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HomeMy WebLinkAbout19900319_joint261 MINUTES OF THE JOINT MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AU'JXORITY/CITY COUNCIL HELD AT EDINA CITY J3AI.L MARCH 19, 1990 A joint meeting of the Edina Housing and Redevelopment Authority and the City Council was convened to consider concurrently: 1) Preliminary Report on Tax Increment Districts and 2) Extension of Resolution - Acquisition of Kunz Oil/Lewis Engineering Properties. Action was taken by the HRA and Council as recorded. ROLLCALL Answering rollcall were Commissioners/Members Rice, Smith, Richards. Commissioner/Member Paulus entered the meeting at 7:12 p.m. MINUTES of the Joint HRA/Council Meeting of March 5, 1990 were approved as submitted by motion of Commissioner Smith, seconded by Commissioner Rice. Ayes: Rice, Smith, Richards Motion carried. PRELIMINARY REPORT PRESENTED ON TAX INCREMENT DISTRICTS: PUBLIC HEARING TO BE HELD ON 4/2/90 HRA Executive Director Gordon Hughes stated that in accordance with the Council's request, staff has prepared draft plans supporting the establishment of tax increment financing districts at Valley View Road and Wooddale Avenue, 44th Street and France Avenue, and 70th Street and Cahill Road. plans have been prepared with the assistance of the Hoisington Group, planning consultant. business community. consultant seek comment and direction concerning them from the HRA Commissioners. These preliminary J. Peter Meyers has also assisted staff in discussions with the The plans are in the draft stage and the staff and Plan Preparation and Review Process - Prior to commencing plan preparation, staff and the consultant met individually with the five or six key business persons from each of the three retail area. The purpose was to obtain their comments and recommendations concerning the area and to determine if they had particular plans relating to their businesses. Subsequently, the consultant prepared preliminary land use and public improvement plans. On February 27, 1990 staff and'the consultant conducted an open meeting with each of the three retail areas. The preliminary plans were presented and comments and recommendations were received from those in attendance. On February 28, 1990 the preliminary plans were presented to the Community Development and Planning Commission for informal review. Following these meetings, the consultant revised and refined the land use plans. At the same time, staff has drafted the narratZve that will accompany the plans. process of preparing the legal documents necessary for district establishment. The City's legal counsel is presently in the Executive Director Hughes said that the purpose of the preliminary report at this meeting is to obtain comments and recommendations so that any revisions to these plans can be made prior to the public hearing on April 2, 1990. Individuals who were in attendance at the February 27, 1990 meeting have been invited as well as other individuals who have called to inquire about the plans. The Community Development and Planning Commission will again review the plans on March 28, 1990 and, hopefully, will pass a recommendation on to the Council. Status of Tax Increment Financing Legislation - - Legislation adverse to tax increment financing has been introduced in both houses of the Legislature. Adoption of this legislation would likely restrict the City's ability to create these proposed tax increment financing districts. It would be important to establish these districts prior to April 30, 1990, when the proposed legislation would be effective. Preliminary Plans - Certain portions of the proposed legislation may affect districts that are created prior to April 30. In particular, it may affect the City's ability to amend existing tax increment financing plans at a later date. 3/19/90 262 Therefore, the proposed retail plans provide for a wide range of public involvement based on the reasoning that it may be difficult to expand the scope of these plans in the future. The adoption of the tax increment financing plans and districts does not commit the City to implement the plans. districts would provide the financial basis for future City or HRA participation. Therefore, the plans should be viewed as schematic in nature. I Establishment of the Finance Plans - Finance plans will be incorporated into the legal documents presented on April 2. public expenditures is included, e.g. possible public acquisition of properties to facilitate development/redevelopment. These possible acquisitions include single family homes particularly at 44th and France. all possibilities recognizing that legislation may restrict the ability to expand plans in the future. As with the land use plans, a wide range of potential The strategy has been to include Preliminary public cost budgets have been prepared, but staff has not attempted to determine if adequate tax increments will exist to support such expenditures. staff's view, such analyses are best performed at the time specific projects are proposed. In Summarv - Executive Director Hughes reiterated that staff is anxious to hear the Council's reaction to the concepts in the land use plans, and secondly, some direction as to the amount of public involvement in the districts, particularly as it relates to the potential acquisition of private property for development or redevelopment. All three proposed districts are affected to some degree, at least in the draft stage, by the potential acquisition of property by the City to facilitate development/redevelopment. That is a policy