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HomeMy WebLinkAbout1987-09-14 HRA Regular Meeting MINUTES EDINA HOUSING AND REDEVELOPMENT AUTHORITY • SEPTEMBER 14, 1987 Answering rollcall were Commissioners Kelly, Richards, Smith, Turner and Courtney. MINUTES of the HRA Meeting of August 17, 1987 were approved as submitted by motion of Commissioner Smith, seconded by Commissioner Turner. Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. BID AWARDED FOR WALL PADDING FOR EDINBOROUGH PARK. Manager Rosland presented bids for wall padding for Edinborough Park showing Haldeman-Homme, Inc. at $6,474.00 and Kokesh at $13,250.00. Motion of Commissioner Turner was seconded by Commissioner Kelly for award of bid to recommended low bidder, Haldeman-Homme, Inc. for wall padding at $6,474.00. Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. The meeting was adjourned to the Edina Council public hearing on Final Development Plan for Cineplex Odeon Corporation by motion of Commissioner Turner, seconded by Commissioner Smith. Motion carried. The Edina Housing and Redevelopment Authority re-convened with the Council for the public hearing on the Final Development Plan for Building Expansion - Cineplex Odeon Corporation and action was taken individually as recorded. FINAL DEVELOPMENT PLAN APPROVED FOR CINEPLEX ODEON CORPORATION (EDINA THEATRE) : PUBLIC HEARING DATE SET (11/2/87) FOR RAMP EXPANSION PROJECT. Gordon Hughes, HRA • Director, recalled that on July 6, 1987 the City Council and the HRA conducted a public hearing concerning the request of Cineplex Odeon to expand the Edina Theatre. In connection with the theatre expansion, Cineplex requested that the City/HRA proceed with a 100+ space expansion to the 51st Street parking ramp. Cineplex suggested that it would accept a special assessment equaling 20% of the ramp expansion costs with the balance proposed to be financed through tax increment from the existing tax increment financing district. The Council/HRA continued the hearing and asked staff to: 1) review parking demand in the area, 2) review parking expansion alternatives, especially the concept of providing parking at 49 1/2 Street in addition to or in place of the proposed expansion to the 51st Street ramp, and 3) notify a larger area surrounding 50th and France. A hearing notice has been mailed to all property owners within a 500 foot radius of the theatre. Mr. Hughes advised that staff has completed parking counts in the 50th and France area and has also reviewed the files of parking counts that have been done over the years since November, 1978. A graphic was presented showing the percent of parking space occupied in the 49 1/2 Street lot (50 spaces) , the north ramp (275 spaces) and the south ramp (302 spaces of which 80 are designated for contract parking only) . In looking at the counts, staff concluded that it was difficult to see a progression of parking occupancy at 50th and France over the years; the highest overall counts were on 11/10/78. As years have gone by a parking distribution problem can be seen whereby more and more parking at 50th and France seems to be located to the 49 1/2 Street parking lot as well as the north parking ramp. At the July 6, 1987 hearing the Council/HRA reviewed a parking study prepared by Barton-Aschman Associates. As a follow-up, Barton-Aschman Associates has considered additional parking demand in the 50th and France area that would come from additional development, specifically the Arby's site as well as the property that is owned by Lunds which is directly north of the south • parking ramp. Their conclusion in that analysis was that an addition of approximately 100 spaces in the 50th and France area would not only provide enough parking for present demand but also expansion of the theatre and future expansion HRA Minutes of 9/14/87 Page Two of under-utilized sites as well. Mr. Hughes said that Walker Parking Consultants were asked to study three parking sites in the 50th and France area for potential • expansion: Site 1: 49 1/2 Street, Site 2: Clancy's parking lot and Site 3: expansion of the south parking ramp. Net gain for Site 1 would be 81 spaces; for Site 2 would be 36 spaces and for Site 3 would be 111 spaces. From a cost standpoint, Site 1 cost per added spaces would be $8,700; Site 2 cost per added spaces would be $6,100; and Site 3 cost per added spaces would be $6,150. Staff has concluded that they agree with the Barton-Aschman analysis that an additional 100 parking spaces at 50th and France should accommodate the needs of the theatre expansion as well as other uses. Staff concurs with the request of the 50th and France Business & Professional Association that, if the theatre expansion is approved and if parking is added, that counts should be done following completion of the additional parking during the Thanksgiving/Christmas season of next year and then place the matter on the HRA/Council agenda in January of 1989 to assess whether any additional parking should be considered at 50th and France. Continuing, Mr. Hughes said that, after reviewing the alternatives of Walker Parking Consultants, staff would recommend that the 51st Street ramp be expanded as opposed to constructing parking elsewhere for these reasons: 1) This expansion is the most cost effective, 2) The expanded ramp will accommodate peak theatre demand during the evening hours, 3) Access to the south ramp is easier and less congested than access to the parking area served by 49 1/2 Street, 4) Expansion of the south ramp will be better located to accommodate future in-fill development, 5) Ramp construction at 49 1/2 Street will be adjacent to low density residential development. In order to address the parking distribution problem, staff would suggest that some or all employee parking be moved to the south parking ramp. For example, if 50 employee parkers were relocated to the south ramp, it is estimated that each ramp would be approximately 75% occupied during present peak demand. Mr. Hughes