B. Downtown Parking Ramp: Review of Feasibility Study
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.cLchanhassen.mn.us
f3
MEMORANDUM
TO:
Todd Gerhardt, City Manager
Paul Oehme, Dir. of Public Works/City Engineer V 0
FROM:
DATE:
February 23, 2009
r&1f.
SUBJ:
Review Feasibility Study for Downtown Parking Ramp
Project No. 08-11
BACKGROUND
In 2006, Southwest Transit secured $7 million in federal funds to be used for the
construction of a new Park & Ride facility in downtownChanhassen. The new
multi-level ramp could accommodate up to 400 vehicles. Currently, Southwest
Transit operates a one-acre Park & Ride facility (up to 120 vehicles) behind the
Chanhassen Dinner Theatres.
For this projectto move ahead, the City will need to take the lead in providing
access to the new facility. For the past year, representatives from Southwest
Transit, Bloomberg Companies, and City staff have been discussing alternative
locations for the new Park & Ride facility. The criterion used to produce the
preliminary design was as follows:
· Provide for bus and rider access from both the east and west of the
proposed ramp.
· Maximize future development opportuni~ies surrounding the Dinner
Theatres.
· Maximize the number of parking stalls on a minimal amount of land.
. Preserve the current location of the Chanhassen Depot.
Overview of the Proiect
For this project to occur, the City will need to lead the effort to build a new road
to access the facility. The following steps need to be completed for the road to be
built:
. Acquire 22,000 sq. ft. of land for the road right-of-way.
. Acquire the Dinner Theatres' scene shop building.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Todd Gerhardt
Southwest Transit Park & Ride Facility
February 23,2009
Page 2
. Relocate the scene shop to a new location.
. Acquire the Chanhassen Depot land.
. Upgrade and relocate utilities including sewer, water, gas and electricity.
SUMMARY OF FEASIBILITY REPORT
The project includes the construction of public roadway and utility improvements to support the
proposed construction of up to a 400-car parking ramp/transit station for Southwest Transit; this
is down from the original 500 stalls that were proposed last summer. By reducing the number of
stalls, Southwest Transit was able to re-allocate the dollars saved to the increased costs in the
road construction. However, Southwest Transit must show those 100 stalls that were reduced
somewhere else in the community and staff is recommending the South Parking Lot at Lake
Ann.
The public improvements are proposed to be constructed in two phases. Phase 1 will include the
demolition of the existing scene shop building for the Dinner Theater and a bus stop enclosure,
sanitary sewer relocation, and watermain improvements to prepare for the construction of the
parking ramp/transit station. Phase 2 will include street and storm drainage improvements in
conjunction with the construction of the transit station.
The estimated costs for the proposed improvements are detailed below. These costs include a 10
percent (10%) construction cost contingency and a 30 percent (30%) allowance for indirect costs.
Prouosed Imurovements Estimated Cost
Phase 1 Improvement
. Building Demolition $ 51,500
. Sanitary Sewer Relocation $ 52,800
. Watermain Relocation $ 77 .500
Subtotal $ 181,800
Phase 2 Improvements
. Street Improvements $ 704,300
. Storm Sewer Improvements $ 88.100
Subtotal $ 792,400
Land Acquisition Costs
. Depot Station Site $ 133,660
. Street Right-of-Way $ 400,000
. Acquisition of Scene Shop $ 300,000
. Scene Shop Relocation $ 100,000
Subtotal $ 933,660
Total Project Cost $ 1,907,860
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Todd Gerhardt
Southwest Transit Park & Ride Facility
February 23, 2009
Page 3
The improvements are proposed to be financed through a combination of assessments to
benefiting property owners and City funds. The following is a summary of the proposed
financing plan for the project.
Financin!! Source
Assessments
Bloomberg Companies
Southwest Transit
Total Assessments
City of Chanhassen Costs
Total
Amount
$ 787,640
$ 756.260
$ 1,543,900
$ 363,960
$ 1,907,860
The proposed financing plan has been prepared based on the following criteria:
. Bloomberg Companies is assessed 51 % ofthe street right-of-way and scene shop acquisition,
building demolition, street, and storm sewer costs.
. Southwest Transit is assessed 49% of the street right-of-way and scene shop acquisition,
building demolition, street, and storm sewer costs.
. City of Chanhassen pays 100% of the costs for depot station site acquisition, the scene shop
relocation, and the sanitary sewer and watermain improvements.
