Strategic Plan for Housing and Economic Development

Transcription

1 Strategic Plan for Housing and Economic Development Approved by City Council March 21, 2017 Published May 31, 2017 Community Development Department

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3 Table of Contents Executive Summary... 1 Section 1: Department Mission and Strategies... 3 Section 2: Economic Development Strategies & Project Priorities... 5 Funding Sources... 5 Economic Development Project Priorities... 7 Section 3: Housing Strategies & Project Priorities Funding Sources Housing Project Priorities Appendix I: Economic Development and Housing Fund Balances and Projections Economic Development Funding Sources (as of March 2017) Housing Funding Sources (as of March 2017) Appendix II: 2005 Project Status Updates High Priority Projects Medium Priority Projects Appendix III: Project Status Updates Eden Prairie Southwest Light Rail Transit (LRT) Projects Economic Development Projects Housing Projects Appendix IV: Detailed Strategic Planning Process ( ) Strategic Planning Process Strategic Planning Process Strategic Planning Process Strategic Plan for Housing and Economic Development i

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5 Executive Summary The City of Eden Prairie Strategic Plan for Housing and Economic Development recognizes the Community Development Department s mission, prioritizes the Housing and Economic Development Divisions projects, and identifies implementation strategies and funding sources for the next four years. It is a comprehensive update of the Strategic Plan for Housing and Economic Development. Please see Appendix IV for history and process of developing the Strategic Plan. The purpose of the Strategic Plan is to: Identify and prioritize Housing and Economic Development projects for Outline the regulatory and financial implementation strategies Foster coordination between Community Development Department, other departments, and the City Council Help keep the public informed of key projects and initiatives Report on the status of Housing and Economic Development activities since 2005 (Appendix) Sections 2 and 3 of the Strategic Plan summarize projects: Section 2: Economic Development Project Priorities This section covers Economic Development Division initiatives and projects, including project priorities, timelines and funding sources. These projects are intended to stimulate overall economic growth and vitality of Eden Prairie. They include business retention efforts, new business opportunities, facilitation of development/redevelopment, City enhancements, communication with the business community, and a pro-active effort to work with developers to identify opportunity sites for development/redevelopment. Section 3: Housing Project Priorities This section reviews Housing Division programs and initiatives. It focuses on the key policy priorities the City has established related to housing development: inclusion of affordable housing, homeownership initiatives, maintenance and improvement of existing housing stock, and allocation of federal, state, and local funding for housing programs. Detailed profiles of the housing projects, timelines, implementation strategies, and funding sources are included Strategic Plan for Housing and Economic Development 1

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7 Section 1: Department Mission and Strategies The Community Development Department supports the long-term vitality of the City through city-wide land use planning and development review activities, maintaining a positive environment for business, addressing housing and community service needs, and enhancing revenue generation through responsible property valuations. The department includes 19 full- and part-time employees within the following divisions: Assessing, Economic Development, Housing and Community Services, and Planning. Figure Community Development Department Structure Community Development Department Administration Assessing Economic Development Housing and Community Services Planning The department creates and administers current and long-range plans for the City; and promotes and facilitates the orderly development, redevelopment, and economic viability of the City. The Community Development Department helps maintain the City s high quality of life by partnering with other departments and organizations in addressing community needs. The Strategic Plan identifies and prioritizes projects and initiatives for both the Economic Development and Housing Divisions. All projects identified in this document are considered to be high or medium priority for the Department. Section 1: Department Mission and Strategies 3

8 Economic Development Strategies The Economic Development Division is responsible for services that promote business growth, community development and redevelopment, and that support the overall economic growth and vitality of Eden Prairie. Division services include: (1) Business (job) retention, development, expansion, promotions, and communications; (2) New development and redevelopment planning and site location services; (3) Coordinate public financing for development and redevelopment; (4) Manage real estate sales and acquisition activities; (5) Support programs and initiatives of other City Departments, the Chamber of Commerce, School District, and other organizations as appropriate that improve or maintain a high quality of life in Eden Prairie; (6) Support and advocate for transportation and development infrastructure improvements; and (7) Help developers navigate development review process. Housing Strategies The Housing and Community Services Division has four areas of responsibility Housing, Community Services, Immigrant Services, and Community Building. The Strategic Plan includes strategies for housing, such as: (1) affordable rental and homeownership initiatives; (2) life-cycle housing goals; and (3) programs for maintenance and improvement of existing housing stock via loans and grants. Housing strategies often involve other Housing & Community Services Division focus areas, and collaboration with other Divisions, Departments, and Community Groups. 4 Section 1: Department Mission and Strategies

