farmers market plan-the corridor - 11-03-2011

8/3/2019 Farmers Market Plan-The Corridor - 11-03-2011

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Dave Albersman 612-349-2778 Mark Oyaas 612-338-0330 Bruce Lambrecht 612-349-2775

Connecting Regional Sports and Entertainment Through Transit




November 3, 2011

The Honorable Mark DaytonGovernor of Minnesota

130 State Capitol75 Rev. Dr. Martin Luther King Jr. Blvd.

St. Paul, MN 55155

Dear Governor Dayton:

For more than a year a group of interested citizens has been crafting and refining an urban revitalization plan thatincludes a new downtown Minneapolis site for the Vikings stadium, a redevelopment plan for the Metrodome, anexciting vision for what could be on the site of the current building, as well as a proposal for a new structure for financing and operating the region’s sports and entertainment facilities. The Stadium-related events of this past weekalone are ample evidence that we don’t have a system in place to make these important infrastructure decisions; we

have merely established a 55-year-long pattern of bad behavior. This submission is made in hopes that our State’sleaders will fill the void created by the collapse of the proposed funding formulas with a new framework thatrecognizes the potential power of a billion dollar stadium investment and harnesses that power to maximize publicbenefit.

We call our efforts “The Corridor” [www.corridormn.com]. This refers to a concept which leverages current andplanned fixed rail transit to connect the region’s major sports and convention facilities. It speaks to the synergies of asports and entertainment district in Minneapolis utilizing all of the transportation and transit infrastructure the public

has already paid for. From this perspective the plan is a roadmap for recruiting large scale sporting events likesoccer’s Gold Cup or the Pan Am Games. If properly managed a legitimate bid for the Olympics could be in reach.

On a macro level this proposal provides a means to come to grips with the ongoing crisis management thatcontinually clouds efforts to enhance the State’s sports infrastructure. We turn to the Metropolitan AirportsCommission (MAC) as an inspiring model for managing critical public assets and submit the MetropolitanEntertainment Commission (MEC) for your consideration. It is time to get the house in order. Between now and theregularly-scheduled legislative session it would be possible to convene a group of qualified and engaged citizens toform the MEC. They could consider governance, operations and financing options. Additionally this group could act

as an arbiter for site selection.

A MEC offers the opportunity to capture and consolidate the multiplicity of taxes and related publicly-generatedrevenues that could amount to $300 million which could be used toward immediate stadium needs. When combinedwith team owner contributions and other private sector support we submit that it is possible that the State contributionmay be a manageable $200 million. Our assumptions have been vetted by finance professionals from both the publicand pri ate sectors b t the need the scr tin that onl State re en e officials can appl



cc: Rep. Kurt Zellers, Speaker of the House Sen. Amy Koch, Senate Majority Leader Rep. Paul Thissen, Minority Leader Sen. Thomas M. Bakk, Minority Leader

Rep. Morrie Lanning (author) Sen. Julie Rosen (author)

Addresses:

Rep. Kurt Zellers (R) (District 32B)Speaker of the House463 State Office Building

100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155

Rep. Paul Thissen (DFL) (District 63A)House Minority Leader 267 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155

Rep. Morrie Lanning379 State Office Building100 Rev. Dr. Martin Luther King Jr. Blvd.Saint Paul, Minnesota 55155

Sen. Amy KochSenate Majority Leader 75 Rev. Dr. Martin Luther King Jr. Blvd.Capitol Building, Room 208St. Paul, MN 55155-1606

Senator Thomas M. BakkSenate Minority Leader 100 Rev. Dr. Martin Luther King Jr. Blvd.

State Office Building, Room 147St. Paul, MN 55155-1206

Sen. Julie Rosen75 Rev. Dr. Martin Luther King Jr. Blvd.Capitol Building, Room 322St P l MN55155 1606



Billion Dollar Investment

Maximize Public Benefit



Target Field RevisitedThe “Corridor”

Why Farmer’s Market?

