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HomeMy WebLinkAbout2018-10-25 HRA Regular Meeting Agenda PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota City Hall Council Chambers Thursday, October 25, 2018 8:15 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: Work Session and Regular Meeting, October 11, 2018 B.Resolution 2018-10: Finding of Substandard Buildings at 4500 France Avenue VI.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Project Update B.A-ordable Housing Sewer and Water Residential Equivalency Charge Fee Reduction VII.Correspondence A.Correspondence 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: October 25, 2018 Agenda Item #: IV.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Sharon Allison, Executive Assistant Item Activity: Subject:Minutes: Work Session and Regular Meeting, October 11, 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: Approve the October 11, 2018, work session and regular meeting minutes of the HRA. INTRODUCTION: ATTACHMENTS: Description Work Session Minutes Regular Meeting Minutes Page 1 MINUTES OF WORK SESSION OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 11, 2018 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:31 a.m. II. ROLLCALL Answering rollcall were Commissioners Fischer, Staunton, Chair Hovland, Brindle, and Stewart. East Edina Housing Foundation (EHF) board members present: Jeff Huggett, Ann Swenson and Mary Kay McNee III. JOINT MEETING WITH THE EDINA HOUSING FOUNDATION Stephanie Hawkinson, Affordable Housing Manager, said this was an opportunity for the HRA and EHF, which is advisory to the HRA, to discuss their working relationship. They discussed meeting quarterly and how to communicate between meetings as it relates to the EHF providing feedback on proposed residential developments and assisting with housing policy goals and objectives. Ms. Hawkinson provided an update on the Amundson site that the EHF purchased. She said they are accepting proposals from three developers for redevelopment of the 1.2-acre site; however, none is consistent with the current zoning and small area plan and all three would need a PUD. Applications were received to fill the EHF’s vacant board position and interviews will be scheduled soon. IV. ADJOURNMENT Chair Hovland adjourned the meeting at 8:15 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Page 1 MINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 11, 2018 8:15 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 8:20 a.m. II. ROLLCALL Answering rollcall were Commissioners Fischer, Staunton, Chair Hovland, Brindle, and Stewart. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Brindle seconded by Commissioner Fischer approving the Meeting Agenda. Ayes: Fischer, Staunton, Hovland, Brindle, Stewart Motion carried. IV. COMMUNITY COMMENT – None. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the consent agenda. V.A. Minutes of September 13, 2018. V.B. Settlement Agreement: 3945 West 49th Street. V.C. North Ramp Expansion: Amended Easement Agreement with LB 49th-1/2 Street LLC. V.D. Resolution No. 2018-08: Requesting Public Hearing for November 20, 2018, for West 76th Street Tax Increment District Financing Plan. VI. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. STATEMENT REGARDING GRANDVIEW GREEN The HRA approved language to be included in the 2018 Comprehensive Plan regarding Grandview Green. Staff were directed to discontinue spending on research, advocating for legislative changes, and negotiating lease term with MNDOT for the “lid.” Motion made by Commissioner Staunton seconded by Commissioner Stewart approving recommended statement on Grandview Green be included in the 2018 Comprehensive Plan and direct that staff suspend further expenditures on the Grandview Green concept including but not limited to engagement of consultants to advocate for changes in state law facilitating financing of lids and lease language with MNDOT. VI.B. RESOLUTION NO. 2018-09: ESTABLISHING 44TH & FRANCE 2 TAX INCREMENT FINANCING (TIF) DISTRICT Mr. Neuendorf stated that Items VI.B and VI.C on the agenda were related items. He explained that this TIF district was for a specific site, 4500 France (1-acre), and not for the entire 5-acre district site. Because of a lack of parking in the area, the HRA was concerned that approving only 1-acre would not allow for parking improvements. Mr. Neuendorf explained that the City does not have site control or funding available to include the entire 5-acre parcel and staff did not conduct a parking study. He said the proposed development at 4500 France is a manageable project that can deliver fast results with 40 new parking stalls paid for and maintained by the developer. Additionally, Mr. Anhut, explained that when other properties become available the district could be expanded, or a new district created, plus, the City could pool monies from other districts to spend in the 44th & France TIF district for parking improvements. Mr. Neuendorf said staff and the City’s advisors supports the requested TIF funding of up to $2.3 million with a claw back and other typical Minutes/HRA/October 11, 2018 2 arrangements in a 15-year district. Executive director Neal said because parking is a high priority, staff would begin the planning process for improvements in 2019. Motion made by Commissioner Fischer seconded by Commissioner Brindle approving Resolution No. 2018-09 establishing the 44th and France 2 Tax Increment Financing District and approving a Tax Increment Financing Plan. Ayes: Fischer, Staunton, Hovland, Brindle, and Stewart. Motion carried. VI.C. 4500 FRANCE APARTMENTS: TERM SHEET FOR TAX INCREMENT FINANCING Motion made by Commissioner Fischer seconded by Commissioner Staunton approving Term Sheet and authorizing staff to prepare a full Redevelopment Agreement based on approved terms. Ayes: Fischer, Staunton, Hovland, Brindle, and Stewart. Motion carried. VI.D. REDEVELOPMENT AGREEMENT WITH PENTAGON VILLAGE, LLC Mr. Neuendorf stated there had not been any substantive changes since this project was last presented to the HRA this past summer. He said the developer requested $18.1 million TIF for the 12-acre site and staff and the City’s advisors recommended approval. The funds would be distributed as three separate TIF Notes and awarded based on specific work completion deadlines. Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the Pentagon South Redevelopment Agreement with Pentagon Village, LLC, and approving the first amendment to the 2014 Master Redevelopment Agreement and authorized staff to implement the terms of the agreements. Ayes: Fischer, Hovland, Brindle, and Stewart. Nay: Staunton. Motion carried. VI.E. AFFORDABLE HOUSING SEWER AND WATER AVAILABILITY CHARGE FEE REDUCTION Motion made by Commissioner Staunton seconded by Commissioner Fischer to continue Affordable Housing Sewer and Water Availability Charge Fee Reduction to the October 25, 2018, HRA meeting. Ayes: Fischer, Staunton, Hovland, Brindle, and Stewart. Motion carried. VII. CORRESPONDENCE – None. VIII. HRA COMMISSIONERS’ COMMENTS – None. IX. EXECUTIVE DIRECTOR’S COMMENTS – None. X. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 10:10 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Date: October 25, 2018 Agenda Item #: IV.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Resolution 2018-10: Finding of Substandard Buildings at 4500 France Avenue 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 Resolution 2018-10. INTRODUCTION: This item pertains to the redevelopment of 4500 France Avenue in the 44th & France Neighborhood Node. The August 2018 Small Area Plan identified several community goals to improve this area. Among the most significant goals are the creation of a shared parking strategy (e.g. District or public parking) among the commercial properties and the creation of district-wide storm water retention. In the future, it may be desirable to create a 26-year Redevelopment Tax Increment Financing (T IF) District to provide financing for these public improvements. Staff has completed a preliminary review of the existing properties in the area and has determined that several existing buildings are likely to meet the criteria for inclusion in a future Redevelopment TIF District. This Resolution recognizes that the two buildings at 4500 France also meet the State's criteria for a 'sub-standard" building. It is intended to provide flexibility to address future community goals in case a broader TIF District is desirable in the future. ATTACHMENTS: Description HRA Resolution No. 2018-10 Substandard Buildings Stantec Report Oct 9, 2018 Staff Memo - Building Conditions Oct 16, 2018 RESOLUTION NO. 2018-10 FINDING THAT PARCELS ARE OCCUPIED BY STRUCTURALLY SUBSTANDARD BUILDINGS BE IT RESOLVED by the Board of Commissioners of the Edina Housing and Redevelopment Authority (the “HRA”), as follows: 1. The HRA intends to include in a tax increment financing district to be created by HRA under Minnesota Statutes, Sections 469.174 to 469.1794 (the “TIF District”), five tax parcels located in the City of Edina (the “City”) at 4500 France Avenue South and 3903, 3905, and 3907 Sunnyside Road consisting of PID #s 0702824440066, 0702824440067, 0702824440068, 0702824440069, and 0702824440070 (the “Parcels”), on which the former Edina Cleaners and Launderers, two single family residences, and one paved parking lot are located. 2. The HRA has engaged Stantec to inspect the Parcels and the buildings located on four of the five Parcels and to prepare a report as to the Parcels and the conditions of the buildings. A copy of the report of Stantec dated October 9, 2018 (the “Stantec Report”), has been presented to and reviewed by the Board of Commissioners. It is expected that the buildings located on the Parcels will be demolished and removed by the City prior to the creation of the TIF District, and the cost of such demolition and removal will be financed by the HRA or done by a developer pursuant to a development agreement. 3. The Board of Commissioners hereby finds as follows: (a) that the Parcels, consisting of 100 percent of the area of the proposed TIF District, are occupied by buildings, streets, utilities, or paved drives or parking lots; (b) that two of the four buildings (50 percent) located on the Parcels are structurally substandard within the meaning of Minnesota Statutes, Section 469.174, Subd. 10(b), since they contain defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance; (c) that two of the four buildings (50 percent) located on the Parcels are not in compliance with the building code applicable to new buildings and require substantial renovation and could not be modified to satisfy the building code at a cost of less than 15% of the cost of constructing a new structure of the same square footage and type on the Parcels; (d) that the conditions described in (a), (b), and (c) above are reasonably distributed throughout the geographic area of the proposed TIF District. (e) after the demolition and removal of the buildings on the Parcels, the HRA intends to include the Parcels within the proposed TIF District. In making the findings under (a)- (d) above, the HRA is relying on the Stantec Report. Dated: October 25, 2018 Attest: Robert J. Stewart, Secretary James B. Hovland, Chair 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 October 25, 2018, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. Executive Director Final Report of Inspection Procedures and Results For Determining Qualifications of a Tax Increment Financing (TIF) District as a Renewal and Renovation District Edina HRA Proposed TIF District Edina, Minnesota Stantec Project No. 193804402 October 9, 2018 Page 2 Table of Contents PART 1 Executive Summary 3 Purpose of Evaluation 3 Scope of Work 3 Conclusion 4 PART 2 Minnesota Statute 469.174, Subdivision 10 Requirements 4 PART 3 Procedures Followed 6 PART 4 Findings 7 A. Coverage Test 7 B. Condition of Building Test 8 1. Replacement Cost 8 2. Code Deficiencies 8 3. System Condition Deficiencies 9 C. Distribution of Substandard Structures 11 D. Conclusion 11 PART 5 Team Credentials 12 APPENDIX A Map of Proposed TIF District Hennepin County Property Maps APPENDIX B Building Code and Condition Deficiencies Reports APPENDIX C Code Deficiency Estimated Replacement Costs APPENDIX D Photographs Page 3 PART 1 – EXECUTIVE SUMMARY PURPOSE OF EVALUATION Stantec was retained by the City of Edina HRA to inspect and evaluate the properties within a Tax Increment Financing Renewal and Renovation District (“TIF District”) proposed to be established by the City. The proposed TIF District is located in the City of Edina, in a general area between Sunnyside Road on the west, and France Avenue South on the east (Figure 1). The purpose of Stantec’s