Loading...
HomeMy WebLinkAbout2012-06-19 HRA Regular Meeting • MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY HELD AT CITY HALL JUNE 19,2012 11:15 P.M. CALL TO ORDER Chair Hovland called the meeting to order at 11:15 P.M. on June 19, 2012. ROLLCALL Answering rollcall were Commissioners Bennett, Brindle, Sprague, Swenson and Chair Hovland. MINUTES OF THE REGULAR MEETING OF APRIL 17,2012,APPROVED Motion made by Commissioner Swenson and seconded by Commissioner Sprague approving the Minutes of the Regular Meeting of the Edina Housing and Redevelopment Authority for April 19, 2012. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. 111.AMENDMENT NO. 1 TO SOUTHDALE REDEVELOPMENT AGREEMENT—APPROVED Mr. Neal introduced Amendment No. 1 to the Southdale Redevelopment Agreement and concern of Simon Property Group relating to its ability to appeal the market value of Southdale Center property during the term of the agreement. Mr. Neal stated further discussions were held but staff felt this material change to the agreement needed to be considered by the Housing And Redevelopment Authority. In exchange for the City • removing the bar for valuation challenges, Simon Property Group would agree to a higher baseline evaluation from January 2, 2012. Mr. Neal indicated there had been considerable discussion relating to this amendment, it was negotiated in good faith, and the proposed language was agreed to by staff and Simon Property Group. He noted at this point, time was running out due to the State-imposed deadline of June 30, 2012. Laurie Van Dalen, Southdale Center Manager, advised the draft document relating to Metro Transit had been received from the Metropolitan Council. Southdale Center had agreed, in conversation, to the changes after the April City HRA meeting. The Commissioners noted the HRA had supported the original language to make sure the City was not in tax court with Southdale Center every year if it was giving an interest-free loan. Jay Lindgren, Dorsey & Whitney, City bond counsel, indicated he had drafted the original language that limited the ability of Southdale Center to appeal because it was the most favorable to the City and regularly agreed to in this type of agreement. Discussion ensued on the proposed language and it was noted if the property value was increased by the minimum, 2.5% per annum, the accumulative effect would increase the market value $31 million, or a 27% increase. It was also noted the increment would be used to write down the principal on the loan so if an appeal was successful, there would be less increment available for use. Mr. Neal answered questions of the HRA related to the appeal process. The HRA discussed the need to address pedestrian connectivity, possibly through an Urban Land Institute planning process, landscaping, and the transit station. With regard to the transit station, Mr. Lindgren explained the transit easement had to be finalized within 120 days of signing the agreement. If not agreed to, the terms of the loan would not have to go forward. Mr. Lindgren assured the HRA there was sufficient time • within the 120-day process and no funds would be disbursed until that was finalized. Ms. Van Dalen stated the drawings submitted for permit included a civil package that addressed access from the street to the Mall entrance, lighted and landscaped pathways, and landscaped entrances. She noted 1 Minutes/Edina Housing and Redevelopment Authority/June 19 2012 Southdale Center had indicated the City needed to address how to get pedestrians across 66'h Street and Southdale Center would addressed pedestrian passage from that point to the entrance. Mr. Lindgren offered revised language to address the Council's preference to indicate the Mall's market value changed from year to year. Commissioner Sprague made a motion, seconded by Commissioner Brindle, approving Amendment No. 1 to Southdale Redevelopment Agreement, revising Section 4.6 to indicate: "...Mall Property unless and only to the extent that, it is greater than such agreed-upon amount as determined annually..." The HRA acknowledged the desire of Simon Property Group for some protection from the City having complete unilateral ability to raise property values without being able to appeal for a period of nine years; however, the proposed amendment would give the City the ability to raise the value of property during that time period, cumulatively, by 30%. The HRA indicated its support was predicated on a satisfactory arrangement with the bus facility and it did not appreciate this matter being raised just days before the deadline. The HRA confirmed it looked forward to continued cooperation to make this area more pedestrian accessible including participating in a future planning process. Member Bennett stated she remained unable to find public purpose and would not be voting to support the motion. Ayes: Brindle, Sprague, Swenson, Hovland Nays: Bennett Motion carried. There being no further business on the Edina Housing and Redevelopment Authority Agenda, Chair Hovland declared the meeting adjourned at 11:20 a.m. -t, Respectfully submitted, Sco Neal, E cutive Director