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HomeMy WebLinkAbout2016-03-15 HRA Work SessionAgenda Housing and Redevelopment Authority Work Session Meeting City of Edina, Minnesota Edina City Hall Community Room Tuesday, March 15, 2016 5:30 PM I.Call to Order II.Roll Call III.HRA By-Laws Proposed Updates IV.Powers and purpose of HRA V.Project Updates VI.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli'cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: March 15, 2016 Agenda Item #: III. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott Neal, Executive Director Item Activity: Subject:HRA By-Laws Proposed Updates Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action. For discussion only. INTRODUCTION: As discussed in January, Commissioner Brindle has worked with staff to prepare potential modifications to the Bylaws of the Edina HRA. A preliminary draft of the proposed changes is attached for discussion purposes. ATTACHMENTS: Description Proposed changes to bylaws proposed changes - redline Edina HRA Bylaws – Page 1 Proposed Amendments 2-26-2016 DRAFT BY-LAWS FOR THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA ARTICLE I – THE AUTHORITY Section 1. Name of the Authority. The name of the Authority shall be the “Housing and Redevelopment Authority of Edina, Minnesota.” Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 3. Office of Authority. The offices of the Authority shall be at 4801 West 50th Street in the City of Edina, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. ARTICLE II – MEMBERSHIP Section 1. Board Membership and Terms. The Commissioners of the Authority shall be the same as the current members of the Edina City Council, with terms running concurrent with the City Council terms. Section 2. Compensation of Commissioners. Pursuant to Minnesota Statutes, Section 469.011, subdivision 4, as amended, Commissioners may receive necessary expenses and compensation. Section 3. Meeting Attendance. It shall be the duty of each Commissioner to attend all regular and special meetings of the Authority and to attend each subcommittee meeting to which a member is appointed. Attendance of Commissioners shall be entered in the minutes of each meeting. ARTICLE III – OFFICERS AND EXECUTIVE DIRECTOR Section 1. Officers. The officers of the Authority shall be a Chair, Vice-Chair, and Secretary. To allow greater flexibility in duties, the Executive Director duties are defined in Addendum 1 of this document. Edina HRA Bylaws – Page 2 Proposed Amendments 2-26-2016 DRAFT Section 2. Chair. The Chair shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the Chair shall sign all contracts, deeds and other instruments to be entered into or given to the Authority. At each meeting the Chair shall submit such recommendations and information as he/she may consider proper concerning the business, affairs and policies of the Authority. Section 3. Vice-Chair. The Vice-Chair shall perform the duties of the Chair in the absence or incapacity of the Chair; and in case of the resignation or death of the Chair, the Vice-Chair shall perform such duties as are imposed on the Chair until such time as the Authority shall select a new Chair. Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority, and, when authorized and directed by resolution of the Authority, shall sign, with the Chair all contracts, deeds, and other instruments to be entered into or given by the Authority. Section 5. Executive Director. The Authority shall appoint and employ an Executive Director. The Executive Director shall be the chief appointed executive officer of the Authority, shall sign, with the Chair and Secretary all contracts, deeds, and other instruments to be entered into or given by the Authority; and shall have such additional responsibilities and authority as the Commissioners may from time to time by resolution prescribe. In addition, the Executive Director is responsible for recording and maintaining accurate records of the meetings of the Board and of all official actions taken by or on behalf of the Authority. Section 6. Compensation. The compensation and terms and conditions of employment of the Executive Director shall be determined by the Authority. No Commissioner of the Authority shall be eligible to be employed as the Executive Director. Section 7. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority, or these bylaws, or the rules and regulations of the Authority. Section 8. Appointment and Vacancies. The Chair, Vice-Chair and Secretary shall be appointed by the Commissioners at the annual meeting. Should the office of Chair, Vice- Chair or Secretary become vacant, the Authority shall appoint a successor from its membership at the next regular meeting, and such appointment shall be for the unexpired term of the calendar year. Edina HRA Bylaws – Page 3 Proposed Amendments 2-26-2016 DRAFT Section 9. Additional Personnel. The Authority may from time to time employ such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the Municipal Housing and Redevelopment Act of Minnesota, subject to and pursuant to the applicable laws of the State of Minnesota. Such personnel shall have such authority and perform such duties as the Authority from time to time shall determine. ARTICLE IV – MEETINGS Section 1. Annual Meeting. There shall be an annual meeting of the Authority which shall be the first regular meeting of the Authority in January of each year. Section 2. Conduct of Business at the Annual Meeting. The following, among any other appropriate matters, may be considered at the annual meeting: a. Appointment of Officers, Commissioners, Executive Director and establishment of their terms. b. Determination of new committees and assignment of Commissioners if needed. c. Designation of official newspaper. d. Designation of official depository. e. Receipt of Annual Report. f. Designation of a fixed place for regular meetings to be held until the next annual meeting. g. Determination of dates for regular meetings until the next annual meeting. h. Discussion of Bylaws and any suggested amendments. Section 3. Public Meeting Notice. Notice of all meetings of the Authority shall comply with MN State Statute 13D.03. Section 4. Regular Meetings. Regular meetings of the Authority shall be held at the City Hall, City of Edina, in the City Council Chambers on the same days as regular meetings of the City Council of the City of Edina, Minnesota. Section 5. Special Meetings. Special meetings of the Authority may be called by the Chair, any two members of the Authority, or the Executive Director, for the purpose of transacting any business designated in the call. Edina HRA Bylaws – Page 4 Proposed Amendments 2-26-2016 DRAFT Section 6. Quorum. A quorum of the Authority shall consist of three of the five Commissioners. In the absence of a quorum, no official action may be taken by, on behalf of, or in the name of the Authority. Section 7. Adoption of Resolutions. Resolutions of the Authority shall be in writing and shall be deemed adopted if approved by not less than a simple majority of all Commissioners present, except as otherwise required by law. Section 8. Conflict of Interest. Any Commissioner or employee who has a financial interest in any matter that is before the Authority shall publicly state the nature of the interest, excuse himself or herself from participation in the discussion or any decision- making process regarding the matter, and comply with the requirements of Minnesota Statutes, Section 469.009, as amended. ARTICLE V – COMMITTEES The Authority may, from time to time, appoint such committees as it deems appropriate to assist it in carrying out its powers, duties and functions. All such committees shall be advisory only to the Authority. Members of such committees need not be members of the Authority but shall be residents of the City of Edina. All members of such committees shall serve at the pleasure of the Authority. Each such committee shall exist for such period and perform such activities as the Authority, from time to time, shall determine. ARTICLE VI – AMENDMENTS The bylaws of the Authority may be amended at any meeting of the Authority and shall be amended only with the approval of a majority of all of the Commissioners. Edina HRA Bylaws – Page 5 Proposed Amendments 2-26-2016 DRAFT ADDENDUM 1. DESCRIPTION OF EXECUTIVE DIRECTOR DUTIES The Executive Director shall have the authority to appoint staff to complete the work of the Authority. The Executive Director also shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the name of the Authority in such bank or banks as the Authority from time to time shall designate. The Executive Director shall be responsible for the keeping of regular books of accounts showing receipts and expenditures and shall be responsible for the rendering to the Authority, at each regular meeting of the Authority, of an account of the income and expenses of the Authority for the then prior month. He/she shall also be responsible for the rendering of such additional financial and other reports as the Authority from time to time shall request, including an annual budget for approval by the Authority. The Executive Director shall give such bond for the faithful performance of his/her duties as the Authority may determine. The Executive Director shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall also be countersigned by the Chair or the Vice-Chair. Established March 4, 1974 Amended March 17, 1986 Edina HRA Bylaws – Page 1 Proposed Amendments 2-26-2016 DRAFT BY-LAWS FOR THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA ARTICLE I – THE AUTHORITY Section 1. Name of the Authority. The name of the Authority shall be the “Housing and Redevelopment Authority of Edina, Minnesota.” Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 3. Office of Authority. The offices of the Authority shall be at 4801 West 50th Street in the City of Edina, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. ARTICLE II – MEMBERSHIP Section 1. Board Membership and Terms. The Commissioners of the Authority shall be the same as the current members of the Edina City Council, with terms running concurrent with the City Council terms. Section 2. Compensation of Commissioners. Pursuant to Minnesota Statutes, Section 469.011, subdivision 4, as amended, Commissioners may receive necessary expenses and compensation. Section 3. Meeting Attendance. It shall be the duty of each Commissioner to attend all regular and special meetings of the Authority and to attend each subcommittee meeting to which a member is appointed. Attendance of Commissioners shall be entered in the minutes of each meeting. ARTICLE III -– OFFICERS AND EXECUTIVE DIRECTOR Section 1. Officers. The officers of the Authority shall be a Chairpersonman, Vice- Chairrperson, and Secretaryman and Executive Director. To allow greater flexibility in duties, the Executive Director duties are defined in Addendum 1 of this document. Section 2. Chairperson. The Chairperson shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the Chairperson shall sign all contracts, deeds and other instruments to be entered into or given to the Authority. At each Edina HRA Bylaws – Page 2 Proposed Amendments 2-26-2016 DRAFT meeting the Chairperson shall submit such recommendations and information as he/she may consider proper concerning the business, affairs and policies of the Authority. Section 3. Vice-Chairperson. The Vice-Chairperson shall perform the duties of the Chairperson in the absence or incapacity of the Chairperson; and in case of the resignation or death of the Chairperson, the Vice-Chairperson shall perform such duties as are imposed on the Chairperson until such time as the Authority shall select a new Chairperson. Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority, and, when authorized and directed by resolution of the Authority, shall sign, with the Chairperson, all contracts, deeds, and other instruments to be entered into or given by the Authority. a Secretary. Section 2. Chairman. The Chairman shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the Chairman shall sign all contracts, deeds and other instruments to be entered into or given by the Authority. At each meeting the Chairman shall submit such recommendations and information as he may consider proper concerning the business, affairs and policies of the Authority. Section 3. Vice-Chairman. The Vice-Chairman shall perform the duties of the Chairman in the absence or incapacity of the Chairman; and in case of the resignation or death of the Chairman, the Vice-Chairman shall perform such duties as are imposed on the Chairman until such time as the Authority shall select a new Chairman. Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority, and, when authorized and directed by resolution of the Authority, shall sign, with the Chairman, all contracts, deeds, and other instruments to be entered into or given by the Authority. Section 5. Director and Executive Director.The Executive Director shall be responsible for the execution of the planning and development of projects of the Authority, shall act as an assistant to the Secretary, shall keep the records of the Authority, shall act as secretary of the meetings of the Authority in a journal of proceedings to be kept for such a purpose, and shall perform all duties properly and reasonably requested by the Director. He shall keep in safe custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. The Authority may appoint and employ a Director and an Executive Director. The Director shall have responsibility for the general supervision of the projects and personnel of the Authority, including the Executive Director, subject to the direction of the Authority. The Director also shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the name of the Authority in such bank or banks as the Authority from time to time shall designate. The Director shall be responsible for the keeping of regular books of accounts showing receipts and expenditures and shall be responsible for the Edina HRA Bylaws – Page 3 Proposed Amendments 2-26-2016 DRAFT rendering to the Authority, at each regular meeting of the Authority, of an account of the income and expenses of the Authority for the then prior month. He shall also be responsible for the rendering of such additional financial and other reports as the Authority from time to time shall request, including an annual budget for approval by the Authority. The Executive Director shall be responsible for the execution of the planning and development of projects of the Authority, shall act