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HomeMy WebLinkAboutCity Council - 11/01/2022 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, November 1, 2022 CITY CENTER 5:00 – 6:25 PM, HERITAGE ROOMS 6:30 – 7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey, CITY STAFF: City Manager Rick Getschow, Police Chief Matthew Sackett, Fire Chief Scott Gerber, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, and City Attorney Maggie Neuville Workshop - Heritage Rooms I and II (5:30) I. MARKET STUDY FOR DORENKEMPER HOUSE (MAXFIELD RESEARCH) Mayor Ron Case opened by noting the Dorenkemper house is one of three log cabins in the City, and the only one owned by the City. City Manager Rick Getschow added this project came from a Council goalsetting discussion that included future possibilities for the site. Getschow explained the plan to bring sewer and water were to the house as a part of the 2023 Capital Improvement Plan (CIP) and that the City undertook a market study to understand possible uses of the land. Mayor Case asked if there were plans for utilities beyond sewer and water, specifically electricity. Getschow answered he would consult the Facilities department and get back to the Council on that item. Community Development Director Julie Klima introduced Mary Bujold, President of Maxfield Research and Consulting, LLC who conducted the market study for the City. Mary Bujold began by outlining the presentation agenda. Bujold explained the objective of the project was to provide a custom, high-level, best use analysis for the property as well as identify land uses and real estate types that will meet the needs of Eden Prairie residents. Bujold provided a brief history of the Dorenkemper House and the explained the surrounding Lake Riley area and amenities. Bujold noted the City owned Riley-Jacques Barn and rental house located in the area but said they were not included in this market study. Bujold presented maps of the area and explained adjacent and surrounding land uses including Bearpath Country Club, the Alcove at Lake Riley community, surrounding single family City Council Workshop Minutes November 1, 2022 Page 2 housing and Lake Riley. The area is considered low density residential except for the Bearpath Country Club golf course. Bujold noted relatively low traffic volumes near the site but higher traffic volume on nearby major roadways including US Highway 212 and Pioneer Trail. Bujold identified strengths and weaknesses of the site. Strengths of the site are convenient access to US Highway 212 and I-494, its proximity to Riley Lake Park amenities and lake access, the wooded topography, and retail being only a short drive away. Weakness of the site included limited future commercial opportunities, the site being secluded and unknown to those outside the neighborhood, low traffic counts and low visibility. Bujold went on to discuss demographics and economics. Drive time to the site was reviewed, resulting in a primary market area within ten minutes and largely contained within the City. There are specific uses that could bring people in from farther than the ten-minute radius. Bujold explained that Eden Prairie is was projected to grow by 2.2 percent in population through 2030, with Millennials and Baby Boomers showing the highest growth. This growth is similar to that of the broader twin cities metro area, the state, and nation. Bujold highlighted that Eden Prairie and the primary market area (PMA) have higher median incomes than the twin cities metro area. Unemployment rates are low in Eden Prairie, similar to pre pandemic levels. Bujold explained the local hotel market and how hotels are classified by Smith Travel Research. 54.3 percent of hotels in the Eden Prairie area are classified as upper midscale or upscale. Councilmember PG Narayanan asked about the luxury hotels listed on the presentation. Getschow and Bujold clarified the larger market area and that none are in Eden Prairie. Getschow asked how extended stay hotels are classified. Bujold answered they are typically classified in the upscale and upper mid-scale categories. Bujold presented occupancy and room rates for the Minneapolis South Area Submarket between 2015 and 2021. The hospitality market is recovering post-pandemic, both occupancy and room rates are increasing. Bujold noted the upscale to luxury categories of hotels will have different growth in terms of room rates. Bujold shows a map of hotel locations and noted the density of hotels near I-494 and other arteries. Narayanan asked about the relevance of hotels in the area. Bujold answered that major hotels tend to be in areas with traditional real estate location factors. A site would want to be located near high traffic areas and restaurants and be visible to potential clients. In Eden City Council Workshop Minutes November 1, 2022 Page 3 Prairie, most hotels are located as such. Dorenkemper House may not compete directly but will depend on who it is marketed to. Bujold continued to short term rentals. Short term rentals are a smaller but growing segment of the market and tend to be properties that are boutique and more unique. Short term rentals are defined as furnished living space available for short periods of time, a few days to weeks. Rentals would often be one month or less, with 95 percent being classified as single-family homes, condos, townhomes, villas, or cabins. Many short-term rentals are used for vacations, and the most