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04-17-18 HRA Agenda Packet A G E N D A Regular Meeting of the Housing and Redevelopment Authority Golden Valley City Hall 7800 Golden Valley Road Council Chamber April 17, 2018 6:30 pm Pages 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes - Regular Meeting - January 16, 2018 2-3 Special Meeting - February 20, 2018 4 4. Reimbursement of City Expenditures 5 5. Receipt of March 2018 Financial Reports 6-8 6. Amendment Extending Lease with D’Amico Catering 9-12 7. Acceptance Report of Inspection Procedure and Results for Determining Qualification of a Tax Increment Financing District as a Redevelopment District 18-03 13-19 8. Approval of Partial Transfer of Interest in Global Pointe Senior Community Project 20-34 9. Douglas Drive Corridor Redevelopment Project Area A. Resolution Adopting Amendment to Douglas Drive Redevelopment Plan for the Douglas Drive Corridor Redevelopment Project Area 18-04 35-60 10. Adjournment UNOFFICIAL MINUTES HOUSING AND REDEVELOPMENT AUTHORITY MEETING GOLDEN VALLEY, MINNESOTA January 16, 2018 Housing and Redevelopment Authority Vice Chair Clausen called the meeting to order at 6:37 pm. 1. Roll Call The following members were present: Vice Chair Joanie Clausen, Commissioners Shep Harris, Gillian Rosenquist and Steve Schmidgall. Also present were HRA Director Cruikshank and City Clerk Luedke. Absent: Commissioner Larry Fonnest 2. Election of Officers The HRA Bylaws provide for the annual election of the HRA Chairperson and Vice Chairperson to serve a one year term. Commissioner Schmidgall opened the nominations. MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to nominate Vice Chair Clausen for the office of Chair and the motion carried. Commissioner Clausen accepted the nomination. MOTION made by Commissioner Harris, seconded by Chair Clausen to nominate Commissioner Rosenquist for the office of Vice Chair and the motion carried. Commissioner Rosenquist accepted the nomination for Vice Chair. 3. Approval of Agenda MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to approve the agenda of January 16, 2018, as submitted and the motion carried. 4. Approval of Housing and Redevelopment Authority Minutes - Regular Meeting - October 17, 2017 and Special Meeting - December 19, 2017 MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to approve the Regular Housing and Redevelopment Authority minutes of October 17, 2017, and the Special Housing and Redevelopment Authority minutes of December 19, 2017, as submitted and the motion carried. 5. Approval of Bills Finance Director Virnig answered questions from Council regarding the City’s attorney fees expenses. MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to approve transferring $9,056.21 to the City of Golden Valley and Check 4085 for $8,244.04 to Bank Mutual and the motion carried. Housing and Redevelopment Authority Minutes January 16, 2018 Page 2 6. Receipt of December 2016 Financial Reports MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to receive and file the December 2017 HRA Financial Reports and the motion carried. 7. Adoption of 2018 General Fund Budget Finance Director Virnig presented the staff report and answered questions from Council. MOTION made by Commissioner Harris, seconded by Commissioner Schmidgall to adopt HRA Resolution 18-01, adopting the 2018 General Fund Budget upon a vote being taken the following voted in favor of: Clausen, Harris, Rosenquist and Schmidgall, the following was absent: Fonnest and the following voted against: none and the motion carried. 8. Designation of Depositories MOTION made by Commissioner Harris, seconded by Commissioner Rosenquist to adopt HRA Resolution 18-02, designating Depositories for HRA Funds upon a vote being taken the following voted in favor of: Clausen, Harris, Rosenquist and Schmidgall, the following were absent: Fonnest and the following voted against: none and the motion carried. 9. Adjournment MOTION made by Commissioner Harris, seconded by Commissioner Schmidgall and the motion carried to adjourn the meeting at 6:40 pm. _______________________________ Joanie Clausen, Chair ATTEST: ____________________________________ Kristine A. Luedke, City Clerk UNOFFICIAL MINUTES SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING GOLDEN VALLEY, MINNESOTA February 20, 2018 Housing and Redevelopment Authority Chair Clausen called the meeting to order at 6:30 pm. 1. Roll Call The following members were present: Chair Joanie Clausen, Commissioners Larry Fonnest, Shep Harris, Gillian Rosenquist and Steve Schmidgall. Also present was Housing and Redevelopment Authority Director Tim Cruikshank and City Clerk Luedke. 2. Approval of Agenda MOTION made by Commissioner Schmidgall, seconded by Commissioner Harris to approve the agenda of February 20, 2018, as submitted and the motion carried. 3. Consider Third Amendment to Liberty Crossing Private Development Agreement Physical Development Director Nevinski presented the staff report and answered questions from Council. City Manager Cruikshank answered questions from Council. MOTION made by Commissioner Harris, seconded by Commissioner Fonnest to approve the Third Amendment to Liberty Crossing Private Development agreement and the motion carried. 4. Adjournment MOTION made by Commissioner Schmidgall, seconded by Commissioner Rosenquist and the motion carried to adjourn the meeting at 6:37 pm. _______________________________ Joanie Clausen, Chair ATTEST: _________________________ Kristine A. Luedke, City Clerk Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 4. Reimbursement of City Expenditures Prepared By Sue Virnig, Finance Director Summary As of March 31, 2018, the following expenditures were paid by the City on various check registers and need to be reimbursed by the HRA: City Expenditures: Amount 1000 Property Tax Overpayment- Hennepin County $2,919.48 1000 Legal Fees (Tennant) Kennedy & Graven* 499.75 1000 Legal Fees - Feb HRA meeting Best & Flanagan 276.25 $3,695.48 HRA Expenditures: 9000 General Fund (Developer Deposit)* $776.00 9300 Hwy 55 West 2,919.48 $3,695.48 *Asterisk items are reimbursed by deposits held for developers. Recommended Action Motion to approve Check 4086 for $3,695.48 to the City of Golden Valley. Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 5. Receipt of March 2018 Financial Reports Prepared By Sue Virnig, Finance Director Summary Attached are the March 2018 Financial Reports for Housing and Redevelopment Authority (HRA) review. Staff will address questions from the HRA before or at the meeting. Attachments • HRA General Fund Budget Report (1 page) • HRA Capital Project Funds Report (1 page) Recommended Action Motion to receive and file the March 2018 HRA Financial Reports. Percentage Of Year Completed 25% Over % Of 2018 Jan-Mar YTD (Under)Budget Revenue Budget Actual Actual Budget Received Interest Earnings (2)0 0.00 0.00 0.00 Fund Balance 15,000 0.00 0.00 (15,000.00) Totals $15,000 0.00 0.00 (15,000.00)0.00% Over % Of 2018 Jan-Mar YTD (Under)Budget Expenditures Budget Actual Actual Budget Expended Legal Services (1)$3,000 275.25 275.25 (2,724.75)9.18% Audit 12,000 0.00 0.00 (12,000.00)0.00% Totals $15,000 275.25 275.25 (14,724.75)1.84% Notes: (1) Includes February to date billings from Best & Flanagan. (2) Interest will be allocated at year end. HRA of Golden Valley General Fund March 2018 Budget Report (unaudited) HRA Of Golden Valley 2018 Financial Report 9300 9302 9400 9250 Hwy 55/Cornerstone Winnetka North West TIF Med Lk Rd Wirth #3 Cash Balance @ 10/01/17 $1,845.89 ($529.44)($536.00)$0.00 Add: Receipts: Interest Lease revenue Increment Received 0.00 0.00 Less: Expenditures: City of Golden Valley (1) Payment to Bank Mutual 0.00 TIF Payment-Hennepin County (2,919.48)0.00 0.00 0.00 *will be paid with TIF in 2017 0.00 Cash Balance @ 12/31/17 ($1,073.59) ($529.44) ($536.00)$0.00 (2)(2)(2)(3) (1) Breakdown on City Expenditures Memo (2) Reinbursed when increment is received. (3) Pay Go Note remaining $187,813.13 Capital Project Funds Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 6. Amendment Extending Lease with D’Amico Catering Prepared By Jason Zimmerman, Planning Manager Summary On May 14, 2009, the Housing and Redevelopment Authority (HRA) executed a land lease with D’Amico Catering for property the HRA owns at 1201 Turners Crossroad South (Tract B, Registered Land Survey No. 0106). The lease was renewed in 2012 and 2015 and runs through May 14, 2018. D’Amico is interested in extending it. The attached amendment extends the lease until May 14, 2021. The lease extension provides for a rent of $1 per year, with the leasee responsible for all upkeep. Attachments • Location map (1 page) • Amendment Extending Lease effective May 14, 2018 (2 pages) Recommended Action Motion to approve Amendment Extending Lease with D’Amico Catering, effective May 14, 2018. Subject Property AMENDMENT EXTENDING LEASE This Amendment Extending Lease is entered into effective as of May 14, 2018, by and between the Housing and Redevelopment Authority in and for the City of Golden Valley, public body corporate under the laws of the State of Minnesota (“Lessor”), and D’Amico Catering, LLC, a Minnesota limited liability company (“Lessee”). RECITALS The parties entered into a Lease extension effective as of May 14, 2015, of real property located in the City of Golden Valley, County of Hennepin, and State of Minnesota, legally described as: Tract B, Registered Land Survey No. 0106. The Lease expires on May 14, 2018. Accordingly, the parties wish to amend that Lease by extending its term. AMENDMENT EXTENDING LEASE 1. As of May 14, 2018, Lessor and Lessee hereby amend the above-referenced lease by extending its term from May 15, 2018, through May 14, 2021 (“Termination Date”). 2. The parties hereby ratify all other terms of the Lease. IN WITNESS WHEREOF, the Lessor and the Lessee have caused these presents to be executed in form and manner sufficient to bind them at law, as of the day and year first above written. LESSOR: LESSEE: Housing and Redevelopment Authority in D’Amico Catering, LLC and for the City of Golden Valley By _______________________________ By _______________________________ Its Director Its _____________________________ 2 STATE OF MINNESOTA }SS. