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HomeMy WebLinkAbout2021-10-14 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 14, 2021 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. then explained the processes created for public comment. It. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, Staunton, and Chair Hovland. Absent: Commissioner Pierce. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Staunton, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Anderson, Jackson, Staunton, 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 August 26, 2021 VI.B. Approve minutes of the Special Meeting September 9, 2021 VI.C. Adopt Resolution No. 2021-1 I; Authorizing the Redemption of Public Project Revenue Bonds, Series 2009A VI.D. 3940 Market Street Lease Agreement with United States Postal Service VI.E. Pentagon Village LLC Redevelopment Agreement — Amendment #3 Rollcall: Ayes: Commissioners Anderson, Jackson, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. RESOLUTION NO. 2021-12; ESTABLISHING THE EDENIWILLSON REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND APRPOVING A TAX INCREMENT FINANCING PLAN THEREFOR - ADOPTED Economic Development Manager Neuendorf said this item pertained to the creation of a new Tax Increment Financing (TIF) District to support the redevelopment of property in an around 4917 Eden Avenue. The redevelopment project was located at 4917 Eden Avenue and the existing commercial structure was anticipated to be vacated and demolished. A new 7-story apartment building would be constructed on the site with below ground and surface parking. The building would include commercial tenant space on the first floor and 10 percent of the apartment units would be affordably -priced. He said in July 2021, the developer was granted preliminary rezoning and site plan approval for the mixed -use development and noted staff had met with the developer to understand the financial conditions that warrant consideration of public financing. Staff also engaged legal and Page 1 Minutes/HRA/October 14, 2021 financial advisors at Ehlers Associates and Dorsey & Whitney to scrutinize the financial pro forma and provide input on the potential use of TIF for this project who determined that the financial gap for the $83.7 million project was approximately $5.1 million. Ehlers also confirmed that "but for" the use of TIF, this project would be unable to secure private financing then noted in August 2021, the HRA agreed with the general business terms identified for the use of TIF. Nick Anhut, Ehlers and Associates, provided further background on the proposed TIF district. The Board asked questions and provided feedback. Member Staunton moved to adopt Resolution No. 2021-12 establishing the Eden/Willson redevelopment tax increment financing district and approving a tax increment financing plan therefor. Member Jackson seconded the motion. Roll call: Ayes: Commissioners Jackson, Staunton, and Chair Hovland Nay: Commissioner Anderson Motion carried. VII.B. EDINA THEATER 3911 W. 50TH STREET — FINANCIAL SUPPORT FOR RE - OCCUPANCY - REVIEWED Mr. Neuendorf shared this item pertained to the re -modeling and re -occupancy of the Edina Theater. He said the previous tenant vacated the facility in early 2021 due largely to the economic impacts of the ongoing COVID-19 pandemic and noted the landlord was prepared to lease the facility to a new operator. He said substantial renovations were necessary before the facility would be viable in the marketplace and that due to the importance of this facility to the community, staff had prepared a term sheet to identify business terms by which the City and HRA could provide financial support. Mr. Neuendorf said staff recommended approval of the term sheet and was seeking authorization to prepare contractual agreements with the tenant and landlord based on the approved terms. He spoke about the proposed capital investment that would be included and the scope of work that included common areas, auditoriums, and repair of historic sign. He said the tenant would make the facilities available at cost to the local community for community events, film festivals, and other events and anticipated reopening in the beginning of 2022. Mr. Neuendorf outlined the details that included a $500,000 grant to the landlord that included ARPA funds, a $300,000 forgivable loan, and additional public improvements in the future. Steve Mann, Mann Theaters, shared about the demise of the theater due to both neglect and COVID- 19 and the need for a complete makeover that included new luxury recliners, bar, new screens and sound equipment and other amenities. He said their goal was to create a destination location similar to St. Paul and Rochester and said the minimum investment of $1.5 million would assist with that goal then outlined how the other cities helped and the results. The Board asked questions and provided feedback. Motion made by Commissioner Staunton, seconded by Commissioner Anderson, to approval of the Term Sheet and seeks authorization to prepare contractual agreements with the tenant and landlord based on the approved Terms. Roll call: Ayes: Commissioners Anderson, Jackson, Staunton, and Chair Hovland Motion carried. VII.C. MOTION TO CLOSE SESSION AS PERMITTED BY M.S. 13D.05 SUBDIVISION 3 TO DISCUSS THE POTENTIAL SALE OF REAL PROPERTY LOCATED AT 5146 EDEN AVENUE - APPROVED Page 2 Minutes/HRA/October 14,2021 Motion made by Commissioner Staunton, seconded by Commissioner Jackson, to move to a closed session of the Edina HRA as permitted by MS. 13D.05 subdivision 3 to discuss the potential sale of real property located at 5 146 Eden Avenue. Roll call: Ayes: Commissioners Anderson, Jackson, Staunton, and Chair Hovland Motion carried, VII.D. CLOSED SESSION - POTENTIAL SALE OF REAL PROPERTY LOCATED AT S146 EDEN AVENUE Executive Director Neal said a developer had submitted a letter of intent to acquire a portion of the vacant site at 5 146 Eden Avenue, The Board discussed summary of the terms of the potential sale, VII.E. MOTION TO MOVE BACK INTO OPEN SESSION - POTENTIAL SALE OF REAL PROPERTY LOCATED AT S 146 EDEN AVENUE - APPROVED Motion made by Commissioner Staunton, seconded by Commissioner Jackson, to move back to open session from a closed session as permitted by M.S. 13D.0S Subdivision 3 to discuss the potential sale of real property located at 5 146 Eden Avenue. Roll call: Ayes: Commissioners Anderson, Jackson, Staunton, and Chair Hovland Motion carried. Vill. HRA COMMISSIONERS' COMMENTS — Received IX. EXECUTIVE DIRECTORS COMMENTS — Received X. ADJOURNMENT Motion made by Commissioner Staunton, seconded by Commissioner Jackson, to adjourn the meeting at 9:06 a.m. Roll call: Ayes: Commissioners Anderson, Jackson, Staunton, and Chair Hovland Motion carried. I , J Respectfully submitted, Neal, Executive D Page 3