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HomeMy WebLinkAboutCity Council - 03/18/2025 - WorkshopApproved Minutes Eden Prairie City Council Workshop 5:30 p.m. Tuesday, Mar. 18, 2025 City Center Heritage Rooms, Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staff: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Sara Potter MEETING AGENDA Heritage Rooms I. Development Projects Update Getschow noted the Council is presented with development opportunity sites annually. Klima explained when a project proposal is received, a “Proposed Development Project Site” sign is installed at the site. The signs have a QR code that directs to the development dashboard. The development projects map can be sorted by location, project type, and status. Users can find contact information, site plans, renderings, and staff reports. Case asked if neighbors receive a mailed notice. Klima confirmed the City notifies neighbors within 500 feet and will extend the radius for projects with a high neighborhood interest. Case agreed it is better to notify more neighbors than less. Klima stated there is one pending development agreement for the Chestnut Townhomes project east of Anderson Lakes Parkway. This is a vacant property with 66 townhome units proposed. Case asked for the acreage of the project. Klima confirmed the lot is 5.7 acres. Klima noted the Danfoss property was recently listed for sale. The lot is 60 acres and includes four buildings. This much acreage is not frequently available. It is zoned industrial and office, the City would support a mixed use type of development including commercial, multifamily, and destination entertainment. Case noted the lot could potentially be purchased and retrofit by CITY COUNCIL MEETING AGENDA September 03, 2024 Page 2 another industrial company. This property, combined with the vacant ADC/Optum Campus, is 120 acres in the center of town. It could potentially be a trail area like Centennial Lakes. Klima confirmed there may be value in retrofitting the building in lieu of leveling it. Toomey asked if environmental remediation needs to occur. Klima confirmed an environmental analysis would be performed, it is likely some remediation would be necessary. Toomey asked what will happen to the water tower. Ellis confirmed it is functional. The City may purchase the well and water tower if it has been maintained. Ellis stated the utilities, streets, and park maintenance divisions are facing space challenges. Existing buildings are out of capacity to store necessary equipment. Expanding the Maintenance Facility or the Water Treatment Plant is challenging due to surrounding wetlands, properties, and highway 212. One of the Danfoss parcels has a building with industrial, warehouse, and office space on two acres. Purchasing the building could solve the space challenges. It neighbors the Maintenance Facility and City Center. Case asked if Danfoss is marketing the building separately from the rest of the campus. Klima confirmed the building is on a standalone parcel and could be easily separated. Toomey asked if the City would need to remodel the building. Ellis confirmed the building is ready as is for immediate use and would be significantly cheaper than constructing new. The Council indicated they are in support of the City purchasing the Danfoss parcel. Klima noted the owner of the Eden Prairie Center is planning to redevelop the north end of the mall. JCPenny would be demolished and the amount of retail space would be reduced. The redevelopment would include hotel, multifamily residential, commercial, and office uses. The concept is consistent with the comprehensive plan as it is guided for mixed use. The City is pursuing Tax Increment Financing (TIF) legislation to support redevelopment. Case asked if the City had considered using tax abatements. Klima confirmed the City will explore all options once staff learns more about the project and its financial realities. Case stated the City should encourage solar on the new building. It could be larger than the Community Center solar garden. Klima confirmed the City is sharing priorities for sustainability and affordable housing with the developer. Narayanan asked if the mall has multiple owners. Klima confirmed Target, Kohls, Scheels, and Von Maur own their own properties, one party owns CITY COUNCIL MEETING AGENDA September 03, 2024 Page 3 the remainder. Narayanan asked how many apartment units would be included. Klima stated the concept plan includes 750 units. Toomey asked for the vacancy rate of apartments in the City. Klima noted that information could be compiled, anecdotally apartment vacancy rates are low. Klima explained the existing Marriott Residence Inn on Flying Cloud Drive has been deemed obsolete. Marriott is looking to move the hotel to the former UNFI site off Valley View Road and Highway 494. The concept plan includes a five story, 150 room hotel with a restaurant. The City Council has previously discussed the hotel but has not voted. Case added the Council indicated the land to the north should remain undeveloped