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D-5. Key Financial Strategy: Downtown Focus UpdateMEMORANDUM CITY OF CHANHASSEN Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow TO: Todd Gerhardt, City Manager FROM: Kate Aanenson, AICP, Community Development Director DATE: June 12, 2016 64( SUBJ: Key Financial Strategy — Downtown Focus Update KEY FINANCIAL STRATEGY — ENHANCE LOCAL TAX BASE Enhance the Comprehensive Plan with Current Goals and Policies, and Assess the Impact: • Downtown Focus Update: Provide an update on the current market conditions and downtown vision. BACKGROUND �-J At the May 22, 2017 City Council meeting, the council discussed the Downtown Vision and updated the current market conditions. Staff shared with the council the elements of the 2002 Downtown Vision. Staff also reviewed the number of guiding principles that were competed as a result of this plan. ANALYSIS Bryan Harjes from Hoisington reviewed the proposed Work Program for the update. This includes examining the following: • Existing conditions • Understand and Discuss Future Potential Update Vision o Review demographic and Economic Trends o Buildout Analysis by Real Estate Type • Vision Concept Alternatives • Select Downtown Preference • Prepare Final Vision The study is proposed to be completed in 3-4 weeks at a cost not to exceed $42,550. Attached is the Planning Services Agreement as well as the detailed Work Program. PH 952.227.1100 • www.d.chanhassen.mn.us • FX952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 Todd Gerhardt Downtown Vision June 12, 2017 Page 2 RECOMMENDATION Staff recommends that the City Council approve the Agreement for Planning Services for the Updating of the Chanhassen Downtown Vision Plan and Attachment A- Work Program ATTACHMENTS 1. Agreement for Planning Services for the Updating of the Chanhassen Downtown Vision Plan. 2. Attachment A — Work Program. 3. May 22, 2017 City Council Work Session Minutes. glplan\downtown vision 2017\cc cover memo 6-12-17.doc Creating Places that Enrich People's Lives ©© Hoisington Koegler Group Inc. Kin June 1, 2017 Ms. Kate Aanenson Community Development Director City of Chanhassen 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317-0147 Subject. Agreement for Planning Services for the Updating of the Chanhassen Downtown Vision Plan Dear Ms. Aanenson: This letter outlines a Scope of Services, Fee Schedule and other elements which together constitute an agreement between the City of Chanhassen, hereinafter referred to as the CLIENT, and Hoisington Koegler Group Inc., hereinafter referred to as the CONSULTANT for planning services for the updating the Chanhassen Downtown Vision Plan, hereinafter referred to as the PROJECT. The CLIENT and CONSULTANT agree as set forth below: A. BASIC SERVICES The CONSULTANT'S basic services for the PROJECT are as provided in Attachment A Work Program. B. ADDITIONAL SERVICES The CONSULTANT and the CLIENT may agree in writing to amend this Contract for additional services related to the PROJECT and compensation for such services. The following services have not been requested by the CLIENT but are available upon written authorization. 1. Meetings in addition to those specified in Attachment A. 2. Services or Deliverables not specifically identified in Attachment A. C. FEES FOR PROFESSIONAL SERVICES The CONSULTANT agrees to complete the scope of work contained in Attachment A in exchange for professional fee compensation as noted below. The CLIENT agrees to pay the CONSULTANT for PROJECT services rendered as follows: 1. For the CONSULTANT'S Basic Services described in Attachment A, a fee based on the CONSULTANT'S current hourly rate schedule (see Attachment B) not -to -exceed $42,550.00 including expenses. 123 North Third Street, Suite 100, Minneapolis, MN 55401-1659 Ph(612)338-0800 Fx (612) 338-6838 Chanhassen Downtown Vision Plan Update June 2, 1017 Page 2 2. For the CONSULTANT'S Additional Services described in Paragraph B above, a fee based on the CONSULTANT'S current hourly rate schedule plus incidental expenses or a negotiated fee. 3. Invoices will be submitted electronically (PDF form) to the CLIENT via email on a monthly basis as work is completed and shall be payable within 30 days in accordance with this Agreement. 4. The CONSULTANT reserves the right to suspend services if the CLIENT is delinquent in making payments in accordance with this Agreement. D. CLIENT'S RESPONSIBILITY The CLIENT shall be responsible for the following: 1. Assembly of background information including, but not limited to digital copies of all files, pertinent plans, aerial photographs, base maps, inventory data, available GIS mapping, limited to those that are reasonably available. 2. Arrangements and notification for public meetings. 3. Reproduction and distribution of Project reports. 4. Participation in team workshops as needed. 