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this ____ day of ______, 2018, by ___________________, the Director of the Housing and Redevelopment Authority in and for the City of Golden Valley, public body corporate under the laws of the State of Minnesota, on behalf of the City, Lessor. ____________________________________________ Notary Public STATE OF MINNESOTA }SS. COUNTY OF ___________ The foregoing instrument was acknowledged before me this ____ day of ______, 2018, by ___________________, the __________________ of D’Amico Catering, LLC, a Minnesota limited liability company, Lessee. ____________________________________________ Notary Public This instrument was drafted by: Best & Flanagan LLP 225 South Sixth Street, Suite 4000 Minneapolis, MN 55402 Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 7. Resolution Accepting the Report of Inspection Procedure and Results for Determining Qualification of a Tax Increment Financing District as a Redevelopment District Prepared By Marc Nevinski, Assistant HRA Director Summary In 2017, Tennant Company made application to the HRA and City to establish a redevelopment tax increment financing district to assist in the development of its World Headquarters project. A “blight study”, dated September 27, 2017, was completed on the parcels and structures proposed for inclusion in the TIF district to document conformance with the statutory requirements for the creation of a redevelopment TIF district. Although the World Headquarters project is currently on hold, modifications to the existing PUD are proposed to facilitate parcel modifications and more efficiently arrange land uses and ownership in the area. Specifically, Tennant Company will essentially swap land with Damascus Way to facilitate construction of its new residential facility. This arrangement will require the demolition of one or more buildings in the area proposed for inclusion in a redevelopment TIF district, even though such a district has not been established. State statute allows for demolition of blighted buildings in advance of a district establishment if a resolution is adopted by the authority prior to demolition finding the conditions existed to qualify the area as a redevelopment TIF district. The resolution will preserve the blight study findings for a period of three years from the date of the first demolition. The resolution does not establish a TIF district. Attachments • Resolution accepting the Report of Inspection Procedure and Results for Determining Qualification of a Tax Increment Financing District as a Redevelopment District (2 pages) • Executive Summary of Inspection Report (“Blight Study”) (4 pages) Recommended Action Motion to adopt Resolution accepting the Report of Inspection Procedure and Results for Determining Qualification of a Tax Increment Financing District as a Redevelopment District. HRA Resolution No. 18-03 April 17, 2018 Commissioner introduced the following and moved its adoption: RESOLUTION ACCEPTING THE REPORT OF INSPECTION PROCEDURE AND RESULTS FOR DETERMINING QUALIFICATION OF A TAX INCREMENT FINANCING DISTRICT AS A REDEVELOPMENT DISTRICT BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (the “Authority”), as follows: 1. Review of TIF / Redevelopment District Qualification Report. The Authority has reviewed the Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District (TIF) District as a Redevelopment District dated September 27, 2017 and identified as Stantec Project No. 193804541 (the “TIF/ Redevelopment Qualification Report”) for a Tax Increment Financing Redevelopment District proposed to be established (the “Tennant Redevelopment District”), which report is attached as Exhibit A. The properties to be included in the Tennant Redevelopment District are either owned or to-be-owned by Tennant Company. 2. Findings for Approval of Tennant Redevelopment District. The Authority hereby makes the following findings: 2.01. Based on the results of the TIF/Redevelopment Qualification Report, the Authority finds that the properties proposed to be included in the Tennant Redevelopment District meet the qualifications under Minnesota Statutes, Section 469,174, Subdivision 10(a). 2.02 The proposed Tennant Redevelopment District meets the “coverage test” under Minnesota Statutes, Section 469.175, Subdivision 10(e), as the parcels comprising the proposed Tennant Redevelopment District are 100% occupied by buildings, streets, utilities, paved drives or parking lots. 2.03 The buildings located on the parcels included in the proposed Tennant Redevelopment District can be considered structurally substandard. 100% of the buildings/structures located in the proposed Tennant Redevelopment District contain code deficiencies exceeding the 15% threshold required under Minnesota Statues, Section 469.174, Subdivision 10(c). 2.04 100% of the buildings/structures located in the Tennant Redevelopment District are structurally substandard and would require substantial renovation due to significant structural defects or deficiencies in essential utilities, light, ventilation, fire protection, egress and other factors. 2.05 The conditions described above are reasonably distributed throughout the proposed Tennant Redevelopment District. 2.06 The proposed Tennant Redevelopment District qualifies for establishment as a Redevelopment District pursuant to Minnesota Statutes, Section 469.174, Subdivision 10. HRA Resolution No. 18-03 -2- April 17, 2018 3. Expiration of Findings. The findings of the Authority set forth in Section 2 above shall expire on the date that is three (3) years from the date on which the Authority confirms that any substandard building or improvements located within the Tennant Redevelopment District and requiring demolition have been adequately demolished or removed by Tennant Company or the owner of such substandard building or improvements. _____________________________ Joanie Clausen, Chair ATTEST: _________________________________ Timothy J. Cruikshank, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and the signature attested by the Executive Director. Report of Inspection Procedures and Results For Determining Qualifications of a Tax Increment Financing (TIF) District as a Redevelopment District city of � goldenlley City of Golden Valley Proposed TIF District Golden Valley, Minnesota 5 Stantec Stantec Project No. 193804541 September 27, 2017 Table of Contents PART1 Executive Summary --------------------------------------------------------------------------------------------------- 3 Purposeof Evaluation ----------------------------------------------------------------------------------------- 3 Scopeof Work----------------------------------------------------------------------------------------------------- 3 Conclusion ------------------------------------------------------------------------------------------------------------ 4 PART 2 Minnesota Statute 469.174, Subdivision 10 Requirements ------------------------------- 4 PART 3 Procedures Followed 6 PART4 Findings----------------------------------------------------------------------------------------------------------------------- 7 A. Coverage Test---------------------------------------------------------------------------------------------- 7 B. Condition of Building Test--------------------------------------------------------------------------- 8 1. Replacement Cost-------------------------------------------------------------------------------- 8 2. Code Deficiencies 8 3. System Condition Deficiencies----------------------------------------------------------- 9 C. Distribution of Substandard Structures --------------------------------------------------- 10 D. Conclusion 11 PART 5 Team Credentials 12 APPENDIX A Map of Proposed TIF District Hennepin County Property Maps APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Code Deficiency Estimated Replacement Costs APPENDIX D Photographs Page 2 PART 1 - EXECUTIVE SUMMARY 21 i 1*14 a601 Stantec, BWBR code analysis group, and NOVA Consulting were retained by Oppidan Investment Company, the development consultant for Tennant Companies, Inc., to evaluate the properties within a Tax Increment Financing Redevelopment District ("TIF District") proposed to be established by the City of Golden Valley. BWBR code analysis group performed the onsite interior and exterior inspections to verify existing conditions and determine code deficiencies. NOVA Consulting performed the replacement cost estimating based on correcting the code deficiencies found by the BWBR code analysis group. The proposed TIF District is located in the City of Golden Valley and includes two non- contiguous parcels. The first area includes parcels within the general area bounded by Zane Avenue North on the west, Highway 100 on the east, Luce Line Trail on the north and Olson Memorial Service Road on the south minus the area covered by the existing Tennant Building on the north portion of the parcel. The second area includes the parcel bounded by Golden Valley Road on the north, Douglas Drive North on the east, Luce Line Trail on the south, and an adjacent parcel on the west (see Figure 1). The purpose of Stantec's work was to review the information gathered by BWBR to determine whether the proposed district meets the statutory requirements for coverage, and whether buildings on six different parcels, located within the two proposed non-contiguous TIF District Areas, meet the qualifications required for a Redevelopment District. Figure 1 - Proposed TIF District Page 3 SCOPE OF WORK The proposed TIF District Area 1 is comprised of five (5) parcels and containing five (5) commercial buildings and three residential buildings and two easements currently owned by the City of Golden Valley. The proposed TIF District Area 2 is comprised of one (1) parcel containing one (1) commercial building. All the commercial buildings in the proposed district received an onsite interior and exterior inspection by staff from BWBR. Two of the three residential property owners would not allow an onsite interior and exterior inspection. These buildings were only observed from the adjacent street. The third residential building is currently part of the larger Tennant parcel and is unoccupied. It has been deemed unsafe for habitation. Building Code and Condition Deficiency Reports for each building are in Appendix B. CONCLUSION After evaluating the inspection reports prepared by BWBR and the estimated replacement costs prepared by NOVA Consulting for the properties within the two proposed non-contiguous TIF District Areas and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the two proposed non-contiguous TIF District Areas do qualify as a Redevelopment District. The remainder of this report describes the process and findings in detail. PART 2 - MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10, which states: Interior Inspection "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." Exterior Inspection and Other Means "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Page 4 Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 8. Approval of Partial Transfer of Interest in Global Pointe Senior Community Project Prepared By Marc Nevinski, Assistant HRA Director Summary Global One wishes to transfer a portion of its interest in the Global Pointe Senior Living project (to be located on Lot 3, Block 1, Globus Golden Valley Addition, PUD No. 112) to Empire IV Global Pointe, LLC. The original development agreement with Global One requires that the HRA approve any sale, transfer or assignment of interest in the project. Staff and the HRA attorney have reviewed the terms of the proposed transfer and completed due diligence with regard to Empire IV and have no concerns with the transfer of interest in the project. The HRA is asked to authorize the execution of the attached documents to enable the partial transfer of interest to Empire IV. Attachments • Second Partial Assignment and Assumption of Private Development Agreement and Consent (7 pages) • Third Amendment to Private Development Agreement (7 pages) Recommended Action Motion to authorize the Chair and Executive Director to execute the following documents: 1. Second Partial Assignment and Assumption of Private Development Agreement and Consent. 