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HomeMy WebLinkAbout02-05-98 J 4 • CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMI55ION SPECIAL MEETING MINUTES February 5, 1998 Members Present: Brantly, Detjen, Erickson (Alternate), Krejci, Matasosky, Miller, Pogatchnik, Tushie and Vogel Members Absent: Emond Staff Present: Robert Erickson, City Administrator; Michael Sobota, Community & Economic Development Director; and Nicole Bennett, Economic Development Coordinator. Also Present: Luigi Bernardi, Aurora Investments/Sentinel Management; Ron Krank, KKE Architects, Inc.; and Council Member Tom Ryan. 1. Call to Order. Chair Vogel called the special meeting to order at 7:30 a.m. in the Administration Conference Room at Lakeville City Hall. • 2. Review "Town Square" Design Approaches Presented by the Bernardis and KKE Architects, and Discuss the TIF Development Proposal for the Commercial Center. Mr. Erickson and Mr. Sobota provided an overview of the "Town Square" concept plan including the progress made on various aspects of the project including: the construction of a new facility for All Saints Catholic Church, the possible future relocation of the license bureau to City Hall or the library, plans for the new Dakota County Library -Heritage to be constructed west of City Hall in 1998, development of the 96-unit townhouse and condominium project currently under construction by Wensmann Homes north of City Hall, proposed plans for a new golf course "Emerald Greens" with aneast-west orientation northeast of City Hall, and design plans for the water feature constructed by Wensmann and concepts for the bridge to be built by the city. Mr. Erickson and Mr. Sobota introduced Luigi Bernardi, President of Aurora Investments/Sentinel Management, and Ron Krank, KKE Architects. Mr. Bernardi stated that they were pleased to come before the EDC with a proposal to develop a high quality commercial center for "Town Square". He noted that his family has worked with KKE Architects in developing quality commercial centers for many years, and they are excited to move forward with this project in Lakeville. He stated that the anchor is in the final stages of negotiation and several other retailers are very interested in the project. • Mr. Krank stated that KKE Architects has worked with the Bernardi family for 25 years in designing quality commercial projects. He provided an overview of Economic Development Commission February 5, 1998 Meeting Minutes Page 2 • previously constructed projects using slides to highlight the architectural features incorporated into the designs of each commercial center. He noted that their objective for this meeting with the EDC is to gain a clear understanding of the community's goals regarding "Town Square" and to try to mesh those goals with the specific design elements of the project. Mr. Krank stated that the draft guidelines developed by the city and its consultant (NAC) would be helpful to the design process. He stated that the Bernardis have had great success in the past working with big name retailers to create a unique architectural image that fits with the city's guidelines and expectations. Mr. Krank showed slides of projects including: (1) Aurora Village in Burnsville with a 65,000-square-foot Rainbow Foods anchor and retailers such as Pier 1 Imports and Blockbuster Video. The brick used in this center matched the architectural look of surrounding multi-family residential development, and the "village" concept was used in designing the center with multiple commercial buildings to maintain the character and scale of the surrounding area rather than one large strip center. (2) Chaska Commons in Chaska anchored by Rainbow Foods and a series of small shops. This project was designed with large users on the south side and a series of loop roads ringed with landscaping to slow traffic down and create a nice edge to the development: "Chaska brick" was used consistent with other commercial buildings in the city, and was blended with European character elements such as cornices, pointing designs at building corners, small individual awnings, and vertical elements in the • facade to "break up" the visual scale of the buildings. Mr. Krank noted that the Bernardis have been willing to invest substantially to ensure that. the projects have a high quality, long-lasting character that fits within the community. Mc Krank detailed the design elements of several other projects including the Sentinel Office Building owned by the Bernardis and located on the north side of Highway 494 and Bush Lake Road behind the Radisson South, Tamarack Village in Woodbury, and SuperAmerica convenience stores on Lyndale and Hennepin Avenues in Minneapolis. He noted such design features as stone and flower landscaping, recessed lighting to accentuate the buildings and not the parking areas, brick fences, circular areas with ponds and fountains surrounded by coffee shops and outdoor eating areas, clock towers, and the "village" concept with multiple small buildings that are neighborhood- oriented rather than large "big box" structures. Mr. Sobota stated that the proposed commercial center would be located in the area west of the drainage way. He noted that the city will be responsible for construction of the bridge on Heritage Drive, and the developer would be responsible for the extension of Heritage Drive west to Dodd Blvd. including any improvements to Dodd required by the project. He stated that city staff is recommending that the themes and design elements developed by the EDC and the city be carried forward with this project and made a part of the development agreement with the Bernardis. • Mr. Erickson stated that 202nd Street (CSAH 50) was built to a 3-lane road two years ago, and Dakota County plans