HomeMy WebLinkAbout1999-09-07 HRA Regular Meeting MINUTES
OF THE JOINT MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
AND THE EDINA CITY COUNCIL
HELD AT CITY HALL
SEPTEMBER 7, 1999 - 7:00 P.M.
APPOINTMENT MADE TO EDINA HOUSING AND REDEVELOPMENT AUTHORITY
Chair Maetzold introduced Scott W. Johnson, the candidate appointed by the Council to
fill the term of Commissioner with the Edina Housing and Redevelopment Authority.
Clerk Mangen administered the oath of office to Mr. Johnson.
ROLLCALL Answering rollcall were Commissioner Faust, Hovland, Johnson, Kelly, and
Chair Maetzold.
CONSENT AGENDA ITEMS APPROVED Motion made by Commissioner Kelly and
seconded by Commissioner Hovland approving the Consent Agenda as
presented.
Rollcall:
Ayes: Faust, Hovland, Johnson, Kelly, Maetzold
Motion carried.
• *MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND
REDEVELOPMENT AUTHORITY FOR AUGUST 17, 1999. APPROVED Motion made
by Commissioner Kelly and seconded by Commissioner Hovland approving the
Minutes of the August 17, 1999, Regular Meeting of the Edina Housing and
Redevelopment Authority.
Motion carried on rollcall vote - five ayes.
PROPOSALS RECEIVED FOR KUNZ/LEWIS PROPERTIES Director Hughes noted
that on August 27, 1999, eleven proposals were received for the development of the
Kunz Oil/Lewis Engineering properties and other related parcels. The proposals were
provided to the HRA shortly after their receipt. Summaries for each proposal were
presented at the meeting.
Director Hughes recommended the HRA discuss the process for reviewing the
proposals. Staff believes it would be appropriate for the HRA to study the proposals
during the next two weeks with a goal of selecting four or five proposals for further
study. He suggested the HRA invite four or five finalists to make formal presentations of
their proposals. The presentations could take place at a work session later in the
month. Following the finalists presentations, the HRA would be in a position to select
one or two finalists for further discussions.
Director Hughes noted a list of criteria had been proposed previously that remains valid.
The criteria are as follows:
1. Developers ability to plan and complete the project
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2. Financial capability
3. Record of accomplishment with respect to other projects
4. Compatibility of project with the neighborhood
5. Responsiveness to HRA goals as established in the RFP
6. Adequate compensation to the HRA for its investment to date
7. Prompt execution of the project
Chair Maetzold inquired whether an eighth point should be added that would include
the comprehensive nature of the project which would state using the optimum amount
of land for the development. Director Hughes said when the proposals are reviewed,
two distinct approaches surface. Some proposals are global in nature and would
include other properties in the area, as opposed to just involving the HRA property or
another parcel or two. This appears to be a key point of the HRA is whether the project
should be a more global project. This could be more exciting, however, it could be
more risky and more difficult to accomplish within a short timeframe. He added it could
be added as an eighth point to the criteria list.
Commissioner Faust said after perusing the proposals she was distressed with point
seven, prompt execution of the project and the proposed time schedule. She noted one
proposal suggested delaying construction allowing time for pre-sales. Director Hughes
stated that new legislation dictates that a re-development must have a letter of intent by
year-end. Another concern with the Grandview area is that the Tax Increment District
only lasts until 2010 allowing a limited time to capture the increment needed to fund •
public projects.
Commissioner Faust added if the decision is made to expand the area of development,
how long is the condemnation process. Attorney Gilligan said a quick-take action could
be done but a risk would exist with setting a price for the property. A normal
condemnation process could take nine-months to a year.
Chair Maetzold asked how to best determine the financial viability of a developer.
Director Hughes said these records have not been asked for at present. One method
could be to review their completed project history. He noted some proposers have
submitted references within their RFPs.
Commissioner Hovland asked within the two week time period would the
Commissioners, after perusing the RFPs, discuss them at a work session and chose
four or five. Director Hughes answered yes.
Commissioner Faust asked if a special meeting would be called. Director Hughes said
what would make sense would be do this at a regular meeting and then schedule a
special meeting as a workshop where the finalists were invited in to do a formal
presentation.
Chair Maetzold said it seemed appropriate to allow the proposers, after their
presentation, to go back and fine-tune their proposals.
