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HomeMy WebLinkAbout19880307_joint111 MINUTES OF THE JOINT MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY/CITY COUNCIL MARCH 7, 1988 cu Ln Ln I: m Q: A joint meeting of the Edina Housing and Redevelopment Authority and the City Council was convened to consider concurrently amendments to the Southeast Edina Redevelopment Plan, approval of the Tax Increment Financing Plan and Redevelopment Contract and Condemnation of DeCourcy Property. Action was taken by the HRA and the Counci1,individually as required. Answering rollcall were Commissioners/Members Kelly, Richards, Smith, Turner and Courtney. M[NuTEs of the BRA Meeting of February 22, 1988 were approved as submitted by motion of Commissioner Turner, seconded by Commissioner Kelly. / Ayes.: Kelly, Richards, Smith, Turner, Courtney Motion carried. RESOLUTION ADOPTED APPROVING AMENDMENTS TO SOUTHEAST EDINA REDEVELOPMENT PLAN, TAX INCREMENT FINANCING PLAN AND REDEVELOPMENT CONTRACT. introduced Mr. Peter Jarvis of the development team to update the Commissioners on the Hedberg Project. Mr. Jarvis reported that he had first appeared before the HRA approximately six months ago and at that time went through the Master Plan. this Plan with regard to the park and the 494 Corridor Study. Fundamental questions have been asked about the overall tax increment project. Jarvis presented the exhibits which highlighted the overall Master Plan with changes that have taken place since September--specifically, 110 acres with high quality regional accessibility characteristics. a mixed-use project with all but three acres in Edina. linear orientation, picking up where the Yorktown trail system ends at the north, winding through the project and then cutting through to the west, tying directly into the turnaround that has been created on the west entry to Edinborough Park. and where the traffic characteristics of the immediate site area are the greatest, a series of non-residential uses are arranged, starting with premier office buildings in the southwest corner and at the corner of 76th and France. Included in this area are a major retail center, health and recreation athletic club, a small office statement and a multi-screen movie theater. Across the lake, there is predominately housing all the way from north to south. the low scale, and there will also be high-rise rental housing. A hotel is planned for the Bloomington side. There will be a 26-acre open space going through the development which will allow for jogging, walking, ice skating, cross-country skiing and snow-shoeing. also the linkage between the residential and non-residential. The major changes are in the park area--specifically, the central park. Both a winter park and summer park site plan were shown. Criticism has been made regarding the park structure location with regard to parking. It was suggested that the park be re-oriented, bringing it to the west side, closer to France Avenue to give it a focal point entry off of France Avenue. Whatever the configuration, the retail uses are the most public part of the project, where people are free to come and go. course could be developed in central park, with central park being enlarged and the amphitheater expanded. area separated from the lake in a convenient way for parents or seniors. Jarvis introduced Warren Beck, the developer of the retail portion of the Hedberg project as well as the owner/manager of the Galleria. explained that the master plan is looking at the expansion of the Galleria and the issue of traffic linkage. transit service is going to happen with a minimum of physical conflicts relative to the original design concept. at the present time, as are the draft EIS hearing period and public hearings. Mr. Beck commented on where the plans were a few months ago and how the retail and athletic facilities have evolved. Initially, a two-level enclosed mall with an athletic facility was proposed,. The concept today is the single store visibility and single store access, allowing the customers to drive to and park near the store itself. A 75,000 square foot softgoods store, Mainstreet, is a concept developed by the Federated Stores. category of those at Southdale are being considered. larger store users that may not be 75,000 square feet in size but are more than 15,000 square feet in size that have been seeking the Southdale area locations for some time, and they are being approached. does not have a high level of occupancy generates traffic and ends up being a Manager Rosland Three subsequent meetings have been held discussing Mr. What has been created is It has a north/south Along France Avenue, where the noise level is the highest A minimum of two or three types of housing is contemplated for sale in This area would create the buffer and Mr. Jarvis explained that the environmental putting golf There will be a major tot lot and wading beach Mr. Mr. Beck It appears that the juxtaposition of that The transit analysis is continuing Other stores fitting the There are a number of An enclosed mall that 3/7/88 real problem for everybody involved. refiguring