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HomeMy WebLinkAbout1.B Old City Hall RFP Update MEMORANDUM DATE:Agenda Item 1.B April 20, 2009 TO: Mayor and City Council FROM: James Lehnhoff, Community Development Director SUBJECT: Former City Hall/Public Works Property RFP Reuse Visioning Process Project Update Requested Action 1. Direct staff to re-engage the community planning process and complete a draft RFP. Or 2. Place the project on hold for a specified time period. Background At the July 9, 2007, meeting, the City Council directed staff to prepare a Request for Proposals (RFP) for the sale and redevelopment of the former Arden Hills City Hall/Public Works property at 1450 West Highway 96. The RFP was to be prepared through a series of workshops with community, City Council, Economic Development Commission, and Planning Commission input. Instead of inviting open offers from potential developers, the RFP would provide guidance on the uses and type of development desired for this property. The RFP would be subject to Council approval prior to official release to developers. The City has since held joint work sessions with the City Council and Planning Commission in October 2007 and February 2008, community meetings in December 2007 and March 2008, and had discussions with the Economic Development Commission. Due to other higher priority City of Arden Hills City Council Work Session for April 20, 2009 \\Metro-inet.us\ardenhills\Planning\Development Projects\Former City Hall-Public Works Site Reuse\042009 - CC Work Session - Old City Hall RFP Update.doc Page 1 of 3 projects and market conditions, the project has essentially been on hold since the last update was provided to Council in May 2008. Staff has kept in touch with the adjacent townhome association and interested residents to assure them that although the process has been on hold, the City remains committed to the community planning and RFP process. Additionally, people were informed that there would be time for public review and comment before the RFP is approved. Project Timeline Options While the market has changed considerably since the last development proposal was reviewed in the summer of 2006, the City has received a few phone calls from developers with interest in the property. Potential developers are informed of the community planning process to prepare the RFP. Although other projects have a higher priority in the coming months (i.e. rental regulations), it should be possible to prepare a working draft RFP for Council and public review as early as the June work session pending room on that agenda. When last reviewed, the RFP process was leading toward a primarily residential use on the property. The issue regarding access to Hamline Avenue requires discussion as do a few other topics that could be discussed along with a working RFP draft. The housing market has experienced a severe decline in recent months; however, there has been activity in multi-family housing in the metropolitan area. There a metro-wide need for affordable housing and it may be possible to have a percentage of any development include units with prices in the affordable housing range.Office development, many types of retail, and condos/townhomes could prove to be difficult at this time. Once staff drafts the RFP, it would be brought to a work session and open for public review and comment prior to that. After the RFP is reviewed and approved by the City Council, it would be released to potential developers. The RFP would list the requirements set by the City, and developers would be able to submit proposals that meet the requirements listed in the RFP. The proposals would then be evaluated by the City for compliance with the RFP and, if a proposal meets the requirements set by the City, it can be accepted. Any project would then go through the normal City review process, which would likely include a planned unit development. Staff can move forward with preparing the RFP for Council review; however, there may be some merit in delaying the project pending changes in the economy. Since the sale value of the property has likely fallen, we may get fewer developers responding to an RFP. If the responses do work to meet the City’s goals, the City would not have to accept a proposal. City of Arden Hills City Council Work Session for April 20, 2009 \\Ahdocs1\ah\AHdata\Planning\Development Projects\Former City Hall-Public Works Site Reuse\042009 - CC Work Session - Old City Hall RFP Update.doc Page 2 of 3 Visioning Process – Community Meeting Summary A copy of the May 7, 2008, memo that was distributed to the Council for informational purposes is attached, though it was not discussed at a work session. This memo is a compilation of the ideas and comments from the second community meeting that was held in March 2008. It also includes information on access ideas to Hamline Avenue and Highway 96. Property Appraisal The most recent appraisal of the property was completed on January 28, 2006, which set a value of $2,375,000 based on a highest and best use of “limited business development.” The January 2006 is almost certainly out of date. The 2009 Ramsey County assessed value is $1,581,000, though value of the land will be impacted by demand as well as the type and intensity of uses desired by the RFP. Once the RFP is prepared, a new appraisal can be ordered to help evaluate responses to the RFP. 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