to upgrade it to a 4-lane divided highway in 1998. He noted that TIF funds have been budgeted for the city's portion of that project. He Economic Development Commission February 5, 1998 Meeting Minutes Page 3 • requested that the EDC identify the design elements and expectations that they have for the commercial center to be included in the development agreement for T]F, and to guide the design of the project by the Bernardis and KKE Architects. Comm. Matasoslry stated that the quality of past developments created by the Bernardis and KKE is evident. He inquired if the "Jeffersonian" architectural theme of the municipal buildings that uses brick and white columns would be carried forward in the center's design, and if potential tenants would be agreeable to that architectural style. Mr. Bernardi responded that they feel the "Jeffersonian" architecture of the city buildings is very attractive, and that they are open to using that design to continue with what the city has done so far. He noted that they would need to talk to prospective tenants to ensure their agreement. Mr. Erickson noted that Mr. Bernardis father, Tony, has commented previously on the attractiveness of City Halt and other city buildings constructed in the "Jeffersonian" theme. Comm. Matasosky stated that he is excited about the proposed project and his only other expectation is that the development be tied into the historic downtown as closely as possible. Mr. Bernardi responded that his family's philosophy is to construct buildings with the highest quality and to own them long-term to be passed down to their children and grandchildren. He stated that their policy is to maintain ownership of all outlots and to lease to free-standing tenants in order to keep all the parcels • together under single ownership and architectural control. Comm. Miller stated that coordinating the building exteriors with downtown Lakeville using brick and similar design elements is important. Comm. Krejci noted that she is very impressed with the quality of other projects completed by the Bernardis and KKE Architects, and she would like to see elements such as the fountain and landscaping used for "Town Square". Comm. Detjen stated that he always envisioned this project as a link to downtown, and his expectation is that the proposed commercial center will expand the shopping experience of downtown. He noted that he frequently shops at Aurora Village in Burnsville and finds it to be a very attractive center. Comm. Erickson stated that as a long-time retailer in Lakeville, he appreciates the partnership that has developed between the city, the landowners, and the developer to get this project accomplished. He noted that his primary goal is that this project should be an extension of downtown, and the name should reflect that by incorporating "heritage" somehow. Comm. Brantly stated that it is a time of satisfaction for the EDC and the city to see this project coming together. He noted that the commercial center should hold excellence as its core value, and it should be something different and unique that will make people from outside the community come to shop there and take note of how nice it is. • Comm. Tushie stated that he has no doubt that KKE can effectively design the center to meet the city's goals and expectations. He noted that the "village" concept with a Economic Development Commission February 5, 1998 Meeting Minutes Page 4 • series of separate small buildings as a continuation of downtown using similar architectural elements and character is what the EDC would like to see in "Town Square". He stated that the center should be "pedestrian-friendly" based on the treatment of edges, the street layout, trail and sidewalk connections and use of the infrastructure already identified by the city to allow people to walk from building to building. He added that the use of green space, and working with the city to develop shazed parking to minimize the amount of paved parking area will be very important. Chair Vogel stated that the key to drawing residents from 160th Street to the south to shop will be to provide something unique. He noted redirecting traffic from northern Lakeville will be critical, and the goal is to get people to head south for their shopping needs rather than past practice of heading north to shop along C.R. 42 in Burnsville and Apple Valley. Mr. Erickson noted that the City Council is currently studying the proposed extension of Ipava Avenue from Lakeville Senior High School to 185th Street in 1999 to connect northern residents with amenities such as the high school, the ice arena, the library and "Town Square". He noted that the proposed plans include eventual upgrading of Ipava to a 4-lane divided, tree-lined pazkway with pedestrian trails. The initial construction would be a 2-lane rural section without utilities, and this proposed road connection would facilitate north-south transportation access in the city. He • stated Dodd Blvd. is only a 2-lane rural section and is not planned for upgrading, thus the decision was made to include the Ipava connection in the city's 1998-2002 Capital Improvement Plan. Mr. Erickson stated that the county plans to upgrade Cedar Avenue to a 4-lane rural divided section in 1999, which will provide additional north- south access in the city. This project would include the reconstruction of 202nd Street (CSAH 50) between Holyoke and Cedar Avenue. Mr. Krank noted that they share all of the city's stated goals in making the project very pedestrian-friendly with shared parking and a unique, high quality appearance. Mr. Sobota stated that city staff will work with the developer on shared parking agreements through the Conditional Use Permit process once users have been identified. He recommended that KKE