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HomeMy WebLinkAbout2021-07-29 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JULY 29, 2021 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. and then explained the processes created for public comment. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, and Chair Hovland. Absent: Commissioners Pierce, Staunton. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Anderson, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED - AS PRESENTED Member Jackson made a motion, seconded by Member Anderson, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting June 24, 2021 VI.B. Approve Payment of Claims, HRA Check Register dated June 2, 2021, totaling #135,619.64 Rollcall: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. RESOLUTION NO. 2021-06, ESTABLISH 4040 WEST 70TH STREET TAX INCREMENT FINANCING DISTRICT AND MODIFY SOUTHDALE 2 TAX INCREMENT FINANCING PLAN — ADOPTED Affordable Housing Development Manager Hawkinson stated this item pertained to the creation of a new Tax Increment Financing District to support the redevelopment of property at 4040 West 70th Street that included the creation of approximately 118 units of affordable rental housing. This item also included a modification to the Plan for the existing Southdale 2 Tax Increment Financing District to recognize the new TIF District and enable the pooling necessary to provide financial support for affordable housing in Edina. She referred to community support for more affordable housing in the City and that implementation of this resolution was contingent upon final approval by the City Council after a public hearing on August 4, 2021. She explained the proposed district in detail and its benefits if approved that would create a 21-year term with estimated annual increment of $202,948 and $1.8M in upfront construction proceeds. Page 1 Minutes/HRA/July 29, 2021 The Commission asked about the interrelationship with Southdale TIF pooled funds and the potential funding source if established and when the special legislation funds would be exchanged. Ms. Hawkinson explained the relationship with current pooled funds and said if the project moved forward with a ground lease the Foundation's loan would be forgiven as they would maintain ownership but if not, they could be obligated to pay back the loan for the land. She noted funds would only be exchanged if approved by the Council at next week's public hearing. Commissioner Jackson introduced and moved adoption of Resolution No. 2021-06; Establishing the 4040 West 70th Street Tax Increment Financing District and Approving a Tax Increment Financing Plan Therefor. Commissioner Anderson seconded the motion. Rollcall: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. VI►.B. RESOLUTION 2021-07, CALL FOR A PUBLIC HEARING ON THE PROPOSED MODIFICATIONS TO THE REDEVELOPMENT PLAN FOR THE SOUTHEAST EDINA REDEVELOPMENT PROJECT AREA AND THE SOUTHDALE 2 TAX INCREMENT FINANCING PLAN — ADOPTED Economic Development Manager Neuendorf shared this item was to call for a public hearing on the proposed modifications to the redevelopment plan for the Southeast Edina Redevelopment Project area and Southdale 2 Tax Increment Financing Plan. He said this action was required to have the City's financial advisor create a new plan, share with Hennepin County and the school district, and recommended its approval. The Commission asked what triggered this additional review. Mr. Neuendorf shared changes in TIF law warranted this additional consideration then explained the project area in detail. Commissioner Anderson introduced and moved adoption of Resolution No. 2021-07; Requesting the City Council of the City of Edina Call for a Public Hearing on the Proposed Modifications to the Redevelopment Plan for the Southeast Edina Redevelopment Project Area and Southdale 2 Tax Increment Financing Plan. Commissioner Jackson seconded the motion. Rollcall: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. VII.C. S 146 EDEN AVENUE —REDEVELOPMENT PLANNING— APPROVED Mr. Neuendorf shared this this item pertained to the redevelopment of the HRA's vacant property located at 5146 Eden Avenue. Based on the needs of the site and direction provided at the June 10, 2021, meeting of the HRA Board, staff had worked with representatives from Frauenshuh and United Properties to prepare a scope of work. He said this additional work was intended to support the decision -making process regarding the type of hospitality user to seek out for the northern portion of the site and that staff recommended approval of the engagement letter that would assist in identifying potential users for this site for presentation to the Commission later this fall that would assist in well-informed decisions. He said the goal would be to create a destination -based site. The Commission thanked the team for their work on this project then asked questions regarding how much needed to be defined for each area and how much parking would be needed for the senior housing. They inquired about financial responsibility of the talent pool would be on the HRA and whether Frauenshuh would be directing the activity or the other consultants. They asked for clarity regarding Step I and the need for clear direction from the HRA surrounding dates and the goal of achieving a significant public realm and how the City should not be directed by the developer. Page 2 Minutes/HRA/July 29, 2021 Dave Anderson, Frauenshuh, explained how the site plan would work for sizing and how approximations would be learned through what would be