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HomeMy WebLinkAbout2018-08-16 HRA Regular Meeting Agenda PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota Council Chambers Thursday, August 16, 2018 7:30 AM I.Call to Order II.Roll Call III.Approval of Meeting Agenda IV.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta- for consideration at a future meeting. V.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 Commissioners present to approve.) A.Minutes: December 5, 2017 B.Minutes: July 26, 2018 C.Request for Purchase: Contract Extension for Interstate Parking Company D.North Ramp Expansion: Proposed Increase to Artwork Allowance VI.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Grandview Green: Planning Strategy and Next Steps B.Project Update VII.Correspondence A.Correspondences VIII.HRA Commissioners' Comments IX.Executive Director's Comments X.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: August 16, 2018 Agenda Item #: IV.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Sharon Allison, Executive Assistant Item Activity: Subject:Minutes: December 5, 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 technical changes to the December 5, 2017 minutes. INTRODUCTION: This request is from public works director Olson as requested by a title company assisting with fund disbursements for the North Ramp Expansion and Retail Shell Construction project. The change is in paragraph Item VII and is highlighted. ATTACHMENTS: Description Minutes: Dec 5, 2017 Page 1 MINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 5, 2107 10:47P.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 10:47 P.M. II. ROLLCALL Answering rollcall were Commissioners, Brindle, Fischer, Staunton, Stewart, and Chair Hovland. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Stewart and seconded by Commissioner Fischer approving the Meeting Agenda. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. IV. COMMUNITY COMMENT No Community Comment was received. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the consent agenda as follows: V. A. Approve minutes of November 21, 2017 Regular HRA Meeting V.B Approve license agreement: 5146 Eden Avenue to allow contractor parking during the Market Street North Ramp Expansion. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VI. A. PUBLIC HEARING: REVIEW OF 2018 HRA OPERATING BUDGET, RESOLUTION NO. 2017- 11: SETTING 2018 TAX LEVY AND ADOPTING 2018 OPERATING BUDGET. Affidavit of Notice presented and placed on file. Executive Director Presentation Executive Director Neal noted the HRA began an annual levy in 2017 to pay a portion of the administrative expenses necessary to operate the HRA. Mr. Neal explained those expenses had been paid using TIF funds however, that option will become more difficult as the Centennial Lakes TIF District funds gets spent down and the district decertified in 2021. To reduce the reliance on TIF for general administrative expenses, the levy proposed for 2018 was increased from $95,000 in 2017 to $125,000 for 2018. He concluded that no changes have been made to the proposed HRA Operating Budget or Tax Levy from what was approved by the HRA on September 6, 2017. Chair Hovland open the public hearing at 10:48 p.m. Public Testimony No one appeared. Commissioner Staunton made a motion, seconded by Commissioner Fischer to close the public hearing. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. Commissioner Staunton made a motion, seconded by Commissioner Brindle to adopt Resolution No. 2017-11 adopting the budget for the Edina Housing and Redevelopment Authority for the year 2018 and establishing tax levy payable 2018. Minutes/HRA/December 5, 2017 Page 2 Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VII. REQUEST FOR PURCHASE: AWARD OF BID, IMPROVEMENT PW - 18-001, NORTH RAMP EXPANSION AND RETAIL SHELL CONSTRUCTION. 10:5 Public Works Director Olson explained bids were opened for the North Ramp Expansion and retail shell construction project on November 29, 2017 and included four add alternates that staff was recommending for approval. Add Alternate 1 was to install the wood look extruded aluminum louvers that were shown on graphics presented to the City Council on November 8, 2017. Add Alternate 2 and 3 defined the cost participation from the Developer of the South Market Street Project and Add Alternate 4 was to change the metal stair on the east end of the project to a cast in place concrete stairway to be consistent with the other stairwells in the project. Mr. Olson explain the bids received were very good and staff was recommending the low bidder of Adolfson & Peterson. He added that staff was also requesting the ability to authorize change order of up to $50,000 in order to keep construction on schedule. All change orders would be brought to the HRA for review. Motion by Commissioner Brindle seconded by Commissioner Fischer to award the bid for the North Ramp Expansion and Retail Shell Construction to Adolfson and Peterson Construction in the amount of $8,502,410 and allow staff to approve individual change orders of up to $50,000 if the construction contingency in the amount of $850,241 has not been utilized. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. VIII. REQUEST FOR PURCHASE: ENVIRONMENTAL SERVICES CONTRACT FOR NORTH RAMP EXPANSION Mr. Olson explained the Braun Intertec has been providing the same services to the Market Street Developer for their portion of the Market Street project and for the sake of consistency, staff recommended using Braun for the City’s ramp improvements. Motion to approve the scope of services for Braun Intertec to complete environmental professional service and reporting for the Response Action Plan for the Minnesota Pollution Control Agency (MPCA), by Commissioner Brindle, seconded by Commissioner Fischer. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. IX. MARKET STREET REDEVELOPMENT: CONSTRUCTION MITIGATION AND PARKING MANAGEMENT PLAN Mr. Neal outlined the process staff had used to develop the construction mitigation and parking management plan, noting the plan will be updated as needed during construction. Bill Neuendorf, Economic Development Manager, explained the construction mitigation and parking plan pertained to measures anticipated to be taken to mitigate construction impacts and parking management during the expansion of the North Parking Ramp and reconstruction of the Center Ramp site. He stated the provisions were prepared based on extensive input from neighbors and businesses located in closest proximity to the project. Staff and the HRA discussed various aspects of the plan. The HRA thanked staff for their work in developing the mitigation plan. Commissioners urged staff to do more communication residents near the affected area. IX. PRELIMINARY DEVELOPMENT AGREEMENT - 5146 EDEN AVENUE. Mr. Neal introduced the topic, noting that staff had sought policy guidance from the HRA earlier this year regarding the disposition of the vacant property at 5146 Eden Avenue. The HRA Board directed staff to revive the partnership with Frauenshuh and update the Redevelopment Agreement before the end of the year. Mr. Neuendorf noted the previous partnership effort with Frauenshuh was completed in 2016. At that time, no action was taken on the public/private redevelopment concept because the public element (a 70,000 Sq Ft community center with structured parking) was deemed to be too expensive. Mr. Neuendorf briefly highlighted the Preliminary Development Agreement negotiated with Frauenshuh, noting that the agreement was grounded in the seven Guiding Principles of the Grandview Framework and informed by the Minutes/HRA/December 5, 2017 3 Framework Plan and Transportation Plan. He said the team will consider the suggestions, comments and concerns amassed over the last ten years as they prepare a new concept. Mr. Neuendorf stated that Dave Anderson from Frauenshuh and Dean Dovolis, DRG Architect, were in attendance and available for questions. The Development Agreement would be a joint public private endeavor that might include: new multi-family housing both market rate & affordable, shared district parking, new public facility with indoor and outdoor space. The HRA and staff discussed the terms of the Agreement and circumstances that would cause reimbursement of developer’s costs. Staff was directed to ensure that the new agreement recognize any credit remaining from the conclusion of the 2015/2016 partnership. Motion to approve the Preliminary Development Agreement and authorize staff to implement the agreement by Commissioner Staunton seconded by Commissioner Fischer. Ayes: Brindle, Fischer, Staunton, Stewart, Hovland Motion carried. X. ADJOURNMENT Chair Hovland declared the meeting adjourned at 11: 50 p.m. Respectfully submitted, Scott Neal, Executive Director Date: August 16, 2018 Agenda Item #: IV.B. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Sharon Allison, Executive Assistant Item Activity: Subject:Minutes: July 26, 2018 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: Review and approve the draft minutes of July 26, 2018. INTRODUCTION: ATTACHMENTS: Description Draft Minutes: July 26, 2018 Page 1 MINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JULY 26, 2018 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:35 a.m. II. ROLLCALL Answering rollcall were Commissioners Fischer, Staunton, Chair Hovland, and Stewart. Absent: Brindle III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the Meeting Agenda. Ayes: Fischer, Hovland, Staunton, Stewart Motion carried. IV. COMMUNITY COMMENT – None. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the consent agenda. V.A. Minutes of July 13 and 16, 2018 Recessed Meetings. V.B. Acknowledging an Interfund Loan for Advance of Certain Costs in Connection with Grandview 2 TIF District. V.C. Authorize Temporary License Agreement with Stevens Construction Corporation. VI. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. Potential Sale of Real Estate at 5146 Eden Avenue – Updated Business Terms with Frauenshuh, Inc. Mr. Neuendorf explained that on June 28, the HRA named Frauenshuh, Inc, the preferred developer for the site at 5146 Eden Avenue and since that time, staff and developer agreed on a simplified deal structure and a new concept that subdivided the site into two parcels allowing each party to construct a separate stand-alone building and add more parking. Mr. Dave Anderson, Frauenshuh, Inc, showed a new rendering with the site divided into two parcels. The HRA discussed the following: 1. Land Price: the business terms included selling the land to Frauenshuh for a proposed sales price of $2.989 million. The HRA recommended an appraisal of the land because the proposed sale price was $2.5 million less than the sale price of the old school bus garage. 2. Affordable Housing: Frauenshuh requested $1.2 million in low interest loan from the HRA or Edina Housing Foundation. The HRA suggested the Foundation administer the loan, if approved, and the HRA would like a 30-year term of affordability instead of the usual 15-year term. 3. Public Space: Victor Pechaty, HGA Architects, presented an initial programmatic study of the new public building and outdoor space and Director Kattreh presented proposed capital costs and net operation loss. The HRA expressed a desire to have an event space and space that would serve as a hub for the community and potential light rail users. The HRA acknowledged the increased costs for adding these extra amenities and additional parking. The HRA directed staff to perform an appraisal of the land, consider preserving space for a light rail station, consider a new public building design that included an event space, and get feedback from the Edina Housing Foundation on loan disbursement. Minutes/HRA/July 26, 2018 2 VI.B. PROJECT UPDATE Mr. Neuendorf updated the HRA on several potential redevelopment projects that may involve the HRA. VI.C. TAX INCREMENT FINANCING FOR PENTAGON PARK SOUTH: 4815-4901 WEST 77TH STREET AND 7710 COMPUTER AVENUE Mr. Neuendorf explained that staff reached an agreement with developers Hillcrest Development and Solomon Real Estate to build a two-phase project to serve as a catalyst development on the Pentagon Park South parcel. The agreement reached included $18.1 million in a TIF pay-as-you-go note to be issued as three payment notes, and a minimum special assessment agreement. The HRA noted that initially, staff had recommended TIF amount of $14.1 million and asked what changed why staff was recommending the developer’s full TIF request of $18.1 million. Mr. Anhut explained that staff still believed the project’s value was $14.1 million. However, with minimal risk to the City, staff was able to structure an agreement for the developer’s full requests with TIF payments made in three payment notes. Each note would have conditions imposed at each stage of payment to protect the City. Additionally, the minimum assessment would be implemented if the value of the project was below the value of the TIF note. Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the terms negotiated with the developers and authorizing staff to prepare a full Tax Increment Financing Agreement for the Pentagon Park South project. Ayes: Fischer, Hovland, Stewart Nay: Staunton Absent: Brindle Motion carried. VII. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:45 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Date: August 16, 2018 Agenda Item #: IV.C. To:Chair & Commissioners of the Edina HRA Item Type: Request For Purchase From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Request for Purchase: Contract Extension for Interstate Parking Company 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 contract extension with Interstate Parking Company. INTRODUCTION: This item pertains to the construction of the North Ramp Expansion, PW 2018-001. Staff recommends that the valet service be extended until December 31, 2018 to allow for a smooth customer transition to the full use of the completed North Ramp. ATTACHMENTS: Description Contract Extension RFP City of Edina • 4801 W. 50th St. • Edina, MN 55424 Request for Purchase Date: August 16, 2018 To: Chair & Commissioners of the Edina HRA From: Bill Neuendorf, Economic Development Manager Subject: Request