2. Third Amendment to Private Development Agreement. SECOND PARTIAL ASSIGNMENT AND ASSUMPTION OF PRIVATE DEVELOPMENT AGREEMENT AND CONSENT THIS PARTIAL ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”), dated as of April ____, 2018 and to be effective as of ____, 2018, is made and entered into by and between EMPIRE IV GLOBAL POINTE, LLC, a Minnesota limited liability company with its principal office at 1505 River Shore Drive, Hastings, Minnesota 55033 (“Empire IV”), 394 ASSOCIATES, LLP, a Colorado limited liability partnership, with its principal office at 4500 Cherry Creek Drive South; Suite 550, Glendale, Colorado 80246 (“394”); GLOBAL ONE GOLDEN VALLEY, LLC, a Minnesota limited liability company, with its principal office at IDS Center, 80 South 8th Street, Suite 900, Minneapolis, Minnesota (“Global One”); and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, a public body corporate established and existing under Minnesota Statutes, Section 469.001 et seq., with its principal offices at 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the “HRA”). All capitalized terms used but not defined herein shall have the meaning ascribed to them in the Development Agreement, as defined below. WHEREAS, the HRA and Global One entered into that certain Private Development Agreement dated April 10, 2012 filed in the office of the Hennepin County Registrar of Titles as document no. T05326953 and a First Amendment to Private Development Agreement dated September 16, 2015 filed as document no. T05346954; and whereas, the HRA, Global One and 394 entered into a Partial Assignment and Assumption of Private Development Agreement and Consent dated September 16, 2015 filed as document no. T05326955 and a Second Amendment to Private Development Agreement dated September 16, 2016 files as document no. T05384007; and as of the date hereof are entering into the Third Amendment to Private Development Agreement (together, the “Development Agreement”) related to the property legally described as Lots 1, 2 and 3, Block 1, Globus Golden Valley Addition, P.U.D. No. 112, Hennepin County, Minnesota (the “Project”); and WHEREAS, Global One is, as of April ___, 2018, conveying to Empire IV a partial tenant-in-common interest in Lot 3, Block 1, of the Project (“Lot 3”) and retaining a partial tenant-in-common interest in Lot 3; and WHEREAS, Global One now wishes to assign a portion of its rights and obligations in the Development Agreement and the Development Property to Empire IV, and Empire IV wishes to accept such assignment and assume a portion of the rights and obligations of Global One with respect to the Parcel contained in the Development Agreement; NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual terms and conditions contained herein, the parties hereby agree as follows: 1. Assignment and Assumption. For value received, Global One hereby assigns to Empire IV all of its rights, title and interest in the Development Agreement with respect to that portion of the Development Property described in the Deed, effective and recorded of even date herewith, conveying a partial tenant-in-common interest in Lot 3 from Global One to Empire IV subject to the limitations, exclusions and provisions of this Assignment. Empire IV hereby assumes and agrees to perform all of the obligations, covenants, agreements and conditions related to Lot 3 referred to in the Development Agreement, subject to the limitations, exclusions and provisions of this Assignment. Empire IV and Global One collectively shall be the “Developer” as it relates to Lot 3, and shall be jointly and severally responsible for completion of the Senior Building and Global One Retained Site Improvement Work (as those terms are defined in Section 2 of the First Amendment to Private Development Agreement) on Lot 3. 2. Insurance. Empire IV and Global One shall be jointly and severally responsible for maintaining the insurance required by Section 5.1 of the Development Agreement as it relates to Lot 3 and all improvements to be constructed thereon or for the benefit thereof. The foregoing notwithstanding, the total amount of coverage may be provided by a combination of insurance provided by Empire IV and Global One, so long as each has deposited with the HRA certificates of the respective insurers evidencing the amount of coverage. 3. Approval of Successor Developer. Empire IV is hereby approved by the_ HRA as a successor developer, on the terms and conditions as set forth in this Assignment. 4. Events of Default. Global One and Empire IV shall each have the right to take action to cure any default or failure to perform by the other party, as such default may be alleged by the HRA. Notwithstanding the foregoing, a default by Global One of its obligations under the Development Agreement shall not be deemed a default by Empire IV of its obligations under the Agreement. 5. Notices and Demands. Section 10.4 of the Development Agreement is hereby supplemented to provided that all notices related to Lot 3, and all notices of default, shall be delivered to those Parties set forth in the Agreement, and also to: Empire IV Global Pointe LLC c/o Leon J. Endres 1505 River Shore Drive Hastings, MN 55033 With copies to: Winthrop & Weinstine, P.A. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 Attn: Mark Johnson 6. No Defaults. i. Global One hereby represents to the best of its knowledge (which knowledge shall be construed as, and limited to, the actual knowledge of the Mark Globus) to Empire IV that it has complied with all agreements, covenants and obligations required to be performed by it under the Development Agreement, and that there are no Events of Default by it, as defined in the Development Agreement in effect, or which would be in effect but for the passage of time or giving of notice. Global One, to the best of its knowledge (which know lledge shall be construed as, and limited to, the actual knowledge of Mark Globus), also represents to Empire IV that it is not aware of any uncured defaults by the HRA or 394 under the Development Agreement as of the date hereof, nor is Global One aware of any facts that, but for the passage of time or the giving of notice, would constitute a default by the HRA or 394. 7. Consent of the HRA. The HRA hereby consents to the foregoing Assignment provided, however, that Global One shall remain jointly and severally liable with Empire IV for all of the obligations under the Development Agreement assigned by Global One to Empire IV hereby, and Global One shall remain solely liable for all of the obligations under the Development Agreement not assigned to 394 or Empire IV. The HRA is not aware of any uncured defaults by Global One, 394 or the HRA under the Development Agreement as of the date hereof, nor is the HRA aware of any facts that, but for the passage of time or the giving of notice, would constitute a default by either Global One, 394 or the HRA under the Development Agreement. 8. Consent of 394. 394 hereby consents to the foregoing Assignment. 394 is not aware of any uncured defaults by Global One, 394 of the HRA under the Development Agreement as of the date hereof, nor is 394 aware of any facts that, but for the passage of time or the giving of notice, would constitute a default by either Global One, 394 or the HRA under the Development Agreement. [REMAINDER OF PAGE INTENTIONALLY BLANK. SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the HRA has caused this Second Partial Assignment and Assumption to be duly executed in its name and on its behalf, Global One has caused this Second Partial Assignment and Assumption to be duly executed in its name and on its behalf, 394 has caused this Second Partial Assignment and Assumption to be duly executed in its name, and Empire IV has caused this Second Partial Assignment and Assumption to be duly executed in its name and on its behalf, as of the date first written above. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ Joanie Clausen, Chair By: _______________________________ Timothy J. Cruikshank, Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by Joanie Clausen, Chair and Timothy J. Cruikshank, Director, of THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, on behalf of the organization. ____________________________________ Notary Public GLOBAL ONE GOLDEN VALLEY, LLC By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by Mark C. Globus, Chief Manager of Global One Golden Valley, LLC, a Minnesota limited liability company on behalf of the company. ____________________________________ Notary Public 394 ASSOCIATES, LLP By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by __________________, as _____________ of Forum Management, Inc., a Colorado corporation, as Managing Partner of 394 ASSOCIATES, LLP, a Colorado limited liability partnership, on behalf of the partnership. ____________________________________ Notary Public EMPIRE IV GLOBAL POINTE LLC By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by __________________, as _____________ of Empire IV Global Pointe LLC, a Minnesota limited liability company, on behalf of the company. ____________________________________ Notary Public THIS INSTRUMENT DRAFTED BY: Best & Flanagan LLP 60 South Sixth Street, Suite 2700 Minneapolis, MN 55402 THIRD AMENDMENT TO PRIVATE DEVELOPMENT AGREEMENT THIS THIRD AMENDMENT TO PRIVATE DEVELOPMENT AGREEMENT (“Third Amendment”), effective as of April ___, 2018, is made and entered into by and between 394 ASSOCIATES LLP, a Colorado limited liability partnership, with its principal office at 4500 Cherry Creek Drive South, Suite 550, Glendale, Colorado 80246 (“394”); GLOBAL ONE GOLDEN VALLEY, LLC, a Minnesota limited liability company, with its principal office at IDS Center, 80 South 8th Street, Suite 900, Minneapolis, Minnesota 55402 (“Global One”); and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, a public body corporate established and existing under Minnesota Statues, Section 469.01, et seq., with its principal offices at 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the “HRA”). All capitalized terms used but not defined herein shall have the meaning ascribed to them in the Development Agreement, as defined below. WHEREAS, the HRA and Global One entered into that certain Private Development Agreement dated April 10, 2012, filed in the office of the Hennepin County Registrar of Titles as document no. T05326953 and amended by a First Amendment to Private Development Agreement as of September 16, 2015, filed as document no. T05326954, and a Second Amendment to Private Development Agreement as of September 16, 2016, filed as document no. T05384007 (together the “Development Agreement”), all relating to the property legally described as Lots 1, 2 and 3, Block 1, Globus Golden Valley Addition, P.U.D. No. 112, Hennepin County, Minnesota. WHEREAS, Global One and the HRA entered into a Partial Assignment and Assumption of Private Development Agreement and Consent as of September 16, 2015, which assigned certain portions of the rights and obligations under the Development Agreement to 394; and WHEREAS, Global One intends to assign certain of its rights and obligations under the Agreement to EMPIRE IV GLOBAL POINTE, LLC, a Minnesota limited liability company, with its principal office at 1505 River Shore Drive, Hastings, Minnesota 55033 (“Empire IV”), pursuant to the Partial Assignment and Assumption of Private Development Agreement and Consent (the “Assignment”) in the form contemporaneously executed herewith and to be effective as of the Closing Date (as defined below), and Empire IV intends to accept the Assignment and the HRA intends to consent to the Assignment; and WHEREAS, the parties now wish to amend the Development Agreement to reflect the intended Assignment and make certain other changes to the Development Agreement; NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual terms and conditions contained herein, the parties hereby agree as follows: 1. The revisions to the Agreement set forth in this Third Amendment that are related to Empire IV or the Assignment or both, are expressly contingent upon the HRA, Global One, 394 and Empire IV executing and entering into the Assignment and the Assignment becoming effective pursuant to the terms and conditions set forth therein. 2. “Closing Date” means the date on which Global One conveys a partial tenant-in- common interest in Lot 3 (as defined below) to Empire IV. 3. Notwithstanding anything to the contrary contained in Section 2.2 of the Development Agreement, subsection (i) is amended as it relates to Empire IV such that the representation and warranty state that Empire IV is a Minnesota limited liability company duly organized in the State of Minnesota and authorized to do business in the State of Minnesota. 4. Section 8.1 is hereby amended to provide that a partial tenant-in-common interest of that portion of the Development Property legally described as Lot 3, Block 1, Globus Golden Valley Addition PUD No. 112 (“Lot 3”), may be transferred to Empire IV Global Pointe, LLC. 5. Section 10.4(a) is hereby revised to add the following after Fisher & Suhr, P.C.: Empire IV Global Pointe, LLC c/o Leon J. Endres 1505 River Shore Drive Hastings, MN 55033 And: Winthrop & Weinstine, P.A. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 Attn: Mark Johnson 6. Section 10.4(b) is hereby revised to replace notices to Director and Allen Barnard with: 7800 Golden Valley Road Golden Valley, MN 55427 Attention: Timothy J. Cruikshank, Director with copies to: Maria T. Cisneros Best & Flanagan LLP 60 South Sixth Street, Suite 2700 Minneapolis, MN 55402-4690 7. Section 4.2 of the Development Agreement is hereby amended by changing the date of December 31, 2018 contained in the Second Amendment to Private Development Agreement to December 31, 2019. 8. Except as set forth herein, all terms, provisions and covenants of the Agreement shall remain unchanged and in full force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGES FOLLOW] IN WITNESS WHEREOF, the HRA has caused this Third Amendment to be duly executed in its name and on its behalf, Global One has caused this Third Amendment to be duly executed in its name and on its behalf, 394 has caused this Third Amendment to be duly executed in its name and on its behalf, and Empire IV has caused this Third Amendment to be duly executed in its name and on its behalf as of the date first written above. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ Joanie Clausen, Chair By: _______________________________ Timothy J. Cruikshank, Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by Joanie Clausen, Chair and Timothy J. Cruikshank, Director, of THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, on behalf of the organization. ____________________________________ Notary Public GLOBAL ONE GOLDEN VALLEY, LLC By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by Mark C. Globus, Chief Manager of Global One Golden Valley, LLC, a Minnesota limited liability company on behalf of the company. ____________________________________ Notary Public 394 ASSOCIATES, LLP By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by ___________________, as _______________ of Forum Management, Inc., a Colorado corporation, as Managing Partner of 394 ASSOCIATES, LLP, a Colorado limited liability partnership, on behalf of the partnership. ____________________________________ Notary Public EMPIRE IV GLOBAL POINTE LLC By: _______________________________ Its: _______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2018 by ___________________, as _______________ of Empire IV Global Pointe LLC, a Minnesota limited liability company, on behalf of the company. ____________________________________ Notary Public THIS INSTRUMENT DRAFTED BY: Best & Flanagan LLP 60 South Sixth Street, Suite 2700 Minneapolis, MN 55402 Executive Summary For Action Golden Valley Housing and Redevelopment Authority Meeting April 17, 2018 Agenda Item 9. Resolution Adopting the Amended Redevelopment Plan for Douglas Drive Corridor Redevelopment Project Area Prepared By Marc Nevinski, Assistant Director Summary The HRA is asked consider the Amended Redevelopment Plan for the Douglas Drive Corridor Redevelopment Project Area (the Plan). The Plan serves to guide the undertakings of the Housing and Redevelopment Authority. In July 2017 the HRA proposed expanding the area included in the Plan by incorporating an additional parcel along Douglas Drive, as well as parcels around the Tennant corporate campus in anticipation of the Tennant World Headquarters project. Those parcels were referred to in the Plan as Area A‐4, even though the parcels were all non‐contiguous. The goal for Area A‐4 was to create opportunities for housing and mixed use development along Douglas Drive, and further develop the Tennant corporate campus area. At the October 2017 Council/Manager meeting, the City Council, which sits as the HRA, reviewed the Plan, and concluded additional parcels along Douglas Drive between the Union Pacific Railroad and Highway 55 should also be incorporated into the Plan. Those parcels are referred to in the Plan as Area A‐5. The goal in this area is to retain and create employment opportunities through the reuse and redevelopment of existing commercial and industrial properties. The Planning Commission also reviewed these modifications in October 2017 and determined they were appropriate and consistent with the City’s general plans for development. Since that time, the Tennant World Headquarters project has been postponed. To date, no modifications to the Plan have been adopted. Staff has further reviewed the Plan due to continued development interest along the corridor, as well as the proposed land use designations in the 2040 Comprehensive Plan. The following modifications are proposed: Area A‐4 has been split into two areas with distinct goals. The eight acre parcel at the southwest corner of Douglas Drive and Golden Valley Road will continue to be referenced in the Plan as Area A‐4. It will be guided as Mixed Use in the 2040 Comprehensive Plan and allow for residential and commercial uses. The parcels comprising the Tennant campus from Lilac Drive to the CP Railroad tracks, have been removed from Area A‐4 and will be referenced in the Plan as Area A‐6. The area will be guided Industrial in the 2040 Comprehensive Plan and allow for industrial and office related uses. One parcel will be guided Medium Density to accommodate an existing a residential facility. As required by statute, the Planning Commission reviewed the proposed plan modifications on March 26, 2018 and offered the following comments:  Ensure the Plan is up to date.  The undergrounding of utilities is important and should continue to be part of the Plan.  Inclusion of the properties along Duluth Street, between Douglas Drive and Highway 100, should be considered either now or in the future. Attachments  Redevelopment Plan for the Douglas Drive Corridor Redevelopment Project Area (9 pages)  Approved minutes from the Planning Commission meeting of 03‐26‐2018 (3 pages)  HRA Resolution No. 18‐04 adopting the Amended Douglas Drive Redevelopment Plan for the Douglas Drive Corridor Redevelopment Project Area (12 pages) Recommended Action Motion to adopt Resolution No. 18‐04 approving the modifications to the Redevelopment Plan for the Douglas Drive Corridor Redevelopment Project Area. 1 Redevelopment Plan for Douglas Drive Corridor Redevelopment Project Area Section 1. Introduction As part of a goal-setting session in 2006 the City Council identified Douglas Drive (CSAH 102) as a primary area of concern for the future of the City. As part of the 2008 update of the Comprehensive Plan, the City again identified the Douglas Drive Corridor from Medicine Lake Road (CSAH 70) to Minnesota Trunk Highway (TH) 55 as a priority for further study. There is significant through traffic from communities to the north and the mixture of land uses along the corridor in Golden Valley adds even more traffic. The volume of traffic combined with limited public right-of-way available for expansion will present challenges to improving this corridor and its public infrastructure. Traffic is heavy along the corridor due to its designation by Hennepin County as a minor arterial corridor. Its mixture of land uses including single- family, multi-family, offices, retail, schools, churches and industrial uses, some of which are blighted, could through redevelopment, become a more vibrant, integrated community. The initial focus of redevelopment has been on the east side of Douglas Drive between Duluth Street (CR 66) and the Union Pacific Railroad right-of-way. The City desires to look at this area in a comprehensive manner. The existing land use is a mixture of low-and-high density housing, some relatively new and some blighted, as well as office, commercial and industrial uses. Since the inception of the Douglas Drive Corridor Redevelopment Area, the City has partnered with Hennepin County to reconstruct Douglas Drive in 2016 and 2017 from Minnesota Trunk Highway 55 to Medicine Lake Road. This project includes construction of accessible sidewalks on both sides of the roadway for its entire length, dedicated on-street bike lanes, and lane realignments and traffic control improvements to encourage redevelopment opportunities. The new infrastructure is designed to last another 50 years with basic maintenance. Private investments within the project area includes the construction of a new operation facility by Centerpoint Energy, which brings additional employment to the area and maximizes land use, as well as reinvestment in the Douglas Drive Apartments. The areas South of Golden Valley Road to the Union Pacific Railroad and south of the Union Pacific Railroad to Minnesota Trunk Highway 55 are an additional focus of redevelopment going forward. The existing land use is primarily industrial and office as well as some single family homes and a residential facility. As an area where redevelopment and change are anticipated, this area offers significant opportunities to improve the Douglas Drive Corridor. Section 2. Statement of Need and Public Purpose, Statutory Authorization The Authority finds that there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties whose values are too low to pay for the public services required or rendered and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. 2 The Authority finds that in many cases such property cannot be developed without public participation and assistance in various forms including property acquisition and/or write-down, proper planning, the financing of development costs associated with clearance, grading and soil correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the Authority believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The Authority finds that in certain cases property within the Project Area would not or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that this Redevelopment Plan Conforms to the general plan for the development of the City as a whole. It is the intention of the Governing Body, notwithstanding the enumeration of specific goals and objectives in the Redevelopment Plan, that the Authority shall have and enjoy with respect to the Project Area the full range of powers and duties conferred upon the Authority pursuant to the HRA Act, the TIF Act, municipal housing and redevelopment authority laws, and such other legal authority as the Authority may have or enjoy from time to time. The HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Section 3. Background When Douglas Drive was initially constructed, the surrounding land uses were more rural in nature. Now a number of major employers including Honeywell and Tennant Company have a significant presence in the corridor and the average daily traffic on various sections of the corridor in Golden Valley range from 10,000 to 14,000 vehicle trips per day. The presence of numerous schools (Sandburg School, King of Grace Lutheran School and Perpich School of Performing Arts) and recreational facilities (Sandburg fields, Honeywell Little League field, Seeman and Hampshire Parks, and the Three Rivers Luce Line Trail) in the corridor increase the need for improved safety for non-motorized transportation. The Three Rivers Park District has constructed a portion of the Luce Line Trail through Golden Valley that provides a bicycle connection to regional amenities such as French Park in Plymouth and Wirth Park in Minneapolis. When the original Douglas Drive Redevelopment Area was established there were no safe north-south connections to this trail for bikers and pedestrians. In order to improve these connections Golden Valley received funding through the Non-Motorized Transportation Act to study this corridor and plan for future improvements to pedestrian, bicycle and transit connections in this corridor. The Principles for this study are outlined below. Section 4. Principles 1. Improve connectivity and functionality for all transportation modes. Douglas Drive, which is classified as a county state-aid highway in the Hennepin County Transportation Plan and minor arterial road in the City’s Comprehensive Plan, has historically focused on motorized vehicles. Traffic volume has increased significantly over the years as has the 3 need for better, safer pedestrian and non-motorized transportation and transit options. Significant improvements were made to bicycle and pedestrian facilities when the corridor was reconstructed in 2016 and 2017. However, intersection improvements at Highway 55 and Douglas Drive are critical to safer and improved movement for pedestrians, non- motorized, and vehicular traffic in the corridor. 