work was to determine whether the proposed district meets the statutory requirements for coverage, and whether buildings on four of the five parcels, located within the proposed TIF District, meet the qualifications required for a Renewal and Renovation District. Figure 1 – Proposed TIF District SCOPE OF WORK The proposed district consists of five (5) parcels containing two (2) commercial buildings, two (2) residential buildings, and one (1) on-grade paved parking lot. All the buildings in the proposed district received an onsite interior and exterior inspection. Building Code and Condition Deficiency Reports for each building inspected by Stantec are in Appendix B. Page 4 CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District does qualify as a Renewal and Renovation District. The remainder of this report describes our process and findings in detail. PART 2 – MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10a, which states: Interior Inspection "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." Exterior Inspection and Other Means "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Qualification Requirements Minnesota Statutes, Section 469.174, Subdivision 10(a)requires two tests for occupied parcels: 1. Coverage Test ”…parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: " For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.” Page 5 2. Condition of Building Test …”20 percent of the buildings are structurally substandard; and 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community; and (2) the conditions described in clause (1) are reasonably distributed throughout the geographic area of the district.” 1. Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: “For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.” Definition of Substantial Renovation Substantial renovation, for purposes of Minnesota Statutes, Section 469.174, Subdivision 10(c), is defined as renovation with costs exceeding 15 percent of the building's replacement value. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section Page 6 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard." "Items of evidence that support such a conclusion include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." PART 3 – PROCEDURES FOLLOWED Stantec performed interior and exterior inspections for both commercial buildings and both residential buildings within the proposed TIF District on September 26, 2018 and October 3, 2018. Visual observations were made of all levels of all properties and structures, with physical measurements taken where necessary. Area calculations and construction data are based upon information from various sources, as noted. Page 7 PART 4 – FINDINGS A. Coverage Test 1. The total square foot area of each parcel in the proposed TIF District was obtained from Hennepin County Property Map GIS mapping, and site verification. 2. The total square foot area of buildings and site improvements on the parcels in the proposed TIF District was obtained from City records, Hennepin County Property Map GIS mapping, and site verification. 3. The percentage of coverage for each parcel in the proposed TIF District was computed to determine if the 15 percent minimum requirement was met. The total square footage of parcels meeting the 15 percent requirement was divided into the total square footage of the entire district to determine if the 70 percent requirement was met. Findings: The proposed TIF District met the coverage test under Minnesota Statutes, Section 469.174, Subdivision 10(e), which resulted in parcels consisting of 100 percent of the area of the proposed TIF District being occupied by buildings, streets, utilities or paved drives or parking lots (Figure 2). This exceeds the 70 percent area coverage requirement for the proposed TIF District under Minnesota Statutes, Section 469.174, Subdivision 10(a) (1). Figure 2 – Coverage Test Aerial View Page 8 B. Condition of Building Test 1. Replacement Cost The first step in evaluating a building to determine if it is substandard to a degree requiring substantial renovation or clearance is to determine its replacement cost. This is the cost of constructing a new structure of the same square footage and type on site. Replacement costs were researched using R.S. Means Cost Works square foot models for 2018. A replacement cost was calculated by first establishing building use (office, retail, residential, etc.), building construction type (wood, concrete, masonry, etc.), and building size to obtain the appropriate median replacement cost, which factors in the costs of construction in Edina, Minnesota. Replacement cost includes labor, materials, and the contractor's overhead and profit. Replacement costs do not include architectural fees, legal fees or other “soft" costs not directly related to construction activities. Replacement cost for each building is tabulated in Appendix C. 2. Code Deficiencies The next step in evaluating a building is to determine what code deficiencies exist with respect to such building. Code deficiencies are those conditions for a building which are not in compliance with current building codes applicable to new buildings in the State of Minnesota. Minnesota Statutes, Section 469.174, Subdivision 10(c), specifically provides that a building cannot be considered structurally substandard if its code deficiencies are not at least 15 percent of the replacement cost of the building. Thus, it was necessary to determine the extent of code deficiencies for each building in the proposed TIF District. The evaluation was made by reviewing all available information with respect to such buildings contained in City Building Inspection records and making interior and exterior inspections of the buildings. Stantec utilized the 2015 Minnesota State Building Code as the official code for our evaluations. The Minnesota State Building Code is a series of provisional codes written specifically for Minnesota only requirements, adoption of several international codes, and amendments to the adopted international codes. After identifying the code deficiencies in each building, we used R.S. Means Cost Works 2018; Unit and Assembly Costs to determine the cost of correcting the identified deficiencies. We were then able to compare the correction costs with the replacement cost of each building to determine if the costs for correcting code deficiencies meet the required 15 percent threshold. Page 9 Finding: Two (2) of the four (4) buildings/structures (50 percent) in the proposed TIF District contained code deficiencies exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c). A complete Building Code and Condition Deficiency report for each building/structure in the proposed TIF District can be found in Appendix B of this report. 