HomeMy WebLinkAbout1981-10-05 HRA Regular Meeting MINUTES
OF HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA
OCTOBER 5, 1981
7:00 P.M.
The Housing and Redevelopment Authority of Edina met at 7:00 p.m. in the Edina
City Council Chambers. Present were Members Bredesen, Richards, Schmidt, Turner
and Courtney.
ACQUISITION OF LAND FOR SENIOR CITIZEN RESIDENCE AUTHORIZED. Mr. Hughes recalled
that the proposed land acquisition had been on the H.R.A. agenda at the last
meeting and that it had been resolved that no further negotiations for a land
trade be held with the 7500 York Cooperative. The H.R.A. then had approved an
alternative plan which would rely basically on acquisition of the Hedberg property.
Mr. Hughes advised that subsequently a tentative agreement had been reached with
the Hedbergs to acquire additional property on the north side of Parklawn Avenue,
and that the approximate additional 160 feet would be added to Parcel A to provide
a property size that would support the 98 unit elderly housing building without
the need for variances. Therefore, prior resolutions adopted by the H.R.A. to
comply with the Community Development Act must be amended because of the change
in legal description for land to be acquired. As recommended by Mr. Hughes,
Member Turner offered the following resolution and moved its adoption:
RESOLUTION OF HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF EDINA, MINNESOTA
WHEREAS, the Housing and Redevelopment Authority of Edina, Minnesota has deter-
mined that a shortage of decent, safe, and sanitary housing exists in Edina for
elderly persons of low and moderate income; and
WHEREAS, the Housing and Redevelopment Authority of Edina, Minnesota has adopted
the Southeast Edina Redevelopment Plan, as approved by the Edina City Council to
provide housing for persons of low and moderate income, and has determined that
housing for low and moderate income persons in the Southeast Edina Redevelopment
Plan area will promote the health, safety, and welfare of the residents of Edina
and the sound growth and development of Edina;
NOW, THEREFORE, BE IT RESOLVED, that the Housing and Redevelopment Authority of
Edina, Minnesota, hereby finds, determines and declares:
1. That the acquisition of the property described hereafter is necessary
to help carry out the Southeast Edina Redevelopment Plan and help alleviate a
shortage of decent, safe, and sanitary housing for persons of low and moderate
income, and should be carried out and completed as part of a redevelopment
project under Minnesota Statutes, Section 462.415 to 462.711.
2. That it is necessary, to help carry out a redevelopment project con-
sistent with the ordinances and planning objectives of the City of Edina and
the Southeast Edina Redevelopment Plan, that the following described real
estate be acquired:
That part of the West one half of the Northwest Quarter of the North-
east Quarter of the Southwest Quarter and the East one hundred sixty
(160) feet of the Northwest Quarter of the Southwest Quarter of Section
32, Township 28, Range 24 West of the Fourth (4th) Prime Meridian,
Hennepin County, Minnesota, which lies North of the Westerly extension
of the South line of Parklawn Avenue as platted in Ebenezer Society
First Addition.
3. That private enterprise is unable to alleviate such shortage to provide
a substantial supply of .decent, safe and sanitary housing without government
subsidy at prices or rents within the financial means of persons and families
of such incomes, and that such shortage is inimical to the safety, health,
morals and welfare of the residents of Edina and to the sound growth and develop-
ment of Edina.
4. That the Housing and Redevelopment Authority of the City of Edina,
Minnesota, proceed to use every reasonable effort to procure the above described
property by negotiation and direct purchase, if possible, or under the Housing
and Redevelopment Authority's right of eminent domain, if necessary, and that
the staff and attorney of the Housing and Redevelopment Authority be instructed
and directed to use every reasonable effort to procure the above-described
property by negotiation and direct purchase, but, if not successful, to file
the necessary petition in eminent domain to acquire such property and prosecute
such action to a successful conclusion or until abandoned, dismissed, or term-
inated by the Housing and Redevelopment Authority or the Court; that the Housing
and Redevelopment Authority staff and attorney and the Housing and Redevelopment
Authority officers do all things necessary to be done in the acquisition of said
property by negotiation and purchase and, if necessary, by eminent domain.
5. That the acquisition of said property be done at all times in full com-
pliance with the acquisition procedures established by or under the Federal
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
as amended.
Motion for adoption of the resolution was seconded by Member Schmidt.
Rollcall:
Ayes: Bredesen, Richards, Schmidt, Turner, Courtney
Nays: None
Resolution adopted.
