HomeMy WebLinkAbout2013 06-10 City Council Workshop Packet
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:00 P.M. Monday, June 10, 2013
Council Chambers, City Hall
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
1. Commission Candidate Interviews
a. Heritage Preservation Commission
E. NEW BUSINESS
1. Review of Proposed Maplewood Bowl Redevelopment and Gladstone Master Plan
2. Review of Draft 2014-2018 Capital Improvement Plan and Debt Analysis
F. ADJOURNMENT
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Work Session Agenda Item D1
AGENDA REPORT
TO: James Antonen, City Manager
FROM: Charles Ahl, Assistant City Manager
Sarah Burlingame, Senior Administrative Assistant
DATE: June 5, 2013
SUBJECT: Commission Candidate Interviews
a. Heritage Preservation Commission
INTRODUCTION
The City Council will be conducting interviews of candidates for the Heritage Preservation
Commission. There are 2 openings on the Heritage Preservation Commission. These openings
are due to terms expiring and resignations. There is currently one applicant who is seeking
reappointment to the commission. Staff is still seeking applicants to fill the other vacancy on the
commission.
RECOMMENDATION
Staff recommends that the Council interview the candidate as indicated in the schedule below.
The suggested questions will be submitted under separate cover to the Council. During the
interview process, Council Members should fill out their ballots. Once the Interview has
concluded, Council Members should submit their ballots to staff, which will be tallied with the
results brought back to the Council during the following regular meeting with recommendations
for appointment.
RECOMMENDATION (continued)
Time Candidate Commission
5:00 Question Selection
5:05 Richard Currie Heritage Preservation Commission
Attachments: Candidate Application in order of interview schedule
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MEMORANDUM
TO: James Antonen, City Manager
FROM: Michael Martin, AICP, Planner
Charles Ahl, Assistant City Manager
SUBJECT: Review of Proposed Maplewood Bowl Redevelopment and Gladstone Master Plan LOCATION: 1955 English Street
DATE: June 3, 2013
INTRODUCTION
Within the last few weeks, AMF, which had operated the Maplewood Bowl, closed its operations
and is in the process of emptying the building and leaving the site at 1955 English Street vacant.
The Maplewood Bowl site consists of approximately 5.8 acres northwest of the Gladstone
neighborhood’s most visible intersection of English Street and Frost Avenue. Upon receiving
AMF’s notice of not renewing its lease, the property owner began to actively market the property
for redevelopment.
Andrew Hughes, of Sherman Associates, Inc., has approached city staff with a proposal to
redevelop the Maplewood Bowl site into a three-phased mixed use project. Mr. Hughes is in
negotiations with the property owner to purchase the site. The current property owner supports
the city’s efforts to pursue grant dollars for the potential redevelopment of this site.
The city council, at its workshop on June 10, 2013, will be reviewing the preliminary concepts
and plans of the proposed development as well as the Gladstone Master Plan and the recently
updated market study that was conducted for this neighborhood.
DISCUSSION
Proposed Redevelopment
Mr. Hughes is proposing to build a three-phased mixed use project. The first phase would
consist of a 55-unit building with one, two and three bedroom units. These units would include
affordable housing. The housing units would not be subsidized housing, but rather a mix of the
units would be kept at rents that are considered affordable. Phase two would consist of
approximately 65 units of senior independent living apartments. Finally, phase three would
consist of approximately 6,000 square feet of neighborhood-oriented retail. Refer to the
attached site plan.
Mr. Hughes is requesting the city consider the use of tax-increment financing (TIF) and the
reduction or waiving of development fees in order to make the proposed project feasible.
According to Mr. Hughes, Sherman Associates’ gap is $1,000,000 and TIF would have the
potential of generating up to $775,000. The city has not done any analysis on these numbers
and for the city council to consider TIF it would require an application be made at which point
the city’s financial consultant would work to verify Mr. Hughes’ numbers.
