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5.4. SR 01-27-2003Kiver MEMORANDUM Item 5.4. TO: FROM: DATE: Mayor and City Council Pat Klaers, City Administrato~ January 27, 2003 SUBJECT: Update on Energy City Grant Application for Planning Activity Associated with an East Elk River Development Project Attached for your information is a grant application that has been submitted to the state by Energy City. The City of Elk River is a key partner in the Energy City program, and Stephen Rohlf, Building and Zoning Administrator, is the contact person for this grant application. The application is for state money for planning and design work on a proposed mixed housing, commercial, and institutional (elementary school) development project. This development proposal site is in the east Elk River area. The city is not directly involved in this grant request. If the project moves forward, the city will have the responsibility of reviewing this private development proposal. The grant application indicates an anticipated starting date of this winter/spring 2003 for the planning and design phases of the project. Mayor Klinzing has been involved in the discussions regarding this project. Either the Mayor or Steve Rohlf should be able to provide an update on the status of the development proposal or answer questions regarding this grant application. FY 2002-03 OPEN GRANT ROUND Part One' Pre-proposal Application Form Applicant Organization/applicant: Energy City c/o City of Elk River Mailing address: PO Box 490 1306¢ Oron0 Parkway NW City: Elk River State: MN Zip code: 55330 Web site: www.eIkriverenergycity.org Contact name: Stephen Rohlf Title: Building and Zoning Administrator E-mail: srohlf@ci.elk-river.mn.us Telephone: (763) 441-4904 Fax: (763) 441-7425 Project Project title: Currently unnamed Anticipated project start date: Winter/spring 2003 - planning and design phases - portions in grant request Project description (One paragraph or less): The proposal is to plan, design, construct, and showcase a neighborhood consisting of 800 units of mixed housing as well as commercial and institutional uses. Planning efforts will attempt to balance environmental, economic, and social values and apply the concepts of sustainable design, smart ~owth, and green buildings. Expenses The applicant and/or project partners must provide matching funds--at minimum, a dollar-for-dollar match. The match may be in the form of in-kind services or cash. Maximum OEA grant is $75,000. See the RFP for more detail on eligible expenses and matching funds. Sample expenses: · Labor, including salaries and wages by individual position. List number of hours and hourly wage. · Printing and copying · Project supplies · Travel costs (max. $ 0.365/mile) Expense OEA Grant Match Source Secured? Project Coordinator for planning and $ 75,000 $ [] :lesign phases Plat design expertise $ $ 35,000 Greater MN Housing Fund ($20,000) [] mid Dynamics Design & Land Co. ($~ 5,000) Construction desigm expertise $ $15,000 Christian Builders [] Technical Support $ $15,000 Participating Energy City members [] Staff support $ $ 5,000 Cib' of Elk River [] Printing. Publishing & Postage $ $ 3,000 Energy City Solid waste strategies and implementation $ $20,000 Landfill abatement funds - City of E. R. [] Totals $ 75,000 $ 93,000 The Project The proposal is to comprehensively plan, design and build a model project applying the principals of smart growth, sustainable design and green buildings. Elk River is in an excellent position for such a project being near the metropolitan area and located at the junction of two major road corridors (US Trunk Highways 10 & 169/101). In addition, the city is suffering from a rapid escalation of housing cost due to a rampant rise in land prices and is experiencing the negative effects of urban sprawl. We feel our project fits OEA's Goal #4 - Priority Project #1- Open Grant Round. Specifically, the project will consist of approximately 800 units of mixed housing, commercial and institutional uses on 213 acres where environmental, social and economic issues are coordinated on the front end. Normally, no one entity considers all three of these issues when making their decisions, which will make our project unique. Thus far, the project team consists of the Greater Minnesota Housing Fund, Christian Builders, Dy. namics Desig~n & Land Co., Energy City and a group of local civic and religious leader. The hope is to also partner with local lending institutions, Sherbume County Habitat for Humanity and the Elk River Area School District. The Greater Minnesota Housing Fund and Energy City will be showcasing the project. A project of this magnitude that can easily be accessed from the metro area will serve as an excellent model for other communities. One of the emphases of this project is housing that is not only affordable to buy, but also to maintain. In addition to new and innovative tectmiques, successful strategies used in similar projects will be incorporated into the design of this one. The concept behind this neighborhood will be sustainable and other communities should benefit from the lessons learned. Request The request is for a grant of $75,000. Designing and pla~ming a project of this magnitude will take a great deal of coordination, which is hard to accomplish with volunteer efforts. Specifically, a project coordinator with an environmental engineering back~ound will be hired using these funds. Some in-kind services will be used to match these funds (the plat design expertise of the Greater Minnesota Housing Fund and Dynamic Design & Land Co., with technical assistance from Cermak Rhoades Architects; the construction expertise of Christian Builders; teclmical energy expertise of Energy City members and staff coordination from the City of Elk River). Other matching monies will be requested from the City of Elk River's landfill abatement fund for those components that deal with solid waste issues. None of the OEA grant money will be used for the construction of this project. The project will begin as soon as funds are available to hire a project coordinator and will be finished prior to acquiring the necessary permits and the actual construction. About the Partners Energy City, the only program of its kind in the state, it is a partnership between the City of Elk River and Energy Alley. Others involved in Energy City include: Sherburne County, a wide range of Minnesota energy companies including