HomeMy WebLinkAbout9A, Holiday Inn Resuse Concept Proposal
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City Council
Agenda Packet Item:
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Request for Council Action
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Final Action Needede __
Budgeted Amount:
Actual Amount:
Funding Source:
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Provide questions, comments, questions, and concerns regarding Northwestern College's concept of reusing the former Holiday Inn as a
temporary student dormitory.
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P~rovjde 'q'uestions: co'mments,'q'uestioilS; and concerns regarding Northwestern College's concept of reusing the former Holiday Inn as a
temporary student dormitory.
PTRC:
X Memo/Letter:
Resolution No.:
Ordinance No.:
February 11, 2008, Memo to the City Council
Engineering Recommendation:
Attorney Recommendation:
X Other:
January 22, 2008, Letter from Northwestern College to the Mayor and City Council
February 4, 2008, Letter from The Davidson Companies
Mapc>f ~tt_~f(>rl"I1er 1:"I(>I_i~CI'yII'1_I'1_p~c>perty (1201 _ <::(>uJlty ~(>Clcf E)
:A~rnhli$tratoflS~ff:BOtniHfh1ts;
Since this idea is ^in- concept form, no comments are binding, and the Council cannot give an official yes or no to the concept. However,
obtaining preliminary feedback can help the College determine if they want to move forward with an official application, and can help Staff
prepare for future questions and concerns.
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MEMORANDUM
DATE:
February I 1,2008
TO:
Mayor & City Council
James Lehnhoff, City Planner /
Former Holiday Inn Reuse Concept Proposal
FROM:
SUBJECT:
Request
Provide questions, comments, questions, and concerns regarding Northwestern College's concept of
reusing the former Holiday Inn as a temporary student donnitory. Since this idea is in concept form,
no comments are binding, and the Council cannot give an official yes or no to the concept. However,
obtaining preliminary feedback can help the College determine if they want to move forward with an
official application, and can help Staff prepare for future questions and concerns.
Back!!round
In the second half of 2007, the Holiday Inn at the northwest intersection of Lexington A venue and
County Road E was closed. The property owners have put the property up for sale, but, to date, the
property remains unsold.
Northwestern College approached City Staff in January with the concept of using the former Holiday
Inn as temporary student housing through May 201 I. The existing hotel could house approximately
300 students if such a use were allowed. The College has submitted a letter to the City describing the
concept in order to obtain preliminary feedback to determine if they want to move forward with the
concept (Attachment A). According to the College, this concept would not accelerate the planned
growth described in their recently approved Master PUD; instead, it would allow the College to
increase the age in which students must live in campus housing.
The Zoning Code defines student dorms as "institutional housing," which is currently not permitted
in the B-2 Zone. For this concept to move forward, a number of steps and City approvals would need
to occur.
Process
In order for this concept to move forward, the following process would need to occur:
I. Zoning Code amendment to add the interim use pennit process to the Zoning Code.
\\Metro-inet.uslardenhills\Planning\Del'elopmen! ProjectslNorthlreSlern Collegel021108 - NWC-Holiday Inn Concept Proposa!.doc
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2. Zoning Code amendment to allow institutional housing as an interim use in the B-2 Zone.
3. The property owner would need to obtain an approved interim use permit to legally permit
institutional housing on a temporary basis on the former Holiday Inn property.
While the College has stated that the student housing use would be temporary, the City currently
does not have a legal tool to place an expiration date on any particular use if the use is categorized as
a permitted use or conditional use. Within State Statutes, however, there is a tool called the inlerim
use permit. This permit is similar to a conditional use permit except that a city can place an
expiration date on the use. In order to use this tool, this process would need to be added to the
Zoning Code along with a set of requirements that must be met in order to grant the interim use
permit. In the case of institutional housing, the City could require each room to have a bathroom,
limit the number of people in the building, require mass transportation to and from campus, etc.
Adding this process to the Zoning Code requires a public hearing with the Planning Commission and
Council approval. The interim use process could be useful in other situations in the future.
As noted above, institutional housing is currently not allowed in the B-2 Zone. Since it is against
State Statutes to grant a variance for a use, the B-2 zoning regulations would need to be amended to
add institutional housing as an interim use. This Zoning Code addition would require a public
hearing with the Planning Commission and Council approval.
Once the interim use permit process is added to the Zoning Code and institutional housing is added
as an interim use to the B-2 Zone, the College would then need to obtain the actual interim use
permit. Granting an interim use permit requires a public hearing with the Planning Commission and
Council approval.
While this may seem like a complicated process, all three steps could conceivably be done on the
same agenda with the Planning Commission. The City Attorney has reviewed the above process and
agrees that it is possible to do. Please note that the current moratorium only refers to new
construction and reconstruction. The moratorium does not stop the City from considering changes to
the Zoning Code.
