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HomeMy WebLinkAbout1990-06-04 HRA Regular Meeting • MINUTES OF THE JOINT MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY/CITY COUNCIL HELD AT EDINA CITY HALL JUNE 4, 1990 A joint meeting of the Edina Housing and Redevelopment Authority and the City Council was convened to consider concurrently: 1) Parking Ramp Improvement P-4 - North Side of West 49 1/2 Street, 2) 50th & France Renovation - 50th and France Commercial District, 3) Award of Bids: Centennial Lakes Park Building - Mechanical, Centennial Lakes Park Building - Electrical, Centennial Lakes Maintenance Area - Fireproofing, Centennial Lakes Maintenance Area - Electrical, 4) Reappointments/Appointment - East Edina Housing Foundation Board. Action was taken by the HRA and Council as recorded. ROLLCALL Answering rollcall were Commissioners/Members Kelly, Paulus, Rice and Chairman/Mayor Richards. Commissioner/Member Smith was absent. MINUTES of the Joint ERA/Council meetings of April 16 and May 7, 1990, were approved as submitted by motion of Commissioner/Member Paulus, seconded by Commissioner/Member Rice. Ayes: Kelly, Paulus, Rice, Richards Motion carried. PUBLIC HEARING HELD ON PROPOSED IMPROVEMENTS - EARRING RAMP IMPROVEMENT. P-4 NORTH SIDE OF WEST 49 1/2 STREET AND 50TH & FRANCE RENOVATION Affidavits of Notice were • presented, approved and ordered placed on file. HRA Executive Director Gordon Hughes explained that Improvement HRA/90-10 is an overall renovation of sidewalks, street furnishings, pedestrian lighting, etc. The Parking Ramp Improvement P-4 is a 154 car ramp to be located north of 49 1/2 Street. Owners and tenants of property at 50th & France were notified of the public hearing as were residents adjoining the proposed parking ramp. 50th and France History - The City and the HRA established the 50th & France redevelopment area and the tax increment financing district in 1974. HRA undertook the initial redevelopment project in 1975 and 1976. This project included the construction of the 49 1/2 Street parking ramp, expansion of the 51st Street parking ramp and numerous sidewalk, roadway, landscaping and lighting improvements. In 1977 and 1978, additional improvements were undertaken, including the carillon tower and fountain, and work in the vicinity of Arby's Restaurant on France Avenue. In 1988, the 51st Street parking ramp was expanded by approximately 115 spaces. The initial redevelopment project was financed through a combination of special assessments and tax increment financing. For these improvements, 20% of the project costs were assessed against benefitted properties with the remaining 80% financed through tax increment financing, State Aid, and CDBG Funds. The special assessments, levied on a floor area basis, totaled approximately $2.15/sq. ft. of assessable floor area. The 1988 expansion of the 51st Street parking ramp was likewise financed through a combination of special assessments and tax increment financing. In this case, approximately 30% of the ramp costs were assessed against the Edina Theatre, and the balance was financed by tax increments. No businesses other than the Edina Theatre were assessed for the ramp expansion. • H.R.A./Council Minutes - 6/4/90 .Page 2 • Status of Tax Increment District - On March 26, 1990, the City sold an additional $3,000,000 of General Obligation Bonds for the 50th & France tax increment district. This bond sale insured the existence of this tax increment district through year 2008. This bond sale was undertaken based upon the contemplated project cost for the improvements which are now being considered. At present in excess of $900,000 in increments are being generated. The present principal and interest payments on outstanding bonds is approximately $257,000 which will be completed in 1993. At this point, there is about $650,000 annually of excess increments. Commencing in 1994 with the repayment of outstanding bonds that would then go up to $900,000 plus any or new development that might occur. Renovation Project - Executive Director Hughes stated that the estimated cost of the project is $2,134,000 proposed to be funded 80% through tax increment financing and 20% specially assessed, the same method as the original project. The resulting assessment would be approximately $1.14 per square foot of floor area for the renovation project. As with the original project, it is recommended that basement space at 50th and France used exclusively for storage be assessed at at a 10% rate. Also, it is recommended that a credit be given for the floor area of three enclosed malls. Executive Director Hughes introduced Peter Jarvis, BRW, Inc. , consultant for the renovation project who explained they were asked to examine plant materials, street furniture, lighting and pavement conditions and advise the City and the 50th & France Business Association about alternatives to improve the area and update it to the 1990's and beyond. In summary, Mr. Jarvis explained that the • most significant changes would be replacement of existing sidewalks from curb to storefront with concrete pavers, replacement of wood street furnishings and bollards with metal furnishings, installation of new pedestrian lighting, replacement of kiosks and the carillon tower with new structures and the replacement of alley canopies. Mr. Jarvis presented graphics illustrating the proposed changes and said he would characterize it as an European village look with a deep green theme. The tile pavers would be replaced with concrete pavers which would be set on top of 3 1/2 inches of concrete and an inch of sand. From a maintenance standpoint this is the best product to use because any refurbishing or utility work can be done without resulting patch problems. New entry monuments are proposed to be placed east and west, north and south of the district. These are preliminary plans that will pick up the design of the light fixtures with the curved metal, with a redesigned logo for the 50th and France area and a free flowing ribbon look. The entry monuments are meant to compliment the replacement for the central feature in proximity to the carillon. One of the main concerns was the timing of the renovation work to ensure the least amount of disruption of business and services. Phase I construction would begin after Labor Day, 1990, and would conclude in advance of the Thanksgiving holiday. Phase II would begin in the spring of 1991 and conclude before Memorial day. Actual work would begin with a sawcut made 5-6 feet out from the storefronts and everything in that corridor would be removed. Rewiring, footings and foundation work would be done necessary to support all of the street furnishings. Meanwhile, off-site all the fabrication would be taking place in terms of lights, bollards, monuments, etc. When all underground work is completed in the corridor, it would • be temporarily paved with bituminous for the winter. Street furniture that has been fabricated and completed would be installed by November. In April 1991, the H.R.A./Council Minutes - 6/4/90 Page 3 • temporary pavement will be removed and in sections the sidewalk up against the storefronts will come out. A concrete base will go in and in less than a working week, segment by segment, the sidewalk will be finished. Commissioner/Member Kelly inquired whether the fountain would be taken out. Mr. Jarvis stated the fountain will remain. Commissioner/Member Paulus asked if metal rather than wood would be better for protection against vandalism that occurs at 50th & France and if the construction plan is as cost effective as against ripping everything out at once. Mr. Jarvis said wood could be vandalized more readily than metal but nothing is vandalism-proof. As to cost, there would be a premium of approximately 3-58 which would be mainly. on the paving. Commissioner/Member Rice asked about the problem of heels getting caught in the pavers, if the type selected was one of the samples that had been put in place behind the theatre, their maintenance and . the maintenance for the light fixtures. Mr. Jarvis said the paver selected was one of the samples but the difference is that unlike all those it is a complete field of pavers as opposed to a paver area. The beauty of this system is simply that there will be no settling but if it should occur a vibrator run over the top would bring it flush again. Heels will not catch because the pavers have a beveled surface. The life of the new light fixtures will be much longer as the difference is wood versus metal. Relative to the entry monuments, Commissioner/Member Rice asked when and how the final decision would be made as to their design. Mr. Jarvis said that his staff was given direction at the last meeting with the 50th and France Association for further refinement of the ribbon concept and were asked to explore additional colors. Conceptually, there was strong support for this approach but BRW was asked for some additional . design refinements (scale, color and actual configurations of the ribbons) . The final design would be brought back to the Council for approval. Commissioner/Member Kelly asked if these were final plans, and asked specifically as to the carillon and fountain. Mr. Jarvis said the bells will remain but with a new metal structure. There would be another opportunity for review and discussion of the final designs. In response to questions of several businessmen who were present, Mr. Jarvis said the north side of 50th Street where the sidewalks are narrower would be done one-half at a time also. The contractor would be required to provide access for pedestrians to all businesses on a daily basis when the project begins this fall