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5-20-96 agenda
• CITY OF RICHFIELD, MINNESOTA MONDAY MAY 20, 1996 SPECIAL CITY COUNCIL MEETING WITH RICHFIELD SCHOOL BOARD 5:30 P.M. RICHFIELD HIGH SCHOOL 7001 HARRIET AVENUE BOARD ROOM AGENDA CALL TO ORDER ROLL CALL 1. DISCUSSION REGARDING REPORT ON MINNESOTA STUDENT AND SEARCH INSTITUTE SURVEYS ON ASSETS FOR YOUTH ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702. LO is CITY OF RICHFIELD MONDAY, MAY 20, 1996 SPECIAL JOINT RICHFIELD CITY COUNCIL AND RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING WITH PLANNING COMMISSION 6:30 P.M. RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS CALL TO ORDER ROLL CALL • 1. CONSIDERATION OF ACCEPTANCE OF LYNDALE GATEWAY STUDY FROM HOISINGTON KOEGLER GROUP INC.; ILN REDEVELOPMENT PROJECT COUNCIL LETTER NO. 163 . HRA LETTER NO. 23 ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702. • CITY OF RICHFIELD, MINNESOTA Council Letter No. 163 HRA Letter No. 23 Agenda May 20, 1996 ,Issue Statement: Consideration of the acceptance of the Lyndale Gateway Study from Hoisington Koegler Group Inc.; ILN Redevelopment Project. Background: On July 17, 1995 the HRA took the initial steps toward formulating a strategy for the Lyndale Avenue commercial area north of 77th Street. Fred Hoisington of Hoisington Koegler Group Inc. was retained to prepare a strategy. The Planning Commission under the leadership of Daniel Linnihan was requested to oversee the formulation of the strategy and together with Fred Hoisington, provide the businesses and residents with opportunities to participate. Attached to this letter is a copy of the strategy. Dan Linnihan, at the May 20, 1996 HRA meeting will present the report as it was accepted by the Planning Commission on April 23, 1996. Fred Hoisington will then discuss the significant conclusions and respond to questions. Business people and residents have been invited to the meeting and may wish to make remarks as well. The purpose of the strategy is to establish a framework within which to pursue the upgrading of Lyndale Avenue. The report identifies opportunities and constraints, and notes issues with which to be concerned. The`report contains ten sections plus an appendices. Section 1.0. page 2 -'The Lyndale Gatewak Introductory remarks and a list of the objectives of the strategy. Section 2.0, page 3 -'Executive Summary' Contains a list of 12 significant statements regarding the strategy. Section 3.0. page 4 -'The Framework' Indicates among other things that building values in the area are declining while land values are increasing; (page 6). The summary paragraph on page 8 offers several insights into the area. Section 4.0. page 9 -'The Market' A market study was undertaken by Maxfield Research Group Inc. as a sub-consultant to Hoisington. They discerned a market for smaller office buildings of 60,000-80,000 square feet; and retail space demand use up to 170,000 square feet. Housing may be feasible if it occurred in two to three stories or more above first floor retail. Section 5.0. page 11 -'Stockholder Input/Results' Input from residents and business people was formulated into guiding principles which appear on page 13. (Attached is a list of the public meetings where study input was provided.) Section 6.0. image 15 -'The Possibilities' A listing and brief discussion of each of eight alternative concepts which grew out of meetings with `stockholders'. Section 7.0. page 16 -'The Concept an an Recognition that this area is a gateway to the community and incorporates ideas from several of the alternative concepts. Section 8.0. page 18 -'Design Guidelines' Provides design considerations for implementation of the strategy. Section 9.0. page 2 -Costs & Feasibility' On page 21 is a list of several economic statements to be considered when contemplating the implementation of this strategy. Identification of the areas east and west of Lyndale Avenue and south of 76th Street as the highest priority for redevelopment. The text points out the difficulty of financing the desired concept in the two Lyndale Avenue blocks utilizing only tax increment from redevelopment in the two blocks. Table 3 is a projection of costs for this area and totals $9.5 million. Table 4 lists some potential funding sources and the text notes additional options. A purpose of the study was to quantify the financial issues. The list of options is simply a list of options (by accepting the report neither the HRA nor the City Council would be rejecting or accepting the options). The list may be utilized to facilitate future discussions. So far • there has been reaction in two ways to this section. One reaction is to abandon redevelopment of the two blocks east and west of Lyndale Avenue south of 76th St and let the existing business owners "do something". Another reaction has been th some of the options are totally unacceptable and should not be identified, i.e. the us the City's portion of the LHN tax increment benefit. Section 10.0. page 2 -'A Strategy To Get It Done' Pages 23, 24, and 25 list 16 objectives to be followed in implementing the strategy. reet at e of Finally, if the HRA and City Council accept the report, it would be appropriate for the HRA to direct staff to begin to explore the marketability of the mixed commercial/apartment concept proposed for the east and west side of Lyndale Avenue South of 76th Street. Once a potential redeveloper has been identified it would be appropriate for the HRA, City Council and Planning Commission to consider modifying the ILN Redevelopment and Tax Increment Finance Plans. At that time the project boundary could be shifted from the mid-point of the 7600-01 blocks east to Garfield Avenue and west to Aldrich Avenue. Also, consideration could be given to moving the boundary north from 75th Street to 74th Street. At that time details of various financing tools would also be identified. Recommended Motion: A. City Council Adopt a motion accepting the Lyndale Gateway Study following discussion with the HRA and public testimony. B. HRA 1. Adopt a motion accepting the Lyndale Gateway Study following discussion with the City Council and public testimony. 2. Adopt a motion directing staff to market the study concepts to the development community. Basis of Recommendation: 1. The area was studied because it exhibits characteristics of decline. 2. The HRA retained the services of Hoisington Koegler to formulate a plan. 3. The Planning Commission took a very active role in overseeing the conduct of the study and participation in formulating the Lyndale Gateway Study. 4. Opportunities were provided for the area business people and residents to participate. 5. Marketing of the plan should begin with its acceptance. Alternative Recommendation: 1. Delay acceptance. 2. Request the rewriting of certain portions of the report. 0 3. Reject the report. 4. One neighbor on the east side of the 7600 block of Garfield Avenue has requested that the City consider expanding the project area to include acquisition of his property. He believes that the "transition" area would work better if it were in the back yard of a residential property rather than the front yard. Discussion/Decision Mode: The study has recently been completed and it would be desirable to continue the momentum. Respec Ily submitted, J s . Prosser City ager JDPcak 40 Public Meetings Lyndale Gateway Study August 8, 1995 7:00 P.M. Planning Commission Study Session review of process. September 6, 1995. 7:00 P.M. Information meeting - businesses. September 7, 1995 7:00 P.M. Information meeting - residents. September 12, 1995 7:00 P.M. Planning Commission Study Session review results of meetings with business people and residents. September 12, 13, 14, 1995 Interviews with businesses, large property owners and abutting residents. September 26, 1995 8:00 P.M. Workshop - Planning Commission/City Council/HRA. October 24, 1995 7:00 P.M. Planning Commission Study Session review alternative concept plans. November 9, 1995 7:00 P.M. Corridor meeting - residents, (6:00 P.M. Open House) businesses, Planning Commission/City Council/HRA. November 14, 1995 6:00 P.M. Workshop - Planning Commission/City Council/HRA. January 17, 1996 7:00 P.M. Corridor meeting - businesses. January 18, 1996 7:00 P.M. Corridor meeting - residents. (6:30 P.M. Open House) January 23, 1996 7:00 P.M. Workshop Planning Commission/City Council/HRA. April 9, 1996 7:00 P.M. Planning Commission Study Session review draft report. April 23, 1996 6:00 P.M. - Planning Commission presentation of report to residents, businesses. 