HomeMy WebLinkAbout2018-11-29 HRA Regular Meeting Agenda PacketAgenda
Edina Housing and Redevelopment Authority
City of Edina, Minnesota
Edina City Hall Council Chambers
Thursday, November 29, 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: Regular Meeting, November 15, 2018
B.Policy Update: Tax Increment Financing
C.Receive Payment of Claims As Per: Claims Pre-List Dated 11/21/2018 TOTAL
$703,047.90
D.Approve 2019 HRA Meeting Schedule
VI.Reports/Recommendations: (Favorable vote of majority of Commissioners
present to approve except where noted)
A.Acquisition of Property at 4100 W. 76th Street
B.Appointment to Edina Housing Foundation Board
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 ampliEcation, an interpreter, large-print documents or something else,
please call 952-927-8861 72 hours in advance of the meeting.
Date: November 29, 2018 Agenda Item #: IV.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Minutes
From:Sharon Allison, Executive Assistant
Item Activity:
Subject:Minutes: Regular Meeting, November 15, 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 November 15, 2018, regular meeting minutes of the HRA.
INTRODUCTION:
ATTACHMENTS:
Description
HRA Regular Meeting Minutes
Page 1
MINUTES
OF REGULAR MEETING
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
NOVEMBER 15, 2018
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 7:32 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 Brindle seconded by Commissioner Fischer approving the consent
agenda.
V.A. Minutes of October 25, 2018, Regular and Work Session.
V.B. Receive Payment of Claims as per Claims Pre-List Dated Nov. 9, 2018 Totaling $1,054,114.41.
V.B. Release Agreement between Edina HRA and Shaner Edina, LLC.
VI. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members present
to approve except where noted).
VI.A. RESOLUTION 2018-11 ESTABLISHING WEST 76TH STREET TAX INCREMENT FINANCING
(TIF) DISTRICT AND MODIFY SOUTHDALE 2 TAX INCREMENT FINANCING PLAN
Mr. Neuendorf explained that establishing the West 76th Street TIF district would support redevelopment of
4100 West 76th Street with approximately 80 affordably-priced rental units by Aeon and, modification of the
Southdale 2 TIF was necessary to include the new West 76th Street TIF district and allow for pooling of funds
to support affordable housing in the city. He said this was a step towards fulfilling the pledge that was made to
Aeon in early 2018 for TIF support. A public hearing is scheduled for Nov. 20 for final approval by the City
Council. Mr. Neuendorf answered questions of the HRA.
Motion by Commissioner Staunton seconded by Commissioner Brindle approving Resolution
No. 2018-11 adopting a modification to the redevelopment plan for the Southeast Edina
Redevelopment project area, adopting a modification to the tax increment financing plan for the
Southdale 2 Tax Increment Financing District, establishing the West 76th Street Tax Increment
Financing District and adopting a tax increment financing plan.
Ayes: Fischer, Staunton, Hovland, Brindle, Stewart
Motion carried.
VI.B. FAIR HOUSING POLICY
Ms. Hawkinson introduced the Fair Housing Policy. Ms. Hawkinson said as the City advanced its commitment
to inclusion and equity, the Fair Housing Policy would help to further the goal of creating a vibrant, safe and
healthy community where all residents thrived. The Policy would be presented to the City Council later for
approval. Ms. Hawkinson answered questions of the HRA.
VII. CORRESPONDENCE – None.
VIII. HRA COMMISSIONERS’ COMMENTS - Received
Minutes/HRA/November 15, 2018
2
IX. EXECUTIVE DIRECTOR’S COMMENTS - Received
X. ADJOURNMENT
There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 8:30
a.m.
Respectfully submitted,
___________________________________________
Scott Neal, Executive Director
Date: November 29, 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:Policy Update: Tax Increment Financing 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:
This discussion item pertains to the use of Tax Increment Financing (TIF) in Edina. The City last adopted a TIF
Policy in 2011. While the City uses public finance tools like TIF sparingly, staff recommends that the policy be
updated to better reflect conditions by which the City is willing to use public financing.
Staff has compiled similar policies from several neighboring communities and is also reviewing best practice
standards. In the weeks ahead, staff will prepare a brief presentation and seek direction as an updated policy is
prepared in 2019.
Date: November 29, 2018 Agenda Item #: IV.C.
To:Chair & Commissioners of the Edina HRA Item Type:
Claims
From:Don Uram, Finance Director
Item Activity:
Subject:Receive Payment of Claims As Per: Claims Pre-List
Dated 11/21/2018 TOTAL $703,047.90
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 claims for payment.
INTRODUCTION:
Claim information for approval is attached.
ATTACHMENTS:
Description
Claims Pre List Dated 11/21/2018 TOTAL: $703,047.90
11/20/2018CITY OF EDINA 12:41:54R55CKS2LOGIS600V
1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection.
11/21/201811/10/2018 -
Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div
7268 11/15/2018 102372 CDW GOVERNMENT INC.