required. Mr. Neuendorf explained how Frauenshuh would act as a broker as they were better suited for this activity and that if no agreement was reached it would be their time at risk. He said the HRA would hire a parking consultant as part of the review to determine sufficient availability behind Jerry's without comprising function. He spoke about the proposed dining function with indoor and outdoor space and greenspace and the intent to engage Confluence on exploration of greenspace then outlined safeguards in place on how selections would be made in conjunction with meeting the construction schedule. The Commission spoke about the current state of the hospitality industry that followed the pandemic, the developer's position on the affordable housing policy and the number of units, and how they liked the timeframe and progress and understood the engagement letter language was broad to cover the intent. Mr. Neuendorf responded while there was still some uncertainty that followed the pandemic restaurant projects were starting to occur within the City and that 10% of the units were planned for affordability. Motion by Commissioner Jackson, seconded by Commissioner Anderson, to continue the redevelopment process and approve the proposed engagement letter with Frauenshuh and United Properties. Rollcall: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. VII.D. 4917 EDEN AVENUE — REVIEWED Mr. Neuendorf shared staff completed the preliminary analysis of the developer's request to use Tax Increment Financing for this site. In this case, TIF could be used to resolve the financing gap in the developers financial pro forma and also be used to fund some of the desired roadway improvements in and around the site. He said staff had met with the developers to better understand costs and identify the financing gap for this $83 million project which would be a good investment in the City. He said the project included 200 units with 10% affordable units and how escalating construction pricing, high land cost, and a redevelopment site had created the funding gap. Mr. Neuendorf said staff was confident they could identify enough new taxes to finance the gap and that there would be $6.8 million extra that could be used for public improvements in the immediate vicinity such as transportation needs. The Commission stated they were not comfortable paying for increased costs and agreed with the increased tangible public benefit elements but noted that costs of redevelopment was something the developer had to meet then expressed concerns with the land acquisition costs. Mr. Neuendorf explained the gap was approximately $5 million and that staff would only recommend a total public benefit amount they felt would meet the full gap and would return with land comparisons for Commission review. VII.E. GRANDVIEW EAST — POTENTIAL TRANSPORTATION IMPROVEMENTS — REVIEWED Engineering Director Millner shared staff had engaged Short Elliot Hendrickson (SEH) to prepare conceptual studies for potential transportation improvements that could address some of the traffic and safety concerns raised in relation to the redevelopment of 4917 Eden Avenue. He presented a summary of these concepts along with estimated costs and said some of these improvements could be funded by the HRA using tax increment financing. He said before these concepts could be refined and presented to City Council for formal consideration, input was requested regarding the potential use of HRA funding sources to construct these improvements. Mr. Millner outlined how the Page 3 Mimutee HRAJUu|y 29, 2021 concepts included improved safety, traffic operations,access and reduced complexity ofthe existing roadway network. He reviewed the proposed concepts in detail and costs that ranged from $2.8 million to$4.2million then asked for feedback, The Commission inquired about proposed funding sources for any project and if the project was not approved could they still move forward with a proposed transportation project. They referred to the public testimony for traffic impacts east on SUth Street and how the Sunnya|ope area was equally impacted and requested more information on how the two roundabouts would not preclude an oMrnmpond how the public would navigate the area. The Commission spoke about the historic buildings near the Perkins restaurant and the possibility of relocating. Mr. Neuendorfcommanted how T|Ffunds could be appropriately used for this transportation project and confirmed capacity for these improvements and but how T|F could not be used to construct public building, The Commission spoke about the proposed west promenade improvements. Mc MU|ner shared background on how the proposed improvements could work that would include two |Z-foot lanes with o large shared sidewalk and buffer space for trees and possible fencing. He said funding could come from the Centennial LakesT|F district identified for the Promenade Phase |Y in 2024that totaled $600,000 and would address the area of 69th to 70th and tie into future plans for Valley View Road. The Commission complemented staff on their great work in a short period of time and agreed fencing would be needed on the west side then confirmed that sufficient soil volumes would be included for healthy tree growth uswell aathe need for bike paths. Vi/L HR4 COMMISSIONERS' COMMENTS—Recaived Ix. EXECUTIVE DIRECTOR'S COMMENTS — Received X ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Anderson, to adjourn the meeting at 9;04 a.m. Roll call: Ayes: Commissioners Anderson, Jackson, and Chair Hovland Motion carried. Respectfully submitted,