as an assistant to the Secretary, shall keep the records of the Authority, shall act as secretary of the meetings of the Authority in a journal of proceedings to be kept for such a purpose, and shall perform all duties properly and reasonably requested by the Director. He shall keep in safe custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. The Director and Executive Director shall each give such bond for the faithful performance of their duties as the Authority may determine. The Director of Executive Director shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall also be countersigned by the Chairman or the Vice-Chairman. Section 5. Executive Director. Executive Director. The Authority shall appoint and employ an Executive Director. The Executive Director shall be the chief appointed executive officer of the Authority, and shall sign, with the Chair and Secretary all contracts, deeds, and other instruments to be entered into or given by the Authority; and shall have such additional responsibilities and authority as the Commissioners may from time to time by resolution prescribe. In addition, the Executive Director is responsible for recording and maintaining accurate records of the meetings of the Board and of all official actions taken by or on behalf of the Authority. Section 65. Compensation. The compensation and terms and conditions of employment of the Director and Executive Director shall be determined by the Authority. No Commissioner of the Authority shall be eligible to be employed as the Director or Executive Director. Section 766. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority, or these bylaws, or the rules and regulations of the Authority. Section 877. Appointment and Election of Officers. The Chairman, Vice-Chairman and Secretary shall be elected at each annual meeting of the Authority from among the Commissioners of the Authority, and each shall hold office until the next succeeding annual meeting and until his successor is elected and has qualified, unless he shall sooner resign, be removed other otherwise disqualified to serve. Edina HRA Bylaws – Page 4 Proposed Amendments 2-26-2016 DRAFT Section 8. Vacancies. The Chairperson, Vice-Chairperson and Secretary shall be appointed by the Commissioners at the annual meeting. Should the office of Chairperson, Vice- Chairperson or Secretary become vacant, the Authority shall appoint a successor from its membership at the next regular meeting, and such appointment shall be for the unexpired term of the calendar year. Should the office Chairman, Vice-Chairman or Secretary become vacant, the Authority shall elect a successor from its membership at the next regular meeting, and such election shall be for the unexpired term of said office. Section 989. Additional Personnel. The Authority may from time to time employ such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the Municipal Housing and Redevelopment Act of Minnesota, subject to and pursuant to the applicable laws of the State of Minnesota. Such personnel shall have such authority and perform such duties as the Authority from time to time shall determine. ARTICLE IVII – MEETINGS Section 1. Annual Meeting. There shall be an annual meeting of the Authority which shall be the first regular meeting of the Authority in January of each year. Appointment of Election of Officers. The Chairpersonman, Vice-Chairperson, manSecretary and Executive Director of the Authority and Secretary shall be appointed from among the elected at each annual meeting of the Authority from among the Commissioners of the Authority. Each officer shall hold , and each shall hold office until the next succeeding annual meeting and until his/her successor is elected and has qualified, unless he/she shall sooner resign, be removed other otherwise disqualified to serve. Section 2. Conduct of Business at the Annual Meeting. The following, among any other appropriate matters, may be considered at the annual meeting: a. Appointment of Officers, Commissioners, Executive Director and establishment of their terms. b. Determination of new committees and assignment of Commissioners if needed. c. Designation of official newspaper. d. Designation of official depository. e. Receipt of Annual Report. f. Designation of a fixed place for regular meetings to be held until the next annual meeting. g. Determination of dates for regular meetings until the next annual meeting. h. Discussion of Bylaws and any suggested amendments. Edina HRA Bylaws – Page 5 Proposed Amendments 2-26-2016 DRAFT Section 32. Public Meeting Notice. Notice of all meetings of the Authority shall comply with MN State Statute 13D.03. Section 43. Regular Meetings. Regular meetings of the Authority shall be held at the City Hall, City of Edina, in the City Council Chambers on the same days as regular meetings of the City Council of the City of