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HomeMy WebLinkAbout2017-04-04 HRA Regular MeetingAgenda Housing and Redevelopment Authority Meeting City of Edina, Minnesota City Hall, Council Chambers Immediately Following The Regular City Council Meeting Tuesday, April 4, 2017 7:00 PM I.Call to Order II.Roll Call III.Approval of Meeting Agenda IV.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of HRA Commissioners present to approve.) A.Approve Meeting Minutes: HRA Regular February 22, 2017, HRA Work Session February 22, 2017, HRA Work Session March 21, 2017 V.Resolution 2017-03: Authorizing an Interfund Loan for Advance of Certain Costs in Connection with the 66 West Tax Increment Financing District VI.W 49-1/2 Street Redevelopment: Project Update VII.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: April 4, 2017 Agenda Item #: IV.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:MJ Lamon, Project Coordinator Item Activity: Subject:Approve Meeting Minutes: HRA Regular February 22, 2017, HRA Work Session February 22, 2017, HRA Work Session March 21, 2017 Action 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: Approve the HRA minutes from the February 22 regular meeting, February 22 work session, and March 21, 2017 work session. INTRODUCTION: ATTACHMENTS: Description Minutes: February 22, 2017 HRA Regular Meeting Minutes: February 22, 2017 HRA Work Session Minutes: March 21, 2017 HRA Work Session Page 1 MINUTES OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 22-23, 2017 11:06 P.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 11:06 P.M. II. ROLLCALL Answering rollcall were Commissioners Brindle, Fischer, Staunton, Stewart, and Chair Hovland. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Staunton seconded by Commissioner Fischer approving the Meeting Agenda. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. IV. CONSENT AGENDA ADOPTED Motion made by Commissioner Staunton, seconded by Commissioner Stewart approving the consent agenda as follows: IV. A. Approve minutes of February 7, 2017 Regular HRA Meeting IV. B Approve the revised Purchasing Policy dated January 4, 2017 V. 4416 VALLEY VIEW ROAD – STATUS UPDATE Executive Director Neal updated the HRA on the status of the property since the HRA received RFP’s from developers. After discussion consensus was to direct staff to negotiate with the two developers to attempt to achieve a redevelopment project would encompass the small area plan. VI. REDEVELOPMENT OF SOUTHDALE LIBRARY SITE – PROJECT UPDATE Economic Development Manager Neuendorf provided an update of the Southdale Library Site Redevelopment. Mr. Neuendorf noted there was good attendance at the community engagement meetings. He reviewed the reoccurring themes, most significantly that the library is a vital community resource. Mr. Neuendorf asked the HRA to think about three questions: 1) should Tax Increment Financing be considered to maximize community benefit from the site; 2) should the HRA investigate the purchase of a portion of the site and seek to develop affordable housing; and 3) should the HRA invest image the purchase or lease of a portion of the site to possibly construct a new Arts Facility or similar public amenity. The HRA responses included: include City of Richfield in redevelopment planning, not necessarily an art center but some public purpose, keep possible use of TIF if public benefit is derived, attempt to hide parking, involve Edina Housing Foundation and investigate affordable housing, ensure architecture on the site is spectacular, make sure that hiding parking is worth the cost, contemplate use of urban design, and engage the street. VII. ADJOURNMENT Chair Hovland declared the meeting adjourned at 12:03 p.m. February 23, 2017 Minutes/HRA/January 5, 2016 Page 2 Respectfully submitted, Scott Neal, Executive Director Page 1 MINUTES WORK SESSION OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FEBRUARY 22, 2017 5:30 P.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 5:32 p.m. II. ROLLCALL Answering rollcall were Commissioners Brindle, Fischer, Staunton, Stewart, and Chair Hovland. Edina City Staff attending the meeting: Kris Aaker, Assistant City Planner; Jennifer Bennerotte, Communications and Technology Services; Debra Mangen, City Clerk; Scott Neal, City Manager/Executive Director; Bill Neuendorf, Economic Development Manager; and Cary Teague, Community Development Director. City Consultants Nick Anhut and Bruce Kimmel, Ehlers Associates and Jay Lindgren, Dorsey and Whitney were also attending. Members of the Preferred Development Partners were also in attendance. They included Pete Deanovic, Buhl Investors, and Brent Rogers, Saturday Properties, along with their consultant team consisting of Todd Novak, David Daly, Tom Whitlock, Mike Benedict, Trisha Sieh, and Scott Froemming. III. 49 1/2 STREET REDEVELOPMENT UPDATE Economic Development Manager Neuendorf explained that staff had been meeting with the Buhl Investor/Saturday Properties team since late 2016 regarding the potential redevelopment of 3925 and 3930-3944 W. 49-1/2 Street. Mr. Neuendorf gave some background on the subject site then gave an overview of the proposal to date along with potential benefits. He outlined topics for discussion: 1) does the concept achieve the desired goals; 2)should negotiation continue to sell north ramp commercial spaces; 3) should negotiations continue to sell center ramp and retain public easements; 4)should a new TIF District be considered; 5) should Centennial Lakes TIF be invested in new public parking expansion; 6)should land proceeds be re-invested in public ramp expansion; 7) which options should be pursued for affordable housing units; and 8)What other concerns or suggestions should be