and continues in the spring. Also, the contractor would not be allowed to pile dirt or use the area between the buildings and the street as a staging area for supplies or equipment. However, everyone would know there is construction going on but, hopefully, with the least amount of pain possible, and the project will be great and exciting upon its completion. As to utility interruption, none is planned but when underground work is being done there can be accidents. The electrical circuitry for the lighting will be independent from service connections to the buildings. Parking Ramp Improvement - Executive Director Hughes explained that the parking ramp project would be a 154 car parking facility to be located on the north side of West 49 1/2 Street and would provide a net parking addition of 95 spaces. It would be designed to accommodate an additional level in the future that would contain 70 more spaces. The estimated cost of the project is $924,000 proposed to to be split with 808 from tax increment financing and 208 from special assessment. • This is the same formula that was used with the first project except for one point it was recommended that a 200 square foot credit be granted for each private H.R.A./Council Minutes - 6/4/90 Page 4 • parking stall provided by a property owner on site. It was also recommended that the sum of all the credits should not serve to reduce the assessable area by more than 50%. This project was proposed in response to a parking study done during the last half of 1989. The results showed that during the peak hour occupancy was at 73% for all public spaces at 50th & France. It should be noted that there is a parking distribution problem; public parking located north of 50th Street experienced a peak hour average of 85% while public parking located south of 50th Street showed a 62% average. The distribution problem would only get worse if the Walgreen's proposal is approved and after the Sheridan's Antique Store is converted to restaurant use. If the project is approved, construction would begin as soon as possible in the spring of 1991 with completion by August. Executive Director Hughes said the parking ramp site plan shows the entrance located next to the Edina Realty building with a one-way traffic flow through the ramp with the exit next to the Doctors' bu-ilding. Elevations and final design have not been completed on the parking deck, but there would be approximately 10 feet of space between the ramp and Edina Realty. On the west side the Doctors Building is built right to the property line leaving only a 2 foot spacing between the ramp and the building. The ramp would slope upward from the ends to the middle with the ends being 14 feet high and the middle 19 feet high. The ramp would be approximately 18 feet from the property line and 60 feet from the rear of the homes to the north. Executive Director Hughes said Terry Hakkola of Walker Parking Consultants was present and could answer questions concerning any • functional characteristics. As to Council action, staff would recommend that the Council authorize these projects, subject to agreement by the HRA to fund 80% of the project cost. This would be a City project and staff would recommend a simple joint powers agreement between the HRA and City to facilitate this funding and the construction. The Council could approve both projects, either of them or neither, as they are not dependent upon each other. Commissioner/Member Rice asked if the rear setback of the ramp from the residential properties is necessary and what would be there. Executive Director Hughes explained that the Zoning Ordinance permits a zero setback between buildings but requires a setback from the boundaries of a commercial district. The north property line is a boundary of the district and the required setback has to be not less than the height of the structure. In the case, because it is a 19 foot structure it would have to set back that distance from the residential property line. Landscaping would be installed in the setback area. Commissioner/Member Rice said one of the neighbors had said there is a problem now with people parking on West 49th Street and cutting through the yards to the commercial area and asked if fencing had been considered. Executive Director Hughes said that at this point fencing has not been proposed; however, that could be added. Brian Duoos, Edina Realty, asked the proximity of the ramp to the Edina Realty Building and if the design would be similar to the existing ramp on the street. Executive Director Hughes said the design and circulation through the ramp would be similar to the existing ramp. Terry Hakkola, Walker Parking Consultants, • explained that in order to maximize the use of the site the ramp would be 8-10 feet from the Edina Realty property line. The ramp would function with one-way