3. System Condition Deficiencies System condition deficiencies are a measurement of defects or substantial deterioration in site elements, structure, exterior envelope, mechanical and electrical components, fire protection and emergency systems, interior partitions, ceilings, floors, and doors. The evaluation was made by reviewing all available information contained in City records; and making interior and exterior inspections of the buildings. Stantec only identified system condition deficiencies that were visible upon our inspection of the building or contained in City records. We did not consider the amount of "service life" used up for a particular component unless it was an obvious part of that component's deficiencies. Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum threshold of code deficiencies that must be met in order to consider a building substandard. If a building meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), then in order for such building to be "structurally substandard" under Minnesota Statutes, Section 469.174, Subdivision 10(b), the building's defects or deficiencies should be of sufficient total significance to justify substantial renovation or clearance." Based on this definition, Stantec re-evaluated each of the buildings that met the code deficiency threshold under Minnesota Statutes, Section 469.174, Subdivision 10(c), to determine if the total deficiencies warranted "substantial renovation or clearance" based on the criteria we outlined above. Finding: In our professional opinion, two (2) of the four (4) buildings/structures (50 percent) in the proposed TIF District are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance as described below: Page 10 Edina Cleaners – 4500 France Avenue South – Parcel 0702824440066 This parcel is a paved parking lot. Edina Cleaners – 4500 France Avenue South – Parcel 0702824440067 This building was found to be structurally substandard with code deficiencies that exceed the 15 percent of the building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Edina Cleaners – 4500 France Avenue South – Parcel 0702824440068 This building was found to be structurally substandard with code deficiencies that exceed the 15 percent of the building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Private Residence – 3905 Sunnyside Road – Parcel 0702824440069 This residence has code and condition deficiencies, but they are not significant enough to reach the required 15 percent of building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Private Residence – 3907 Sunnyside Road – Parcel 0702824440070 This residence has code and condition deficiencies, but they are not significant enough to reach the required 15 percent of building replacement value criteria as defined by Minnesota Statutes, Section 469.174, Subdivision 10 (b) and (c). Page 11 C. Distribution of Substandard Structures Much of this report has focused on the condition of individual buildings as they relate to requirements identified by Minnesota Statutes, Section 469.174, Subdivision 10. It is also important to look at the distribution of substandard buildings throughout the geographic area of the proposed TIF District. Finding: The substandard buildings are reasonably distributed throughout the geographic area of the proposed TIF District (Figure 3). Figure 3 – Distribution of Substandard Structures (shown hatched green) D. CONCLUSION After inspecting and evaluating the properties within the proposed TIF District and applying current statutory criteria for a Renewal and Renovation District under Minnesota Statutes, Section 469.174, Subdivision 10a, it is our professional opinion that the proposed TIF District does qualify as a Renewal and Renovation District. The remainder of this report describes our process and findings in detail. Page 12 PART 5 – TEAM CREDENTIALS Bruce P. Paulson, AIA – Senior Project Manager/Inspector Bruce has more than 42 years of architectural experience as project architect, project manager, and project designer for municipal, governmental, educational, commercial, hospitality, and healthcare clients. He is involved with all phases of the architectural process, from pre-design through construction administration, including specialty consulting in investigations for buildings, building condition surveys, TIF inspections, code reviews, estimating, and specification writing. APPENDIX A Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440066 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 4500 France Ave S, Edina MN 55410 PARCEL AREA: 0.03 acres, 1,393 sq ft A-T-B: Abstract SALE PRICE: SALE DATA: SALE CODE: ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Vacant Land-Commercial HOMESTEAD: Non-Homestead MARKET VALUE: $27,900 TAX TOTAL: $5,744.70 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Vacant Land-commercial HOMESTEAD: Non-homestead MARKET VALUE: $64,100 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440067 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 4500 France Ave S, Edina MN 55410 PARCEL AREA: 0.15 acres, 6,741 sq ft A-T-B: Abstract SALE PRICE: SALE DATA: SALE CODE: ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Non Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $425,700 TAX TOTAL: $19,720.36 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-non Preferred HOMESTEAD: Non-homestead MARKET VALUE: $311,100 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440068 OWNER NAME: 4500 France Avenue Llc PARCEL ADDRESS: 3903 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.47 acres, 20,544 sq ft A-T-B: Torrens SALE PRICE: $975,968 SALE DATA: 02/2017 SALE CODE: Excluded From Ratio Studies ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Commercial-Preferred HOMESTEAD: Non-Homestead MARKET VALUE: $520,400 TAX TOTAL: $25,221.64 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Commercial-preferred HOMESTEAD: Non-homestead MARKET VALUE: $946,000 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440069 OWNER NAME: Ryann S Doucette