Member Turner also offered the following resolution and moved its adoption:
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING OFFERS
TO ACQUIRE THAT PART OF THE WEST ONE HALF OF THE NORTHWEST QUARTER OF
THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER AND THE EAST
ONE HUNDRED SIXTY (160) FEET OF THE NORTHWEST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 32, TOWNSHIP 28, RANGE 24 WEST OF THE
FOURTH (4TH) PRIME MERIDIAN, HENNEPIN COUNTY, MINNESOTA, WHICH LIES
NORTH OF THE WESTERLY EXTENSION OF THE SOUTH LINE OF
PARKLAWN AVENUE AS PLATTED IN EBENEZER SOCIETY FIRST ADDITION
WHEREAS, the Edina H.R.A. is carrying out a Community Development Block Grant
project known as Low and Moderate Income Housing Land Acquisition, which includes
the acquisition of the subject property; and
WHEREAS, the H.R.A. has had the subject property to be acquired appraised for its
fair market value by a qualified independent professional real estate appraiser,
who has completed written reports documenting said values; and
WHEREAS, another qualified appraiser has reviewed these appraisal reports, made
a personal on-site inspection of the subject property, and has on file a written
report setting forth his opinion as to fair market value; and
WHEREAS, the work of the appraiser and review appraiser with respect to the sub-
ject property has been performed in a competent manner in accordance with
applicable State law, the Uniform Relocation Assistance and Real Property Acqui-
sition Act, the Department of Housing and Urban Development policies and require-
ments;
NOW, THEREFORE, BE IT RESOLVED, by the Edina Housing and Redevelopment Authority
as follows:
1. That said opinions of fair market value in writing by the qualified
review appraiser are certified to be accurate and correct; and
2. That the fair market values for the subject properties, the properties
themselves, and the interests to be acquired are delineated and identified in
the H.R.A. 's report entitled "Determination of Fair Market Values for Acquisition"
dated June 18, 1981, and kept on record in the files of the H.R.A. ; and
3. That a sum of $424,251, plus the assumption by the H.R.A. of existing
special assessments are hereby adopted by the H.R.A. as just compensation for
that part of the West one half of the Northwest Quarter of the Northeast
Quarter of the Southwest Quarter and the East one hundred sixty (160) feet of
the Northwest Quarter of the Southwest Quarter of Section 32, Township 28,
Range 24 West of the Fourth (4th) Prime Meridian, Hennepin County, Minnesota,
which lies North of the Westerly extension of the South line of Parklawn Avenue
as platted in Ebenezer Society First Addition.
4. That the H.R.A. 's staff and its attorneys are hereby authorized to
acquire the subject property by direct purchase or donation for amounts not to
exceed those certified herein as just compensation, and that the Chairman and
Secretary of Edina Housing and Redevelopment Authority are hereby authorized
and directed to enter into said purchase agreement; and
5. That if the H.R.A. 's staff and its attorneys are unable to acquire any
of the subject properties by direct purchase or donation for the amounts of
just compensation, the H.R.A. will either authorize payment in excess of fair
market value or the institution of eminent domain proceedings to complete the
acquisitions.
Motion for adoption of the resolution was seconded by Member Schmidt.
Rollcall:
Ayes: Bredesen, Richards, Schmidt, Turner, Courtney
Nays: None
Resolution adopted.
AMENDMENT TO FINANCE PLAN OF SOUTHEAST EDINA REDEVELOPMENT PLAN ADOPTED.
Mr. Hughes recalled that the Amendment to the Finance Plan of the Southeast
Redevelopment Plan had been discussed some time ago by the Housing and Rede-
velopment Authority but had not been formally adopted and that adoption now is
recommended. Mr. Rosland explained that this would amend the finance plan
for the Winfield Developments, Inc. property. No discussion being heard, Member
Turner offered the following resolution and moved its adoption, stating that
the mixed use development concept had been approved and this amendment would
make the finance thereof possible:
RESOLUTION RELATING TO SOUTHEAST EDINA REDEVELOPMENT PLAN;
AMENDING THE FINANCE PLAN-DETERMINATION OF TAX INCREMENT
BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment
Authority in and for the City of Edina as follows:
1. Recitals. This Authority did on September 29, 1977, approve the
Southeast Edina Redevelopment Plan (the "Redevelopment Plan") which includes,
among other things, a proposed land use and housing plan, a proposed method of
financing projects to be undertaken in accordance with the Redevelopment Plan.
This Board has been informed that it is necessary to amend the Finance Plan-
Determination of Tax Increment contained in the Redevelopment Plan to reflect
the financing which has previously occurred in the area included within the
Redevelopment Plan Area and to include a finance plan for that area designated
as Mixed Use development in the Land Use Plan contained in the Redevelopment
Plan. There has been presented to this Board a proposed Amended Finance Plan-
Determination of Tax Increment of the Redevelopment Plan, a copy of which is
attached hereto as Exhibit A.
