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Home My WebLink About2023-04-24 City Council Workshop Packet AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00 P.M. Monday, April 24, 2023 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS None E. NEW BUSINESS 1. Discussion on a Potential Development on the St Paul Regional Water Service (SPRWS) Property, 1958 Rice Street F. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK E1 CITY COUNCIL WORKSHOP STAFF REPORT Meeting Date April 24, 2023 REPORT TO: Melinda Coleman, City Manager REPORT FROM: Danette Parr, Community Development Director PRESENTER:Danette Parr, Community Development Director Michael Martin, Assistant Community Development Director AGENDA ITEM: Discussion on a Potential Development on the St Paul Regional Water Service (SPRWS) Property, 1958 Rice Street Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The Rondo Community Land Trust (CLT) has approached the City regarding their interest in working with partners to acquire and develop the property at 1958 Rice Street. The development group would like to share their concept for the site in the hopes of receiving initial City Council feedback to determine if additional resources should be utilized to move forward with next steps. Recommended Action: This item is for discussion purposes and no action is required. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment The City of Maplewood has participated in numerous discussions related to the Rice-Larpenteur corridor and future development in the area. The CLT concept will allow for further discussion and feedback from the Council related to 1958 Rice Street (location of the Rice Street Community Gardens). If the Council supports the concept, the CLT will be asking for a resolution of support in the future to potentially secure grant funding to assist with predevelopment work. Background: The 13.26 acre site located at 1958 Rice Street is owned by the Saint Paul Regional Water Services (SPRWS) and is the current location of the Rice Street Community Gardens. Originally, Workshop Packet Page Number 1 of 6 E1 the SPRWS purchased the site for an expansion project, however, has now determined that the site will no longer be needed and they are looking to sell the property. In 2018, the City worked with the Rice Larpenteur Alliance partners to create the Rice-Larpenteur Vision Plan. As a part of that plan, the site at the corner of Rice Street and Roselawn Avenue was envisioned as a mixed-use development area made-up of the following components: - Mixed used residential multi-story buildings. - Public open spaces connected to residential developments. - Mixed commercial buildings with shared parking opportunities along Rice Street. - Extension of the Trout Brook Regional trail north to connect into the Rice Street Garden site. In addition to the Rice-Larpenteur Vision Plan, the Council workshop will also discuss: - Current Comprehensive Plan designation for the site and implications of considering modifications to that range of density. - Investments that have been made in the area and future anticipated investments. - Conceptual layout and potential elevations to reflect the CLT vision. Attachments: 1. Background material from the Rondo Community Land Trust Workshop Packet Page Number 2 of 6 E1, Attachment 1 Rondo Community Land Trust Development Concept Rice Street Gardens 1958 Rice Street, Maplewood, MN Program Design and Concept Rondo Community Land Trust (CLT) is a community-based affordable housing land trust operating in Saint Paul and Suburban Ramsey County. The mission of Rondo CLT is to strengthen and preserve communities by providing and advocating for permanently affordable, sustainable housing for families and individuals with low to moderate incomes. Rondo CLT is proposing the acquisition and development of 1958 Rice Street, Maplewood, MN. Rondo CLT will be the landowner and will work with partners to develop and implement the community vision set forth in the Rice Larpenteur Alliance Vision plan. The initial program design includes: Ώ Retaining the Rice Street Community Garden: is currently home to the Rice Street Gardens. The urban farm/garden has been operating on the site for 8 years and is home to over 260 local gardens (70 percent immigrant families). Preserving the gardens has become a priority for the community. Ώ Affordable Home Ownership: Project Partner TC Habitat for Humanity will develop approximately 28 affordable, owner-occupied townhome units. These units will be developed by TC Habitat within its traditional volunteer-based development model, with some expansion of general and sub-contracting to accelerate the delivery process. These units will be made affordable for households with incomes between $42,000 and 80% of Area Median Income, through a variety of funding sources that have yet to be secured. TC Habitat will undertake significant marketing efforts to drive sales of these units to existing residents in the area. Ώ Affordable Multi-Family (Building 1 and 2): Rondo CLT is currently interviewing development partners. Our goal will be to maximize the number of affordable units on the site. Initially projections 100-145 units of affordable units in two separate buildings. The development team anticipates purchasing 1930 Rice Street as part of the site assembly. Development partners, Rondo CLT and Twin Cities Habitat for Humanity were recruited by the Rice Street Gardens and RLA to participate in the redevelopment because of their stated commitments to affordable housing, building community wealth through shared equity ownership, and commitment to building the quality of life, health, and economic prosperity for local communities. All partners are dedicated to building a project that meets the stated needs of residents and future tenants; the community will be involved in the design of the redevelopment, the open space, and pedestrian environment. Workshop Packet Page Number 3 of 6 E1, Attachment 1 Rondo Community Land Trust Development Concept Rice Street Gardens 1958 Rice Street, Maplewood, MN Sources and Uses Project Feasibility Feasibility & Predevelopment Sources Feasibility Risk Factors: Met Council Predevelopment 200,000* Ώ Due to topographic, wet land, soil challenges, and competing Ramsey County Critical Corridors 50,000* goals, substantial predevelopment expenses will be incurred