HomeMy WebLinkAboutResolution No. 2018-05 - Frauenshuh as developer 5146 EdenHOUSING AND REDEVELOPMENT AUTHORITY
OF THE
CITY OF EDINA, MINNESOTA
RESOLUTION NO. 2018-05
NAMING FRAUENSHUH INC. AS PREFERRED DEVELOPER
FOR 5146 EDEN AVENUE
WHEREAS, the Edina Housing and Redevelopment Authority ("Authority") owns property
at 5146 Eden Avenue Edina, Minnesota 55436 which is currently vacant and available for
redevelopment purposes, and
WHEREAS, after discussing the future of the site for several years, in June 2014, the City of
Edina issued a Request for Interest to the real estate development community and considered
proposals from ten different development teams; and
WHEREAS, on November 3, 20 I 4, the City selected a team led by Frauenshuh Inc. to engage
in a Collaborative Development Planning process to identify a potential mixed-use redevelopment
of the site that would incorporate a combination of public and private uses compatible with the
guidance established in the 2012 Grandview Development Framework and 7 Guiding Principles;
and
WHEREAS, no specific action was taken as a result of this two-year Collaborative
Development Planning process but a great deal of public input was collected that is useful in
shaping the next stage of redevelopment planning; and
WHEREAS, on December 11 2017, the Authority entered into a Preliminary Development
Agreement ("Agreement") with Frauenshuh Inc. to work together to prepare a concept plan that
includes: district parking structure, affordable housing, market-rate housing and a new building
for the Edina Art Center and potentially a unique community-oriented commercial marketplace
such as a food hall; and
WHEREAS, the Authority and Frauenshuh, Inc. executed amendments to the Agreement on
March 15, 2018, April 12, 2018 and May 23, 2018; and
WHEREAS, the Authority and its financial and legal advisors have reviewed a variety of site
plan concepts to evaluate the potential feasibility of the required and preferred mixtures of uses
on the property as well as options for all public use and all private use; and
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0389
WHEREAS, an updated concept plan dated June 18, 2018 was provided by the Developer
that depicts a combination of market and affordable housing with structured private parking next
to a district parking structure topped with a 30,000 square foot future civic building and outdoor
public plaza adjoining the two uses; and
WHEREAS, these concept plans were used in the preparation of a summary of potential
business terms, which were reviewed by the Authority on June 18, 2018 and that allow the
Authority and the Developer to achieve their shared goals for the site; and
WHEREAS, in accordance with Paragraph 12 of the Agreement, the Developer has verbally
indicated their intention to enter into a Redevelopment Agreement for acquisition of the
Authority's property and construction of Phase I of the project, provided that mutually agreeable
terms have been identified; and
WHEREAS, with a mutually agreeable concept in place, additional work is necessary to
identify the complete terms of a real estate transaction, operating agreement and tax increment
agreement to be incorporated into a Redevelopment Agreement to be executed by the
Authority, City and Developer; and
WHEREAS, the City's policy regarding the use of Tax Increment Financing (TIF) will be
followed which requires the Developer to bear the City's out-of-pocket costs related to the
preparation of a TIF Redevelopment Agreement; and
WHEREAS, the Authority and Developer shall each be responsible for their respective legal
costs related to the sale and purchase of land; and
WHEREAS, it is understood that any required land use approvals required of the Developer
and the Authority, would be subject to review and approval through the City of Edina's standard
processes, including public meetings and public hearings with the Planning Commission and City
Council.
NOW, THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority directs
the following actions:
I . Pursuant to Paragraph 1(e) of the Agreement, as amended, the Authority has determined
that the Required Uses can be accommodated on the Property in a manner that is consistent
with the Grandview 7 Guiding Principles.
2. Pursuant to Paragraph 12 of the Agreement, the Authority has determined that the proposed
Development appears to be feasible, is desirable and the use of public financial assistance is
deemed appropriate.
3. Frauenshuh, Inc. is named as the preferred developer for the redevelopment of the site.
This designation will expire in 90 days if a mutually agreeable Term Sheet has not been completed,
and Developer shall be reimbursed in accordance with Exhibit C of the Agreement. This
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designation is conditioned on agreement by Frauenshuh, Inc. to an extension of the term of the
Agreement for 90 days.
4. Frauenshuh, Inc. is authorized to prepare and present concept plans consistent with the
June 18, 2018 concept plans, reflecting the Developer's and Authority's identified mix of uses for
the redevelopment on the Authority's property.
5. The Authority authorizes staff to work with Frauenshuh, Inc. on preparation of a Term Sheet
and a Redevelopment Agreement consistent with Paragraph 12 of the Agreement.
6. Staff is authorized to engage legal and financial professionals and other related services to
prepare a Term Sheet and complete the Redevelopment Agreement.
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ames H and, Chair
Dated: June 28, 2018
ATTEST:
Robert Stewart, S retary
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment
Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the
Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of June
28, 2018, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of , 2018.
Scott eal, E ecutiv- iTrect.r
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