The above request would only pertain to the first phase of the development. City staff has been
working with the existing property owner and Mr. Hughes on a potential application to the
Metropolitan Council for available Livable Communities Demonstration Account grant dollars. A
Workshop Agenda Item E1
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“pre-concept” application was submitted to the Metropolitan Council which only allows
Maplewood city staff to receive feedback from the Metropolitan Council on the viability on such
an application. In order for the city to submit a full application and apply for grant dollars, the
city council would have to adopt a resolution supporting the application, which will be
considered later this summer. The purpose of the grant dollars would be to work towards
successful phases two and three.
Included with this report are several attachments submitted by Mr. Hughes. This information
provides a good picture of what the applicant would like to see happen with this site. No land
use applications have been made for this potential development. City staff wanted to bring this
before the city council to gauge its reactions before the process got any further along. The
housing and economic development commission reviewed this proposal at its meeting on May
8, 2013 and made a positive recommendation for the city council to consider the use of TIF or
other financial tools for the city to assist with this development. The recommendation was given
with the caution of the city being careful with the level of assistance given as to make sure any
increases of city services are accounted for.
Gladstone Neighborhood Master Plan
In April of 2007, the city council adopted the Gladstone Neighborhood Master Plan. This plan
identified future land uses and desired urban form for redevelopment opportunities within the
neighborhood. The Shores at Lake Phalen represents the first major phase of redevelopment
within the neighborhood. In addition, the city has invested around $8 million in right-of-way-
improvements and within the Gladstone Savannah.
The master plan calls for intense development at the core of Frost and English and for 650 new
housing units and 50,000 to 75,000 square feet of neighborhood retail and office space for
Gladstone. The master plan also established several guiding principles which are highlighted
below and expanded on more within the plan document:
• Design the future of Gladstone as a “village”
• Transform regional trails into celebrated village corridors
• Make Gladstone a compelling “quality of life” choice
• Weave natural systems and ecological function into the built and recreational fabric
• Allow Gladstone’s future to whisper the story of its past
• Make “walkability” THE standard
• Think of Gladstone as a neighborhood for all stages of life
• Make the Gladstone master plan a model for others to follow:
• Make multi-modal links between Gladstone and areas beyond:
The proposed development meets several of the development strategies outlined within the
master plan. The plan calls the area between Frost Avenue, English Street, the Gateway Trail
and Flicek Park as the core development area. The plan also calls for a focus of commercial
uses in this area with store fronts along English and Frost. The plan does state that market
conditions may make this strategy difficult to achieve at the onset of redevelopment. Finally, the
plan calls for residential densities of 20 to 30 units per acre and buildings ranging in two to four
stories in height.
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The master plan does address implementation strategies and states that any development
should be self-sufficient. Several strategies are discussed for potential city involvement such as
the use of TIF, which would allow for the ability to better influence the final outcome.
Gladstone Market Study
In 2003, the city hired Maxfield Research to produce a market study for the Gladstone
Neighborhood. This market study worked to inform the master plan that was later developed for
this area. In late 2012, the city again worked with Maxfield Research to update this document to
ensure it reflected the changing market conditions and constraints. The study covers the entire
neighborhood but has a focus on the Frost and English intersection. The study was conducted
while considering the impacts of nearby commercial areas, traffic counts and past development
patterns.
While the master plan calls for up to 650 new housing units and up to 75,000 square feet of
retail commercial space the market study states market demands will call for 300 new housing
units and up to 31,600 square feet of commercial space. The demand for owner-occupied
townhomes and condos is low currently but would be expected to rebound in the next 10-20
years, especially if transit opportunities are expanded for this neighborhood. According to the
study, the Shores ate up most of the immediate demand for senior assisted living housing for
this neighborhood.
The market study states that the general occupancy rental rate for Maplewood is 1.6 percent,
reflecting similar rental housing shortages seen throughout the metro. The study states multi-
family rental housing could be developed in this neighborhood within the next one to five years.
The market study shows that new multi-family market rate units may be difficult to build in this
neighborhood because of the rents needed to cover amenities that renters would expect.
Affordable rental projects have more potential in the short term.
The neighborhood could support 16,000 square feet of retail through 2020. Competition with
the Maplewood Mall area and White Bear Avenue, lower traffic counts and existing
neighborhood commercial areas will make retail difficult until more housing is built. Commercial
options will continue to be a mixture of specialty stores and retail shops.
