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HomeMy WebLinkAbout2.D. Senior Housing; Preliminary Development Agreement 4 ROSEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: October 10, 2012 AGENDA ITEM: Senior Housing; Preliminary AGENDA SECTION: Development Agreement Discussion PREPARED BY: Kim Lindquist, Community Development AGENDA NO. Director ATTACHMENTS: Draft Preliminary Development APPROVED BY Agreement Undertakings oai RECOMMENDED ACTION: Discussion Item ISSUE In July, the Council discussed moving forward with Doran Companies to partner on the Steeple Center Senior housing and Senior Center project. In August, Mr. Stoddard and Mr. Doran came to the Council work session to discuss ideas they had regarding additional amenities to the project and the idea of shared pool and health facilities. The Council discussed the proposal and indicated that these additional features could be included on the site,but that the City continues to be interested in some type of public senior/multi-generational center. In September, the Council continued discussions about the Senior Center and what amenities would be public or private and what the City is looking for. The Council determined that they would like to build a 5,000 square foot public building that would be used for a variety of public activities,including senior programming. They would like to investigate adding a second story to the senior housing, either now or in the future, depending upon cost and available funding. The Council also clarified that they are not willing to pay for capital, operating and maintenance associated with a pool and fitness area, and that space dedicated to those uses would not be within the 5,000 square foot footprint of the City's public space. Since last month, staff has been working with Bill Stoddard and Doran Companies to develop a listing of "undertakings" that each group, the City and Doran,would agree to address as part of a preliminary development agreement. This is structurally the same type of arrangement the City entered into with CPDC when starting the Waterford Commons project. It is recognized that a lot is unknown at this time, until more formal building plans are created, and additional conversation needs to be had on the programming and operational side. However, staff believes the draft attached reflects the direction and desire of the Council for this project. Some highlights of the agreement are,consistent with last month's discussion, that the City wants 5,000 square feet of public space and there will be no financial contribution to the pool and fitness area. It also recognizes that the City will pay an appropriate fair share of the site work and site features, such as parking and drive aisle, sidewalks and public spaces. In recognition of the additional underground parking Doran agreed to provide, the size and potential taxable value of the project, and the financial benefit to the City for implementing joint construction management and capping of the profit and overhead to 5% of the total project cost, the City will be providing the land for free and providing access to grants for the project, so long as reimbursement is in compliance with the grant requirements and specific performance. At this point, Doran representatives have agreed to the language in the attachment. There is additional work that should be done to get the preliminary development agreement together although much of that is in the bailiwick of the City Attorney. Pending concurrence from the Council at the worksession, staff plans on having action on the Preliminary Development Agreement scheduled soon. 2 Pre-Development Agreement Items A. Doran Companies Responsibilities: 1. Develop an 80-90+unit Senior Housing Facility on land currently owned by the City and Port Authority north of the current Steeple Center. 2. Provide underground parking of at least stalls.These stalls will be used for residents and staff for the senior housing project. 3. Provide public access to the café and dining areas of the senior living area in a manner to be determined (TBD)and provide Steeple Center events with the option for catered meal service from the senior housing full commercial kitchen. 4. Provide specific list of benefits to the City in consideration of proposed transfer of land and use of grant funds to the project(see paragraph C below) 5. Investigate, at the City's option, use of senior housing staff for TBD programming and activities at the City's Senior Center and Steeple Center facilities.Any shared programming would be memorialized in a separate agreement. 6. Provide a bid to the City to build the public Senior Center building of approximately 5,000 square feet. The bid will be a not-to exceed amount with Doran fees included for profit and overhead of 5%of the project costs and will not contain a Developer Fee.The Bid will also include an amount of general conditions attributable to the City's project. Also provide a good faith estimate of the cost of adding a second story on the public Senior Center which would add an additional 5,000 square feet to the building. 7. Doran Companies will design the Senior Housing Facility in a manner consistent with the City's Zoning Ordinance and Downtown Design Guidelines and submit plans to the Planning Commission and City Council for review and approval. 8. Any swimming and fitness feature constructed on the premises will be funded entirely by Doran Companies as well as any operational costs for such facilities.The pool and fitness area must be outside of the 5,000 square feet dedicated to the City for public use. 9. Provide a detailed timetable for acquiring financing, design and construction of the project similar to the attached example from a previous City project. 10. Provide a project pro forma detailing all costs of the project,the sources and uses of all funds to finance the project, and a justification for the use of public land and grant funds for the project. 11. Conduct at least three community open houses or neighborhood meetings to solicit public input regarding the proposed development plans. 12. Doran Companies will pay a pro-rata share of the site work and site improvements, excluding buildings.The appropriate share will be determined after further plan development. B. City of Rosemount Responsibilities: 1. Transfer approximately 1.6 acres of land to Doran Companies to build the private Senior Housing facilities for$1.00. 2. Demolish the school, meeting all state requirements for removal and management of asbestos and other hazardous materials. All environmental information and reports on the site that are available to the City and the Port Authority will be provided to Doran Companies. Doran Companies will be entitled to investigate and conduct such additional tests and studies of the environmental condition of the site as it deems appropriate. If Doran Companies discovers environmental contamination on the site prior to closing,the parties will negotiate an allocation of responsibilities for cleanup or remediation. If the parties are unable to agree on such an allocation, Doran Companies will not be required to close on the sale of the property 3. Reimburse Doran Companies up to$390,000 from the five remaining Livable Communities Development Act(LCDA)grant items based on satisfactorily complying with all requirements of the LCDA grant. The City will retain reimbursed LCDA funds for any work the City does to make site improvements in compliance with the grant application and funding agreement. 5. Enter into a shared maintenance agreement to cover items such as parking lot maintenance, snow removal, lawn care and possibly some interior space CAM to be determined. 6.The City will pay a pro-rata share of the site work and site improvements, excluding buildings.The appropriate share will be determined after further plan development. 7. Investigate use of the public spaces in the Senior Center and Steeple Center for programming of senior housing residents. Any shared use would be memorialized in a separate agreement. C. List of City benefits in consideration for the transfer of land and use of grants(Items B-1 and B-3 above). 1. Surface parking of_stalls available for public use of the Steeple Center and Senior Center. It is acknowledged that the amount of surface parking provided for public use is due to the investment of $ by Doran Companies in doubling the underground parking originally planned. 2. Reduced construction overhead,general conditions and construction costs by combining the Senior Center and Senior Housing projects into one project constructed at the same time. Cost savings are estimated at 20-30%. 3. Potential fee-based public use of wellness and fitness facilities and programs. Any fees associated with amenities owned and maintained by Doran Companies would be paid to Doran Companies. 4. Creation of a project with public amenities such as plazas, underground storm retention, and pedestrian circulation that would not be possible without the joint project. 5. The Senior Housing Facility will add an estimated$10,000,000 to$15,000,000 to the tax rolls in Rosemount.