a critical factor in the overall project and budget, staff
anticipates going into closed session following the regular HRA meeting to discuss real estate aspects of
the project.
Financial Impact
N/A
Mission/Policy/Goal
The goal of the HRA is to promote certain housing and redevelopment projects.
Attachments
■ Updated Project Packet and Renderings
The Elk River Vision
A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r
service, and community engagement that encourages and inspires prosperity ,g /` UR
Main & Gates Redevelopment Project
v.February 22, 2022
Submitted by: 4125 Sub S. Corp Team
4125 Sub S.
Project Concept Highlights
Main & Gates Project Overview
Lot Area (Acreage)1.73
Proposed Units 55 Units/Acre 32
Zoning C2 (office)Proposed Zoning PUD
Gross Sq. Ft.95,350 Commerical Sq. Ft.3,967
# of Stories 4 Bldg. Height 48'8" high parapet
45'8" low parapet
Setbacks Parking Stalls 119 total
Front - Main Ave.10'Underground 51
Side - Gates 5'Surface 68
Sides 15'Stalls/unit 2.16
Unit Mix (subject to change)Est. Project Cost $14,300,000
1BR 9
1BR + Den 4 Est. Ann. Property Taxes $137,500
2BR 20
3 BR 22
4125 Sub S.
Parking
Zoning Code:
•MF: 2.5 stalls/unit (1 enclosed) = 137.5 stalls
•Commercial: 1/200 sq. ft.= 20 stalls
Proposed:
•Underground: 51 stalls
•Surface: 66 stalls
•On-Street Parking (3rd St. NW)
•Bicycle parking
157.5 stalls | 2.86/unit
116 stalls | 2.11/unit
Transportation Preferences Shifting….
•Many cities revising parking min.
•Ride-sharing services (Uber, Lyft, etc.)
•Self-driving cars (future)
Main & Gates
•Streetscape Design | Infill Project
•Proximity to downtown, walkability
•Parking impacts housing affordability
4125 Sub S.
Proposed Site Layout
1st Floor 2nd to 4th Floor
4125 Sub S.
Project Elevations
4125 Sub S.
Project Elevations
4125 Sub S.
Project Elevations
4125 Sub S.
Project Renderings
4125 Sub S.
Project Renderings
4125 Sub S.
Project Renderings
4125 Sub S.
Project Renderings
4125 Sub S.
Market Fundamentals
E.R. Rental Market Summary:
•Pct. Renters: 23% (1,900 units)
•40% of rental units in 1-unit structures
•Few MF units delivered past decade
•Avg. Rent: $1,136 |$1.27 PSF
•Vacancy Rate: 2.0%
•Demand (2030): 288 MR units
Granite Shores
4125 Sub S.
Market Trends: Rent Comparison to Metro Area
$1,136$1,344$702$1,047$1,008$1,203$1,243$1,502$1,188$1,8992.0%
5.8%
2.8%
6.1%
1.0%
6.1%
2.5%
5.4%
0.0%
4.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Elk River Metro Elk River Metro Elk River Metro Elk River Metro Elk River Metro
Total Studio 1BR 2BR 3BR Vacancy RateAvg. RentRental Market Trends Comparison, Q4 2021
Rent Vac. Rate