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HomeMy WebLinkAbout2019-01-17 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota Edina City Hall Council Chambers Thursday, January 17, 2019 8:15 AM I.Call to Order II.Roll Call A.ADMINISTER OATH OF OFFICE 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 sta0 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 of December 13, 2018 B.Receive Payment of Claims As Per: Pre-List Dated 12.13.18 TOTAL $110,326.99 and Pre-List dated 01.11.2019 TOTAL $334,549.50 C.Contract for Services with Metropolitan Consortium of Community Developers D.Resolution 2019-01: Renewing Support of A0ordable Housing at 4100 West 76th Street E.2018 Year in Review VI.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Election of ODcers B.Appointment of Executive Director to the HRA C.Amendment to Bylaws D.HRA 2019 Meeting Dates and Location E.7200-7250 France Avenue: Request for Financial Participation F.Pentagon Village Redevelopment Agreement: Request for Amendment No. 1 VII.Correspondence A.Correspondence VIII.HRA Commissioners' Comments IX.Executive Director's Comments A.Project Update 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 ampliGcation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: January 17, 2019 Agenda Item #: II.A. To:Chair & Commissioners of the Edina HRA Item Type: From:Sharon Allison, City Clerk Item Activity: Subject:ADMINISTER OATH OF OFFICE 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: City Clerk Allison will administer the oath of office to Commissioners Ron Anderson and Kevin Staunton. Date: January 17, 2019 Agenda Item #: IV.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Sharon Allison, City Clerk Item Activity: Subject:Minutes: Regular Meeting of December 13, 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: Motion approving the draft minutes of December 13, 2018. INTRODUCTION: ATTACHMENTS: Description Draft Minutes: December 13, 2018 Page 1 MINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 13, 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, Stewart, and Mayor Hovland. Absent: Commissioner Brindle. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Staunton seconded by Commissioner Fischer amending the agenda by adding Consent Agenda Item V.D. Amended and Restated Easement for 3930 Market Street and approving the amended Meeting Agenda. Ayes: Fischer, Staunton, Stewart and Hovland Motion carried. IV. COMMUNITY COMMENT No Community Comment was received. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Stewart seconded by Commissioner Fischer approving the consent agenda: V.A. Minutes: Regular Meeting, November 27 and December 4, 2018 V.B. Request for Purchase: Special Legal Services for Southdale 2 Tax Increment Financing District Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA V.C. Approval of Inclusionary Housing Policy Program Guide Commissioner Staunton asked for background information on the Guide and Ms. Hawkinson explained that the City contracted with a company to perform compliance checks and the Guide lets owners and property managers know parameters of the program and implementation. Several concerns were shared by Commissioners including asking the Edina Housing Foundation to review the Guide and editing the first sentence. Motion made by Commissioner Staunton seconded by Commissioner Fischer to approve the Inclusionary Housing Policy Program Guide and directed staff to make changes to tailor language to fit the City’s Affordable Housing Policy and to seek input from the Edina Housing Foundation. Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. V.D. Amended and Restated Easement: 3930 Market Street Commissioner Stewart asked why this item was a last-minute addition to the agenda. Economic Development Manager Neuendorf explained that it was recently discovered that a powerline was outside of the original easement and staff needed to modify the easement. Motion by Commissioner Stewart seconded by Commission Fischer approving the Amended and Restated Easement for 3930 Market Street. Ayes: Fischer, Staunton, Stewart, Hovland Minutes/HRA/December 13, 2018 Page 2 Motion carried. VI. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. APPOINTMENT TO EDINA HOUSING FOUNDATION BOARD Manager Neal explained that the Edina Housing Foundation Board was established by the City as a separate board and Commissioners Staunton and Fischer, and two board members conducted a recruitment process to fill a board position. Five candidates were interviewed, and Ms. Bernadette Hornig was selected. Motion made by Commissioner Staunton seconded by Commissioner Fischer to appoint Ms. Bernadette Hornig to the Edina Housing Foundation Board to a 3-year term. Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. VI.B. REDEVELOPMENT AGREEMENT WITH ORION 4500 FRANCE, LLC Mr. Neuendorf explained that Orion Investments requested the use of Tax Increment Financing (TIF) to support mixed-use development of the vacant property at 4500 France Avenue. He recommended approval of a $2.95 million TIF Note to reimburse the developer for extraordinary costs after the project was successfully completed and the public benefits were delivered. Mr. Neuendorf recommended that the HRA entered into a redevelopment agreement with Orion 4500 France, LLC. Developer Ted Carlson addressed the HRA stating he was excited to proceed with the project and that staff had done a good job protecting the City’s interest. Motion made by Commissioner Staunton seconded by Commissioner Fischer approving Redevelopment Agreement with Orion 4500 France, LLC, and authorizing staff to implement the terms of the agreement. Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. VI.C. PROPOSED STRATEGY TO USE TAX INCREMENT FINANCING FOR AFFORDABLY- PRICED HOUSING Mr. Neuendorf recommended pursuing special legislation in 2019 that would allow the HRA to use Southdale 2 Tax Increment Fund to support the creation and retention of affordably-priced housing and establishing a policy to guide the effective use of the funds. Mr. Neuendorf explained that approximately $7-$15 million could be available but the funds must be used by December 2019 and could be used for existing buildings or new construction in different scale and size. Several strategies were presented, along with concerns from the community. Mr. Neuendorf recommended pursuing three to six affordable housing sites in the next three years across all four quadrants of the City, in multiple school districts and in multiple elementary school boundaries. Staff answered questions of the HRA including status of the Housing Policy in the Comprehensive Plan which was expected to be approved by Council Jan. or Feb. 2019; the funds could only be used for housing or paying off a $3 million obligation on Southdale and, if not spent, would be turned back to Hennepin County. Motion made by Commissioner Fischer seconded by Commissioner Staunton approving strategy to guide investment of incremental taxes to support affordably-priced housing. Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. VI.D. APPROVAL OF MULTI-FAMILY AFFORDABLE HOUSING PROPERTY TAX RELIEF AND ENERGY EFFICIENCY GRANT PILOT PROGRAM Affordable Housing Development Manager Hawkinson explained that the goal of this pilot program was to preserve affordability, reduce energy use and create healthier homes to support tenants and strengthen the Minutes/HRA/December 13, 2018 3 bottom line for property owners for existing Naturally Occurring Affordable Housing (NOAH). Ms. Hawkinson said there were 94 NOAH properties with four or more units and 31% of these units were affordable rents. The pilot program would provide City financing in exchange for a land declaration for long term affordability. Motion made by Commissioner Fischer seconded by Commissioner Staunton approving the Multifamily Affordable Housing Property Tax Relief and Energy Efficiency Grant Pilot Program. Ayes: Fischer, Staunton, Stewart, Hovland Motion carried. VI.E. 7075 AMUNDSON STATUS REPORT Ms. Hawkinson updated the HRA that the Edina Housing Foundation (EHF) offered exclusive development rights to MWF Properties to develop 72- 100 percent affordable units for those earning an area median income of $70,000. The EHF is working on a purchase agreement with MWF Properties. VII. CORRESPONDENCE VII.A. CORRESPONDENCE – None received. IX. HRA COMMISSIONERS’ COMMENTS – Received. X. EXECUTIVE DIRECTOR’S COMMENTS – None received. XII. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:09 a.m. Respectfully submitted, Scott Neal, Executive Director Date: January 17, 2019 Agenda Item #: IV.B. To:Chair & Commissioners of the Edina HRA Item Type: Claims From:Don Uram, Finance Director Item Activity: Subject:Receive Payment of Claims As Per: Pre-List Dated 12.13.18 TOTAL $110,326.99 and Pre-List dated 01.11.2019 TOTAL $334,549.50 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 HRA Check Register 11.22.18 to 12.13.18 HRA Check Register 12.14.18 to 1.11.19 R55CKS2 LOGIS600V Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Check # Date Amount Supplier / Explanation PO# Doc No CITY OF Council Check 11/22/2018 Inv No EDINA BU Summary - 12/13/2018 Obj Sub Subledger Account Description 12/13/2018 Page - BU Description 7:21:07 1 Co Dept 7334 11/29/2018 132810 ECM PUBLISHERS INC. 829.57 NORTH RAMP EXP - WAYFINDING 477186 649347 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 829.57 7362 12/6/2018 132810 ECM PUBLISHERS INC. 553.00 NORTH RAMP EXP -WAYFINDING 477619 649348 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 553.00 7398 12/13/2018 105693 CITYSPRINT 23.98 4500 FRANCE GRANT 478179 42304 9210 6406 GENERAL SUPPLIES HRAADMINISTRATION 09210 14 23.98 430591 11/29/2018 111803 MONSON, JAN & MITCHELL 3,504.13 PAY#6-NORAMP-3945 EASEMENT 477182 11-27-2018 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 3,504.13 430624 11/29/2018 127004 SIGN SOURCE INC. 25,660.00 NORTH RAMP EXP EAST SIGNAGE 477185 