for Purchase: Contract Extension for Interstate Parking Company Purchase Subject to: ☒List Quote/Bid ☐State Contract ☐Service Contract The Recommended Bid is: ☐Within Budget ☒Not Within Budget Interstate Parking Company was selected as the service provider in May 2018. Since that time, they have successfully provided valet services and parking oversight during the expansion of the North Parking Ramp. High quality service has been provided six-days per week with very few complaints or problems. This service contract is scheduled to end September 30, 2018. While the North Ramp construction will be substantially completed in September, staff recommends that the valet service be continued through the upcoming holiday season until December 31, 2018. It has taken customers several months to get accustomed to using valet and it would be beneficial to the overall business climate to transition away from valet after the busy holiday season. The hourly rate for valet service will remain at $25.00 per hour of service. The monthly supervision fee will be reduced from $8,000 per month to $2,000 per month. The total cost of the additional 3-months of service will be approximately $70,000. While the developer agreed to pay for 22 percent of the cost of the initial 9-months of service, this additional service will be fully funded by the HRA as part of the construction cost of the North Ramp Expansion. Funding will come from the funds previously approved to be spent on an employee shuttle service. That service was discontinued due to lack of participation. Staff recommends the extension of valet parking until December 31, 2018 and recommends that Interstate Parking continue to be the service provider. Date Bid Opened or Quote Received: Bid or expiration Date: May 3, 2018 NA Company: Amount of Quote or Bid: Interstate Parking Company $25.00 per hour of service Recommended Quote or Bid: Page 2 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Request for Purchase Department Director Authorization: _____________________________ HRA Authorization Date: ______________________ (for purchases over $20,000 only) Budget Impact Funding for this professional service contract is from a combination of TIF funds and sales proceeds from the sale of the Center Parking Ramp and the North Ramp retail space. Environmental Impact Minimal, if any. Community Impact The reduction in available parking during the simultaneous construction of the North Ramp and Nolan Mains/Center Ramp has been challenging. While most businesses at 50th and France have continued success, some businesses near the construction site have noted significant slowing in sales and customer traffic. High-quality, well-managed valet service will benefit the customers and businesses as the construction project enters its second and final stage. Date: August 16, 2018 Agenda Item #: IV.D. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:North Ramp Expansion: Proposed Increase to Artwork Allowance Information 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 requested; for information only. INTRODUCTION: The purpose of this report is to advise you that the costs will likely exceed the original budget. See attached staff report. ATTACHMENTS: Description Staff Report: Artwork Allowance August 16, 2018 Chair and Commissioners of the Edina HRA Bill Neuendorf, Economic Development Manager North Ramp Expansion: Proposed Increase to Artwork Allowance Information / Background: The final design for the artwork to be installed on the east side of the new facility has been selected. The designer, Heather Novak-Peterson has worked with representatives from the business community, Arts Commission and other community representatives to refine the initial concept. The concept was selected based upon nearly 800 survey responses from the public of Edina. That survey was distributed online using Nextdoor.com and word of mouth to encourage participation. Based on the preferences and suggestions received from the community, the fabrication and installation costs are higher than originally anticipated. The original budget provided an allowance of $20,000 for a one- dimensional mural. The actual costs of a 3-dimensional illuminated art design will likely be $35,000 to $60,000. In the weeks ahead, staff will solicit bids from more fabricators and submit a formal Request for Purchase based on the lowest responsible bid. Additionally, the construction budget did not include an allowance for wayfinding signage or decorative entrance element. Based on the large size and scissor-like layout of the ramp, wayfinding is especially important to create the desired environment and to minimize confusion. Staff is preparing a cost-effective strategy to provide decorative wayfinding elements on the interior