09232 1467106,960.80 9232SWITCH FOR PARKING RAMP 475814 46016 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
6,960.80
7276 11/15/2018 102146 JESSEN PRESS INC.
09232 146710613.00 9232NORTH RAMP EXP - WAYFINDING 476014 680556 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
613.00
7304 11/21/2018 132810 ECM PUBLISHERS INC.
09210 146120345.10 9210TIF DISTRICT PH 476148 646936 ADVERTISING LEGAL HRA ADMINISTRATION
345.10
430123 11/15/2018 105417 EDINA HISTORICAL SOCIETY
09232 14671025.00 9232NORAMPEXP-WAYFINDING 475703 0001 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
25.00
430281 11/15/2018 124503 WINSUPPLY OF EDEN PRAIRIE
09232 14671034.17 9232EV CHARGER MATERIALS 475991 168150 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
34.17
430297 11/21/2018 141972 AP MIDWEST LLC
09232 146710695,069.83 9232NORTH RAMP EXP PAY APP #10 476387 APPL 10 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
695,069.83
Report Totals 703,047.90
Date: November 29, 2018 Agenda Item #: IV.D.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Sharon Allison, Executive Assistant
Item Activity:
Subject:Approve 2019 HRA Meeting Schedule 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:
Motion to approve the 2019 HRA Meeting Schedule.
INTRODUCTION:
The 2019 HRA Meeting Schedule was revised since you saw it on Nov. 15 as follows:
1. The January City Council meeting dates were changed from the 2nd and 15th to the 8th and 23rd to
accommodate Councilmember Staunton's and Manager Neal's schedule. T his changed the HRA meeting
dates from the 10th and 24th to the 17th and 31st so that the Council and HRA meets every other week.
2. August and September: the 2nd meetings are no longer cancelled.
ATTACHMENTS:
Description
2019 HRA Meeting Schedule
2019 CITY OF EDINA COUNCIL AND ADVISORY COMMISSIONS
MEETINGS, HOLIDAYS, DAYS OF RELIGOUS OBSERVANCE AND ELECTION DATES
Holidays City Council Nite to Unite Pln Comm Trns Comm Pk & Rec Comm
Indicates a religious holiday's observance Election Day HRA HRA Cancel
HP Comm Health Comm Human R/R Comm E& E Comm Arts & Culture Comm
JANUARY FEBRUARY MARCH
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 1 2 1 2
6 7 8 9 10 11 12 3 4 5 6 7 8 9 3 4 5 6 7 8 9
13 14 15 16 17 18 19 10 11 12 13 14 15 16 10 11 12 13 14 15 16
20 21 22 23 24 25 26 17 18 19 20 21 22 23 17 18 19 20 21 22 23
27 28 29 30 31 24 25 26 27 28 24 25 26 27 28 29 30
31
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 4 1
7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4
5 6 7 8
14 15 16 17 18
19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15
21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22
28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29
30
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 7
7 8 9 10 11 12 13 4 5 6 7 8 9 10 8 9 10 11 12 13 14
14 15 16 17 18 19 20 11
12 13 14 15 16 17 15 16 17 18 19 20 21
21 22 23 24 25 26 27 18 19 20 21 22 23 24 22 23 24 25 26 27 28
28 29 30 31 25 26 27 28 29
30 31 29 30
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 1 2 1 2 3 4 5 6 7
6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14
13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21
20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23
24 25 26 27 28
27 28 29 30 31 24 25 26 27 28 29 30 29 30 31
OCTOBER NOVEMBER
APRIL MAY JUNE
JULY AUGUST SEPTEMBER
DECEMBER
Adopted City Council Nov. 7, 2018
Revised City Council Nov. 20, 2018
Revised HRA Nov. 29, 2018
Revised 11/26/2018
Date: November 29, 2018 Agenda Item #: V.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Stephanie Hawkinson, Affordable Housing
Development Manager Item Activity:
Subject:Acquisition of Property at 4100 W. 76th Street 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 use of Southdale 2 TIF Funds to acquire 4100 W. 76th Street and direct staff to prepare a purchasing
agreement for review and approval at a future HRA meeting.
INTRODUCTION:
The Twin Cities Land Bank acquired 4100 West 76th Street on behalf of Aeon on October 30, 2018 as was
required by the Purchase Agreement. Interest on the $2,900,000 purchase price is 6.5%. Aeon's proposed
affordable housing development would have a lower total development cost if the HRA acquired the site.
Furthermore, site acquisition at this location is an eligible use of Southdale 2 TIF funds.
ATTACHMENTS:
Description
Affordable Housing Staff Report
Affordable Housing Site Location
November 29, 2018
Chair and Commissioners of the Edina HRA
Stephanie Hawkinson, Affordable Housing Development Manager
Acquisition of Property at 4100 76th Street West
Information / Background:
On May 1, Aeon, a non-profit real estate developer executed a purchase agreement with MRI Holdings,
LLC, to acquire an aging commercial building at 4001 76th Street West. They intend to raze the existing
building and construct a new affordable 4-story apartment building with underground parking.