59006 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 25,660.00 430632 11/29/2018 101756 SUNDE LAND SURVEYING LLC. 3,684.91 NORTH RAMP EXP- SURVEY 476811 53025 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 3,684.91 430716 12/6/2018 100730 DORSEY & WHITNEY LLP 7,553.00 NORAMPEXP-LEGAL 477836 3460349 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 11,172.50 4500 FRANCE TIF LEGAL 477838 3460356 9210 2066 ESCROW DEPOSITS HRAADMINISTRATION 09210 14 18,725.50 430721 12/6/2018 100049 EHLERS & ASSOCIATES INC. 2,587.50 PENTAGON SO ESCROW 477636 78575 9210 2066 ESCROW DEPOSITS HRAADMINISTRATION 09210 14 6,000.00 44TH & FRANCE 2 477834 78542 9210 2066 ESCROW DEPOSITS HRAADMINISTRATION 09210 14 690.00 44TH & FRANCE 2 TIF ESCROW 477835 78651 9210 2066 ESCROW DEPOSITS HRAADMINISTRATION 09210 14 9,277.50 430822 12/6/2018 100995 SEH 2,421.24 INTERLACHEN VERNON INTERSECTIO 477840 359419 9232 6133 PROFESS SERVICES-ENGINEERING CENTENNIAL TIF DISTRICT 09232 14 2,421.24 430833 12/6/2018 101016 SRF CONSULTING GROUP INC 8,753.35 NORTH RAMP EXP - OWNERS REP 477839 10930.00-14 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 8,753.35 430834 12/6/2018 100438 STANTEC CONSULTING SERVICES INC. 7,000.00 4500 FRANCE TIFESCROW 477837 1438161 9210 2066 ESCROW DEPOSITS HRAADMINISTRATION 09210 14 7,000.00 430926 12/13/2018 100730 DORSEY & WHITNEY LLP Div R55CKS2 LOGIS600V CITY OF EDINA 12/13/2018 7:21:07 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 2 11/22/2018 - 12/13/2018 Check # Date Amount Supplier / Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept 4,501.00 SOUTHDALE MALL LEGAL 478261 3460344 9238 6131 PROFESSIONAL SERV-LEGAL SOUTHDALE 2 TIF DISTRICT 09238 14 15,151.50 PENTAGON SOUTH TIF ESCROW 478262 3460352 9210 2066 ESCROW DEPOSITS HRA ADMINISTRATION 09210 14 19,652.50 430931 12/13/2018 100049 EHLERS & ASSOCIATES INC. 7,000.00 4100 W 76TH TIF ESCROW 478263 76556 9210 2066 ESCROW DEPOSITS HRA ADMINISTRATION 09210 14 7,000.00 430994 12/13/2018 100883 MESSERLI & KRAMER 1,000.00 SOUTHDALE 2 LEGAL 478235 359220 9238 6131 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 14 1,000.00 SOUTHDALE 2 LEGAL 478236 358340 9238 6131 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 09238 14 2,000.00 431029 12/13/2018 130260 PROFORMA 1,241.31 NORTH RAMP EXP - WAYFINDING 478030 90M5201844 9232 6710 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 14 1,241.31 Report Totals 110,326.99 Div 1/11/2019CITY OF EDINA 8:16:27R55CKS2LOGIS600V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 1/11/201912/14/2018 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 431281 12/20/2018 100950 PETTY CASH 09232 14640612.83 9232PETTY CASH REIMBURSEMENT 478984 12-2018 GENERAL SUPPLIES CENTENNIAL TIF DISTRICT 12.83 431377 12/27/2018 120826 COMCAST SPOTLIGHT 09232 1467101,342.35 9232NORTH RAMP EXP-PROMO 479278 CW77787 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 1,342.35 431398 12/27/2018 144038 HRABE, JOSEPH 09238 1461362,500.00 9238AFFORD HOUSING PROGRAM 479540 OPEN DOORS LOGO DEV PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 2,500.00 431422 12/27/2018 140948 MOHAGEN / HANSEN ARCHITECTURAL GROUP 09232 1467109,918.08 9232NORTH RAMP EXP - ARCHITECT 479280 44041 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 9,918.08 431448 12/27/2018 142340 RSP ARCHITECTS, LTD 09232 146710600.00 9232NORTH RAMP EXP-ART SIGNS 479277 198855 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 600.00 431450 12/27/2018 100995 SEH 09232 1461338,772.16 9232VERNON-INTERLACHEN INTERSECTIO 479571 360881 PROFESS SERVICES-ENGINEERING CENTENNIAL TIF DISTRICT 8,772.16 431451 12/27/2018 120784 SIGN PRO 09232 146710449.38 9232NORTH RAMP EXP -WAYFINDING 479493 13673 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 449.38 431454 12/27/2018 134660 SPOTLIGHT CINEMA NETWORKS 09232 146710880.00 9232NORTH RAMP WAYFIND 479279 9924-1 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 09232 146710880.00 9232NORTH RAMP EXP - WAYFINDING 479465 9924-2 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 1,760.00 431463 12/27/2018 144036 TREWARTHA, KELLY 09238 1461362,500.00 9238SOUTHDALE HOUSING PROGRAM 479576 12182018 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 2,500.00 431487 1/3/2019 141972 AP MIDWEST LLC 09232 146710271,027.40 9232NORTH RAMP EXP - PAY APP #11 479963 APPL 11 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 271,027.40 431526 1/3/2019 100049 EHLERS & ASSOCIATES INC. 09210 1420662,070.00 92104500 FRANCE TIF ESCROW 479682 78846 ESCROW DEPOSITS HRA ADMINISTRATION 09210 142066402.50 9210W 76 TIF ESCROW 479683 78847 ESCROW DEPOSITS HRA ADMINISTRATION 09210 1420667,000.00 9210W 76TH TIF ESCROW 479684 78853 ESCROW DEPOSITS HRA ADMINISTRATION 9,472.50 1/11/2019CITY OF EDINA 8:16:27R55CKS2LOGIS600V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 1/11/201912/14/2018 - Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 431546 1/3/2019 142731 INTERSTATE PARKING COMPANY LLC 09232 14610222,212.50 9232NORTH RAMP EXP – VALET OCT.479962 201810 CONTRACTUAL SERVICES CENTENNIAL TIF DISTRICT 22,212.50 431573 1/3/2019 111803 MONSON, JAN & MITCHELL 09232 146710287.00 9232NORTH RAMP EXP – 3945 EASEMENT 479964 34147 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 287.00 431608 1/3/2019 101016 SRF CONSULTING GROUP INC 09232 1467103,695.30 9232NORTH RAMP EXP - OWNERS REP 479808 10930.00-15 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT 3,695.30 Report Totals 334,549.50 Date: January 17, 2019 Agenda Item #: IV.C. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Contract for Services with Metropolitan Consortium of Community Developers 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 for services with Metropolitan Consortium of Community Developers (MCCD) for the Open to Business Program. INTRODUCTION: As a service to residents, the HRA participates in the MCCD's "Open to Business" program. This program provides technical assistance and access to capital for new and expanding businesses located in Edina. The service is also available to Edina residents interested in opening a business elsewhere. This contract for service locks in the annual rate at $12,500.00. Hennepin County has agreed to pay 50 percent of this fee with the HRA paying the balance. Edina and MCCD has provided this service for five years. Edina is served by Program Manager Rob Smolund. While Mr. Smolund holds business hours at City Hall each month, residents and businesses more frequently schedule one-on-one meetings at a mutually convenient time and location. Each year, 30-50 Edina businesses and/or Edina residents utilize this program. Staff recommends that the Open to Business program continues in Edina and that the HRA approve the contract for services with MCCD. ATTACHMENTS: Description Contract with MCCD - Open to Business 1 Contract for Services Between the Edina Housing and Redevelopment Authority & Metropolitan Consortium of Community Developers for the Open to Business Program THIS AGREEMENT, is made and entered into as of the _______ day of January 2019, between the Edina Housing and Redevelopment Authority, a body public under the laws of the State of Minnesota (herein called HRA) and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation (herein called “MCCD”). WHEREAS, the Edina HRA wishes to retain an entity with the capacity to provide small business technical assistance to existing businesses and those parties interested in opening a business in Edina (the “Initiative”) and WHEREAS, MCCD has represented itself as competent to provide the services required to administer and carry out the Initiative; and WHEREAS, the Edina HRA wishes to engage MCCD to provide said services necessary to carry out the Initiative; NOW THEREFORE, it is agreed between the parties hereto that; 1. TIME OF PERFORMANCE The service to be provided by MCCD shall commence on January 1, 2019 and unless canceled by either party, automatically renew January 1, 2020 and January 1, 2021. Either party may, at their sole discretion and without cause, cancel any remaining years covered under this agreement by providing written notice to the other party at least 30 days prior to renewal. Each Party agrees that a Party that opts out of the contract under these terms shall be subject to no penalty, and held harmless for future liability or obligation related to the terms of this agreement. All services, documents, and information to be furnished or performed by MCCD in order to carry out the Initiative shall be furnished or performed as promptly as possible, and with the fullest due diligence. 2. COMPENSATION Total compensation to MCCD shall be $12,500 for a one year period (the Contract Amount) to manage the Edina Open to Business program. The Contract Amount will be paid in two equal installments: $6,250 due and payable by the Edina HRA upon execution of this Agreement, and $6,250 invoiced and dated on or about 6 months from the agreement date, payable by Hennepin County Housing Redevelopment Authority. 2 3. SCOPE OF SERVICES MCCD will use the Contract Amount to provide technical assistance to existing Edina businesses, residents and parties interested in starting a business in Edina; (See Exhibit A Scope of Services-Edina Open to Business Program). 4. REPORTING MCCD agrees to submit reports related to its operation of the Edina Open to Business program. Items to be reported on include, but are not limited to, the following: Number of inquiries Hours of technical assistance provided Type of assistance provided Type of business Annual sales revenue Number of businesses opened Number of business expanded/stabilized Number and amounts of financing packages Demographic information on entrepreneurs The required reporting schedule is as follows: January – June activity, report due July 31st January – December activity, report due January 31st MCCD will provide additional reports as requested by the Edina HRA. 5. PERSONNEL MCCD represents that it has, or will secure, at its own expense, all personnel required in performing the services to carry out the Initiative. Such personnel shall not be employees of or have any contractual relationship with the Edina HRA. No tenure or any other rights or benefits, including worker’s compensation, unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to Edina HRA employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. 