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18-04 - 04-17 - Adopt amended Douglas Drive Redevelopment Plan HRA Resolution No. 18-04 April 17, 2018 Commissioner Harris 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: kk Timo y J. Cruikshank, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner Rosenquist, upon a vote being taken thereon, the following voted in favor thereof: Clausen, Fonnest, Harris, Rosenquist and Schmidgall and the following voted against the same: none, 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 'Duluth St Area A-1 Douglas Drive z Redevelopment Areas v Area A-1 Q Area A-2 oArea A-3 ' Q Area A-4 Area A-6 Q Area A-6 Area A-2 t. Mia Lindsay Sf Area A-4 Area A-3 z o z `_ + < Union Pacific RR z a � d N O cM l J Area C-5 Area A� N Frontage Rd by the City of Golden Valley, 3120/2018 ° 300 BD0 12M Feet