9 Section 2: Economic Development Strategies & Project Priorities The Economic Development Division promotes business growth and retention, facilitates development gap financing, assists businesses with site locations, advocates for transportation and technology improvements, and represents the City on the Eden Prairie Chamber of Commerce Government Committee. A key component of economic strength is managing the needs of existing and prospective businesses to ensure a diverse mix that contributes to a stable tax base and enhances Eden Prairie s image and regional profile. Maintaining an adequate supply of land to support desired commercial or industrial/manufacturing activity is also important. Projects include a broad range of activities, including transit and road improvements, infrastructure enhancements, special economic redevelopment, and connecting businesses with financing resources. Funding Sources Economic Development Fund The City s Economic Development Fund was created in the early 1990 s to support projects that help create and/or retain jobs, improve the local tax base, support redevelopment efforts, or otherwise enhance the quality of life in the community. The fund was originally capitalized through the sale of various city-owned surplus properties over the last 20 years. Current revenue is limited to proceeds from leasing a City-owned daycare property on Singletree Lane. That property is expected to be sold in the future for assembly and redevelopment. Sale of the Singletree Lane property is the final anticipated source for future revenue for the Fund. See Appendix I for fund balances and projections. Tax Increment Financing (TIF) Redevelopment & Economic Development Districts Future property tax revenue increases from a defined area ( district ) are used to fund an economic development project or public improvement project. For redevelopment districts, the district must be blighted or meet other designation criteria that would warrant investment. TIF redevelopment district funds must be used to fix the conditions that created the district (i.e. blight). For economic development districts, funds must be used to expand employment or tax base for specific industries as identified by the State of Minnesota. Section 2: Economic Development Strategies & Project Priorities 5

10 TIF Pooled Redevelopment and Economic Development Funds and Admin Funds A percentage of tax increment financing can be pooled to be used outside of the established district for other projects. In redevelopment districts, 25% of the tax increment may be pooled. In economic development districts, 20% of the tax increment may be pooled. Pooled funds may be used for certain infrastructure improvements that serve the TIF Redevelopment or Economic Development area. A small percentage of the tax increment from projects is also allocated to administrative expenses. Minnesota Department of Employment and Economic Development (DEED) The Economic Development Division uses various DEED grant programs, such as: the Minnesota Investment Fund (MIF), which provides financing to help add new workers and retain highquality jobs; the Transportation Economic Development (TED) Program, which is available to communities for highway improvement and public infrastructure projects that create jobs and sustain economic development; and the Innovative Business Development Public Infrastructure (BDPI) program, which focuses on job creation and retention through the growth of new innovative businesses and organizations by providing grants for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs. Miscellaneous Sources Depending on the project, the Economic Development Division receives additional funding resources from private developers, Eden Prairie Chamber of Commerce, CIP, and the SouthWest Light Rail Transit (LRT) funding sources. 6 Section 2: Economic Development Strategies & Project Priorities

11 Economic Development Project Priorities Business Retention & Expansion Status as of March 2017 Timing: Ongoing Economic Development Fund TIF for eligible expenses PACE Financing Grants (DEED, etc.) Project Focus Continue to support business retention and expansion by reserving Economic Development Funds for emerging needs Explore additional financing and grant programs for existing and future businesses Utilize the PACE financing program and identify new grant programs or opportunities for businesses related to sustainability Open To Business Program Status as of March 2017 Timing: Ongoing County MCCD Economic Development Fund Project Focus In partnership with Hennepin County and the Metropolitan Consortium of Community Developers (MCCD), Open to Business provides a business assistance program to business owners Annual City financial commitment of $5,000 to support an Open to Business representative meeting with business prospects as needed Regular monthly hours at Rustica (Smith Douglas More House) Section 2: Economic Development Strategies & Project Priorities 7

12 LRT Business Communication Status as of March 2017 Timing: Use City Staff Strategy is to keep business and property owners along the Southwest Light Rail corridor informed and involved. Project Focus Met Council buying right-of-way and construction easements Hundreds of meetings completed w/property owners and businesses over last 4 years during design/engineering/environmental phase of the project New communication strategies to focus on final design of Town Center Station, construction mitigation efforts and construction activities related to road closures, temporary utility shut-off, etc. Realtor's Forum Status as of March 2017 Timing: 2018, 2020 City staff time General Fund Supplies MPLS Board of Realtors Project Focus Meet with local area realtors to educate them on Eden Prairie projects and important changes that can impact realtors and future homeowners Collaborate with the School District to provide Eden Prairie schools information A tour highlights all of the positive aspects of Eden Prairie so the realtors relay that information to prospective residents 8 Section 2: Economic Development Strategies & Project Priorities

13 City Entry Monument Signage Program Status as of March 2017 Timing: Economic Development Fund Project Focus City Council approved design concepts for 6 signs at highway entrances to City Sign at Highway 169/Anderson Lakes Parkway approved and being bid for 2017 construction Four additional signs near Highway 212/County Road 4, Highway 5/City Road 4, I-494/Prairie Center Drive, and I- 494/Highway 62 anticipated to be completed by 2018 A sixth sign near Highway 212/Shady Oak Road requires access easements and coordination with the LRT project Taprooms & Cocktail Rooms Status as of March 2017 Timing: Staff time Grants With liquor sales ordinance amendments passed at end of 2015 for taproom and cocktail rooms, review potential taproom sites and strategies in industrial areas. Project Focus Review potential taproom sites and strategies in industrial areas Review hours of operation Collaborate with Chamber of Commerce to promote Regulatory Consider zoning ordinance amendments to allow taprooms and cocktail rooms to operate in commercial districts Section 2: Economic Development Strategies & Project Priorities 9

14 Industrial & Commercial Area Studies Status as of March 2017 Timing: Comp Plan Budget (Studies) Project Focus With engagement of property owners and neighbors, conduct alternative land use studies for the following industrial areas: Venture Lane MnDOT Excess ROW property Martin Drive Industrial Area Flying Cloud Land Fill (if warranted after analysis of uses allowable by MPCA) Crosstown Industrial Area Conduct a more detailed land use and/or needs analysis for the following: Vacant property south of Rustica (off Glory Lane) Potential neighborhood service center(s) in Southwest Eden Prairie Regulatory Comprehensive Plan Updates Potential Zoning Changes 10 Section 2: Economic Development Strategies & Project Priorities

