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Home My WebLink AboutCity Council Packet 04-29-2003 SpecialAgenda City of Plymouth Special City Council Meeting Tuesday, April 29, 2003 immediately following the Board of Equalization Meeting) Public Safety Training Room 1. Call to Order 2. Discuss with CSM Dana Spicer property additional material I Schedule future study session topics 4. Adjourn Agenda Number: TO: Dwight Johnson, City Manager FROM: Anne Hurlburt, Community Development Director SUBJECT: CSM Proposal for Redevelopment of Dana Spicer Site DATE: April 24, 2003 for the Special City Council Meeting of April 29, 2003 Background The Council has scheduled a study session meeting to discuss the possible redevelopment of the 27.66 acre Dana Spicer site at 15905 Highway 55 (the southwest corner of Vicksburg Lane and Highway 55.) CSM Corporation has a purchase agreement with Dana, and is seeking City direction prior to preparation of formal applications, including traffic studies, for a possible commercial or mixed use redevelopment of the site. On March 4, 2003 the Council held a study session to review the status of City Center. The relationship of the Dana site to City Center and how its redevelopment might enhance City Center was discussed. Sketches prepared by CSM were shared at that time. Council members expressed some interest in looking at commercial development on the site, potentially in conjunction with residential use. Concerns included traffic and impacts on surrounding residential areas. Redevelopment Options Since the March meeting, CSM has been further refining some alternatives for redevelopment of the site. Four options for redevelopment will be presented at the study session: Option 1: Commercial (Kohl's, two big boxes and other users totaling 186,500 sq. ft.) and Family Housing (5 acres/ 50 to 70 units, 20% affordable for -sale, or 100% affordable rental) Option 2: Commercial (Kohl's, three big boxes and other users totaling 223,710 sq. ft.) and Senior Housing (2 acres/ 50 units affordable rental) Option 3: Commercial (Lowe's, Kohl's, other users totaling 236,680 sq. ft.) and Senior Housing (2 acres/ 50 units affordable rental) Option 4: Commercial Only (Lowe's, Kohl's, other users totaling 261,545 sq. ft.) CSM will also review the financial feasibility of the four options with the Council. They will describe their efforts to market the site for retail uses, and the limited desirability of the site to users based on its location relative to other regional retail centers. Staff will also review preliminary data collected on the feasibility for public assistance to the project. Discussion/ Staff Comments Staff offers the following comments and observations as input to the Council's discussion: The existing industrial building on the property may be best suited for a single industrial user. It would need some improvements such as a new roof and clean-up of materials left by Dana Spicer. The vacant land surrounding the building would allow for some additional industrial space to be built, but market conditions are currently poor for those uses. With the closing and sale of Dana Spicer, there is an opportunity for change at this location that may not present itself again for many years. The Council has identified the need for additional retail opportunities to enhance the City Center area. There are valid concerns about impacts on the community (traffic, noise, visual etc.) from redevelopment; however, any change on the site, including new or expanded industrial use, could produce similar impacts. General attractiveness of this site for retailers already in the Twin Cities market suffers because of its location between the major retail centers of Ridgedale and Maple Grove. Some users (such as Lowe's, which would be new to the Twin Cities market) would be willing to pay a premium for this location. The presence of such a retailer