of the ramp. These elements will include a colorful artistic display at the main entrance to the North Ramp and artistic wraps or signage mounted on strategic interior columns. A “call for artists” is anticipated to solicit designs for the entrance sign. The interior wayfinding system is anticipated to be produced in-house to keep costs manageable. These elements are intended to create a welcoming first impression, reduce confusion and to help customers remember the level on which they parked their vehicle. The total cost of these finishing touches is not expected to exceed $20,000. When additional details are available, staff will submit a final request to adjust the budget to include these two items. Date: August 16, 2018 Agenda Item #: V.A. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Grandview Green: Planning Strategy and Next Steps 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 requested; for discussion only. INTRODUCTION: This item pertains to the long-term conceptual planning for a portion of the Grandview Commercial District and a potential "freeway lid" or "land bridge" constructed on top of limited portions of Highway 100. ATTACHMENTS: Description Staff Report: Grandview Green August 16, 2018 Chair and Commissioners of Edina HRA Bill Neuendorf, Economic Development Manager Grandview Green: Planning Strategy and Next Steps Information / Background: The following information is provided for discussion purposes. Specific action is not requested at this time. The Edina Housing and Redevelopment Authority (HRA) has conducted a preliminary study to understand the general feasibility of constructing a “freeway lid” over a limited portion of Minnesota Highway 100. This concept was raised in the early community advisory stage (2008) of the Grandview District planning efforts and revived in 2014 with input from the University of Minnesota’s Metropolitan Design Center. MnDOT and City staff have been engaged in regular conversations since 2014. In recent years, the Edina HRA has engaged relevant consultants and advisors to explore the concept to determine if any “fatal flaws” would prevent this type of redevelopment strategy in this location. Community open houses, focus groups and stakeholder conversations have also been conducted. Approximately $368,000 has been invested from 2015 to 2018 to understand the potential and viability of this concept. These initial studies and conversations have identified strong potential and no “fatal flaws” have been identified. A few cautions have been identified (traffic flow, building height and density) that will require further study. Preliminary financial estimates indicate that a public/private redevelopment strategy is also likely to generate adequate new property taxes to pay for the infrastructure improvements that would benefit the broader community. In April 2018, the consultant studies were presented to the HRA Board for discussion purposes. That conversation raised two clear themes: (1) this concept holds merit and should be included in the City’s long STAFF REPORT Page 2 term redevelopment strategies; and (2) this concept is not ready for implementation at this time and funding for additional engineering is not authorized. Staff recommends three actions to continue the exploration of this concept: 1) Approve Resolution that recommends that the Planning Commission and City Council include the Grandview Green concept as part of the 2018 Comprehensive Plan update. a. This could be drafted and considered in September. 2) Prepare initial land lease terms with MnDOT by December 31, 2018 to identify a path for future implementation. This would include lease terms with the HRA and separate lease terms with future developers. a. HRA and MnDOT staff are poised to continue the dialogue after taking a break over the summer months. b. A first draft of policy statements is attached for review and discussion. It will be helpful to clearly understand the fundamentals as a lease framework is negotiated with MnDOT. 3) Work in partnership with MnDOT, other agencies and other municipalities with similar projects to identify best practices for creating public financing tools and real estate strategies to implement this type of project in the future. a. Other cities are also considering “freeway lids” in strategic locations. A loose network of representatives meets to discuss advances and progress on various issues pertaining to “freeway lids”. b. Edina is capable of maintaining an active role in these conversations to ensure that any policies or programs established will work in Edina as well as other communities. Discussion regarding these three proposed actions is requested. STAFF REPORT Page 3 Proposed HRA Position Statements Regarding Grandview Green DRAFT FOR DISCUSSION August 15, 2018 Based on the information collected to date, the following positions are generally supported by the HRA and recommended for future study and consideration. 