of the retail area in that it was the same time there was a push to Phase I becomes a window to France Avenue with a theater, office building with a medical office specialty, retail and health club. which put an overall park budget together with a contingency in the 9.5 to 10.5 million range and Phase I in the 4.5 to 5.5 million dollar range, depending on final programs which are clearly not developed at this point. There will be a drainage retention area to accommodate the Southeast Edina Plan. Hennepin County is handling the final engineering design on the upgrade of France Avenue. Mr. Jarvis commented that the headquarters building and the little building housing the marina's uses have shifted to a slightly different focal point from winter to summer. east side came about because questions were raised about the fundamental structure of the park, both in terms of programmed activities and dimensional concerns, specifically whether the amphitheater was a good idea and as well the lack of proximity to parking in the previous orientation. staff collectively have agreed to take a fresh look at the main features, especially the major tot lot, the environmen-tal putting surface and the consolidation of games. good things that could be said about the strong visual relationship of the structure being directly back of France Avenue as well as proximity of public parking below the structure. configuration increases the accessibility to the park structure for the whole City rather than decreases it. instead of one with a larger parking area, and it is more visible to the surrounding area. whole City. Commissioner Turner questioned parking adequacy during retail hours, and Mr. Jarvis explained that the required parking of 500 to 1,000 spaces for retail and 500 to 1,000 for the recreation facility would be adequate 95% of the time. the year. A major event in the amphitheater could generate 1,000 people. Jarvis reminded the Commissioners that this mixed-use development concept gives the project a sense of vitality and life, making it unique. that one of the things he did not want to do was to screen the parking ramp 10 to 12-year schedule until total completion. necessary, some short term and some long term; the longest period for them would be 25 years from the date of the first receipt of tax increment. Executive Director Hughes commented that if it were not for tax increment financing, the costs would be amortized through special assessments against the property rather than the version of the real estate tax dollar in tax increment financing. special assessments, it would be a general obligation to the City. that the dedication at the time of development involves land rather than development. City budget or the park dedication contribution by all the developers is needed. through tax increments rather than the contribution. if the Hedberg project were to be sold piecemeal, what kind of ability would there be to negotiate and control the ultimate footprints. stated that we would have to rely on the normal zoning ordinance and that control would be lot by lot. to commend the development team and the staff who have worked so hard on this project. limit we imposed on Homart and whether we should apply our standards to this project. believes development along this corridor has a major impact on our whole transportation system. was about Edinborough, he is even more so for Hedberg. resolution approving the 1988 amendments to the Southeast Edina Plan, approv- ing the establishment of a tax increment financing plan, establishment of the district and authorization to execute and implement the redevelopment agree- ment with the understanding that what is in that redevelopment agreement are . the contingencies of subsequent approval of a housing plan, subsequent ap- proval of the Council as to the EIS and the feasibility of the tax increment financing and the ability for the capture to serve as the proposed bonded indebtedness of $19.5 million. source permit will enable us to impose and make part of the body of that permit any TDM that the Council feels appropriate and to be consistent with our trip generation program in what we are trying to do to control traffic in that whole Southeast Edina area. Commissioner Kelly commented that she could not vote for this tax increment district at this time. too many unknowns; the housing component is identified in the existing tax The timing was fortunate in the . bring a larger focus to the park. Mr. Jarvis said that final staging for Estimates have been made The possible changing of the park to the Consultants and A strong consensus emerged that there were a lot of Commissioner Turner stated that the new This way the public has two access streets She felt this is a much more accessible location for the Parking should not be a concern 11 months out of Mr. He stated from the park architecturally. If the project goes as planned, it would be a Bonds will be sold as Director Hughes explained that if we did not collect the He sta$ed In order to develop the land once received, either the general Director Hughes commented that