3 All of the services required to carry out the Initiative will be performed by MCCD, and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. 6. INTEREST OF MEMBERS OF THE CITY, HRA AND OTHERS No officer, member, or employee of the Edina HRA, and no member of its governing body, and no other public official or governing body of the locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative, shall participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation, partnership, or association in which he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement or proceeds thereof. 7. ASSIGNABILTY MCCD shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written approval of the Edina HRA thereto. 8. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal and state laws, statutes and applicable regulations and the ordinances of the City of Edina. 9. INSURANCE MCCD agrees to provide proof of workers’ compensation and comprehensive general liability insurance. Comprehensive general liability insurance shall be in the minimum amount of $1,500,000 10. HOLD HARMLESS MCCD agrees to defend, protect, indemnify and hold harmless the City of Edina, the Edina HRA, their agents, officers and employees harmless from and against all liabilities, losses, damages, costs, and expenses, whether personal, property, or contractual, including reasonable attorney’s fees, arising out of, or related to the administration and operation of the Initiative, and from any act of negligence of MCCD, its officers, employees, servants, agents, or contractors. 11. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail, postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: Lee Hall, Chief Operating Officer Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 4 (b) In the case of the Edina HRA: Scott Neal Executive Director Edina Housing and Redevelopment Authority 4801 W. 50th Street Edina, MN 55424 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. 12. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first written above. EDINA METROPOLITAN CONSORTIUM HOUSING AND REDEVELOPMENT AUTHORITY OF COMMUNITY DEVELOPERS By: By: James Hovland, Its Chair Jim Roth, Its Executive Director And by: _________________________________ ____________________, Its Secretary Attested by: ____________________________ Scott Neal, Its Executive Director 5 Exhibit A Scope of Services Open for Business Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Edina businesses, Edina residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Edina. Technical assistance includes, but is not limited to, the following: Business plan development Feasibility analysis Marketing, Cashflow and other financial projection development Operational analysis City and State licensing and regulatory assistance Loan packaging, and other assistance in obtaining financing Help in obtaining competent legal advice MCCD will also provide technical assistance on a walk-in basis monthly in Edina City Hall or as requested at a place of business within Edina. Open for Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD’s Emerging Small Business Loan Program (see Exhibit B Small Business Loan Program Guidelines below). MCCD also provides its financing in partnership other community lenders, banks or both. 6 EXHIBIT B Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a “for-profit” business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: • Loan interest rate is dependent on use, term and other factors, not to exceed 10%. Loan Term Length: • Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. Date: January 17, 2019 Agenda Item #: IV.D. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Stephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Resolution 2019-01: Renewing Support of Affordable Housing at 4100 West 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: Motion to approve Resolution 2019-01 renewing support of affordable housing at 4100 West 76th Street. INTRODUCTION: Aeon, a nonprofit affordable housing developer, is seeking renewed support of up to $2,400,000 for their proposed 70-unit affordable housing development at 4100 West 76th Street. This support will help advance the development though the 2019 funding application cycle. ATTACHMENTS: Description Staff Report: Renewing Support Resolution No. 2019-01: Renewing Support January 17, 2019 Board of the Edina Housing and Redevelopment Authority Stephanie Hawkinson, Affordable Housing Development Manager Resolution 2019-01: Renewing Support of Affordable Housing at 4100 West 76th Street Information / Background: Aeon, a non-profit real estate developer specializing in affordable housing intends to construct a new building in Edina. In partnership with Land Bank Twin Cities they gained site control of 4100 West 76th Street with the intent to raze the existing commercial building and build a new 4-story apartment building. In June 2018 Aeon applied for the 2019 round of Low Income Housing Tax Credits from Minnesota Housing. Although they received more points than the lowest awarded development, they were not awarded tax credits. Therefore, they are reapplying in June 2019 for 2020 credits. Due to the delay in financing, and the increase in construction costs, Aeon has reduced the number of units from 80 to 70. The unit mix will remain the same, including 1-bedroom, 2-bedroom and 3-bedroom units to serve households with incomes ranging from less than 30 percent of Area Median Income (AMI) to at or below 60 percent of AMI. Seventy-five percent of the units will have two or more bedrooms. Parking for residents and guests would be provided on site. The financing of affordable housing is very complex. Pooled resources from several different public sources is typical. As stated, in June Aeon will reapply to Minnesota Housing for 9 percent tax credits and a deferred loan. Aeon will also be applying for Hennepin County financing in February 2019 with an award expected in May. As with last year’s application round, the developer requests that the City of Edina, through the Housing and Redevelopment Authority, serve as an early funder of the project. Financial support by local municipalities is taken into strong consideration when the Minnesota Housing and Hennepin County evaluate the readiness of a project to finance. Although the number of units has decreased, the financial request to the City remains the same as the estimated development cost has increased in the past year. This is in large part due to increased construction costs, added holding costs and increased fees. Other costs are fixed regardless of the number of units. A comparison of the estimated development cost is below. STAFF REPORT Page 2 2018 2019 Per unit increase Acquisition $ 2,900,000 $ 3,472,038* $ 13,351 New Construction Costs $ 13,050,000 $ 12,482,500 $ 15,196 Contractor Fees $ 1,082,000 $ 1,113,000 $ 2,375 Construction Contingency $ 706,600 $ 667,275 $ 700 Professional Fees $ 1,247,800 $ 1,472,253 $ 5,435 Developer Fee $ 1,350,000 $ 1,300,000 $ 1,696 Financing Fees $ 785,375 $ 868,348 $ 2,588 Reserves $ 551,500 $ 451,500 $ (444) Total $ 21,673,275 $ 21,826,914 $ 40,897 Cost per unit $ 270,916 $ 311,813 *The increased acquisition cost reflects holding costs and interest payments. The Housing and Redevelopment Authority supported the development through Resolution 2018-04 on May 24, 2018, which awarded $2.4M towards the development. However, the Resolution did not provide the terms of the HRA’s financing and included a clause stating the funds could be rescinded if Minnesota Housing financing were not awarded by December 1, 2018. Because of this, Minnesota Housing did not accept last’s year Resolution when awarding application points. To correct this, the developer requests financial support from the Edina HRA be renewed. Staff is proposing the following terms: • $2,400,000 loan deferred for 30 years, or the same term as the first mortgage. • 1 percent simple interest due at the time of term or refinancing, whichever comes first. • The HRA may rescind on financing approval if the development is not fully funded by June 2021. This allows time for two more application cycles to Minnesota Housing and to secure a tax credit investor. Time is of the essence because applications for Hennepin County funding applications are due in early February 2019. This Resolution pledges financial support using $2.4 million of monies available to the HRA. The potential sources of these funds include: pooled increment from Southdale 2 or developer ‘buy-in’ contributions in the Affordable Housing Trust Fund. These local funding sources have an estimated balance of approximately $6 million to invest in affordable housing. Staff recommends that the HRA approve this Resolution to demonstrate its commitment to creating new affordable housing in Edina. RESOLUTION NO. 2019-01 RENEWING SUPPORT OF AFFORDABLE HOUSING AT 4100 WEST 76th STREET BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Edina, Minnesota as follows: WHEREAS; the City of Edina recognizes the need to create affordable housing to supplement the stock of market rate units available in the marketplace; and WHEREAS, Aeon, a not-for-profit developer of affordable housing (the “Developer”) proposes to construct a new multi-family housing project at 4100 West 76th Street that consists of approximately 70 rental apartment units targeted as 100 percent affordable housing, serving individuals and families with incomes at or below 60 percent area median income (the “Project”); and WHEREAS, the Project will be owned by a limited partnership with the sole member