MetrodomeMedical Campus

The “MEC” (Metropolitan Entertainment Commission)



“Site too small and next to garbage burner”



Rapid Park ‐ 1999Rapid Park ‐ 1999



Twins Ballpark (Rendering by Albersman & Armstrong, Ltd. –2000)



The “Sports Corridor” – 2002 Rendering by Duncan Malloch



?Arden

Hi l ls

Saint

Paul

Minneapol is

Mal l of Amer i ca

Si te



?Arden

Hi l ls

Minneapol is

Mal l of Amer i ca

Si te

MSP Air por t

Saint

Paul



?Arden

Hi l ls

Minneapol is

Mal l of Amer i ca

Si te

MSP Air por t

Saint

Paul

Vikings Stadium

Target Field

Target Center

Block EConvention Center

HCMC

MOA Field

U of M Hospital

U of M Sports

Xcel & RiverCentre

Union Depot



Downtown East / North Loop Master Plan

Adopted October 2003



Downtown East

Sports &Entertainment

ALBERSMANARMSTRONGALBERSMANARMSTRONG



Why Far m er ’s Mar ket ?



Farmer’s Market Site Location

34 Acres34 Acres




MetrodomeSite Location

22 Acres22 Acres




Issues:

Rail, Bus and Bike

Parking / Roadway AccessSkyway System

Bars and Restaurants

Redevelopment NeedHighest and Best Use

Land Value

Interim Location

Land Assembly



Rail, Bus and Bike

Existing Metro BusTransit StationsExisting Metro BusTransit Stations

Hiawatha LRTCentral Corridor LRTSouthwest LRTBottineau LRTNorthStar Rail

Bike TrailInterchange StationMTC Bus Stations




Issues:

Rail, Bus and Bike

Parking / Roadway AccessSkyway System



Land Value

Interim Location

Land Assembly

Farmer’sMarket Site MetrodomeSite

+ -



Farmer’s Market Site –Parking

Source: City of

Minneapolis,

and

aerial

survey

using

Google

Earth

Pro

SITE




MetrodomeSite – Parking

Source: City of

Minneapolis,

and

aerial

survey

using

Google

Earth

Pro

SITE





Garage Parking: 5,600 (44%)Surface Parking: 7,000 (56%)

Total Parking: 12,600 (100%)

Source: City of

Minneapolis,

and

aerial

survey

using

Google

Earth

Pro

Stadium

Footprint





Average Walking

Distance = 3.6 Blocks

Stadium

Footprint




Farmer’s Market Site –Skyway System




Issues:

Rail, Bus and Bike

Parking / Roadway Access

Skyway System



Land Value

Interim LocationLand Assembly


+ -

+ -+ -



MetrodomeSite –Bars and Restaurants




Issues:

Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -



Farmer’s Market Site –Redevelopment Need



MetrodomeSite –Redevelopment Need

M t d Sit R d l t N d



MetrodomeSite –Redevelopment Need

I



Issues:

Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -

+ -

F ’ M k t Sit Hi h t dB t U



Farmer’s Market Site –Highest and Best Use

Metrodome SiteMetrodome Site

Farmer’s Market SiteFarmer’s Market Site


F ’ M k t Sit Hi h t dB t U




CentralBusinessDistrict

CentralBusinessDistrict

ElliotNeighborhood

ElliotNeighborhood

MedicalMedical

North Loop &Warehouse

North Loop &Warehouse

SportsSports

RestaurantsTheaters

RestaurantsTheaters

Mill CityDistrictMill CityDistrict

University

West

University

West


Farmer’sMarket Site Highest andBest Use




Housing, Medicaland Educational

Housing, Medicaland Educational

Sports andEntertainmentSports andEntertainment


CBDCBD

Issues:



Issues:

Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -

+ -+ -

Cit y of Mpls Land Cost Analys is :



Cit y of Mpls Land Cost Analys is :

Farmer’s Market Site Metrodome SiteLow Estimate High Estimate Low Estimate High Estimate

Infrastructure: $69 Million $181 Million $30 Million $70 Million

PropertyAcquisition: $47 Million $47 Million $0 $0

Demolition: $3 Million $4 Million $3 Million $4 Million

Totals: $119 Million $232 Million $33 Million $74 Million

Difference: $86 Million $158 Millionmore than more than

Metrodome Metrodome

Source: Jim Nelson of Eberhardt Advisory

Land Valuat ion Com par ison:



Land Valuat ion Com par ison:

Farmer’s Market Site Metrodome SiteValue/S.F. 1 Value Value/S.F. 1 Value

Assessed

Market Value: $14.84 $16,160,000 $32.58

$35,480,000

Recent Sales: $17.25 $18,785,000 No Recent Sales 3

100% CostPremium: 2 $29.68 $32,320,000 $65.16 $70,960,000

Source: Hennepin County Assessor’s Office1 Based on 25 Acres2 100% increase over assessors market value.3 Option in 2001 of bare land for $48.sq.ft.