PARCEL ADDRESS: 3905 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.2 acres, 8,659 sq ft A-T-B: Abstract SALE PRICE: $375,000 SALE DATA: 08/2016 SALE CODE: Warranty Deed ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Residential HOMESTEAD: Non-Homestead MARKET VALUE: $400,500 TAX TOTAL: $6,127.04 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Residential HOMESTEAD: Non-homestead MARKET VALUE: $406,100 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2018 Hennepin County Property Map Comments: 1 inch = 50 feet PARCEL ID: 0702824440070 OWNER NAME: Ryann S Doucette PARCEL ADDRESS: 3907 Sunnyside Rd, Edina MN 55424 PARCEL AREA: 0.2 acres, 8,590 sq ft A-T-B: Abstract SALE PRICE: $378,000 SALE DATA: 01/2014 SALE CODE: Warranty Deed ASSESSED 2017, PAYABLE 2018 PROPERTY TYPE: Residential HOMESTEAD: Non-Homestead MARKET VALUE: $434,200 TAX TOTAL: $7,529.48 ASSESSED 2018, PAYABLE 2019 PROPERTY TYPE: Residential HOMESTEAD: Non-homestead MARKET VALUE: $450,000 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2018 APPENDIX B CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No. & Property Address: 0702824440066 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 3:00 p.m. Inspection Type: Exterior. Summary of Conditions: On-grade paved parking lot. Type of Construction: Asphalt pavement. Structure Size(s): 1,393 SF Summary of Conditions: Paved parking lot appears to be in good condition. • There are no buildings on this parcel that would require an inspection. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440067 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Commercial Building; originally a service garage; converted to a dry cleaners Type of Construction: Exterior masonry bearing walls, cast-in-place concrete foundation and floor slab, wood-framed roof. Date of Construction: Original building constructed in 1928. Structure Size(s): 6,532 square feet main level; partial basement within building footprint Summary of Deficiencies: It is our professional opinion that this building is Structurally substandard because: o Estimated cost to correct building code deficiencies is more than 15% of the estimated replacement cost. Estimated Replacement Cost: $1,059,560.00 Estimated Cost to Correct Building Code Deficiencies: $405,298.00 Percentage of Replacement Cost for Building Code Deficiencies: 38.3% Description of Condition Deficiencies • Exterior doors (4) currently swing into the building and all are 32” wide doors. Current code requires exterior exit doors to swing in direction of egress travel and provide a minimum 32” clear width when open to 90 degrees. • Current code requires all outswinging exit doors to have a structural stoop with frost footings to prevent heaving which could restrict the door swing and access/egress capability. • Only one of the four exterior doors is aligned with existing exterior grade. The remaining three doors will require re-grading of existing parking lot and/or sidewalks for the doors to comply with ADA requirements for an accessible route. • Stair to partial basement level does not comply with current code for tread depth and riser height. • Restroom is not in compliance with ADA guidelines. Per current code two restrooms are required to accommodate an occupant load of 66. • All exterior windows are single-glazed. • All exterior walls are uninsulated. • Wood roof framing is not fire-retardant treated. • Fully adhered EPDM roofing membrane system has failed at several locations, causing water intrusion damage to the wood roof framing members. • The existing roof is under-insulated. • The existing lighting system does not comply with current codes for daylight harvesting and energy-efficiency. • The existing mechanical system does not comply with current codes for ventilation. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440068 4500 France Avenue South Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Commercial Building (originally a theater) and paved parking lot; currently a dry cleaners Type of Construction: Exterior masonry bearing walls, cast-in-place concrete foundation and floor slab, wood-framed roof. Date of Construction: Original building constructed in 1936. Structure Size(s): 7,427 square feet main level; partial basement within building footprint; partial second floor within building footprint Summary of Deficiencies: It is our professional opinion that this building is Structurally substandard because: o Estimated cost to correct building code deficiencies is more than 15% of the estimated replacement cost. Estimated Replacement Cost: $1,397,260.00 Estimated Cost to Correct Building Code Deficiencies: $380,478.00 Percentage of Replacement Cost for Building Code Deficiencies: 27.2% Description of Condition Deficiencies • Exterior doors (3) currently swing into the building and all are 32” wide doors. Current code requires exterior exit doors to swing in direction of egress travel and provide a minimum 32” clear width when open to 90 degrees. • Current code requires all outswinging exit doors to have a structural stoop with frost footings to prevent heaving which could restrict the door swing and access/egress capability. • Three door openings have been infilled. One at the south wall providing egress from the main theater space and the other two in the east wall providing egress from the stage. The existing openings are 64” wide. Each opening will need one new 36” wide outswinging door with a structural stoop with frost footings to prevent heaving which could restrict the door swing and access/egress capability. • Stair to partial basement level does not comply with current code for tread depth and riser height. • Stair to partial upper floor level does not comply with current code for tread depth and riser height. • Restrooms are not in compliance with ADA guidelines. Per current code two restrooms are required to accommodate an occupant load of 75. • All exterior windows are single-glazed. • All exterior walls are uninsulated. • Wood roof framing is not fire-retardant treated. • The existing roof is under-insulated. • The existing lighting system does not comply with current codes for daylight harvesting and energy-efficiency. • The existing mechanical system does not comply with current codes for ventilation. • Parking lot pavement needs full replacement CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440069 3905 