6. HRSR 01-03-2005ITEM # 6.
City of
El:
ver
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development~~j~?
DATE: January 3, 2005
SUBJECT: Downtown Revitalization Project Update
Attachment
Downtown Revitalization Project Q&A Newsletter, January 2005.
Memo from Assistant Director Ms. Steinmetz re: Parking Lot Taskforce
MetroPlains Construction Staging Plan
Background
At its December 2004 meetings the HRA and City Council approved the final development
agreement with MetroPlains Development for the Downtown Revitalization Project. The
amendments directed by the HRA have been included in the final agreement. The
agreement has recently been executed by the city and developer. MetroPlains continues to
make progress on finalizing a purchase agreement with the final two Bluff Block properties.
Current Activities
Communications
The attached Q&A Newsletter will be distributed in the January 5`'' edition of the Star News.
In addition staff is developing a communications plan to be implemented during the
construction phase of the project, Spring 2005 through Fall 2006. The plan will address
different forms of communication for each type of audience related to the project
construction.
King Avenue Parking Lot Improvement
The attached memo from Assistant Director of Economic Development outlines the
purpose and objectives of the recently formed King Ave. Parking Lot Taskforce. Following
the taskforce's input on the King Ave Parking Lot design, the city engineer will formalize the
construction plans and bid specifications for the City Council's direction in early 2005.
Downtown Revitalization Project Update
January 3, 2005 HRA Meeting
Page 2 of 2
River's Edge Greenspace Improvements
Staff is developing a design for improvements to the River's Edge Greenspace/Park
following meetings with the DNR and Army Corp of Engineers. The City Park &
Recreation Commission is expected to review and approve a plan in February/March 2005.
The park dedication fee from the Bluff and Jackson Block projects will be used to pay for
park improvements in the downtown.
Construction Staging Plan
The City Council recently reviewed and approved the attached Construction Staging Plan
from MetroPlains Development. No action is required from the HRA. In addition, the City
Council is expected to review and approve the construction and parking plans for Bluff and
Jackson Block prior to construction.
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-='"`" EnhancingDownto:un Elk Ricers Role
As a Vitrcl Retail, Commercial anti Resiclentfal Area.
Q. I understand the City has approved a final develop-
ment agreement with MetroPlains. Does the
approval of the final development agreement mean
the project is a certain thing?
A. No, not yet. While this is a very signifi-
cant event there is still due dili e
square feet of first floor commercial development along Main
Street and Jackson Avenue: 32 rental housing units on the
upper two floors and underground parking. The Jackson Block
is currently aCity-owned parking lot.
Q. What is the schedule for
the project?
A. The tentative schedule is as follows:
p g ace This Q~'A newsletter
that needs to occur on the art of the
City and the developer. There are still a YeS~JOnClS t0 SOyYEe
number of tasks that must be complet- ,
ed before construction can occur. 0 f the recent questaons
These include construction drawings CIhOZit Elk R2UeY S
andfiinal plat approvals, securing ,
financing, and acquisition of property. dOUlrltotUn Yev2talZzCltlOn
Q
A.
and redevelopment.
What is a final development
agreement?
The City Council approved the final development agreement
with MetroPlains at the Council's meeting on December 6,
2004. The final development agreement sets out the phasing
and timing of the project, the financial commitment of the
developer, as well as any assistance provided by the City.
Q. What type of development is
proposed for the Bluff and
Jackson Blocks?
A. The revitalization will include the rede-
velopment of the Bluff and Jackson
Blocks; and the development of the
King Avenue parking lot. Specific plans
for Bluff and Jackson Blocks are below.
The Bluff Block is located on the south-
west corner of Main Street and County
Road 42. It includes about 10,000 square
feet of commercial space on the first floor
along Main Street; 60-68 units of for-sale
housing on the upper three floors, under-
ground parking, and a connection to the
City with a plaza on the corner of Main
Street and County Road 42. The Bluff
Block currently includes three buildings
along the Mississippi River.
• MetroPlains' acquisition of properties by
Spring 2005;
• King Avenue parking lot construction in
Spring 2005
• Demolition and environmental remedia-
tion in the Bluff Block in 2005;
• Construction begins in the Jackson Block in Summer 2005
and is completed by the end of 2006;
• Construction begins in the Bluff Block in Fall 2005 after
the U.S. Bank building is vacated and demolished, and
construction is completed by the end of 2006.
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The Jackson Block is located on the - ~ ~.,,~
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northeast corner of Jackson Avenue and - --.