5. All tasks identified in Attachment A as being the responsibility of the City of Chanhassen. E. INSURANCE CONSULTANT shall maintain insurance of the kind and in the amounts shown below for the life of the contract. Certificates for General Liability Insurance must state that the CLIENT, its officials, employees, agents and representatives are Additional Insureds on a primary and non-contributory basis. The CLIENT shall be provided a certificate of insurance prior to the CONSULTANT commencing work. The CLIENT reserves the right to review CONSULTANT's insurance policies at any time to verify that contractual requirements have been met. 1. Commercial General Liability Insurance $2,000,000 per occurrence $3,000,000 general aggregate $300,000 damage to rented premises $15,000 medical expenses 2. Umbrella Liability $1,000,000 per occurrence $1,000,000 general aggregate $10,000 self-insured retention Chanhassen Downtown Vision Plan Update June 2, 2017 Page 3 3. Worker's Compensation and Employer's Liability a. Worker's Compensation per Minnesota Statutes b. Employer's Liability $500,000 per accident; $500,000 per employee; $500,000 per disease policy limit 4. Professional Liability Insurance $2,000,000 per claim $4,000,000 annual aggregate F. COMPLETION SCHEDULE The services of the CONSULTANT will begin upon CLIENT approval and will, absent of causes beyond the control of the CONSULTANT, be completed within five months of the date of the signature of this contract. G. SUB -CONSULTANTS Not sub -consultants are anticipated for the completion of the project work tasks. The CONSULTANT shall not add any Sub -Consultants without written consent from the CLIENT. H. NONDISCRIMINATION The CONSULTANT agrees not to discriminate by reason of age, race, religion, color, sex, national origin, or handicap unrelated to the duties of a position, of applicants for employment or employees as to terms of employment, promotion, demotion or transfer, recruitment, layoff or termination, compensation, selection for training, or participation in recreational and educational activities. I. EQUAL OPPORTUNITY During the performance of this Contract, the CONSULTANT, in compliance with Executive Order 11246, as amended by Executive Order 11375 and Department of Labor regulations 41 CFR Part 60, shall not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CONSULTANT shall take affirmative action to insure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, transfer; recruitment or recruitment advertising; layoff or termination, rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONSULTANT shall post in conspicuous places available to employees and applicants for employment notices to be provided by the Government setting forth the provisions of this nondiscrimination clause. The CONSULTANT shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The CONSULTANT shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. Chanhassen Downtown Vision Plan Update June 2, 2017 Page 4 J. INDEMNIFICATION CONSULTANT agrees to indemnify and hold CLIENT harmless, and its officers, employees, agents, and representatives, from and against liability for all claims, losses, damages, and expenses, including reasonable attorney's fees, to the extent such claims, losses, damages or expenses are caused by the indemnifying party's negligent acts, errors, or omissions. In the event claims, losses, damages or expenses are caused by the joint or concurrent negligence of the CLIENT and CONSULTANT, they shall be borne by each party in proportion to its negligence K. TERM, TERMINATION, SUCCESSORS AND/OR ASSIGNS 1. The Term of this Agreement shall be concurrent with the work authorized and shall be in accordance with the schedule to be established between the CLIENT and the CONSULTANT. 2. Either party may terminate this Agreement by written notice to the other party at its address by certified mail at least ten (10) days prior to the date of termination. 3. Neither the CLIENT nor the CONSULTANT shall assign, sublet or transfer its interest in this Agreement without the written consent of the other. 4. The time schedule shall not apply and/or time extensions will be allowed for any circumstances beyond the control of the CONSULTANT. 5. This Agreement shall be governed by all applicable laws. 6. Upon termination, Consultant shall be entitled to fees earned through the effective date of termination. L. If this agreement is not signed and accepted by both parties within 90 days of the contract date, it shall become null and void. M. AUTHORIZATION IN WITNESS WHEREOF, The CLIENT and the CONSULTANT have made and executed this Agreement for Professional Services, This day of 2017 Chanhassen Downtown Vision Plan Update June 1, 1017 Page 5 CLIENT City of Chanhassen Denny Laufenburger, Mayor Todd Gerhardt, City Manager CONSULTANT Hoisington Koegler Group Inc. R. Mark Koegler, CEO Attachment A - Chanhassen Downtown Vision Plan Update June 2, 2017 Page 1 Attachment A - Work Program Downtown Chanhassen Vision Plan Update Updating Chanhassen's Downtown Vision Plan is a collaborative effort involving HKGi and staff from the City. Responsibilities for completing specific tasks are as noted per the key below in the various tasks that follow. Key: Bold and underlined tasks to be completed by HKG1. Items not noted in bold and underlined type are the responsibility of the City of Chanhassen. Task 1 - Examine Existing Conditions 1-1. Assemble background data and base mapping 1-2. Prepare existing