0 THE LYNDALE GATEWAY City of Richfield, Minnesota n A Redevelopment Plan and Strategy PLANNING COMMISSION RECOMMENDATION May 13, 1996 ©® Hoisington Koegler Group Inc. Table of Contents 1.0 THE LYNDALE GATEWAY 1 2.0 EXECUTIVE SUMMARY 3 3.0 THE FRAMEWORK 4 Setting Existing Land Use Parking Traffic Aesthetics Building Conditions Opportunities/Constraints Property Values 4.0 THE MARKET 9 5.0 STAKEHOLDER INPUT/RESULTS I I Individual Meetings Public Information Meetings Corridor Meetings Results (brief) Problems/Opportunities Guiding Principles Criteria 6.0 THE POSSIBILITIES 15 7.0 THE CONCEPT PLAN 16 8.0 DESIGN GUIDELINES 18 9.0 COSTS AND FEASIBILITY 21 10.0 A STRATEGY TO GET IT DONE 23 Development Strategy Development Guidelines Interim Recommendations (to correct existing problems) 11.0 APPENDICES 27 • ? Credits Planning Commission Daniel Linnihan, Chairperson Pamela Dmytrenko Timothy Erlander David Gepner Mitchell Hadley Kevin Hansen Dawn Postudensek Kristal Stokes Paul Wasko City Council Martin Kirsch, Mayor Michael Sandahl Susan Rosenberg Russ Susag Donald Priebe Housing and Redevelopment Authority Thomas Harms, Chairperson Joan Helmberger Vem Luettinger Russ Susag Michael Sandahl 40 0 • 1.0 The Lyndale Gateway "When we look at the most heautiful towns and cities of the past, we are always impressed by a /eeling that they are somehoworganiLlach ofthese townsgrewasa whole, under its own laws of who%ness..and we can /eel this wholeness, not onyat the /argestsca/e, hut in everyMad- in the restaurants, in the sidewalks, in the houses, shops, markets, roads, parks, gardens and walls Even in the ha/conies and ornaments " Christopher Alexander, A New Theory of Urban Design Cities consist of, a number of parts each playing a distinctive role in how the city is perceived and experienced and how it functions. Together, the parts comprise something greater than the whole so if the parts complement the whole they reinforce and expand people's recognition and memory of the community. If elements detract from the city's image, character or well-being, they make the sense of community more difficult to comprehend. The problem with most cities, especially suburban cities, is that they do not have a sense of place from which meaning can be readily understood. They do not have a center. They do not have distinct edges. They simply blend into the suburban fabric that rolls endlessly across the landscape. They deprive those who live in them from enjoying a community of meaning. Perhaps, suburbia represents the grand quest for anonymity. Anonymity and homogeneity provide neither richness nor community identity. Lacking a sense of community identity, it is often difficult to know what role each of the city's parts must play if they are to contribute to the experience of the place. Is it important to live and do business in a place that is distinctive, recognizable and memorable? Yes! Communities that have no recognizable character and allow unfettered and mindless growth have no soul. While strip commercial development and other land use travesties flourish, the community image suffers. In memorable communities, each element contributes to the whole and the value of the community grows. Every aspect of the community must contribute yet each must have meaning and a subtle identity in its own right. Each must have a focus and be distinguishable from its surroundings. Christopher Alexander tells us that there is a connection between healing and wholeness, that we have countless opportunities to take small healing steps to move the city in the direction of wholeness. "Every increment of construction must be made in such a way as to heal the city." Further, according to Alexander, "Every new act of construction has just one basic obligation: it must create a continuous structure of wholes around itself." As a community gateway, Lyndale Avenue is an important part of the whole City of Richfield. It is here that at least one opportunity exists to reinforce the sense of place while creating value for the surrounding neighborhoods and the community. It is here that first impressions will be etched on the minds of City visitors. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 1 The Lyndale Avenue Corridor, beginning at 77th Street, should be thought of as distinctive and different from the 1-494 corridor which harbors the Shops of Lyndale. 1-494, and the uses it birthed, are elements of a regional community, a metropolitan economy. Though literally within Richfield, the Shops of Lyndale serve a regional clientele and must offer copious parking and low prices as an inducement to travel long distances to shop. The Lyndale Avenue gateway to Richfield (there are others) begins at 77th Street and, should extend no farther north than 74th Street. It is distinctive because it is commercial in use while the area that surrounds it is residential. It is also deficient in many respects. in fulfilling its gateway potential. It is substantially deficient in parking and properly values are declining. It is deteriorating aesthetically and is evidencing blight which contributes to vacancies, high-tumover and low rents. If left unattended, the deterioration of the center will adversely affect the neighborhood and become a serious liability for the larger Richfield community. It must be made to contribute to the City's sense of place. Healing it represents a small step toward community wholeness. The objectives of the Lyndale Avenue Strategic Development Plan are to: • Create a distinctive gateway which contributes to Richfield's sense of place. • Arrest blight within the Lyndale Avenue commercial area. • Improve compatibility between the Lyndale Avenue businesses and the immediately proximate neighborhoods. • Define a strategy to foster corridor improvements. • Involve residents and business persons heavily in the formulation of plans and their implementation. • This plan was prepared under the direction of the City Planning Commission with Consulting assistance from Hoisington Koegler Group Inc (HKGi). It, therefore, represents the Planning Commission's recommendation to the Housing and Redevelopment Authority (HRA) to implement the redevelopment strategy and to the City Council to amend the Comprehensive Plan to reflect mixed use development in the Lyndale Avenue corridor. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 2 0 • 2.0 The following represents a summary of the significant findings, conclusions and recommendations of the Lyndale Avenue Redevelopment Plan and Strategy: one row of houses both east and west of the existing commercial district in the 7600 block and the east side 7500 block near 76th Street. 1. Lyndale Avenue is an important gateway to the 8. The recommended hybrid plan balances City of Richfield. The Planning Commission economic realities with public input. It includes recommends that improvements be made to the redevelopment of the 7600 block, east and enhance the Lyndale Gateway. west sides, including the west side of Garfield Avenue and the east side of Aldrich Avenue. 2. The commercial area extending from 74th to 77th Streets is experiencing a growing level of stress including eroding property values, increasing tenant turnover, building vacancies, insufficient parking and poor appearance. The area of greatest concern is the 7600 block, both east and west sides. 3. The immediately adjacent residential areas remain stable but will be increasingly affected by the commercial district. 4. The Lyndale Avenue planning process included individual meetings with most businesspersons and immediately affected residents. It also included several public meetings to obtain input and review plan alternatives. 5. Residents and businesspersons identified parking, appearance, alley conflicts, traffic, lack of I I maintenance, high turnover and uncertainty about City plans as the problems most needing to be addressed by the City. 6. There is a market for smaller office buildings and both neighborhood oriented and destination retail, some of which could be captured along Lyndale Avenue. 7. A total of eight alternative plans were considered ranging from "do nothing" to complete redevelopment. Two of the alternatives included the expansion of the district to include 9. The Planning Commission recommends an integrated mixed use development with shared parking, that consists of commercial, office and residential development while offering maximum protection for the adjacent neighborhoods. The Commission prefers several smaller developments and, wherever possible, the inclusion of existing businesses. 10. The recommended strategy is to market and redevelop the 7600 block east and west sides by year 2001 and to be prepared to respond to redevelopment proposals elsewhere in the corridor. For the area north of 76th Street, this document represents a concept rather than an implementation strategy. The Planning Commission strongly recommends the use of Tax Increment Financing (TIF) as the primary redevelopment funding source. To the extent possible, funding sources other than TIF should also be explored by the HRA. 12. The Planning Commission recommends that several existing neighborhood problems be resolved whether or not they are dictated by redevelopment. The Commission recommends City intervention with the land acquisition process where and when appropriate to eliminate hardship and/or keep the project on track. Executive Summary Lyndale Avenue Corridor • Planning Commission Recommendation • Page 3 0 3.0 The Framework Richfield is a unique community for a number of reasons. One reason is that all but one of its edges is defined by a major highway that separates it from its municipal neighbors. Yet another, highway (1-35W) traverses its center exposing the traveling regional public to the City's most prized natural resources, Wood Lake and the stands of mature oak that grace the highway's west flank. Even with these attributes, do passersby realize that they have arrived in Richfield? Are there any clues signaling the change in jurisdiction? No! Such is the state of modem suburbia where it is impossible to differentiate one community from the next. Because Richfield is juxtaposed to several regional highways, it has relatively few opportunities to establish gateways to the City. One of the most important of these is Lyndale Avenue