question as to whether the City should be involved in that role or merely should be involved in the traditional public right of way type improvements such as was done at 50th and France. with the very short duration of districts that the City is faced with today, compared with the 50th and France District. Valley Viewflooddale and 7Oth/Cahill have at most an eight year life making it much more difficult to repay public costs. established as a redevelopment district with a 25-year life and, therefore, a greater ability to finance public cost. Executive Director Hughes then introduced Fred Hoisington, Hoisington Group, noting that he was a former Edina City Planner and is very familiar with the three areas that are being studied. (Commissioner/Member Paulus entered the meeting at this point.) I Tax increment financing is more difficult under the present environment Two of the proposed districts, e.g. It is hoped that 44th/France can be Fred Hoisington, consultant, then presented graphics of the three retail areas proposed for tax increment districts. existing conditions, analysis, redevelopment plan and public improvement plans. Mr. Hoisington presented the draft plans in some detail, which are summarized as follows : The graphics included the plan area, 44th and France Redevelopment Plan - The 44th and France area is a neighborhood scale commercial district. It was developed as "Downtown Morningside" in the 1930's and has maintained its original flavor. Plan area is generally bounded by 44th Street on the north, France Avenue on the east, 46th Street on the south and Eton Avenue extended on the west. The Plan Area contains a variety of residential and non-residential land uses. There are no vacant parcels within the Plan Area. the retail uses on France Avenue. Street and Sunnyside Road are primarily office uses. The 44th and France Redevelopment I The Plan Area is anchored by Non-residential buildings along West 44th 3/19/90 263 The character of the Plan Area is that of an urban, neighborhood scale retail district. Portions of certain developed parcels contain steep slopes and low areas which provide ponding areas and open space. Electric utilities are above ground throughout the Plan Area. All of the parcels have been developed. Some properties within the Plan Area receive water from Minneapolis. Parking for office and retail uses is provided in private parking lots and public on-street parking. The amount of off-street parking does not comply with current zoning requirements. central part of the Plan Area. Convenient parking is lacking for many businesses in the Most buildings in th”e Plan Area were constructed in the 1930‘s and 1940’s. remain structurally sound but a significant percentage suffer from structural and life-safety code problems requiring substantial renovation or complete redevelopment. Most Much of the charm of 44th and France is its eclectic and somewhat haphazard development pattern. However, this has created some problems. The commercial area is not clearly defined and this has resulted in the conversion of some single family homes to non-residential uses. single family homes because they are isolated and relate only to non-residential uses. The lack of a clear definition of the retail center and transitional buffers is a blighting influence on single family homes nearby. The Edina Cleaners, located at France Avenue and Sunnyside Road, in addition to its original structure occupies what was originally the Westgate Theatre. In addition to its retail function it operates a large-scale dry cleaning plant. This industrial use is inappropriate in a neighborhood scale retail center. Parcels to the south contain inappropriate and obsolete land uses. conditions range from substandard to fairly good. It has also resulted in disinvestment in Building The central portion of the business district is served by a relatively large surface parking area accessed from Sunnyside Road. owned by a number of property owners. organization of the spaces and drive aisles makes this very inefficient parking. The office uses along 44th Street have an adverse effect on residential properties on the north side of 44th Street. This has resulted in a lack of maintenance and reinvestment resulting in substandard buildings. The Redevelopment Plan showed redevelopment in the area south of Sunnyside Road with office to the south and 15,000-20,000 square feet of retail on the corner of Sunnyside/France. An entry feature on the corner would identify the area as a retail center. reorganized. Potential retail development could occur in the Linhoff building area, with possible expansion by Durr, Ltd. housing could occur on the north side of 44th Street to eliminate the existing conflict. included in public improvements to correct problems with public streets/sidewalks. The shared parking area is Poor access, grade differentials and no The large surfacing parking area would be improved and Low to medium density multi-family Undergrounding of electric utilities and street landscaping would be Wooddale and Vallev View Road DeveloDment Plan - The Wooddale and Valley View Road Plan Area is primarily a neighborhood scale commercial area. in the late 1950’s and early 1960‘s. area but it has maintained its original flavor. primarily related to serious traffic and parking problems. exists at least one significant inappropriate use and some incompatibility between residential and commercial uses. is gradually deteriorating and is in need of upgrading. The Plan Area in general includes the tracts adjacent to the north side of Valley View