recalled that at the July 6, 1987 meeting, several alternatives were pointed out to be considered for financing the ramp expansion. Cineplex Odeon's • proposal is to pay 20% of the ramp costs by way of special assessment which is consistent with how the initial ramps were developed and paid for at 50th and France. Other alternatives are: 1) assess 100% of the ramp costs to Cineplex, 2) finance ramp costs solely through tax increment financing, 3) accept Cineplex's proposal to pay 20% of ramp costs and assess other businesses which have expanded since 1975 a certain percentage of ramp costs, 4) assess the entire commercial district, including Cineplex, on an equal basis for 20% of ramp costs, or 5) consider different cost sharing percentages. From an action standpoint, Mr. Hughes said the issues are: 1) approval by the Council of the Final Development Plan for the theatre expansion and 2) approval by the HRA of the addition to parking; both approvals should be subject to the approval of an improvement hearing for a project to add another level to the south ramp, with notice given to property owners who could be assessed. Member Smith commented that several residents of The Lanterns condominiums have asked if they will be included in the proposed assessment. Mr. Hughes said that staff would recommend assessment only to non-residential property. Member Smith asked if the theatre had been assessed when the ramp was originally constructed and if the proposed 20% of the ramp a ddition costs which Cineplex has offered to pay equates to the original formula used for assessing the original costs. Mr. Hughes replied that all commercial property paid an assessment on a floor area basis of approximately $2.15 per square foot. He explained that the actual assessment is set at the assessment hearing following construction of the project. Attorney Erickson commented that in this case Cineplex has offered to pay 20% of the costs and if the Council accepts that offer a developer's agreement would be required in which they could be asked to waive all appeals of the assessment. Manager Rosland asked if there are tax increments available for the ramp. Mr. Hughes said that tax increments • exceed the annual bond and interest payments by approximately $150,000 and will increase in the future and those excess increments would be available to finance this project. Member Richards commented that a case has not been made as to need in support of the ramp expansion and that he did not feel tax increment financing HRA Minutes of 9/14/87 Page Three should be used for this project. He added that if the theatre wants the addition to the ramp they should pay for it. Member Turner commented that at the July 6 • hearing one of the concerns was that this was a chance to take a look at the overall district as to parking needs and what potential future development remains for that area. In response staff has come back with the aid of a consultant and identified both a parking distribution problem and a future parking space need. The proposal to add 100 spaces to the 51st Street ramp and to move some of the employee parking to the south ramp meets the immediate and longer term needs of the district as a whole. Member Turner said that she supported the addition to the south ramp. As to the theatre proposal, she said it will add to the health of the commercial district. Further, she said that the conditions recommended by staff at the July 6 meeting were important, especially that the theatre portion of the property should be limited to theatre use as a condition of the parking variance. Thomas Kroth, The Lanterns condominiums, presented a parking survey of the 50th and France area taken during the months of July and August. His conclusions were: 1) there is ample parking capacity both day and night in the south side ramp but parking is tight during business hours in the north parking ramp, and 2) the north parking ramp during evenings is mostly empty. He suggested the following recommendations: 1) south ramp - install electronic sign at contract parking entrance to open this area for general parking in the evenings, 2) install new lighting system in north ramp, 3) allow 3 hour parking on west side of France Avenue and on the lower level of both north and south ramps after 6 p.m. , and 4) add more parking capacity on north side by building a ramp on the Clancy parking lot. Peter Kofman, professional engineer representing Cineplex Odeon Corporation, responded to several issues that had been raised. Ramp funding - the 20% contribution from Cineplex Odeon for the ramp addition was taken as a given in terms of the formula used in this method of financing. Additional funding - he would have to defer to Cineplex Odeon. The 20% was based on an estimated $650,000 cost for the ramp addition. This is proposed funding in addition to the 2.5 • million complex Cineplex is proposing to build and includes retention of the facade and accommodating the existing retail uses as requested by the Heritage Preservation Board and the 50th and France Business & Professional Association. Theatre industry - there is fierce competition between the theatre groups, the distributors are not supporting the local film houses as they used to, so in order to secure film which will make a profit it is necessary to have a first class facility in order to attract both the film and the changing needs of the patrons. If Cineplex cannot come to some resolution in terms of the overall development it will not be economical to run the theatre. Hosmer Brown, speaking in behalf of the 50th and France Business and Professional Association, said he agreed that the parking stress is on the north side. He said the original 1975 HRA plan called for eventual development of the Arby's site and the Lund's property site and that the south ramp was built for that additional 36,000 square feet of office or retail development. At first the Association had some real reservations about the proposed theatre expansion but