at 77th Street. Lyndale Avenue, between 74th and 77th Streets is a commercial strip, a collection of disconnected retail goods and service businesses, many of which were birthed in the 1940's when Lyndale Avenue was much narrower and customers shopped much closer to home. Like centers of its era, it originated to service the neighborhood and it contained some very prosperous merchants. It first lost its power over the marketplace and then lost businesses to larger regional retail centers. It then lost even more when the widening of Lyndale Avenue eroded parking at the same time parking demands were increasing, all attributable to growing public dependence on the automobile. The end result is a center than no longer meets contemporary retailing standards, is not competitive in the marketplace and is virtually impossible to revitalize without public intervention. With a few exceptions, the value of buildings has eroded, creating opportunities for incubator businesses which are dependent on low rents while creating a grooving liability for the City's tax base and image. Until recently, the neighborhoods that surround the center have been able to sustain themselves in spite of the conflicts associated with shared alleys, unwelcome odors and growing unsightliness. As successful businesses continue to depart the center and are replaced by less desirable merchants in search of low rents, will the stability of the neighborhoods also be threatened? Lyndale Avenue Corridor • Planning Commission Recommendation • Page 4 • • Land Use The Study Area extends from 74th Street to 1-494 and embraces both sides of Garfield and Aldrich Avenues. The predominant land use fronting Lyndale Avenue is commercial with retail, auto and service uses predominating. Significant uses include the Metro Dental Clinic, Super America, Amoco and Dairy Queen. Garfield and Aldrich Avenues are single-family residential in use and virtually all are homesteaded properties. The Century Court Apartments and the Woodlawn Terrace Mobile home park have frontage directly on Lyndale Avenue on the east side of the 7400 and 7500 blocks. The land use pattern varies from block to block with relatively intense commercial development in the 7600 block where buildings are connected or closely juxtaposed. Elsewhere in the corridor individual buildings occupy separate sites. The west side 7600 block contains some two-level space with apartments and office above retail. This block evidences a great deal of physical stress including too frequent merchant turnover and building vacancies. Most of the rest of the corridor has excellent business longevity and only infrequent vacancies. Land use south of 77th Street is remarkably different in that it is very large in scale, is of recent vintage and caters to regional traffic. Uses include the Hampton Inn (east side) and the evolving Shops of Lyndale. These developments occupy large sites and are being built to reflect "contemporary" standards including large buildings with large parking lots in front. Though located in Richfield, this area relates more to the regional 1-494 community than to the City of Richfield. °d 0 •' mm c! I I a I I . a I o ?I I I I I nl rK=-= l °°.? .o I I I I I ?• ? I I I I I I :D I• •- LEGEND Residential Commercial Single-Family a Auto -Vacant Multi-Family - Retail an Redeveloping Mobile Home - Service an Greenway a. 7 EXISTING LAND USE '.• .': serer b.e.. a»o a,. ¦ Lyndale Avenue Strategic Development Plan Richfield. lli-esot? Lyndale Avenue Corridor • Planning Commission Recommendation • Page 5 Structural Conditions and Values The condition and inflexibility of buildings and eroding values are the most significant problems currently existing within the corridor. Building values are declining though land values continue to increase. In actual dollars, buildings have decreased in value since 1990 while land has increased in real dollar value since 1985. The area where the most significant problem exists is the west side of the 7600 block. TABLE I REAL ESTATE VALUES YEAR LAND VALUE BUILDING VALUE TOTAL VALUE 1985 $1,378,100 $2,644,500 $4,022,600 1990 $1,847,800 $3,002,600 $4,850,400 1995 $2,271,100 $2,932,900 $5,204,000 Source: Hennepin County Appraisal Office, • • Lyndale Avenue Corridor • Planning Commission Recommendation • Page 6 LI r? U • Parking The next most significant problem facing the corridor is the lack of convenient and accessible parking. Nowhere in the corridor is this problem more pronounced than in the west side 7600 block where the parking ratio is approximately two spaces per 1,000 square feet of gross floor area and a substantial part of that is located behind buildings where it is not visible to passing motorists. Furthermore, the parking that does exist on the Lyndale Avenue side occurs either on the street at the curb line or near the storefronts on the sidewalk where it conflicts with pedestrian traffic. Parking in the east side of the 7600 block is more favorable having a ratio of approximately 3.7 spaces per 1,000 square feet of gross floor area. However, Lyndale Avenue is proposed to be widened to accommodate the expansion of the 77th Street intersection. This widening will eliminate parking in front of the stores on the east side, whose addresses include 7615 through 7633, creating a situation not unlike that immediately across the street. Parking within the remainder of the corridor is generally more favorable although the Metro Dental Clinic has a 20 to 25 car deficiency which is met with on-street parking in the adjacent residential neighborhood. This deficiency is primarily attributable to the use of the building for the Metro Dental administrative offices, which use occupies a considerable portion of the building. The deficiency persists in spite of approximately 24 parking spaces in the lower level of the building. This problem will not be easily corrected due to an unusually high demand for parking and the absence of land to accommodate it. n it Jei i .? l°. ? P!?RHING X'! I r a Ly.dale Avenue g tratePic Development Plan Richfield. Minnesota Lyndale Avenue Corridor - Planning Commission Recommendation - Page 7 LEGEND ® Tow Park 4 SPacea Available Peals Par]]???? Demand (Betveea 12:OD -2:00 P.M. and "0 - ?:00 pm) • 0 • Traffic Traffic in the Study Area is not particularly problematic attributable to the construction of 77th Street which has halved the volume of traffic on 76th Street to approximately 6,000 AADT. Volumes on Lyndale Avenue approximate 12,000 AADT. Some traffic is, however, purported to use Aldrich Avenue to avoid the signal at 76th Street and Lyndale Avenue. Summary There are major forces at work in the marketplace and the corridor that will continue to erode the quality and function of the Lyndale Avenue business community. In other words, it is not now experiencing stability nor will it in the future. It is continuously changing in the direction of decline. Unfortunately, these forces are irreversible without public intervention and landowners, themselves, have virtually no ability to after this trend. This is particularly true in the 7600 block west side where considerable private improvements would produce too little increase in rents to warrant significant investment. Should we "hope" that the situation will correct itself? If we do, things must get a lot worse before they will get better. The question is not "whether" but "when" public money will be spent to correct the problems associated with Lyndale Avenue. And the timing of intervention will correlate with the public's perception that a problem exists. In fact, this perception already exists in the minds of many. It will grow in more minds as the appearance of the area declines, as marginal or undesirable businesses replace those that depart, as the commercial tax base erodes placing an increasing burden on the City's taxpayers and as the adjacent neighborhoods begin to take on the blighted characteristics of the retail district. r i? i ?- I l I.` is I' P° • • • Sidewalks ?j? Transportation Corridor Signalized Intersections ?;f3> r? ?I ?i ll -I I o I g I R I TPUMNSPORTAnON a! it r a Lyndale Avenue Strategic Development Plan Richfield. Minnesota Lyndale Avenue Corridor • Planning Commission Recommendation • Page 8 LEGEND • Reslderltlal dlstr"t I "ll defined and ate Inters"Won at '14th opportunlty to Introd Lyndale oonnrralal Intors"tloro provide Iink the cent nek 4p+dole %r Lighting to utllltcrian scale. Dater Of Lundole var!ee groatkj block to block. north of ?6th Qe naeoendsnt its?oncea. ' +age is chaotic throvejfout the rice. • Residential district k hell defined Ord sta Alley defines an edg ornnnerclol. Porking Is disjoined corneated to adJaae The corrfclw locks a Uraughout the conene Areas behind ?600 e servlce oriented. oaro" to Rlehfleld e evidences load- " confllats. betraen storefronts no Barron smm ay the dvtonloelle. ill odenin at Lundato provides twh pargal into RnJMie?d. dy scale, develoomw: more or :me Preewau aorr!dcr f :he, aorrminlty of Ilcrf!eid. Opportunities and Constraints Lyndale Avenue Strategic De-.elopment Plan • Richfield. Minnesota Y0RTIs 1* = 400' HoLILp a Soetler Group Ina 0 • 4.0 The Market Maxfield Research Group, Inc. was hired as a subconsultant to HK Gi to assess the current market situation for commercial businesses in the Lyndale Avenue corridor (Study Area). The firm identified draw areas appropriate for both neighborhood and specialty retail goods, analyzed the current