HomeMy WebLinkAboutItem 03.b
City of Lakeville
Administration Department
Memorandum
To: Mayor and Members of the City Council
From: Allyn G. Kuennen, Assistant City Administrator
Copy: Justin Miller, City Administrator
Date: September 18, 2015
Subject: Packet Material for the September 21st City Council Work Session.
Agenda Item: Review Revised Proposals for the Development of the183rd Street
Property.
At the August 24th work session the City Council reviewed the four development
proposals submitted for the 19 acres of land the City owns north of 183rd Street. After
reviewing the proposals the City Council narrowed the list down to DR Horton Homes,
Pulte Homes and KRB Development. Council directed staff to contact each of the
finalists to determine if they were willing to revise their proposals to include more
diversified housing products balanced with the City’s desire to obtaining the best price
for the land.
All three developers submitted revised proposals which are attached for your review
and summarized in the accompanying PowerPoint presentation. Staff will be available
at the September 21st work session to review each of the proposals and to discuss the
next steps.
If you have any questions before the work session, please contact me at 952.985.4402
or at akuennen@lakevillemn.gov.
D.R. Horton, Inc.-Minnesota
20860 Kenbridge Court, Suite 100
Lakeville, MN 55044
www.drhorton.com
September 8, 2015
Mr. Allyn Kuennen via email only: akuennen@lakevillemn.gov
Assistant City Administrator
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
RE: 183 rd Street Property Request for Proposals
Dear Mr. Kuennen:
As a follow-up to our recent phone conversation, D.R. Horton, Inc. – Minnesota (“Horton”) is pleased to submit this
revised letter summarizing terms to be incorporated into Horton’s purchase of the 183 rd Street Property.
Purchase Price/Development Concept: The Purchase Price for the Property is $1,400,000. Per our conversation, no
change to our development concept was requested.
Earnest Money: Horton will pay to the City $5,000 of non-refundable Earnest Money within ten (10) days of full
execution of a purchase agreement. In addition, Horton agrees to pay all City legal expenses related to the
preparation of the purchase agreement in excess of the $5,000 of non-refundable Earnest Money.
Due Diligence: Upon execution of a purchase agreement, Horton agrees to immediately begin its inspection of the
property (including environmental studies, soil borings, wetland delineations, tree survey, boundary survey, and
topographic survey) and submit applications for development. We’d hope to simultaneously submit preliminary and
final plat applications (if recommended by the City) in order to accelerate the Closing date.
Closing: There shall be a single Closing on the Property. The Closing shall occur within fifteen (15) days after the
later of final plat approval from the City and approval of all required wetland permits (we are hoping to avoid any
wetland impacts, if possible).
We look forward to again partnering with the City of Lakeville on another quality neighborhood. Please contact me
with any questions at 952-985-7827 or ramullenbach@drhorton.com.
Sincerely,
Ron Mullenbach
Land Manager
2M f)roz" O,c5��'�2rs V
September 14, 2015
Allyn Kuennen, Assistant City Administrator
City of Lakeville
20195 Holyoke Ave
Lakeville, MN 55044
RE: 183R1 STREET PROPERTY
To whom it may concern:
Please accept this Proposal from our Development Company — KRB Development
Our contact information is:
KRB Development
14750 Cedar Ave South
Suite 100
Apple Valley, MN 55124
Contact —William Ryan 612.718.2800
Email — paula ryanrealestate.com
We are submitting two alternative proposals for the 183rd Street property.
Please see attached.
Option 1 being our original proposal had 39 lots total
North Parcel — Proposed RS -2
South Parcel — Proposed RS -3
Original proposed price $1,550,000
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Ize sr. 1a� na 4 .�' — CURRENT ZONING
X \ r —NORTH OF CREEK RS -2
` _—SOUTH OF CREEK RS -3
EFj a.
11.21 \ J REQUEST RE—ZONING OF RS -2 TO RS -3
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I .3 _ SITE DATA
y�1 za1 Tow ss. t TOTAL SITE AREA 19.02 AC.
n,. O I I sr.�� i�.,s. �i'<. N OF LOTS 39 LOTS
15 p 1 x \
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-_ - _ Hn1 p sr. SINGLE(R-3)R REQUIREMENT M ur k DATA rR,1
�0. MIN. LOT AREA 11,000 S.F.