Other Potential Next Steps
The market study calls out several areas for redevelopment. One area includes the area
directly west of the Gladstone Savannah. This includes two properties currently going through
the tax forfeiture process. It is expected these properties will go for public auction in the fall.
The adjacent Maplewood Marine site is also target for redevelopment and the current owners
have expressed a desire and willingness to sell their property.
The market study also calls for the redevelopment of the areas west of the Maplewood Bowl
site. This area includes a mixture of auto related uses that could provide several challenges in
redevelopment. City staff has met with several developers who have indicated the auto uses
are an inhibitor towards private investment. As the city continues with its development efforts,
this is an area of consideration that should be given more thought.
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Where to Find Master Plan and Market Study
The Gladstone Neighborhood Master Plan and Gladstone Market Study are very large
documents, which is why physical copies are not being sent out. The study documents are
available on the city’s planning website – follow the web link provided below. On the planning
webpage, scroll to the bottom to find the links to the documents.
http://www.ci.maplewood.mn.us/index.aspx?nid=358
RECOMMENDATION
The city council is being asked to provide initial thoughts and direction on the potential
redevelopment of the Maplewood Bowl site and the use of public assistance while considering
the vision and goals outlined within the Gladstone Neighborhood Master Plan and supported by
the Gladstone Market Study.
Attachments:
1. Cover Letter from Mr. Hughes, dated May 1, 2013
2. Draft Site Plan
3. Phase I Redevelopment Summary
4. Phases II and III Redevelopment Summary
5. Gladstone Neighborhood Master Plan (Available on city’s website)
6. Gladstone Market Study (Available on city’s website)
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Page 1 of 2
M E M O R A N D U M TO: Members of the Housing & Economic Development Commission, City of Maplewood FROM: Andrew Hughes, Project Manager, Sherman Associates DATE: May 1, 2013
RE: Frost-English Redevelopment (aka, AMF Bowl) Sherman Associates and Kaas-Wilson Architects have been working to prepare an ambitious redevelopment concept for the AMF Bowl site at the northwest corner of Frost Avenue and English Street. Our proposal will bring high-quality design and new users to the area, revitalizing an important intersection. Our plan would require the financial participation of the City in order to come to fruition. In addition to updating members of the Commission on our progress to date, we would like to engage Commission members to solicit feedback in anticipation of submitting an application for the City’s assistance for a portion of the redevelopment. The proposed redevelopment would include three phases; please see enclosed Draft Site Plan. A summary of each phase is provided below, with additional detail included in the enclosed summaries.
• Phase I: located in the southwest corner of the site, this phase would include approximately 55 units of workforce housing;
• Phase II: located on the northern half of the site, this phase would include approximately 65 units of senior independent living apartments;
• Phase III: located on the southeast corner of the site, this phase would include approximately 6,000 square feet of neighborhood-oriented retail. Sherman Associates is working with City staff on an application to the Met Council for funds to aid in the development of Phases II and III. Phase I has a funding gap of approximately $1,000,000. Sherman Associates requests that the City consider funding this gap through a combination of TIF and waivers of SAC, WAC and PAC fees. The following are estimates for each of these sources:
• TIF: approximately $725,000 to $775,000;
• SAC: $7,150 ($130 per unit);
• WAC: $15,400 ($280 per unit);
• PAC: $194,700 ($3,540 per unit). In order to make the project more competitive for other funding sources, Sherman Associates requests that the City consider deviating from its traditional approval process for City assistance. Pending the outcome of the Commission meeting, Sherman Associates would submit an application for TIF for the City’s financial advisor’s review. Sherman Associates would request preliminary approval of the TIF at the City Council’s June 13, 2013, meeting. Final approval would be sought following Sherman Associate’s award of other project funds, the City’s approval of the development design and other steps the City deems appropriate.
Attachment 1
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Site Plan w/Phasing
Minnetrista, MN Attachment 2Workshop Packet Page Number 8 of 14
Frost-English Redevelopment
Phase One
Draft Development Proposal Phase One of the proposed redevelopment will be a 55-unit, 4-story property containing one, two and three bedroom units. The property will provide a 1:1 underground parking ratio and additional surface parking. To the extent the City is interested, Sherman Associates and its architect can refine the design concept to make the design more urban and compatible with the Gladstone Neighborhood Redevelopment Plan goals (e.g., reduce setbacks, add townhouse entrances to Frost Avenue, etc.).