strength of the competitive retail concentrations near the corridor, analyzed employment growth in the southwest sector of the Twin Cities Metropolitan Area and assessed the current strength of the market for office space, particularly small and medium-sized users. Conclusions focused on the demand for additional retail and office space in the south metro area, the strengths and weaknesses of the existing retail and office space in the corridor, and the potential for this area to attract new development given various redevelopment options. The study included interviews with 20 businesses within the corridor to determine how long they had been in business on Lyndale, from what distance they draw their primary customer base, and the effect of the Lyndale Shops development on business within the corridor. The survey found that most businesses draw customers from either the south metro area (Bloomington, Richfield, Minneapolis and Eden Prairie) or from the entire Metropolitan Area. In one case, the retailer draws customers from a five-state area. The market study concluded that the 1-494/Lyndale Avenue area will continue to be a strong location for retail goods and services, but the greatest areas of growth will likely be destination retailers who are able to draw customers from rather considerable distances. The study concluded that there is a market for smaller office buildings and approximately 60,000 to 80,000 square feet should be able to be captured within the City. The study recommends smaller buildings which do not compete with the Meridian Crossings building located at 1-35W and 1-494. The study also identified potential for medical/professional office space. Approximately 80,000 square feet of neighborhood oriented retail space demand was calculated. Of that total, the Lyndale Avenue corridor was estimated to be able to capture between 25,000 and 35,000 square feet. Maxfield Research also identified a remaining demand for between 75,000 and 135,000 square feet of neighborhood/destination retail in the market area. Some amount of that could be captured in the Lyndale Avenue corridor in smaller buildings. Potential neighborhood retail uses and destination retail/specialty uses were identified as shown in TABLE 2. The demographic evaluation found that the population within a five mile radius of the Lyndale Avenue corridor declined between 1980 and 1995 attributable to the aging of the population and shrinkage in household size. The population within this area is projected to decline even further between 1995 and year 2000. However, the population of the trade area within a ten mile radius of the corridor is projected to grow significantly during this timeframe. Maxfield Research Group also reviewed the preliminary redevelopment options developed by the lead consultant HKGi for market veracity. They concluded that Alternatives 213 and 3A (refer to page 15 for descriptions) with parking facing Lyndale Avenue offer the best opportunities from a market perspective. These represent configurations that are often preferred by developers. Maxfield Research also concluded that housing above retail may not be feasible unless it includes multiple stories. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 9 TABLE 2 0 Potential Neighborhood Retail Uses Types Take-Out Restaurant Ethnic, Pizza, Fast Food Sit-down Family Restaurant Personal Services Hair Salon Specialty Health and Beauty Mailing/Copying Accounting/Tax Insurance Tailoring Dry Cleaners Travel Agent Film Processing Card/Gift Shop Deli/Convenience Store Video Rental Liquor Store • Drug Store Coffee Shop and Bakery Child Care Potential Destination Retail/Specia4 Uses TvDes Home Furnishings-Interior Decorating/ Upholstery Electronic Equipment Automotive Supply Liquidators Sporting Goods Equipment/Rental (new or used) Dance or Fitness Studio Computer Software, Music, Books Home Crafts Machines and Instruction Computers (new and used) Other Specialty Retail Stores Lyndale Avenue Corridor - Planning Commission Recommendation - Page 10 • • 5.0 ? Stakeholder Input/Results The success of any project is dependent upon good communications between the city and its residents and the involvement of people who live and work in the community. The reason for this is because there needs to be public "buy-in" or support for the project. Stakeholder involvement was actively encouraged by the Planning Commission and solicited before plans were drawn and throughout the process so stakeholders could play a positive role in shaping plans for the corridor. All information about the project was disseminated through a series of meetings, workshops and three newsletters. (The newsletters which have informed and encouraged communication and interaction between the City, its residents and businesspersons are included in the appendix.) The process for getting at stakeholder involvement is described below. Individual Meetings The Planning Commission and Consultant met with virutally every neighbor and businessperson within the corridor (excluding the Century Court apartment residents) to explain the project scope and listen to problems and concerns. Efforts were made to contact all 83 residences and 50 businesses on September 12, 13, and 14. Approximately 44 businesspersons and 52 residents responded. In general, businesspersons indicated that location and low rent were the reasons for locating in the Lyndale Avenue Corridor. The one problem agreed upon by almost all respondents involved parking deficiencies. Suggestions for improvements included facelift, parking, appearance and small scale businesses. INDIVIDUAL MEETING RESPONSES Businesses/Owners Reasons for Locating ¦ Visibility ¦ Accessibility ¦ Location ¦ Low Rent Improvements Alternatives Improvements Suggested Suggested ¦ Parking ¦ Convenience ¦ Facelift Stores ¦ Uniformit ¦ N i hb y Q e g or- ¦ Cl lkl ¦ N S problems eanup ext tep hood Shops I Parking ¦ Improve ¦ Small Scale ¦ Appearance Signage ¦ Facelift ¦ No Room for ¦ Smaller ¦ Improve Expansion Businesses Appearance 3 Turnover ¦ Uncertainty (re: City's plans) • Lyndale Avenue Corridor • Planning Commission Recommendation • Page 11 Residents Traffic Lack of Maint. Parking Crime (Pauived) • Public Information Meetings The Planning Commission held Public Information Meetings for the adjacent neighborhoods and members of the business community to explain the project purpose and scope, elicit ideas and take initial input. These meetings were held on September 6th and 7th. Approximately 40 businesspersons and 60 residents attended these sessions. A series of questions were asked to get at specific issues. In general, the meetings were very positive. Residents, more than businesspersons, think the area needs to change. Opportunities included accessibility, high visibility and low rents. Challenges included parking, conflicting use of the alley, appearance, signage, backs of buildings, and the lack of room for expansion. Issues consisted of land use compatibility, loss of existing businesses, the City's needs vs the businesses needs and understanding who decides. Factors. identified as important in evaluating aftemative concepts included appearance, pedestrian accessibility, parking, residential compatibility, traffic/accessibility, economic feasibility, who will pay, loss of existing business, convenience services and public input. PUBLIC MEETING RESPONSES OPPORTUNITIES CHALLENGES ISSUES • ¦ Accessibility ¦ Parldng ¦ Who Decides ¦ High Visibility ¦ CouMctingUses of ¦ City's Needs Y3 ¦ Low Rents Alley Business Needs ¦ Appearance ¦ Land Use (Buildings/Signs) Compatibility ¦ No Room for ¦ Loss of Expansion Businesses ¦ Don't Trust City FACTORS TO BE CONSIDERED IN EVALUATING ALTERNATIVES ¦ Appearance ¦ Economic ¦ Pedestrian Feasibility Accessibility ¦ Who Will Pay ¦ Parking ¦ Loss of Existing ¦ Residential Business Compatibility ¦ Convenience ¦ Traffic/ Services Accessibility ¦ Public Input • Lyndale Avenue Corridor • Planning Commission Recommendation • Page 12 • 0 • Guiding Principles The input received from both the individual and public meetings provided the basis for the Guiding Principles. The guiding principles were principally derived from empirical observations, the review of background information and listening to both businesspersons and residents talk about the Lyndale Avenue Corridor. They are based on what the Planning Commission learned by seeing, listening and reading. These guiding principles were established early in the process as a way to guide the development of the plan and focus the project on a set of commonly accepted themes and ideas. Ultimately, these guiding principles will serve as criteria by which future development proposals can be judged. They are listed below, in no particular order, as follows: Ar Open the Gateway to Richfield - This area introduces residents and visitors to Kchfie/d at one of the few points of entry from the outside. It should welcome and invite people, revealing the true character and spirit of the Achfeld community a Improve the function of the Area - Business accessibility is made possible through the relationship of the transportation corridors, sidewalks, alleys and parking areas. Safe and effective streets, parking areas and alleys will reduce congestion and parking problems; will improve safety and access and will encourage people to park in one spot and shop at several stores. Ar Invite the Pedestrian - While a business district may receive most