H.R.A./Council Minutes - 6/4/90 Page 5 • traffic flow with parking and driving on all sloping floors. Mr. Duoos suggested that the ramp have long term parking through a sticker system which may eliminate the problem of people parking on West 49th Street and walking through those properties. He said Edina Realty is in favor of the ramp but would like to see it located as far away from their building as possible. Floyd Hooten, Hooten Cleaners, said he wanted to cooperate with the City but was concerned about an entrance and exit to his place of business. Executive Director Hughes said one of the design parameters on the ramp was the ability to access through the ramp to the rear of the Edina Realty Building and also to the rear of the Doctors Building and Hooten Cleaners. The functional schematic shows the entrance by the Edina Realty Building with exits to either the rear of the Edina Realty building, the Doctors Building or Hooten Cleaners. He pointed out that this does not present the sole means of access to the rear of those buildings. There is an existing drive between the Post Office and Mr. Hooten's building and also an existing drive between Edina Realty and Patio Village. The goal of the ramp design was to maximize parking. The lot, although 180 feet wide, is very short in depth for the purpose of providing structured parking. The shorter the ramp gets the more difficult it is to obtain the vertical separation between floors. Therefore, to sacrifice a portion of the width with a 20 foot drive isle would cause design problems. Hosmer Brown, said he was speaking for the 50th & France Business and Professional Association Board of Directors and the Steering Committee. In concept, the Association is delighted with the renovation for the commercial area and. is also • in favor of the parking ramp concept as it is very much needed. He said the Association would like to be able to have more input into the details and planning of the ramp. Executive Director Hughes stated that staff has met with the Steering Committee every two-three weeks since January and he would expect that this would continue on the renovation as well as on the ramp in terms of building materials, and details. Chairman/Mayor Richards then called for action regarding the Parking Ramp Improvement Project - P-4. Commissioner/Member Rice introduced the following resolution and moved its adoption: RESOLUTION ORDERING PARKING RAMP IMPROVEMENT NO. P-4 BE IT RESOLVED by the Housing and Redevelopment Authority (BRA) and the Council of the City of Edina, Minnesota, that the HRA and Council heretofore caused notice of hearing to be duly published and mailed to owneis of each parcel within the area proposed to be assessed on the following proposed improvement: PARKING RAMP IMPR0VEI1 NT NO. P-4 and at the hearing held at the time and place specified in said notice, the HRA and the Council has duly considered the views of all persons interested, and being fully advised of the pertinent facts, does hereby determine to proceed with the construction of said improvement including all proceedings which may be necessary in eminent domain for the acquisition of necessary easements and rights for construction and maintenance of such improvement; that said improvement is hereby designated and shall be referred to in all subsequent proceedings as: PARKING RAMP IMPROVEMENT NO. P-4 and the area to be specially assessed for a portion of the cost of the proposed improvement shall include all properties within the 50th & France Business District. A second to the motion was made by Commissioner/Member Kelly. H.R.A./Council Minutes - 6/4/90 Page 6 • Commissioner/Member Rice inquired whether Patio Village and Edina Realty had been informed that Walgreen's is coming into the area and that this may be a good time to combine properties. Executive Director Hughes said he and Peter Meyers had meet with Mr. Sather of Patio Village. The idea was pursued but it was not possible to reach a meeting of the minds. Commissioner/Member Rice asked how many actual parking spaces would be gained. Mr. Hakkola stated 95 spaces would be added, plus or minus 5 spaces. Commissioner/Member Paulus asked if the exterior would resemble the• ramp across the street. Executive Director Hughes stated the building materials have not been finalized yet. It would be bid out the way the 51st Street ramp was where different choices for exterior materials would be alternate bids and would be brought back to the HRA/Council for a decision based on the prices. Commissioner/Member Paulus asked if the HRA/Council commits to the project now could the project be stopped at some later point. Chairman/Mayor Richards stated that the City would have the right to reject the bids and therefore the project would not go forward. Commissioner/Member Rice asked how long the bid process would take. Executive Director Hughes said the suggested project schedule would be preliminary design in four weeks, bidding documents complete in September, bidding period in October and bids back in the fall. Commissioner/Member Paulus commented that this is a large investment, that the parking survey showed usage was not at 998 and that this would not actually alleviate the parking problem unless the parking distribution/convenience issue is solved. Commissioner/Member Kelly asked if there would be another opportunity to discuss the 80-20 cost split.