TOD Toolkit:TOD potential at the Hi-Lake

Station along Hiawatha Corridor

Developed by

Support from

WORKING DRAFT

Twin Cities Regional Transit Vision

Hiawatha Light Rail Corridor

● By 2030, between 110,000 – 124,000 Twin Cities’ households will have a potential demand for living near transit (roughly 6% of region’s households)

● Nationally, demand for housing near transit could double to over 15 million households.

● Household size is shrinking, with singles and couples without children being the new majority.

● 49% of the households with a potential demand for living near transit qualify as Low Income

● 4,000-9,000 new housing units could potentially be located on underutilized sites in the Hiawatha corridor to accommodate projected future demand

Demand for Housing Near Transit

● As of December 2006, 11,931 housing units and 1,054,436 square feet of commercial space have been built, are under construction, planned or proposed within a half mile of the 17 stations.

● 7,000 units of housing have already been either proposed or built within a half mile of the Hiawatha Line since 2000.

● The majority of these projects, (65 out of 108 total projects and 45 out of 72 residential and mixed use/residential projects), are within the half-mile areas surrounding the four Downtown stations

● Transit investment has leveraged higher-density TOD in historic industrial areas

● “Hot Market” for Downtown station areasRecent Planned and Proposed Development, since 2003

Tremendous Development Response in Last 3 Yrs.

Courtesy Metropolitan Council

● Corridor has a median household income of $31,000, versus $54,000 for region

● Only 37% of units are owner-occupied (versus 70% for the region) creating potential for displacement

● Out of 72 new residential projects since 2003, only 25% (18) are affordable or mixed income

Residential Development along

Hiawatha since 2003

Need to Ensure Long-Term Affordability

● Variety of distinct land uses and development types

● Civic uses (i.e. airport, VA Hospital, Fort Snelling) dominate the corridor at 54% of total land uses and limit redevelopment potential

● Multiple funding sources and jurisdictions, including Federal, impede coordination

Land Constraints in the Corridor

● Little coordination of housing and transit policies have resulted in missed opportunities

● 504 underutilized acres identified as potential redevelopment sites along the corridor

● Many new development projects outside downtown are smaller infill projects and not the larger “catalytic” projects necessary to promote a rider-transit link

Lessons & Opportunities

● Located roughly mid-point on the Hiawatha line, divided by transportation infrastructure, with a number of large underutilized sites. The majority of households are low-income (median income in 1999 of only $23,342) and transit-dependent.

● Available sites are being bought up by speculators or developers building small projects that are not making highest and best use of property near the station.

● Plans for improvements and connections are now in place or moving forward but better coordination during initial planning and design would have ensured critical development.

2001 preferred concept

Station Example: Hiawatha and Lake Street

¼-mile and ½-mile radius around Hi-Lake station Station area plan developed in 2001

Corcoran Midtown Revival Plan

Yield Analysis Site

Selected Area for Yield Analysis Development Scenarios

Yield Analysis: Two Strategies Tested

1) Critical Mass/ Master Developer Approach

Single developer creates plan, obtains entitlements, prepares site, then sells for development of may develop some or all of site

2) Transit-Oriented Development Parking Ratios

Assumes fewer parking spaces to help reduce costs and improve affordabilty

Yield Analysis: Results of 3 Scenarios

Scenario 1: Keep Existing Office

A - Commercial

Existing Office Bldg - 55,200 SF

Freestanding Retail - 12,500 SF

Retail Plaza & Open Space

B - 4-Story Residential

Condos or Apts - 190 units

C - Rowhouses

52 Units + New Street

Scenario 2: Higher Density Mixed Use & Residential

A - 6-Story Mixed-Use Building

Condos or Apts - 144 units

Retail - 10,800 SF

Ground Level Office - 8400 SF

Retail Plaza

B - 4- Story Residential

Condos or Apts - 141 units

Park

C - Rowhouses

56 Units + New Street

Option 3 – 4 story mixed use & rowhouses

A - 4-Story Mixed-Use

Condos or Apts - 192 units

Retail - 10,800 SF

Ground Level Office - 84,00 SF

Day Care - 4,500 SF

Retail Plaza

Park

B - Rowhouses

77 Units + New Street

Key Hard Cost Assumptions

Revenue Assumptions

• Condominiums: Average $250 per SF or $236,000 per Unit (946 Net SF)Note: Lower Value for Apartments

• Row Houses: Average $225 per SF or $360,000 per Unit (1,600 Net SF)

• Retail & Office: $1.25 per SF/Mo. triple net

Preliminary Findings

• In the current market, development on the site would not generate enough value to pay to relocate the school district activities

• Lower-density development is more financially feasible in the short-term

• Over the longer term, higher densities may be possible, but timing will depend on the housing market and construction costs

Implications for Implementation

• A master developer approach is not a good idea at this site currently– current market conditions are not conducive to desired type of development– inability to assemble the land and wait to develop it later

• A “pioneering” project on the MnDOt site could help to increase development potential

Next Steps

• Generate a Master Plan for the site– Include flexibility to maintain

existing office building

• Continue dialogue with the School District about future development options

• Monitor market conditions vis-à-vis timing of RFP for development of MinnDot site