of its `traffic" in the form of the automobile, the pedestrian mode is Me primary form /n which customers directly access businesses. A comdorshould be active, inviting and confusion-free to the pedestrian, allowing all persons the opportunity to reach and explore the business area. i Make Existing Business Persons and Land Owners a Part of the Solution - There are some business persons and land owners who will be affected by this process more dean others. No matter the outcome ofthe planningprocess, some businesses and owners may not be able to be part of the solution. To the extent possible, consideration should be given to having existing business persons and owners play a role in the redevelopment of the commercial area. jr Keep the 'Smallness" Feel - The Lyndale Avenue corridor is defined by the small, independent buildings, distinctly different from the large box anchor store developments along 1-494. This smallness feel should be maintained as a character of the corridor to make It feel like Richfield ff Serve the Neighborhood - This area is comprised of a commercial area, embraced almost entirely by neighborhoods; establishing a closely-knit district. Services which meet the local neighborhood needs should be encouraged to maintain a connection between these areas Make Good Neighbors - The Lynda/e Avenue Corridor encompasses a range of uses /nduding a variety of businesses and dwelling units. An environment which fosters compatibility and harmony between uses will result in a healthy, vibrant community. Ar Involve People - Both residents and businesses have a stake in the results of this process. Involvement throughout the process is a key ingredient forsuccessful outcomes All parties shou/d be continuously involved to identify the full range of perspectives. Make it Connect - The Lyndale Corridor includes a wide array ofindividual businesses. These should be knit together into a commercial district, creating a sense of unity and cohesiveness. i Make it Happen - Any project needs to demonstrate the economic feasibility to both business persons and the City. Any plans for the Lynda/e Avenue corridor should include well planned, feasible options. Lyndale Avenue Corridor - Planning Commission Recommendation - Page 13 • • 0 Corridor Meetings The Planning Commission conducted two Corridor meetings as part of the public participation process. Corridor Meeting # I Over 100 people attended Corridor Meeting # I at the Oak Grove Lutheran Church on November 9th. At this meeting, residents and businesspersons were asked to review criteria and eight altemative plans for the Lyndale Avenue business area. Both the criteria and plans were derived from the Public Information Meetings held on September 6th and 7th. In all, thirteen criteria were developed. Small groups were asked to identify the four criteria they felt were the most important in evaluating plan alternatives. The most frequently selected criteria were as follows: • Appearance • Parking • Residential Compatibility • Residential Impact The second portion of the Corridor Meeting asked residents and businesspersons to identify all of the plan alternatives they were willing to support. (See section 4 under options for an explanation of the alternatives). The following conclusions were reached from the participants' responses to the plans: • In general, there is a willingness to look at alternatives which relocate businesses. • There is a strong sense that something physical needs to change but there is also concern for impacts on people (residents and businesspeople). • Based on the total number of responses, Alternatives I and 2 received the most support. However, preferences of the groups for their own block suggested support for alternatives 3, 4 and 5. • There is relatively little support for doing nothing. Corridor Meeting #2 The City Council, Housing and Redevelopment Authority, and the Planning . Commission held Workshop #2 on November 14th at the City Hall to discuss the results of Corridor Meeting # I and to provide direction to the Consultant. Based on this meeting, the Consultant was instructed to prepare more detailed drawings which represent a hybrid of the preferred altematives. This hybrid includes elements of alternatives 1, 2 and 3. Alternatives 4, 5 and 6 were not consistent with the criteria established by the group at Corridor Meeting # 1. Corridor Meeting #2 provided an opportunity for people to review and comment on the composite plan. Corridor Meeting #2 was divided into two sessions, one for corridor businesspersons and the other for area residents. The purpose of Corridor Meeting #2 was to ask residents and businesspersons to review the Hybrid Plan and Strategy and identify good and bad points. The results of Corridor Meeting #2 are included as Appendix A. Meeting With Developers The process included one meeting on January 10, 1996 with several developers to test the alternative plans. The original intent of this session was to evaluate two or three story potential with office or residential over retail. The outcome was much broader than expected. Developers recommended that the City's role should be: 1) to educate the public about the economics of business and redevelopment, and 2) to set broad guidelines for redevelopment while leaving substantial flexibility and creativity to the developer. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 14 • F1:1 6.0 The Possibilities In all, eight alternative concepts were generated and evaluated by the Planning Commission ranging from complete redevelopment to do nothing. The following provides a brief description of each. These alternatives were evaluated using the criteria that were established by participants during the public information meetings. The results of the evaluation are included as Appendix A. Alternatives Facade, sidewalk and parking improvements all to be done within the existing zoning district. Most businesses will remain, however parking will be developed at midblock locations where buildings are vacant or underutilized. • 2A & 2B Redevelopment within the existing commercial district. Buildings could be located either at the back or front of the lots. Parking areas are consolidated and visually accessible. 3A & 3B Redevelopment in an expanded commercial district. The business area is expanded in the 7600 block and the east side of the 7500 block near 76th Street. Buildings could be located either at the back or front of the lots. The amount of development is increased. 4 Similar to Alternative I, however, existing buildings are encouraged to expand, be rehabilitated or redeveloped with consistent materials. Facade and streetscape improvements only. Fronts of buildings will be improved and landscaping will be placed along the streets. No increase in parking. 6 Do nothing. The business area remains as it is. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 15 • • 11 7.0 In many ways, this district is seen as one of the important gateways to the Richfield community. As an introduction to the community, it seems it should reveal something of the character of the community, showing Richfield as a place of neighborhoods and commerce in a "hometown" atmosphere. As the area redevelops, it makes sense to try to instill some of the qualities and character of the community into this district. The Concept Plan strives to create a gateway district, building from a framework of design guidelines based on neighborhood and business community input, research on development feasibility, and the ability of the City to shape development. The plan that is shown in this report can only be a guide for redevelopment; it provides the framework within which redevelopment can occur that supports the community-derived guiding principles and the opportunities and constraints presented by what exists. This plan will be used by the City to market the area, helping potential developers understand the direction created through the process of working with the community. And, as development proposals are brought to the City, the Concept Plan and associated design guidelines will be used to evaluate the proposals. While the built result may not match the plan exactly, its underlying character must be maintained in order to match the community's vision. In the plan, the entire redevelopment area is recognized as the gateway, so a strong identity must be established. Two factors are critical: boundaries and continuity. The boundaries have been defined to signal the point at which you enter the district, and also set the limits of commercial development. It is equally important to create continuity through the district, while buildings will be different in size and The Concept Plan use, there must be elements that they have in common, and the public space of the district must be developed in a uniform manner. With boundaries established and elements defined that establish continuity, the district gains cohesiveness and a sense that it is whole. Development in the district should be oriented to a mix of retail/commercial and office uses, with opportunities for some higher density residential uses in combination with retail or office. The district will support businesses that serve the neighborhood, as well as those that orient to the more regional market with specialty stores and services. Within this mix of uses, the opportunity for joint use of parking is created, allowing a customer to move from store to store without relying on their car. Residential development is an important element of the plan. While residents represent a market for nearby businesses, many people actually prefer to live in mixed use areas that offer convenient shopping, working and entertainment opportunities. The southeast comer of 74th Street and Lyndale Avenue is intended to satisfy this need. The Audio Perfection and Woodlawn Terrace sites offer unique opportunities for a variety of urban housing types. Whatever the use, it is intended that buildings be the focus of development, not parking lots. This allows the built form of the district to help set its identity, and provides for convenient movement for pedestrians as they do not have to cross parking lots to reach sidewalks or storefronts. Buildings that are close to the street are critical to this concept, which dictates parking that is located behind or beside buildings. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 16 The intersection of 76th Street and Lyndale Avenue becomes important, as 76th Street provides the most direct connection to the adjacent neighborhoods. Buildings surrounding this intersection should be the two or three stories, reinforcing its place as the heart of the redevelopment district. Taller buildings should extend south of 76th Street as a transition to the larger commercial uses along 77th Street and Interstate 494. The scale of the buildings decreases north of development at 76th Street and Lyndale Avenue, creating a transition to the residential areas at the edges of the district. The neighborhoods surrounding the district are critical to its success. Although they must be strongly connected to it, they must be sheltered from any negative influences of commercial activities. In the plan, physical separation and visual buffering is shown at the common boundaries between the redevelopment area and the neighborhood. To respect the place of the commercial area in the community, this district should not exist in isolation from the neighborhoods that support it. Therefore, the plan shows development of a pedestrian system that reaches beyond Lyndale Avenue along 76th Street and 74th Street to link to the neighborhoods. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 17 1 tip • • M-, .V $ L? m co ca ?. JU m -- a 8a D T T 7 CD D 33 m? cl) CD pop 0 CD CO) I I VX w 1 I f_ ! L ) J-v _p 6? 6? M :1 -N O •r ? > T = ei 6 J ? 4 S eS . y ?. max, r? ?yv? ? a 6 E "To 6 1 ?wD biz r ? ?<0 ?=-ml D ry e I . c I i 'l I 11 ? t /r • i l; i 0r 41 n ?. =r 0 CD n CD 3 n CD CO) .0 l 1 ?vV • T o ? _! V ' N 1 w I i I1 { ? a ro r 0 r? LJ 8.0 Design Guidelines In order to achieve the intent of the Concept Plan and generate development that supports the guiding principles the Planning Commission recommends the following design guidelines. While development may not exactly follow the patterns shown in the Concept Plan, plans must be consistent with the design guidelines. Guidelines have been developed for public spaces, sites and buildings. Public Spaces Develop a consistent strreetscape through the riedevelopmentarea to define its limits, to establish a signilcant sense ofa district, and to create a more active street environment for pedestrians and cars • Use pedestrian scale streetlights at a regular interval at all streets within the redevelopment area • Provide pedestrian amenities (benches and trash receptacles) at logical locations along Lyndale Ave • Require ornamental fences and plantings to screen parking areas from street views • Plant street trees at a regular interval at all streets within the redevelopment area • Plant other plantings to create highlights at pedestrian oriented spaces, building entries and other focal areas • Establish a method of maintaining streetscape improvements that is common for all properties in the district Mark the entries to the redevelopment area to reinforce its identity as a district • Establish markers on both sides of Lyndale Avenue at 76th Street and 74th Street • Establish markers on 76th Street at the southeast comer of 76th Street and Aldrich Avenue, and at the northwest corner of 76th Street and Garfield Avenue Create spaces that are not buildings or parking areas to create interest in the patterns of development and to provide places for pedestrians away from busy streets Create small "pocket plazas" between or beside buildings that could be used for outdoor restaurants, eating areas or gathering spaces, and to create links between parking areas and the street; develop these spaces to make them feel like an extension of the street (similar paving, lights, benches) Encourage the development of a farmers market that could use portions of larger parking areas at off-peak parking times Establish sidewalks continuously through the district to provide for uninterrupted pedestrian circulation • Provide sidewalks exclusively for pedestrian use along Lyndale Avenue • Extend walks from Lyndale Avenue along 76th Street and 74th Street to the limits of the district • Extend walks south of 77th Street to the main entries of the Shops at Lyndale and the Hampton Inn Close 75th Street between Lyndale Avenue and Aldrich Avenue to eliminate the potential for "short cuts "through the neighborhood • Reroute the alley to reach Aldrich Avenue • Use the right-of-way to allow for more intense development or to create additional parking Conlgure and locate parking to insure that buildings remain as the focus of the district • Discourage parking in front of buildings, except where that parking might occur on the street • Place parking behind or beside buildings Lyndale Avenue Corridor • Planning Commission Recommendation • Page 18 • • Prohibit parking areas at street intersections Limit the use of free-standing signs and pylon • Make access to parking areas prominent and signs; encourage signs that are an integral part of visible from the street the buildings Create a buffer between the redevelopment area and adjacent homes to mitigate any negative influences of commercial activities in the district • Provide a 40 foot wide bermed and landscaped buffer strip with a five foot high fence (colored chain link) at the area south of 76th Street and at the northeast corner of 76th Street and Lyndale Avenue • Require a 15 foot wide landscaped buffer strip with a similar fence at all other areas • Establish a method of maintaining the integrity of the buffer that is common for all properties in the district Create parking areas to accommodate expected demand • Encourage the development of uses that creatively share parking by time of day amongst a variety of uses in order to reduce the total amount of land dedicated to parking • Maximize density in the district by discouraging the development of excess parking Combine access points from Lyndale Avenue in order to reduce potential conflicts • Allow a single access at Lyndale Avenue between 77th Street and 76th Street • Require 150 feet between access points at Lyndale Avenue and all other redevelopment parcels • Prevent access to parking areas from alleys; restructure alley access to serve only residential uses Develop continuity from site to site which will allow the buildings to be the focus of the district • Establish.a common palette of materials for use at all sites within the district (planting, lighting, paving) • Establish standards for site development that assure consistency through the district Buildings Develop a uniled character for the built environment to reinforce the sense ofa complete district emphasizing a character of a commercial village rather than a shopping center • Establish compatibility between buildings through similar massing, scale, bulk, and detail Allow for individual expression from building to building, to reflect a character of a district of individual shops and businesses rather than a strip center Require developers to demonstrate how a proposed building will be created that considers neighboring buildings Establish a character that is more about buildings and the street than parking area Place buildings at the street frontage at all locations within the district Create buildings that address the street, with front doors to the public space at the street as well as access from parking areas Use elements that are pedestrian in scale, as opposed to those that are meant to relate to automobiles and highways Avoid "formula "architecture in order to achieve a design that better reflects the community • Prohibit corporate colors, franchise patterns and buildings that are designed as signs; encourage creative design that relies on "found" character rather than introduced character • Require detail that is integral to the building, not elements that are applied to a standard building shell (such as clock, towers or "plastic" awnings) Develop buildings that relate to the district and people on all sides, not just the public sides, . eliminate a "back door" appearance of other commercial areas Avoid large, blank wall surfaces; encourage windows, doors or other means of articulating Lyndale Avenue Corridor • Planning Commission Recommendation • Page 19 large facades • Make building entries the highlight of the structure so it becomes obvious . that the development is related to pedestrians • Integrate mechanical systems into the design of the building • Provide trash storage areas that are completely enclosed and incorporated as a part of the building • Require that signs be incorporated into the building facade, windows