to understand the buildable area and finalize a site plan. MPCA 40,000 Ώ The site is not located in a QCT which makes it difficult (not LISC 7,500** impossible) to receive 4% tax credits. Total Sources 297,500 Ώ Market rate housing is not feasible on this site. identified in the community plan and the rents will not Uses support it. Ώ Given the high purchase price, and limited buildable area on Feasibility/Concept Planning 50,000 the site, the team will need to acquire the lot on the corner Geotechnical 26,000 of Rice and Roselawn (1930 Rice) to maximize the number of Appraisal 5,000 units on the site and achieve the most affordable rents Survey 12,000 possible. Ώ Affordable multi-family units will take several years to Site & Stormwater Design 70,500 secure financing (this is not unique to the site but a Phase 1 & Phase 2 44,000 challenge and risk to building affordable housing). Legal Fees 20,000 Ώ City of Maplewood 25, Met Council 15 minimum per acre Capital Campaign 20,000 Strengths of Program & Partnership: Community Engagement 20,000 Ώ Rondo CLT will facilitate and manage a development process Contingency. 30,000 to achieve the multiple goals set forth in the RLA Vision. Total Uses 297,500 Ώ TC Habitat is a strong development partner with dedication to the site and extensive development experience. Land Acquisition Ώ Rondo CLT has identified acquisition and predevelopment sources and uses. The funding schedule should allow for Sources RCLT to complete predevelopments and close by Q1 of 2025. LISC CAT FUND 850,000*** Ώ Land Trust ownership will reduce the cost of development Met Council LCDA 1,500,000 (barring the land cost and some predevelopment costs) lower Rice Street Gardens 350,000 the risk for development partners and ensuring affordability goals can be achieved and housing will remain affordable in Total Sources 2,500,000 perpetuity. The land leases will require the housing to remain affordable upon sale. Uses Ώ Financial feasibility will be determined through applications Acquisition 2,500,000 to with funders. However, the concept and program align strongly with goals set forth in multiple funding sources Total Uses 2,500,000 including Ramsey County, Met Council, and multiple private, community, and intermediary goals including but not limited *Applied For to affordable housing, supporting community driven **Secured development, strong community process, affordable homeownership, higher density near transit. ** 5-year loan, up to $2.5M Ώ Rice Street Gardens has raised $330,000 to secure a partnership in the redevelopment. This demonstrates substantial community support and viability of the partnership. Ώ Dedicated public sources such as TIF can increase the speed and help the project meet its goals. Workshop Packet Page Number 4 of 6 E1, Attachment 1 Rondo Community Land Trust Development Concept Rice Street Gardens 1958 Rice Street, Maplewood, MN Acquisition and Predevelopment Timeline Item Deadline Submit application to Ramsey County Corridors, Predevelopment 4/4/2023 Prepare materials for City Council 4/10/2023 Present to City Council 4/24/2023 Submit application to Metropolitan Council Predevelopment 4/21/2023 Mutually agreeable LOI signed 5/1/2023 Negotiate PA + Create LLC 5/15/2023 Sign PA aka Effective Date 5/31/2023 Order Title Commitment 6/2/2023 Meet with Partners (and schedule future meetings to get to goal of MOU date) 6/7/2023 Title Commitment Due 6/10/2023 Obtain Documents from seller 6/15/2023 Submit application to MPCA for Phase 1 & Phase 2 6/15/2023 Identify pathway to confirm buildable area of the site 6/18/2023 Procure Survey Proposal 6/18/2023 Procure Geotechnical Proposal 6/18/2023 Procure Site Planning Proposals 6/18/2023 Find out if MPCA funding is received 6/22/2023 Select and sign Survey and Geotechnical Contracts 6/26/2023 Procure Environmental Phase I application privately or proceed with MPCA 6/29/2023 MOU with partners complete 6/30/2023 Sign Site Plan Proposal 6/30/2023 Determine whether/when appraisal will be needed (i.e. financing options for land acquisition) and add procure/order/receive to timeline if needed 7/7/2023 Environmental Phase I Complete 7/20/2023 Partners submit Final Pro Formas 7/25/2023 Final Site Plan 7/25/2023 Zoning Letter 7/25/2023 Order Phase II 7/27/2023 Submit LCDA Application to Metropolitan Council 8/4/2023 Title Objections 8/29/2023 Phase II Complete 9/7/2023 Initial Due Diligence Expires 9/28/2023 Earnest Money Deposited 10/1/2023 Financing & Design Contingency Expires 7/27/2024 Settlement Statement 1/20/2025 CLOSE 1/23/2025 Workshop Packet Page Number 5 of 6 E1, Attachment 1 Rondo Community Land Trust Development Concept Rice Street Gardens 1958 Rice Street, Maplewood, MN Development Team & Partners Master Developer Rondo Community Land Trust Rondo Community Land Trust (CLT) is a community-based affordable housing land trust operating in St. Paul and Suburban Ramsey County. The mission of Rondo CLT is to strengthen and preserve communities by providing and advocating for permanently affordable, sustainable housing for families and individuals with low to moderate incomes. Rondo CLT owns 94 units of affordable land trust housing, 23,000 square feet of commercial real estate. Rondo CLT recently developed Selby Milton Victoria, two mixed use affordable housing and commercial properties on Selby Avenue in Saint Paul. Affordable Homeownership Habitat for Humanity TC Habitat has been involved in numerous development partnerships as well as performing its own moderate scale development and construction projects. TC Habitat has partnered with Aeon Homes, Project for Pride in Living, PRG, City of Lakes Community Land Trust, Sherman Associates, Shelter Corp., Washington Co HRA, and others to provide townhome and condominium units within larger developments encompassing both affordable rental and market rate condominium and townhome development. We have also developed vacant land for our own purposes, including multi-building twin- and townhome projects in Prior Lake, Chaska, and St Paul. Additionally, we have purchased and built out many twin- and townhome projects including in Woodbury, Ramsey, and Minneapolis. Additional Partners: Community Amenity Rice Street Gardens Community Stakeholders & Liaison Rice Larpenteur Alliance Attorney Rebecca Heltzer, Heltzer Law Development Consultants Platform CRE Workshop Packet Page Number 6 of 6