Road from the Valley View Center west of Wooddale Avenue, extending to The area developed There has been some redevelopment in the In addition, there Deficiencies in the area are Physical development is now outdated and 3/19/90 264 Oaklawn Avenue. retail features. All private utilities, except natural gas, are above ground. The Plan Area is completely developed with urban, neighborhood Parking conditions vary throughout the Plan Area. Valley View Center a surplus of parking exists. insufficient parking. of way. Circulation within the area is difficult. In many instances there is not separation between sidewalk and street and/or parking and street. access/egress points also exist. To the west of Wooddale at the Cars are often double parked or parked onto the City right All uses east of Wooddale have Parking lots are privately owned and some sharing does occur. Numerous large An analysis of the Plan Area showed general problems as: Broad expanses of pavement; no greenspace Poor signage; no continuity of architecture Too many driveways; to wide and undefined Disorganized parking area Lack of commercial district identify Limited expansion potential. Within the commercial area, activities at the Conoco Station are inappropriate and do not conform to the Zoning Ordinance requirements. exist between the commercial area and the adjacent residential properties to the north, particularly east of Kellogg. Land use conflicts also The public improvements project would include activities intended to correct non-conforming conditions in the boulevard area and to correct parking and circulation problems in the district. It would provide an identity for the commercial area as well as improving the appearance by providing landscaped boulevards and parking areas. utilities is also included. The development project would remove the Conoco Station and replace it with off-street parking for the Clinic/Drug Store building and for the Sports Shop/Baskins Robbins building. View Road to help isolate the residential area from the commercial district. additional parking would allow the elimination of non-conforming and hazardous parking along the east and south side of the Clinic/Drug Store. well as others along the perimeter of the development would be landscaped and screened. Wooddale Avenue would be widened with the addition of a third lane for right and left hand turns. The Development Plan includes an addition of approximately 6,000 square feet to the southwest end of the existing Valley View Center. and present parking would accommodate the additional floor space. anticipates remodeling and upgrading of the present center concurrent with the expansion. 70th Street and Cahill Road DeveloDment Plan - The 70th Street and Cahill Road Plan Area is a diverse mix of residential, commercial and industrial uses. area developed primarily between 1950 and 1975. The Plan Area is bounded by 70th Street to the north, the railroad right of way to the east, the northern boundary (from east to west) of the Gabberts building, Village Drive extended and the City of Edina park open space property to the south, and the rear lot lines of the single family homes fronting on Lanham Lane and Lee Valley Circle to the west. I Replacing above ground utilities with underground Kellogg Avenue would no longer connect to Valley The These areas as The site is under utilized The Plan also The Land use in the Plan Area covers a full spectrum of uses. are spread across the 17 parcels in the Plan Area which in total comprises approximately 27 acres. however, land to building ratios are relatively high particularly west of Cahill Five zoning districts The Plan Area is essentially completely developed, 3/19/90 265 Road. Open space is comprised of woods and steep slopes. There is also a grade separation which divides the commercial land east of Cahill into north and south components. The Plan Area is a part of the Nine Mile Creek Watershed District. Drainage from the area flows to the south along Cahill Road and east along West 70th Street. All private utilities, except natural gas, are routed above ground. In general, the broad land use categories of the Plan Area are appropriate. As currently utilized, however, the following land use problems exist: 1) Land Use Relationships - The transition between single family residential uses and higher intensity uses could be improved. 2) Under Utilized Parcels - Parcels in the Plan Area are of adequate size to accommodate reasonable development. However, land to building ratios are high and buildings are located in a manner which prevents infill development. Specifically, a) the former Edina School building, b) the old St. Patrick Church, and c) the commercial area between Amundson and Cahill Road. An analysis of the Retail Center identified the following problems: Buildings are disconnected Lacks unified orientation Lacks proper fit with market area General lack of evergreen and shrub plantings Access to shopping center is awkward and unclear Center building is on slope; rear of building faces Cahill Road and is Amundson Avenue no longer needed. difficult to lease Land Use related components of the Development Plan emphasize elimination of uses inconsistent with the Land Use Plan designations and encourage appropriate redevelopment, particularly west of Cahill Road. In addition, redevelopment of functionally obsolete buildings is anticipated, particularly in the retail portion of the Plan Area. Reestablishment of an appropriate portion of the Plan Area as a historical feature is also anticipated. Development and redevelopment