15 Major Center Area TOD & Mixed Use Redevelopments Status as of March 2017 Transit Oriented Development (TOD) Ordinance was adopted in July Our goal is to begin guiding redevelopment in the MCA and Southwest Light Rail Station Areas with a focus on mixed use and multi-modal transit. Timing: Private TIF Grants Project Focus Former Ruby Tuesday and Anchor Bank sites proposed for high-density mixed-use with apartments Former Sears Site at Mall proposed for redevelopment as Scheels with opportunities for hotel with meeting space and potential future housing and office uses on out lots Former IHOP site is opportunity site for hotel or TOD housing near Town Center Station Presbyterian Homes expected to redevelop Broadmoor Apartments in 2018/2019 Brunswick potential redevelopment as mixed use with option for LRT parking City-owned daycare property on Singletree Lane and adjacent property to the north are anticipated to be assembled for higher density mixed-use redevelopment Major Center Area Land Use Plan Former Sears location at Eden Prairie Center Section 2: Economic Development Strategies & Project Priorities 11

16 Special Services District Policies Status as of March 2017 Timing: 2017 City staff time Special service districts are special taxing districts for commercial areas and are a tool for enhanced public improvements and services. Project Focus Review and update policies related to Special Services Districts with the City Council Consider implementing districts in the Major Center Area (MCA), Golden Triangle, and City West New Town Center Entrance Plaza at Eden Road Status as of March 2017 Timing: TBD Project Focus At northwest corner of Flying Cloud Drive and Eden Road, a new Town Center entrance plaza with Town Center wayfinding signage, pedestrian amenities, landscaping, and public art Plaza is dependent on working with Southwest Light Rail to obtain the remnant property or easements after they purchase and remove EP Convenience Center for construction of LRT A design phase will need to be completed once rights to the property are secured Current Town Center Sign (Flying Cloud & Singletree Lane) Intersection of Flying Cloud Dr. & Eden Road (Potential Entrance Plaza Location) 12 Section 2: Economic Development Strategies & Project Priorities

17 Light Rail Station Area Improvements Status as of March 2017 Timing: Economic Development Fund Potential grants for art Project Focus Designs were completed in 2016 for City funded improvements beyond the Southwest LRT project scope include public plazas, additional landscaping, wayfinding signage, public art, and bicycle facilities for City West, Golden Triangle, and Southwest Station Areas Final design for improvements around Town Center Station will be completed in The CIP includes funding for most of the improvements with the exception of public art at stations (e.g. artistic bike racks) Section 2: Economic Development Strategies & Project Priorities 13

18 Singletree Streetscape Phase II & Water Quality Status as of March 2017 Timing: Walmart Escrow Livable Communities Grant City CIP (Engineering) Project Focus A Livable Communities Grant was received for completion of a regional stormwater treatment plan for the Town Center Area Project will provide water quality and streetscape improvements along Singletree Lane from Prairie Center Drive to Eden Road Improvements will be consistent with Town Center streetscape features City obtained $535,000 from Walmart for improvements that must be used by 2018 Design and coordination with property owners will take place in 2017 with construction in Section 2: Economic Development Strategies & Project Priorities

19 Other Street Construction/Realignment and Streetscape Projects Status as of March 2017 Priority: Medium Timing: Local State Aid (as available) Grants (Livable Communities LCDA or County TOD as available) Economic Development Fund Special Services District TIF (Districts & Pooled) Private Redevelopment Contributions (e.g. Presbyterian Homes) Project Focus Future projects include: Preserve Blvd Prairie Center Dr. to Anderson Lakes Pkwy W. 78 th Street (Prairie Center Dr. Washington Ave) Prairie Center Dr./Franlo Road Signal (dependent on development) Valley View Road/Topview Road (dependent on development) Prairie Center Drive Streetscape Phase I W70th Street (eastern segment) Eden Road Extension North-South Roadway ( Main Street in Town Center) Regulatory Comp. Plan Planned Unit Developments (PUDs) to require or incent certain improvements with expansions and redevelopment Section 2: Economic Development Strategies & Project Priorities 15

20 Prairie Center Drive Bridge Improvements Status as of March 2017 Priority: Medium Timing: 2019 TIF Pool (if eligible) Economic Development Fund (if needed) Project Focus Upgrade Prairie Center bridge over Highway 212 with new lighting and new (or repainted) railing with City logo features, similar to Shady Oak bridge design. Current Prairie Center Drive Bridge New Shady Oak Bridge Railing with City branding Golden Triangle Area Rebranding Status as of March 2017 Priority: Medium Timing: Contributions from property owners (e.g. Special Services District) Economic Development Fund (if needed for design) Project Focus Create branding and wayfinding signage for the Golden Triangle Area Incorporate branding into lighting on W. 70 th St. and throughout the Golden Triangle Area W. 70 th Street Enhancements W. 70 th Street 16 Section 2: Economic Development Strategies & Project Priorities