Main Street. It includes about 10,000 '" ~+ ~___
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c ITY CE ELK RIVER d0'vti,+NTOL^.-iJ RIVER; RONT REVITALILATIOf~i C2&A NE~~J ~LETTE'i
Q. Who is paying for this redevelopment?
A. MetroPlains will be required to secure about $14 million in
funding for this project to construct developments in the
Jackson and Bluff Blocks and the new King Avenue parking
lot. Under the terms of the development agreement, the City
will provide approximately $2.3 million in financial assistance
through the tax increment generated by the project.
Q. How will the use of Tax Increment Financing
impact taxing jurisdictions?
A. The taxing jurisdictions will continue to get the same amount
of taxing revenue as they did before the development. Only
the increased taxes from the new development will be used
to assist the development.
Q. What can you tell me about plans for a riverfront
park area/gathering place for residents?
A. The Elk River Park and Recreation Commission is currently
working on a plan for a park area including a gathering
place along the river to allow all Elk River residents to take
advantage of river views. There is also the potential for the
development of a river walk. The planning and design phase
should be completed by Spring 2005. Construction will either
be phased with downtown construction, or could occur a
short time later.
Q. With the new development, will there be
parking problems downtown?
A. Ensuring the downtown has adequate parking is an impor-
tant issue to the City and to downtown businesses. A vibrant
and thriving downtown will always have certain times when
there are traffic congestion and parking issues and redevel-
opment by its nature will bring more visitors to downtown.
Successfully addressing parking concerns means both pro-
viding physical parking spaces and implementing parking
management and enforcement strategies.
By their very nature, downtowns are significantly different in
character than shopping malls or strip and commercial cen-
ters. One of those key differences is a lack of large masses
of parking that are located immediately in front of business-
es, consuming large amounts of space. Downtown parking is
designed around existing buildings.
Currently, there are 240 public parking stalls downtown in
addition to private parking provided by Dare's, The Bank of
Elk River, First National Bank of Elk River, Nadeau's, U.S.
Bank, and behind the Sunshine Depot. New development in
the Bluff and Jackson Blocks will include about 176 new
parking stalls, mostly underground; dedicated to building
tenants. The King Avenue parking lot that is being construct-
ed will provide approximately 44 parking stalls to replace the
21 lost in Jackson Block construction. Finally, the City has
established the King Avenue Parking Lot Task Force and will
be working with downtown business owners on issues of
parking design and enforcement.
Q. How will construction workers' parking be handled?
A. The City Police Department and other City staff will monitor
the situation and address any complaints that arise through
the duration of the construction period. Police will enforce the
construction parking plan to ensure there is still adequate
and convenient parking for everyone who is shopping, visit-
ing or working in downtown.
Q. Will it be tough to get around in downtown when
construction occurs?
A. No, not on a regular basis. As with any construction project,
there may be certain times when the construction impacts
traffic in certain areas of downtown. However, the City will
provide clear and frequent communications throughout the
construction period to make sure residents and businesses
are aware of what is happening in downtown at critical
points during construction. Information will be provided
through a variety of means including the City Web site at
www.ci.elk-rivermn.us, news releases to the Elk River Star
News, and the City newsletter -The Current.
Q. Do we know yet what retail businesses will be
located in the new buildings on Bluff and
Jackson Blocks?
A. No, not yet. MetroPlains will be working with potential busi-
nesses and more will be known about the tenants of down-
town commercial space later next year.
~. When will the new housing units be ready for
occupancy and who do I contact about them?
A. At least some of the new housing units are expected to be
ready for occupancy by Fall 2006. Anyone who is interested
in rental or for-sale housing in Jackson and Bluff Blocks
should contact Vern Hanson of MetroPlains at
(651) 646-7848 to learn more about the availability.
Q. How can I stay informed?
A. There are several ways you can stay informed:
• Visit the City's Web site at www.ci.e/k-rivermn.us and click
on the "News & Events" sidebar to view the Downtown
Revitalization Project Update page.
• Attend HRA and City Council meetings or watch them on
ERtV Channel 12. Meeting information is available on the
City Web site.
• Attend regular Rivers Edge Downtown Business Association
meetings held on the second Wednesday of each month at
8 a.m, at the Elk River Chamber of Commerce office.
• Read the Elk River Star News. Articles on the project fre-
quently appear in the Star News and in the City's newsletter,
The Current, which is distributed as
a Star News insert every other
month.
• Contact the Economic Development
Department at (763) 635-1040.
