Loading...
HomeMy WebLinkAbout1A, Arden Village Discussion 'I't ,- 1ZE_N�HILLS Request for Council Action 1A Prepared By: Meagan Beekman, City Planner Work Session Date: November 13, 2012 Arden Village Discussion Budgeted Amount: Actual Amount: Funding Source: NA NA NA Discussion Topic: Review proposed changes to the Arden Village Master and Final PUD and provide direction on how to proceed with processing revisions. Supporting Documents: 1. Memorandum from Meagan Beekman, dated November 13, 2012 2. October 24, 2012, Letter from Ramsey County HRA 3. November 8, 2012, Letter from SCI Regarding Arden Village Revisions '!Tt ,-ARZEN HILLS MEMORANDUM DATE: November 13, 2012 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Planning Case #09-021 Applicant: Sand Companies, Inc—Arden Village Property Location: 1296 County Road F Subject: Arden Village Development Agreement Requested Action Review proposed changes to the Arden Village Master and Final PUD and provide direction on how to proceed with processing revisions. Background Sand Companies, Inc (SCI) received approval in 2010 for an affordable rental housing development at 1296 County Road F. The approved 4-story building consisted of 55 housing units with one to three bedrooms, a 55-stall underground parking garage, and a 55-stall surface lot. The development also included a tot lot playground and picnic area for residents. The approval required the property to be rezoned from I-1, Limited Industrial District to R-4, Multiple Dwelling District. In order to rezone the property, a Comprehensive Plan Amendment was also required. Prior to City land use approvals, the 2.76-acre property operated under a Conditional Use Permit (CUP) that was approved in 1972 for a 240-foot communications tower. SCI requested a Preliminary and Final Plat to subdivide the property into two parcels, and a Master and Final PUD for the development itself. Because the CUP encompassed the entire property, a CUP Amendment was needed to reflect the proposed legal description for the newly subdivided lot. City of Arden Hills City Council Work Session for November 13, 2012 P:IPlanningTlanning Cases12009(laserfrched)M-021 Arden Village PUD,Plat,Rezoning(APPROVED)12012 Development Agreement AmendmentVI-13-12-CC Work Session-Arden Village.doc Page 1 of 4 On March 8, 2010, the City Council gave land use approvals for the Arden Village project including Conditional Use Permit Amendment, Rezoning, Comprehensive Plan Amendment, Preliminary and Final Plat, and Master and Final Planned Unit Development. The Council also approved a development agreement. SCI went through several funding cycles with Minnesota Housing Finance Agency in their attempt to get tax credits to assist in financing the affordable housing project. They have not been successful in their attempts to secure funding. As a result SCI has decided to move forward with the construction of the apartment building, but as a market rate project, rather than an affordable housing development. SCI has also received funding from the Ramsey County HRA in the form of a loan from the HOME Investment Partnership Program for the Arden Village development. In exchange for the assistance, Arden Village must have four units set aside for households whose incomes are less than 80% of the area median (Attachment A). SCI has submitted a letter addressing their proposed plan modifications (Attachment B). Modifications to Plan In light of the project changing from affordable to market rate, SCI contracted with Maxfield Research to conduct a market study related to apartment demand. The study found a greater demand for single and double units, versus family sized 3-bedroom units. As a result of the market study, SCI is proposing to convert many of the 3-bedroom units in the building to 1 and 2-bedroom units. No efficiency units are proposed. Originally Approved Units Mix Proposed Revised Unit Mix 1 BR—9 units 1 BR—27 units 2 BR—23 units 2 BR—27 units 3 BR—23 units 3 BR—6 units Total= 55 units Total = 60 units The revised unit mix would create five additional units, which increases the density of the project from 20 units per acre to 21.7 units per acre. The total number of bedrooms in the building would decrease from 124 to 99. While the unit sizes vary slightly,the smallest 1-bedroom unit is 750 square feet,2-bedroom is 1,080 square feet, and 3-bedroom is 1,350 square feet. In addition to changes in the unit mix, SCI is proposing higher quality interior finishes, including granite counter tops, 9-foot ceilings, a larger community room, fitness center, and additional outdoor recreation areas and amenities. City of Arden Hills City Council Work Session for November 13, 2012 P:IPlanninglPlanning CaseW009(7aserfiched)M-021 Arden Village