21 TOD Opportunity Sites Status as of March 2017 Project Focus TOD redevelopment in City West and Golden Triangle Station Areas Priority: Medium Timing: Private TIF Grants City West Opportunity Sites Shady Oak Retail Center has potential to redevelop as high-density mixed-use with housing over retail Optum s final building site has potential for hotel or housing if not needed for office growth Golden Triangle Opportunity Sites TAGS Gymnastics site is expected to accommodate LRT parking and could redevelop as high-density mixed-use with housing Liberty Property Trust is exploring TOD development for their properties Optum Campus Section 2: Economic Development Strategies & Project Priorities 17

22 Business Façade Program Status as of March 2017 Priority: Medium Timing: 2017 Economic Development Fund (Business Retention Fund Reserve) Project Focus Provide loans or grants to local businesses to rehab and improve storefronts to follow design guidelines in priority areas Funding would be targeted for neighborhood commercial areas outside of redevelopment priority areas Regulatory Design Guidelines (adopted) Architectural Ordinance Amendments (adopted) Before After (Rendering) 18 Section 2: Economic Development Strategies & Project Priorities

23 Co-working/Collaborative Business Center & Business Incubator Status as of March 2017 Priority: Medium Timing: Potential TIF financing for poject Economic Development Fund (2017 planning/marketing if needed) Project Focus Co-working/Collaborative Business Center would provide space or facilitate a private company to open co-location office/business incubator space in Eden Prairie Co-working space would be an alternative for independent workers, small businesses, start-ups, and corporate work groups Potential spaces/places - Office space at the Mall, former Lighthouse Day Care, or Venture Lane development. Vikings Training Facility Status as of March 2017 Priority: Medium Timing: Staff Time Project Focus Vikings moving training facility to Eagan in 2018 Discussion with Vikings about redevelopment of Winter Park needed Section 2: Economic Development Strategies & Project Priorities 19

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25 Section 3: Housing Strategies & Project Priorities The Housing and Community Services Division provides assistance, information and referrals to residents of Eden Prairie. All members of the community can utilize the services of this division, including immigrants, seniors and families. Housing and Community Services helps people access programs and find the information they need to lead healthy and full lives in the community. Strategies for achieving the division s mission are: 1. Partner with vendor agencies and community groups to identify service needs and gaps in the community and facilitate the funding process to ensure quality, appropriate services to meet the needs. This is an on-going process, accomplished by participation in monthly meetings, on-site visits, and referrals. 2. Ensure that immigrant populations have the tools and knowledge to share in the high quality of life in Eden Prairie. 3. Identify and coordinate resources to prevent duplication of services and promote efficient use of resources. 4. Encourage developments to include affordable housing and facilitate gap financing. 5. Allocate General Funds, CDBG and Pooled TIF Housing funds to affordable housing initiatives, housing rehab and human services programs. Funding Sources Tax Increment Financing (TIF) Housing Districts Taxes generated from the increased value (assessed value) of an improved property (new housing project) are used to help finance qualified improvements over a specific period. Projects financed with TIF Housing funds must provide rents affordable to persons with incomes below 50% of Area Median Income (AMI) on 20% of the total units or below 60% of AMI on minimum 40% of the total units. TIF Pooled Housing and Admin Funds Existing TIF Housing Districts often include provisions for a percentage of the tax increment funds to be pooled for future affordable housing projects. These funds can be used to help finance new affordable housing development or improvements to existing units as long as income limits are met by the residents. These funds can help support City programs such as the First Time Homebuyer and Housing Rehab Programs for residents with moderate incomes who do not qualify for CDBG (see below). A small percentage of the tax increment from projects is also allocated to administrative expenses. These TIF Admin funds can be used for attorney and consultant costs of preparing documents such as TIF extensions to preserve affordability. Section 3: Housing Strategies & Project Priorities 21

26 Community Development Block Grant Program (City & Federal) Created by HUD in 1974, this program provides annual entitlements to cities based on a population, age of housing, and poverty level formula. Cities have the flexibility to use these funds in a variety of ways to address issues affecting low-moderate income persons. Eden Prairie dedicates 85% of its funding for housing related activities: First Time Home Buyer Program, Housing Land Trust, and Housing Rehabilitation Loan Program. CDBG financed projects must provide rents that are affordable to persons with income below 80% of AMI. For rental housing, the City of Eden Prairie requires that rents be affordable to persons with incomes below 50% or 60 % of AMI. For homeownership and housing rehab which use CDBG funds, the City requires incomes below 80% of AMI. Housing Revenue Bonds Housing Revenue Bonds are an additional funding source that can be used to finance the rehabilitation of owner-occupied or renter-occupied residential units to maintain our existing housing stock. The City administers Housing Revenue Bonds to help Eden Prairie property owners finance improvements to multi-family developments with moderate and low-income families and seniors. The City collects a percentage fee for this service. Other Grants, Loans, and Incentives A number of other grants, loans and incentives are available for housing projects that include affordability components. Hennepin County administers the Affordable Housing Incentive Fund (AHIF) program which provides loans for rehab or construction of affordable housing. The Metropolitan Council administers the Local Housing Incentive Account (LHIA) which provides loans to purchase property for affordable housing. The Metropolitan Council also administers the Livable Communities Demonstration Account (LCDA) and Transit Oriented Development (TOD) grants, which favor projects with affordable housing. In addition, the Minnesota Housing Finance Agency (MHFA) administers the Low Income Housing Tax Credits (LIHTC) program which provides incentives for developers to include affordable housing in their projects. The NOAH Impact Fund, offered through Greater Minnesota Housing Fund, provides equity investments to developers to support the preservation of existing affordable rental housing in the seven-county metro area that is at risk of becoming market rate. 22 Section 3: Housing Strategies & Project Priorities

