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HomeMy WebLinkAbout1992-07-20 HRA Regular Meeting MINUTES • OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JULY 20, 1992 ROI.T..CAI: Answering rollcall were Commissioners Kelly, Paulus, Rice, Smith, and Richards. CONSENT AGENDA ITEMS ADOPTED Motion was made by Commissioner Smith and was seconded by Commissioner Kelly to approve the BRA Consent Agenda items as presented. Rollcall: Ayes: Kelly, Paulus, Rice, Smith, Richards Motion carried. *MINUTES OF THE 14EETING OF JULY 6. 1992, APPROVED Motion was made by Commissioner Smith and was seconded by Commissioner Kelly to approve BRA Minutes of July 6, 1992. Motion carried on rollcall vote - five ayes. RELEASE GRANTED OF OUTLOTS F AND G SOUTH EDINA DEVELOPMENT ADDITION. FROM CONTRACT FOR DEED Executive Director Hughes explained that the Edina HRA is the vendee on a Contract for Deed with the Hedbergs relative to the undeveloped property in Centennial Lakes. Included in the Contract for Deed are Outlots F and G of the South Edina Development Addition. These outlots are located at the intersection of Edinborough Way and Minnesota Drive. Outlot F measures 23,269 square feet and Outlot G measures 117,729 square • feet. Outlot G is located within the City of Bloomington. According to the overall development plan for Centennial Lakes, Outlots F and G comprise the site for a possible hotel development. The Redevelopment Agreement for Centennial Lakes recognizes that the HRA's sole responsibility with respect to Outlot G was to act as a conduit for passing title from the seller to the ultimate developer of the site and to cooperate in obtaining an exemption from real estate taxes for this outlot. As to the latter point, the Minnesota Tax Court, in 1991, ruled that Outlot G did not meet the test for exemption from real estate taxes. Therefore, the underlying owner of the property and the developer, but not the HRA, are responsible for the payment of real estate taxes for Outlot G on an ongoing basis. Based upon these circumstances, the vendor of the Contract for Deed (Hedbergs) has requested that Outlots F and G be released from -the contract. If released, the vendor would be in a better position to contest the valuation of the property with the City of Bloomington and Hennepin County. Director Hughes said that, after conferring with Attorney Gilligan, they believe that the HRA is not adversely affected by this release and would recommend the release subject to the following conditions: 1) The principal balance owed under the contract must be reduced on a square foot basis based upon the area of Outlots F and G. 2) The HRA must retain rights to allow its developer to utilize the billboard located on the Bloomington parcel for advertisement of the Centennial Lakes project. 3) Outlots F and G must continue to be regulated by the traffic agreement entered into between the cities of Bloomington, Edina and the South Edina Development Corporation. H.R.A. Minutes - 7/20/92 Page 2 ICI Commissioner Smith moved adoption of the following resolution, subject to 1) The principal balance owned under the contract be reduced on a square foot basis based upon the area of Outlots F and G. 2) The HRA retain rights to allow its developer to utilize the billboard located on the Bloomington parcel for advertisement of the Centennial Lakes project. 3) Outlots F and G must continue to be regulated by the traffic agreement entered into between the cities of Bloomington, Edina and the South Edina Development Corporation: RESOLUTION APPROVING AMENDMENT TO CONTRACT FOR DEED BE IT RESOLVED by the Edina Housing and Redevelopment Authority that it hereby approves the amendment to the Contract for Deed for Outlots F and G of the South Edina Development Addition, between the Hedbergs (vendor) and the Edina Housing and Redevelopment Authority (vendee), releasing Outlots F and G; BE IT FURTHER RESOLVED that the Chairman and Secretary are hereby authorized to execute the amendment to the Contract for Deed. Motion for adoption of the resolution was seconded by Commissioner Rice. Rollcall: Ayes: Kelly, Paulus, Rice, Smith, Richards Motion carried. *CLAIMS PAID Motion was made by Commissioner Smith and was seconded by Commissioner Kelly to approve payment of the following HRA claims as shown in detail on the Check Register dated July 16, 1992, and consisting of one page totallin g $16,329.17. Motion carried on rollcall vote - five ayes. There being no further business on the HRA Agenda, Chairman Richards declared the meeting adjourned. Executive Director