PUD,Plat,Rezoning(APPROVED)12012 Development Agreement AmendmentW-13-12-CC Work Session-Arden Village.doc Page 2 of 4 The change in unit mix may also impact the footprint of the building slightly, though Staff anticipates that any footprint modifications would be minimal. SCI will present a site plan and any revisions to the footprint to the Council at the November 8 work session. All other aspects of the project would remain the same, including 1:1 underground parking, and exterior building finishes. The project also meets all of the standards for multi-family dwellings that the Council recently adopted. Approval Impacts As part of the PUD approval for this project, the City granted several flexibilities from the Zoning Code: • Comp plan amendment from Utility to High Density Residential • Zoning Code Amendment from 1-1 to R-4 • Density bonus from 12 units per acre to just under 20 units per acre • A reduction in the number of replacement caliper inches required from 557 to 210 It should be noted that the project was subject to park dedication and in lieu of paying cash park dedication, the City asked SCI to construct a trail segment that connected their development to the City's sidewalk system, to which SCI agreed. The anticipated cost of the trail segment exceeded the amount that would have been owed as a park dedication payment. The only flexibility that was granted as a direct result of the affordability component of the project was the tree replacement reduction. It may be appropriate to revisit this reduction as part of the discussion to convert the development from affordable to market rate. Staff has asked SCI to address this item at the meeting on Tuesday. Approval Process One of the conditions added to every land use approval is that the project must be constructed in accordance with the approved plans, and that any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission and City Council. This condition allows staff to approve minor modifications to plans, which are common during the construction process. While staff feels that the modifications proposed by SCI for the Arden Village project are minor in nature, due to the visibility and interest in this particular project, staff is bringing these revisions to the Council for review. If the Council determines that the proposed plans constitute minor modifications to the approved plans, Staff will proceed with drafting a development agreement amendment that includes the minor modifications and bring this item to Council at the City of Arden Hills City Council Work Session for November 13, 2012 P:IPlanningManning Cases12009(laserfiched)W-021 Arden Village PUD,Plat,Rezoning(APPROVED)12012 Development Agreement Amendmentlll-13-12-CC Work Session-Arden Village.doc Page 3 of 4 next available meeting. This is a similar process to how the Council approved the change from CVS to Walgreen's for the Arden Plaza development. The alternative action would be for the Council to determine that the proposed changes are significant, which would require a Master and Final PUD Amendment in order to approve. The application would then go back to the Planning Commission for review and a public hearing. Because of the Planning Commission's schedule this item would not be able to move forward until January. The delay may have a negative impact on SCI, given that they have received a special loan from the Ramsey County HRA in exchange for designating four affordable units with rent and income restrictions, and as part of that funding are required to complete the project in 2013. They are interested in moving forward with construction as soon as possible. Recommendation Staff is recommending that the Council determine that the proposed revisions to the approved plans are minor modifications, and to direct staff to draft a development agreement amendment with SCI for approval by the City Council. Requested Action Review proposed changes to the Arden Village Master and Final PUD and provide direction on how to proceed with processing revisions. Attachments A. October 24, 2012, Letter from Ramsey County HRA B. November 8, 2012, Letter from SCI Regarding Arden Village Revisions City of Arden Hills City Council Work Session for November 13, 2012 P:Tlannin&lanning Cases12009(laserf:ched)M-021 Arden Village PUD,Plat,Rezoning(APPROVED)12012 Development Agreement AmendmentV 1-13-12-CC Work Session-Arden Village.doc Page 4 of 4 Office of the County Manager Julie Kleinschmidt, County Manager 250 Court House Tel:651-266-8000 Ramsey County 15 West Kellogg Boulevard Fax:651-266-8039 St.Paul,MN 55102 e-mail: Julie.kleinschmidt @co.ramsey.mn.us Working',Ah You To Enhance Our Q,.Ifty of Lifc October 24,2012 Jamie Thelen Arden Village, LLC. 366 South Tenth Avenue PO