27 Housing Project Priorities Preservation of Naturally Occurring Affordable Housing (NOAH) and Existing Affordable Rental Housing Status as of March 2017 Some existing apartments need physical improvements or have operational challenges. They may be providing affordable rents without subsidies due to the condition of the properties Naturally Occurring Affordable Housing (NOAH). Timing: Ongoing CDBG Pooled TIF NOAH Fund Project Focus Explore other ways to increase the number of affordable rental units among our existing supply of rental housing Utilize the Property Manager s Group to educate landlords regarding Fair Housing requirements, the City Rental Inspections and Maintenance Program, and other initiatives to improve the operations and maintenance of rental housing Explore ways to assist with operational issues that may affect future preservation of affordable housing Section 3: Housing Strategies & Project Priorities 23

28 Create Affordable Housing Opportunities Status as of March 2017 Timing: Ongoing CDBG TIF Pooled TIF WHAHLT Grants Tax Credits Elderly Waivers Project Focus Aspire Eden Prairie 2040 Comprehensive Plan Update is expected to have a goal of 16.5% of all new units affordable with specific goals for different income ranges Encourage and incentivize developers to include affordable units in their housing developments near transit and/or services Work with existing property owners to convert some market rate units to affordable Incentivize redevelopment of TOD opportunity sites to include housing affordability: Southwest Station Apartments proposal, Brunswick site, IHOP site, Shady Oak Center, TAGS Increase Homeownership Opportunities Status as of March 2017 Timing: Ongoing CDBG Pooled TIF Our First Time Homebuyer Program has helped: 5 first time homebuyers with pooled TIF 12 first time homebuyers with CDBG 12 Land Trust Homebuyers funded through CDBG Project Focus Continue to leverage CDBG and Pooled TIF to assist first time home buyers 24 Section 3: Housing Strategies & Project Priorities

29 On-Track Housing Concept Status as of March 2017 Timing: PROP Grants Pilot project to support up to four rental units to house transitional individuals/families who will receive social services from PROP to help them move on toward self-sufficiency. Project Focus Work with existing property owners to determine interest and create legally binding agreement Goal Oriented On-Track Housing is the first step towards homeownership Quality of Life Investments Status as of March 2017 Timing: CDBG General Fund Project Focus Invest in service providers, education opportunities, and other quality of life factors Focused in multi-family buildings Supporting residents beyond quality housing Section 3: Housing Strategies & Project Priorities 25

30 Housing Rehabilitation Loan & Grant Programs Status as of March 2017 Timing: Ongoing TIF Pool CDBG The Housing Rehabilitation Loan Program helps low and moderate income homeowners maintain their homes. Eligibility is determined by HUD and pooled Housing TIF income limits and all loans are available on a first come, first serve basis. Project Focus Continue to promote program to low and moderate income homeowners Modify existing housing rehab loan program to provide for a phased repayment of the loan, which reduces the amount of the loan after ten years Create new grant program for income eligible senior citizens where up to $5,000 is available for home repairs Housing Improvement Areas (HIA) Status as of March 2017 Timing: Ongoing Special assessments An HIA promotes neighborhood stabilization and revitalization of townhome properties that do not have adequate resources for necessary repairs/improvements. Project Focus Fairway Woods Condominium Association completed their HIA in 2014 for 20 units Application submitted to establish Neill Lake Townhome HIA. This program will finance the foundation repair of two units and the re-siding of all buildings in the Association 26 Section 3: Housing Strategies & Project Priorities

31 Eden Gardens Green, Mid-Market Neighborhood Status as of March 2017 Timing: 2017 Project Focus Project is nearly 75% built or under construction oversee remainder of build out Use as model for new developments: green features, community space, mid-market affordability Section 3: Housing Strategies & Project Priorities 27

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33 Appendix I: Economic Development and Housing Fund Balances and Projections Economic Development Funding Sources (as of March 2017) Economic Development Fund Balance and Projections Year Beginning Cash Balance Rental Income (Daycare) 1 Sale of Dell Property Project Expenditures 2 Program Expenditures 3 Balance $3,854,672 $66,492 $450,000 $4,371, $4,371,164 $66,492 $4,437, $4,437,656 $66,492 $4,504, $4,504,148 $66,491 $4,570, $4,570,639 $59,303 $4,629, $4,629,942 $0 $1,262,500 TBD $3,362, $3,362,442 $68,506 $1,500,000 TBD $1,925, $1,925,948 $69,191 $400,000 TBD $1,590, $1,590,139 $69,792 $500,000 TBD $1,154, $1,154,931 $70,489 TBD $1,220, $1,220,420 $71,194 TBD $1,286, $1,286,614 $0 TBD $1,281, $1,281,614 $0 TBD $1,276, $1,276,614 $0 $200,000 TBD $1,071,614 1 Daycare rental income based upon actual revenue through 2016 and projections for No rental income is projected for 2017 due to a vacancy for at least part of the year and potential need for tenant improvements. Daycare is expected to be sold at some date (projected in 2023) after a new 5-year lease, however the City will likely retain rights to early termination with reasonable notice in case a redevelopment opportunity is more imminent. No revenue is projected for sale of the daycare in case a land write-down is needed for redevelopment. 2 Based on approved Capital Improvement Plan (with some minor expenditure year updates; see proposed uses on page 30). 3 Program expenditures may occur for Business Retention & Expansion, Business Façade Program, Golden Triangle Area Rebranding, and other similar projects, as needed. 4 Balance excludes program expenditures and could be depleted prior to Appendix I: Economic Development and Housing Fund Balances and Projections 29