should be principally accomplished privately with public acquisition for development kept to a minimum. Physical Development components of the Development Plan emphasize the upgrading of site and building features to meet contemporary user standards. As to relocation, it is the intent of the H.R.A. that current owners of properties designated for redevelopment be party to efforts to redevelop their properties. The Development Plan illustrates a number of projects in the Plan Area which encompass both public and private property: Public Improvements - This project would eliminate unnecessary streets, improve sidewalks and other public and private utility systems and would designate the historical significance of the Plan Area. Residential Project - This project would encourage development consistent with the land use designations of the Land Use Plan as amended in 1990. is west of Cahill Road and south of 70th Street. family residential to the far west of possibly 13 homes and as many as 21 attached dwellings on the east portion. The project area Development may include single Retail Project - This project is sensitive to immediate service area needs. project would upgrade and/or create facilities which meet current user demands. high priority would be to encourage the establishment of businesses to better serve the market area. two possible directions: The A It is anticipated that the retail project may take one of Alternative A - This alternative would involve the complete development of 266 3/19/90 the commercial area. in the existing commercial area, plus the 7075 Amundson building and the construction of two new buildings totaling 66,000 square feet. number of tenants is also anticipated including potentially upscale convenience retailers. Public activities may include those in Alternative B as well as the following: It would call for the elimination of the five buildings A greater - Soil correction and preparation - Street vacation - Land acquisition - Relocation of individuals and businesses - Land writedowns - Low interest loans - Sale of land to private developer. Alternative B - This alternative would involve the refurbishing of the existing commercial area. change significantly. Retail floor areas and tenant users will not Public activities may include the following: - Interest assistance for rehabilitation - Pedestrian/sidewalk improvements - Landscaping/streetscape improvements - Clearance and demolition - Identification and directional signage. Following the conclusion of the presentations by Mr. Hoisington, Mayor Richards called for public comment. Dr. Frank Side11 stated that he has owned the building at 3920 Sunnyside Road for 30 years, in which his practice is located, together with the parking lot. The Redevelopment Plan for the 44th and France Area would confiscate his parking lot and devalue his property. plans include expansion of the building. negative and would seriously jeopardize their b.uilding plans. He said his son has joined his practice and future The Redevelopment Plan would be a large Steve Soltau, 6100 Oaklawn Avenue, said the proposed closing of Kellogg would increase the traffic problems which now exist at the Oaklawnflalley View triangular intersection. He objected to reorienting the parking for the clinic/drug store building towards the residential area. he would like to see some parking included for b.us riders. As a bus rider, he said James Van Valkenburg stated that he represented the Edina Cleaners & Launderers at 4500 France Avenue South. He said that his clients are concerned that the removal of their existing building will put them out of business. Currently, they have approximately 2,000 customers per week, most of whom use the drop-off area in front of their facility. cleaners in the metropolitan area they are concerned that they will lose that business. Also, because they are one of very few commercial Sam Thorpe, owner of the Convention Grill at 3912 Sunnyside Road, stated that the property is under lease for 8 more years. believed that taking away the parking for that property would severely damage the value of the property. He said one of the advantages for customers coming to the Convention Grill is that they can usually find a parking place. Bill Schlink stated that he is the owner of the Unocal station at 5415 W. 70th Street. The development plan for the 70th Street and Cahill Road area does not show a service station. He said his station does serve a lot of customers in that neighborhood, is a good location and that there are other wzys of accomplishing those projects that would be less costly. Not knowing the financial setup, he He cautioned against rushing into the 3/19/90 267 project. idea, He said several of his customers who know of the plan are upset with the Dr. Phillip Side11 said he had several concerns for the 44th and France Redevelopment Plan. the affect on the remaining adjacent homes. Secondly, once this is passed it was his impression that the plan is the ideal or goal for the area and that future plans must fit into this mold. rebuilding that does not fit into the mold they would have a difficult time to get a variance or some other way to achieve that. Bob Roster stated he was a partner with his father in Roster’s Conoco on Valley View Road. He said at times the U-haul trucks at their station may be unsightly but it appears that services stations of that type are marked territory for redevelopment. dealership in Minnesota and have been providing this service for 32 years for the Edina community. They have adequate parking for their