Sunnyside Road Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Residential home with detached garage Type of Construction: Wood-framed construction, stucco exterior, asphalt shingles. Date of Construction: Original building constructed in 1936. Structure Size(s): 873 square feet main level with 86 square foot porch; full basement and partial upper level 379 square foot garage Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: o Estimated cost to correct building code deficiencies is less than 15% of the estimated replacement cost. Estimated Replacement Cost: $507,625.00 Estimated Cost to Correct Building Code Deficiencies: $18,146.00 Percentage of Replacement Cost for Building Code Deficiencies: 3.6% Description of Condition Deficiencies • Exterior walls are under-insulated. • Attic space/roof is under-insulated. • Asphalt shingles on house and garage are in need of replacement. CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT BUILDING CONDITION AND CODE DEFICIENCIES REPORT October 9, 2018 Property ID No.: 0702824440070 3907 Sunnyside Road Inspection Date(s) and Time(s): 9-26-18, 1:00 p.m. and 10-3-18, 1:00 p.m. Inspection Type: Interior and exterior. General Description of Property: Residential home with detached garage Type of Construction: Wood-framed construction, stucco exterior, asphalt shingles. Date of Construction: Original building constructed in 1928. Structure Size(s): 1,052 square feet main level; full basement and partial upper level; 246 square foot garage Summary of Deficiencies: It is our professional opinion that this building is Not Substandard because: o Estimated cost to correct building code deficiencies is less than 15% of the estimated replacement cost. Estimated Replacement Cost: $562,500.00 Estimated Cost to Correct Building Code Deficiencies: $21,773.00 Percentage of Replacement Cost for Building Code Deficiencies: 3.8% Description of Condition Deficiencies • Windows are single-pane glazing. • Exterior walls are under-insulated. • Attic space/roof is under-insulated. APPENDIX C CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 1 Property ID No. & Property Address: 0702824440066 4500 France Avenue South Paved parking lot. Estimated Cost to Correct Building Code Deficiencies: $0.00 Property ID No. & Property Address: 0702824440067 4500 France Avenue South Replace exterior doors (4) Remove existing doors and frames – 4 @ $150/EA $600.00 Widen existing openings – 4 @ $3,500/EA $14,000.00 New 3’ wide aluminum entrance door and frame $2,025.00 New 3’ wide flush hollow metal insulated door and frame 3 @ $2,905/EA $8,715.00 West front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 East front entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 West entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 East entrance stoop upgrade Demo existing sidewalk – 3 CY @ $370/CY $1,110.00 New concrete footing – 2 CY @ $395/CY $790.00 New 8” CMU walls – 56 SF @ $11.75/SF $658.00 New concrete stoop/ramp – 2.5 CY @ $370/CY $925.00 Upgrade stairs to partial basement level – 16 Risers @ $650/riser $10,400.00 Replace handrails at stairs to basement and upper levels 58 LF @ $35/LF $2,030.00 Restroom upgrade – demolition and new construction Male Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Female Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Replace existing single-glazed windows with new thermally- Improved frames and insulating glass – 346 SF @ $89/SF $30,794.00 Insulate exterior masonry walls – 4,860 SF @ $14/SF $68,040.00 Install fire sprinkler system to protect the wood roof framing 6,532 SF @ $6.03/SF $39,388.00 Replace fully adhered EPDM system with new fully adhered EPDM roofing system with R-31.25 insulation 6,532 SF @ $12.50/SF $81,650.00 Replace lighting system – 6,532 SF @ $8.25/SF $53,889.00 HVAC System upgrade – 6,532 SF @ $7.50/SF $48,990.00 Ventilation System upgrade – 6,532 SF @ $5.25/SF $34,293.00 Estimated Cost to Correct Building Code Deficiencies: $405,298.00 CITY OF EDINA PROPOSED EDINA HRA TIF DISTRICT ESTIMATED REPLACEMENT COSTS 2 Property ID No. & Property Address: 0702824440068 4500 France Avenue South Replace exterior doors (6) Remove existing doors and frames – 6 @ $150/EA $900.00 Widen existing openings – 2 @ $3,500/EA $7,000.00 New 3’ wide flush hollow metal insulated door and frame 6 @ $2,905/EA $17,430.00 Exit door stoop upgrade (6) Demo existing sidewalk – 3 CY @ $370/CY x 6 $6,660.00 New concrete footing – 2 CY @ $395/CY x 6 $4,740.00 New 8” CMU walls – 56 SF @ $11.75/SF x 6 $3,948.00 New concrete stoop/ramp – 2.5 CY @ $370/CY x 6 $5,550.00 Insulate exterior masonry walls - 6,050 SF @ $14/SF $84,700.00 Replace single pane glazing with thermally improved frames and insulated glass – 164 SF @ $89/SF $14,596.00 Insulate roof – 7,427 SF @ $5.50/SF $40,849.00 Restroom upgrade – demolition and new construction Male Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Female Restroom – 1 water closet, 1 lavatory 60 SF @ $425/SF $25,500.00 Upgrade stairs to partial basement levels and partial upper level 44 Risers @ $650/riser $28,600.00 Replace handrails at stairs to basement and upper levels 124 LF @ $35/LF $4,340.00 HVAC System upgrade – 7,427 SF @ $7.50/SF $55,703.00 Ventilation System upgrade – 7,427 SF @ $5.25/SF $38,992.00 Replace pavement in parking lot and re-stripe – 834 SY @ $18.55/SY $15,470.00 Estimated Cost to Correct Building Code Deficiencies: $380,478.20 Property ID No. & Property Address: 0702824440069 3905 Sunnyside Road Insulate exterior walls – 1,305 SF @ $5.50/SF $7,178.00 Insulate attic/roof – 873 SF @ $2.75/SF $2,400.00 Replace asphalt shingles – 1,428 SF @ $6.00/SF $8,568.00 Estimated Cost to Correct Building Code Deficiencies: $18,146.00 Property ID No. & Property Address: 0702824440070 3907 Sunnyside Road Replace existing single-glazed wood windows with new metal clad wood windows with insulating glass 12 double-hung @ $575/EA $6,900.00 6 awning @ $475/EA $2,850.00 Insulate exterior walls – 1,660 SF @ $5.50/SF $9,130.00 Insulate attic/roof – 1,052 SF @ $2.75/SF $2,893.00 Estimated Cost to Correct Building Code Deficiencies: $21,773.00 APPENDIX D EDINA HRA PROPOSED TIF DISTRICT 193804402 1 EXISTING CONDITIONS PHOTOS Photo 1: Pavement condition at parking lot Photo 2: Pavement condition at parking lot Photo 3: Pavement condition at parking lot Photo 4: Not used EDINA HRA PROPOSED TIF DISTRICT 193804402 2 EXISTING