popular short term rental sites are Vacation Rentals by Owner (VRBO), Airbnb and Home Away. Bujold noted short term rental occupancy increased seasonally. The same is true across years, that is based on the leisure nature of user groups for these rentals. Getschow asked if bed and breakfast properties fall into the short-term rental category. Bujold answered they are, but the market has expanded and the types of properties included in the market have changed. Bujold explained City Ordinances regarding short-term rentals, and data on short-term rentals in Eden Prairie booked on websites. Bujold presented a chart with data on sports and leisure activities. Bujold highlighted the top ten activities and behaviors of the area. Bujold presented her recommendations for the Dorenkemper House and adjacent vacant land. Bujold explained that commercial real estate categories include office, industrial, retail, and personal and professional spaces. A seasonal ice cream parlor was given a medium priority among commercial uses. Mayor Case asked what criteria went into the prioritizing on the Recommendations Matrix. Bujold answered the characteristics of the site, location, general criteria for locate specific retail uses. Bujold noted restaurants are hard to start up and while coffee shops have stayed in the marked more readily, they can still fail. General retail is recovering in some segments while others are still struggling. Narayanan noted the presence of Dairy Queen (DQ) in the market. Bujold explained DQ’s very specific franchise location requirements. Getschow noted the Heritage Preservation Commission (HPC) has expressed interest in an ice cream shop at the site. Mayor Case asked if Bujold had researched the concept of a destination restaurant given the historic nature of the property. Mayor Case explained he wants the public to have access to the site and for the site to be something that draws people to the location. Mayor Case noted that besides Redstone, no restaurant in Eden Prairie overlooks a lake though we have many throughout the City. Mayor Case asked if the building was expanded, could a restaurant, City Council Workshop Minutes November 1, 2022 Page 4 coffee shop or ice cream shop work on the site? Bujold answered there are examples of properties like that working, it would depend on how much the property could be altered. Mayor Case noted the building had been moved already so there was no issue with alteration. Bujold said the property would need a commercial framework to make that type of use work. Bujold noted the seasonality of the site. Bujold highlighted Lord Fletcher’s as an example. Bujold noted Lord Fletcher’s longevity and that starting a new destination restaurant would be a significant investment. Councilmember Kathy Nelson noted the need for docks at the site. Councilmember Lisa Toomey asked how many docks were presently located at the site. Mayor Case responded zero. Bujold said there were examples of successful facilities of this type, perhaps the restaurant could move from low to medium priority but not to high. Narayanan asked if Bujold had looked at a combination of ice cream, coffee, and restaurant on the site. Bujold asked if there was interest in developing a retail food court type space. Mayor Case clarified the Council was looking for more of a Smith Coffee model with coffee in the morning, ice cream in the afternoon, and pizza in the evening with live music. Mayor Case explained the history of Smith Coffee being an upfront investment from the City with Dunn Bros and then leased the space to recoup investment. Mayor Case reiterated the destination restaurant idea as a celebration of Eden Prairie’s history. Bujold responded that restaurants go through phases and asked how much the City is willing to invest and support that cycle. Bujold said other recommendations such as mini golf, chip and putt course, public pool or lazy river, splash pad, outdoor fitness court, outdoor ice rink, or ice-skating lazy river would all feed into a food use at the Dorenkemper House site. These activities bring visitors to the site, some bring revenue. Narayanan asked if this would be a multi-use site. Bujold answered that she recommends considering the site being multi-use. Narayanan stated he would be more likely to get ice cream if he was also visiting something else on the site. Bujold said if there are more activities for visitors on-site, there is more of an opportunity for them to include food as a part of their trip. Mayor Case asked about the long-term plan for the Dorenkemper House. In the 1990’s it was going to be a living, working farm and there was excitement around that. Case noted he would not want to do anything that destroys the land and noted that various aspects of the surrounding area how could change use in the future. Mayor Case suggested tasking the Heritage Preservation Commission (HPC) with identifying a long-term plan. If a framework could be developed, the site could be brought to the attention of the business community for potential input. Mayor Case said there would be criteria in place for public access and building preservation but there would need to be utilities and a master plan. City Council Workshop Minutes November 1, 2022 Page 5 Councilmember Mark Freiberg asked Parks and Recreation Director Jay Lotthammer how much vacant land was at the site. Lotthammer answered 1.7 acres. Lotthammer added in the last ten to twenty years, the emphasis has