the acquisition price is financed back Commissioner Smith asked , Director Hughes Commissioner Turner remarked that she would like She cclrmmented on the traffic, the issue of peak hour trips, the trip Having spent one and one-half years working on the 494 study, she Commissioner Richards commented that as enthused as he He would support the It is further understood that the indirect She felt there were I 3/7/88 113 I cu Ln Lo 72 a m I 1 increment district, and the storm water problem is totally in need of cor- rection. She questioned the building of the whole park, maintenance and security, and indicated she had unknowns regarding the shortfall agreement. Commissioner Smith commented that the shortfall agreement allows us to tax at the higher rate so we can cover the debt service that is tied to the $19 million. Commissioner Kelly explained that two parcels of this project are already in a tax increment district--Parcel C and Parcel A within Southeast Edina. Her concern was that the City is having trouble maintaining the parks already existing. Commissioner Turner commented that she intended to support the project, contingent upon the EIS and the 494 study. introduced the following resolution and moved its adoption: RESOLUTION APPROVING TEE 1988 AMENDMENTS TO TEE SOUTHEAST RDIW RED~PMEIUT PLAN, APPROVING TAX INcXEMENT FINANCING PLAN 88-1 AND THE ESTABLISHMENT OF TAX IN- FINANCING DISTRICT 88-1 AND APPROVING TEE LAND SALE AGREBENT AND CONTRACT FOR PRIVATE REDEVRT..OPMENT AND AUTHORIZING Commissioner Richards TEE EXECUTION AND DELIVERY THEREOF BE IT RESOLVED, by the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA'~), as fillows: 1. Edina City Council have previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 462.421, subdivision 15, designated as the Southeast Edina Redevelopment Plan, and have approved various amendments thereto (as so amended, the "Redevelopment Plan"). the HRA approve additional amendments to the Redevelopment Plan, designated as the 1988 Amendments to the Southeast Edina Redevelopment Plan (the "1988 Amendments"), which among other things, authorizes the development and admin- istration of an interest reduction program under Minnesota Statutes, Section 469.012, subdivision 7, to pay all or a portion of the construction period interest for housing units to be constructed in connection with a redevelop- ment project to be undertaken by the HRA in accordance with the Plan (the "Interest Reduction Program"). 2. velopment costs to be incurred by the €IRA in connection with the Plan and a redevelopment project to be undertaken by the HRA pursuant thereto, it has been further proposed that the HRA approve a tax increment financing plan, pursuant to the provisions of Minnesota Statutes, Section 469.175, to be designated as Tax Increment Financing Plan 88-1 (the "Financing Plan"), which establishes a tax increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, to be designated as Tax Increment Financing District 88-1 (the "District") . 3. It has been proposed that the HRA and the East Edina Housing Foundation (the "Foundation") enter into a Land Sale Agreement and Contract for Private Redevelopment (the '%RA Redevelopment Agreement"), covering a portion of the property subject to the Redevelopment Plan. velopment Agreement has been presented to this Board. 4. described in the document entitled "1988 Amendments to Southeast Edina Rede- velopment Plan'' which has been presented to this Board, and the 1988 Amend- ments and the Interest Reduction Program as so described are hereby approved. The Financing Plan and the District are described in the document entitled "Tax Increment Financing Plan 88-1 of the Housing and Redevelopment Authority of Edina, Minnesota" which has been presented to this Board, and the Financing Plan and the District as so described are hereby approved, subject to the execution and delivery by the HRA and the Foundation of the HRA Redevelopment Agreement. Agreement presented to this Board is hereby approved, subject to such changes and additions thereto as are approved by the Chairman and Executive Director of the HRA, such approval to be evidenced by the execution and delivery of the HRA Redevelopment Agreement by the HRA. content of the HRA Redevelopment Agreement by the Chairman and Executive Director, any two officers of the HRA are hereby authorized and directed to execute and deliver the HRA Redevelopment Agreement on behalf of the HRA, together with such other documents, agreements and instruments to be executed and delivered by the HRA pursuant to the HRA Redevelopment Agreement. Executive Director of the HRA and the attorney for the HRA are hereby authorized and directed to proceed with the implementation of the Redevelopment Plan as amended by the 1988 Amendments, the Interest Reduction Program, the Financing Plan and the District. 