2. Enable the corridor to maintain a diverse mix of land uses, including residential, commercial and industrial. A mix of activities, uses and densities will help to sustain the corridor through changing economic cycles, consumer preferences and housing trends. Clustered and mixed uses can create synergies, increase transit use and enhance the level of pedestrian activity. 3. Maximize integration rather than separation of land uses, where appropriate. Many land uses can benefit from increased integration with one another, including neighborhood-serving retail, multi-family and senior housing, offices, and low-impact services. Non-residential corridor uses should be buffered from adjacent residential neighborhoods. 4. Maintain the corridor as an employment center. Jobs within the corridor help maintain Golden Valley’s jobs-housing balance while sustaining commercial enterprises. Retaining ‘living wage’ jobs should be a priority. 5. Improve the visual coherence and attractiveness of the corridor. Improvements in streetscapes, landscaped areas, open spaces, building aesthetics and parking/service areas all contribute to a more unified and visually appealing environment, with an increased sense of identity. Buildings and other private improvements should make positive contributions to the corridor and the broader public realm, while public improvements should set the standard for private investment. 6. Foster neighborhood-serving retail and services. Multimodal links to commercial development should be enhanced. 7. Foster sustainable development and work to establish a balance between urban and natural systems. Encourage the application of green building and infrastructure techniques. Examples include low-impact development that maintains the natural functions of the land, encourages reduced stormwater runoff and fosters resource conservation and the use of renewable systems in new construction. Section 5. Goals and Objectives The current mix of incompatible land uses, minimal building setbacks from a high-traffic road, and the desirability of buffering residential uses from the high volume of traffic make the corridor an ideal candidate for broader redevelopment. A goal of the redevelopment addressed through the Douglas Drive reconstruction in partnership with Hennepin County has been to provide for additional right-of-way, including addressing impediments in the right- of-way (electrical poles, fire hydrants, utility boxes, etc.) that have complicated the infrastructure needs for the area and impeded pedestrian and bike access. Other goals, such as consolidating corridor land uses, require further redevelopment to address. 4 To achieve its mission of structured redevelopment, this Plan has identified six goals with related objectives to encourage cohesive planning and structured redevelopment within the corridor. It then outlines policies that will help to achieve the goals and objectives. Goal 1 – Improve vehicle, bicycle and pedestrian transportation. Objectives  Improved roadway with added pedestrian and non-motorized transportation facilities  Complete streets that meet vehicle, bicycle and pedestrian needs  Reduced impediments in the sidewalks  Undergrounded utilities  Consolidated access points onto Douglas Drive Goal 2 – Redevelop obsolete properties. Objectives  Blighted, functionally obsolete, and/or economically unsustainable buildings removed  New uses compatible with existing uses Goal 3 – Create jobs and life-cycle housing. Objectives  Increased high-paying jobs  Housing stock that is maintained or improved  Higher density housing  Housing for seniors and young families  Affordable housing  Commercial uses that serve the community Goal 4 – Require design that is sustainable and aesthetically pleasing. Objectives  Enhanced community identity through features which reflect Golden Valley  Visually attractive development that complements its surroundings  Buildings constructed with environmentally sustainable ‘green building’ practices (Development that meets environmental criteria set forth by Leadership in Energy and Environmental Design (LEED) and the United States Department of Energy).  Active living criteria included in design Goal 5 – Protect the environment. Objectives  Wetlands that are protected and enhanced  Land free of soil and wetland contamination  Arborous environments  Natural features retained and native vegetation (re)established  Co-located uses that reduce the amount of auto travel and corresponding air pollution  Best shoreline management practices implemented along Bassett Creek Goal 6 – Maintain a regional framework. Objectives  Growth compatible with the Metropolitan Council development framework  Public infrastructure designed in cooperation with Hennepin County, Three Rivers Park District, and the Minnesota Department of Transportation 5  Participation in grant programs available through Hennepin County, the Metropolitan Council and other agencies  A positive relationship with surrounding communities and governmental agencies  Continued participation in cooperative traffic management strategies  Improved transit options Section 6. Policies Land Use The City will study planned land uses to determine the need or desirability of individual parcel or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The City and HRA will assure that its review processes, zoning, and building regulations will promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the City’s land use plan. The City and HRA will review existing corridor properties to consider their long term viability and/or options for alternative uses. Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council’s regional growth strategy. Financing The City and HRA will identify criteria to target redevelopment funds such as tax increment financing, tax abatements, Livable Communities, Community Development Block Grants and other funding made available by the legislature or other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding options such as assessments, based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost of utility and infrastructure upgrades. Design and Environmental Standards The City will promote best practices to meet the highest environmental standards. The City and HRA will identify approaches and/or incentives to promote a corridor beautification program. This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation 6 The City will work with Metropolitan Transit to monitor transportation needs of area residents and workers and identify ways to improve transportation services including improving transit routes, and working with area businesses to develop transportation management plans. The City will work with Hennepin County, the State of Minnesota and other agencies to design and seek funding for an improved roadway with added pedestrian and non-motorized transportation facilities that meet city, county and state needs. Section 7. Redevelopment Area Defined In 2008-09 the City studied the full length of Douglas Drive from Medicine Lake Road on the north to Trunk Highway 55 on the south. The Douglas Drive Redevelopment Area includes the Douglas Drive street right-of-way and parcels on the east side of the street from Duluth St. to the Union Pacific railroad right-of-way to the south. This is an area that had no pedestrian infrastructure prior to the establishment of the Douglas Drive Redevelopment Area and the 2016/2017 road reconstruction. South of the Union Pacific railroad to TH 55, Douglas Drive has a number of commercial and industrial uses with redevelopment and reuse opportunities, including parcels near the Tennant campus. The full Douglas Drive Redevelopment Area is identified on Map A. The area is divided into subsections, based on land use. Area A-1 Area A-1 extends from Duluth Street south to the Canadian Pacific Railroad and is guided Commercial and Office. It has three parcels, with the following land uses: two gas stations and a multi-tenant office. Area A-2 Area A-2 extends from the Canadian Pacific Railroad south to Golden Valley Road. It is guided for Medium and High Density Residential. Existing land uses range from single family, duplex, and triplex units to three- to five- story rental apartment and condominium buildings and railroad facilities. The Metropolitan Council has identified this rail corridor for a regional, mixed-use trail on its 2030 Regional Parks System Map. Area A-3 Area A-3 extends from Golden Valley Road south to the Union Pacific Railroad/Luce Line Trail. It has only one parcel which is guided Industrial. A CenterPoint Energy peaking plant and maintenance center and a CenterPoint Energy operation facility built in 2015 currently occupy this site. Area A-4 Area A-4 comprises one parcel of nearly eight acres and was developed with an office building in 1979. It is currently owned and occupied by Tennant Company and houses approximately 400 employees. The area is presently guided for Office and zoned Business & Professional Office in a PUD. Area A-5 Area A-5 is located along Douglas Drive, south of the Union Pacific Railroad to Highway 55. The area includes six parcels developed with commercial and industrial buildings. On the west side of Douglas Drive is a vacant 350,000 square foot office and industrial building siting 7 on approximately 30 acres. The site is currently guided Commercial-Office and zoned Industrial. On the east side of Douglas Drive are five parcels. Included in these is a self -storage facility, and a bank located along the south and west side of the frontage road, which are guided Commercial and zoned Industrial. On the north and east side of the frontage road are an office building, and two industrial properties with multiple tenants. One property contains multiple buildings. These parcels are guided Industrial and zoned Industrial. Area A-6 Area A-6 includes six parcels, three of which are owned by Tennant Company as part of a PUD, along with right-of-way remnants and Zane Ave N. The area is located east of Douglas Drive and is bounded by the Canadian Pacific railroad on the west, the Union Pacific Railroad on the north, Highway 100 on the east and Highway 55 on the south. The area is guided Industrial but zoning is a mix of Industrial, Office and Residential. Residential uses include two single family homes and a residential facility. Section 8. Redevelopment Opportunities Infrastructure A main objective of redevelopment is the provision of public infrastructure, including: road improvements that accommodate existing and future development along the corridor while limiting direct access to the road; sidewalk, trail and bicycle facilities in conjunction with the roadway or in the CP Rail corridor that bisects and runs adjacent to the Redevelopment Area; ponding and storm sewer facilities that meet current environmental standards; and water and sanitary sewer upgrades to meet current and future needs. Area A-1 Proposed land uses for Area A-1 include commercial and office development consistent with its location near the key intersection of Douglas Drive and Duluth Street. The goal of redevelopment would be to provide high-quality uses and reduce the number of access points on both Douglas Drive and Duluth Street. Area A-2 The focus of Area A-2 would remain residential, but in keeping with the 2009 Comprehensive Plan, higher density housing could replace existing single-family, duplex and triplex housing. The goal of replacement housing would be to provide high-quality life-cycle housing that provides a greater range of housing options for Golden Valley residents and to reduce the number of access points on Douglas Drive. Area A-3 In Area A-3 the objective has been to maximize CenterPoint’s use of the site while keeping access points on Douglas Drive to a minimum. Expanded CenterPoint facilities like the operation facility built in 2015 complement the existing peaking facilities at this site and increase the intensity of land usage, enhance the tax base and bring additional employees to the corridor. Area A-4 The objective in Area A-4 is to prevent blight and maximize land use at the intersection of Golden Valley Road and Douglas Drive. Area A-4 is approximately eight acres and is 8 adjacent to multi-family and single family uses, as well as office and industrial uses. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, designates the parcel as Mixed Use. Area A-5 Golden Valley has experienced a significant number of multi-family apartment buildings in recent years, many of which have been built on former commercial or industrial properties. Area A-5 is a commercial and industrial area and should remain as such. However, many of the buildings are dated, do not have modern features required by contemporary users, and show indications of blight. Goals for Area A-5 include retaining and adding jobs through building renovation and redevelopment. Commercial amenities, such as restaurant or retail uses, either incorporated into projects or as stand-alone developments, may also be also be appropriate uses in the area if supported by the marketplace. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, guides the parcels west of Douglas Drive Light Industrial and those east of Douglas as Mixed Use. Area A-6 Plans to consolidate the parcels in Area A-6 to expand office and industrial related uses have been proposed but have not advanced. Objectives for this area include the expansion of office and industrial uses, retaining and expanding the number of jobs, eliminating blight, maximizing land use, minimizing incompatible land uses, and enhancing water quality in the Bassett Creek Watershed. To the extent possible, the preservation or addition of high quality trees in the area, along with the removal of invasive or low quality species should be considered as part of any future development. Additionally, continuation of the existing Residential Facility in Area A-6 is expected, and may include its future expansion. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, guides all the parcels in Area A-6 as Industrial, although the residential facility is guided Medium Density. 9 Minutes of the Golden Valley Planning Commission March 26, 2018 Page 6 hnson said there are some unintende consequences here. He said the homeowner c d cut down every tree on the lot if t y want to and then subdivide the property refe to the requested variances and aid the applicant makes some good ' s about mainta ' the character of the area, fo wing the tree preservation plan adding another ho to the tax base which are II good things. Baker referred to subdivision varian request and the re ements that must be met in order to grant a v ' nce. He said he esn't think the scant is meeting the requirements and he d 't think they'v heard a har ip in this case. The variance isn't required to preserve the pr rights the appli t, and the variance could be considered to be injurious to of grope in t eighborhood. Segelbaum agreed that the hardship requirements have not . e added that he is concerned about setting a precedent with granting subdivision va ces. Johnson said he would argue the special circumstance in this case is that the C' t things in place that make it difficult such as observing the tree preservation n, se ' the safety concerns of the County, and trying to maintain the nature of origin home. r said he thinks there are more unintended consequences w' approvin he subdivis variance. MOVED by Johnson, onded by Waldh user to recommen roval of a variance from Section 12.50, Sub (A)(2) Minimum Di ension Requirements flow proposed Lot 2 to be 17 feet off of required 80 feet to a dth of 63 feet and the mo ailed 5 to 1. Commissione aker, Blum, Brookins, S elbaum, and Waldhauser vo o. Commissio r Johnson voted yes. MOV y Segelbaum, seconded by Wa hauser and motion carried unanimous rec mend denial of the subdivision req st for the property located at 7040 Glenwood nue. 3. Douglas Drive Redevelopment Area Plan Expansion Nevinski gave some background information about the Douglas Drive Redevelopment Area Plan and stated that the plan's purpose is to outline existing conditions along Douglas Drive and identify a vision to help guide the Housing and Redevelopment Authority's activities. Nevinski showed a map of the original plan that was done in 2009-2010 that identified three areas along the east side of Douglas Drive as potential redevelopment/reinvestment areas. He then showed a map of proposed modifications that were done in 2017 in order to expand the areas in the Corridor Plan to include the area south of Golden Valley Road and the Tennant campus. Nevinski stated that the current proposed revised plan puts the Tennant campus in its own area (A-6). He said the vision hasn't changed and that it is expected to remain an industrial area with corporate office. He noted that area A-4 would be an 8-acre, mixed use site that would allow residential and commercial uses. He added that area A-5 would Minutes of the Golden Valley Planning Commission March 26, 2018 Page 7 include light industrial and mixed uses consistent with the goal of maintaining and adding jobs. Nevinski explained that the HRA statute requires that the Planning Commission consider this modified plan and provide comment and feedback. He stated that there is no tax increment being discussed and that there doesn't need to be any findings made. Blum stated that the Planning Commission is often times provided these proposals to comment on and he feels sometimes there isn't a lot of direction as to how critically they should be looking at the proposed modifications. Nevinski explained that this plan is reflective of the work that has been done through the 2040 Comprehensive Plan Update and it's reflective of previous discussions with the Planning Commission and City Council. He said this is fairly a high level plan and that the focus should be on whether it is consistent with where the City is going and if the 2040 Comprehensive Plan is aligning with this proposed modified plan. Johnson referred to area A-4 and noted that the objective is to prevent blight. He asked what kind of growth strategy that is. Nevinski said it isn't necessarily a growth strategy it is something the City wants to avoid and that a mix of uses is probably the most likely reuse of that site. Johnson asked why the word isn't used in area A-5. He said he strongly encourages the HRA and City Council to remember that Golden Valley is a fully developed suburb, land value is at an all-time high, the economy is booming, and this is not the time to consider TIF candidates. He said to let the market determine what can be here because if the City leads with a discount, it can never go back. Waldhauser referred to areas A-1 and A-2 and questioned how access points on Douglas Drive could be reduced as stated in the goals. Nevinski agreed that in certain areas having access points on Douglas is going to the case, but in other locations there could be some parcel consolidations that reduce access points. Waldhauser said it seems that area A-4 is a much better candidate for low-rise, multifamily or senior housing and that mixed use should be moved up to Highway 55 where it is being carved out for industrial. Baker referred to the land use chapter in the 2040 Comprehensive Plan and said the Planning Commission looked at a larger area that included Duluth Street. He asked why that larger area isn't included in this proposal in order to reflect the Comp Plan. Nevinski stated that historically, the City hasn't seen a lot of market interest in developing that area along Duluth Street. Segelbaum agreed. Blum asked is there is benefit in focusing development on a smaller area that will be more immediately benefited by the recent development on Douglas Drive. Nevinski said that is a point of consideration. Blum asked to what extent they can hold themselves to the goals and values outlined in the plans if there isn't a mechanism for enforceability. He added that he is concerned about losing momentum and specific desire in the future and it will be become something that doesn't get done. Minutes of the Golden Valley Planning Commission March 26, 2018 Page 8 Johnson asked if there are any other redevelopment plans in Golden Valley. Nevinski said there are four broad areas where the City sees the most opportunity: Douglas Drive, the 1- 394 Corridor, the 55 West District, and the LRT Corridor. Blum referred to the goal regarding underground utilities and asked if the utilities are underground in the Douglas Drive corridor. Nevinski said the utilities are underground in the Douglas Drive corridor. Blum said he thinks that is a great goal and he likes hearing that it is achievable. Waldhauser asked what housing is blighted in the area east of Douglas Drive. Nevinski said some of the information in the plan was written before the Douglas Drive apartment rehabilitation took place. He noted that there are some homes and a duplex that are dated and approaching blight. Baker said when he reviewed the plan he was looking for dates or struck language and said it was hard to understand. He said he thinks the plan needs to be updated. Nevinski said the plan was originally written in 2009 and some conditions have changed. Blum said he really likes the language in the plan that protects the environment. He said he also thinks the co-location of uses that reduce the amount of auto travel is a really great goal. Johnson asked when this plan is being considered by the City Council. Nevinski said it will be on the April 17 Council agenda. Segelbaum said he thinks the changes are positive and it makes sense to split area A-4 as proposed and to maintain area A-5 as job oriented. Discussion of 2017 Plan g Commission Annual Report Zimm an stated that every y r a summary of the Planning Commission's work get reviewe the City Council. H referred to the report and stat2g that the number of planning ap ' ations was down ompared to past years WAOWthe large Tennant proposal and th rk on the C prehensive Plan a took a lot of time. Baker said he would pr that a first ence of the report be changed to state that 2017 reflected the end of a in le so the emphasis was more on the Comprehensive Plan rather th aying it was a quiet year. Zimmerman reviewe ap of he Ci d highlighted some of the areas of change. Segelbaum d that he feels he sentiment om the Planning Commission is that they want to more retail base a small neighbor d commercial areas in the City and for le to stay here, not just ork here. Blum agr that tracks with some of the p Plan survey comments a ng with better transpo options. HRA Resolution No. 18-04 April 17, 2018 Commissioner introduced the following and moved its adoption: RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF GOLDEN VALLEY ADOPTING THE AMENDED DOUGLAS DRIVE REDEVELOPMENT PLAN FOR THE DOUGLAS DRIVE CORRIDOR REDEVELOPMENT PROJECT AREA BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (the “Authority”), as follows: 1. Amendment to Redevelopment Plan. The Authority previously adopted the original Redevelopment Plan (the “Redevelopment Plan”) for Douglas Drive Corridor Redevelopment Project Area (the “Redevelopment Area”) on November 10, 2008. The City and the Authority, in cooperation with the owners of certain properties along the Douglas Drive Corridor that were not included in the Redevelopment Area, propose to amend the Redevelopment Plan to reflect current conditions along the Douglas Drive Corridor and to expand the Redevelopment Area to include such additional properties. The Planning Commission of the City of Golden Valley approved the amended Redevelopment Plan (the “Amended Redevelopment Plan”) at its meeting on March 26, 2018. 