CONDITIONS PHOTOS Photo 5: Edina Cleaners north wall Photo 6: Edina Cleaners east and north walls Photo 7: Edina Cleaners west wall Photo 8: Edina Cleaners stair at partial basement EDINA HRA PROPOSED TIF DISTRICT 193804402 3 EXISTING CONDITIONS PHOTOS Photo 9: Edina Cleaners only restroom Photo 10: Edina Cleaners windows at north wall Photo 11: Edina Cleaners windows at east wall Photo 12: Edina Cleaners windows at west wall EDINA HRA PROPOSED TIF DISTRICT 193804402 4 EXISTING CONDITIONS PHOTOS Photo 13: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 14: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 15: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 16: Edina Cleaners exposed wood roof framing EDINA HRA PROPOSED TIF DISTRICT 193804402 5 EXISTING CONDITIONS PHOTOS Photo 17: Edina Cleaners uninsulated exterior walls and exposed wood roof framing Photo 18: Edina Cleaners fully adhered EPDM roofing system Photo 19: Edina Cleaners fully adhered EPDM roofing system damage at roof drain Photo 20: Edina Cleaners fully adhered EPDM roofing system damage at roof drain EDINA HRA PROPOSED TIF DISTRICT 193804402 6 EXISTING CONDITIONS PHOTOS Photo 21: Edina Cleaners exterior door opening infilled Photo 22: Edina Cleaners exterior doors at west wall Photo 23: Edina Cleaners exterior doors at east wall (two infilled) Photo 24: Edina Cleaners exterior doors at south wall EDINA HRA PROPOSED TIF DISTRICT 193804402 7 EXISTING CONDITIONS PHOTOS `+ Photo 25: Edina Cleaners main level space and stairs to partial upper level Photo 26: Edina Cleaners stair to partial upper level Photo 27: Edina Cleaners stair to partial basement Photo 28: Edina Cleaners stair to partial basement EDINA HRA PROPOSED TIF DISTRICT 193804402 8 EXISTING CONDITIONS PHOTOS Photo 29: Edina Cleaners restroom Photo 30: Edina Cleaners restroom missing urinals Photo 31: Edina Cleaners single-glazed windows Photo 32: Edina Cleaners single-glazed windows EDINA HRA PROPOSED TIF DISTRICT 193804402 9 EXISTING CONDITIONS PHOTOS Photo 33: Edina Cleaners uninsulated exterior walls Photo 34: Edina Cleaners uninsulated exterior walls Photo 35: Edina Cleaners uninsulated exterior walls and damaged doors Photo 36: Edina Cleaners exposed wood roof framing EDINA HRA PROPOSED TIF DISTRICT 193804402 10 EXISTING CONDITIONS PHOTOS Photo 37: Edina Cleaners exposed wood roof framing Photo 38: Edina Cleaners exposed wood roof framing Photo 39: Edina Cleaners parking lot with wood screen fence Photo 40: Edina Cleaners south wall and parking lot EDINA HRA PROPOSED TIF DISTRICT 193804402 11 EXISTING CONDITIONS PHOTOS Photo 41: 3905 Sunnyside Road exterior Photo 42: 3905 Sunnyside Road roof shingles at garage Photo 43: 3905 Sunnyside Road roof shingles at garage Photo 44: 3905 Sunnyside Road roof shingles at house EDINA HRA PROPOSED TIF DISTRICT 193804402 12 EXISTING CONDITIONS PHOTOS Photo 45: 3907 Sunnyside Road exterior Photo 46: 3907 Sunnyside Road single-glazed windows Photo 47: 3907 Sunnyside Road single-glazed windows Photo 48: 3907 Sunnyside Road single-glazed windows STAFF REPORT Page 2 At this time, none of the property owners (other than Mr. Carlson at 4500 France) have contacted staff about redeveloping their property. In the months and years ahead, the property owners could be engaged to discuss interest in (1) shared parking, (2) improved storm water management and (3) other public realm improvements identified in the Small Area Plan. If sufficient interest exists, a new 15-year or 26-year TIF District could be established to achieve goals in the future. If possible and necessary, some monies from the proposed 44th and France 2 TIF District could be pooled with a future TIF District to help achieve community goals identified for the 44th & France neighborhood node. At this time, staff continues to recommend the creation of a 15-year 44th and France 2 “Renewal and Renovation” TIF District to enable the redevelopment of 4500 France and neighboring parcels. Date: October 25, 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: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 informational purposes only. INTRODUCTION: There are several active redevelopment projects in which the Housing and Redevelopment Authority gets involved. T he attached summary provides status updates of these projects. Please note that most projects in Edina occur without the involvement of the HRA so this document should not be expected to provide a comprehensive listing of every construction project. ATTACHMENTS: Description HRA Project Update 10-25-18 HRA Redevelopment Project Update October 25, 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 Terms for the potential use of TIF monies were discussed and approved by HRA on Oct. 11 and City Council on Oct. 16. Public Hearing regarding a new TIF District was held Oct. 16. Staff is working with legal counsel to prepare a full TIF Redevelopment Agreement based on the approved terms. This is anticipated to be for final consideration in late November or early December. 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 Construction is substantially complete and the ramp is fully open for use. RLS survey in progress to convey ownership of retail space to developer in Q4 2018 or Q1 2019. 5146 Eden Ave. Former Edina Public Works site Interest has been expressed by other developers since the contract with Frauenshuh was terminated. The future redevelopment of this site anticipated to be discussed late 2018 or Q1 2019. Hwy 100 @ Vernon & Eden Ave. Far term planning concept to explore viability of creating new public park (Grandview Green) on top of Highway 100 using a “freeway lid”; infrastructure to be funded by new property taxes generated from private construction on 8-acres of new land created when the tax-exempt, un-used right-of-way is reconfigured to be usable. This is conceptual only with no specific implementation date. Edina and MnDOT executed MOU in April to identify topics of mutual interest. Recommended language has been approved for potential inclusion in the Comprehensive Plan. Based on the HRA directive on Oct 16, no additional legal or consultant fees will be incurred at this time. Edina HRA Project Update October 25, 2018 Page 2 Address Project Description Status Greater Southdale Area 7001 York Ave. Redevelopment of Hennepin County’s Southdale Regional Library with potential for addition development on unneeded portion of the site In addition to rebuilding a new library on the site, the County is also giving serious consideration to other sites in Edina. No specific date is known for additional decisions. 