Unit Mix and Proposed Market The proposal will contain workforce housing, with rents affordable to moderate wage earners (e.g., $49,380 for a four-person household in a 60% AMI unit); see below for additional detail on the proposed unit mix and rent/income restrictions. According market analysis prepared by Maxfield Research for the City, the market area has a 0% vacancy for this housing type.
Number of
Bedrooms Count Gross
Rent
Rent
Restriction
Income
Restriction 1 Bedroom 6 $836 60% AMI 60% AMI 2 Bedroom 14 $988 60% AMI 60% AMI 3 Bedroom 7 $1,105 60% AMI 60% AMI 1 Bedroom 4 $741 50% AMI 60% AMI 2 Bedroom 11 $838 50% AMI 60% AMI 3 Bedroom 4 $980 50% AMI 60% AMI 1 Bedroom 3 $231 30% AMI 60% AMI 2 Bedroom 4 $278 30% AMI 60% AMI 3 Bedroom 2 $642 30% AMI 60% AMI 55
Proposed Development Budget The total development costs are estimated to be approximately $10,500,000. The development will be substantially financed by proceeds from the sale of Housing Tax Credits (70% of development costs) and a First Mortgage (15%). Sherman Associates intends to apply for both of these sources from Minnesota Housing in June, with funding decisions announced in late-October. The proposed development budget results in a projected gap of approximately $1,000,000. Sherman Associates proposes that the remaining gap be funded by a combination of TIF and waiver of City fees (SAC, WAC, PAC, etc.). In addition to making this phase financially feasible, such a funding commitment from the City will result in a more competitive application for Minnesota Housing funding.
Comparable Developments Sherman Associates has developed numerous properties similar to what is being proposed for Frost-English. Examples include Falcon Heights Apartments (Falcon Heights) and The Crossings at Valley View (Bloomington). Sherman Associates is available to arrange a tour of these properties for City staff.
Attachment 3
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Frost-English Redevelopment
Phases Two and Three
Draft Development Proposal Phases Two and Three of the redevelopment are contingent upon Met Council funding to acquire the balance of the site and prepare it for redevelopment. Sherman Associates proposes to work with the City to ensure that the proposal is competitive for Met Council funds and we would anticipate using these funds for site acquisition, demolition and infrastructure costs.
Phase Two Phase Two is proposed to contain approximately 65 units of senior independent living apartments. According to Maxfield Research market data prepared for the City, the demand for affordable senior independent living apartments is met by existing supply, but additional unmet demand is projected for market rate senior independent living apartments. Sherman Associates operates several mixed-income, senior independent living communities in the area (Little Canada, Shoreview and Falcon Heights) and has seen consistent demand for this product type. Sherman Associates also feels the addition of this product type to the area will provide housing choices complementary to the newly-opened “The Shores of Lake Phalen” community, just west of the site. The estimated total development costs for this phase would be approximately $12,000,000.
Phase Three Phase Three is proposed to contain approximately 6,000 square feet of neighborhood-oriented retail. Sherman Associates agrees with the findings of the Maxfield Research market analysis, which found that the area’s low traffic count challenged the feasibility of a larger retail development. Sherman Associates does believe the retail space will gain value following the completion of Phases One and Two. We believe that if acquisition and site preparation costs can be reduced with Met Council funds, rents can be underwritten low enough to attract neighborhood-oriented retail users. The estimated total development costs for this phase would be approximately $1,000,000.
Attachment 4
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Work Session Agenda Item E2
AGENDA REPORT
TO: James Antonen, City Manager
FROM: Gayle Bauman, Finance Director
Charles Ahl, Assistant City Manager
SUBJECT: 2014-2018 CIP Plan Review and Debt Analysis
DATE: May 29, 2013 for June 10, 2013 workshop
INTRODUCTION
The Capital Improvement Plan is an annually prepared document that coordinates the
planning, financing and timing of major equipment purchases and construction projects.