Edina, Minnesota. shall be held without notice at the regular meeting place of the Authority on the first Tuesday of each month, at 7:30 o’clock p.m. unless the same shall be a legal holiday, in which event said meeting shall be held on an alternate daythe next succeeding Tuesday. Section 43. Regular Meeting Place. The regular meeting place of the Authority shall be at the address of its offices as set out in Article I, Section 3 hereof. Section 54. Special Meetings. Special meetings of the Authority may be called by the Chairpersonman, any two members of the Authority, the Director, or the Executive Director, for the purpose of transacting any business designated in the call. The call for as special meeting shall be delivered personally to each member of the Authority not later than two (2) days prior to the date of such special meeting, or shall be mailed to the business or home address of each member of the Authority at least three (3) days prior to the date of such special meeting. Notice of such special meeting need not be given to any member who shall be present at such meeting. At such special meeting no business shall be considered other than that designated n the call; but if all of the members of the Authority are present at a special meeting, it shall be a legal meeting even though no notice thereof was given, and any and all business may be transacted at such special meeting. Special meetings shall be held in the regular meeting place of the Authority. Section 65. Quorum. A quorum of the Authority shall consist of three of the five Commissioners. In the absence of a quorum, no officeofficial action may be taken by, on behalf of, or in the name of the Authority. The powers of the Authority shall be vested in the Commissioners thereof from time to time in office. A majority of the Commissioners shall constitute a quorum for the purpose of conducting the business and exercising the powers and functions of the Authority, and for all other purposes, and action may be taken by the Authority only upon the vote of a majority of all of the Commissioners; provided, that less than a quorum may adjourn from time to time until a quorum is obtained. Section 6. Order of Business. At the annual and regular meetings of the Authority the following shall be the order of business. 1. Roll Call. 2. Reading and approval of the minutes from the previous meeting 3. Public hearings of which notice has been given as required by law. 4. Award of contracts. Edina HRA Bylaws – Page 6 Proposed Amendments 2-26-2016 DRAFT 5. Hearings upon individual request. 6. Communications, including petitions. 7. Recommendations and reports by officers, Director, Executive Director, employees, and advisory committees. 8. Accounts and claims against the Authority. 9. Adjournment. Section 7. Adoption of Resolutions. RAll resolutions of the Authority shall be in writing and shall be deemed adopted if approved by not less than a simple majority of all Commissioners present, except as otherwise required by law. Resolutions must be read aloud prior to vote taken thereon and may but need not be executed after passage.shall be in writing and shall be copied in the journal of the proceedings of the Authority. Section 8. Conflict of Interest. Any Commissioner or employee who has a financial interest in any matter that is before the Authority shall publicly state the nature of the interest, excuse himself or herself from participation in the discussion or any decision-making process regarding the matter, and comply with the requirements of Minnesota Statutes, Section 469.009, as amended. Section 8. Manner of Voting. The voting on all questions coming before the Authority shall be by roll call, and the yeas and nays shall be entered upon the minutes of each meeting. Section 9. Public Notice of Meetings. The Authority shall give public notice of its meetings whenever feasible, but publication of its then next meeting agenda, or posing of such agenda in a conspicuous place at its regular meeting place, but failure to give such notice shall not make void any such meeting, not any action taken thereat. ARTICLE IV – COMMITTEES The Authority may, from time to time, appoint such committees as it deems appropriate to assist it in carrying out its powers, duties and functions. All such committees shall be advisory only to the Authority. Members of such committees need not be members of the Authority but shall be residents of the City of Edina. All members of such committees shall serve at the pleasure of the Authority. Each such committee shall exist for such period and perform such activities as the Authority, from time to time, shall determine. ARTICLE VI – AMENDMENTS The bylaws of the Authority may be amended at any meeting of the Authority and shall be amended only with the approval of a majority of all of the Commissioners. shall be reviewed Edina HRA