HomeMy WebLinkAbout1995-11-20 HRA Regular Meeting MINUTES
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
NOVEMBER 20, 1995
ROLLCALL Answering rollcall were Commissioners Maetzold, Paulus, Smith and
Richards.
CONSENT AGENDA ITEMS ADOPTED Motion was made by Commissioner Paulus
and was seconded by Commissioner Maetzold to adopt the Consent Agenda as
presented.
Rollcall:
Ayes: Maetzold, Paulus, Smith, Richards
Motion carried.
*MINUTES OF THE HRA MEETING OF NOVEMBER 6. 1995. APPROVED Motion was
made by Commissioner Paulus and was seconded by Commissioner Maetzold to
approve the HRA Minutes of November 6, 1995.
Motion carried on rollcall vote -four ayes.
CENTENNIAL LAKES AMENDMENT TO CONTRACT FOR DEED APPROVED Director
Hughes reported that an amendment to the Contract for Deed with respect to the
• Centennial Lakes project is being requested by Brian Carey of United Properties. The HRA
owns most of the remaining vacant property at Centennial Lakes via the Contract for Deed.
The vendor, with respect to the Contract for Deed is Centennial Lakes Limited Partnership
which is governed by a Board of Governors representing heirs of the Hedberg estate. John
W. And Jean Hedberg, the decedent's son and daughter-in-law continue to retain a
separate interest in the property.
The Deed matures in the year 2000. Under terms of the Contract for Deed, annual
installments are due each year in October.
The HRA, in 1988, entered into a Redevelopment Agreement with South Edina
Development Company (SED). Terms of this Agreement are that SED is required to make
all payments of principal and interest required by the Contract for Deed. Provided that SED
makes such payments and satisfies other obligations, it retains its development rights with
the HRA through the year 2000.
The 1995 installment on the Contract for Deed was due on October 13. Neither SED nor
the HRA made the payment. Instead, SED entered into negotiations with representatives
of the Centennial Lakes Limited Partnership for the purpose of delaying the payment. Brian
Carey of United Properties wrote to Mr. Steve Hedberg outlining terms of the successful
renegotiations. Since the Contract for Deed is between the HRA and the Hedbergs, the
HRA must accept the terms of the renegotiation.
Staff believes that the HRA should accept an amendment to the Contract for Deed based
upon terms as outlined:
1) The City's and the HRH's interest in pursuing the complete development of
the Centennial Lakes project is preserved.
2) The proposed amendment does not result in an increase in property
acquisition cost or other cost by the HRA.
3) SED has demonstrated their commitment to complete the project by virtue
of issuance of a letter of credit to guarantee payment of the installment due
in 1996. A commitment such as this increases the likelihood that SED will
perform on its obligations under the HRA's Redevelopment Agreement.
4) The amendment provides that SED will acquire land necessary for Phase 1
and Phase 2 of the office development. Staff believes that the development
of the France Avenue frontage is the most appropriate portion of the property
to be developed at this time.
Director Hughes recommended the HRA accept the letter of intent and authorize staff and
HRA Attorneys to proceed with preparation of the amendment to the Contract for Deed.
Following a brief Council discussion, Commissioner Smith made a motion approving
the amendment of Contract for Deed in accordance with terms as outlined by United
Properties and on file in the office of the City Clerk. Commissioner Maetzold seconded
the motion.
Rollcall:
Ayes: Maetzold, Paulus, Smith, Richards
Motion carried.
CLAIMS PAID Commissioner Smith made a motion to approve payment of the
following claims as shown in detail on the Check Register dated November 15, 1995,
and consisting of one page totaling $7,369.54. Motion was seconded by Commissioner
Paulus.
Rollcall:
Ayes: Maetzold, Paulus, Smith, Richards
Motion carried.
There being no further business on the HRA Agenda, Chairman Richards declared the
meeting adjourned.
Executive Director