investigated. The Commissioners were generally supportive that the proposal would achieve the desired goals of redevelopment and that negotiations should continue as long as the public parking would be part of the project. It was believed that parking easements would adequately preserve the public’s interest in the center ramp site. Concern was expressed over the degree of public investment. It was suggested that all proposed financing options be investigated as to feasibility and the Edina Housing Foundation consulted regarding affordable housing. Staff should continue to bring status reports. IV. ADJOURNMENT Minutes/HRA/July 19, 2016 Page 2 Chair Hovland declared the meeting adjourned at 6:24 p.m. Respectfully submitted, Scott Neal, Executive Director Page 1 MINUTES WORK SESSION OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY March 21, 2017 5:30 P.M. I. CALL TO ORDER Vice Chair Brindle called the HRA meeting to order at 5:30 p.m. II. ROLLCALL Answering rollcall were Commissioners Brindle, Fischer, Staunton, and Stewart. Chair Hovland entered at 5:35 p.m. Edina City Staff attending the meeting: Kelly Dumais, City Manager Fellow; Chad Millner, Engineering Director; Scott Neal, City Manager/Executive Director; Bill Neuendorf, Economic Development Manager; and Jane Timm, Deputy City Clerk. City Consultants Nick Anhut, Ehlers Associates, Jay Lindgren and Alex Selke, Dorsey and Whitney were also attending. Members of the Preferred Development Partners were also in attendance. They included Pete Deanovic, Buhl Investors, and Brent Rogers, Saturday Properties, along with their attorney Pat Mascia. III. 49 1/2 STREET REDEVELOPMENT UPDATE Economic Development Manager Neuendorf gave an update from the last work session on the potential redevelopment of 3925 and 3930-3944 W. 49-1/2 Street. Mr. Neuendorf gave some background on the subject site then gave an overview of the proposal to date along with some potential changes to the project. Mr. Neuendorf outlined topics for discussion: 1) Construction Phasing; 2) Use of TIF for Center Site; 3) North Ramp Expansion; 4) Deadline for Completion. The Commissioners discussed the construction phase 1) building a temporary surface parking lot on 3930 and 3944 W 49-1/2 Street; 2) demolishing the Center Ramp, constructing a ramp and a new mixed-use building; and 3) expanding the North Parking Ramp. There was a discussion about the amount of parking needed, alternative parking while the construction was being done, green space, and concern over the degree of public investment. Staff and commissioners discussed the 120 day deadline, and noted an extension was possible if necessary. IV. ADJOURNMENT Chair Hovland declared the meeting adjourned at 6:28 p.m. Respectfully submitted, Scott Neal, Executive Director Date: April 4, 2017 Agenda Item #: V. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Resolution 2017-03: Authorizing an Interfund Loan for Advance of Certain Costs in Connection with the 66 West Tax Increment Financing District 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: Approve Resolution 2017-3 authorizing an interfund loan from Southdale 2 Fund to the 66 West Fund. INTRODUCTION: The 66 West Apartment building is nearly completed and tenants are expected to begin occupancy in May 2017. In accordance with the April 5, 2016 Redevelopment Agreement, the Edina HRA committed to a $550,000 contribution to the project, payable in two installments. The first payment was made in 2016. This Resolution authorizes an interfund loan to allow the final payment to be made upon completion. Monies will be borrowed from the Southdale 2 TIF Fund and repaid over time by the new property taxes collected from the completed apartment project. ATTACHMENTS: Description Resolution 2017-03: Authorizing an Interfund Loan for Advance of Certain Costs in Connection with the 66 West Tax Increment Financing District EDINA HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. HRA 2017-03 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE 66 WEST TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA") and the City of Edina (the "City") that City Council (the "Council") of the City of Edina, Minnesota (the "City"), as follows: Section 1. Background. 1.01. The City and HRA have heretofore approved the establishment of the 66 West Tax Increment Financing District (the "TIF District") within the Southeast Edina Redevelopment Project Area (the "Project"), and have adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The City and HRA have heretofore approved a modification to the Tax Increment Financing Plan of the Southdale 2 Tax Increment Financing District to authorize additional permitted expenditures for affordable housing purposes pursuant to Minnesota Statutes, Section 469.1763, Subd. 2(d). 1.03. The City and HRA have determined to pay for certain costs identified in the TIF Plan consisting of site improvement and other development costs related to the construction of 39 units of affordably-priced housing (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City or HRA funds available for such purposes. 1.04. Under Minnesota Statutes, Section 469.178, Subd. 7, the City and HRA are authorized to advance or loan money from its general funds or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.05. The City and HRA intend to reimburse themselves for the Qualified Costs from tax increments derived from the 66 West TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The City and HRA hereby authorize the advance of up to $300,000, or so much thereof as may be paid as Qualified Costs, from the Southdale 2 Tax Increment Financing Fund or such other fund identified by the City or HRA. The total advances of City and HRA, when added together, shall not exceed $300,000. 