been on showcasing and making good use of the Riley Barn. The Riley Barn is the anchor, the houses are anchors so we need to consider parking. There have been conversations about getting Riley Barn users to also visit and appreciate to Dorenkemper House. Lotthammer noted anything larger at the site would require part of the vacant land to be turned into parking. Lotthammer also noted examples of other cities entering the restaurant business and recommended Minneapolis, Brooklyn Park and Edina examples be explored. Nelson asked if the vacant land area was large enough for pickleball courts. Bujold answered the area could support pickleball courts, but parking availability is one of the biggest challenges. Lotthammer noted the importance of the integrity of the site. Pickleball or mini golf could take away from the quiet enjoyment and use of a historical site. Nelson suggested the land be used as a community garden. Lotthammer said a farmers’ market may be a good option for the site. Nelson added tours of the Dorenkemper House could be offered during a farmers’ market which would highlight the history. A farmers’ market may not bring a lot of revenue, but Eden Prairie is one of the few suburbs without a farmers’ market. Narayanan said a fundamental question is whether to preserve the site or augment the site. If the site is going to be changed, he supports Mayor Case’s idea of putting it out to businesses. Mayor Case reiterated clarifying the long-term plan for the site and input from the HPC. Mayor case noted Smith Coffee is more preserved because it is located on its original site and the addition could be removed in the future to restore it to its original state. Once the Dorenkemper House was moved, some historical value was lost. It is helpful to understand options, commercial use is more likely at this time. Mayor Case stated that getting utilities to the site is a priority. Toomey stated she liked the idea of a farmers’ market. Narayanan asked what kind of waste is generated from a farmers’ market. Mayor Case said the HPC could look at next steps. II. ENTRY MONUMENT SIGNS Nelson inquired about the absence of green on the bottom of the sign and water. Getschow responded there are variations in the signs and noted plantings existing around the signs. City Council Workshop Minutes November 1, 2022 Page 6 Community Development Director Julie Klima opened the presentation with background on the entry monument signs dating back to 2013. Klima explained a consultant was brought in to identify sites, design the monuments, and develop an implementation plan. Six priority sites were selected, three signs have been installed to date. The three installed signs are located at State Highway 5 and Dell Road, Anderson Lakes Parkway, and westbound I-494. The proposed eastbound US Highway 212 location has been eliminated due to access concerns from the MnDOT. An alternative sign has been designed for the Three Rivers pedestrian bridge railing over eastbound US Highway 212. Klima presented a mockup to the group and noted installation would take place in late 2022 or early 2023. Klima continued to explain the remaining two signs and the cost. The two sites have geographical challenges, and high cost associated so alternative options are being explored. The original eastbound I-494 monument location would require a reduction in signa and retaining walls due to MnDOT right of way specifications. Staff recommends exploring an alternative placement site at the Valley View Road bridge, similar to the eastbound US Highway 212 design. The installation cost at this site would be lower. Mayor Case said the I-494 sign would be the most prominent sign as you enter Eden Prairie and asked what would be needed to further explore the site for a sign. Klima answered there would have to be an overall reduction in size of the sign. Nelson asked if the light rail would be around that area and Mayor Case answered yes. Mayor Case noted the sign would be seen by more cars per day than any other sign. Director of Public Works Robert Ellis said it was probably the most trafficked roadway and the limit for signs was 250 square feet. The site is difficult because of a steep hill which requires a large retaining wall that would be 250 square feet already. Mayor Case inquired about the sign near the Vikings building. Ellis explained details of the sites and noted the scale of the presented rendering isn’t entirely accurate. Nelson commented on a size reduction for birds on the signage. Toomey and Nelson suggested changing the design of the birds. Mayor Case said we have a consistent brand already. Klima presented Shady Oak Road Bridge as an alternative location for the westbound US Highway 212 sign. This location would have a reduced installation cost. Klima moved to discuss the Town Center Plaza and Flying Red Horse Monument project. Klima noted this project is a CIP project. $100,000 was allotted as a placeholder, the actual cost projections are closer to $200,000. Klima recommended looking into alternative sites for the entry monument signs and redistributing savings from that project to the Town Center Plaza project. Mayor Case directed staff to continue to explore options for the I-494 sign and the alternative location of the Shady Oak Bridge. Open Podium - Council Chamber (6:30) City Council Workshop Minutes November 1, 2022 Page 7 II. OPEN PODIUM III. ADJOURNMENT Minutes submitted by Dana Swanson, Facilities Coordinator.