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HomeMy WebLinkAbout2019-02-14 HRA Regular MinutesMINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY FEBRYARY 14, 2019 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:30 a.m. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton and Chair Hovland. 111. APPROVAL OF MEETING AGENDA Motion made by Commissioner Staunton seconded by Commissioner Brindle approving the meeting agenda. Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. IV. COMMUNITY COMMENT - None Hope Melton, 4825 Valley View Road, commended the HRA on its support and responsiveness to the issue of affordable housing. Carolyn Jackson, 5716 Continental Drive, said she attended the Metropolitan Council screenings last evening and noted all candidates spoke to the issue of housing. V. CONSENT AGENDA Motion made by Commissioner Staunton seconded by Commissioner Fischer approving the consent agenda. V.A. Approve Minutes of Regular Meeting of January 31, 2019 V.B. Receive payment of the following claims as shown as per pre -list dated February 11, 2019, and consisting of 2 pages: $47,583.85 Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. REQUEST FOR FINANCIAL PARTICIPATION FOR 7200-7250 FRANCE AVENUE Economic Development Manager Neuendorf outlined the history and current conditions of the 7200 and 7250 France Avenue buildings and shared how the parking structure had become unstable. He stated both buildings were Class C office space but was aged and outdated. He summarized how Tax Increment Financing (TIF) was used in projects such as this. The developer had requested $12 million in TIF support to make their project viable and the gap could be resolved through a combination of additional equity, TIF, and outside grants. Mr. Neuendorf highlighted the property tax capacity and estimated market value with minimum improvements that included all demolition and site preparation, two apartment buildings with commercial street -level space, prepared pad for 10 townhomes to be constructed by another developer, and delivery of all easements. He shared the return was within reasonable limits, Ehlers and Associates had reviewed three possible scenarios for this site, and recommended pursuing the proposed project with TIF support as it delivered the highest long- term tax benefit to the community. He outlined the terms that would create a 20-year special housing TIF District with a pledged amount of $12 million while the applicant would pursue grants from DEED and the Metropolitan Council and would sign a prepared TIF redevelopment agreement later in 2019. Mr. Neuendorf answered questions of the HRA regarding assurances that the townhome development would be completed, the pad not used for a surface parking lot, the City's costs to establish the TIF district were borne by the developer, the but -for test, risk to the City, what the City would get in exchange, assurance that the Page I Minutes/HRA/February 14, 2019 townhome development moved forward, the second level plaza and assurances that the area would be ADA accessible and during all weather. Dean Dovolis, DJR Architects, responded that developers want the equity and there was never an intent to complete the townhomes. He explained how the $12 million would help them prepare the project and pad, which would be fully covered in the final development agreement. Motion made by Commissioner Fischer seconded by Commissioner Staunton to approve the Term Sheet and authorize staff to engage legal and financial professionals to prepare a full Redevelopment Agreement based on the approved Term Sheet with modification to item 3.d. Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VI.B. RESOLUTION 2019-05: FINDING THAT PARCELS ARE OCCUPED BY STRUCTURALLY SUBSTANDARD BUILDINGS, 7200-7250 FRANCE AVENUE Mr. Neuendorf said while staff did not anticipate the need for this action, staff requested certification of the substandard building conditions in the event there was a concern and an emergency demolition was needed. Motion made by Commissioner Brindle seconded by Commissioner Fischer to adopt Resolution No. 2019-05 finding that parcels are occupied by structurally substandard buildings. Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VI.C. RESOLUTION 2019-06: REQUESTING A PUBLIC HEARING ON THE PROPOSED ESTABLISHMENT OF THE 72ND AND FRANCE TAX INCREMENT FINANCING DISTRICT Mr. Neuendorf explained the action called for a public hearing to create a TIF district with the formal request scheduled for the March 19, 2019, City Council meeting that would provide the public an opportunity to comment in support or opposition to the proposed TIF district. Motion made by Commissioner Anderson seconded by Commissioner Fischer to adopt Resolution No. 2019-06 requesting a public hearing on the proposed establishment of the 72nd and France Tax Increment Financing District. Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VI.D. APPROVE AMENDED AFFORDABLE HOUSING POLICY Manager Neal confirmed that while action was required on the affordable housing policy, postponement would not be a concern at this time. Motion made by Commissioner Brindle seconded by Commissioner Staunton to table consideration of the Amended Affordable Housing Policy to the February 28, 2019, meeting. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. VII. CORRESPONDENCE VII.A. Correspondence — None VIII. HRA COMMISSIONERS' COMMENTS — None IX. EXECUTIVE DIRECTOR'S COMMENTS IX.A. Project Update — None X. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:15 a.m. Respectfully submitted, 2 Minutes/HRA/February 14, 2019 fi Scott Neal, Executive Director