after many weekly meetings they have concluded that the area does need a first class theatre. Additional parking is needed for the theatre expansion but parking will also be needed to accommodate the future additional 36,000 square feet of office or retail. He urged the Council to give serious consideration to the ramp addition and Cineplex's offer to fund 20% of the cost so that future development would not be precluded because parking was already to capacity. David Koski, Barton-Aschman Associates, confirmed their calculations that construction of 111 new parking spaces in the south ramp would accommodate the peak parking demand for the expanded theatre as well as peak parking for future development of the Arby's and Lund's sites. He added that the fact that the primary theatre parking occurs between the hours of 5 and 9:30 p.m. basically means that the bulk of the 111 new parking spaces would be available full time • during the week days to accommodate the future retail and office development. Dean Lundgren, manager of Arby's at 5020 France Avenue, asked if the ramp would be closed during the proposed construction. Engineer Hoffman replied that it would limit the amount of use on the lower level for one construction season. Perry HRA Minutes of 9/14/87 Page Four Anderson, member of the 50th and France Business & Professional Association, commented that he wanted to thank the Council for keeping traffic open one way • during construction on West 50th Street this summer as it definitely helped the businesses economically. Member Richards reiterated his position that if additional parking is needed for the proposed theatre expansion they should pay for it and if additional parking is needed when and if future development occurs that issue should be addressed at that time. Member Kelly commented that she believes the theatre improvement will enhance that area, that was the intent when the City established the 50th and France Tax Increment District, and that the purpose of a tax increment district is to help improve an area of the City. The following resolutions were adopted by the Council: Member Kelly moved approval of the Final Development Plan for Cineplex Odeon Corporation and adoption of the following resolution, conditioned on approval by the City Council of an improvement hearing of a project to add another level to the 51st Street ramp, and subject to the following requirements: 1) that Cineplex Odeon Corporation be assessed not less than 20% of the cost of the 51st Street parking ramp expansion; 2) that the theatre portion of the property be limited to theatre use only as a condition of the parking variance; 3) the removal of paint by a method approved by staff; 4) that granting of a permit to occupy air rights above the City's sidewalk easement be subject to the condition that the building be limited to theatre use only; 5) provision for trash storage within the building acceptable to the City staff; 6) execution of an agreement by the developer for payment of an assessment for the cost of the ramp addition to be determined at the public hearing for the ramp expansion project, and waiver of objections to and appeals from such assessment; and 7) that the 1tA agree to construct the additional level to the 51st Street ramp, which agreement is expected to be made on or after the public improvement hearing for the ramp addition: RESOLUTION APPROVING FINAL DEVELOPMENT PLAN FOR CINEPLEX ODEON CORPORATION • BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that the Final Development Plan for Cineplex Odeon Corporation, 3911 hest 50th Street, presented at the regular meeting of the City Council of September 14, 1987, be and is hereby approved, subject to the conditions and requirements above set out. Motion for approval of the Final Development Plan and adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Kelly, Smith, Turner, Courtney Nays: Richards Motion carried; resolution adopted. Member Kelly then introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR PUBLIC HEARING ON 51ST STREET PARKING RAMP IMPROVEMENT 1. The City Engineer, having submitted to the Council a preliminary report as to the feasibility of the proposed Parking Ramp Improvement described in the form of Notice of Hearing set forth below, and as to the estimated cost of such improvements, said report is hereby approved and directed to be placed on file in the office of the City Clerk. 2. The City Council shall meet on Monday, November 2, 1987, at 7:00 p.m. in the Edina City Hall, to consider in public hearing the views of all persons interested in said improvement. 3. The City Clerk is hereby authorised and directed to cause notice of the time, place and purpose of said meeting to be published in the official newspaper once a week for two successive weeks, the second of which publication is to be not less than three days from the date of said meeting, and to mail notice to all affected properties in substantially the following form: • (OFFICIAL PUBLICATION) CITY OF EDINA 4801 V. 50TH STREET EDINA, MINNESOTA 55424 HRA Minutes of 9/14/87 Page Five NOTICE OF PUBLIC HEARING PARKING RAMP - P-PIB • The Edina City Council and Housing A Redevelopment Authority of Edina will meet at the Edina City Hall on Monday, November 2, 1987 at 7:00 P.M. , to consider the following proposed improvement to be constructed under the authority granted by Minnesota Statutes Chapter 429. The approximate cost of said improvement is estimated by the City as set forth below: ESTIMATED COST G RAMP ADDITION i�. 51st Street $760,000.00 PARKIN ( ) The area proposed to be assessed for a portion of the cost of the proposed improvement includes the 50th and France Avenue Business District. Marcella M. Daehn, City Clerk Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Kelly, Smith, Turner, Courtney Nays: Richards Resolution adopted. Motion for adjournment of the HRA meeting was made by Commissioner Kelly, ec ed by Commissioner Turner and carried unanimously. Executive i e for • •