increases the interest from others, increasing the price they will pay. Including housing as part of a redevelopment project on this site is attractive for several reasons: as an opportunity for adding housing in the vicinity of City Center, as a possible location for affordable housing, and as a transitional land use to the adjacent neighborhood. Residential development of part of the site will reduce the area available for commercial use, and therefore reduce the economic return to the developer. The larger the site devoted to housing, the larger the economic impact. Affordable housing can generally pay less for a residential site, so would have a greater impact than market -rate housing. CSM's current purchase agreement with Dana Spicer is based on commercial development of the entire property including a Lowe's store (Option 4.) Preliminary analysis shows that such a project would be feasible based on the current purchase price of the property, without public assistance. The other options for redevelopment do not generate sufficient revenue to cover the purchase price without some level of "subsidy" to the project. Preliminary projections of revenue show that the project would not generate the amount of tax increment financing (TIF) or tax abatements sufficient to cover the "subsidy" required for Options 1, 2 or 3. Questions for the Council Staff suggests the following questions for discussion: 1. Is industrial use of the Dana Spicer site in the best interest of the City of Plymouth in the long run? Would redeveloping all or part of the site for commercial use enhance the City Center area? 2. If redevelopment is desired, is the Council willing to consider a project that includes a Lowe's or a similar major retailer as an anchor? If a major retailer like Lowe's is not desirable, what are the major concerns? Can they be overcome by design? 3. Is residential use of part of the site essential to approval of a redevelopment project? Does it matter what type or how much residential is included in the project? 4. Would the Council be interested in creating a Tax Increment Financing (TIF) redevelopment district to provide a "subsidy" for a project at this location? Conclusion The City Council's discussion at the study session will indicate whether or not there is sufficient support for this developer to move forward with the next step of preparing formal applications, including traffic studies, for reguiding and rezoning of the property. It will also guide staff as we advise the land owner if this proposal does not move forward. If there is any additional information staff can provide to aid the Council's discussion, please let us know. Leasing Summary Tenants who consider this too close to an existing store Weren't Interested Interested Audio King Ashley Furniture Lowe's Bachman's Archivers Kohl's Bed Bath and Beyond Babies R Us Wal Mart Best Buy Burlington Coat Sam's Club Barnes and Noble Dicks Sporting Goods Marshall's Borders Dots Walgreen's (pad site) Carpet King Dress Barn Christopher and Banks Factory Card Outlet Possible Interest Circuit City Fashion Bug Michael's Comp USA Franks Nursery Cost Plus Gander Mountain Costco Gateway Cub Foods Half Price Books David's Bridal Hancock Fabrics Ethan Allen Herbergers Famous Footwear Home Depot Expo Galyan's Home Goods Guitar Center Jos. A. Banks Home Depot Lazy Boy JC Penney Levitz JoAnn Fabrics Lyndale Garden Center Lands End Maurices Linens and Things Mervyn's Lunds Foods Old Navy Men's Warehouse Rockier Companies Northwestern Book Store Ross Dress for Less Office Depot REI Office Max Scheels Sports Paper Warehouse Seasonal Concepts Party City Shoe Carnival Pets Mart Sportsman's Warehouse Pet Co Trader Joes Pier One Thomasville Furniture Rainbow Foods Wicks Furniture Snyders Aldi Foods Sportsmart Target TJ Max Toys R Us U Ita Dana Spicer Redevelopment Option 1 Option 2 Option 3 Option 4 10,263,400 Kohls, three