Preliminarv Analvsis
While the Council meeting is not the appropriate forum to debate the concept or to give an official
answer to the concept, the College and Staff is requesting preliminary feedback on the concept
proposaL Northwestern College has indicated that they are on a very constrained schedule, and the
time to prepare and process the series of applications would be time-consuming. To help facilitate
the discussion, Staff has prepared a brieflisting of some of the pros and cons associated with this
concept (this is not intended to be an all-inclusive list):
Pros
. The property would have a user and maintenance issues associated with a vacant property
would likely be reduced (i.e. graffiti, lawn maintenance, general appearance of the building
and property);
\\Metro-inet.us1ardenhills\Plalll1ing\Deve!opmeJJf Projecfs\Norlhwestem College\021108 -NWC-Holiday Inn COl1cepl Proposal.doc
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Cons
.
The property would likely be more productive for the City's tax base since a vacant property
could conceivably obtain a tax abatement from the County if the property value decreases,
which would reduce the City's share of the property taxes;
It would keep a user in the building during the planning process and the interim use would
expire still allowing for future redevelopment;
It would likely reduce the number of student renters in the City's residential areas since the
College would increase the mandatory age for students in College housing;
The interim use permit would allow the City to enforce an expiration date on the institutional
housing use;
The College would use a bus to transfer students from the hotel to the College, which may
reduce parking demand in and around Northwestern College; and,
It would likely provide additional customers for the retail and service businesses along the
County Road E conidoL
.
.
.
.
.
.
Once institutional housing is added as an interim use, any property in the B-2 Zone could
request an interim use permit for institutional housing (though it may be impractical for the
other buildings in the B-2 Zone to offer such facilities);
Changing the B-2 Zone at this time may have a negative psychological impact on the B-2
planning process;
The interim use would be in place until 2011, which is two years after the moratorium ends.
The College could conceivably request an extension of the interim use permit in three years if
constmction of their new dorm is delayed (this can be restricted in the interim use
agreement); and,
Additional traffic from students would likely be generated even with a campus circulator bus.
.
.
.
.
Provided the interim use permit is not extended beyond the initial three years, the temporary use of
the hotel site as institutional housing could be beneficial, and it gives additional time to the City and
the property owner to consider the appropriate redevelopment of the site. It would also keep a
relatively known use in the hotel during the moratorium.
While there are recognizable benefits of the short-term use of the hotel as student housing, changing
the Zoning Code dUling the planning process may have a negative impact on the planning process,
though the impact would be limited if property communicated to the stakeholders in the area.
Generally speaking, it is better to delay significant changes to a zoning code until after a planning
process is completed since the results of the planning process are not yet known. In this case,
however, considering an interim institutional housing use may preserve the property for
redevelopment.
Attachments
January 22, 2008, Letter from Northwestern College to the Mayor and City Council
Febmary 4, 2008, Letter from The Davidson Companies
Map of the former Holiday Inn property (1201 County Road E)
liMelro-inet.us\ardenhillslPlanningIDel'elapment ProjeclsWorthweSfern College\021/08 - NWC-Holiday Inn Concept Proposal.doc
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Northwestern College
MEMORANDUM
TO:
Mayor and Council Members
FROM:
Douglas R. Schroeder, CFO
DATE:
January 22, 2008
RE:
Proposed Interim Use of Former Hotel Site at 1201 W County Road E (the
"Hotel Site")
Northwestern College became aware that the former Holiday Inn has been closed when
several months ago we were approached by a potential purchaser of the property about the
possible use of the Hotel Site as student residential property. Nothing occurred through this
contact, as the property was subsequently considered by another developer and has since been
placed in a moratorium status by the City while it determines its future usage plans for the B-2
District The property is currently vacant and not available for development beyond its use as a
hotel facility during the moratorium period established by the City,
Northwestern College is currently in discussions with the Property's representatives
about the potential use of the facility that could provide significant benefits to the City and the
College. The College proposes entering into a lease for the Hotel Site to provide temporary
student housing through May, 2011, Housing for approximately 300 students would be provided
on an interim basis while the College implements its recently approved Campus Master Plan.
We believe this proposal provides several advantages to the City:
1, The Hotel Site would be occupied, lessening the threat of vandalism, police calls
and a developing neighborhood eyesore. It would also remain on the property tax rolls because
it remains owned by the current owner, not the College.
2,
students.
Businesses in the area would benefit from the presence of approximately 300
3, The College intends to change its current mandatory student housing policy from
age 20 to age 21 (the same requirement as Bethel University). We have been unable to do this
at this point because we currently lack sufficient student housing. If the College were able to
occupy the closed Holiday Inn facility as temporary student housing, we would be able to raise
the age of the student housing policy starting the coming fall semester rather than waiting for
additional student housing facilities to be built on Campus - yet several years away, thus Arden
3{)03SNElUNGAVENUENORTI-l SAINT PAUL. MINNESOTA 55113-1598 phone 651-631-5100 fax 651-631-5269 web www.nWc.edu
Hills' residents would likely see less need for students to rent neighborhood houses. This has
long been a community concem and we can help alleviate it immediately.