2. Amendment to Finance Plan-Determination of Tax Increment. The Amended
Finance Plan-Determination of Tax Increment of the Redevelopment Plan attached
as Exhibit A hereto is hereby approved, and the Finance Plan-Determination of
Tax Increment contained in the Redevelopment Plan is amended accordingly.
Motion for adoption of the resolution was seconded by Member Richards.
Rollcall:
Ayes: Richards, Schmidt, Turner, Courtney
Nays: Bredesen
Resolution adopted.
PROPERTY DISPOSITION-EDEN PLACE HEARING DATE SET. As recommended by Mr. Hughes,
Member Bredesen's motion was seconded by Member Schmidt, setting October 19, 1981,
as hearing date for property disposition, Eden Place.
Ayes: Bredesen, Richards, Schmidt, Turner, Courtney
Nays: None
Motion carried.
Member Bredesen's motion for adjournment was seconded by Member Turner and
unanimously carried. Adjournment at 7:12 p.m.
Re6 tf ly submit d,
Gordon L. Hughe
Executive Director
I
EXHIBIT A
AMENDED FINANCE PLAN - DETERMINATION OF TAX INCREMENT
The Southeast Edina Redevelopment Plan - Finance Plan - Determination of Tax
Increment is hereby amended to reflect the financing which has previously
occurred in the Project Area and to include a finance plan for that area desig-
nated as Mixed Use development in the Southeast Edina Redevelopment Plan - Land
Use Plan, as amended, and for other proposed project financing.
I. Projects and Project Costs.
(A) There has previously been financed by the H.R.A. the acquisition of
Pins No. 32, 28, 24, 31, 0003, 0004 and 0005 and the acquisition and construction
of various improvements thereto in order to provide for the development of sub-
sidized family housing units on these parcels. The public redevelopment costs
which were financed were as follows:
Land Acquisition $417,080.00
Improvements 268,106.01
Legal 6,774.04
Interest 38,617.33
Other 9,277.88
Total $739,855.26
The moneys for such costs were obtained by the H.R.A. through a loan from the City
and no bonds were issued. The loan to the City is being repaid by the H.R.A.
with tax increments received from the Project Area. The H.R.A. presently owes
the City $264,755.19 in principal on such loan and it is expected that such
principal and interest thereon is expected to be paid in full by December 31, 1981.
(B) The Public redevelopment costs to be paid by the H.R.A. for that area
designated as Mixed Use development in the Southwest Edina Redevelopment Plan-
Land Use Plan, as amended, are estimated to be as follows:
Land Acquisition $ 4,250,000
Improvements 11,834,000
Legal and other Administrative
Cost 666,000
Capitalized Interest 3,000,000
Total $19,750,000
Sale of Land Office Area 1,750,000
$18,000,000
To finance such public redevelopment costs, it is proposed that the City, upon
the request of the H.R.A. , issue approximately $18,000,000 general obligation
tax increment bonds in one or more series under the provisions of Minnesota
Statutes, Section 273.71 to 273.78, Chapter 475, and other applicable law, the
bonds to mature serially over approximately 22 years.
(c) The H.R.A. intends from time to time to finance other public redevelop-
ment costs in the Project Area, either through the issuance of general obligation
tax increment bonds or with a possible loan from the City. Presently, the H.R.A.
intends to acquire by negotiation or condemnation the North 369.50 feet of
Exhibit A
Page 2
Property Indentification Number (PID#) 32, 38, 24, 31,0006, and the east 160 feet
of the North 369.5 feet of Property Identification Number (PID#) 32, 38, 24, 31,
0003 toallow construction of approximately 100 subsidized elderly housing units.
In addition, public street access and public utilities will be provided to said
100 subsidized elderly housing units.
Land Acquisition $625,000
Improvements 100,000
Credit - Community
Development Funds (280,000)
Total $445,000
II. Repayment Schedule for Bonds and Loans.
The proposed repayment schedule for the bonds and loans for all of the
projects referred to in Section I hereof, together with the estimated schedule
of tax increments, is as set forth in the following table.
Schedule attached.
i
Exh�hit A
Page 3
$18,000,000 BOND ISSUE - DEBT SERVICE SCHEDULE
DEBT SERVICE
YEAR PP.INCIPAL INTEREST 10% TAX P,EVE�IME OVER - (UNMER)
1982 $ 900,000 $ 900,000 $ 518,500 $ (381,500)
1983 1,800,000 1,800,000 664,700 (1,516,800)
1984 $ 450,000 1,800,000 2,250,000 906,400 (2,860,400)
1985 450,000 1,755,000 2,205,000 1,283,200 (3,782,200)
1986 450,000 1,710,000 2,160,000 1,826,100 (4,116,100)
1987 450,000 1,665,000 2,115,000 2,231,000 (4,000,100)
1988 450,000 1,620,000 2,070,000 2,541,300 (3,528,800)
1989 600,000 1,575,000 2,175,000 2,657,500 (3,046,300)
1990 600,000 1,515,000 2,115,000 2,790,400 (2,370,900)
1991 600,000 1,455,000 2,055,000 2,929,900 (1,496,000)
1992 600,000 1,395,000 1,995,000 3,047,100 ( 443,900)
1993 600,000 1,335•,000 1,935,000 3,169,000 790,100
1994 900,000 1,275,000 2,175,000 3,295,800 1,910,900
1995 900,000 1,185,000 2,085,000 3,427,600 3,253,500
1996 900,000 1,095,000 1,995,000 3,564,700 4,823,200
1997 900,000 1,005,000 1,905,000 3,671,600 6,589,800
1998 900,000 915,000 1,815,000 3,781,800 8,556,600
1999- 1,350,000 825,000 2,175,OCO 3,895,300 10,276,900
2000 1,350,000 690,000 2,040,000 4,012,200 12,249,100
2001 1,800,000 555,000 2,355,000 4,132,500 14,026,600
2002 1,800,000 375,000 2,175,000 4,215,100 16,066,700
2003 1,950,000 195,000 2,145,000 4,299,400 18,221,100
$18,000,000 $26,640,000 $44,640,000 S62,861,100
REPAYMENT SCHEDULE LOANS FOR CITY OF EDINA
PRINCIPAL INTEREST TOTAL
1981 $264,755 $13,238 $277,993
1982 445,000 22,250 467.250
$709,755 $35,488 $745,243
Exhibit A
Page 4
The repayment schedule is based upon the following assumptions:
1. The bonds will bear interest at 10% per annum and the loans will bear
interest at 5% per annum.
2. That tax increment revenues will increase at 2 to 6% per year due to
increased valuation and mill rate.
3. That the development of the area designated as Mixed Use development
in the Southeast Edina Redevelopment Plan - Land Use Plan, as amended,
will occur in four phases as follows:
PHASES: TAXES BY
PHASES
No. 1 - (152 residential units and 99,800 square feet of
office building) - (1982 - 1983) $219,500
No. 2 - (116 residential units and 204,900 square feet of
office building) - (1983 - 1984) 461,200
No. 3 - (206 residential units and 88,900 square feet of
office building) - (1984 - 1985) 478,700
No. 4 - (126 residential units and 103,000 square feet of
office building) (1985 - 1986) 337,500
4. That tax increment income for the Project Area is presently $459,598
per year.
ESTIMATED REVENUES - SCHEDULE ATTACHED
Exhibit A
Page 5
C014PLETE PROJECT - ESTIMATED REVENUES
PERCENT OF PRESENT NEW COMBINED
INCREASE
BASE INCREASE BASE INCREASE
1980 $ 420,000
1981 8% 420,000 $ 33,600
1982 6 420,000 25,200 S 73,300 $ 518,500
1983 6 420,000 25,200 219,500 664,700
1984 6 420,000 25,200 461,200 906,400
1985 5 529,200 26,500 754,000 $ 37,700 1,283,200
1986 5 555,700 27,800 1,270,400 39,600 1,826,100
1987 5 583,500 29,200 1,647,500 65,500 2,231,000
1988 5 612,700 30,600 1,928,600 85,600 2,541,300
1989 5 643,300 32,200 2,014,200 100,700 2,657,500
1990 5 675,500 33,800 2,114,900 105,700 2,790,400
1991 4 709,300 28,400 2,220,600 88,800 2,929,900
1992 4 737,700 29,500 2,309,400 92,400 3,047,100
1993 4 767,200 30,700 2,401,800 96,100 3,169,000
1994 4 797,900 31,900 2,497,900 99,900 3,295,800
1995 4 829,800 33,200 2,597,800 103,900 3,427,600
1996 3 863,000 25,900 2,701,700 81,000 3,564,700
1997 3 888,900 26,700 2,782,700 83,500 3,671,600
1998 3 915,600 27,500 2,866,200 86,000 3,781,500
1999 3 943,100 28,300 2,952,200 88,600 3,895,300
2000 3 971,400 29,100 3,040,800 91,200 4,012,200
2001 2 1,000,500 20,000 3,132,000 62,600 4,132,500
2002 2 1,020,500 20,400 3,194,600 63,900 4,215,100
2003 2 1,040,900 3,258,500 4,299,400
$62,861,100
II