business but that the real problem was inadequate parking for Baskins Robbins and the bike shop. mentioned when that corner was developed the last building built was the house next to the bike shop which lot should have been parking for that retail area. He felt that house should also be included to provide future parking for that corner rather than acquiring his property. Also, that the houses to the north would not have to be removed if the parking could be addressed for the problem location. Reflections that has easement rights through the parking lot behind Baskins Robbins. First, he objected to the 4-6 homes that would be lost and If someone would like to do remodeling or He mentioned that they are the oldest established U-haul He He Mr. Roster pointed out that there is another house behind Best He said that has not been addressed in the plans. Kathy Reckie stated she was the owner of Best Reflections at 4400 Valley View Road. parking for their customers. devastating to lose her business and for those that work for her to lose their jobs . No further public comment being heard, Mayor Richards clarified that at this time no development or redevelopment project is being proposed to be undertaken. What the Council is doing is to make sure that any future Council has all the tools available to it to do whatever is reasonable, right and necessary to make sure that these areas can accomplish the objectives not only from the public side but what the private sector wants. to taking of any businesses, demolishing of parking, etc. What the Council is trying to do is give itself the opportunity to look at all those issues if and when they might come before the Council. Mayor Richards said the tax increment financing districts are being considered because there is a window of opportunity that exists today that might not exist in the future, e.g. the use of financing mechanisms for public participation. If the Council decides on April 2 to establish these tax increment districts it does not mean that any of the plans presented would be implemented. decided. Council from using one of the alternative tools that might otherwise be available to the public sector in dealing with some of these development and redevelopment issues that may come up in the future. Mayor Richards said this community has not seen a great deal of exercise by the Council in the taking of private property. be discussed and debated as to the Council exercising that power if the proper public purpose were found. public to understand the process and what the Council is trying to accomplish. He said that just because a plan has been proposed he did not want anyone to think that it was a given that the plan would be implemented. She said they renovated the building about eight years ago and added She said if the building is taken it would be The Council is not advocating any position as That is yet to be This is one step in the process that if not taken may preclude the This is a policy issue that needs to He concluded by saying that it is important for the He encouraged the 268 3/19/90 audience to return on April 2 for the public hearing on whether to establish the proposed tax increment districts. . Member Smith made a motion setting April 2, 1990, as the public hearing date on designation of the development district and approval of tax increment financing plans * Motion was seconded by Member Rice. Ayes: Paulus, Rice, Smith, Richards Motion carried. Jan Salto, 6100 Oaklawn Avenue, said she was concerned because only one plan has been presented for each of the three areas. talking with a number of the business people involved, they have gone through two or three iterations of the plans to get to this point. There has been a lot of consideration given to alternatives already and that would be an ongoing process. Mr. Hoisington explained that in RESOLUTION AUTHORIZING ACQUISITION OF KUNZ OIL/LEWI S ENGINEERING EXTENDED TO 8/1/90 a resolution concerning the acquisition of the Kunz Oil/Lewis Engineering properties for redevelopment purposes. only until December 31, 1989 and was further conditioned that acquisition could not occur until the HRA had received a signed and delivered redevelopment agreement for the property. On December 18, 1989 the HRA extended the resolution until March 30, 1990. Executive Director Hughes recalled that on October 2, 1989 the HRA adopted The resolution was valid and effective Director Hughes advised that on March 15, 1990 staff received a proposal for tax increment financing assistance from Jerry's Enterprises and Opus Corporation regarding the subject property. Based upon staff's estimate of the time needed to process the proposal for tax increment assistance as well as a rezoning of the property, staff would recommend extension of the resolution until August 1, 1990. Following some discussion on why this has been dragging on with no positive action indicated by Jerry's and Opus, Commissioner Smith moved adoption of the following resolution: BE IT RESOLVED by the Edina Housing and Redevelopment Authority that it hereby extends the provisions of the resolution adopted on October 2, 1989 and extended on December 18, 1990 relating to acquisition of certain property within the Grandview redevelopment area to August 1, 1990. Motion for adoption of the resolution was seconded by Commissioner Paulus. No other proposals have been received to date. I RESOLUTION Rollcall : Ayes: Paulus, Smith, Richards Nays: Rice Resolution adopted. Motion was made by Commissioner Smith and adjournment of the H.R.A. Motion was carr I U %&%U City Clerk