conditions diagram/graphics— buildings; pedestrian, bicvcle and vehicle circulation; parking; access points; etc. 1-3. Prepare a summary of existing regulatory guidance — uses, setbacks, parking requirements, access, etc. 1-4. Prepare a summary of existing policy guidance 1-5. Prepare a summary of proposed and pending developments 1-6. Meetings with City Staff to coordinate Task 1 work activities Task 2 - Understand and Discuss Future Potential and Update Vision 2-1. Prepare market scan HKGi will complete a scan of local market conditions and projections, to support the creation of preliminary and preferred planning concepts for the new "Vision" for Downtown Chanhassen, for the next 15 years. The market scan will review existing demographic and economic conditions in Downtown Chanhassen and the surrounding local market area and will outline a build -out analysis, identifying the various marketable development components for the Downtown district over the next 15 years. Review of Demographic and Economic Trends The market scan will identify the existing demographic trends in Chanhassen and the surrounding market area (in terms of population growth, household growth and change, and employment), drawing from information gathered from the City of Chanhassen, Metropolitan Council, nearby municipalities, and other data sources. The scan will identify how the population and household compositions of different age groups in the local area have changed over the last ten years, and how they may continue to change over the next 15 years. It will document trends in household income, educational attainment, and other demographic Attachment A - Chanhassen Downtown Vision Plan Update June 2, 2017 Page 2 information. The market scan will discuss how the anticipated demographic trends in the Chanhassen area align with, or differ from, anticipated trends in the Twin Cities region, and the west metro area, with regard to population, households, and other related metrics. The market scan will document existing market conditions in Downtown Chanhassen and in other key districts in Chanhassen and the surrounding local market area (including the Highway 5 corridor, Highway 212 corridor, etc.) in terms of residential, retail, and office land uses. It will document existing conditions with regard to various densities and multi -family product types, and will outline the current performance of Downtown and competing districts with regard to retail and office space. Data from ESRI, Costar, and local real estate brokers, along with discussions with local real estate owners/operators, will inform this review of existing market conditions. The market scan will identify projects currently planned, or under construction, in the local market area in terms of retail, residential, and office development (including, but not limited to, the potential Avienda development in southern Chanhassen). Build -Out Analysis by Real Estate Type for Downtown Chanhassen Drawing from the existing conditions analyses and projections of demographic growth and change in the Chanhassen area over the next 15 years, the market scan will provide projections of supportable retail, office, and residential development for Downtown over the next 15 years. The market scan will identify the general ranges of supportable square footage (or number of units) in Downtown and will provide information concerning the likely format of new development (in terms of likely tenants, forms of development, etc.). The market scan will not provide a detailed development program as part of this process, but will provide guidance concerning the overall scale and type of development likely to proceed in the Downtown Chanhassen study area over the next 15 years. Drawing from these projections, the market scan will provide inputs for a set of potential development scenarios for different areas within Downtown Chanhassen, that will guide the planning team as it works with the community to shape the recommended "Vision" for Chanhassen's downtown area. Note? The Market Scan Memorandum (anticipated length - 15 to 20 pages) will summarize the findings of the market scan and the key takeaways, in terms of development and build -out recommendations. The memorandum will include a series of tables and maps to convey the various information gathered as part of the exercise. However, this deliverable does not constitute the typical magnitude and scale of documentation associated with a full "Market Study". 