. All land acquisition costs assume a value of approximately $8.20/square foot.
Funding for the City share of the project would come from several sources:
Sanitary Sewer Utility Fund
Water Utility Fund
Revolving Assessment Fund
Total
$ 52,800
$ 77,500
$ 233,360
$ 363,960
HOW DOES THIS REDEVELOPMENT WORK?
Both Southwest Transit and Bloomberg Companies have agreed to be assessed for all of the
roadway costs including all of the land acquisitions (with the exception of the Chanhassen Depot
parcel, which would be the responsibility of the City ofChanhassen). The only exceptions are
that the City would pick-up the relocation costs for the scene shop and the outstanding
assessments for Bloomberg if they bring in new developments that enhance the current tax base
for parcels owned by Bloomberg Companies. The remaining property around the Park & Ride
facility could potentially accommodate an apartment, retail/offices, and/or a hotel. For this to
occur, the City and Bloomberg Companies would have to enter into a Master Redevelopment
Agreement assuring Bloomberg Companies that the City would create a tax increment financing
(TIF) district. To the degree that new taxes are generated from the TIF district, they would be
used to write-down the special assessments for the new roadway. Staff is proposing to limit the
G:\ENGIPUBLIC\_ 2008 Projects\08-11 downtown transit site imp\022309 ws update dt parknride.doc
Todd Gerhardt
Southwest Transit Park & Ride Facility
February 23,2009
Page 4
amount of TIF to ten years. If Bloomberg Companies do not enhance the tax base with new
developments, they will be responsible for 100% of the assessments. Staff would bring back a
Master Redevelopment Agreement to the City Council in May, 2009 for City Council/EDA
consideration. Staff is looking for feedback from the City Council regarding the proposed
changes to the new Southwest Station Park & Ride.
The following is a preliminary schedule for the implementation of the project:
City Council Receives Feasibility Study and Report
and Authorizes Preparation of Plans & Specifications
Public Hearing
Phase 1 Improvement
City Council Approves Final Plans and Specifications
and Authorizes Ad for Bids
Bid Opening
City Council Awards Contract
Start Construction
Complete Construction
Phase 2 Improvements
City Council Approves Final Plans and Specifications
and Authorizes Ad for Bids
Bid Opening
City Council A wards Contract
Start Construction
Complete Construction
March 9,2009
March 23, 2009
April 27, 2009
May 29,2009
June 8, 2009
June 22, 2009
August 14,2009
January, 2010
February, 2010
March, 2010
June, 2010
August, 2010
The final schedule for the public improvements will be coordinated with the construction of the
parking ramp/transit station and may change from the dates listed above.
Attachments: 1. Site Plan for the New Ramp and Roadway.
2. Map indicating Southwest Transit's existing Park & Ride Easement Area,
Property Owned by Bloomberg Companies, and Potential TIF District.
3. CIP Page
c: Jon Horn, Kimley-Hom & Associates, Inc.
G:\ENGIPUBLICI_ 2008 Projectsl08-11 downtown transit site impl022309 ws update dt parknride.doc
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Capital Improvement Program 2009 thru 2013 Contact Paul Oehme
City of Chanhassen, MN Department Street hnprovements I
Project # ST-021 Type Improvement
Useful Life I
Project Name Downtown Transit Station Site Imp Category Streets/Highways
Account # 1 Account # 3 Priority n/a
Account #2 Total Project Cost $1,845,000 I
Description I
This project is a partnership between the City, Southwest Transit and private property owners. The project will relocate sewer and water utilities in I
the area and construct a public road for the preparation of a new 500 stall parking ramp. The street and right of way will be assessed back to the
. benefiting property owners and the City will need to relocate its' public utilities. The scene shop on the property will need to be demolished and
relocated.
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Justification I
These improvements are necessary to facilitate a new 500 stall parking ramp proposed to be built south of the Chanhassen Dinner Theater. I
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Expenditures 2009 2010 2011 2012 2013 Total I
Construction 1,845,000 1,845,000
Total 1,845,000 1,845,000
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Funding Sources 2009 2010 2011 2012 2013 Total
AssessmentlRevolving Assess 144,000 144,000 I
Developer Assessments 1,570,000 1,570,000
Sewer Utility Fund 53,000 53,000
Water Utility Fund 78,000 78,000 I
Total 1,845,000 1,845,000
Operational Impact/Other I I
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