1) GENERAL a. The “freeway lid” strategy holds merit at Highway 100 between Vernon Avenue/50th Street and Eden Avenue. b. The “freeway lid” strategy should be included in Edina’s 2018 Comprehensive Plan for future consideration. c. At this time, no additional funding is authorized for engineering or design of the “freeway lid”. 2) LAND USE PLANNING a. This area should be guided for mixed-use zoning. b. A form-based code and/or design guidelines should be considered in future implementation strategies. c. District-wide strategies should be considered to improve efficiency of infrastructure and service expenses. d. New multi-family residential units should be delivered at a variety of price points – including units that are affordable to households of limited means. e. Building height should be lowest in the northeast parcels so as limit impacts to the Sunnyslope residential neighborhood. Taller buildings should be located along the southern parcels and west of Highway 100. f. New buildings should be designed and operated to limit negative impacts to the environment. Design standards, such as LEED certification, should be considered. g. Scale and scope of each building should be considered on a case-by-case basis but with an understanding of their impact to the surrounding District and transportation systems. STAFF REPORT Page 4 h. Land uses open to the public should line both sides of the public park. This could include elements operated by public entities or semi-public uses like sidewalk cafes. i. Existing historic buildings should be preserved and relocated at a more appropriate location, possibly to a site closer to their original location. 3) TRANSPORTATION a. Adequate width must be provided for future expansion of Highway 100, as recommended by MnDOT. b. Full access to Highway 100 must be maintained in the Grandview District. c. Inclusion of future bus-rapid-transit or other transit service to be considered at this location. d. New development should not worsen existing conditions on local roads, as measured by Level of Service below normally accepted levels. e. Improvements should be considered at the 50th/Dale or 50th/Sunnyslope intersection(s) to ensure access to the Sunnyslope residential neighborhood. 4) IMPLEMENTATION STRATEGY a. This effort is best achieved using an appropriate type of public/private partnership. b. The HRA/City should retain industry experts as advisors to implement the infrastructure and redevelopment projects. c. Private-sector partners should be identified using a Request for Qualifications process. d. Each new building should be market-driven so that the projects are successful. 5) REAL ESTATE STRATEGIES a. Air rights above the freeway should be retained for public uses. STAFF REPORT Page 5 b. An air rights agreement, public easement or license agreement should be negotiated to ensure public use above the freeway. c. No charges or fees are anticipated for the air rights provided that that space is used for public purposes. d. New private construction on MnDOT right-of-way are anticipated to be leased at market rates based on terms acceptable to MnDOT. e. New private construction on land owned by City of Edina or Edina HRA are also anticipated to be leased or sold at market rates based on term acceptable to Edina. 6) CONSTRUCTION FUNDING a. New property taxes and other related value should be used to fund the construction of the infrastructure. b. State bonding should be pursued to issue public debt for the public infrastructure elements. Privately-owned elements should be funded privately through the traditional markets. c. Tax increment financing (TIF) or other value-capture strategies should be pursued to fund infrastructure elements. d. New civic buildings should be funded by the responsible agency (school district, city, county, etc.). e. New private buildings should be privately funded. TIF should be used for public infrastructure elements only. 7) MAINTENANCE FUNDING a. Fees or assessments from new construction near the freeway lid should be used to fund maintenance of the infrastructure. b. Maintenance of Highway 100, including on and off-ramps should be funded by MnDOT. c. Maintenance of the public park above Highway 100, should be funded by the City of Edina with contributions from adjacent parcels who benefit from the park. STAFF REPORT Page 6 d. New civic buildings should be maintained by the responsible agency (school district, city, county, etc.). e. Maintenance responsibility of the “lid” infrastructure should be shared by multiple parties with specific participation to be determined. 