Bylaws – Page 7 Proposed Amendments 2-26-2016 DRAFT for compliance with Minnesota State Statutes and with changes in business customs every four years. Edina HRA Bylaws – Page 8 Proposed Amendments 2-26-2016 DRAFT ADDENDUM 11. DESCRIPTION OF EXECUTIVE DIRECTOR DUTIES Section 5. Executive Director. The Authority shall appoint and employ an Executive Director. The Executive Director shall be the chief appointed executive officer of the Authority, and shall have such additional responsibilities and authority as the Commissioners may from time to time by resolution prescribe. In addition, the Executive Director is responsible for recording and maintaining accurate records of the meetings of the Board and of all official actions taken by or on behalf of the Authority. The Executive Director shall have the authority to appoint staff to complete the work of the Authority. The Executive Director also shall be responsible for the care and custody of all funds of the Authority and for the deposit thereof in the name of the Authority in such bank or banks as the Authority from time to time shall designate. The Executive Director shall be responsible for the keeping of regular books of accounts showing receipts and expenditures and shall be responsible for the rendering to the Authority, at each regular meeting of the Authority, of an account of the income and expenses of the Authority for the then prior month. He/she shall also be responsible for the rendering of such additional financial and other reports as the Authority from time to time shall request, including an annual budget for approval by the Authority. The Executive Director shall each give such bond for the faithful performance of theirhis/her duties as the Authority may determine. The Executive Director shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall also be countersigned by the Chairperson or the Vice-Chairperson. may be amended at any meeting of the Authority but shall be amended only with the approval of a majority of all of the Commissioners. Established March 4, 1974 Amended March 17, 1986 Date: March 15, 2016 Agenda Item #: IV. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation, Other From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Powers and purpose of HRA Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: Minnesota Statute provides municipalities with four governance options to undertake redevelopment activities. In 1974, the City of Edina determined that the creation of a Housing and Redevelopment Authority (HRA) was the preferred format for Edina. A summary of each option is attached. Nick Anhut, from Ehlers and City Attorney Roger Knutson will be in attendance to answer questions about the various options available to municipalities. ATTACHMENTS: Description Powers of HRA Municipal Redevelopment Authorities in Minnesota Why Do Cities Have HRAs or EDAs? February 21, 2012 Updated March 15, 2016 2 Minnesota cities have four governance options for undertaking development and redevelopment activities: Housing and Redevelopment Authority (HRA) Economic Development Authorities (EDA) City Council/Municipal Development Districts Port Authorities Not mutually exclusive Four Options 3 Housing & Redevelopment Authorities (HRAs) Federal housing and urban renewal programs grew out of the depression era in the 1930s “Elimination or prevention of development or spread of slums, blighted or deteriorating areas” Housing Authorities were created nationally, and HRA laws were enacted in Minnesota in 1947 (Hubert Humphrey advocated) Currently more than 230 HRAs in Minnesota Option #1 4 Economic Development Authorities (EDA) In the 1980’s, the City of Red Wing, had an HRA and a Port Authority and a City Council, none of which could agree The result was special legislation for Red Wing that provided a new and flexible governance structure for development activities called an “Economic Development Authority” In 1987, the legislature enacted state wide law allowing cities to create EDA’s Option #2 5 Option #3 City Council Powers through “Municipal Development Districts” In the late 1960's the Minneapolis HRA had 500 employees and independent commissioners who often disagreed with City Council priorities The Council convinced the State Legislature to enact a special “municipal development district” law that authorized the CITY COUNCIL to carry out housing and redevelopment activities without the HRA In 1970 the authority to create “Municipal Development Districts” was enacted state-wide 6 Port Authorities Port authorities were established in New York and other ocean port centers and the concept spread to river and inland ports. St. Paul established its port authority in 1932 Used its port authority as a redevelopment tool, having its statute amended regularly to add new powers and financing mechanisms Over two dozen Port Authorities