of the General Partner being Aeon; and WHEREAS, the Developer signed a Purchase Agreement for the property in May 2018, which was acquired in October 2018 by the Land Bank Twin Cities to hold for the proposed development; WHEREAS, the Developer is currently seeking funding from several sources to construct the Project in 2020; and WHEREAS, a variety of grants or other public financial assistance will be required to build the Project including low-income housing tax credits (“LIHTC”) from the Minnesota Housing Finance Agency (the “MHFA”) and deferred financing from Hennepin County; and WHEREAS, the Edina Housing and Redevelopment Authority has access to funds that have been collected or could be used to support affordable housing located within the boundaries of the Southeast Edina Redevelopment Project Area; and WHEREAS, the Project is estimated to cost approximately $22,000,000 and the Developer is requesting a renewed commitment of up to $2,400,000 in financing from the City through the Housing and Redevelopment Authority (in addition to a renewed commitment up to $925,000 in tax increment financing through the establishment of a new housing TIF district pursuant to the requirements and conditions of Resolution 2018-03); and WHEREAS, this financing is a local contribution and will assist the Developer in securing the approvals from the MHFA for housing tax credits; and WHEREAS, the local financing will be structured as a 30 to 40-year deferred loan (based on the term of the first mortgage) with 1 percent simple interest. NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority of the City of Edina endorses the Developer’s application for LIHTC and deferred funding as allocated by MHFA; in addition to applications to Hennepin County and Metropolitan Council; and BE IT FURTHER RESOLVED, the Housing and Redevelopment Authority shall provide, in accordance with the requirements of this Resolution, a total of up to $2,400,000 to facilitate the financing of the Project. BE IT FURTHER RESOLVED, the Housing and Redevelopment Authority has the ability to rescind the financing commitment if the development has not secured full financing by June 2021. Passed and adopted this 17th day of January 2019 Attest: , 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 & Redevelopment Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing & Redevelopment Authority at its Regular Meeting of January 17, 2019, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. Scott H. Neal, Executive Director Date: January 17, 2019 Agenda Item #: IV.E. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:2018 Year in Review 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: Staff has prepared a summary of the activity completed by the HRA in calendar year 2018. ATTACHMENTS: Description HRA year in review report HOUSING AND REDEVELOPMENT AUTHORITY 2018 - YEAR IN REVIEW OVERVIEW The Edina Housing and Redevelopment Authority (HRA) was established in 1974 for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing. The members of the Edina City Council serve as Commissions of the Board of the HRA. The Edina City Manager serves as Executive Director of the HRA. From time-to-time, additional services are provided to the HRA by City staff as part of their regular job duties. The HRA also uses third-party professionals to provide expertise in the preparation of redevelopment agreements and to provide monitoring and reporting oversight. This report has been prepared by City of Edina staff to highlight activities and accomplishments in the past year. This report also contains updated project information that may shape upcoming activities and programs of the HRA. 2018 ACCOMPLISHMENTS • Established 44th & France 2 TIF District to support new public parking, new public plaza and new infrastructure at 4500 France Avenue • Established West 76th Street TIF District to support new affordably-priced housing at 4100 West 76th Street • Modified the Southdale 2 TIF District to support retention and creation of affordably priced housing • Completed investigative study of Grandview Green Highway Lid concept • Completed Expansion of North Parking Ramp at 50th & France • Executed Redevelopment Agreement with Pentagon Village, LLC to support redevelopment of 12-acres of vacant land along West 77th Street between Normandale Road and Computer Avenue • Executed Redevelopment Agreement with 4500 France Orion, LLC to support redevelopment of 4500 France Avenue • Hired Affordable Housing Development Manager • Adopted of Affordable Housing Compliance Guidelines and Fair Housing Policy • Closed on ten (10) “Come Home 2 Edina” second mortgages • Branded Edina’s affordable housing program: “Open Doors Edina” 2018 Edina HRA Year in Review Page 2 REDEVELOPMENT ACTIVITY The flurry of redevelopment continues in commercial and industrial sites in Edina. Most redevelopment occurs on properties that were originally developed 50 or more years ago. The aging structures on these properties, typically has not kept pace with the needs or expectations of the current marketplace. Most redevelopment in Edina is privately funded. The HRA does get involved in project financing when the project is determined to be unfeasible without intervention and when the proposed project delivers long-term community benefits. Of the 52 major redevelopment projects constructed since the Great Recession began to end in 2010, ninety percent of new projects have been privately funded. Only five projects have included pledges of tax increment financing (TIF) from Edina. In 2018, two new TIF districts were established and the budget of the Southdale 2 TIF District was modified. As of year- end 2018, Edina has seven active TIF Districts. Key details are summarized below: Name Type Size (acres) Year Established First Collection Expiration Year 44th and France 2 Renewal, 15-years 1.0 2018 2021 2036 50th and France 2 Redevelopment, 25-years 2.8 2017 2021 2046 Grandview 2 Redevelopment, 25-years 10.8 2016 2020 2045 Southdale 2 Economic Development, 8-years 208 2012 2013 2021 66 West Housing 0.9 2016 2019 2044 West 76th Street Housing, 20-years 2.0 2018 2022 2042 Pentagon Park Redevelopment, 25-years 47 2014 2018 2043 In general, Edina uses tax increment financing less frequently and to a lesser extent than neighboring communities and peers. Maps to illustrate the use of TIF are attached as Exhibits A and B. PROJECT STATUS 1) 4500 France Avenue The HRA entered into a Redevelopment Agreement and pledged to issue a TIF Note up to $2.295 million after successful completion of the $29 million redevelopment project. The project consists of approximately 46 apartments with approximately 7,000 square feet of commercial space on the first floor. The new building is designed to be four stories near the commercial street and two stories along Sunnyside Road to make a smooth transition to the adjacent single-family houses. The project will also include several infrastructure improvements in the commercial node and will provide a public plaza, public parking, public art and new public sidewalks with streetscape improvements. 2018 Edina HRA Year in Review Page 3 2) North Ramp on Market Street The HRA hired Adolfson and Peterson Construction to expand the North Parking Ramp. This project was completed in Fall 2018 at a total estimated cost of $12 million. The expanded ramp includes 546 public parking stalls as well as 10,000 square feet of commercial space that will be sold to a private developer in Q2 2019. The construction project included several mitigation efforts to support local businesses during the construction phase. These efforts included: off-site parking, employee shuttle, valet parking for customers (extended on four occasions), on-site parking manager, business-neighborhood liaison, district marketing and promotion. The cost of these mitigation strategies is included in the total project cost. 3) Nolan Mains / Center Ramp on Market Street The HRA sold property at 3925 Market Street to a private developer in January 2018 to promote mixed-use redevelopment of the site. This redevelopment effort was set in motion in 2013 based on concerns of businesses and residents that the 50th & France district was experiencing reduced foot traffic and needed parking improvements and other enhancements to meet the needs of the next generation. In 2013, the HRA acquired two commercial parcels adjacent to the original North Ramp to accommodate additional parking and sought creative solutions from the private sector in 2016 to reinvigorate the underused parcels on Market Street. The approved project consists of 100 units of rental housing and approximately 20,000 square feet of commercial space. The building is configured around a series of public walkways and plazas to create a vibrant pedestrian experience that engages the adjacent commercial properties. The new structure is arranged as three connected buildings with a height of six stories in the middle and five stories on the ends. The HRA pledged to issue a TIF Note up to $10.1 million upon completion of the $74 million project. The project will include approximately 128 public parking stalls located on the first underground level (Center Ramp), shared trash rooms, public plazas, sidewalks and enhanced streetscape to create a uniform customer experience. The developer will also provide infrastructure and utility improvements to benefit surrounding commercial properties. With the support of the Edina Housing Foundation, the HRA also pledged to provide a low-interest loan to support 10 affordably priced rental units in the facility for a period of at least 15-years. As of year-end 2018, the Nolan Mains apartment project has the lower level foundations completed and the structural frame is about 50 percent complete. The project is on schedule for completion in Fall 2019. 