- Executive Director Hughes commented that this would be . discussed again formally at the assessment hearing when the project is completed. and the final costs are known. The recommendation is if the HRA/Council wishes to alter the formula it should be done now. Chairman/Mayor Richards said, at he understood the sense of the motion, that the intent would be to assess the cost 208 to the benefitted properties with the recommended credits and that 808 would be funded through tax increment financing. If there is to be any change this issue needs debating now. Commissioner/Member Rice asked Executive Director Hughes if, since he considered this split fair in 1974-75, he still believed this to be fair. Executive Director Hughes stated yes, but one point he should have mentioned was that the Edina Theatre not be assessed for the new ramp, as they alone paid for the expansion of the 51st Street ramp. Commissioner/Member Kelly commented that property values in the last 15 years have increased and questioned whether a 758-258 split would be reasonable. Chairman/Mayor Richards countered that if that was the mind of the other Council Members they should speak up. Commissioner/Member Rice said he hoped the 50th & France Association would research better utilization of the existing parking spaces. Perry Anderson, 50th & France merchant, questioned the fairness of the assessment back to the tenants by giving credit for the open space mall areas. He said there has been considerable change in the terms of leases over the last 15 years and they feel that most of the assessment costs will be passed back to the tenants. Executive Director Hughes reiterated that related to three buildings - Edina Five-0, the Peterson Building and the Doctors Building. Executive Director Hughes commented that staff felt there was some virtual inconsistency, but since that was done in the prior assessment, it was considered a good idea from a policy standpoint. If the mall areas were assessed there is no guarantee that the tenants still would not pay for it, that would be between the landlord and the • tenant. The reason that was done in 1975 was that the HRA was encouraging enclosed malls. One of the ways this happened was to grant this credit if a H.R.A./Council Minutes - 6/4/90 Page 7 business rovided an enclosed mall. If that no longer is a critical issue the P g credit could be excluded. Commissioner/Member Rice commented that, although he understood the concern of the tenants, this is a really a landlord/tenant issue that the Council cannot address. Earl Cohen, Childrens General Store, stated that the 50th and France merchants are dealing with a very competitive environment, i.e. , the Southdale expansion and the new MegaMall, and feel it is important to keep expenses to a minimum. He said to the extent there is tax increment money available they would like see it used for the projects. Personally, he said he would like the split to remain at 208-808. Trace Lund, Lund's and Edina Properties, inquired about the credit for parking. Executive Director Hughes said the recommendation is that a 200 square foot credit be granted for each private parking stall that is provided on site. However, that credit, in concert with any other credit, cannot act to reduce the assessment by more than 508. Even if, in theory, one could provide enough private parking to reduce the assessment to zero it is recommended that the figure be placed at a 508 level. Fifteen years ago there was just one project and in that case the entire assessment got the 200 square foot private parking credit, not a parking project and a streetscape project like this. With no further comments being heard, Chairman/Mayor Richards called the vote on the motion on the floor. Rollcall: Ayes: Kelly, Paulus, Rice, Richards • Resolution adopted. Chairman Richards next called for action on the proposed Renovation Project. Commissioner/Member Rice asked if final design plans would be forthcoming. Chairman/Mayor Richards stated that the only things left to be resolved were the final design for the entry monuments and the focal point. Commissioner/Member Rice asked if the 50th & France Association finds the preliminary plans acceptable. Mr. Brown stated it was the consensus of the Steering Committee that the renovation plans were