7200 and 7250 France Ave. Redevelopment of two older office buildings; owner has submitted full proposal for preliminary rezoning after generally positive feedback from Planning Commission and City Council. The project now includes both sites and the redesign strives to address the concerns raised about the previous concepts. The current proposal includes many public amenities as recommended in the current draft of the Greater Southdale guidelines. Due to the high costs to deliver the proposed project, the developer has requested TIF to cover the gap in project financing. Staff will review the financial pro forma in the upcoming weeks and prepare a Term Sheet for consideration in November. 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 has applied for primary funding; site plan review anticipated late summer/early fall 2018. Developer has requested that the HRA provide funding as soon as possible to reduce interest payments on debt; possibly by temporary acquisition of the property until full financing is secured. Public Hearing for new TIF District scheduled for Nov 20th. Pentagon Park 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. A full TIF Redevelopment Agreement (capped at $18.1 M in 3 TIF Notes) was approved by HRA on Oct 11 and City Council on Oct 16. The Agreement was based on terms and conditions established in June and July. Site work anticipated to begin the week of October 22nd . Edina HRA Project Update October 25, 2018 Page 3 Address Project Description Status Other 7075 Amundson Former site of Waldorf Nevins dry cleaning facility – now vacant. Edina Housing Foundation has acquired the site and intends to sell to a developer who will construct affordably- priced housing on the site. Although no formal request has been made, staff anticipates that the use of TIF will be necessary to make redevelopment of the site financially feasible. Rezoning and financing activities anticipated in Q1 or Q2 2019. Prepared October 22, 2018 Date: October 25, 2018 Agenda Item #: V.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Stephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Affordable Housing Sewer and Water Residential Equivalency Charge Fee Reduction 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: None; for discussion only. INTRODUCTION: See attached staff report. ATTACHMENTS: Description Staff Report: Affordable Housing SAC WAC Fee Reduction October 25, 2018 Chair & Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Affordable Housing Sewer and Water Residential Equivalency Charge Fee Reduction Information / Background: The Affordable Housing Policy states: “The City recognizes the need to provide affordable housing in order to create and maintain a diverse population and to provide housing for those who live or work in the City.” One method to provide affordable housing is to make the production of additional units financially feasible. There are several strategies that can be employed to reduce the cost of creating affordable house, one of which is to reduce the City’s sewer and water Residential Equivalent Connection (REC) fee if certain conditions are met that are consistent with those offered by the Metropolitan Council. The affordable housing developer and owner decide whether to meet the criteria and seek the discounts. If the HRA supports this strategy, this addition will be incorporated into the City’s Annual Fee Schedule that will be presented to the City Council in December. Current (2018) Fees Charged by the City: Water REC $2,289.80 Sewer REC $1,144.90 TOTAL $3,434.70 Example: New development with 80 housing units: $3,434.70 x 80 = $274,776 sewer and water REC fees. Proposed Action: For discussion only. The City Council will be requested to adopt an Ordinance to amend City Municipal Code annual fee schedule, specifically Section 28-143, to add the following language: STAFF REPORT Page 2 Residential properties are eligible for certain discounts, as described below. Prior written approval from Metropolitan Council Environmental Services is required to apply the discount. 1. Apartment/Conservation Discount: Apartments are charged 1 REC per unit. Apartments with a minimum of 4 units may qualify for a 20% discount if the following condition is met: • There is no plumbing for laundry facilities in any of the units (generally evidenced by a common laundry facility and no laundry hook-ups in the units) Apartments with fewer than 4 units are not allowed the discount. Assisted living/elderly housing criteria are already discounted so further discounts are not applicable. 2. Publicly Assisted Housing/Conservation Discount: Multi-dwelling publicly-assisted housing units with a minimum of 4 units may qualify for a 25% discount if the following conditions are met: • There is no plumbing for garbage disposals or for dishwashers in any of the units • The housing is publicly subsidized low-income units. Apartments with fewer than 4 units are not allowed the discount. Assisted living/elderly housing criteria are already discounted so further discounts are not applicable. Only the units that are rent restricted are eligible for the discount. Implementing the Reduction: For 2018 the base fee is $3,434.70 per unit. Once the 25% discount of $859 is applied, the publicly-assisted housing/conservation discounted sewer and water REC is $2,576. If the apartment/conservation discount also applies, there is an additional $687 discount applied for a total discounted fee of $1,889 per unit. Example with Discount: New development with 80 affordable housing units: $1,889 x 80 = $151,120 fee, a $123,656 savings. Financial Impact: Our expectation is that this will not be widely used, especially in mixed income developments where communal laundry facilities and the absence of dishwashers is less likely. For developments that are 100% affordable, meeting the conditions is more likely and the cost savings could make the development financially feasible. Date: October 25, 2018 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Sharon Allison, Executive Assistant Item Activity: Subject:Correspondence 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 have been no correspondences since the last meeting.