4) Edina Flats – Valley View Road and Kellogg Avenue The developer continues to make progress on the construction and sale of 18 new condominium units. The project is partially constructed on land previously owned by the HRA. As of year-end 2018, the shell construction of the first 6-unit building is nearly complete and the site preparation for the other buildings is beginning to take shape. 2018 Edina HRA Year in Review Page 4 5) 5146 Eden Avenue The HRA worked in partnership with developers at Frauenshuh Inc. to explore the possible sale and redevelopment of the former public works property in the Grandview District. Several layouts and scenarios were explored including elements of market-rate housing (in both high-rise and mid-rise configurations), affordably priced housing, district shared parking, outdoor public space, and a new community facility ranging in size from 15,000 to 50,000 square feet to replace the existing Art Center and Senior Center facilities. Ultimately, the negotiations with Frauenshuh were terminated due to disagreement on the sales price, terms and site layout. Concerns were also raised by the HRA about the high construction and operating costs of a new community facility at this site. 6) Southdale Center Mall The 77-acre Southdale Center Mall property continues to undergo significant transformation in 2018. The RH Gallery store is under construction at the southwest corner of the site and anticipated to open in late 2019. The Shake Shack restaurant opened in Fall 2018 at the northwest corner. The 146-room Homewood Suites hotel opened in Fall 2018 at the northeast corner. The structural frame for the new Lifetime Fitness and Lifetime Sport/Lifetime Work facility is nearly complete at the former site of the JC Penney’s department store. The former Herberger site remains vacant since the retailer was liquidated and the department store was closed in late summer 2018. Simon Properties, the property owner is reviewing several possibilities for re-use or redevelopment of the Herberger site. 7) 6600-6800 France Avenue The property owner/developer secured land use approvals to add new retail, housing, hotel and office space on the site in 2016. The new buildings are intended to be arranged around a new inner circulation route that can be used by both pedestrians and vehicles. The approved site plan includes several public realm amenities that incorporate unique and contemporary strategies to achieve a welcoming and vibrant sense of place. The City and the developer secured a grant from the Metropolitan Council to support creative placemaking on the site in 2017. While the flagship suburban site for Bank of America has been completed, none of the other anticipated elements has been initiated. The site continues to face challenges resolving stormwater runoff, due in part to its low elevation compared to the adjacent Rosland Park and Lake Cornelia. The developer appears to be reassessing the combination of elements based on market conditions. It may be necessary for the HRA to intervene in the future to facilitate redevelopment of this site so that the desired stormwater and public realm improvements can be achieved. 2018 Edina HRA Year in Review Page 5 8) 7200/7250 France Avenue The developer/property owner has secured preliminary rezoning approval to replace two aging office buildings with two multi-family apartment buildings with commercial space on the street level. The approved site plan includes several public realm amenities and preserves a portion of the property that has a grove of mature trees. The developer has requested $12 million in TIF to support the $117 million project. While the rezoning of the site has been approved by the City Council, staff is still evaluating the TIF request. Action on this request is anticipated early in 2019. 9) 7001 York Avenue Hennepin County owns and operates the Regional Library on this 8-acre property. For several years, they have been considering how to redevelop the site to provide county services to residents of Edina and surrounding communities. The Service Center relocated to Southdale Center in 2015. The Court Facility is on schedule to move to Ridgedale Center in Minnetonka in 2019. The Regional Library is scheduled to be reconstructed in the next few years. The HRA may get involved in the future redevelopment of this site, possibly for the creation of new affordably priced housing. Details are pending until the County determines the preferred use of the property and timing for a future transaction. 10) 4100 West 76th Street Aeon, a private developer who specializes in affordably priced housing has purchased this property after it had been listed on the open market for more than one year. The existing commercial building was originally constructed in 1967 and has been occupied by a number of different businesses – including a successful recording studio. In Fall 2018, Aeon secured an amendment to the Comprehensive Plan to allow affordably priced housing to be built on this parcel. The HRA pledged to provide $2.4 million in monies and $925,000 in future incremental property taxes from the site to support long-term affordability on the site. Aeon is in the process of securing full funding commitments so that construction can commence in 2020. The HRA is negotiating for the temporary purchase of the property from the Community Land Bank to demonstrate the City’s commitment to provide new affordably priced housing in the community. 2018 Edina HRA Year in Review Page 6 11) Pentagon Park South – Pentagon Village The HRA executed a redevelopment agreement with the developer to support complete redevelopment of the vacant 12-acre property. Upon completion, the developer will deliver several new building elements. They are anticipated to include: new dual brand hotel, two new retail buildings, extended-stay hotel, mixed-use retail/office building, two new office buildings, parking garages, public plaza and new infrastructure. TIF support will be provided via multiple TIF Notes with a combined maximum principal amount of $18.1 million. The actual amount of TIF reimbursement will be determined based on actual project costs and the amount of investment that can be delivered prior to June 30, 2019. As of year-end 2018, the developer is making significant progress with site improvements. A minor amendment to the site plan and TIF Redevelopment Agreement is anticipated in early 2019. 12) Pentagon Park North A proposal from Chase Real Estate to construct 585 units of market-rate housing on a portion of the north parcel was denied. The HRA negotiated preliminary terms but final agreement was unable to be reached. While there is still interest from the private sector to redevelop part of this site, the property owner intends to rehabilitate the existing office buildings and offer leases for new office space. 13) 7075 Amundson Avenue The Edina Housing Foundation purchased this vacant site in 2018 after the business closed due to bankruptcy. The Foundation has expressed their intention to sell the site to a developer for the construction of affordably priced housing. The use of TIF is anticipated in order to secure other funding sources and make the eventual project viable. OTHER HRA ACTIVITIES 14) Development Strategy for Affordably Priced Housing The HRA approved a strategy to use incremental property taxes generated from the market-rate developments within the Southdale 2 District to support the creation or retention of affordably priced housing in Edina. Based on the amount of tax revenue estimated to be collected prior to expiration in 2021, between three and six developments could potentially be supported. Financial support from other entities would also be required to make these projects viable. Staff will investigate potential sites in a variety of commercial/multi-family districts for possible implementation. Staff will also seek additional approval from the State Legislature to use as much of the local funding as possible before 2021. 2018 Edina HRA Year in Review Page 7 15) Open to Business Program The HRA continues to partner with the Metropolitan Consortium of Community Developers (MCCD) to provide free business consulting services for start-up businesses or expanding businesses located within Edina. These services are also provided to Edina residents regardless of where the business may eventually be located. The $5,000 annual contribution from the HRA supplements funding provided from Hennepin County. In 2018, the Open to Business program provided service to 24 entrepreneurs with business interests or homes in Edina. Staff at MCCD provided 165 hours of direct technical assistance with these clients. The categories of businesses included start-ups, existing with growth opportunities and existing businesses with operational challenges. The types of businesses ranged from fitness to consulting and from real estate to packaging design. The Open to Business program resulted in direct business loans of $188,000 to some of these clients. These loans leveraged another $1.69 million in business investment. FORECAST OF 2019 ACTIVITIES The staff work plans for 2019 tentatively include these activities: • Ongoing management of Market Street redevelopment, including re-opening the Center Ramp in Fall 2019 • Execute real estate transaction and secure site approval for 5146 Eden Ave. • Issue TIF Note for Pentagon Village (aka Pentagon Park South) • Consider new TIF District for 7200-7250 France Avenue • Update policy on the use of tax increment financing • Investigate the redevelopment potential of the 44th & France commercial node • Enter into a Purchase Agreement with MWF Properties for 7075 Amundson. • Acquire 4100 West 76th Street and hold for Aeon for the redevelopment into affordable housing. • Implement the Class 4d Property Tax Reduction and energy efficient grant program for naturally occurring affordable multifamily housing. • Develop a single family ownership rehabilitation and land-trust program. Prepared by: Bill Neuendorf Economic Development Manager January 14, 2019 2018 Edina HRA Year in Review Page 8 Exhibit A Map of TIF Districts 2018 Edina HRA Year in Review Page 9 Exhibit B Use of TIF in Edina In Edina, TIF is used on a limited basis and to a lesser extent than neighboring cities Date: January 17, 2019 Agenda Item #: V.A. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:Election of Officers 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 appointing Chair, Vice Chair and Secretary of the HRA. INTRODUCTION: The by-laws of the HRA provide for the designation of officers. The Chair presides at the meetings and executes all contracts. T he Vice Chair steps in during times when the Chair is unavailable. The Secretary co-signs all contracts. Date: January 17, 2019 Agenda Item #: V.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:Appointment of Executive Director to the HRA 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 City Manager Scott Neal as Executive Director of the HRA. INTRODUCTION: The City Council has previously designated me as the Executive Director of the HRA. I request the Council affirm this designation with the requested motion. T he proposed term of this appointment will be concurrent with my employment as City Manager. Date: January 17, 2019 Agenda Item #: V.C. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Amendment to Bylaws 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 amendments to the By-Laws. INTRODUCTION: The By-Laws of the Authority are reviewed on an annual basis and amended from time to time. Staff recommends that two sections of the By-Laws be amended to clarify the intention and application. Article IV, Section 2e: change the terminology to reflect the intention that the annual report be a summary of the preceding years activities Article IV, Section 5: update the wording regarding the date, time and location of regular meetings to reflect current and future practice The proposed amendments are attached shown in strike-out/underline format. ATTACHMENTS: Description HRA by laws - proposed changes redline Edina Housing and Redevelopment Authority Bylaws Page 1 BY-LAWS FOR THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA ARTICLE I – THE AUTHORITY Section 1. Name of the Authority. The name of the Authority shall be the “Housing and Redevelopment Authority of Edina, Minnesota.” Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 3. Office of Authority. The offices of the Authority shall be at 4801 West 50th Street in the City of Edina, State of Minnesota. Section 4. Purpose, Powers and Responsibilities. The Authority shall have the purpose and all the powers and responsibilities of a municipal Housing and Redevelopment Authority as provided in Minnesota Statute 469. Section 5. Fiscal Year and Financial Matters. The fiscal year of the Authority shall be the calendar year. All purchasing, spending and investments shall be conducted in accordance with Minnesota Statutes. The Board may establish financial accounting and reporting policies and procedures to supplement State Law as it deems appropriate. Section 6. General Operating Policies and Practices. Unless prohibited by Minnesota Statute 469, the general operating policies and practices of the Authority shall conform to the general operating policies and practices of the City of Edina. ARTICLE II – MEMBERSHIP Section 1. Board Membership and Terms. The Commissioners of the Authority shall be the same as the current members of the Edina City Council, with terms running concurrent with the City Council terms. Section 2. Compensation of Commissioners. Pursuant to Minnesota Statutes, Section 469.011, subdivision 4, as amended, Commissioners may receive compensation and reimbursement for necessary expenses. Section 3. Meeting Attendance. It shall be the duty of each Commissioner to attend regular and special meetings of the Authority and to attend each subcommittee meeting to which a member is appointed. Attendance of Commissioners shall be entered in the minutes of each meeting. Edina Housing and Redevelopment Authority Bylaws Page 2 ARTICLE III – OFFICERS AND EXECUTIVE DIRECTOR Section 1. Officers. The officers of the Authority shall be a Chair, Vice-Chair, and Secretary. Section 2. Chair. The Chair shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the Chair shall sign all contracts, deeds and other instruments to be entered into or given to the Authority. At each meeting the Chair shall submit such recommendations and information as he/she may consider proper concerning the business, affairs and policies of the Authority. Section 3. Vice-Chair. The Vice-Chair shall perform the duties of the Chair in the absence or incapacity of the Chair; and in case of the resignation or death of the Chair, the Vice-Chair shall perform such duties as are imposed on the Chair until such time as the Authority shall select a new Chair. Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority, and, when authorized and directed by resolution of the Authority, shall sign, with the Chair all contracts, deeds, and other instruments to be entered into or given by the Authority. Section 5. Executive Director. The Authority shall appoint an Executive Director. No Commissioner of the Authority shall be eligible to serve as the Executive Director. The Executive Director shall be the chief appointed executive of the Authority, and shall have such responsibilities and authority as the Commissioners may from time to time by resolution prescribe. In addition, the Executive Director is responsible for recording and maintaining accurate records of the meetings of the Board and of all official actions taken by or on behalf of the Authority. Section 6. Executive Compensation. The Executive Director shall provide service to the Authority as part of the defined duties as an employee of the City of Edina. As such, no additional compensation shall be due to the Executive Director. Time and expenses incurred by the Executive Director when carrying out duties of the Authority, shall be billed to the Authority and not to the City of Edina. Section 7. Additional Duties. The officers of the Authority shall perform such other duties and functions as may, from time to time be required by the Authority, or these bylaws, or the rules and regulations of the Authority. Section 8. Appointment and Vacancies. The Chair, Vice-Chair and Secretary shall be appointed by the Commissioners at the annual meeting. Should the office of Chair, Vice-Chair or Secretary become vacant, the Authority shall appoint a successor from its membership, and such appointment shall be for the unexpired term of the calendar year. Edina Housing and Redevelopment Authority Bylaws Page 3 Section 9. Additional Personnel. The Authority may from time to time employ such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the Municipal Housing and Redevelopment Act of Minnesota, subject to and pursuant to the applicable laws of the State of Minnesota. Such personnel shall have such authority and perform such duties as the Authority from time to time shall determine. The Executive Director shall have the authority to appoint staff to complete the work of the Authority. Staff time dedicated to purposes of the Authority shall be considered part of the regular work load and shall not cause compensation above and beyond that of the exempt staff’s regular employment with the City. Staff classified as nonexempt are eligible for overtime, with prior approval from their supervisor. When carrying out the duties of the Authority, staff time shall be billed to the Authority and not to the City of Edina. ARTICLE IV – MEETINGS Section 1. Annual Meeting. There shall be an annual meeting of the Authority which shall be the first regular meeting of the Authority in January of each year. Section 2. Conduct of Business at the Annual Meeting. The following, among any other appropriate matters, may be considered at the annual meeting: a. Appointment of Officers, Commissioners, Executive Director and establishment of their terms. b. Determination of new committees and assignment of Commissioners if needed. c. Designation of official newspaper. d. Designation of official depository. e. Receipt of Annual ReportSummary of previous year’s activity. f. Designation of a fixed place for regular meetings to be held until the next annual meeting. g. Determination of dates for regular meetings until the next annual meeting. h. Discussion of bylaws and any suggested amendments. Section 3. Public Notice of Meeting. Public notice of all meetings of the Authority shall comply with the Open Meetings Law, Minnesota Statute 13D. Section 4. Public Participation. All regular meetings of the Authority shall include an opportunity for members of the public to address the Commissioners on matters related to the official business of the Authority. Section 5. Regular Meetings. Regular meetings of the Authority shall be held at the City Hall, City of Edina, in the City Council Chambers on the same days as regular meetings of the City Council of the City of Edina, Minnesota. The Authority shall meet on a regular basis to transact and discuss business. Dates and times of regular meetings shall be announced in advance. All regular meetings to transact business of the Authority shall be held in the Council Chamber of Edina City Hall. Regular meetings (work sessions and closed meetings) to discuss potential business without taking action shall also be announced in advance and shall be held in Edina Housing and Redevelopment Authority Bylaws Page 4 an appropriate room at Edina City Hall. Section 6. Special Meetings. Special meetings of the Authority may be called by the Chair, any two members of the Authority, or the Executive Director, for the purpose of transacting any business designated in the call. Section 7. Meeting Location. The Authority may hold its regular or special meetings at such place as it may designate in advance. Section8. Rules of Order. To efficiently transact public business in compliance with Minnesota Statute