2.02 The City and HRA shall reimburse themselves such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 0.0% and will not fluctuate. 2.03. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Finance Director, through the date of last receipt of tax increment from the TIF District. 2.04. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Finance Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City and HRA by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.05. The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the City and HRA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.06. This Interfund Loan is evidence of an internal borrowing by the City or HRA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City and HRA shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.07. The HRA may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. ADOPTED: April 4, 2017 ATTEST: __________________________________ _____________________________________ James B. Hovland, Chair Mary Brindle, Secretary STATE OF MINNESOTA ) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of April 4, 2017, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. ________________________________ Executive Director (Seal) Date: April 4, 2017 Agenda Item #: VI. To:Chair & Commissioners of the Edina HRA Item Type: Advisory Communication From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:W 49-1/2 Street Redevelopment: Project Update 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 required; this information for discussion only. INTRODUCTION: This information is responsive to the questions and suggestions posed at the March 21, 2017 HRA Work Session. Staff will be available to answer questions about these issues. ATTACHMENTS: Description Memo: 49-1/2 Street Redevelopment Project Update City of Edina • 4801 W. 50th St. • Edina, MN 55424 Economic Development / HRA Phone 952-826-0407 • Fax 952-826-0390 • www.EdinaMN.gov Date: April 4, 2017 To: Chair and Commissioners of the Edina Housing and Redevelopment Authority cc: Scott Neal, Executive Director From: Bill Neuendorf Economic Development Manager Re: 49-1/2 Street Redevelopment – Project Update For the last three months, staff has been meeting with Buhl Investors/Saturday Properties to refine the redevelopment concept for City-owned parcels on West 49-1/2 Street. Buhl Investors/Saturday Properties is the Preferred Development Partner that was selected after interviewing three different teams who had responded to a Request for Proposal (RFP) that was issued for the site. One of the fundamental redevelopment goals is to improve public parking conditions while enhancing street life and the vitality of the district. The current proposal replaces an unfriendly 1970’s era parking structure with below-grade parking and an expanded North Ramp that includes new commercial space on the street level. One of the difficult constraints is juggling the public parking not only upon completion, but during construction. Business owners have mixed opinions, but most agree that construction should be scheduled to minimize the conflict to existing businesses, especially during the peak holiday season. At the March 21, 2017 Work Session, staff was encouraged to investigate other options for incorporating more amenities and more development on the north side of the street and avoid over-building public parking. To that end, staff has met with owners of commercial parcels adjacent to the site to further explore development potential. Housing and Redevelopment Authority Established 1974 49-1/2 Street Redevelopment Update April 4, 2017 Page 2 Staff was also encouraged to consider the long term need for public parking, considering that driver-less vehicles seem to be evolving rapidly. 1) Commercial Development Potential on the North Side of Street Representatives from KM2 Development suggest that a mixed-use building could also be successful on the north side of the street. Their preference is for an age-restricted 55+ year apartment complex with approximately 180 units. Commercial storefronts could be located on the ground floor and public/private parking could be constructed on two levels underground. While this concept is interesting, it is currently not clear how it would be able to satisfy the existing parking needs while also meeting future parking demand. 2) Long Term Demand for Vehicle Parking This is a topic of much debate among planners, engineers and futurists. The actual impact of driverless vehicle technology is unable to be predicted at this time. Modern retail businesses, however, continue to require adequate parking to satisfy the expectations of employees and customers. Unless there is extremely high density in the area, most retailers are hesitant to lease spaces that do not provide customer parking. Many lenders are hesitant to invest in projects that fail to satisfy the parking expectations. Residents who choose to live in amenity-laden luxury apartment buildings also have expectations regarding parking. For an all-ages building, it is presumed that each unit will have at least one vehicle. While some households may choose to use a shared-vehicle, it is unlikely that all households will choose to sell their private vehicles. While this may happen at some point in the future, it is not likely for many years, perhaps many decades. Staff is concerned that any significant reduction in the public parking available may threaten the leasing of the new commercial space and the new residential units. Staff is also concerned that inadequate parking may threaten the viability of the adjacent businesses (whose owners and customers rely on the shared parking arrangement) and the future leasing of the adjacent commercial space.