2-2. Prepare PowerPoint presentation summarizing market information Attachment A - Chanhassen Downtown Vision Plan Update June 2, 2017 Page 3 2-3. City Council Workshop 2-4. Facilitate Meeting of Key Downtown Property Owners and Tenants 2-5. Meetings with City Staff to coordinate Task 2 work activities Task src.pan- Graft Visictte �crreept ALe r•€ aOv s 3-1. Prepare draft vision concent alternatives — two concepts (diagrammatic land use — commercial, residential, mixed-use, etc.) 3-2. Prepare alternative development concepts - two concepts (narrative and urban design diagrams— parking and building locations; pedestrian, bike and vehicle circulation; parking; and access) 3-3. Assess infrastructure capacities to accommodate development concepts — identify any needed improvements 3-4. City Council Workshop 3-5. Meetings with City Staff during Task 3 to coordinate work activities Task 4 - Converge on a Preferred Downtown Vision Plan 4-1. Prepare preferred downtown vision concept plan 4-2. Outline kev implementation strategies in collaboration with Citv Staff — short, mid and Ion term 4-3. Prepare plan narrative 4-4. City Council Review 4-5. Meetings with City Staff during Task 4 to coordinate work activities Task 5 - Vrepere t~inai Down., own Vision PIasH 5-1. Prepare refinements to Downtown Vision Plan 5-2. Meetings with City Staff during Task 5 to coordinate work activities CHANHASSEN CITY COUNCIL WORK SESSION MAY 22, 2017 Mayor Laufenburger called the work session to order at 5:23 p.m. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilman McDonald, Councilwoman Ryan, and Councilman Campion. Councilwoman Tjomhom arrived prior to the third item on the agenda. STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, and Kate Aanenson PUBLIC PRESENT: Mike Hoagberg 17550 Hemlock Avenue, Lakeville KEY FINANCIAL STRATEGY: REVIEW WORK PLAN FOR DOWNTOWN FOCUS STUDY. Kate Aanenson provided background information on the Chanhassen Vision 2002 process that was done for the downtown area and what needs to be done in the future to strengthen the downtown with expansion occurring in other parts of the city. Bryan Harjes with Hoisington- Koegler Group discussed how the vision plan has worked in the past but the need for it to be updated at this time. He stated the City Council needs to decide how it wants to position the downtown to address market conditions and implement a strategy for moving forward. Kate Aanenson asked Bryan Harjes to discuss the study he's currently doing for Excelsior with the redevelopment of the area around Maynard's and Bayside, explaining the City of Chanhassen is trying to be proactive as opposed to Excelsior who is being reactive. Councilwoman Ryan asked for clarification of the process being used by developers versus an outside market study. Todd Gerhardt explained the difference between developing public versus private property. Bryan Hares explained that the City needs to have a broader view of the downtown versus parcel by parcel. Mayor Laufenburger asked if the Vision 2002 plan has played out as expected and if the downtown area is big enough to support fixture growth. If the area is not big enough, how will future expansion happen. Bryan Harjes explained how the downtown could expand either vertically or south of Highway 5. Mayor Laufenburger suggested staff research "Friendly Fronts". Kate Aanenson explained that the next step will be approving the consultant contract with Hoisington-Koegler. KEY FINANCIAL STRATEGY: SIGNAL LIGHT TIMING: WORK WITH MnDOT ON A COMPREHENSIVE REVIEW OF THE SIGNAL LIGHT TIMING ALONG THE HIGHWAY 5 CORRIDOR. City Council Work Session — May 22, 2017 Paul Oehme explained that the citizens survey had raised concerns with signal timing on Highway 5 before introducing Diane Langenbach with MnDOT. She reviewed the Signal Coordination study and explained how the system operates, how timing can be changed, cycle length, limited green time plan, sequencing of left turns and flashing yellow arrow operations. Todd Gerhardt asked if MnDOT has done a psychological study of drivers waiting at signalized intersections. In discussing the flashing yellow arrows Diane Langenbach discussed how the public needs to be educated on their use to decrease the number of accidents. Todd Gerhardt stated the City will use the MnDOT report as a baseline. Paul Oehme reviewed the analysis done by the City for the Powers Boulevard and 78h Street intersection and discussed the findings for signal phasing and lane assignments. Mayor Laufenburger asked about the funding source for those improvements. Councilwoman Tjornhom arrived at this point in the meeting. DISCUSS 86TH STREET AND HIGHWAY 101 INTERSECTION OPERATIONS IN CONJUNCTION WITH THE MISSION HILLS SENIOR LIVING DEVELOPMENT. Paul Oehme reviewed the traffic study that was done by SRF in July of 2016 which will be used for a capacity analysis before and after the Mission Hills Senior Living development. Councilwoman Ryan asked for clarification on how level of service is determined, turning movement analysis, and questioned the crash data over the past 10 year showing only one crash. She stated her concern with staff monitoring the intersection with Carver County, especially left turns off of 86b onto Highway 101, after the development to see if the intersection warrants improvements. Councilman Campion stated he felt the $135,000 for the median acceleration lane seemed reasonable. Mayor Laufenburger explained that there is no action currently needed by the City Council. Councilwoman Ryan reiterated her concerns with monitoring the intersection after the Mission Hills Senior Living development is constructed. Councilman McDonald noted there were two intersections on Highway 101 north of 86`b Street with the same situation. Mayor Laufenburger adjourned the work session at 7:05 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim