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HomeMy WebLinkAbout1986-07-21 HRA Regular Meeting EDINA HOUSING AND REDEVELOPMENT AUTHORITY EDINA CITY COUNCIL MINUTES OF JOINT MEETING • JULY 21, 1986. Answering rollcall were Commissioners Bredesen, Kelly, Turner and Courtney. MINUTES of the H.R.A. Meeting of July 7, 1986 were approved as submitted by motion of Commissioner Bredesen, seconded by Commissioner Kelly. Ayes: Bredesen, Kelly, Turner, Courtney Motion carried. CONVEYANCE OF PHASE VI/EDINBOROUGH CONDOMINIUMS APPROVED. Gordon Hughes, HRA Executive Director, advised that construction will now begin on the Condo- minium Development Phase IV of the Edinborough project and that conveyance of the land is recommended. Commissioner Turner introduced the following resolution and moved its adoption: RESOLUTION RATIFYING AND AFFIRMING THE EXECUTION OF VARIOUS OTHER DOCUMENTS BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") , as follows: 1. Recitals. The HRA and the Edina City Council have previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 462.421, sub- division 15, designated as the Southeast Edina Redevelopment Plan (the "Plan") . Acting pursuant to the Plan, the HRA has acquired certain land in the area included in the Plan and it has been proposed that the HRA sell and transfer a portion of such land to the East Edina Housing Foundation (the "Foundation") , pursuant to a Land Sale Agreement by and between the HRA and the Foundation (the "Agreement") . By a resolution adopted May 6, 1985, the HRA approved the form of the Agreement • and authorized the Chairman and Secretary or Assistant Secretary of the HRA to execute and deliver the Agreement on behalf of the HRA with such modifications as are deemed appropriate and approved by the attorney for the HRA and the Executive Director of the HRA. Pursuant to such authorization the Chairman and the Secretary of the HRA have executed and delivered the Agreement to the Foundation. In connection with the transactions contemplated by the Agreement there has been prepared and submitted to the HRA (i) a Land Sale Agreement And Contract for Private Redevelopment for Condominium Development Phase IV, by and between the HRA, the Foundation and Edinborough Condominium Partnership (the "Phase IV Agreement") , and (ii) an Amendment No. 3 to the Agreement (the "Amendment") , both dated as of July 10, 1986. 2: Authorization for Execution and Delivery of Documents. The terms and provisions of the Phase IV Agreement and of the Amendment are hereby approved subject to such modifications as are deemed appropriate and approved by the attorney for the HRA and the Executive Director of the HRA, which approval shall be conclusively evidenced by the execution of such documents by the Chairman and Secretary or Assistant Secretary of the HRA. The Chairman and Secretary or Assistant Secretary of the HRA are directed to execute such documents as so modified. The Chairman and Secretary or Assistant Secretary of the HRA are also authorized and directed to execute such other instruments as may be required to accomplish the transaction contemplated by such documents including, but not limited to, any amendments or supplements to the Agreement, and such other agreements as may be necessary to accomplish the transactions contemplated by the Agreement, as amended. The execution of such documents and of any such amendments, supplements or agreements by the Chairman and the Secretary or Assistant Secretary of the HRA shall be • conclusive evidence of the approval of such documents by the HRA in accordance with this Resolution. H.R.A./Council Minutes of 7/21/86 Page Two Dated as of the 21st day of July, 1986. Attest. Chairman Executive Director The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Bredesen, and upon vote being taken thereon the following voted in favor thereof: Bredesen, Kelly, Turner, Courtney and the following voted against the same: None whereupon said resolution was declared passed and adopted and was signed by the Chairman and his signature attested by the Executive Director. JOINT HRA/COUNCIL MEETING CONVENED. Mr. Hughes proposed that a joint meeting of the HRA and Council be convened to consider concurrently the Grandview Redevelopment Project and the Final Develop- ment Plan for Jerry's Shopping Center and that action be taken by the HRA and the Council individually as required. Mayor Courtney thereupon convened the joint meeting of the HRA and the Council. GRANDVIEW REDEVELOPMENT PROJECT AND FINAL DEVELOPMENT PLAN FOR JERRY's SHOPPING CENTER APPROVED. Affidavits of Notice were presented by the Clerk, approved and ordered placed on file. Mr. Hughes recalled that on February 3 and 24 and March 17, 1986, the HRA reviewed concept plans concerning the Grandview redevelopment area. Three projects were discussed in those meetings: 1) a public parking ramp/Public Works facility east of Jerry's Shopping Center, 2) an upgrading of Link Road and 3) a redevelopment of the Lewis Engineering/Kunz Oil properties. At that time the HRA gave conceptual approval to the parking ramp/Public Works facility and the upgrading of Link Road with the understanding that staff would return with more detailed information prior to final approval. Since the March 17, 1986 meet- ing staff, consultants for the City and representatives of Jerry's Enterprises have worked together to formulate plans for Jerry's expansion as well as for the public parking ramp/Public Works facility. That plan with regard to Jerry's proposed approximate 40,000 square foot addition has been reviewed by the Develop- ment and Planning Commission and was approved at their last meeting. Planner Craig Larsen advised that the proponent has submitted plans for a 3,650 square foot addition to the hardware atore and a 37,475 square foot addition to the main complex. The addition would extend the existing building 60 feet to the north, or to the approximate location of the existing retaining wall. A portion of the expansion would be five stories with the remaining being additions to the existing second story office space. The first floor is proposed as retail space, the second floor as a combination of office and retail, with exclusive office use on the top three floors. Mr. Larson pointed out that the proposed additions require 206 additional parking spaces. The parking would be provided in a new, two level public parking ramp. The ramp would use air rights and be located above a Public Works storage facility. The lower level would be accessed from the Vernon/ Interlachen signalized intersection around the rear of the Edina Liquor Store and the upper level would be accessed from the existing main entrance to the shopping center. The ramp would provide 272 parking spaces, with the 66 surplus spaces in the ramp replacing 36 surface spaces lost due to construction and redesign of existing parking and would provide a 30 space cushion to relieve existing shortages. A more recent count from the consultant has increased the count to 280 ramp park- ing spaces. Additional landscaping would be provided where possible within the H.R.A./Council Minutes of 7/21/86 Page Three • limitations of the site and Hennepin County's willingness to allow landscaping on right of way areas. The parking ramp would primarily serve employees of Jerry's and tenants of the office space. Grocery, restaurant and general retail parking would continue to use the surface parking. The parking area in front of the main complex would be regraded, surfaced and reoriented 90 degrees from the present alignment. The northerly end of the lot near the main entrance would be lowered approximately eight feet. A retaining wall would be installed adjacent to the Vernon Avenue right of way. The subject property is part of the Grandview Area Tax Increment District. A public parking ramp designed to serve the commercial uses in the area was anticipated by the Grandview Plan. As proposed the two level ramp would occupy the air rights above the existing Public Works storage buildings which would be removed and the ground. level would become the new storage facility. Mr. Larsen concluded that the proposed plan will significantly improve the way the Center functions. The total quantity of parking should be adequate and circulation within the lots will be greatly improved. The construction of the ramp is the key to this proposal. No expansion is possible without the additional parking provided in the ramp. Member Kelly asked what the ordinance requirements were and said that she was concerned that employees will use the surface parking spaces and that the parking problems that now exist will not be solved. Mr. Larsen explained that the ordinance requires 5 spaces per 1,000 square feet for shopping centers and that in excess of 600 spaces will be provided by surface and ramp parking. The intent would be to operate the ramp similarly to the ramp at 50th/France whereby parking stickers . would be available for employees working in the area. In response to Member Kelly's questions about the parking, Arthur Dickey, architect for the project, clarified that there are now 403 existing spaces in the shopping center complex; •' that 280 will be added for a total of 683; that 36 surface spaces will be lost; and that after construction there will be 647 parking spaces for the entire site. He said that congestion will be eliminated because the surface parking area will be regraded on a level plain and the main entrance will be re-done. Member Turner asked if the ramp would be expandable and if there would be a way to control the mix of traffic at the signalized intersection of Vernon/Interlachen which she felt would be important. Mr. Larsen responded that possible ramp expansion has not been considered at this point. With regard to traffic control, Engineer Fran Hoffman said that the approach to the signal from the subject property would have to be reconfigured in total with the addition of islands to make it work better. Mr. Hughes then presented the following details and estimated cost for the parking ramp/Public Works facility: Number of tiers-two tiers above Public Works facility, Number of Parking Spaces-280, Floor Area of Public Works Building-27,600 square feet. Preliminary Cost Estimate: Demolition $50,000, Ramp $1,336,900, Garage $430,200, Design/Inspection $130,000, Contingency $137,000 for a total cost estimate of $2,084,100. The estimated cost for the Public Works garage is based upon a heated facility equipped with restrooms. This estimate would be reduced by approximately $100,000 if heat and restrooms were eliminated. Mr. Hughes pointed out that Mr. Dickey had estimated that it would cost approximately $175,000 more to construct a free standing building with the same floor area without taking advantage of the structural elements of the ramp. Mr. Hughes commented that staff has been talking with Robert .Shaddock, representing Jerry's Enterprises, concerning a redevelopment contract with the HRA. The major element of this contract would be an acceptance by Jerry's Enterprises of a special assessment equal to 20% of • construction costs of the parking ramp. Based upon the estimates this assessment - would range from approximately $265,000 to $300,000 depending upon the allocation of costs. Staff would propose that this special assessment be used to defray costs of the Public Works garage together with the capital improvement funds budgeted to construct the garage. Other elements of the contract would include H.R.A./Council Minutes of 7/21/86 Page Four an obligation for Jerry's Enterprises to undertake and complete the proposed private improvements to the shopping center and to accept an annual assessment for ramp maintenance similar to that used at 50th and France. From a tax increment financing standpoint, Mr. Hughes stated that an analysis shows that the tax increment district would be able to amoritize bonds issued for con- struction of the Public Works facility. The assumptions used for the analysis were a 2% growth in general in the assessed valuation of the district, plus the valuation of Jerry's addition that is being considered, plus the construct- ion of the Woodhaven project on Summit Avenue. At this point in time, any increments which may be forthcoming from the Biltmore redevelopment have been ignored. As to funding of the Public Works garage, Mr. Hughes summarized that $300,000 would come from the City's capital improvement plan (i.e. $75,000 per year) . Staff would propose to revise the C.I.P. to fund the garage in 1987 and 1988. These funds, plus the proposed assessment to Jerry's would provide the necessary funds for construction of the garage. If the HRA/Council wishes to proceed with this project, the following actions will be required: 1) Council should grant final development plan approval for Jerry's proposed improvements; 2) A redevelopment contract embodying the terms of the proposed project must be authorized by the HRA; 3) Staff should be authorized to prepare final plans and solicit bids for the ramp/Public Works garage, and 4) A bond sale must be authorized to finance the parking ramp. As to the bond sale, Mr. Hughes noted that the sale of additional bonds for Edinborough as well as temporary improvement bonds are proposed later on this agenda. If the HRA/Council wishes to proceed with this project, it would be prudent to authorize Grandview bonds at the same time. Staff would recommend that $2,000,000 be provided for Grandview which should cover the parking ramp as well as Link Road improvements in connection with the anticipated Biltmore project. Member Bredesen asked what tax increment would come from Jerry's addition and what the logic was for including the Woodhaven project in the tax increment assumptions. Mr. Hughes said that the addition would have an assessed value of approximately $800,000 which would equate to taxes of about $80,000 annually, assuming a mill rate of 10%. For purposes of the analysis it was assumed that the entire tax increment district would be pledged to any debt that would be incurred by the district. Member Turner asked if there would be tax increment funds to do the Link Road project if this project is approved. Mr. Hughes replied that staff has always viewed the Link Road project as tied to the Biltmore redevelopment, both from a planning and tax increment standpoint. If the Link Road improvement can be constructed with minimal expenses for land acquisition there would probably be enough tax increment generated to do that project. If large land acquisition is necessary, the Link Road project would have to rely on the Biltmore redevelopment. After further discussion by the Council, Mayor Courtney called for comment from the public. A resident at 6620 Gleason Road commented that she was concerned that the proposed addition to Jerry's would increase the parking congestion. A resident at 6616 Gleason commented that she would like to see the shopping center remain the way it is at present. No further comment being heard, Member Bredesen introduced the following resolution and moved its adoption: RESOLUTION APPROVING FINAL DEVELOPMENT PLAN FOR JERRY'S SHOPPING CENTER BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that the Final Development Plan for Jerry's Shopping Center, 5001-5125 Vernon Avenue, presented at the regular meeting of the City Council of July 21, 1986, be and is hereby approved. Motion for adoption of the resolution was seconded by Member Turner who commented that her support of the project was based on: 1) That it would address the traffic and parking concerns in the area which were identified when the Tax Increment H.R.A./Council Minutes of 7/21/86 Page Five • District was established in 1984, 2) That this was an opportunity for a public- private partnership in construction of the ramp, and 3) That because this is the commercial area for the northwestern portion of the City it is important that continued investment occurs to insure quality for the area. Rollcall: Ayes: Bredesen, Turner, Courtney Nays: Kelly Resolution adopted. Commissioner Bredesen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING REDEVELOPMENT CONTRACT BE IT RESOLVED by the Edina Housing and Redevelopment Authority (HRA) that it hereby authorizes and directs the drafting of a Redevelopment Contract between the HRA and Jerry's Enterprises for construction of the addition to Jerry's Shopping Center, embodying the terms of the proposed project as presented. Motion for adoption of the resolution was seconded by Commissioner Turner. Rollcall: Ayes: Bredesen, Turner, Courtney Nays: Kelly Resolution adopted. Commissioner Bredesen introduced the following resolution and moved its adoption: RESOLUTION APPROVING PROJECT AND DIRECTING ADVERTISEMENT FOR BIDS BE IT RESOLVED BY THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY: 1. The preliminary plans for a public parking ramp and public works garage . heretofore presented are hereby approved and preparation of final plans are authorized. 2. The Clerk shall cause to be published in the Edina Sun and Construction Bulletin a notice of bids for construction of the public parking ramp and public works garage. Motion for adoption of the resolution was seconded by Commissioner Turner. Rollcall: Ayes: Bredesen, Turner, Courtney Nays: Kelly Resolution adopted. Member Bredesen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING BOND SALE BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that it hereby approves and authorizes the sale of $2,000,000 General Obligation Tax Increment Bonds to finance the Grandview Redevelopment Project heretofore presented and approved. Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Bredesen, Turner, Courtney Nays: Kelly Resolution adopted. Commissioner/Member Bredesen then moved adjournment of the joint HRA/Council meeting. Motion was seconded by Commissioner/Member Turner and carried unanimously. . There being no further business on the HRA Agenda, it Courtney j ned the meeting. on L. Hdg ho Executive Directo