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• Commissioner Hovland asked how all-encompassing the re-development should be, i.e.
should it include the TAGS property. Director Hughes said TAGS is interested in having
the issue resolved promptly. Commissioner Hovland said it would be helpful to be
thinking of the project and the economics of the City when perusing the RFPs, of 1)
what the risks are with a 16 acre project, 2) what the costs would be, 3) whether the
project was an 8 1/2 acre project, etc.
Commissioner Kelly said he thought this had been discussed. Chair Maetzold said this
was discussed during the WMEP discussions in his recollection. Commissioner Hovland
said he believed this was discussed in conjunction with the Noonan property. He feels
some uncertainty with how big the parcel should be. Commissioner Kelly said the TIF
money is gone on January 1 and he believes anything less than a comprehensive
review makes no sense. The City can always scale back but we should look at the
larger area.
Commissioner Faust believes the TAGS, Noonan and the Pet Hospital properties
should be examined all the way to Vernon Avenue.
Commissioner Johnson reiterated that if the plan is more expansive, the proposers
should be advised of this fact.
• Director Hughes reminded the Council that in the original RFP, we said this is the
property we own and it may include others. During the most recent discussions, what
found its way into the addendum to the RFP was that the HRA was particularly
interested in having the school bus garage and TAGS property included in the
development. A developer including those entities should not be considered
unresponsive.
Commissioner Faust said one proposal noted a pre-existing agreement between the
City and another developer in the Grandview area. Director Hughes responded the
district was created in 1984 and in the late 80's entered into a redevelopment
agreement with Jerry's during construction of the parking ramp which is what they must
be referring to.
Commissioner Hovland asked if it was clear in the second RFP that the bus garage was
included in the plan. Director Hughes said the addendum to the RFP said that the bus
property and the TAGS property were important additions to the site. He clarified that
for the two week period, it might be inappropriate to allow new submissions. The review
should be completed on what has been received to date. If a land use is zeroed in on,
then some things might be subject to change.
Chair Maetzold re-read the eight criteria for the Council to keep in mind when
examining the proposals. He suggested setting the final number at four for proposals to
• be discussed at the next meeting. He further explained the approach being taken for
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the site is not to include gymnasiums or a performing arts center. The City is in active •
discussion with the School District about placing these two entities on school property.
Director Hughes noted a letter was received from Mr. Tim Moodie, President of the
Edina Swim Club, requesting his letter, on behalf of the Club be considered as a
proposal for the Kunz/Lewis property. Council consensus was that this use is more
appropriate with the School District use.
Commissioner Faust asked how many rental units exist within a half-mile radius of the
Grandview area. Director Hughes said staff would research this and provide the
information.
No formal action was taken.
PUBLIC HEARING CONTINUED TO OCTOBER 5 1999 TO CONSIDER WEST 491/2
STREET PARKING RAMPOMPROVEMENT NO P-4a Affidavits of Notice were
presented, approved and ordered placed on file.
Engineerina Presentation
Mr. Hoffman explained the ramp expansion project Improvement P-4a would be a
project authorized jointly by the City of Edina and the Edina HRA. The proposed project
would construct a ramp expansion of 115 cars by expanding up one level and
horizontally over the Lee property located on West 491/2 Street directly west of the •
existing ramp. The expansion would be funded eighty percent from the District's tax
increment funds and twenty percent from special assessments against the 501h and
France businesses. The estimated cost of the project is $1,998,000. Mr. Hoffman stated
that one issue is the setback variance needed from the north line property line of the
ramp due to the height of the ramp.
Mr. Hoffman reported staff has noted that the two north ramps (north of West 501h
Street) tend to fill frequently. With the addition of the building next to the theater, full use
of the south ramp is expected. He noted that there are currently 1000 public parking
spaces available on the Edina side of the Business District. The proposed addition to
the ramp would increase available spaces by ten percent.
A second consideration is the financing of the proposed ramp. Mr. Hoffman noted that
the 501h and France Tax Increment District will not be available after early 2001. Mr.
Hoffman added that the City acquired the Lee property in 1997 with the thought of
being able to use the TIF dollars to expand parking in the area. When the City was in
the process of acquiring the Lee property it contracted with Walker Parking to study the
area and propose alternatives for additional parking. Expansion of the ramp at West
491/2 Street was the preferred option.