Issues:



Issues:

Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -

+ -+ -

+ -

InterimLocation (est $15million/year)



Interim Location (est. $15 million/year)

Issues:



Issues:

Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -

+ -+ -

+ -

+ -

LandAssembly - Metrodome



Land Assembly Metrodome

22 Acres22 Acres


LandAssembly–Farmer’sMarket



Land Assembly Farmers Market

34 Acres34 Acres


Issues:



Rail, Bus and Bike


Skyway System



Land Value



+ -

+ -+ -

+ -

+ -+ -

+ -

+ -

? +

Summary :



Selecting the best location is more important than

simple implementation

A good location with flaws can be fixed, a flawlessplan in a bad location cannot

The stadium on the Metrodomesite is not compatiblewith current emerging development

Farmer’s Market site would give much needed boost tothis area of North Minneapolis



Downtown East

Sports &

Entertainment


Site




Ste

Vikings Stadium Concept



EnergyResource

Center

FootballFootball

BaseballBaseball

BasketballBasketball

Future LRT Extension

LRTStation

Theater,

Entertainment

Theater,

Entertainment

FarmersMarket

Tailgating,Railgating,

Trailgating

TheInterchange

Station


Connection

Connection

4,600

Stalls

1,600Stalls

1,500Stalls

1,600 Stalls

550 Stalls

370Stalls

Twins Plaza

g p

1,150Stalls

Connection




EnergyResource

Center

FootballFootball

BaseballBaseball



LRTStation

Theater,

Entertainment

Theater,

Entertainment

FarmersMarket


Trailgating

TheInterchange

Station


Connection

Connection

4,600

Stalls

1,600Stalls

1,500Stalls

1,600 Stalls

550 Stalls

Twins Plaza

g p

Connection

FutureDevelopment

FutureDevelopment

FutureDevelopment

FutureDevelopment




FootballFootball

BaseballBaseball



LRTStation

Theater,

Entertainment

Theater,

Entertainment

FarmersMarket


Trailgating

TheInterchange

Station


Connection

Connection

4,600

Stalls

1,600Stalls

1,500Stalls

1,600 Stalls

300 Stalls

Twins Plaza

g p

Connection

FutureDevelopment

FutureDevelopment

FutureDevelopment

FutureDevelopment




ALBERSMAN

ARMSTRONG

ALBERSMAN

ARMSTRONG

g p




ALBERSMAN

ARMSTRONG

ALBERSMAN

ARMSTRONG




Metrodome Medical Campus

Downtown East / North Loop Master PlanAdoptedOctober2003




Downtown East / North Loop Master PlanAdoptedOctober2003




MetrodomeMedical Campus



U of M Medical School

Mayo Satellite

Specialty Clinics

U of M Ambulatory CareMedical Device Incubator

HCMC

Housing

Metrodomere-use illustration

Met rodomeSi te

HCMC

LRT

Stat ion

Why the MetrodomeMedical Campus ?



Proximity to the U of M

Parking Potential

Access to Transit

Identity OpportunityMedical Synergies

Roadway Access

Compatible with

Metrodomere-use illustration

Met rodomeSi te

HCMC

LRT

Stat ion

Emerging Development

Why Not?