big 543,343 217,800 Kohls, two big boxes at $10 rents Kohl's, Lowe's and boxes at $10 rents and two acres of two acres of price, $350,000 for left turn and five acres of Commonbond's Commonbonds's 8.52 housing (21 % affordable senior affordable senior Kohls, Lowes and affordable) housing housing no housing Land values vs purchase price Value of retail land 4,215,504 5,362,900 7,631,2441 10,263,400 Plus value of land for housing 543,343 217,800 217,800 0 Less total land cost (Purchase price, $350,000 for left turn 4.27 4.80 6.831 8.52 land/ traffic light, brokerage 2,716,713 1,089,000 1,089,000 0 fees and demolition of building) 10,263,400 10,263,4001 10,263,400 10,263,400 the retail plan 2,787,840 3,593,700 1,325,356 0 We don't have three We don't have two big box users that are big box users that interested in the site - are currently Most are already Comments interested in the site. located by Ridgedale. Breakdown of line four above Land subsidy for housing difference between the 22.66 25.66 25.66 27.66 15.00/S.F. land value and the offer from the housing 4.27 4.80 6.831 8.52 developer) 2,716,713 1,089,000 1,089,000 0 Loss in value due to changes in the retail plan 2,787,840 3,593,700 1,325,356 0 Value of the remaining retail land on a per square foot basis Acerage of remaining retail land 22.66 25.66 25.66 27.66 Per SF value of remaining retail eland 4.27 4.80 6.831 8.52 Y1Y , 19:19 W, Summery Cky Ca,...' -., P39, 1 d 1 rueepm >r >n >rKl>1..+b001 me>+ MST/SLS I06yw1 axrr.«r /aal neq T 0. woo x N llK 14590001 0001. .u! rwprr anw r pus u5 mo IErA0. a/n0Y .+u.l f+swwl iwloo r +r >rKu nanao4 iw>wx is sr,+ul n.nOW) ip+>rALL. n>row01 wwe o+ i,en lrul n.lnowr KKO' architects minneapolis newport beach KKE Architects, Inc. 300 first avenue north minneapolis, mn 55401 phone: 6/7/139-4700 U., 617/ 347-9767 Key Plan W. Ore r 0r0e4ra Plymouth! MN SITE PLAN S"e P -:& Sp . -09 Onsr M IrBT,ww,r !s! 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D.. Mia D—Vi Plymouth, MN SITE PLAN SP -08 OW 1, Jill i HIGHWAY 55 J KOHL -19 I , 116K MODIFIED 1 a' ]0' iao300 eTa•]a 3Yd, vre r KK' architects Minneapolis newport beach KKE Architects, Inc. 300 first avenue north Minneapolis, mn 55401 phone: 617/339-4700 far. 617/ 347-9767 Key Ran ns ere Iemr Door" Plymouth, MN SITE PLAN SP -04 pW y rhuni] ys , rew rope P.SY rhL]f!vcod Pao Y ]Thu Aao/p 1 erns i4}ov Y n ]ihu f-naaol ioaao Y ]rhu f4anoao) rpm Y ]]] lthl] l.l 000l mn,owM • iY] ]rhu ni]ncoal Jill i HIGHWAY 55 J KOHL -19 I , 116K MODIFIED 1 a' ]0' iao300 eTa•]a 3Yd, vre r KK' architects Minneapolis newport beach KKE Architects, Inc. 300 first avenue north Minneapolis, mn 55401 phone: 617/339-4700 far. 617/ 347-9767 Key Ran ns ere Iemr Door" Plymouth, MN SITE PLAN SP -04 pW y Agenda Number: 3 TO: Dwight D. Johnson, City Manager FROM: Laurie Ahrens, Assistant City Manager SUBJECT: Set Future Study Sessions DATE: April 24, 2003, for City Council study session of April 29, 2003 1. ACTION REQUESTED: Review the pending study session topics list and, if desired, establish future special meetings or amend the topics list. 2. BACKGROUND: Attached is the list of pending study session topics, as well as calendars to assist in scheduling. Pending Study Session Topics at least 3 Council members have approved the following study items on the list) Other requests for study session topics: Recycling Program — future program initiatives (requested by EQQ after legislative session) OFFICIAL CITY MEETINGS Mav 2003 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Jun 2003 S M T W T F S 1 7:00 PM HUMAN RIGHTS Apr 2003 S M T W T F S 1 2 3 4 5 1 2 3 4 5 6 7 COMMISSION - 6 7 8 9 10 11 12 8 9 10 11 12 13 14 Council Chambers 13 14 15 16 17 18 19 15 16 17 18 19 20 21 20 21 22 23 24 25 26 22 23 24 25 26 27 28 27 28 29 30 29 30 4 5 6 7 8 9 10 7:00 PM 7:00 PM PARK & 10:30 AM - 4:00 PLANNING REC ADVISORY PM COMMISSION, COMMISSION PLYMOUTH