Mr. Hoffman used graphic boards prepared by Walker depicting a tentative design. He
showed the area on the north side of the ramp where the design will be changed in an •
attempt to mitigate the addition's impact on adjacent properties. Mr. Hoffman explained
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. that when the ramp was originally built, a height variance from the rear property line
setback was granted. He noted that the addition will require an additional variance. Mr.
Hoffman noted that Jan Monson, 3925 West 49th Street, had presented a letter stating
her objections and requests regarding the parking ramp expansion, that had been
placed before the Council.
Member Kelly asked if the ramp expansion could be done in phases, and how was the
80/20 cost split derived. He added that he understood assessments must be
proportionate to benefit derived and commented that the 80/20 split seemed low. Mr.
Hoffman explained that if the Council wishes to finance the ramp expansion with TIF
then it must do so before the 2001 deadline. He added that the 80/20 cost split formula
began in 1973 and has been carried forward since that time. Manager Hughes stated
he believed when the 80/20 split was originally approved it was a negotiated split.
Member Faust asked if the northwest corner were cut out of the ramp would the need
for a height variance be eliminated. She also wanted to know how many spaces would
be lost by removing the corner. Mr. Hoffman said the height variance could not be
eliminated through any redesign because of the variance necessary for the existing
ramp. He added it was not known how many spaces would be eliminated until further
design work could be completed.
Member Hovland stated everyone realizes the need for parking in the 50th and France
. area, however, he still felt uncomfortable with the neighborhood impact. He asked what
the possibilities would be of excavating and building additional ramp levels
underground. Member Hovland noted the incremental cost of each additional parking
stall and asked if the Council were to decide to wait could they expect the cost to go
down. Mr. Hoffman replied that he believed building additional parking below ground
would cut off Hooten Cleaners. He introduced Scott Froemming of Walker to respond to
the question of construction costs. Mr. Froemming explained that Walker solicited
prices from contractors. He noted the marketplace was currently very busy, but stated
he believed the estimated cost was a reasonable cost for the proposed project.
Member Hovland asked if the Council decided the costs were reasonable and to build
the entire 115 space addition, how would staff propose to mitigate the impact on the
surrounding neighborhood. Mr. Hoffman used pictures and graphics showing the height
of the existing landscaping relative to the existing ramp. He pointed out the changes
proposed and explained that the ramp would still have to be redesigned. The proposed
height issue will be from the middle not the back side of the ramp.
Attorney Gilligan clarified that there will be an April 1, 2001, sunset for expenditure of
funds in the 50th and France TIF District, meaning the check must be written by that
date. Member Faust asked if TIF funds could be used to mitigate the neighbor's
impact. Mr. Gilligan replied that TIF funds could be used to lessen neighborhood
impact.
• Public Comment
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Marty Rud, Edina Properties, 6222 France Avenue South, representing the Edina side •
of France business owners, stated he had a resolution endorsing the ramp addition. Mr.
Rud stated that parking is very important to customers and employees. He added that
the number of employees in the area has increased dramatically. Mr. Rud noted that
Spalon Montage has around 200 employees. All of these employees need to park in
order to serve their clients and the area businesses would like to keep parking out of
the nearby residential areas. Mayor Maetzold asked if the increased number of
employees were in response to increased sales. Mr. Rud acknowledged that sales are
strong, however, the increase is only partially attributable to sales. Member Faust asked
if the new development across France Avenue in Minneapolis has adequate additional
parking. Mr. Rud said he believed that the need for increased parking was being
addressed.
Keith Moe, 1752 Montreal, St. Paul, owner of the business at 3939 West 50th from the
50th and France Business Association presented a resolution formally supporting the
addition to the ramp. Mr. Moe said the ramp addition will increase parking by ten
percent where it is really needed. He urged approval of the ramp improvement.
Gail Dean, 3925 West 49th Street, said that ten years ago the City told residents the
ramp would not be built higher. Ms. Dean asked how the ramp would benefit her
property. She added she will not benefit from additional sales in the business district.
Ms. Dean said she should not suffer from people cutting through her yard, the invasion
of her privacy, the increased noise intrusion (car alarms), and the landscaping •
maintenance needed to keep up the trees and shrubs between the ramp and her
property. The additional level of the ramp will have a dramatic effect on her property
and she urged that the Council mitigate the height as much as possible
Ted Dean, 3929 West 49th Street, added that he recently noticed the light fixtures on
the back of the parking ramp are broken off. Mr. Dean stated he was against any
addition to the existing ramp. He suggested the City purchase Hooten's Laundry and
expand the ramp into that area going underground, but not up. Mr. Dean said the
maintenance of the existing ramp is not at the level that it should be.