The new building will have approximately 80 units with a combination of 1-, 2- and 3-bedroom units to
serve households with incomes ranging from less than 30% of Area Median Income (AMI) to at or below
60% of AMI. Parking for residents and guests would be provided on site.
Twin Cities Land Bank acquired the property on behalf of Aeon on October 30, as required by the purchase
agreement. Typically, with affordable housing developments the land is not acquired until all the financing
and Low Income Housing Tax Credits are in place. In Edina, sellers typically will not agree to a purchase
agreement that could extend for two years, or however long is needed to secure all the construction
financing. Therefore, for the subject property, Aeon has agreed to acquire the site using funding from Twin
Cities Community Land Bank for a three year term at an annual interest rate of 6.50%.
At a rate of 6.5% on a purchase price of $2,900,000, Aeon’s interest cost will be $15,708 per month. As the
development was not awarded Low Income Housing Tax Credits in 2019, Aeon will apply again in June
2019. The earliest they could acquire the property is spring 2020. With the holding period expanded to 22
months, this interest cost will be $345,583 ($4,319 per unit).
Aeon is requesting that the Edina Housing and Redevelopment Authority acquire the property and
enter into a purchase agreement with Aeon for two-years.
Aeon is making this request for the following reasons:
• Securing funding for a 100% affordable housing development can take multiple years, especially when
the main source of financing is the highly competitive 9% Low Income Housing Tax Credits.
• Due to the competitiveness of 9% credits, it is not uncommon for a developer to apply three
consecutive years. They will reapply in June 2019 with awards announced in November 2019.
• Aeon’s holding costs, including interest on the acquisition loan, increases the cost on the
development which could create a financing gap in the development budget.
STAFF REPORT Page 2
• HRA ownership lowers the project cost because a loan is avoided to purchase the land, saving
approximately $479,476 in interest and fees.
• Aeon is not structured to maintain long term ownership of a vacant commercial building.
Source of Acquisition Funds: Southdale 2 TIF Fund
Benefits to the City/HRA:
• Facilitates the creation of new affordable housing.
• Seeks to locate affordably-priced housing in location with good access to jobs and transit options.
• Demonstrates the commitment to create new housing that is affordably-priced.
• HRA would maintain site control if Aeon is not successful in securing the necessary financing to
move forward with their proposal with the ability to seek another residential developer.
• As the HRA previously awarded the proposed development $2,400,000, they will receive the
difference of $500,000 plus costs from Aeon.
• Demonstrates the ability of Special 2016 TIF Legislation to be effectively applied.
Risks to the City/HRA
• Use of Southdale 2 TIF funds restricts use of the land for affordable-housing.
• Investing in land involves the opportunity cost – HRA will forgo a minor amount of interest that is
currently being generated by the monies.
• HRA will hold property regardless of success of Aeon’s funding applications. If unfunded, the HRA
will own a vacant building for a period of time, including the potential expenses and liabilities.
Previous Approvals:
HRA Resolution No. 2018-03, $925,000 in tax increment financing to facilitate the financing of towards
Aeon’s proposed affordable housing development.
HRA Resolution No. 2018-04, the HRA approved $2,400,000 in financing the development.
City Council Resolution No. 2018-57 approved the City’s submission of a funding application on behalf of
Aeon’s proposed development to the State of Minnesota Department of Employment and Economic
Development.
Planning Commission Resolution No. 2018-02 finding that the proposed development Plans for the
affordable housing project proposed by Aeon is consistent with the Comprehensive Plan.
HRA Resolution No. 2018-11 establishing West 76th Street Tax Increment Financing District and Modify
Southdale 2 Tax Increment Financing Plan.
Next Steps:
• December: HRA will review Purchase Agreement.
• February: Aeon will apply for Hennepin County funding.
• May: Hennepin County announces funding awards.
• June: Aeon will apply for Metropolitan Council and Minnesota Housing Financing
• November: Financing secured.
• June 2020: Anticipated closing with Aeon and construction start.
• Late summer 2021: Construction completed.
STAFF REPORT Page 3
Staff recommends approval to use Southdale 2 TIF Funds to acquire 4100 W. 76th Street and
direct staff to prepare a purchasing agreement for review and approval at a future HRA
meeting.
Attachments:
• Site Plan
• Site Location
Date: November 29, 2018 Agenda Item #: V.B.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Scott Neal, Executive Director
Item Activity:
Subject:Appointment to Edina Housing Foundation Board 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:
Motion to appoint ____________ to the Edina Housing Foundation Board to a 3-year term.
INTRODUCTION:
Commissioners Fischer and Stauntion will make a recommendation to appoint a new board member to the Edina
Housing Foundation.
Date: November 29, 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.