1988 Amendments to Southeast Edina Redevelopment Plan. The HRA and the It has been proposed that Tax Increment Financing Plan 88-1. In order to finance the public rede- Land Sale Agreement and Contract for Private Redevelopment. An outline of the proposed terms of the HRA Rede- The 1988 Amendments and the Interest Reduction Program are Approvals. The provisions in the outline of the proposed HRA Redevelopment Upon the approval of the form and The The Executive Director is 3/7/88 114 further authorized and directed to request the appropriate authorities of Hemepin Countyto certify the original assessed value of the District pursuant to Minnesota Statutes, Section 469.177 following (i) approval of the Financing Plan and District by the Edina City Council in accordance with Minnesota Statutes, Section 469.175, subdivision 3, and (ii) the execution and delivery by the HRA and the Foundation of the HRA Redevelopment Agreement. 5. Interest Reduction Program. This Board acknowledges that in developing and approving the ljnterest Reduction Program it has considered (i) the availability and affordability of other government housing programs, (ii) the availability and affordability of private market financing; and (iii) the need for additional affordable mortgage credit to encourage the construction and enable the purchase of housing units within the jurisdiction of the HRA. This Board further acknowledges that the approval hereby given to the 1988 Amendments and the Interest Reduction Program authorizes all of the interest reduction assistance payments thereunder whether made prior to or after January 1, 1989. Motion for adoption of the resolution was seconded by Commissioner Smith. Rollcall: Ayes: Richards, Smith, Turner, Courtney Nays: Kelly Resolution adopted. Member Richards then introduced the following resolution and moved its adoption: RESOLUTION APPROVING 1988 BHENDMENT TO TEIE SOUTHEAST EDINA RKDEVIZLOIPHENT PLAN AND TAX INCRPMENT FINANCING PLAN 88-1 FOR TAX INCREMENT FINANCING DISTRICT 88-1, MAKING FINDINGS AND REQUESTING GERTIFIWTION OF THE TAX INCREMENT FINANCING DISTRICT 88-1 BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows: 1. the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA") have 1988 Amendment to Southeast Edina Redevelopment Plan. This Council and previously approved a redevelopment plan and redevelopment project under Minnesota Statutes, Section 469.001 to 469.047, designated as the Southeast Edina Redevelopment Plan, and have approved various amendments thereto (the "Redevelopment Plan"). hearing on amendments to the Redevelopment Plan in accordance with Minnesota Statutes, Section 469.029, subdivision 6. The amendments are designated as the 1988 Brnendments to the Southeast Edina Redevelopment Plan (the "1988 Amendments"). development and administration by the HRA of an interest reduction program under Minnesota Statutes, Section 469.0J2, subdivision 7, to pay all or a portion of the construction period interest for housing units to be constructed in connection with a redevelopment project to be undertaken by the ERA in accordance with the Redevelopment Plan (the "Interest Reduction 2. At the request of the ERA, this Council has held a public hearing on a tax increment financing plan of the ERA, as defined in Minnesota Statutes, Section 469.175, designated as Tax Increment Financing Plan 88-1 (the "Tax Increment Financing Plan"), covering a portion of the property included in the area covered by the Redevelopment Plan. The Tax Increment Financing Plan establishes a tax increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, designated as Tax Increment Financing District 88-1 (the "District"). 3. Approvals. The 1988 Amendments are hereby approved.. The Tax Increment Financing Plan is hereby approved, subject to the'execution and delivery by the HRA and the East Edina Housing Foundation (the "Foundation") of the Land Sale Agreement and Contract for Private Redevelopment (the II~ Redevelopment Agreement") by and between the HRA and the Foundation. Upon the execution and delivery by the ERA and the Foundation of the HRA Redevelopment Agreement, the Mayor and City Manager are hereby authorized and directed to execute and deliver on behalf of the City the Consent of the City attached to the BRA Redevelopment Agreement, together with such other documents, agreements and instruments to be executed and delivered by the City pursuant to-the HRA Redevelopment Agreement. 4. This Council finds that the District is a redevelopment district within the scope of Minnesota Statutes, Section 469.174, subdivision 10, for the following reasons: (i) less than 70 percent of the parcels in the District are occupied by buildings, streets, utilities or other improvements, (ii) as shown by the Real Estate Consulting Analysis dated September 15, 1987, prepared for the HRA by Robert Boblett Associates, Inc., due to unusual terrain or soil deficiencies requiring substantial filling, grading or other physical preparation for use at lease 80% of the total acreage of land in the District has a fair market value upon inclusion in the District, which when At the request of the HRA, this Council held a public The 1988 Amendments, among other things, authorize the Program'#) . Tax Increment Financing Plan. Findings With Respect to District Constituting Redevelopment District. 