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HomeMy WebLinkAbout1991-10-07 HRA Regular Meeting • MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 7, 1991 ROLLCALL Answering rollcall were Commissioners Kelly, Paulus, Rice and Richards. CONSENT AGENDA ITEMS ADOPTED Motion vas made by Commissioner Kelly and vas seconded by Commissioner Rice to approve BRA Consent Agenda items as presented. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Motion carried. *MINUTES OF THE MEETING OF SEPTEMBER 23. 1991, APPROVED Motion vas made by Commissioner Kelly and vas seconded by Commissioner Rice to approve BRA Minutes of September 23, 1991. Motion carried on rollcall vote, four ayes. RESOLUTION ADOPTED AUTHORIZING AMENDMENT OF ASSESSMENT AGREEMENT - CENTENNIAL LASES CONDOMINIUMS Executive Director Hughes indicated that all properties in Centennial Lakes and Edinborough are subject to assessment agreements. The agreements establish a minimum market value for property tax purposes with • respect to each property. The owner of each property subject to an assessment agreement cannot appeal, either administratively or judicially, for a reduction in the market value of the property below the minimum established by the assessment agreement. The City Assessor is free to value property above the amount specified in the assessment agreement. However, the property owner may appeal such a valuation but not to a point below the base value of the agreement. Assessment agreements are one of the tools used by the HRA to "guarantee" the generation of tax increments in amounts sufficient to retire the bonds. In the case of Edinborough, the assessment agreements provided that the minimum market value for the Edinborough Corporate Center and the Edinborough Park Plaza would increase for a period of five years at the annual rate of three percent. Although the Edinborough Condominiums established a minimum market value, no annual escalator was provided in the assessment agreement due to the concern that such an escalator could chill sales of individual condominium units. In the case of Centennial Lakes, an annual increase of three percent was provided in the assessment agreements for all properties including the Centennial Lakes Condominiums. This three percent increase was not limited to five years, as is the case at Edinborough, but rather until all bonds were repaid for the development, i.e. , approximately twenty years. Jonathan Scoll, attorney for the Centennial Lakes Housing Partnership, has requested that the annual three percent escalator clause be removed from the assessment agreements relative to the Centennial Lakes Condominiums. Apparently the escalator clause has been the subject of concern by the buyers • of the Centennial Lakes Condominiums, especially the higher priced units. H.R.A. Minutes - 10/07/91 Page two Director Hughes opined that the requested amendment to the assessment agreement is in order. The purchasers of Centennial Lakes Condominium units should be bound by the same requirements as the purchasers of Edinborough Condominiums. Instead, purchasers at Centennial Lakes are obliged to accept potential valuation increases that could cumulatively total over 80 percent during the term of the assessment agreement while Edinborough homeowners are not faced with this potential increase. Commissioner Rice introduced the following Resolution and moved its approval: RESOLUTION BE IT RESOLVED by the Edina Housing and Redevelopment Authority that all assessment agreements now or hereafter given in connection with the residential condominiums at Centennial Lakes shall be amended to delete the requirement that the initial market values be increased by three percent per year cumulatively; BE IT FURTHER RESOLVED that any two officers of the Edina Housing and Redevelopment Authority hereby are authorized and directed to execute and deliver such amendments to the Amended and Restated Land Sale Agreement and Contract for Private Redevelopment with the East Edina Housing foundation dated as of September 30, 1988, and to such assessment agreements as are necessary and desirable to implement the foregoing resolution. Motion was seconded by Commissioner Paulus. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Resolution adopted. *CLAIMS PAID Motion was made by Commissioner Kelly and was seconded by Commissioner Rice to approve payment of the claims as shown in detail on the Check Register dated 10/07/91, and consisting of one page totalling $21,055.84. Motion carried on rollcall vote - four ayes. There being no further business on the HRA Agenda, Chairman Richards declared the meeting adjourned. Ex ive Director