7.3. SR 07-29-2002City
MEMORANDUM
Item ~ 7.3.
TO:
FROM:
DATE:
SUBJECT:
Housing & Redevelopment Authority
Mayor & City Council
Catherine Mehelich, Director of Economic DevelopmenyX
July 29, 2002
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
6:15 - 7:00
7:15 - 8:00
TOLD Development Company
Best & Hempel
MetroPlains Development
Format
Each interview has been scheduled for up to 45-rninutes. 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 sire(s) and proposed project(s)
· How does the proposal meet the outlined Goal and Objections of the Revitalization
Project
Downtown Revitalization Project
Developer Interviews
July 29, 2002
Page 2 of 2
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 memloers. ~tat~t~ suggests that each I4P,_A 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.
Downtown Revitalization Project
Developer Evaluation Criteria
1.0 Experience
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Previous redevelopment experience, including experience developing similar project
(especially neighborhood office and retail).
Previous experience incorporating existing local businesses into redevelopment
project.
IG2owledge and experience with market segments relevant to this project (retail,
office and housing).
Demonstrated ability to move from concept stage to construction completion within
a reasonable time frame.
Kmowledge of development process including land use, utilities, roadways, wetlands,
environmental and other regulatory permitting and review processes.
Demonstrated ability to "parmer" with other firms for project design and
development.
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
2.2
2.3
Financial capability, including ability to secure project financing, secure construction
bonds and finance pre-development activities.
Financial planning capacity including ability to prepare project pro-formas and
fmancing plans.
Ability to demonstrate initial project financial feasibility.
3.0 Design
3.1
3.2
3.3
3.4
Design capacity as evidenced by similar projects that have been completed.
Design flexibility as evidenced by ability to adapt designs to meet local design
criteria.
Consistency of design elements with established design framework
Creativity as demonstrated by design approaches used to address special
development challenges.
S :X~Downtown Revitalization~Proposal Review~Developer and Project Evaluation CriteriaER.doc
Downtown Revitalization Project
Developer Interview Questions
July 29, 2002
Describe your redevelopment experience in developing projects similar to Elk River's
traditional downtown.
What steps would you take to develop public support for your proposed development?
10.
11.
Describe your previous experience incorporating existing local businesses into a
redevelopment project.
Describe what efforts will be made to maintain the traditional design of the Elk River
downtown.
What are the major challenges to accomplishing the development program you have
proposed?
Describe your approach to move from the concept stage to construction completion within
a reasonable time frame. What is your expected time frame?
Identify the expected level of public improvements required to accommodate your
development.
Identify the process you will use to assure that the proposed deyelopment is market and
financially feasible.
Describe the variety of means that your fzrm would consider closing any gaps in project
financing, including but not limited to funding sources.
Identify any additional development sites you would consider as an alternative to your initial
proposal, or for future phases.
Describe your plan of action if you hit a roadblock during the project process e.g. site
constraints, funding, public support.
S:~Downtown Revitalization~Proposai Review\Developer questionaireElk ILiver.doc
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. Investament in the downtown has stagnated and area businesses and
residents alike are concerned about the need to revitahze 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 cormnunity vital and flourishing.
Primary Goal: To assure the long-term viability of downto~vn by making a connection to the rest of the
community and by utiliTing 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)
Downtown Revitalization Project
Redevelopment Process
The phases of Redevelopment Process include:
Phase I - Need Identification
The HRA has identified the Core Central Business Dist_dct 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 III - 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 redevelopn'fent 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 ¥ - 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 ¥1 - Construction
All development agreements are final, acquisition has begun and even some initial demolition of e,,dstmg
properties has occurred.
Downtown Revitalization P~oject
Developer Interviews- Evaluation Score Sheet
Developer: TOLD Development Company
'nterview Schedule: 5:15 - 6:00 PM
Person Evaluating:
Project Description: Plan A: 110 Un/ts of Market Rate Apartments & 4,000 sq/ft Retail
Location: Lowell Ave to ICing Ave., South Main Street to River
Plan B: 64 Un/ts 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 ILmited experience with desired capacity.
2 Limited understanding of issue. No relevant experience with desired capaciW.
3 General understanding of issue. Limited or non-specific examples of desired capacity.
4 Clear.lmgwledge of issue. S. pecific and relevant examples of desired capaci~.
Criteria Comments Score
Previous related experience
Experience with local
businesses
Knowledge of market
Project planning capability
Knowledge of development
process
DO~TO~ ~VITALIZATION PRO.CT PROPOSAL C~L
ELK ~R ~OTA NOT TO SC~K
Downtown Revitalization Project
Developer Interviews- Evaluation Score Sheet
Developer: Best & Hempel
Tnterview Schedule: 6:15 -7:00 PM
Person Evaluating:.
Project Description:
78 umts of Market Rate Apartments
4,825 sq/ft Retail
6,375 sq/ft Restaurant
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 desked capacity.
3 General understanding of issue. Limited or non-specific examples of desh'ed capacity.
4 Clear knowledge of issue. Specific and relevant examples of desk'ed capacity.
Criteria Comments Score
Previous related expehence
Experience with local
businesses
IG~owledge of market
Project plamfing capability
Knowledge of development
process
Partnem~g experience
~ ~ / ~~~' .... ..-::-.:.: ...... ~~ u ~~ ~,~ ~. ~~ i
~ ~ ~ /~~/~ / ~~ "":~.'~}'~' ~~ 3~ST~ . ~ ~ ~
BEST & HE~EL
DO~TO~ ~VITALIZATION PRO.CT PROPOSAL C~L
~ve~ ELK ~R MI~OTA NOT TO
Downtown Revitalization Project
Developer Interviews - Evaluation Score Sheet
Developer: MetroPlains Development
Tnterview Schedule: 7:15 - 8:00 PM
Person Evaluating:
Project Description: Plan A: 80 Umts of Market Rate Aparunents & 8,000 sq/ft Retail
Location: Nadeau's to Nextel Commumcations Building
Plan B: 96 Units of Market Rate Apartments & 10,450 sq/ft Retail
Location: East IGng Ave and NE corner of IGng & Main
Rating Guidelines
Score 'Description
0 Non responsive to issue
I Vague understanding of issue. No or limited experience with desired capacity.
2 Limited understanding o£issue. No relevant experience with desked capacity.
3 General understanding of issue. ]Limited or non-specific examples of desked capacity.
4 Clear knowledge of issue. Specific and relevant examples of desked capacity.
Criteria Comments Score
Previous related expehence
Experience with local
businesses
Kaaowledge of market
Project plannh~g capability
IG~owledge of development
process
METROPLA~S
DO~TO~ ~VITALIZATION PRO.CT PR OPOSAL CML
ELK ~R ~OTA NOT TO