acceptable. Commissioner/Hember Rice introduced the following resolution and moved its adoption: RESOLUTION ORDERING RENOVATION IMPROVEMENT HRA/90-10 BE IT RESOLVED by the Housing and Redevelopment Authority (HRA) and the Council of the City of Edina, Minnesota, that the HRA and Council heretofore caused notice of hearing to be duly published and mailed to owners of each parcel within the area proposed to be assessed on the following proposed improvement: RENOVATION IMPROVEMENT HRA/9O-10 and at the hearing held at the time and place specified in said notice, the BRA and the Council has duly considered the views of all persons interested, and being fully advised of the pertinent facts, does hereby determine to proceed with the construction of said improvement including all proceedings which may be necessary in eminent domain for the acquisition of necessary easements and rights for construction and maintenance of such improvement; that said improvement is hereby designated and shall be referred to in all subsequent proceedings as: RENOVATION IMP8OVSlD3NT HRA/90-10 and the area to be specially assessed for a portion of the cost of the proposed • improvement shall include all properties within the 50th & France Business District. A second to the motion was made by Commissioner/Member Paulus. H.R.A./Council Minutes - 6/4/90 Page 8 Rollcall: Ayes: Kelly, Paulus, Rice, Richards Resolution adopted. Commissioner/Member Paulus introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING JOINT POWERS AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY AND CITY COUNCIL BE IT RESOLVED by the Housing and Redevelopment Authority and the Council of the City of Edina as follows: The Housing and Redevelopment Authority and the Council of the City of Edina do hereby authorize the execution of a Joint Powers Agreement for construction and assessment of the following projects: 1. Automobile parking ramp in the 50th and France District on the north side of 49 1/2 Street (designated as "Improvement P-4"). 2. Renovation and reconstruction of sidewalks, street furnishings, pedestrian lights and other improvements through out the 50th and France District (designated as "Improvement HRA/90-10"). A second to the motion was given by Commissioner/Member Kelly. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Resolution adopted. BID AWARDED FOR CENTENNIAL LAKES PARK BUILDING - MECHANICAL Motion was made by Commissioner Rice for award of bid for Centennial Lakes Park Building mechanical • to recommended low bidder, Blaine Heating and Air Conditioning, at $104,542.00. Motion was seconded by Commissioner Kelly. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Motion carried. BID AWARDED FOR CENTENNIAL LAKES PARK BUILDING - ELECTRICAL Motion was made by Commissioner Paulus for award of bid for Centennial Lakes Park Building electrical to recommended second bidder, Metro Electric, at $87,950.00. The low bidder, Gebhart Electric, did not comply with the project specifications. Motion was seconded by Commissioner Rice. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Motion carried. BID AWARDED FOR CENTENNIAL LAKES MAINTENANCE AREA - FIREPROOFING Motion was made by Commissioner Rice for award of bid for Centennial Lakes Maintenance area fireproofing to recommended low bidder, Bahl Insulation, at $13,120.00. Motion was seconded by Commissioner Paulus. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Motion carried. BID AWARDED FOR CENTENNIAL LAKES MAINTENANCE AREA - ELECTRICAL Motion was made by Commissioner Rice for award of bid for Centennial Lakes Maintenance Area electrical to recommended low bidder, Vantage Electric, at $8,850.00. Motion was seconded by Commissioner Paulus, . Rollcall: Ayes: Kelly, Paulus, Rice, Richards H.R.A./Council Minutes - 6/4/90 Page 9 Motion carried. APPOINTMENT AND REAPPOINTMENTS MADE TO EAST EDINA HOUSING FOUNDATION Mayor Richards said that in the past a member of the Planning Commission has always served on the East Edina Housing Foundation Board; however John Bailey did not seek to be reappointed. Mayor Richards recommended the appointment of John M. Palmer, who is well qualified to serve on the East Edina Housing Foundation Board. Chairman Richards also recommended the following reappointments to the Board: Virginia B. Shaw, William F. Greer, Ronald L. Ringling and Robert Q. Schoening. Member Rice made a motion to approve the appointment of John M. Palmer and the reappointment of Virginia B. Shaw, William F. Greer, Ronald L. Ringling and Robert Q. Schoening to the East Edina Housing Foundation Board. The motion was seconded by Member Kelly. Rollcall: Ayes: Kelly, Paulus, Rice, Richards Motion carried. Motion was made by Commissioner Rice and was seconded by Commiss on r Kelly for adjournment of the H.R.A. Motion was carried unan' ou y. i� HRA Executi Director Acting City Clerk