~~
MEMORANDUM
TO: Mayor and City Council
CC: Housing and Redevelopment Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: December 20, 2004
SUBJECT: Consider Downtown Revitalization Project Construction
Staging and Parking
Attachments
• Letter from MetroPlains Development dated November 22, 2004
• Image: Proposed Construction Staging and Parking Areas
Background
At its December 6, 2004 meeting, the City Council approved a final development agreement
with MetroPlains Development for the Downtown Revitalization Project. The agreement
includes the phasing and timing of the project, the financial commitment of MetroPlains, as
well as the assistance provided by the City.
The development agreement also indicates that prior to construction, the following plans
will be reviewed and considered for approval by the City Council:
1. Construction plans, which will include a parking plan for ost construction
2. Parking plan for the construction staging period
Issue
Parking Plan for Construction Staging Period
At this time, MetroPlains submitted the attached letter requesting Council approval to use
the two city-owned lots located north of Hwy 10 downtown for construction staging and
parking. The attached image indicates the exact location of the two lots in addition to the
private parking offered to MetroPlains for staging or parking during construction. Vern
Hanson of MetroPlains will be available at the City Council meeting to answer questions.
Current Use of Lots
In the past and currently, the City has offered parking permits to downtown apartment
residents and overnight employees. Permit holders were asked to park in the two lots north
of Hwy 10 or in the ten parking spaces located east of the former Municipal Utilities building
in the King Avenue parking lot. Staff recently met with Street Superintendent Phil Hals and
Police Chief Beahen and confirmed that it is appropriate for 2005 permit holders to continue
to park in the 10 spaces near the Utilities building but not in the two lots north of Hwy 10.
Currently, permit holders do not park in the two lots north of Hwy 10.
Future Enforcement of Lots
Staff has discussed MetroPlains' request with Chief Beahen and he indicated that the Police
Department will enforce the construction parking plan.
Recommendation
Staff also discussed MetroPlains' request with City Engineer Terry Maurer. Mr. Maurer
indicated that traffic flow would be least impacted if the construction workers parked in the
proposed material staging area and vise versa. Another issue affecting traffic could be the
frequency and means of material deliveries, although MetroPlains has not chosen a
contractor for the project, so detailed answers to this question/issue are not available.
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MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Heidi Steinmetz Assistant Director of Economic Develo ment ~~
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DATE: January 3, 2005
SUBJECT: King Avenue Parking Lot Task Force Update
Background
At last month's HRA meeting, staff provided preliminary information to the HRA about
the King Avenue Parking Lot Task Force, including the purpose of the Task Force. Since
that time, confusion arose regarding the purpose. The Task Force is specific to the King
Avenue Parking Lot. The purpose is to gather design input and develop enforcement
options for the King Avenue Parking Lot from property/business owner representatives
from each downtown block. Before each Task Force member committed to the Task Force,
staff discussed the specific purpose with them over the phone and a follow up letter was
provided restating the purpose.
Issue
The following details are currently available regarding the Task Force:
Meeting Freduency
In preparation of the anticipated construction of the King Avenue Parking Lot for Spring
2005, the Task Force will meet the first Tuesday of each month from January through May
of 2005. Each meeting will have a specific agenda. The first meeting will include an
overview of the Downtown Revitalization Project and a presentation from City Engineer
Terry Maurer regarding the preliminary design concept of the King Avenue Parking Lot.
Meeting Facilitation
In addition to staff, the King Avenue Parking Lot Task Force meetings will be facilitated by
Lisa Raduenz of LJR, Inc. Transportation Consultants & Planners. The City's financial
advisor, Ehlers and Associates, suggested that an outside transportation/parking firm be
involved to provide an impartial viewpoint to the discussions. In addition, Police Chief Jeff
Beahen, City Engineer Terry Maurer, Street Superintendent Phil Hals, and Vern Hanson of
MetroPlains Development will be involved at appropriate meetings.
Icing Avenue Parking Lot Task Force Update
January 3, 2005 HI2A Meeting
Page2of2
Task Force Members
The following property/business owner representatives have agreed to serve on the Task
Force:
lYle.rt Bluff Block John Houlton, Property Owner, various downtown buildings
ERJ't Blu~Block Fred McCoy, Business Owner, McCoy's Pub
dear Brick Block Dr. Tony Jarmoluk, Elk Dental Center
Brick Block Keith Holme, Business/Property Owner, Kemper Drug
Steve Johnson, Property Owner, Antiques Downtown
Main Street lY/e~•t Block Ty Sunderman, Manager/Director, Dare's Funeral Service
Dozvntoavn Ae.rident John Anderson, Lowell Avenue resident
Next Step
Staff will provide the HRA with King Avenue Parking Lot Task Force updates as needed.