The 2014-2018 CIP document has been released for review by the various
Commissions and a Public Hearing on the CIP will be held at the Planning Commission
meeting in June.
This Work Session is to provide the Council with the first review of the draft CIP as
proposed by the staff and to discuss our debt levels. No action by the Council is
recommended. Following the receipt of recommendations from all the Commissions,
the City Council will be asked to adopt the CIP in July 2013. Adopting the CIP does not
commit the council to the proposed projects, nor implement the assumptions made
during the preparation; however, this is the basis for the 2014 Budget as we proceed
with its preparation.
There is a fairly significant decrease in the cost of projects included in the 2014-2018
CIP compared to previous years. The proposed 2014-2018 CIP contains $46.7 million
in expenditures while the 2013-2017 CIP contained $67.7 million. The two main
reasons for this decrease are 1) the once-in-a-decade interchange improvement at
TH36-English was included in the 2013-2017 CIP at a cost of $16.2 million and it is not
included in the 2014-2018 CIP; and 2) the City’s shift in focus from an accelerated
streets program to controlling our debt levels.
Debt Analysis
Beginning in 2007, the City made a conscious decision to take advantage of the
favorable construction market and expand its street repair/reconstruction program.
Some of the outcomes of this decision are:
Many of the badly deteriorated streets in the City were repaired and/or improved.
Projects were completed at a lower cost than originally anticipated.
More projects could be completed because of the lower costs.
Our outstanding debt amount has increased.
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Two of the internal policies the City has regarding debt service fund balances and debt
levies are:
1. The ratio of debt service fund levies combined with capital expenditure levies to total
levies shall be targeted to maintain a level in the range of 15-25%. This policy will
help to ensure that the city is always maintaining its infrastructure, either through use
of debt or current funding.
2. The City’s fund balance in the Debt Service fund shall be at a minimum level of 50%
of annual debt service expenditures. Because the majority of annual debt service is
paid on February 1 and August 1 of each year, funds must be on hand for payment
of February 1 debt service.
With the expansion of the streets program, the City is currently exceeding the targeted
level of 15-25% for its debt/capital levy. For 2013, the ratio of debt service fund levies
combined with capital expenditure levies to total levies was 26.7%. The proposed CIP
includes an increase in the debt/capital levy of $105,070 broken down as follows:
FUND 2013 LEVY 2014 LEVY
Debt Service 4,313,530 4,658,600
Capital Improvement Projects 180,000 180,000
Fire Truck Replacement 50,000 50,000
Park Development 30,000 30,000
Public Safety Expansion 260,000 0
Redevelopment 20,000 40,000
Economic Development Authority
89,270 89,270
TOTAL DEBT/CAPITAL LEVY 4,942,800 5,047,870
Exceeding our target in this case does not have a negative impact on the City as long
as it doesn’t continue indefinitely. The City consciously made a decision to put more
funding toward infrastructure and staff has been able to maintain its operations side.