1'L Raza sr MM. LOT NDTH AT SETBACK B5 FEET
,ea,e sr MIN. LOT AREA FOR CORNER LOT 12,500 S.F.
1 MIN. LOT (MOTH AT SETBACK FOR CORNER LOT 100 FEET
' MINIMUM SETBACKS fR5-31
$ 1 FRONT 30 FEET
SIDE (HOUSE) 10 FEET
as s.F. SIDE (STREET) 20 FEET
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NSCALE IN FEET
°�av� PROJECT NO.
Teel 22853-10
SHEET 1 CF T
2rllGffoU S,esrArosIV
Proposal - Option 2
- See attached from James R. Hill
Option 2 has 85' lots on north, 70' lots on south. Total of 22 lots on north, total of 21 lots
on south.
Option 2 proposal — 43 lots
North Parcel — Proposed RS -2
South Parcel — Proposed RS -4
Proposed price $1,600,000
The proposed use of RS -4 zoning on the south parcel would seem appropriate, due to the natural
stream corridor buffer between the north and south parcels. The roadway connection between the
parcels has been eliminated, allowing the differently zoned uses to remain unconnected. A cul-de-
sac is required on the south parcel.
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ZONING INFORMATION
CURRENT ZONING
NORTH OF CREEK RS -2
-SOUTH OF CREEK RS -3
EQUEST RE
-NORTH OF CREEK ZONING RS -3
-SOUTH OF CREEK RS -4
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clTe DATA
TOTAL DTE AREA 19,02 AC,
(r OFLOTS 43 LOTS
X OF RS -3 LOTS 22 LOTS
M OF RS -4 LOTS 21 LOTS
MIN. LOT AREA RFO 1 RFMFMT h O ! E-13 11 O00 S.F.
MIN. LOT WD1H AT SETBACK 85 MET
LIJ v u IL v v C ` \ OU TLQT ia. NTN. LOT AREA FOR CORNER LOT 12,500 S.F.
MIN. LOT WDTH AT SETBACK FOR CORNER LOT 100 FEET
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MIN. LOT AREA 8,400 S.F.
MIN. LOT WIDTH AT SETBACK 70 FEET
MIN, LOT AREA FOR CORNER LOT 10,200 S.F.
MIN. LOT WDTH AT SETBACK FOR CORNER LOT 85 FEET
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FRONT (HOUSE) 20 FEET
FRONT (GARAGE) 25 FEET
SIDE (HOUSE) 7 FEET DRAWN BY
SIDE (STREET) 20 FEET pLM
REAR 30 FEET
DATE
7/16/15
N REVISIONS
CAD FILE
SCALE IN RET 22853-1ORp.dwg
PROJECT NO.
¢ - lees 22853-10
SHEET 1 OF 1
Proposal — Option 3
- See attached from James R. Hill
Option 3 has 85' lots on north, 55' lots on south. Total of 22 lots on north, total of 27 lots
on south.
Option 3 proposal — 49 lots
North Parcel — Proposed RS -2
South Parcel — Proposed PUD
Proposed price $1,560,000
This option proposes single family detached townhomes unit on the south parcel. A single story
building is conceptualized on this parcel. We would anticipate setbacks between buildings to be less
than what the RM -1 zoning allows and therefore propose a PUD process to establish appropriate lot
widths and setbacks.
The anticipated higher density zoning on the south parcel can be appropriately isolated from the
adjacent single family parcels by eliminating the street connection to the north parcel and with
adequate buffer plantings along the corridor between the north and south parcels. A cul-de-sac is
required on the south parcel.
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317E DATA
TOTAL SITE AREA 19.02 AC.
L. L; M OF LOTS 49 LOTS
OF RS -3 LOTS 22 LOTS
N OF P.U.D. LOTS 27 LOTS.
IN
$NGY_F FAUN R O REN NT k DATA (FE—l)
MIN. LOT AREA
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MIN, LOT AREA FOR CORNER LOT
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70NIN(: INFORUATION
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CURRENT ZONING
—NOR1H OF CREEK RS -2
19
`si18
—SOUTH OF CREEK RS -3
REQUESTRE—ZONING
OF CREEK RS -3
10
—SOUTH OF CREEK P.U.D.
A16,
17,
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317E DATA
TOTAL SITE AREA 19.02 AC.