and fairness, Robert’s Rules of Order shall be used as a parliamentary guide. Section 9. Quorum. A quorum of the Authority shall consist of three of the five Commissioners. In the absence of a quorum, no official action may be taken by, on behalf of, or in the name of the Authority. Section 10. Adoption of Resolutions. Resolutions of the Authority shall be in writing and shall be deemed adopted if approved by not less than a simple majority of all Commissioners present, except as otherwise required by law. Section 11. Conflict of Interest. Any Commissioner or employee who has a financial interest in any matter that is before the Authority shall publicly state the nature of the interest, excuse himself or herself from participation in the discussion or any decision-making process regarding the matter, and comply with the requirements of Minnesota Statutes, Section 469.009, as amended. ARTICLE V – COMMITTEES The Authority may, from time to time, appoint such committees as it deems appropriate to assist it in carrying out its powers, duties and functions. All such committees shall be advisory only to the Authority. Members of such committees need not be members of the Authority but shall be residents or property owners of the City of Edina. All members of such committees shall serve at the pleasure of the Authority. Each such committee shall exist for such period and perform such activities as the Authority, from time to time, shall determine. ARTICLE VI – AMENDMENTS The bylaws of the Authority may be amended at any meeting of the Authority and shall be amended only with the approval of a majority of all of the Commissioners. Established March 4, 1974 Amended March 17, 1986 Amended April 5, 2016 Amended March 29, 2018 Proposed Amendment January 17, 2019 Date: January 17, 2019 Agenda Item #: V.D. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Sharon Allison, City Clerk Item Activity: Subject:HRA 2019 Meeting Dates and Location 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. INTRODUCTION: HRA Bylaws requires designation of a fixed place and determination of dates for regular meetings. Meeting location and dates are: Regular meeting location is in the Council Chambers, City Hall, 7:30-9:00 a.m. Meetings dates for 2019 are: January 17 and 31; February 14 and 28; March 14 and 28; April 11 and 25; May 16 and 30; June 13 and 27; July 25 only; August 15 and 29; September 12 and 26; October 10 and 24; November 14 only; December 12 only. Work Session meetings are scheduled as needed and meeting location is the Community Room, City Hall, 7:30-8:15 a.m., generally. T he work session adjourns in the Community Room and the regular meeting begins in the Council Chambers. Date: January 17, 2019 Agenda Item #: V.E. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:7200-7250 France Avenue: Request for Financial Participation 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: This item pertains to the redevelopment of a commercial property located at 7200-7250 France Avenue. In December 2018, the property owner/developer secured preliminary zoning approval to raze the aging medical and office buildings and replace it with a new mixed-use project. The new project includes approximately 309 new apartments, of which 20 percent will be affordably priced for at least 15-years and approximately 30,000 square feet of new commercial space at the street level. The project design includes below-grade structured parking and extensive public realm improvements, including a new shared street/woonerf, new public plaza, preservation of mature grove of tree and improvements to West 72nd Street. The developer has requested $12 million in tax increment financing (TIF) to address some of the extra-ordinary costs. Staff will provide an update of the evaluation and negotiations. ATTACHMENTS: Description 7200-7250 France - TIF staff report 1-17-2019 January 17, 2019 Board of the Edina Housing and Redevelopment Authority Bill Neuendorf, Economic Development Manager 7200-7250 France Avenue – Project Update Information / Background: The property owner and developer of the commercial properties located at 7200 and 7250 France Avenue have requested $12 million in tax increment financing (TIF) to fill a budget gap in the proposed mixed-use project. Project Status Staff is in the midst of evaluating the TIF request. In general, staff supports the use of tax increment financing on this site due to the declining condition of two existing buildings. The 7250 building has a potentially unsafe structural problem in the parking garage which hinders its occupancy. The 7200 building has been declining for years. It is considered a “Class C” building that has not kept pace with the marketplace. Staff also supports the use of TIF on this site due to the topography that results in these properties retaining storm water for adjacent properties. Staff also supports the use of TIF to help achieve community goals. The proposed project is designed to include several public realm improvements that are consistent with the goals of the Greater Southdale District Plan. The most significant public feature is the inclusion of a new north-south shared street that provides a convenient alternative for drivers, pedestrians and bicyclists. Improvements to 72nd Street would also be provided by the developer. Staff is working with legal and financial advisors (Dorsey & Whitney and Ehlers Associates) to prepare a Term Sheet that outlines the key business points of a potential TIF Redevelopment Agreement. Some of the anticipated terms include: • Consideration of a new TIF District to include both 7200 and 7250 France Ave. o either a 20-year Housing District or a 26-year Redevelopment District • All equity and construction debt secured by the developer o no debt incurred by HRA or City STAFF REPORT Page 2 • HRA/City to issue a single TIF Note after successful completion of the project o TIF Note pledges to reimburse developer for eligible expenses based on actual costs incurred o Elements to be delivered to be in accordance with the approved zoning and site plans include all public realm improvements, local improvements to 72nd Street, two mixed-use apartment buildings and one building containing for-sale townhouses • TIF Note sized to fill the financial gap in the pro forma as confirmed by actual project costs o Actual amount of financial gap is still under review, but is anticipated to be less than the $12 million requested • 20 percent of the residential units to be affordably priced to households earning 60 percent Area Median Income (AMI) o Consistent with City policy and zoning approvals o Affordable units distributed among studio, one-bedroom and two-bedroom units • Affordably priced units to remain affordable for longer than the 15 years required by zoning approvals o Final term of affordability is still being evaluated • Permanent public easements provided along all public elements including: o Streetscape along France Avenue, 72nd Street and Gallagher Drive o New north-south shared street, including the east-west extension to France Avenue o Outdoor plaza on the second level of the 7200 building o The extent of a parking easement is still under review • Permanent conservation easement provided on the existing wooded area to be preserved as a buffer between the new project and adjacent neighbors • Permanent easement to allow storm water from adjacent properties and neighborhood to collect on the site • Typical look back provisions to ensure that the actual amount of incremental taxes provided does not result in a higher than typical return to the developer • Typical default and correction provisions A full Term Sheet is anticipated to be presented for consideration by the HRA on February 14th and by the City Council on February 20th. # # # Date: January 17, 2019 Agenda Item #: V.F. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Pentagon Village Redevelopment Agreement: Request for Amendment No. 1 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: This item pertains to the October 2018 T IF Redevelopment Agreement with Pentagon Village, LLC. The Developer proposes changes to the site plan and project schedule to reflect the interest of the market place. Updating renderings are attached. The most significant change is in the layout and timing of the three project elements on the southern edge of the site - the Extended Stay Hotel, Office #2 and the parking structure. A staff report that summarizes the impact to the TIF Redevelopment Agreement is attached. Please note that the site plan modifications are scheduled to be considered by the Planning Commission on January 30 and the City Council on February 5. Related modifications to the TIF Redevelopment Agreement are anticipated to be submitted for consideration by the HRA on January 31 with final consideration by the City Council on February 5. ATTACHMENTS: Description Staff Report: Pentagon Village Pentagon Village Revised Renderings 1-2-2019 January 17, 2019 Chair & Commissioners of the Edina HRA Bill Neuendorf, Economic Development Manager Pentagon Village Redevelopment Agreement: Request for Amendment No. 1 Information / Background: The Housing and Redevelopment Authority (HRA) executed a TIF Redevelopment Agreement with Pentagon Village, LLC on October 16, 2018. This Agreement pertains to the complete redevelopment of the 12-acre site commonly referred to as Pentagon South. This memo is provided for informational purposes. It is provided as background to an amendment to the Redevelopment Agreement that will be prepared soon. The amendment is anticipated to address two items: updated timing/phasing of each element on the property and the scope of the public parking easement. Over the three months since the developer secured site plan approvals and the TIF Agreement, they have begun site work and full project design promptly. This project includes several different developers, owners and tenants. It will be constructed in multiple phases. It is important to clarify that TIF Notes can be issued no later than July 15, 2019 – due to limitations of MN TIF Statutes. As the developer continues to make swift progress on the site, they are requesting some changes to the site plan that reflect the needs of the users. While the site plan changes will be reviewed by the Planning Commission and City Council, they have potential impacts to the economic development goals that were embodied in the TIF Redevelopment Agreement. The economic impacts of the proposed changes are summarized in the following table: Description of Change Economic Impact to 12-Acre Project 1. Construction of a larger Dual Brand Hotel Increases the anticipated tax base and increases the potential hotel tax revenue generated on site. Also increases the vibrancy of the site by having more evening occupants. STAFF REPORT Page 2 Description of Change Economic Impact to 12-Acre Project 2. Construction of Extended Stay Hotel at grade – rather than on top of Parking Structure #1 No change to the economics. 