34 Economic Development Fund Proposed Uses (Projects & Programs) Project Description Year Cost 1 Co-working/Collaborative Business Center & Business Incubator 2017 $25,000 Light Rail Transit Project Improvements (upgrades) 2017 $300,000 2 Singletree Streetscape Phase II & Water Quality $300,000 2 City Entry Monument Signs $387,500 2 Light Rail Station Area Improvements $1,850,000 2 Open to Business Program $45,000 Prairie Center Drive Streetscape Phase I 2018 $400,000 2 West 70 th Street (eastern segment) 2018 $150,000 2 Prairie Center Drive Bridge Improvements 2019 $250,000 2 North-South Roadway ( Main Street in Town Center) 2025 $200,000 2 Business Retention & Expansion TBD As Needed Golden Triangle Area Rebranding TBD As Needed 1 Cost only includes expenditure from Economic Development Fund; total project cost may be higher. 2 Will evaluate uses of Pooled Redevelopment TIF Funds as an alternative funding source to preserve the Economic Development Fund. 30 Appendix I: Economic Development and Housing Fund Balances and Projections

35 Pooled Redevelopment TIF Funds Annual Revenue Year Annual Revenue Balance $393, $401,805 $795, $454,910 $1,250, $289,023 $1,539, $350,868 $1,890, $364,328 $2,254, $363,985 $2,618, $57,345 $2,676, $57,345 $2,733, $57,345 $2,790,920 Total $2,790,920 1 Fund projections beginning in Balance excludes expenditures Pooled Redevelopment TIF Funds Potential Uses Project Total Project Cost Year Pooled TIF 1 Shady Oak Road Southern Segment (Bridge and Interchange improvements) $22,081, $2,000,000 2 W70th Street (eastern segment) $1,400, $150,000 Prairie Center Drive Streetscape Phase I $4,248, $400,000 Prairie Center Drive Bridge Improvements $250, $250,000 Light Rail Transit Project Improvements (upgrades) $8,225, $300,000 Light Rail Transit Station Area Improvements $1,850, $1,850,000 North-South Roadway ( Main Street in Town Center) $3,800, $200,000 1 Eligibility and amount to be determined; if ineligible, Economic Development Fund should be considered. 2 Expended $2,000,000 of Pooled Redevelopment TIF Funding in Appendix I: Economic Development and Housing Fund Balances and Projections 31

36 Housing Funding Sources (as of March 2017) Federal CDBG Expenditures and Projections Program Year 1 Available Funding CDBG Allocation Program Income Earned Housing Rehab Affordable Housing Expenditures Public Service Program Admin $233,334 $284,102 $379,104 $47,125 $54,000 $37, $243,436 $357,545 $415,381 $96,600 $52,000 $37, $253,017 $99,709 $66,136 $179,590 $64,000 $43, $224,976 $113,598 $152,644 $98,130 $47,800 $40, $227,139 $152,539 $135,678 $144,000 $54,000 $46, $210,636 $100,000 $128,536 $105,000 $53,000 $24, $200,000 $100,000 $117,000 $105,000 $53,000 $25, TBD TBD TBD 1 Program year is from July 1-June 30 2 Amounts listed are amounts identified in HUD-approved 2016 Action Plan; actual end of year expenditures will be different 3 Estimated; Federal HUD Fiscal Year 2017 Budget not approved as of April 2017 CDBG Generated Program Income Development Annual Payment Expires Columbine $10,000 Jul 2024 Lincoln Parc $21,508 Dec 2021 Homeowner Loan Payoffs Amount Varies 32 Appendix I: Economic Development and Housing Fund Balances and Projections

37 Pooled Housing TIF Funds Annual Revenue Year Annual Revenue Balance $238, $303,219 $541, $233,222 $774, $276,956 $1,051, $268,163 $1,319, $267,572 $1,587, $277,570 $1,864, $577,570 $2,442, $198,624 $2,641, $198,624 $2,839,750 Total $2,839,750 1 Fund projections beginning in Balance excludes expenditures Pooled Housing TIF Funds Proposed Uses Project Redevelopment to Affordable First Time Home Buyer Loans Housing Rehab Loans TOD Moderate Income Housing Projects Financing Total Cost $25,000/year $25,000/year $50,000/year $300, ,000/per project for 2-3 projects Appendix I: Economic Development and Housing Fund Balances and Projections 33

38 Housing Revenue Bonds Year Issued Issued For Amount Issued 1987 Fountain Place I $24,653, Fountain Place II $12,600, Castle Ridge $3,670, SWB, L.L.C. Project $2,035, Eden Glen Apartments Project $2,490, Park at City West $14,905, Rolling Hills Project $23,300, Elim Shores $2,855, Prairie Meadows $5,805, Castle Ridge - Broadmoar Apartments $10,000, Eden Glen Apartments Project A $2,390, Eden Glen Apartments Project B $2,820,000 Total $107,523, Appendix I: Economic Development and Housing Fund Balances and Projections