Box 727 Waite Park,MN 56387 RE: ARDEN VILLAGE DEVELOPMENT PROJECT Dear Mr.Thelen: Ramsey County is pleased to be able to provide financial support for development of Arden Village.This is the first major project we've been invited to participate in Arden Hills and believe it is an important project for the City. The Ramsey County Housing and Redevelopment Authority has approved an award of HOME Investment Partnership Program funding of$365,000. In return, Sand Companies agrees to set-aside 4 units for households whose incomes are less than 80%of the Area Median Income at rent levels, including utilities,as published by the US Department of Housing and Urban Development.The set-aside will be effective for a minimum of 20 years following first occupancy of the HOME-Assisted units.Sand Companies will complete beneficiary reports annually during the period. Ramsey County will be drafting agreements in anticipation of a closing date on or about January 15,2013.The verbally agreed upon terms for the$365,000 loan are 1%repaid quarterly over 30 years,with deferred for 24 months from start of construction. Ramsey County has proposed that the first payment will be due on or about April 1, 2015, based on amortization beginning January 1, 2015. No interest will accrue until the amortization period has been initiated, Ramsey County's loan will be subordinate to the first mortgage and the loan may be repaid without penalty prior to the end of the term. We are looking forward to completion of the project and the addition of new affordable rental units for larger families in the community. Please don't hesitate to contact us if you have questions or would like additional information. With best wishes, Sincerely, M.Denise Beigbeder Community and Economic Development CC: Ann Schwartz, Ramsey County Attorney's Office Excellence + Respect • Diversity November 8, 2012 SCI Sent Via E-Mail Transmission Sand Com panies, Inc. 366 South Tenth Avenue PO Box 727 Ms. Meagan Beekman Waite Park, MN 56387-0727 City of Arden Hills Office: (320)202-3100 1245 West Highway 96 Fax: (320)202-3139 Arden Hills, Minnesota 55112 E-Mail: SCI @SandCompanies.com Website: www.SandCompanies.com RE: Arden Village Update. Dear Meagan, As the City is aware,we proposed constructing the Arden Village apartment development as a 100%affordable housing development. We have submitted the project a number of times to Minnesota Housing Finance Agency. A few weeks ago,we were notified by MHFA that the project was not selected. As we mentioned to the City, if it wasn't funded this round our intention was to move the project forward as a market rate development. We have already begun the process of this including securing the financing and revising the plans and specifications. We recently had Maxfield Research, Inc. conduct a new market study to determine the market need and design requirements. Maxfield has determined the market need is for more singles and individuals sharing apartment housing. Another significant market driver because of all the employment around the site is for professionals that may be recent hires that are just coming into the market. With this new market demographic, we are looking at providing more amenities and features such as nine foot ceilings,granite countertops, a larger community room,fitness center, outdoor recreation area and other amenities. With our prior family housing project, most of the units were two and three bedrooms. With the change away from families, it is Maxfield Research's recommendation to eliminate nearly all the three bedroom units and incorporate more one and two bedroom units. Below is the prior mix we have as compared to the projected new unit mix. Prior Unit Mix Revised Unit Mix 1 BR—9 units 1 BR—27 units 2 BR—23 units 2 BR—27 units 3 BR—23 units 3 BR—6 units TOTAL= 55 UNITS TOTAL=60 UNITS Construction ® Property Management. 4 Development Equal Opportunity Employer Page 2of2 Arden Village Update Although the unit count has changed, we are able to keep basically the same footprint of the building that was proposed before. The new design will still provide 1:1 parking underneath the building and the elevations including building materials will remain the same. Wm are also working with the Ramsey County HRAtb provide HOME funds for the project inexChangefor designating approximately four affordable units with rent and income restrictions for the next 20 years. VVe are requesting a minor amendment to the development agreement reflecting this change to the development plans. With this, we can jndmneJiate|y move forward with the finalizing our construction plans soVxe can begin construction in early%O13. Thank you for your consideration. Sincerely, Jamie J.'Thelen ` _--_- Chief Executive Officer