authorized in MN each with special legislation Powers are often broad including G.O. debt Option #4 7 City of Edina HRA formed March 1974 to facilitate redevelopment at 50th & France Originally a separate board, but became somewhat inactive after progress made at 50th & France Governance shifted to City Council City Council serves as HRA Board of Commissioners Currently meets on “as-needed” basis to address housing & redevelopment matters Administers tax increment districts Issues HRA Lease Revenue Bonds City of Edina HRA History 8 1974 Resolution identified three characteristics which the HRA should address Substandard or blighted areas exist in Edina which cannot be redeveloped without the assistance of government Inadequate housing accommodations for veterans, active military and families Shortage of decent, safe and sanitary dwelling accommodations available to persons of low income and their families at rentals they can afford Purposes of Edina HRA Source: City Council Resolution March 4, 1974 9 Designate substandard or deteriorating areas needing redevelopment, and unsafe, unsanitary, &overcrowded housing Construct new projects and repair projects Limited to designated boundaries Conduct studies and prepare plans, as needed Sell, buy, own, and lease property Examples: housing, public parking, redevelopment sites, many others Use state and federal financial assistance programs Usually for housing Use Tax Increment Financing to implement renewal or redevelopment programs Usually loans or grants Assist with low- or moderate-income housing Issue bonds to fund projects Levy property tax to achieve objectives HRA Statutory Powers Source: excerpts from League of MN Cities Handbook Additional Powers of EDA Can operate with all HRA powers plus … Clearer authority for economic development More flexibility on loans Act as limited partner Establish Development Districts & Economic Development Districts 10 11 HRAs and EDAs HRA's and EDA’s allow cities to establish separate, quasi-independent public corporations to: Provide the City liability protection Insulate its activities from politics Governance Common practice for City Council to completely comprise membership of EDA and HRA EDAs require some council representation 12 HRAs and EDAs required to perform duties according to City’s Comprehensive Plan HRAs and EDAs are NOT authorized to: Use power of eminent domain for economic development Grant land use approvals Operating Powers & Limits 13 Both HRAs and EDAs may only exercise powers in a specific geographic area May require public hearing HRAs may establish Redevelopment Project Area Housing Project (for low-income housing) Housing Development Project (for moderate-income housing) EDAs may establish Economic Development Districts or Municipal Development Districts Operating Powers & Limits 14 Property Tax Levies Both HRAs and EDAs may levy a property tax Edina HRA has not used levy but will begin in 2017 HRA levy maximum 0.0185% of estimated market value Levied on tax capacity EDA levy maximum 0.01813% of estimated market value Potentially impacted by levy limits HRA traditionally outside of City levy limits 15 Bonds Both HRAs and EDAs can issue revenue bonds Lease revenue bonds Pure revenue bonds (more expensive) HRAs and EDAs can obligate their levy as a “G.O.” Limited tax obligation of HRA or EDA HRAs can issue general obligation bonds with City’s consent and pledge Only for HRA owned housing 16 The tax increment law is a method of financing utilized by all four types of governing bodies Mechanics of tax increment works exactly the same no matter which development statute is utilized. Authorized expenditures vary from statute to statute Tax Increment Financing Tax Increment Financing Roles of City Council and HRA City Planning Agency gives Written Opinion on Plan within 30 days HRA Prepares Redevelopment Plan HRA Applies to City for Approval of Redevelopment Project City Holds Public Hearing City Adopts Resolution with Certain Findings and Notifies HRA of its Decision (within 30 days of application) HRA Prepares TIF Plan City Holds Public Hearing on the Plan City Approves Plan (within 60 days of application) County Auditor Certifies Original Net Tax Capacity of TIF District HRA provides Copy of Plan to County Auditor and School Board Clerk HRA Files Plan with State HRA Responsible for Annual Reporting HRA applies to City for approval At least 30 days before public hearing HRA sends request to County Auditor Within 60 days after latest of these 18 Discussion Date: March 15, 2016 Agenda Item #: V. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Project Updates Discussion Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action; for discussion only. INTRODUCTION: Updates of current projects will be discussed. ATTACHMENTS: Description HRA proj update 3-15-2016 March 15, 2016 Board Members of the Edina Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager HRA Redevelopment Project Update Information / Background: The staff is currently engaged in several redevelopment activities related on behalf of the Housing and Redevelopment Authority (HRA). This report summarizes the status of current projects. HOUSING AND REDEVELOPMENT AUTHORITY Established 1974 STAFF REPORT Page 2 HRA Project Update – March 9, 2016 Project Location Description Current Status 1) 3930 W. 49-1/2 Street Former site of Edina Realty branch office This vacant property should be temporarily improved until the future of the site is determined. Temporary public parking lot or grass is suggested. 2) Same same At least two developers are interested in assembling parcels for redevelopment. Staff is prepared to issue a Request for Proposal (RFP) if it is determined that this 0.37 acre site is no longer needed for public parking. A comparison of estimated costs is attached for consideration. 3) 3936-40 W. 49-1/2 Street North Parking Garage Study from Kimley-Horn indicates that one additional layer of parking can be constructed on top of the existing structure. This may be the most cost-effective route to provide more public parking with street level retail. See attached comparison. 4) 3944 W. 49-1/2 Street Former site of Hooten Cleaners This vacant property (0.24 acres) should be temporarily improved until the future of the site is determined. Temporary tenants have been considered but the cost of remodeling is very high. Temporary public parking lot is recommended if short-term tenants are not viable. 5) 4416 Valley View Road Vacant lot at corner of Valley View and Kellogg Multiple developers have expressed interest in building on this vacant 0.25 acre site. Staff has prepared a Request for Proposal (RFP) based on the guidance of the Wooddale Valleyview Small Area Plan. The Edina Housing Foundation would consider a sale of the parcel at 6120 Kellogg. This parcel could be part of the RFP or could be purchased by the HRA since it was identified in the original TIF Plan for this area. 6) 3330 W. 66th Street 66 West Apartments (39-units of affordable housing) The new TIF District and redevelopment agreement is scheduled for consideration on April 5, 2016. 7) Vernon & Eden (Grandview) Multiple parcels of mixed zoning The new Grandview 2 TIF District will be submitted to Hennepin County for certification this month. 8) 66th and York Multiple parcels, commercial zoning Staff is investigating the feasibility of removing these parcels from the Southdale 2 TIF District and creating a new TIF District instead. New taxes would be used to fund public infrastructure improvements needed in the immediate area. 9) Southeast Edina Project Area Multiple parcels and right-of-way Staff is updating the investment plan for TIF monies. This plan will be presented for discussion at a future Work Session. # # # Option 1a Option 1b Option 2a Option 2b Option 3 Expand on 3930 parcel (parking only) Expand on 3930 parcel (mixed use) Expand on 3944 parcel (parking only) Expand on 3944 parcel (mixed use) Expand on existing parcel (sell 3930) No. Stories 3 3 3 3 4 No. New Parking Stalls 131 94 75 50 75 New Commercial space (sq ft)0 7,000 0 4,300 8,000 Land Acquisition 2,900,000 2,900,000 1,800,000 1,800,000 0 Construction Cost ($22,000 per stall)2,882,000 2,068,000 1,650,000 1,100,000 1,650,000 Special construction - new stair/elev tower 650,000 650,000 0 0 0 Special construction - soil remediation 0 0 200,000 200,000 0 Special construction - commercial shell 0 2,000,000 0 1,300,000 0 Special construction - modify footings 0 0 0 0 90,000 Special construction - modify elevator & stairs 0 0 0 0 650,000 Subtotal construction costs 3,532,000 4,718,000 1,850,000 2,600,000 2,390,000 Contingency (20%)706,400 943,600 370,000 520,000 478,000 Design Cost (10%)353,200 471,800 185,000 260,000 239,000 Construction oversight (10%)353,200 471,800 185,000 260,000 239,000 Total Cost $7,844,800 $9,505,200 $4,390,000 $5,440,000 $3,346,000 Cost per Stall $59,884 $101,119 $58,533 $108,800 $44,613 highest cost lowest cost Sales Proceeds ($300 per SF retail)$2,100,000 $1,290,000 $2,400,000 Net Cost $7,405,200 $4,150,000 $946,000 Net Cost per Stall $78,779 $83,000 $12,613 highest cost lowest cost Prepared March 8, 2016 (BN) Comparison of Estimated Costs of Public Parking Expansion at 50th & France Staff Recommends the following action steps: (1) Prepare plans and zoning variance to add new fourth level on top of existing structure and construct when parking usage demands. Costs borne by HRA. (2) Issue RFP to seek private redevelopment of 3930 parcel in Q2 2016. (3) Hold parcel for future (long-term) expansion. Demolish Hooten building and add temporary surface parking lot (alternately, attempts could be made to find a short-term tenant with remodeling costs borne by tenant). Costs borne by HRA.