4. These advantages can be created without any significant increase in traffic from
the Hotel Site. The College intends to use shuttle buses as the primary method to transport
students to the Campus. This would be controlled through the use of parking permits which
would allow students to park at the Hotel Site, but not on Campus during normal class hours.
5. This temporary use will give the City sufficient time to complete the long term
study called for in your development moratorium and work with a developer to implement the
City's preferred use.
We have had conversations with your City Planner and City Attorney. They agree that
our proposed use could be permitted even though the Hotel Site is subject to a current
development moratorium. In order to do this, they suggest that a text amendment to the Zoning
Code would be needed to add an Interim Use Permit process and add student housing as an
Interim Use in the B-2 Zone. As part of this process, the College would apply for an Interim Use
Permit for the Hotel Site. Each of these steps would be subject to public hearing and your
approvaL
Again, we think this opportunity can create a "win-win" situation for the City and the
College. We ask for the opportunity to discuss this idea with you during the Public Inquiries
portion of your January 28, 2008 Council meeting. In the meantime, please feel free to call me
at 651-631-5160 if I can provide any additional information.
0:' .~
Dou s R. Schroeder
VP for Business/CFO
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MEMO
Date:
February 4, 2008
To:
Mayor Stan Harpstead
Council Member David Grant
Council Member Brenda Holden
Council Member Fran Holmes
Council Member Dave McClung
From:
Robin C. Davidson
The Davidson Companies, Inc.
Subject:
Interim Use Permit - Former Holiday Inn (The Property)
Arden Hills, MN
The Davidson Companies has entered into a contract to purchase the former Arden Hills Holiday
Inn. Additionally, we have entered into a contingent Agreement with Northwestern College
(NWC) to lease The Property for temporary student housing, subject to the issuance of an interim
use permit to allow NWC to occupy the Hotel for a period of not to exceed 36 months. (NWC
will be constructing student housing on campus as a component of its master plan)
Following the use of The Property by NWC, It is the intent of The Davidson Companies, Inc. to
remove the existing structure and redevelop the site.
An interim use permit creates a four-way win.
Win # I - City of Arden Hills wins.
Holiday Inn property is currently vacant. A vacant property tends to attract vandalism and
graffiti. The property value decreases, police calls increase, etc.
Holiday Inn Property - is For Sale. In the event The Davidson Companies is unable to
close on its purchase agreement, the Seller may find a buyer who would operate The
Property as a budget hotel or, The Property could be sold to a non-profit whose use
potentially could remove The Property from the tax rolls. It is highly unlikely that a
prospective buyer would purchase The Property and hold The Property for two years
3900 Northwoods Driye, Suite 125, Arden lIills, MN 55112 Phone: 651-481-6290 Fax: (651) 481-6289 Email: rob@davidsoncos.coffi
without an interim use. Interim use permit preserves the value of a key 8 acre property
by:
. Preserving its taxable status;
· The Property is in operation and not subject to vandalism, graffiti, etc.
. Preserves opportunity for The Property to be redeveloped for its highest
and best use.
Win #2 - Northwestern College wins.
NWC is a corporate citizen of Arden Hills and has an interim (36 months) housing need
that would be addressed without changes to the existing operating protocol of the former
Holiday Inn. NWC has a housing challenge addressed by the issuance of an interim use
permit while it constructs on campus housing.
Win #3 - Seller wins.
Seller is currently faced with a closed hotel with limited options during the current
moratorium of 12 months (that may be extended) as well as that period of time following
the moratorium for the City to institute code changes to the B-2 District. Practically, the
Seller is unable to do anything with the property for a period of approaching 24 months,
(i.e. 12 months of moratorium, period of time necessary to change B-2 zoning code, plus
time to gain City approval following implementation of new code requirements) except
potentially sell the hotel to a discount/bargain hotel operator. Interim use permit provides
a bridge for The Davidson Companies inc. to acquire The Property during the
moratorium and period following the moratorium.
Win #4 - The Davidson Companies, Inc.
The Davidson Companies, Inc. has done business and owned properties in Arden Hills
for over 20 years. The Davidson Companies, Inc. is a known entity in the North Suburban
community. The interim use permit allows The Davidson Companies, Inc. to acquire
The Property; rent The Property to NWC during the moratorium period while at
the same time participate and partner with the City in shaping a vision for The
Property during the moratorium.
This opportunity preserves the potential for the KEY commercial site in the City of Arden Hills
to be developed in to its highest and best use and not leave its use to chance.
Thank you for the opportunity to discuss this matter with you. In the event there are any
questions, please do not hesitate to call me at 651-481-6290.
~~~
Robin C. Davidson
The Davidson Companies, Inc.
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