39 Appendix II: 2005 Project Status Updates 2005 High Priority Projects Major Center Area (MCA) Wayfinding Signage Status as of March 2017 Timing: Complete Private/Public Partnership (80% private, 20% public?) Special Assessments or other private sector payments Special Service District? HRA Levy increase (Citywide?) Regulatory MNDOT approval for highway signs (also County if 212 turned back first) Financing Current Status MN DOT Turn back and TH61 signage Phase I and Phase II completed General Growth directional signage back to highways completed Mall directional signage on ring road completed Town Center monument sign installed Appendix II: 2005 Project Status Updates 35

40 Major Center Area (MCA), Park Acquisition (Lake Idlewild portion of Emerson industrial property) Status as of March 2017 Timing: If can t require/negotiate with redevelopment or need amenity to catalyze redevelopment, consider grants, park dedication fees, referendum, etc. Regulatory Comp. Plan & Zoning Amendments Current Status Some property will be dedicated to the SW LRT alignment Emerson Rosemount invested $25 million in major renovation of their building (completed in 2013) so additional redevelopment is unlikely Any additional park development will be in conjunction with future redevelopment of the area 36 Appendix II: 2005 Project Status Updates

41 Singletree Lane Streetscape Status as of March 2017 Timing: Complete Private City CIP TIF Pool ED Fund Grants Regulatory Comp. Plan Potential Zoning Ordinance amendments to require or incent certain improvements with redevelopment Current Status Town Center Ordinance Adopted Singletree Lane Phase I streetscape completed Golden Triangle Redevelopment of Old Projects Physical Electronics Building (EP Tech Center) As Office and Foss Swim Uses Status as of March 2017 Timing: Complete Gap financing TIF substandard building analysis contract to be considered by Council; if doesn t qualify, potential tax abatement? Regulatory Comp. Plan Amendment and rezoning for office PUD Zoning Amendment, Site Plan Review, and plat for Foss Current Status Redevelopment completed Appendix II: 2005 Project Status Updates 37

42 Conference Center Projects (With new hotel development potentially on old Best Buy headquarters site or in MCA) Status as of March 2017 Timing: Gap financing TIF if qualifies or tax abatement for conference center or meeting hall? Lodging Tax? Regulatory Refine and adopt Golden Triangle and MCA studies into Comp. Plan Zoning Amendments as necessary and Site Plan review Current Status Hotel Study conducted in Hotel study suggested EP's market best suited for an upscale, select service hotel brand like Aloft, with limited meeting space versus a full service hotel with convention space Chestnut Apartment Improvements Projects (Physical and reduce police calls) Status as of March 2017 Timing: Encourage additional private reinvestment CDBG? Bond and low interest loan? Current Status No further action attempts to engage property owner were not successful 38 Appendix II: 2005 Project Status Updates

43 St. John s Woods Housing Improvements Status as of March 2017 Timing: Complete Insurance Claims HOA Funds Current Status Property underwent significant improvements funded by insurance claims and HOA funds Appendix II: 2005 Project Status Updates 39

44 2005 Medium Priority Projects Golden Triangle Neighborhood Park Site (10-20 acres to serve up to 3000 new housing units and trail connections) Status as of March 2017 Priority: Medium Timing: Park dedication fees? Referendum? Grants? Regulatory Refine and adopt GTA Study into Comp. Plan; designate park property Potential rezoning Potential park dedication amendments (fee increases? Take 10% of acreage plus setback area?) Current Status No further action no new housing projects since 2012 Strategic Plan Update Edendale Housing Improvements Status as of March 2017 Regulatory Multi-family maintenance inspections Priority: Medium Timing: CDBG? Current Status No new requests for assistance with rehabilitation projects been received 40 Appendix II: 2005 Project Status Updates

45 Truth-In-Housing (Point of Sale Inspections Status as of March 2017 Priority: Medium Timing: Current Status No further action City Council did not express interest in further consideration Neighborhood Service Areas in SW and NW Areas of City Status as of March 2017 Priority: Medium Timing: Current Status No further action City Council did not express interest in further consideration Appendix II: 2005 Project Status Updates 41

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47 Appendix III: Project Status Updates Eden Prairie Southwest Light Rail Transit (LRT) Projects Town Center Station & Alignment Status as of March 2017 Timing: Complete Use City Staff Current Status Location C Regional Center Road Area alignment chosen Station deferred until after the line is in service Town Center Station Area C Operation & Maintenance Facilities Site Selection Status as of March 2017 Timing: Current Status No further action Hopkins chosen as Operation & Maintenance Facility site Appendix III: Project Status Updates 43

48 Transitional Station Area Action Plans (TSAAP) Status as of March 2017 Timing: Metropolitan Council Grant to County City staff time Hennepin County, with the collaboration of the Cities of Eden Prairie, Hopkins, Minneapolis, Minnetonka, and St. Louis Park, is hiring a consultant team for the development of Transitional Station Area Action Plans (TSAAP) for the 17 proposed stations along the SW LRT line. This work is considered to be part of the project development process. The Transitional Station Area Action Plans are an example of the early integration of LRT engineering and land use/economic development. Current Status TSAAP completed for all proposed stations in Eden Prairie, including deferred Town Center Station Infrastructure improvements have already begun, including W70th Street connection and Shady Oak Road bridge projects 44 Appendix III: Project Status Updates