L. L; M OF LOTS 49 LOTS
OF RS -3 LOTS 22 LOTS
N OF P.U.D. LOTS 27 LOTS.
IN
SCALE IN FEET
$NGY_F FAUN R O REN NT k DATA (FE—l)
MIN. LOT AREA
1UDpo SF.ET
MIN. LOT WIDTH AT SETBACK
BS FE
MIN, LOT AREA FOR CORNER LOT
12,500 ST,
MIN. LOT WDTH AT SETBACK FOR CORNER LOT
100 FEET
\
MINIM IM crTBA K rR5— 1
FRONT 30 FEET
SDE(HOUSE) 10 FEET
SIDE (STREET) 2D FEET
REAR 3D FEET
SINGF FAMILY REOIIk N NT k (P )
DATA
MIN. LOT AREA
MIN. LOT WDTH AT SETBACK
"D. S.F.
55 FEET
MIN. LOT AREA FOR CORNER LOT
D.C. S.F.
/
MIN. LOT WDTH AT SETBACK FOR CORNER LOT
75 FEET
MINIMNM SETRACNc fPUDI
FRONT (HWSE) 20 FEET
FRONT (GARAGE) 2S FEET
SIDE (HOUSE) 'FEET
SIDE (STREET) 20 FEET
REAR 30 FEET
SCALE IN FEET
Request for Proposal
183rd Street Property
City of Lakeville, Minnesota
Prepared for:
The City of Lakeville
Prepared by:
Pulte Homes of Minnesota LLC
Round 2 - September 14, 2015
Transmittal Letter
September 14, 2015
Mr. Allyn Kuennen, Assistant City Administrator
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
alcuennen@lakevillemn.gov
Re: Request for Proposal, 183`d Street Property, Lakeville, Minnesota
Dear Mr. Kuennen:
1 ^1
'Wilte'
Pulte Homes is pleased to present our revised response to the City of Lakeville's Request for Proposal for the sale
and development of 19.01 acres of residential property located on 183rd Street in Lakeville, Minnesota. We heard
the comments from the City Council at their August 24, 2015 Workshop Session and have adjusted our revised
proposal to address each concern as follows:
The site plan has been revised to eliminate the long cul-de-sac on the south property and the resulting
necessity for a variance. The new site plan has one less lot than the original submittal but conforms to
code and does not require a variance.
The City Council indicated they liked the Age Targeted, detached townhome product on the south
property. Our revised site plan maintains this product type on the south property in addition to the single
family product on the north property.
Our offered Purchase Price has been increased in this revised response to the City's RFP.
The new homeowners of our consumer inspired homes in Lakeville will benefit by the numerous amenities at this
site, like the expansive greenway corridor, access to high quality schools, numerous recreation alternatives,
proximity to emergency services and the nearby Life Time Fitness facility. As stated in the Pulte Homes Vision
Statement: "We build consumer inspired homes and communities to make lives better".
Pultc Homes has extensive experience in development and partnering with cities on City owned property. Most
recently, Pulte Homes acquired a 26 acre parcel in 2014 from the City of New Brighton and is currently creating a
new neighborhood comprised of 89 single family homes and 36 townhomes. It is because of these past
experiences in partnering with municipalities that we are excited about this development opportunity to help
create a vibrant and exciting new neighborhood for many people to call `home' in Lakeville.
Our Team at Pulte Homes has put a significant amount of thought, analysis, and effort into how we will:
• Efficiently develop the Property
• Build housing products that are consumer inspired and of high quality
• Measure the economic value of the Property for the City and how that value impacts all parties
While we believe there is more work to do with the City's input on the site design, we are confident our proposed
mix of traditional single family and also single -level, detached, age -targeted housing opportunities satisfies the
7500 Office Ridge Circle, Suite 325
Eden Prairie, MN 55344
Pulte
demand from multiple demographic groups in Lakeville and will make for a highly regarded and sought after
neighborhood in Lakeville.
The terms under which Pulte Homes proposes to purchase the 19.01 acres from the City of Lakeville are as
follows:
1. Suver: Pulte Homes of Minnesota LLC, a Minnesota Limited Liability Company and wholly owned
subsidiary of PulteGroup, Inc., a Michigan Corporation (herein after "Pulte")
2. Purchase Price: $1,550,000.00
3. Deposits: Pulte will deposit a $25,000.00 Initial Deposit within 5 days of the Contract and which will be
held by the Title Company and applied against the Purchase Price at the Closing or disbursed per the
terms of the Contract. Pulte will also deposit a $25,000.00 Additional Deposit within 5 days of the City's
approval of the Preliminary Plat for the development of the Property, which Additional Deposit together
with the Initial Deposit, will be held by the Title Company and applied against the Purchase Price at the
Closing or disbursed per the terms of the Contract.