or awnings; do not allow signs that extend more than 12" beyond the plane of the building facade or signs that extend beyond the roof line Develop taller buildings at some areas within the district to emphasize its role as a gateway and to provide focus at the center of the district • Allow two or three story buildings at the intersection of 76th Street and Lyndale Avenue and in areas south of 76th Street Require the use of high qualily building materials and methods to create a stock of buildings that is enduring • Utilize materials that are durable, easily maintained and attractive at close distances (from the sidewalk, for example); and materials that have an attractive pattern, texture and quality detailing • Encourage the use of brick, stone or high quality precast concrete; metals that are matte finish and neutral in color, with visible corner trim when used for exterior walls • Require the use of transparent glass at the majority of street level windows;. prohibit the use of mirrored glass at street level • Encourage canvas awnings; prohibit awnings of nylon or other synthetic materials, as well as those awning structures meant to be illuminated from within Lyndale Avenue Corridor • Planning Commission Recommendation • Page 20 L 9.0 1 1 Costs And Feasibility Project feasibility is a measure that has several perspectives, those of the tenant, the property owner, the developer and his/her banker and the City. The following is a statement of economic wisdom warranting consideration when planning a redevelopment project for the Lyndale Avenue Corridor: • "Do nothing" carries a cost. As commercial property values decline and the demand for public services continues to increase, the rest of the city must pick up the costs. This disinvestment will also adversely affect adjoining neighborhoods. • A prudent city won't participate financially where there is insufficient economic return on the public's economic investment. • Prudent property owners cannot make significant investments in properties unless they can raise rents to cover their costs. Rents are their only source of income. • Prudent tenants cannot accept higher rents without a commensurate increase in business to cover increased costs. • Cosmetic improvements alone will not generally improve function or generate more business. • Where rents are increased appreciably, many existing businesses will relocate. • Projects involving lesser amounts of improvement are those most able to accommodate existing owners and tenants. • In situations where values are declining and there is no private reinvestment and no public intervention, values and conditions will virtually always continue to deteriorate. Small property owners have a limited ability to reverse the trend especially in situations like Lyndale Avenue where maximum cooperation will be necessary. The project recommended as having the highest priority for redevelopment is the 7600 block east and west sides and the 7500 block east side near 76th Street. The following budget defines the possible costs associated with the 7600 block project(s) should it be redeveloped in accordance with the recommended alternative. TABLE 3 PROJECT COSTS - 7600 BLOCK WEST EAST Site Assembly Costs $3,641,500 $2,575,500 Site Improvements 87,000 86,000 Subtotal Engineering/contingency Administration $3,728,500 $2,661,500 745,700 532,300 447,420 319,380 TOTAL $4,921,620 $3,513,180 PUBLIC COSTS Streetscape (landscaping, furnishings, signage) $858,700 Design/contingency 172,000 TOTAL $1,030,700 Lyndale Avenue Corridor • Planning Commission Recommendation • Page 21 • • • The Planning Commission has considered several funding sources, the most imporant of which will be tax increment financing (fIF). Without TIF, almost no project which involves lasting structural change will be possible. The Planning Commission cannot offer a specific financing mix but recommends consideration by the HRA of some or all of the following methods of financing public improvements. For the redevelopment of Lyndale Avenue, a new redevelopment tax increment financing district is a potential funding tool. Assuming 138,000 square feet of new building space, approximately 1 /3 of which is rental housing and 2/3 commercial property, the principal available to the project would be $2.1 million and $2.4 million over 25 years if fiscal disparities is bom by the tax increment district. An option that could increase the available tax increment to the project would be to have fiscal disparities contributed from outside of the tax increment district. Over 20 years, the amount of increased increment as a result of not contributing from inside the district would support another $1 million in original principal for a total of $3.1 million. A rationale for relying upon other properties to make the fiscal disparities contribution would be that the LHN District will be decertified for taxes payable in 2002. The LHN captured value will increase the tax base of the City by almost $2 million in tax capacity at the time of the decertification and a potential annual increase of revenues to the City alone of over $500,000. Justification for using at least a portion of the LHN value for the fiscal disparities contribution of the Lyndale Avenue project is possible if one considers that the contribution required would amount to less than ten percent of the tax capacity of the LHN District and that future redevelopment will further increase the long-term viability of the City's tax base. However, if $3.1 million is available due to a contribution to fiscal disparities from outside of the new district, a portion of the Lyndale Avenue project still remains to be funded. If an additional ten percent of the LHN contribution to the City tax base were assigned to the Lyndale project, another $600,000 of principal amount would be available to the project for a total of $3.7 million. Other resources of revenue may be available including a grant from the Livable Communities Program, land proceeds from the sale of property and Municipal State Aid (MSA) funding. Competition for the former is expected to be very intense. TABLE 4 represents a listing of potential funding sources. TABLE 4 POTENTIAL FUNDING SOURCES Land Sale Proceeds $650,000 Project Tax Increment 2,100,000 Fiscal Disparities Contribution 1,000,000 Livable Communities 500,000 MSA Funds 250,000 Subtotal $4,500,000 This represents approximately 50 percent of the total project cost. To fund the remaining 50 percent, consideration could be given to contributing the entire remaining City benefit of the LHN District ($400,000 per year for 20 years) to the Lyndale Avenue project to cover the shortfall. This would = capture the school district or County tax revenues over the 20 year period. In addition, there will be a need to fund streetscape improvements throughout the corridor including landscaping, sidewalks, furnishings, entry features and signage. Some or all of this cost may be funded, with special assessments to benefitting properties. These improvements may need to be phased to correlate with redevelopment plans. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 22 0 1:1 • • There are seven strategies that will be important and are recommended by the Planning Commission to implement the Lyndale Avenue Plan. They include a redevelopment strategy, a corridor enhancement strategy, a strategy to correct current ills, a neighborhood protection strategy, a land acquisition strategy, a financing strategy and a land use control strategy. Each are described in more detail as follows: Recommended Redevelopment StrategX Because of the severity of blight in the 7600 block west side and the probable loss of parking in the 7600 block east side, attributable to the proposed widening of Lyndale Avenue, these blocks should be given redevelopment priority. The east side of the 7500 block also represents a redevelopment priority because it, like the 7600 block, takes houses on the west side of Garfield Avenue and should, therefore, be linked with the 7600 block regarding the timing of redevelopment. The primary purpose of these projects must be to correct or alter the structure of the commercial area,. rather than simply make it pretty, so that it can be competitive in the marketplace over the long-term. Objective l: Phase development to reflect economic realties begninning with the 7600 block and the east side of the 7500 block near 76th Street. Objective 2. Market and redevelop the 7600 block east and west sides and the east side 7500 block by the turn of the century (200/). The remainder of the corridor evidences stress but to a much lesser degree than the primary redevelopment blocks. Within this area, several of the existing businesses are expected to remain suggesting that there will be opportunities for 10.0 A Strategy to Get It Done relatively small redevelopment projects, perhaps some by present landowners. For this area, this document primarily represents a concept illustrating how it should develop rather than an implementation strategy. Objective 3 : Be prepared to respond to redevelopment requests at any time a proposal is made, considering the guidelines that are established by this plan. Due to the number of businesses and residences that may be displaced by the project, it will be especially important for the City to establish a course of action and follow it religiously. Recommended Action Steps include: Agreement by the City regarding what it can afford to bring to the project. Solicitation of developers as partners in the redevelopment effort. Developers should be selected based on reputation and experience with urban mixed use developments. Establish guidelines for developers including but not limited to: I ) Property purchase requirements. 