HomeMy WebLinkAboutIV.C - Property Sale Discussion - Siewert
HEDRA Memorandum To: HEDRA
From: John Hinzman, Community Development Director Date: November 12, 2020 Item: Discuss Potential Sale of Property - Parking Lot - 317 East 3rd Street - Luke Siewert
REQUEST:
Luke Siewert seeks to acquire the HEDRA owned parking lot at the northwest corner of 3rd and Tyler Streets. The site would be combined with property owned by Siewert located immediately west of the property. The properties would be combined into a 0.42 acre parcel for construction of a four story building containing 36 apartments (3 stories of apartments
over a first floor parking garage.
The Commission is asked to provide general comments and direction on a sale and development of HEDRA property. No formal action is required.
BACKGROUND INFORMATION: Subject Property: The 0.21 acre (9,234 s.f.) property is located at the northwest corner of 3rd and Tyler Streets and contains an 18 stall parking lot. The property is valued at $59,800 ($54,000 land +
$5,800 improvements) Development Concept: Four story apartment building (41’ 10” in height). First floor containing 31 covered parking spaces and 14 exterior parking spaces. The remaining three floors containing 12
apartment units per floor (36 units total) consisting of 27 one bedroom units and 9 two
bedroom units. At grade exterior parking in the southwestern quarter of the lot, with the building occupying the remaining lot. History:
The property was acquired by the HRA in 1985 for $51,000. A home on the property
was subsequently sold and removed by the HRA. The property was developed into a parking lot shortly after. As part of the Mississippi Terrace Senior Development by Dakota County CDA in 1992, the City allowed the parking lot to be used to meet minimum parking requirements for the building. In 2014 HEDRA granted conceptual
plan approval to Robert Pakola to develop four, two unit buildings (8 units total) on the
subject property and adjacent western parcel. No further action was taken on Mr. Pakola’s request. Comprehensive Plan Classification: The property is guided for Mixed Use per the 2040 Comprehensive Plan. The proposed use
as an apartment is consistent with the Comprehensive Plan.
Zoning Classification:
The property is zoned C-3 - Community Regional Commerce. The property would need to be
rezoned to RMU - Residential Mixed Use to accommodate the request.
Existing Condition: The site is fully developed as an 18 stall parking lot. Adjacent Zoning and Land Use: The following land uses abut the property:
Direction Existing Use Zoning Comp Plan
North Alley Commercial - 2nd Street Depot C-3 - Community Regional Commerce Mixed Use
East Tyler Street Red Rock Commuter Parking Lot (100 stalls)
C-3 - Community Regional Commerce Mixed Use
South 3rd Street Mississippi Terrace Senior Housing
RMU - Residential Mixed Use Mixed Use
West Residential - Duplex owned by Siewert C-3 - Community Regional Commerce Mixed Use
ANALYSIS:
Development of housing on the site is consistent with City plans and zoning; however, the amount of development appears too great for the site. The following would need to be resolved prior to any further action or sale of the site:
• Site is overdeveloped. The proposal is comparable to the Artspace Lofts building, but developed on 1/3rd of the space. Developer proposes 36 units on 0.42 acres. Artspace contains 37 units on 1.27 acres. Past development proposals for the site were significantly less.
• Denser than the Downtown Property Use Study. The draft Downtown Property Use Study contemplates development of either a three story residential building or row townhouse on the site.
• Parking does meet minimum requirements. Multi-family housing requires two
off-street parking spaces per unit the developer proposed to provide 1.25 spaces per unit. The proposed apartment parking ratio is significantly lower than any
other approval granted in at least 20 years. Staff would not support a variance of this significance. Ten of the proposed parking spaces are designated as “compact parking” spaces which are one foot narrower than the standards nine foot stall.
Any slight modification in building layout could eliminate parking spaces; the building density does not leave much room for building modifications or reductions.
• No four story residential buildings in downtown. The building would be taller
than the 3 story Artspace building. The adjacent Dakota CDA Senior Building is 2-3 stories with a taller gabled roof.
• Minimum setbacks on the north and west sides are deficient. The RMU District requires setbacks of 21 feet and 10.5 feet, respectively. Both sides are
five feet from the property line. A variance would be needed, and may be
supported by staff.
• At grade parking garage must be must be well designed to prevent a stark wall appearance. Since the parking garage will be located within feet of the
sidewalk, its appearance must be highly detailed, similar to a residential unit.
• Architectural elevations must be consistent with Heart of Hastings Plan. Per the RMU zoning district.
• Rearrange building placement - Place surface parking at the northwest quadrant
(adjacent to the alley) with the building lining all of 3rd and Tyler Streets.
• Existing parking lot is utilized. According to the 2017 Downtown Parking Survey, the existing 18 stall parking lot is 50-75% occupied from 9-5 on weekdays. The lot is adjacent to a larger 100 stall Red Rock Commuter Parking
lot which presently has capacity to handle the removed spaces.
• Market rate sale - A market rate should be established for any transfer of the property to ensure HEDRA recoups on its investment. The currently county assessed value is $59,800 ($6.48 per s.f.). ATTACHMENT:
• Location Map
• Concept Plans
LOCATION MAP
Subject Property
Property owned by Siewert