due to the number of trees. Case noted the existing Residence Inn could become an affordable housing asset if converted to owner occupied condos. Each unit has a bathroom, kitchenette, and bedroom. Case asked how many units the existing Residence Inn has. Economic Development Manager Dave Lindahl confirmed there are 128 units. Freiberg noted an office building was converted to condos in Minnetonka. Case added converting office buildings to housing is often expensive due to necessary plumbing modifications. Case indicated the City should have affordable housing conversations with Marriott before the buildings are purchased and torn down. Klima added the City can continue conversations once Marriott determines the location of the new hotel. Klima explained there is an 82 thousand square foot building at 6436 City West Parkway. Staff has had conversations about an upcoming proposal to demolish the current building and construct a 200 unit, five story multifamily residential building. This project is in early stages and would require a comprehensive plan amendment. Klima next discussed the Eden Bluff Corporate Center. This building was previously leased by CH Robinson and was vacated in April 2024. The proposal includes a mix of residential uses including single family, senior cooperative, and twin homes. This parcel was previously guided as office and would require a comprehensive plan amendment. Toomey asked the age of the building. Klima confirmed the building was constructed in the early 2000s. Case noted the site would be a good fit for a restaurant as it overlooks the river. Klima next detailed an emerging development site at Flying Cloud Drive and College View Drive. This site is comprised of three parcels totaling four acres. It is zoned industrial and guided medium density residential. No formal applications have been submitted. Concept plans have CITY COUNCIL MEETING AGENDA September 03, 2024 Page 4 been shared proposing multi-family housing for neurodivergent residents. Case asked how many buildings are proposed. Klima confirmed six buildings were included. Klima next detailed a site at 11010 Prairie Lakes Drive, 13 acres of office space north of Lotus Villas. Potential developers are considering keeping the smaller office building to the north and demolishing the larger building for high or medium density residential. Residential use would require a comprehensive plan amendment. Klima explained four office buildings, comprising 420 thousand square feet, have recently converted to residential, school, and industrial uses. Since 2020, eight percent of office square footage has been converted to other uses. If all the office conversion proposals discussed in tonight’s workshop move forward, 15 percent of office space would be converted. A few large office buildings are vacant including the ADC/Optum campus of 450 thousand square feet at 13625 Technology Drive. The City would likely support maintaining an office guiding to balance land use and employment opportunities. Case asked who owned the building. Klima confirmed Optum is leasing the building from a New York owner. Case noted many lessees are partially through a multi-year lease and thus keep making payments though the building is vacant. Toomey asked if the City should reevaluate the office guidance stance as many employees are still working from home. Klima confirmed the City will complete a thorough review of all office properties for the upcoming comprehensive plan process through 2050. Narayanan asked how many units of residential housing would be added if all the projects discussed tonight move forward. Klima confirmed over 1,000 housing units would be added. Klima next summarized potential development sites for the City. There are 36 acres off Technology Drive and Mitchell Road near the Danfoss property and close to public transportation. It is not all developable due to wetlands. It is zoned industrial and guided for office use. Other potential development sites include 6 acres at 6385 Old Shady Oak Road, zoned office and guided for industrial flex tech. The Ingram Property, six acres at 18900 Pioneer Trail, is zoned rural and guided low density residential. There was a development application eight years ago that was withdrawn. Staff has spoken with the owners of the Marshall Farm Stand, 3 acres at Pioneer Trail and Eden Prairie Road, about improvements to the property. It could redevelop in the future. CITY COUNCIL MEETING AGENDA September 03, 2024 Page 5 Klima noted the Life Church properties include eight acres at the intersection of St Andrew Drive and Valley View Road. Staff has received inquiries regarding affordable housing at this location. The owners of Huber Funeral Home, two acres adjacent to Smith Coffee, indicate they may not remain at the location for the foreseeable future. Klima displayed other potential development sites including three properties off Eden Prairie Road zoned rural and guided for low density residential. The Council thanked Klima and staff for their efforts. Council Chambers II. Open Podium III. Adjournment