This was accomplished by implementing many different strategies such as:
Early retirement program
Not filling or eliminating vacant positions
No COLA increases
Deferring projects and/or purchases
Deferring repair and maintenance items
Changes to health insurance
By managing our street projects through the CIP process, we currently anticipate that
there will be no bonding requirement for street projects in 2015 and debt service
requirements will begin to decrease in 2016. This will eventually bring our debt/capital
levy back in line with our internal policy. The history of the debt/capital levy to total levy
is as follows:
2007 2008 2009 2010 2011 2012 2013
20.2% 22.0% 20.9% 21.7% 22.6% 25.8% 26.7%
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Based on projections for the Debt Service funds, it appears the City will not be able to
maintain a minimum level fund balance in the debt service funds of 50% of annual debt
service expenditures for a few years starting around 2016, without a significant increase
in the debt levy. While the debt service funds will continue to have a positive total fund
balance at the end of each year, there would not be sufficient funds on hand at
February 1st and August 1st to make the required debt service payment. What this
means is that the debt service funds would temporarily borrow money from the General
Fund and pay interest expense on these borrowings. This would continue for a few
years until some of our bond issues are paid in full and drop off the City’s payment
schedule. Though this is not an ideal situation, staff does understand that going against
the policy in the short term is a better alternative than having a large levy increase to
avoid the drop in fund balance. Also, new legislation was passed this session which
should bring in an additional $530,000 in Local Government Aid and potentially another
$300,000 due to the return of the sales tax exemption for cities and counties. The City
would look at utilizing these funds to manage our debt levels in the short term. Based
on current information, the following table shows the projected year end fund balance
for the debt services funds for 2014-2018:
2014
2015 2016 2017 2018
YE Fund Balance
$6,897,820 $4,672,360 $3,201,030 $2,022,020 $1,238,100
% of debt service costs 64% 46% 32% 21% 13%
% of debt service costs w/
LGA funds ($530,000/yr) 69% 56% 49% 42% 42%
CIP Summary
A copy of the draft 2014-2018 Capital Improvement Plan has been distributed and can
be found on the City’s website at www.ci.maplewood.mn.us. The Transmittal Letter
highlights the major projects within the Plan for consideration. The document explains
each of the proposed projects, as well as analyzes the impacts on the budget for the
various funds, along with the tax impact necessary to implement these projects as
proposed. The staff submits projects based upon goals set at the Council/Management
Team retreats. The finance staff analyzes the funds available for capital projects along
with the impacts of the staff proposals. A number of revisions are made in the project
submittals based upon the analysis of finance, as well as management priorities to
achieve the attached CIP plan. The attached table shows the changes that were made
to the original requests based on the City’s financial means and meetings with the
various department heads.
RECOMMENDATION
The Council should review the proposed projects within the 2014-2018 Capital
Improvement Plan. No action is recommended at this time.
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2014 2015 2016 2017 2018 TOTAL ORIGINAL REQUEST 14,862,220 11,718,000 7,674,180 9,317,000 18,110,000 61,681,400 ADDITIONS Ambulance refurbish 110,000 110,000 PS Training Facility 1,000,000 1,000,000 1,000,000 3,000,000 Election Equipment 40,000 40,000 40,000 120,000 Beebe Road Street Improvements 100,000 1,190,000 1,290,000 MOVE/CHANGE Fire Truck (479,120) 479,120 0 Move from 2014 to 2016 Ambulance (187,280) 187,280 0 Move from 2016 to 2017 Fire Station #7 (4,000,000) 2,500,000 (1,500,000) Fire Station 3M (850,000) (850,000) Commercial Property Redevelopment (50,000) (50,000) Fish Creek Open Space (748,000) (748,000) Deer Management (25,000) (30,000) (55,000) Operating cost Gladstone Savanna (300,000) (300,000) 300,000 300,000 0 Move to later years EAB Ash Removal/Replanting (50,000) (25,000) (75,000) Operating cost MCC Building (100,000) (100,000) (100,000) (100,000) (100,000) (500,000) Levy increase of $65,000 Fleet Management (23,100) (58,900) (1,000) (29,000) 42,000 (70,000) Arkwright/Sunrise Area Streets (9,000) (9,000) Lakewood/Sterling area streets (200,000) (3,520,000) 3,720,000 0 Move from 2015 to 2016 Farrell/Ferndale area streets (200,000) (3,810,000) 4,010,000 0 Move from 2016 to 2017 Dennis/McClelland area streets (200,000) (3,970,000) 4,170,000 0 Move from 2017 to 2018 Sterling Street bridge replacement 100,000 1,190,000 (100,000) (1,190,000) 0 Move from 2018 to 2015 DECLINE (to future years) Fire Truck (509,900) (509,900) Ambulance (200,000) (200,000) PD Expansion ‐ phase II (3,000,000) (3,000,000) Hillcrest Area Roadway Improvements (1,000,000) (1,000,000) Hillcrest Area Redevelopment (600,000) (600,000) Hillcrest Area Streetscape (1,500,000) (1,500,000) Crestview/Highwood Area Streets (200,000) (8,650,000) (8,850,000) UPDATED REQUEST 13,218,000 5,044,100 7,805,120 12,985,280 7,632,000 46,684,500 Workshop Packet Page Number 14 of 14