3. Combination of Parking Structure #1 and #2 into a single structure Will likely increase the overall number of parking stalls that will be included in the Public Parking Easement. This potential increase in public parking comes at no greater expense to the HRA. The impact to the overall economics is unable to be determined since the timing and size of the future office buildings are unknown. 4. Construction of mixed-use building as part of Phase 1 instead of Phase 2 Hastens the growth in tax base and delivers more daytime occupants to the site more quickly. SUMMARY AND RECOMMENDATION Staff has worked with legal and financial advisors at Dorsey & Whitney and Ehlers Associates to fully understand the impact to the economic development goals embodied in the TIF Redevelopment Agreement. After meeting with the developer to understand the needs of the project to remain on schedule, staff anticipates bringing forward an Amendment to the Redevelopment Agreement on January 31, 2019. The Amendment is anticipated to be presented to City Council on February 5, 2019. The amendment will address two aspects of the Redevelopment Agreement. 1) The anticipated timing of each new element will be updated. 2) The scope of the public parking easement will reflect the larger parking structure. No further changes are anticipated. The amount of incremental property taxes pledged and the overall timing of the project will remain the same. # # # 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 1SITE PLAN N REST /RET 1 REST / RET 2 RET /OFFICE OFFICE1 OFFICE2 PARKING DECK BELOW DUAL BRANDHOTEL (1) EXTENDED STAY HOTEL (2) EXTENDED STAY HOTEL (2) PARKING DECK BELOW 01/02/195/9/18 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 2AERIAL VIEWS 01/02/195/9/18 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 3 N WEST 77TH STREET NORMANDALE ROADCOMPUTER AVEVIKING DRIVE PHASE 1 SITE PLAN 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 4PHASE 1 AERIAL 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 5 N WEST 77TH STREET NORMANDALE ROADCOMPUTER AVEVIKING DRIVE PHASE 2 SITE PLAN 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 6PHASE 2 AERIAL 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 7CONCEPTUAL FUTURE PHASE SITE PLAN N 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 8CONCEPTUAL FUTURE PHASE AERIAL 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 9 A 1 2 3 4 5 6 7 8 9 10 B C D RAMP UP UNEXCAVATED14'-0"33'-0"36'-0"36'-0"36'-0"36'-0"36'-0"33'-0"14'-0"60'-10"60'-10"60'-10"STORAGE4.7 5.3 A.3 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x xx x x x x xxxxxxxxxxxxxxxxxxxx xx xx xx xxxxxx x x x x x x x x x x x x x x x 24'-0"12'-0"12'-0"24'-0" PARKING GARAGE GROUND PLAN 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 10PARKING GARAGE - NORTH PHASE 1 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 11PARKING GARAGE - SOUTH PHASE 1 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 12PARKING GARAGE ELEVATIONS NORTH ELEVATION SOUTH ELEVATION EL: 11’-6” AFF EL: 11’-6” AFF EL: 21’-10” AFF EL: 21’-10” AFF EL: 32’-2” AFF GLASS CURTAIN WALL GLASS CURTAIN WALL BLACK PAINTED STEELPERFORATED METAL GRAPHIC PANELS PERFORATED METAL VEGETATIVE SCREEN NATURAL FINISH PRECAST PANELS COLORED PRECAST PANELS BLACK ANODIZED ALUMINUM 02 JAN 2019 PENTAGON VILLAGEMASTER PLAN CONCEPT EDINA, MN 13PARKING GARAGE ELEVATIONS EAST ELEVATION MATERIALS WEST ELEVATION EL: 11’-6” AFF EL: 11’-6” AFF EL: 21’-10” AFF EL: 21’-10” AFF EL: 32’-2” AFF EL: 31’-6” AFF COLORED PRECAST PANELS BLACK ANODIZED ALUMINUM BLACK PAINTED STEEL GLASS CURTAIN WALLPERFORATED METAL NATURAL FINISH PRECAST PANELS GLASS CURTAIN WALL BLACK ANODIZED ALUMINUM BLACK ANODIZED ALUMINUM PERFORATED METAL PERFORATED METALRAMP BEYONDELEVATOR CORE BEYOND RAMP BEYOND NATURAL FINISH PRECAST PANELS NATURAL FINISH PRECAST PANELS Date: January 17, 2019 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Jennifer Garske, 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. Date: January 17, 2019 Agenda Item #: VII.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Scott H. Neal, Executive Director 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: Staff prepared a report that summarizes the status of projects involving the Housing and Redevelopment Authority. ATTACHMENTS: Description HRA update 1-17-2019 Housing and Redevelopment Authority Redevelopment Project Update January 17, 2019 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 The TIF District has been created and the TIF Redevelopment Agreement executed. The developer has begun to environmental remediation and is on track for demolition and site work in Spring 2019. 3925 Market St. Redevelopment of the former Center Parking Ramp with Nolan Mains apartments and new public parking The TIF District was created in 2017 and the TIF Redevelopment Agreement was executed and amended in 2017. Construction is underway. The concrete structure is taking shape and exterior wall panels have begun to be installed. Market Street will remain one-way east-bound until the major concrete work is finished in April/May 2019. Completion is on schedule for Fall 2019 3930-3944 Market St. Expansion of North Parking Ramp to include more public parking and first floor retail space Construction has been completed and the facility has been fully operational since October 2018. User comments indicate the need for additional wayfinding signage. This additional signage will be installed in Spring 2019. 5146 Eden Ave. Potential redevelopment of vacant 3.3 acre site The site has been vacant since 2013. The TIF District was created in 2016. The site is owned by the HRA and available for redevelopment or re-use. A discussion is scheduled to discuss the “next steps” for this site. 4416 Valley View Road Construction of 18- condominium units; 6 units on land formerly owned by HRA This project is actively under construction. The HRA is not expected to have further involvement with this project. Edina HRA Project Update January 17, 2019 Page 2 Address Project Description Status Greater Southdale Area 7200 and 7250 France Ave. Redevelopment of two older office buildings with about 300 residential units (20 percent affordably priced) and 30,000 Sq. Ft. commercial space with significant public realm amenities. The owner/developer secured Preliminary Rezoning on 12/4/2018. Staff continues to evaluate a request for $12 million TIF Note to fill a financial gap and fulfill the construction of affordably-priced housing units and public realm amenities. Staff recommends the use of TIF on this site and anticipates presenting a Term Sheet for consideration on February 14, 2019. 4100 W. 76th St. Redevelopment of office building; request for City support to develop 80-units of affordable housing by Aeon In 2018, the HRA pledged approx. $3.2 million in local funds. The TIF District was created in 2018. Staff is preparing a purchase contract for the site with the intention that the HRA’s contribution come as land rather than cash. Staff anticipates presenting a Purchase Agreement and Preferred Developer Agreement in Spring 2019. 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 for a new Regional Library and determining how much land will be sold for redevelopment. No specifics are available from Hennepin County at this time. Pentagon Park 4600-4660 W. 77th St. The Pentagon Park North Parcels consist of 28-acres of land occupied by 9 office buildings. The City Council and HRA were unable to reach agreement on the Rezoning and TIF with the developer. The requests to build 585 units of market-rate housing and $14 million in TIF were denied in October 2018. The property owner intends to renovate the existing office buildings and lease to new office tenants. 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. The TIF District was created in 2014 and an $18.1 million TIF Agreement with Solomon Real Estate was executed in 2018. Staff anticipates a minor amendment to the TIF Agreement on the January 31st Agenda. A site plan modification will also be presented to the City Council on February 5. The changes are due to minor adjustments required to satisfy the needs of the tenants and end-users. Edina HRA Project Update January 17, 2019 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. Centennial Lakes Condominiums Several hundred condominium units were built adjacent to the public park on land formerly owned by the HRA. TIF was used to facility the development of several components of the 100-acre development. The condominium owners will present a request to the HRA pertaining to the Agreement that requires them to make annual contributions to the maintenance and operational needs of the adjacent park. They are requesting to be released from this Agreement ten years early. The consideration of this request was anticipated when the TIF Redevelopment Agreements were written in the 1980s and 1990s. Prepared January 4, 2019