Elk River Municipal Utilities, environmental groups, the Elk River Area School District and the Minnesota Department of Commerce. Energy Alley's/Energy City's Mission Statement is: "Advance Milmesota's energy efficient and renewable energy industry to benefit our economy and environment." Energy City was created to act as a geographical focal point for demonstrating energy efficient and renewable energy products, technologies and services. Notable Energy City demonstrations include a large wind generator, a refuse derived fuel plant and power station and a landfill gas to electricity plant, which has tripled in production since it was named the US Environmental Protection Agency's project of the year in 1998. Greater Minnesota Housing Fund, provides financial and technical assistance statewide to projects focusing on affordable single family and multifamily housing. Christian Builders, local builder who accounts for approximately 150 homes per year in this area. They have demonstrated that they are willing and capable of innovative construction to deal with environmental issues. The construction of Energy City's "Energy House 1", which was coordinated by Brad Richardson of Christian Builders, received the National Association of Home Builders Research Center's "Gold Winner Energy Value Award" in 1998. Dynamics Design & Land Co., long time local developers who have demonstrated vision and a feet for the land in their designs of the numerous projects they have completed in this area. They have pioneered innovations for this area such as cluster developments with community septic systems and wells. Local Civic Leaders - A group of community and religious leaders concerned with the rising cost of housing in the Elk River area and its effects on the elderly, new families and economically challenged. City of Elk River - Because of its obligations regarding approvals for the project, the City of Elk River will not be directly involved. However, the City of Elk River is one of the founding members of Energy City and is very active in its efforts. In addition, city landfill abatement funds will likely be used for thos~ portions of this project that involve solid waste issues and city staffwill be used to help coordinate various aspects. Elk River Area School District - The project partners have been working with the Elk River Area School District (ISD #728) regarding a demonstration school in the neighborhood. ISD #728 has been selected as the pilot district for the Mirmesota Sustainable Schools Project and has already demonstrated considerable expertise in sustainable design in their recent projects. Local Lending Institutions - Local banks will be brought into the project early on regarding energy efficient mortgages, etc. Environmental Issues Energy Saving and Clean Energy Issues - In regards to land use planning, energy issues are seldom given consideration. This is a major omission, since every aspect of life has an energy component a. nd the production and consumption of energy is the number one source of manmade poIlul)on worldwide. Examples of energy related innovative techniques and products tha, will be considered in the project include: pedestrian oriented design (neighborhood commercial, elementary SChool, and churches; virtual commuting; office condominiums; etc.), buying energy efficient appliances in bulk to reduce costs, innovative street and house design to reduce hard surfacing, house orientation to take advantage of passive solar energy, multi-lot use of geothermal energy, photovoltaic street lights, L.E.D. stop lights, neighborhood ride share, required off-peak energy appliances and Energy Star rated home construction. Some examples of other environmental issues that will be considered include: green building design, use of recycled construction materials, reuse of storm run-off for watering, non-point pollution control, organize refuse and recycling service that includes organic curbside collection pilot program, and mandatory construction debris recycling. Economic Issues Like many fast growing communities near the metropolitan area, land prices in Elk River are rapidly escalating. The average cost for a lot with urban services in Elk River is approximately $70,000, which is roughly a 100% increase in the last five years. This has put home ownership out of the reach of many. The plat will contain design features that lower the cost of lots. In addition, the plan will focus on housing that is not only affordable to purchase, but also to maintain. Further, great savings in transportation cost can be realized by providing affordable housing in close proximity to where people work, shop and recreate. The project site is also within easy access of MnDOT's commuter bus service and the proposed North Star Corridor commuter rail station in Elk River, which will further reduce transportation cost in the future. Social Issues The neighborhood will be a mix of residential housing (senior housing, single family homes, townhouses and apartments), commercial uses and institutional uses. The project will attempt to create a secure positive environment for all age groups (life. cycle housing) by providing ample green space and recreational opportunities within the neighborhood. The pedestrian oriented layout of the project will help to instill sense of community and knowing your neighbor. Basic shopping needs and work opportunities will also be accommodated in the neighborhood without the need to drive. Summary Benefits - The project is being proposed in a rapidly growing community that is easily accessible from the Twin Cities and it is of a magnitude that will make it extremely useful as a demonstration to other communities of the following: the concepts of smart growth, sustainable design and green buildings, that affordable housing does not preclude sound environmental or socially friendly choices, the economic viability of energy efficient and renewable energy technologies, products & services, and the potential in private and public entities collaborating to achieve a goal. Measurement of success - Besides specific statistical data such as energy savings and housing costs, the true measurement of the success of this project will be its concepts repeated in other communities. With the expertise of the project's partners and both the Greater Minnesota' Housing Fund and Energy City showcasing it, the use of the model in other cormnunities seems almost a certainty.