2) Types of uses preferred. 3) Project limits. 4) Public involvement. 5) Performance criteria including the following: a) Screening of parking lots and service areas from residential view. b) No direct vehicle access to local residential streets. c) Restricted vehicle access to shared alleys. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 23 U LI • d) Minimal traffic increases on local residential streets. e) Provision for public transit. f) Maintenance of pedestrian connections to the neighborhood. g) Shared parking to minimize the total number of spaces while maximizing development potential. h) Retention of existing businesses wherever possible and feasible. 1) Degree to which the gateway is achieved. j) Degree to which potential nuisances are mitigated (odor, noise, debris). k) Economic feasibility. 1) Compliance with design guidelines. 6) Timeline/performance. • Continuous monitoring of the development and reporting to the neighborhood and business community on project status and any changes that might, from time-to-time, occur. Objective 4: Work closely with businesses in the corridor that are intended to stay and may wish to make substantial improvements in an effort to insure that they comply with the design guidelines. Recommended Corridor Enhancement Strategy While streetscape improvements (landscaping, lighting, entries, signage, etc.) gives support to redevelopment efforts, in and of themselves they cannot be relied upon to sell goods and services. That is why such improvements must be considered supportive of and not an alternative to redevelopment. Objective 5 Correlate streetscape improvements with redevelopment efforts. On the other hand, some parts of the corridor will experience relatively little immediate change or redevelopment in the near-term and a number of businesses are intended to remain in the corridor. Objective 6: Use phased streetscape improvements as an inducement to upgrade those parts of the corridor where redevelopment is not imminent. Recommended Action Steps include: • Design of the streetscape by the City. • Development of an equitable cost recovery mechanism based on benefits received. Recommended Strategy to Correct Current Ills There are a number of problems associated with the corridor that will not be corrected immediately, or perhaps ever, by redevelopment. These include businesses where parking occurs on residential streets (thus precluding snow removal), alley conflicts and traffic using residential streets. These are problems that should be addressed now, in as much as possible, to improve compatibility between residential and business uses. While the integrity of the neighborhood may depend on solving these problems in the near-term, it should be understood that there are always likely to be unresolved conflicts in edge locations that do not exist elsewhere in the neighborhood or community. This is the nature of edge locations. It is also important to note that many residents can accept manageable conflicts associated with mixed use as a trade-off for convenience. Objective 7 Minimize land use conflicts, where ever possible, that could have the effect of reducing residential property values and causing a trend to renter occupancy. Recommended Action Steps include: Development of a screen buffer behind the Metro Dental Clinic and implementation in conjunction with the Clinic provided funding is available and agreement can be reached between the parties. Better enforcement of a ban on residential street parking during snow emergencies. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 24 • Continuous monitoring of the parking situation at the Metro Dental Clinic and the search for alternative ways to provide for shared parking. • Traffic counting on Aldrich Avenue in both the 7400 and 7500 blocks to assess current volumes. • Temporary closing of 75th Street at Lyndale Avenue to determine how traffic patterns will be altered. • Continuous experimentation with traffic patterns based on current counts. • Close monitoring of alley conditions (particularly odor and debris) and stricter enforcement of nuisance violations. Recommended Neighborhood Protection Strateev The City asked an appraiser to assess the value impacts of the plan proposal on the remaining neighborhood. His findings were that the keys to maintaining value are minimizing business access to shared alleys and/or streets that interface with residential properties and minimizing visual access from homes to parking lots and service areas. Objective 8.• Ensure that each project meets or exceeds the access and screening requirements of the plan. Recommended Action Steps include: Design, by the City, of buffers. The City should also stipulate compliance with the City's plans as a part of the development agreement. City to mandate buffer area maintenance in accordance with acceptable standards as a restrictive covenant or • City to be compensated by developer/owner for buffer area maintenance. Objective 9. Ensure consistency with the design guidelines established herein. • Recommended Land Acquisition Strategy One of the most difficult problems associated with redevelopment is land acquisition and trying to eliminate as much uncertainty for residents and business persons as possible while the process evolves. Uncertain timelines may make it somewhat difficult to lease business properties and sell homes. The City may have to intervene in either situation to make sure that the project or projects are able to move forward and that residents, in particular, are not locked into situations which depress property values. On the other hand, developers also need assurances that a few landowners will not stop the project. Objective /0.• Delegate land acquisition to developers. Employ the power of eminent domain only as a measure to ensure that the project is not compromised or severely delayed. Objective l l: Be sure residents and businesspersons are treated fairly. Objective 12: Give residents who demonstrate hardship the assurance that they will have buyers for their homes Recommended Action Steps include: • Development of a redevelopment schedule that can be complied with by the developer. • Be prepared to intervene with the acquisition of residences where they are scheduled for redevelopment if hardship can be demonstrated and development is imminent. Eligibility shall be as prescribed by the Right-of-Way Acquisition Loan Program Guidelines issued by the Metropolitan Council. • No matter who purchases the property (City or developer), the City/HRA should insure that the intent of mandated federal relocation benefits are fully complied with. Lyndale Avenue Corridor • Planning Commission Recommendation • Page 25 0 Recommended Financing Strati The primary source of funding for improvements to the Lyndale Avenue corridor will be tax increment financing (TIF) and special assessments. A special service or taxing district should also be considered to insure proper long-term maintenance of the corridor. Objective 13: Pledge financial support for projects which reflect d7e overall public benefit to be realized from them. Objective /4.• Spread the cost of Improvements In accordance with benefits received. Objective 15. Insure feasibillty and the long-term viability of the project. Recommended Action Steps include: • Seek guarantees from developers or structure a pay-as-you-go approach to the project using TIF. • Employ special assessments for streetscape and other public improvements in accordance with benefits received. Consider expanding the TIF District or pooling to generate the revenue needed to make the project feasible. Recommended Land Use Control Strategy - Making Sure It Gets Done in Accordance with the Plan Literally interpreted, the City's current zoning code (setbacks, etc.) would preclude redevelopment of the Lyndale Avenue corridor. Considerable flexibility will be required. Considerable assurances will also have to be provided by developers to insure that the neighborhood will be adequately protected. Objective I6: Allow maximum flexibility by developers to provide opportuntes for creativity and the development of viable projects. • Consider taking an equity position in the project as a means to insure project feasibility. • Require, as a condition of the development agreement, that developers/owners participate in a special service district to insure the long-term maintenance of the project. the project(s). • Explore funding potential from the Livable Communities Demonstration Program. the Lyndale Avenue Corridor which provides Lyndale Avenue Corridor • Planning Commission Recommendation • Page 26 Recommended Action Steps include: • Amend the Comprehensive Plan to reflect mixed use development and support the financing of • Establish a special design district exclusively for for consistent urban design. • 1.0 Dui Appendices CORRIDOR MEETING AGENDAS -CORRIDOR MEETING RESULTS NEWSLETTERS PLANNING PROCESS -TIME AND EVENT SCHEDULE ALTERNATIVES EVALUATIONS -PROS AND CONS HYBRID PLAN EVALUTATION -BUSINESSPERSONS -RESIDENTS A B C D E is MARKET STUDY F Lyndale Avenue Corridor - Planning Commission Recommendation - Page 27