115 added to the cost of preparing that land for development, excluding costs directly relating to roads as defined in Section 160.01 and local improvements as described in Section 429.021, subdivision 1, clauses 1 to 7, 11 and 12 and 430.01, exceeds its anticipated fair market value after completion of the preparation; and (iii) upon the execution and delivery by the HRA and the Foundation of the HRA Redevelopment Agreement, the BRA will have-concluded an agreement for the development of at least 504: of the acreage in the District having the unusual soil or terrain deficiencies, which agreement provides recourse to the ERA should the development not be completed. 5. Findings With Respect to Redevelopment Plan. Pursuant to Minnesota Statutes, Section 469.028, subdivision 2, it is hereby found that: (A) The land located within the area to be subject to the Interest Reduction Program would not be made available for redevelopment without financial aid sought; (B) The Redevelopment Plan as amended by the 1988 Amendments will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the areas covered thereby by private enterprise; and (C) The Redevelopment Plan as amended by the 1988 Amendments conforms to the general plan for the development of the City as a whole. 6. Findings Under Tax Increment Financing Act. Pursuant to Minnesota Statutes, Section 469.175, subdivision 3, it is hereby found that: (A) The District is a redevelopment District as defined in Minnesota Statutes, Section 469.174, subdivision 10, for the reasons set forth in Section 4 hereof; (B) The proposed development to be undertaken in accordance with the Redevelopment Plan as amended by the 1988 Amendment in the opinion of this Council would not occur solely through private investment within the reasonably foreseeable future and therefor the use of tax increment financing is deemed necessary; (C) The Tax Increment Financing Plan conforms to the general plan for the development of the City as a whole; (D) The Tax Increment Financing Plan will afford maximum opportunity consistent with the sound needs of the City as a whole for the development of the District by private enterprise; and (E) The City elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, subdivision 3, clause (a). Motion for adoption of the resolution was seconded by Member Smith. I a 1 CL] a Rollcall: Ayes: Richards, Smith, Turner, Courtney Nays: Kelly Resolution adopted. I RESOLUTION ADOPTED DETERMINING THE NECESSITY FOR AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY BY PROCEEDINGS IN EMI"T DOMAIN. Commissioner Richards introduced the following resolution and moved its adoption: RESOLUTION DETERMINING THE NECESSITY FOR AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPWTY BY PROCEEDINGS IN EMINENT DOMAIN BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "ERA"), as follows: 1. The ERA has previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 469.001, subdivision 16, designated as the Southeast Edina Redevelopment Plan (the "Original Plan"), and has approved various amendments to the Original Plan, including, but not limited to, an amendment designated as the 1987 Amendment to the Southeast Edina Redevelopment Plan (the "1987 Plan Amendment"), approved by a resolution adopted by this Board on June 15, 1987 (the Original Plan as so amended by the 1987 Plan Amendments and 'the other amendments to the Plan is herein referred to as the "Plan"). 2. It is hereby determined that the acquisition by the BRA of the following described property which is included in the area subject to the Plan is necessary to carry out the 1987 Project, as defined in the 1987 Plan Amendment, which 1987 Project was approved by the HRA in the 1987 Plan Amendment and constitutes a redevelopment project, as defined in Minnesota Statutes, Section 469.001, subdivision 14: That part of the East 1/2 of the Southwest Quarter of the Southwest Quarter, Section 32, Township 28, Range 24 lying West of a line drawn North parallel to the East line of the Southwest Quarter of said Section 32 from a point on the south line thereof 1659.625 feet West of the Southeast comer of the Southwest Quarter of said Section 32, according to the government survey thereof. 3. and directed on behalf of the ERA to acquire the property described in paragraph 2 above by the exercise of the power of eminent domain pursuant to Minnesota Statutes, Chapter 117, and is specifically authorized to notify the owners of intent to take possession pursuant to Minnesota Statutes, Section 117.042. The Executive Director of' the ERA and attorney for the ERA are authorized The Executive Director of the ERA and attorney for the HRA are 3/7/88 116 further authorized to take all actions necessary or desirable to carry out the purposes of this resolution. Motion for adoption of the resolution was seconded by Commissioner Turner. Rollcall: Ayes: Kelly, Richards, Smith, Turner, Courtney Resolution adopted. There being no further business on the agenda of the joint meeting of the HRA and City Council, Commissioner/Me.mber Kelly moved adjournment. seconded by Commissioner/Member Turner and carried. Motion was Acting City Clerk-' !