4. Closin . The Closing of the Property will be the later of 30 days after the City's approval of the
Preliminary Plat for the development of the Property or May 1, 2016.
5. Feasibility Period: The Feasibility Period shall begin on the date of the Contract and expire on the 120"
day. During the Feasibility Period Pulte shall perform due diligence.
6. Conditions to Closing: The following conditions must be satisfied prior to Closing:
a. No moratorium with respect to the issuance of building permits.
b. Approval by the City of the Preliminary Plat for the development of the Property.
c. Pulte's corporate headquarters shall have approved the purchase of the Property
d. Pulte shall have received any offsite utility, drainage, construction or other easements required for
the development of the Property.
7. Taxes and Special Assessments: General real estate taxes for the Property shall be prorated as to the date
of Closing and all special assessments, if any, will be the responsibility of the City.
S. Real Estate Commissions: Pulte and City are responsible for their respective commissions, if any.
9. Real Estate Contract: Both the City and Pultc agree to use `best efforts' to negotiate a mutually
agreeable Contract to be fully signed on or before October 23, 2015.
As described in greater detail in the RFP Section entitled "Why Choose Pulte", the following Pulte Proposal
attributes should also be considered when the City Council makes their final selection:
• The revised Pulte Proposal is very competitive in the upfront revenue realized by the City.
• The revised Pulte Proposal would save the City approximately $100,000 in Trunk Storm Sewer costs that
are associated with at least 2 of the other RFP responses.
• The revised Pulte Proposal will likely generate in excess of $55,000 in increased Impact Fees for the City
over some other RFP responses.
• The revised Pulte Proposal will provide the City a higher source of long term annual tax revenue than some
other RFP responses due to the higher number of homes on the proposed Pulte site plan.
• The revised Pulte Proposal does not have any impacts on wetlands, whereas two of the other original RFP
proposals required filing adjacent wetlands.
7500 Office Ridge Circle, Suite 325 We Build Consumer Inspirer) Homes and
Eden Prairie, MN 55344 Communities to Make Lives Better
Pulte
• Pulte Homes has a strong reputation in the Twin Cities for building quality homes and communities and
providing high levels of consumer satisfaction. In addition, Pulte Homes has built more 55+ active adult
homes in the United States than any other builder through our family of brands, which includes Del Webb.
One more note: Due to the delay in the proposal process, it appears that the property will not be under
contract before the typical deadline (October 15") for performing wetland delineations. Therefore, we
strongly recommend that the City complete a wetland delineation.
Our Team at Pulte would be happy to discuss the content of our Revised Proposal and we look forward to forging
a solid relationship with the City of Lakeville based on collaboration, partnership, and trust.
Sincerely,
o'�'d'zl
David B. Deebach, Manager Land Acquisition
Pulte Homes of Minnesota LLC
7500 Office Ridge Circle, Suite 325
Eden Prairie, MN 55344
Telephone: (952)22.9.0724
Email: david.deebach@pultegroup.com
7500 Office Ridge Circle, Suite 325 We Build Consumer Inspired Homes and
Eden Prairie, MN 55344 Communities to Make Lives Better
Why Choose Pulte?
Why choose the Pulte Homes proposal?
1. Up Front Revenue — Our proposal is very competitive in terms of the upfront revenue realized
by the City.
2. Trunk Storm Water Savings — The original KRB and Ryland proposals require construction of
a street through the wetland that divides the property. This street crossing will require the
construction of a trunk storm sewer to allow water to flow beneath the new street. From our
conversations with City staff, we understand that a portion of the cost of this storm sewer (up to
$100,000) is anticipated to be borne by the City. Our plan eliminates this trunk storm sewer and
therefore saves the City the cost of this infrastructure. This cost is an important financial factor
in comparing the proposals.
3. Impact Fee Revenue — Pulte's revised proposal will generate additional impact fee revenue in
excess of $55,000: $18,000 more park dedication revenue, $8,000 of sewer availability and
connection charges, and $29,000 of water main unit charges than most of the other proposals.