8) COMMUNITY ENGAGEMENT a. Additional community engagement and public input is required as part of the preliminary engineering and modifications of land use regulations. Date: August 16, 2018 Agenda Item #: V.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Project Update Information 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; for information purposes only. INTRODUCTION: A report of active projects is attached. Staff is prepared to answer questions, if necessary. ATTACHMENTS: Description HRA Project Update 8-16-18 HRA Redevelopment Project Update August 16, 2018 Address Project Description Status North of Hwy 62 4500 France Ave. Redevelopment of vacant Edina Cleaner site; request for TIF for 4-story mixed-use project by Orion Investments Staff is reviewing pro forma, preliminary review indicates very high development costs for a project of this scale; additional review and negotiation is needed if this is to be a viable project 3925 Market St. Redevelopment of the former Center Parking Ramp with Nolan Mains apartments and new public parking Actively under construction; completion Fall 2019 3930-3944 Market St. Expansion of North Parking Ramp to include more public parking and first floor retail space Under construction; on track for substantial completion September 2018 5146 Eden Ave. Redevelopment of vacant site to potentially include about 150 apartments with 45,000 Sq. Ft. Public Building with new park Negotiating terms of sale with Frauenshuh and studying design program of new public building with HGA; an appraisal of value is being performed; additional discussion anticipated in September Hwy 100 @ Vernon & Eden Ave. New public park (Grandview Green) built on top of Highway 100 using a “freeway lid”; infrastructure to be funded by new property taxes from private construction on 8-acres of new land created on un-used right-of-way Edina and MnDOT executed MOU; concept continues to be refined; real estate lease structure anticipated by 12/31/18 Edina HRA Project Update August 16, 2018 Page 2 Address Project Description Status Greater Southdale Area 7200 and 7250 France Ave. Redevelopment of two older office buildings; owner has submitted new concept plans for input from Planning Commission and City Council. The project now includes both sites and the redesign strives to address the concerns raised about the previous site plan. Property owner requested TIF for the previous concept (that was rejected); a follow-up request for TIF is anticipated. Further study remains ‘on hold’ until the developer determines whether the redesign has merit. 4100 W. 76th St. Redevelopment of office building; request for City support to develop 80- units of affordable housing by Aeon HRA has pledged local funds; Aeon is applying for primary funding; site plan review anticipated late summer/early fall 2018 7001 York Ave. Redevelopment of Hennepin County’s Southdale Regional Library with potential for addition development on unneeded portion of the site Hennepin County is preparing concept plans and determining how much land will be sold; next public meeting anticipated September 2018 Pentagon Park 4600-4660 W. 77th St. Redevelopment of 12-acres of the Pentagon Park North property for market-rate and senior housing by Chase Real Estate (approx. 585 total units). Developer has requested $14.7 million in TIF to offset the high cost of soil correction and public improvements. HRA Board discussed at June 28th meeting and confirmed the staff recommendations regarding TIF assistance and adherence to affordable housing policy. Developer has submitted counteroffer which is under review by staff. Final action is possible in September or October. 4815-4901 W. 77th St. and 7710 Computer Ave. Redevelopment of 12-acres of the Pentagon Park South property for retail, hotels and market-driven office/residential uses by Solomon Real Estate & Hillcrest joint venture. Developer has requested $18.1 million in TIF to offset the high cost of soil correction, structured parking and public improvements. HRA Board discussed at June 28th meeting and confirmed the staff recommendations regarding level and type of TIF assistance. HRA attorney is drafting full TIF Agreement based on the terms that were mutually agreeable to HRA Board and Developer. Final action anticipated in September. 4820 W. 77th St. Potential redevelopment for affordably- priced housing; related to Pentagon Park North Waiting for application. Prepared August 10, 2018 Date: August 16, 2018 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Sharon Allison, Executive Assistant Item Activity: Subject:Correspondences Information 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: None. INTRODUCTION: There are no correspondences since the last HRA meeting.