Anthony Park, Hooten Cleaners asked if the expansion could be done without the west
side expansion. He wanted to preserve the Hooten Cleaners drive through availability.
Kathleen Godfrey, West 491h Street, stated she is also a member of the 50th and France
Business Association. Ms. Godfrey questioned whether a parking problem existed. She
asked if there was not a higher and better use of the vacant land. Ms. Godfrey stated
she hates to see residents loose their view and the existing landscaping. She noted the
problems with parking is only during the hours of 9 a.m. until 5 p.m. and in her opinion
spending two million dollars did not seem prudent.
Jan Monson, 3945 West 491h Street, stated the ramp is a very expensive solution to a
business parking problem during 10:00 a.m. until 6:00 p.m. Ms. Monson said she did .
not believe that there really was the severe parking problem purported by the
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• businesses. She suggested that parking be expanded behind Edina 5-0. Ms. Monson
thanked Mr. Hoffman for meeting with her and referred to her letter requesting: all set-
back requirements are met; the strategic utilization of fencing and landscaping to
provide privacy; "reduce" air and noise pollution; and installation of screens to deter
people from using adjacent properties as walkways or shortcuts.
David Stein, 3920 West 491h Street, stated he opposed the ramp expansion. Mr. Stein
added he believed that much more parking could be obtained on the Edina 5-0 location.
He said the businesses are going to reap the benefits while the residents will suffer a
huge loss forever. Mr. Stein recommended the residents be compensated.
Roberta Costellano, 4854 France Avenue, said she was initially pleased with the
project, however, when she considered the effects on her neighbors she changed her
mind. Ms. Costellano urged the Council to consider the residents' privacy, maintenance,
security and the noise issue. She added that the commercial garbage pick ups have
been occurring too early and waking up the neighborhood. Mr. Costellano said the
haulers have been picking up between 5:20 a.m. and 5:40 a.m. She asked the Council
to seek other alternatives rather than adding on 115 spaces to the West 49'/2 Street
ramp. Ms. Costellano also asked about the status of the Minneapolis development.
Tom Nelson, Minneapolis resident and 50th and France Area business owner, noted
• that the area is a victim of its own success. Mr. Nelson urged the Council to move
ahead with the ramp expansion, stating this was a tremendous opportunity to add
parking that is needed both by clients and employees.
Cecil Basset, 4916 Maple Road, asked what is the full 25 year plan for the area. He
stated that what happens in the 501h and France Area affects more than 491h Street, it
also affects Maple Road. He asked if more businesses are planned, the potential traffic
impacts of future expansion and expressed concern on behalf of all residents of the
area. Mayor Maetzold replied that traffic in Edina has become a fact of life for all areas
of the City. He added that the City provides the infrastructure for business and
residential areas, but does not have a twenty-five year plan for 50th and France. Mayor
Maetzold added that when the Lee property became available, the Council purchased
the land because it thought it prudent knowing there existed a need for additional
parking in the area. He noted that traffic cannot be controlled from coming into and
moving through or out of Edina. The City staff has been and will continue to work on
traffic calming strategies as have been discussed at previous meetings. Member Kelly
added that each business would need to be asked what their future plans are because
there is not one "plan" for the area.
The Council discussed the issues raised by citizens and directed staff to work with the
City's consultant to mitigate the impact of the proposed ramp expansion on the adjacent
properties. Member Johnson made a motion continuing the public hearing for the
West 49'/2th Street Parking Ramp Improvement No. P-4a until October 5, 1999.
Member Faust seconded the motion.
Ayes:Faust, Hovland, Johnson, Kelly, Maetzold
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Motion carried. •
CLAIMS PAID Commissioner Hovland made a motion approving payment of the
following claims as shown in detail on the check Register dated September 2,
1999, and consisting of one page totaling $62,372.51. Commissioner Faust
seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Johnson, Kelly, Maetzold
Motion carried.
There being no further business on the HRA Agenda, Chair Maetzold declared the
meeting adjourned the joint meeting at 7:32 P.M.
Executive Director
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