We encourage that the City calculates these revenues and consider them in comparing the full
proposal values.
4. Long -Term Tax Revenue — Due to the higher number of homes in our plan and our relatively
high home valuations, our estimated tax analysis indicates that the Pulte proposal will result in
approximately $8,000 to $10,000 of additional tax revenue every year to the City of Lakeville
than other original proposals. This perpetual source of additional City tax revenue is an
important financial factor in comparing the proposals.
5. Environmental impacts — Two of the other original proposals required filling of adjacent
wetlands, whereas our proposal is planned to have no wetland impacts.
6. Pulte Reputation — Pulte Homes has a strong reputation in the Twin Cities metropolitan region
for building high quality homes and communities and providing high levels of customer
satisfaction. Although Pulte Homes is currently not building homes in Lakeville, we are highly
experienced in the region and would very much like to provide the residents of Lakeville with
innovative housing options that they currently do not have. In addition, Pulte Homes has built
more 55+ active adult homes in the United States than any other builder through our family of
brands, which includes Del Webb. Our proposal includes a floor plan line up that specifically
targets that buyer segment with the detached townhome lots reflected on the south side of the
property. These floor plans are consumer inspired and tested throughout the U.S. and we are
excited about bringing them to the Lakeville market, which would be the products first entrance
into the Twin Cities.
VNe Build Consumer Inspired Hordes and
COMMUnities to Make Lives Better
Development Concept
Supporting Information
Site Data
PID 1 = 224178000021 (9.91 Acres) — North
PID 2 = 224178000040 (9.1 Acres) — South
Total Gross Area = 19.01 Acres
Net Buildable Acres = Undefined Wetland limits require updating
Properties in Vermillion River watershed and within City's Farmington Outlet
Total Single Family = 22 (85' WIDE LOTS PER RS -3)
= 30 (55' WIDE LOTS PER RST -2)
= 52 TOTAL LOTS (2.73 LOTS/GROSS ACRE)
Existing Zoning North Parcel - RS -2
Min Lot Area = 18,000 SF
Min Corner Lot Area = 15,000 SF
Min Lot Width = 100'
Min
Corner Lot Width =
120'
Min
Front setback =
30'
Min
Side Setback =
15'
Side
Corner Yard =
30'
Min
Rear Setback =
30'
Proposed Zoning North Parcel - RS -3 (Single family homes
Design
Standard
Required
Provided
Min
Lot Area =
11,000 SF
11,050 SF (Average = 15,680 SF)
Min
Corner Lot Area =
12,500 SF
13,740 SF
Min
Lot Width =
85'
85'
Min Corner Lot Width =
100'
100'
Min Front setback =
30'
30'
Min Side Setback =
10'
10'
Side Corner Yard =
20'
20'
Min Rear Setback =
30'
30'
We Build Consumer Inspired Homes and
Communities to Make Lives Better
INP^PI10.it
Existing Zoning South Parcel - RS -3
Design Standard Required
Min Lot Area = 11,000 SF
Min Corner Lot Area = 12,500 SF
Min Lot Width = 85'
Min
Corner Lot Width =
100'
Min
Front setback =
30'
Min
Side Setback =
10'
Side
Corner Yard =
20'
Min
Rear Setback =
30'
Prouosed Zoning South Parcel - RST -2 (Detached townhomes
Design Standard Required Provided
Min Lot Area — NA 7,184 — 23,698 SF; (Average = 9,603 SF)
Min Lot Width = NA 55'
Min Comer Lot Width = NA 70'
Min Unit Width = 25'
40'
Min peripheral setback =
30'
30'
Min Front setback —
30'
30'
Min Side Setback =
NA
5' and 10'
Min Rear Setback =
NA
30'
Front fagade stone/brick =
25%
25%
Association maintained site required and provided
150'-600'
Envineerinu Design Standards
Design Standard
Required
Proposed
Typ Street ROW Width =
60'
60'
Cul-de-sac ROW Width =
50'
50'
Local Street Width =
32' BB
32'
Cul-de-sac- Street Width =
28' BB
28'
Cul-de-sac Length =
150'-600'
367', 2.05', 600'
Cul-de-sac Min Radius =
48'
48'
We Build Consumer Inspired Homes and
Communities to Make Lives Better
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