Council Chambers PRAC), Council HISTORY Chambers FEST, Parkers Lake Park 11 12 13 14 15 16 17 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 5:00 PM SPECIAL C OUNCILMEETING- INTERVIEWYOUTH APPLICANTS; DISCUSS PROPOSED EXPANSION OF PUBLIC SAFETY BUILDING; Public Safety Training Room 7.00 PM EVIRONMENTAL QUALITY COMMITTEE EQC), Plymouth Creek Center 6:30P -8 30 PM ENNRONMENTALOUALITY FAIR. OakwacdEMneMery Scholl, t7e40 Co. Rd. e 700 PMHOUSING8REDEVELOPMENT HRAmymouthAUTHORLmmITY (HRA), TaSR eM e'liv only) 9:00 AM -3:30 PM PLYMOUTH CLEAN-UP DAY, Public Works Maintenence Facility 700 PM REGULAR COUNCIL MEETING, Council Chambers 7. AW PM YOUTH SETRVICE AWARDS RECEPION, Plan hCreek Center 18 19 20 21 22 23 24 8:00 PM GREENWOOD SPORT FIELD RIBBON CUTTING CEREMONY, 3635 CO, Rd, 101 11:00 AM CITY EMPLOYEE RECOGNITION LUNCH, Plymouth Creek Center 7:00 PM SPECIAL COUNCIL MEETING: DISCUSS POND& DRAINAGE ISSUES; FUTURE STUDY SESSION TOPICS, Plymouth Creek Center 7:00 PM PLANNING COMMISSION, Council Chambers 25 26 27 28 29 30 31 MEMORIAL DAY Observed) -City Offices Closed BUSINESS 11'45AMPLYMOUTHMTKA COUNCIL, BORN DadsanPek.,Y'anm« 7:00 PM PLYMOUTH ADVISORY 570 PM SPECIAL COUNCIL MEETING: CONSIDER POLICY COMMITTEE ON TRANSIT (PACT) - FOR TOBACCO USAGE ON PARK PROPERW'Pub"' Medicine Lake Sef.ty Traning Room 700 PM REGULAR COUNCIL MEETING, Council Chambers Room modified on 4/24/2003 OFFICIAL CITY MEETINGS June 2003 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 7:00 PM PLANNING COMMISSION, Council Chambers 7:00 PM HUMAN RIGHTS COMMISSION - Council Chambers 8 9 10 11 12 13 14 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 5:30 PM SPECIAL MEECOUN ISCUSS CIL IVESMONQUIL LANE DRAINAGE ISSUES, Public Safety Training Room 7:00 PM EVIRONMENTAL QUALITY COMMITTEE EQC), Plymouth Creek Center 7:00 PM PARK & REC ADVISORY COMMISSION FRAC), Council Chambers Flag Day 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 15 16 17 18 19 20 21 7:00 PM PLANNING COMMISSION, Council Chambers 7:00 PM HOUSING & REDEVELOPMENT AUTHORITY (HRA), Medicine Lake Room 7:00 PM SPECIAL COUNCIL MEETING: DISCUSS THIRD ICE SHEET, Council Chambers LEAGUE OF MINNESOTA CITIES ANNUAL CONFERENCE, St. Cloud Civic Center 22 23 24 25 26 27 28 7:30 PM YOUTH ADVISORYADVISORY COUNCIL, Councll Chambers 11: 45 AM PLYMOUTH-MTKA BUSINESS COUNCIL, Sh". Rog.- 6:00 PM SPECNL COUNCIL MEETING: DISCUSSFINANCAL rlAUDITEDFINANCIAL STATEMENTS, Pudic Safety TmMkV Rowe 7:00 PM PLYMOUTH COMMITTEE ON TRANSIT (PACT) - Medicine Lake Room 7A0 PM REGULAR COUNCIL MEETING, Cwmd Clamber 2/ 30 Jul 2003May2003 S M T W T F S S M T W T F S 1 2 3 4 5123 4 5 6 7 8 9 10 6 7 8 9 10 11 12 11 12 13 14 15 16 17 13 14 15 16 17 18 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 31 27 28 29 30 31 modified on 4/24/2003 OFFICIAL CITY MEETINGS July 2003 Sunday I Monday Tuesday Wednesday Thursday Friday Saturday 1 2 5:15 PM MUSIC IN PLYMOUTH, City Center Amphitheater 3 7:00 PM HUMAN RIGHTS COMMISSION - Council Chambers 4 INDEPENDENCE DAY - City Offices Closed S Jun 2003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 6 7 8 9 10 11 12 7:30 PM YOUTH ADVISORY COUNCIL, Council 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 7:00 PM EVIRONMENTAL QUALITY COMMITTEES (SOC), Plymouth Creek Center 7:00 PM PARK 8 REC ADVISORY COMMISSION PRAC), Council Chambers Chambers 7:00 PM PLANNING COMMISSION, Council Chambers 13 14 15 16 17 18 19 7:00 PM HOUSING 8 REDEVELOPMENT AUTHORITY (HRA), Medicine Lake Room 20 21 22 23 24 25 26 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 1.45 AM PIVMOUTH-MTKA BUSINESS COUNCIL, BORN Conference Room, Canson Parkway, 4th floor 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 7:00 PM PLANNING COMMISSION, Council Chambers 7:00 PM PLYMOUTH ADVISORY COMMITTEE ON TRANSIT (PACT) - Medicine Lake Room 27 28 29 30 31 Aug 2003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 modified on 4/24/2003