Architects use the draft guidelines developed by the city and combine them with traditional "Bernardi" features to develop a set of architectural guidelines specific to the "Town Square" project. Comm. Pogatchnik stated that he feels the Bernardis are making a wise investment in coming to Lakeville, and he inquired if the center would be built before or after all of the tenants are secured. Mr. Bernardi replied that they will construct some speculative space, but they like to have the anchor and some of the other tenants pre-leased when they are ready to build. He added that his family has along-standing relationship with Rainbow Foods, and Rainbow has indicated they would like to be the anchor with building construction in 1999. He noted that his family would like to move forward in • 1998, and once they have the grocery anchor, they will proceed immediately. He stated that it is their plan to grade the entire site and construct the roads this year so that the site is ready to go. Economic Development Commission February 5, 1998 Meeting Minutes Page 5 • Comm. Pogatchnik commented that this will be a wonderful project, and the Bernardis should keep in mind that this development will leave the largest imprint in the entire city so it should be kept to the highest standards. Chair Vogel inquired as to the size of the proposed Rainbow anchor store. Mr. Bernardi responded that Rainbow would like to construct 55,000-60,000 square feet as a minimum. He noted that his family has also been approached by the Enggrens, but Enggrens would like to start with a smaller store that may not be in keeping with projected market demand. Comms. Tushie and Pogatchnik noted that it would be smart not to undersize the project at this time because the demand is growing rapidly, and under-sizing this project would simply lead to a flood of large store competitors into the market. Comm. Pogatchnik inquired as to the value of the TIF being provided for the project, and the designation "DKM" listed under revenues on the TIF District cash flows handout provided in the agenda packet. He also inquired as to the projected value of TIF generated by the Wensmann townhouses and condominiums. Mr. Erickson stated that the Bernardis have a purchase agreement with Lakeville Five to pay $1.6 million for the land. The agreement also states that proposed TIF funds • generated from the district will go to Lakeville Five until the district expires in 2013. He noted that the city will be responsible for construction of the bridge using approximately $437,000 from the trunk storm sewer fund, and TIF funds would be used to cover the city's share of upgrading 202nd Street (CSAH 50). He noted that $371,000 of TIF funds were previously committed to upgrades as part of the $8 million downtown project. Mr. Sobota stated that DKM was the owner/developer of the New Horizon building located on Holyoke Avenue downtown. Mr. Erickson stated that the Wensmann condominiums have a higher value than the townhouses, and the projected TIF revenues for Heritage Square are based on the assumptions that all units will be built over the next 2 years. Comm. Erickson inquired if Cherokee State Bank was still planning to construct a new bank on the parcel west of City Hall, east of Iberia Avenue. Mr. Erickson responded that there have been ongoing discussions between Lakeville Five and Cherokee Bank, but the city has not been involved in those discussions. Comm. Tushie inquired if the BudgetMart building located at the corner of C.R. 50 and Dodd Blvd. will be removed as part of the Bernardis agreement with the city. Mr. Erickson responded that the decision to remove the BudgetMart building will be left to the Bernardis and the owners of BudgetMart to negotiate based on market demand. He noted that it benefits the city to allow the private property owner and developer to • address this issue because the city would have needed to use additional TIF funds to remove the building and provide relocation assistance to the tenants if it were included in the development agreement. Mr. Erickson noted that the city's lease for the liquor Economic Development Commission February 5, 1998 Meeting Minutes Page 6 • store expires in six months, and the city has an interest in relocating the liquor store into the new Bernardi commercial center. Comm. Pogatchnik inquired as to the amount of TIF funds that Lakeville Five will receive. Mr. Erickson responded that TIF will go to Lakeville Five on a "pay-as-you- go" basis with the actual dollar amount dependent upon the successful development and completion dates of the Heritage Square townhomes/condominiums and the commercial center. Comm. Brandy inquired if the Bernardis have considered a name for the commercial center. Mr. Bernardi responded that they would like to suggest the name "Heritage Village". The EDC indicated support for that name because it includes "heritage" consistent with Heritage Drive and the library, and it reflects the "village" design concept for the center. 98.06 MOTION: Comms. TushieBrantly moved to recommend to the City Council approval of the TIF development proposal for the "Town Square" commercial center including specific design guidelines and the recommended name "Heritage Village" for the commercial center. Motion carried unanimously. Mr. Sobota stated that the architectural guidelines and TIF development proposal are planned for review at the February 17, 1998, City Council meeting. 3. Other Business. There was no other business. The next regular EDC meeting has been scheduled for Tuesday, Febnaary 24, 1998, at 6:00 p.m. 4. Adjourn. The meeting was adjourned at 9:00 a.m. Respectfully submitted: ATTEST TO: ~ cry ~ k is e E. Bennett, Recording Secretary J Krejci, eciet c:\winword\edc\ 1998m[gs10205m[g\mn0205 98. doc