The Stadium Problem



The Current System is Broken and Dysfunctional:

Competition between government jurisdictions

Lack of coordinated planning

Financial burden not fairly shared

Finances difficult to understand

Duplicative facilities and management

Site selection based on crisis management

Public benefit not maximized



The MEC“Metropolitan Entertainment Commission”

A New Model for Development,Ownership and Management of Sports,

Entertainment and Exhibition Facilities

Issues



Billion Dollar Investment

Maximize Public Benefit Utilize existing freeway and major arterial systems

Capitalize on existing and planned transit

Maximize existing parking infrastructure/investment

Access to jobs

Strengthen urban core

Create sports and entertainment synergies

Create operational & management efficiencies

Should accomplish more than just a stadium

Fix ing the Problem…



(Metropolitan Airports Commission)

The MAC Model

The MAC Model (Metropolitan Airports Commission)



Operates and Manages:

Minneapolis/Saint Paul International Airport

Saint Paul Downtown Holman Field Flying Cloud Airport

Crystal Airport

AirlakeAirport

Lake Elmo Airport

Anoka County – Blaine Airport

The MAC Model Versus



Similarities:

Large publicly-owned facilities

Multiple large tenants (e.g. Twins & Vikings / Delta & Sun Country)

Multiple revenue streams

Capital & ongoing financing needs

Recognized public benefit

Spor ts & Entertainment Facilit ies

The MAC Model Versus



Differences:

Compensatory – landside and terminalrevenue flows to MAC

Single management

Oversight by statewide representation

Capital cost recovery based on user fees

Accountable to legislature

Residual – revenue flows toteam owners

Multiple owners/management authorities

Regional and local oversight

Capital cost recovery based on taxes

Accountable to local sponsors

Metropolitan Airports Commission Sports & Ent. Facilities

Spor ts & Entertainment Facilit ies

The MAC Model (Metropolitan Airports Commission)



Summary:

User fees based budget

Taxing authority (not used since late 1960’s) Oversight by benefitting jurisdiction

Professional management


Staggered terms provide political stability

Bonding authority

Power of eminent domain

The MEC Model (Metropolitan Entertainment Commission)



Summary:

User fees based budget

Taxing authority (not used since late 1960’s) Oversight by benefitting jurisdiction

Professional management


Staggered terms provide political stability

Bonding authority

Power of eminent domain

The Met ropolitan Enter tainment



MEC Phase I:

Target Center

Target Field

Minneapolis Convention Center

Mall of America Field (Metrodome)

Commission (MEC)

MEC Phase II:

Xcel Center

RiverCentre

Midway Stadium

Potent ial Financ ing Plan – Phase I



Metropolitan Entertainment Commission (MEC):

Lead with Private Money

Team owners

Corporate investment

Maximize Unencumbered Existing Revenue Streams

Capture TAD garage revenues

Refinance Minneapolis Convention Center Sell MetrodomeDevelopment rights

Refinance Target Field

Sell naming rights / sponsorships

Realize Management Efficiencies

Finish with new public money

Example Financing Plan – Phase I



Lead with Private Money: $ 520 MFinish with Public Money: $ 480 M

Total: $ 1 Billion

(Estimates Only)



Example Financing Plan – Phase I(Estimates Only)



Finish with Public Money:Reduce Bureaucracy $ 20 M1

TAD Garages $ 50 M2

Convention Center $ 50 M3

HC Twins Bonds $100 M4

Twins/VikesEnt. Tax $ 50 M5

Sale of Metrodome $ 30 M6

Add’l Public Contribution $180 M7

Total: $480 M

( y)

1. Reduced admin. expenses bonded over 30 years.2. Assumes all net revenues after 5pm weekdays and weekends from events.3. Assumes refinance of current taxes used for Convention Center. Extend and refinance of debt., Assumes 3% food

and liquor, 0.5% sales tax already in place and extended.4. Assumes use of excess revenue already being collected for Twins games, 0.15% sales tax.5. Assumes 3% entertainment tax already in place for Twins games as well as 3% Vikings entertainment tax.6. From published reports.7. Gaming, bonding, legacy funds or foundations.

Why MEC? (Metropolitan Entertainment Commission)



Eliminate duplicative bureaucracies

Take politics out of the planning process

Broader representation by benefiting jurisdictions Establish ongoing funding

Reduce leverage of team owner

Transparency

Maximize public benefit

Next Steps



Extend Vikings Lease for One Year

Create MEC Task Force:

Governance

Financing

Operations

Site selection

Lead with Private Sector Investment

Prepare for Legislative Session

farmers market plan-the corridor - 11-03-2011

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