2. Review of Amended Redevelopment Plan. The Authority has reviewed the Amended Redevelopment Plan for Douglas Drive Corridor Redevelopment Project Area (the “Amended Redevelopment Area”), which is attached as Exhibit A. 3. Findings for Approval of Project Plan. The Authority hereby makes the following findings: 3.01 The land in the Amended Redevelopment Area would not be made available for development or redevelopment, as the case may be, without the financial aid to be sought since private developers could not adequately develop or redevelop the Redevelopment Area without the proposed redevelopment activities. 3.02 The Amended Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the redevelopment of the Amended Redevelopment Area by private enterprise. 3.03 The City has undertaken a study of the Amended Redevelopment Area and determined that the properties proposed to be included therein are blighted as a result of being vacant, underused, structurally substandard and/or environmentally contaminated. 3.04 The redevelopment activities proposed in the Amended Redevelopment Plan would remove or reduce blight in the Amended Redevelopment Area and provide for an increase in employment and housing opportunities in the City and enhance the tax base. 3.05 The redevelopment activities proposed by the Amended Redevelopment Plan conform to the general plan for the development or redevelopment of the City as a whole. The redevelopment activities are compatible with the City’s zoning ordinances and other related regulations and encourage efficient use of existing infrastructure as set forth in the City’s Comprehensive Plan. HRA Resolution No. 18-04 -2- April 17, 2018 3.06 The Amended Redevelopment Plan provides an outline for the development or redevelopment of the Amended Redevelopment Area and is sufficiently complete to indicate its relationship to definite local objectives as to appropriate land uses and to indicate general land uses and general standards of development or redevelopment. 4. Approval and Adoption of Redevelopment Plan. The Amended Redevelopment Plan is hereby adopted, subject to approval by the City Council as provided in Section 5, based on the findings in Section 3 hereof. 5. Transmittal. The Authority does hereby transmit the Amended Redevelopment Plan to the Golden Valley City Council for approval after the same has been considered by the Council subsequent to a public hearing to be held in accordance with Minnesota Statutes, Chapter 469. 6. Filing. Following approval by the City Council, the Director is hereby authorized and directed to file the Amended Redevelopment Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor. _____________________________ Joanie Clausen, Chair ATTEST: _________________________________ Timothy J. Cruikshank, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and the signature attested by the Executive Director. HRA Resolution No. 18-04 -3- April 17, 2018 Exhibit A Redevelopment Plan for Douglas Drive Corridor Redevelopment Project Area HRA Resolution No. 18-04 -4- April 17, 2018 Redevelopment Plan for Douglas Drive Corridor Redevelopment Project Area Section 1. Introduction As part of a goal-setting session in 2006 the City Council identified Douglas Drive (CSAH 102) as a primary area of concern for the future of the City. As part of the 2008 update of the Comprehensive Plan, the City again identified the Douglas Drive Corridor from Medicine Lake Road (CSAH 70) to Minnesota Trunk Highway (TH) 55 as a priority for further study. There is significant through traffic from communities to the north and the mixture of land uses along the corridor in Golden Valley adds even more traffic. The volume of traffic combined with limited public right-of-way available for expansion will present challenges to improving this corridor and its public infrastructure. Traffic is heavy along the corridor due to its designation by Hennepin County as a minor arterial corridor. Its mixture of land uses including single-family, multi-family, offices, retail, schools, churches and industrial uses, some of which are blighted, could through redevelopment, become a more vibrant, integrated community. The initial focus of redevelopment has been on the east side of Douglas Drive between Duluth Street (CR 66) and the Union Pacific Railroad right-of-way. The City desires to look at this area in a comprehensive manner. The existing land use is a mixture of low-and-high density housing, some relatively new and some blighted, as well as office, commercial and industrial uses. Since the inception of the Douglas Drive Corridor Redevelopment Area, the City has partnered with Hennepin County to reconstruct Douglas Drive in 2016 and 2017 from Minnesota Trunk Highway 55 to Medicine Lake Road. This project includes construction of accessible sidewalks on both sides of the roadway for its entire length, dedicated on-street bike lanes, and lane realignments and traffic control improvements to encourage redevelopment opportunities. The new infrastructure is designed to last another 50 years with basic maintenance. Private investments within the project area includes the construction of a new operation facility by Centerpoint Energy, which brings additional employment to the area and maximizes land use, as well as reinvestment in the Douglas Drive Apartments. The areas South of Golden Valley Road to the Union Pacific Railroad and south of the Union Pacific Railroad to Minnesota Trunk Highway 55 are an additional focus of redevelopment going forward. The existing land use is primarily industrial and office as well as some single family homes and a residential facility. As an area where redevelopment and change are anticipated, this area offers significant opportunities to improve the Douglas Drive Corridor. Section 2. Statement of Need and Public Purpose, Statutory Authorization The Authority finds that there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties whose values are too low to pay for the public HRA Resolution No. 18-04 -5- April 17, 2018 services required or rendered and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The Authority finds that in many cases such property cannot be developed without public participation and assistance in various forms including property acquisition and/or write- down, proper planning, the financing of development costs associated with clearance, grading and soil correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the Authority believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The Authority finds that in certain cases property within the Project Area would not or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that this Redevelopment Plan Conforms to the general plan for the development of the City as a whole. It is the intention of the Governing Body, notwithstanding the enumeration of specific goals and objectives in the Redevelopment Plan, that the Authority shall have and enjoy with respect to the Project Area the full range of powers and duties conferred upon the Authority pursuant to the HRA Act, the TIF Act, municipal housing and redevelopment authority laws, and such other legal authority as the Authority may have or enjoy from time to time. The HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Section 3. Background When Douglas Drive was initially constructed, the surrounding land uses were more rural in nature. Now a number of major employers including Honeywell and Tennant Company have a significant presence in the corridor and the average daily traffic on various sections of the corridor in Golden Valley range from 10,000 to 14,000 vehicle trips per day. The presence of numerous schools (Sandburg School, King of Grace Lutheran School and Perpich School of Performing Arts) and recreational facilities (Sandburg fields, Honeywell Little League field, Seeman and Hampshire Parks, and the Three Rivers Luce Line Trail) in the corridor increase the need for improved safety for non-motorized transportation. The Three Rivers Park District has constructed a portion of the Luce Line Trail through Golden Valley that provides a bicycle connection to regional amenities such as French Park in Plymouth and Wirth Park in Minneapolis. When the original Douglas Drive Redevelopment Area was established there were no safe north-south connections to this trail for bikers and pedestrians. In order to improve these connections Golden Valley received funding through the Non-Motorized Transportation Act to study this corridor and plan for future improvements to pedestrian, bicycle and transit connections in this corridor. The Principles for this study are outlined below. HRA Resolution No. 18-04 -6- April 17, 2018 Section 4. Principles 1. Improve connectivity and functionality for all transportation modes. Douglas Drive, which is classified as a county state-aid highway in the Hennepin County Transportation Plan and minor arterial road in the City’s Comprehensive Plan, has historically focused on motorized vehicles. Traffic volume has increased significantly over the years as has the need for better, safer pedestrian and non-motorized transportation and transit options. Significant improvements were made to bicycle and pedestrian facilities when the corridor was reconstructed in 2016 and 2017. However, intersection improvements at Highway 55 and Douglas Drive are critical to safer and improved movement for pedestrians, non-motorized, and vehicular traffic in the corridor. 2. Enable the corridor to maintain a diverse mix of land uses, including residential, commercial and industrial. A mix of activities, uses and densities will help to sustain the corridor through changing economic cycles, consumer preferences and housing trends. Clustered and mixed uses can create synergies, increase transit use and enhance the level of pedestrian activity. 3. Maximize integration rather than separation of land uses, where appropriate. Many land uses can benefit from increased integration with one another, including neighborhood-serving retail, multi-family and senior housing, offices, and low-impact services. Non-residential corridor uses should be buffered from adjacent residential neighborhoods. 4. Maintain the corridor as an employment center. Jobs within the corridor help maintain Golden Valley’s jobs-housing balance while sustaining commercial enterprises. Retaining ‘living wage’ jobs should be a priority. 5. Improve the visual coherence and attractiveness of the corridor. Improvements in streetscapes, landscaped areas, open spaces, building aesthetics and parking/service areas all contribute to a more unified and visually appealing environment, with an increased sense of identity. Buildings and other private improvements should make positive contributions to the corridor and the broader public realm, while public improvements should set the standard for private investment. 6. Foster neighborhood-serving retail and services. Multimodal links to commercial development should be enhanced. 7. Foster sustainable development and work to establish a balance between urban and natural systems. Encourage the application of green building and infrastructure techniques. Examples include low-impact development that maintains the natural functions of the land, encourages reduced stormwater runoff and fosters resource conservation and the use of renewable systems in new construction. Section 5. Goals and Objectives The current mix of incompatible land uses, minimal building setbacks from a high-traffic road, and the desirability of buffering residential uses from the high volume of traffic make the corridor an ideal candidate for broader redevelopment. A goal of the redevelopment addressed through the Douglas Drive reconstruction in partnership with Hennepin County has been to provide for additional right-of-way, including addressing impediments in the HRA Resolution No. 18-04 -7- April 17, 2018 right-of-way (electrical poles, fire hydrants, utility boxes, etc.) that have complicated the infrastructure needs for the area and impeded pedestrian and bike access. Other goals, such as consolidating corridor land uses, require further redevelopment to address. To achieve its mission of structured redevelopment, this Plan has identified six goals with related objectives to encourage cohesive planning and structured redevelopment within the corridor. It then outlines policies that will help to achieve the goals and objectives. Goal 1 – Improve vehicle, bicycle and pedestrian transportation. Objectives  Improved roadway with added pedestrian and non-motorized transportation facilities  Complete streets that meet vehicle, bicycle and pedestrian needs  Reduced impediments in the sidewalks  Undergrounded utilities  Consolidated access points onto Douglas Drive Goal 2 – Redevelop obsolete properties. Objectives  Blighted, functionally obsolete, and/or economically unsustainable buildings removed  New uses compatible with existing uses Goal 3 – Create jobs and life-cycle housing. Objectives  Increased high-paying jobs  Housing stock that is maintained or improved  Higher density housing  Housing for seniors and young families  Affordable housing  Commercial uses that serve the community Goal 4 – Require design that is sustainable and aesthetically pleasing. Objectives  Enhanced community identity through features which reflect Golden Valley  Visually attractive development that complements its surroundings  Buildings constructed with environmentally sustainable ‘green building’ practices (Development that meets environmental criteria set forth by Leadership in Energy and Environmental Design (LEED) and the United States Department of Energy).  Active living criteria included in design Goal 5 – Protect the environment. Objectives  Wetlands that are protected and enhanced  Land free of soil and wetland contamination  Arborous environments  Natural features retained and native vegetation (re)established  Co-located uses that reduce the amount of auto travel and corresponding air pollution  Best shoreline management practices implemented along Bassett Creek HRA Resolution No. 18-04 -8- April 17, 2018 Goal 6 – Maintain a regional framework. Objectives  Growth compatible with the Metropolitan Council development framework  Public infrastructure designed in cooperation with Hennepin County, Three Rivers Park District, and the Minnesota Department of Transportation  Participation in grant programs available through Hennepin County, the Metropolitan Council and other agencies  A positive relationship with surrounding communities and governmental agencies  Continued participation in cooperative traffic management strategies  Improved transit options Section 6. Policies Land Use The City will study planned land uses to determine the need or desirability of individual parcel or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The City and HRA will assure that its review processes, zoning, and building regulations will promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the City’s land use plan. The City and HRA will review existing corridor properties to consider their long term viability and/or options for alternative uses. Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council’s regional growth strategy. Financing The City and HRA will identify criteria to target redevelopment funds such as tax increment financing, tax abatements, Livable Communities, Community Development Block Grants and other funding made available by the legislature or other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding options such as assessments, based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost of utility and infrastructure upgrades. Design and Environmental Standards The City will promote best practices to meet the highest environmental standards. HRA Resolution No. 18-04 -9- April 17, 2018 The City and HRA will identify approaches and/or incentives to promote a corridor beautification program. This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation The City will work with Metropolitan Transit to monitor transportation needs of area residents and workers and identify ways to improve transportation services including improving transit routes, and working with area businesses to develop transportation management plans. The City will work with Hennepin County, the State of Minnesota and other agencies to design and seek funding for an improved roadway with added pedestrian and non- motorized transportation facilities that meet city, county and state needs. Section 7. Redevelopment Area Defined In 2008-09 the City studied the full length of Douglas Drive from Medicine Lake Road on the north to Trunk Highway 55 on the south. The Douglas Drive Redevelopment Area includes the Douglas Drive street right-of-way and parcels on the east side of the street from Duluth St. to the Union Pacific railroad right-of-way to the south. This is an area that had no pedestrian infrastructure prior to the establishment of the Douglas Drive Redevelopment Area and the 2016/2017 road reconstruction. South of the Union Pacific railroad to TH 55, Douglas Drive has a number of commercial and industrial uses with redevelopment and reuse opportunities, including parcels near the Tennant campus. The full Douglas Drive Redevelopment Area is identified on Map A. The area is divided into subsections, based on land use. Area A-1 Area A-1 extends from Duluth Street south to the Canadian Pacific Railroad and is guided Commercial and Office. It has three parcels, with the following land uses: two gas stations and a multi-tenant office. Area A-2 Area A-2 extends from the Canadian Pacific Railroad south to Golden Valley Road. It is guided for Medium and High Density Residential. Existing land uses range from single family, duplex, and triplex units to three- to five- story rental apartment and condominium buildings and railroad facilities. The Metropolitan Council has identified this rail corridor for a regional, mixed-use trail on its 2030 Regional Parks System Map. Area A-3 Area A-3 extends from Golden Valley Road south to the Union Pacific Railroad/Luce Line Trail. It has only one parcel which is guided Industrial. A CenterPoint Energy peaking plant and maintenance center and a CenterPoint Energy operation facility built in 2015 currently occupy this site. Area A-4 Area A-4 comprises one parcel of nearly eight acres and was developed with an office building in 1979. It is currently owned and occupied by Tennant Company and houses HRA Resolution No. 18-04 -10- April 17, 2018 approximately 400 employees. The area is presently guided for Office and zoned Business & Professional Office in a PUD. Area A-5 Area A-5 is located along Douglas Drive, south of the Union Pacific Railroad to Highway 55. The area includes six parcels developed with commercial and industrial buildings. On the west side of Douglas Drive is a vacant 350,000 square foot office and industrial building siting on approximately 30 acres. The site is currently guided Commercial-Office and zoned Industrial. On the east side of Douglas Drive are five parcels. Included in these is a self-storage facility, and a bank located along the south and west side of the frontage road, which are guided Commercial and zoned Industrial. On the north and east side of the frontage road are an office building, and two industrial properties with multiple tenants. One property contains multiple buildings. These parcels are guided Industrial and zoned Industrial. Area A-6 Area A-6 includes six parcels, three of which are owned by Tennant Company as part of a PUD, along with right-of-way remnants and Zane Ave N. The area is located east of Douglas Drive and is bounded by the Canadian Pacific railroad on the west, the Union Pacific Railroad on the north, Highway 100 on the east and Highway 55 on the south. The area is guided Industrial but zoning is a mix of Industrial, Office and Residential. Residential uses include two single family homes and a residential facility. Section 8. Redevelopment Opportunities Infrastructure A main objective of redevelopment is the provision of public infrastructure, including: road improvements that accommodate existing and future development along the corridor while limiting direct access to the road; sidewalk, trail and bicycle facilities in conjunction with the roadway or in the CP Rail corridor that bisects and runs adjacent to the Redevelopment Area; ponding and storm sewer facilities that meet current environmental standards; and water and sanitary sewer upgrades to meet current and future needs. Area A-1 Proposed land uses for Area A-1 include commercial and office development consistent with its location near the key intersection of Douglas Drive and Duluth Street. The goal of redevelopment would be to provide high-quality uses and reduce the number of access points on both Douglas Drive and Duluth Street. Area A-2 The focus of Area A-2 would remain residential, but in keeping with the 2009 Comprehensive Plan, higher density housing could replace existing single-family, duplex and triplex housing. The goal of replacement housing would be to provide high-quality life- cycle housing that provides a greater range of housing options for Golden Valley residents and to reduce the number of access points on Douglas Drive. HRA Resolution No. 18-04 -11- April 17, 2018 Area A-3 In Area A-3 the objective has been to maximize CenterPoint’s use of the site while keeping access points on Douglas Drive to a minimum. Expanded CenterPoint facilities like the operation facility built in 2015 complement the existing peaking facilities at this site and increase the intensity of land usage, enhance the tax base and bring additional employees to the corridor. Area A-4 The objective in Area A-4 is to prevent blight and maximize land use at the intersection of Golden Valley Road and Douglas Drive. Area A-4 is approximately eight acres and is adjacent to multi-family and single family uses, as well as office and industrial uses. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, designates the parcel as Mixed Use. Area A-5 Golden Valley has experienced a significant number of multi-family apartment buildings in recent years, many of which have been built on former commercial or industrial properties. Area A-5 is a commercial and industrial area and should remain as such. However, many of the buildings are dated, do not have modern features required by contemporary users, and show indications of blight. Goals for Area A-5 include retaining and adding jobs through building renovation and redevelopment. Commercial amenities, such as restaurant or retail uses, either incorporated into projects or as stand-alone developments, may also be also be appropriate uses in the area if supported by the marketplace. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, guides the parcels west of Douglas Drive Light Industrial and those east of Douglas as Mixed Use. Area A-6 Plans to consolidate the parcels in Area A-6 to expand office and industrial related uses have been proposed but have not advanced. Objectives for this area include the expansion of office and industrial uses, retaining and expanding the number of jobs, eliminating blight, maximizing land use, minimizing incompatible land uses, and enhancing water quality in the Bassett Creek Watershed. To the extent possible, the preservation or addition of high quality trees in the area, along with the removal of invasive or low quality species should be considered as part of any future development. Additionally, continuation of the existing Residential Facility in Area A-6 is expected, and may include its future expansion. The 2040 Comprehensive Plan, which is scheduled for adoption in 2018, guides all the parcels in Area A-6 as Industrial, although the residential facility is guided Medium Density. HRA Resolution No. 18-04 -12- April 17, 2018