49 Town Center Stormwater Analysis Status as of March 2017 Timing: Complete Metropolitan Council Grant to County City staff time Current Status Eden Prairie Center Mall Stormwater Manager Guide completed and final copy published September 2014 Guide assists developer in designing innovative, green, Best Management Practices (BMPs) for use on Eden Prairie Center and surrounding areas. MCA Future Land Use Community Engagement Status as of March 2017 Timing: Complete Metropolitan Council Grant to New American Academy (NAA) City staff time Current Status Partnered with Twin Cities LISC on a Corridor Development Initiative (CDI) process, which engaged members of the immigrant community Collaborated with NAA in their Met Council funded Corridors of Opportunity initiatives to help immigrants learn business/entrepreneurial skills Appendix III: Project Status Updates 45

50 Transit Oriented Development (TOD) Ordinance Status as of March 2017 Regulatory Comp Plan amendments for TOD Timing: Complete Metropolitan Council Grant to the City Economic Development Fund City staff time Comp Plan Current Status First reading of the TOD ordinance was approved in August 2015 Second reading and final adoption of ordinance approved in Summer Appendix III: Project Status Updates

51 Economic Development Projects City Center Leases Status as of March 2017 Timing: Complete City staff time Supervalu signed 5-year lease beginning March 2014, with another 14K leased to Supervalu starting early 2016 School District signed a new lease in 2014 Fiscal Impact Modeling (FIM) Status as of March 2017 Priority: Medium Timing: Grants City Staff Time Current Status No further action Department uncertain of the need for tool and its availability Web-Based Business Directory Status as of March 2017 Timing: Current Status Collaborated with City s Communications Division in vetting Shop QA, but decided against moving forward Appendix III: Project Status Updates 47

52 GTA Land Use / Transportation Analysis Status as of March 2017 Priority: Medium Timing: Complete ULI County Community Works Grants Current Status Land use analysis completed, including job growth forecasting and assumptions Public Works to completed transportation analysis study as part of 2018 Comp. Plan update Convention & Visitors Bureau -Conference Center Status as of March 2017 Priority: Medium Timing: Private TIF Other Hoteliers also expressed need for a large meeting space or conference center in Eden Prairie. Current Status No further action at this time 2016 Hotel study suggested market did not warrant a full service hotel with convention space Chamber of Commerce not prioritizing project 48 Appendix III: Project Status Updates

53 Shady Oak Bridge Reconstruction Status as of March 2017 Timing: Complete Private Grants TIF Pool City CIP Grants Current Status Reconstruction completed in Summer 2016 Singletree Lane/W78th Street Realignment Status as of March 2017 Priority: Low Timing: State Aid City CIP TIF Poof Southwest LRT Project Grants Realignment of Singletree Lane so that Singletree connects with W. 78 th Street was recommended in MCA Study as a near-term improvement. Current Status No further action at this time Project is identified but is not included in 10-year Engineering CIP Will consider integration with Southwest LRT projects depending on Town Center station area construction Appendix III: Project Status Updates 49

54 Housing Projects Homeowner s Association Improvement Grants (HAIG) Status as of March 2017 Timing: HAIG facilitates housing improvements for townhome properties with 95% low-moderate income owners. Current Status No eligible Homeowner Associations have been identified Income guidelines cannot be met Corridor Housing Strategy Status as of March 2017 Timing: Complete Metropolitan Council Grant to ULI City staff time Current Status City accepted the Corridor Housing Strategy in June 2016 City staff is conducting a study of existing housing inventory and future housing/needs trends as part of the 2018 Comprehensive Plan Update 50 Appendix III: Project Status Updates

55 Extend Affordability of Existing TIF Housing Districts Status as of March 2017 Timing: Complete TIF TIF Admin State Statute maximizes the term of a TIF Housing District at 15 years. Following that, the term can be extended for an additional ten year term. Three TIF Districts (The Colony, Summit Place, and Lincoln Parc) were extended in 2015, preserving 100 affordable units for an additional 10 years. Rehab Grants Nonprofits Status as of March 2017 Priority: Medium Timing: Complete CDBG Current Status Total grant amounts to non-profit housing rehabilitation projects is $1,072,376 Appendix III: Project Status Updates 51

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57 Appendix IV: Detailed Strategic Planning Process ( ) The 2005 Strategic Plan for Housing and Economic Development was a collaborative interdepartmental effort that included City Council input. The plan was revisited in 2008 and In March, April and May of 2012, a series of three City Council workshops were held in relation to a more comprehensive update of the Strategic Plan. The purpose of these workshops was to update the City Council about the status of the 2005 initiatives and obtain input and direction from the Council for the new strategic plan. In 2016, additional revisions and updates were made to position the strategic planning project goals and process through The Strategic Plan for Housing and Economic Development used the Strategic Plan as a framework for updating the plan for Divisions within the Community Development Department worked together to provide a draft of project priorities for the October 4 and November 15, 2016 workshops. Based on City Council feedback, staff prepared a final draft of the Strategic Plan for approval at the March 21, 2017 City Council meeting. Intended to be a living document, the Strategic Plan will be a reference resource for the department, and amended and updated as future conditions change Strategic Planning Process April - September Half-day Staff Brainstorming Sessions September 2005 Strategic Plan City Council Workshop 2005 Strategic Plan Implementation Strategies Completed Appendix IV: Detail Strategic Planning Process ( ) 53