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Home My WebLink About2022-03-03 HRA Regular Meeting MinutesOF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY MARCH 3, 2022 7:30 A.M. 1. CALL TO ORDER Acting Chair Anderson called the meeting to order at 7:40 a.m. then explained the processes created for public comment. 11. ROLLCALL Answering rollcall were Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson. Absent: Chair Hovland. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED — AS PRESENTED Motion by Commissioner Staunton, seconded by Commissioner Jackson, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED — AS AMENDED Member Jackson made a motion, seconded by Member Staunton, approving the consent agenda as amended, removing VI.D. Resolution 2022-OS Establishing the 70th and France Tax Increment Financing District and Approving a Tax Increment Financing Plan Therefor: VI.A. Approve Minutes of the Regular Meeting February 10, 2022 VI.B. Approve Payment of Claims for HRA Check Registers dated January 2022 totaling $10,221.08 and February 2022 totaling $449,304.80 VI.C. Execute and Record Edina Flats LLC — Certificate of Completion VI.D. Resolution 2022-05 Establishing the 70th and France Tax increment Finan :.. District and Approving a Tax increment Financing Plan Therefor VI.E. Approve Edina Market Street, LLC: Subordination Agreement Rollcall: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA VI.D. RESOLUTION 2022-05 ESTABLISHING THE 70TH AND FRANCE TAX INCREMENT FINANCING DISTRICT AND APPROVING A TAX INCREMENT FINANCING PLAN THEREFOR — ADOPTED The Commission expressed concern about how the project had changed over time and no longer included an affordability component but instead replaced the potential for affordable housing with a parking ramp then noted the developer had provided over $3 million to the City's affordable housing fund in lieu of constructing affordable housing units. Page 1 Minutes/HRA/March 3, 2022 Member Jackson made a motion to adopt Resolution 2022-05 Establishing the 70th and France Tax Increment Financing District and Approving a Tax Increment Financing Plan Therefor. Member Staunton seconded the motion. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton Nay: Acting Chair Anderson Motion carried. VII. PUBLIC HEARINGS - Affidavits of Notice presented and ordered placed on file. VII.A. RESOLUTION NO. 2022-04 AUTHORIZING THE SALE OF LAND TO WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST— CONTINUED TO APRIL 7, 2022 Affordable Housing Manager Hawkinson said that in 2021 the HRA acquired 425 Jefferson Avenue to benefit the neighborhood and potentially provide affordable housing for the community. The property was acquired because it was a nuisance and was vacant. West Hennepin Affordable Housing Land Trust ("WHAHLT") submitted a letter of interest to acquire the property for $1.00 and it is their estimation that the property would need approximately $365,000 worth of rehabilitation if feasible, otherwise it would need to be demolished and replaced with a modest affordable home. She said WHAHLT was working to keep their expenses low so they could sell the house to income eligible home owners and place the land into a land trust to maintain the house as affordable for 99- years. She reviewed the criteria for this action and said the Planning Commission reviewed the proposal at their January 26 meeting and deemed that plans to sell the house to WHAHLT was in compliance with the Comprehensive Plan and was recommended for approval. Acting Chair Anderson opened the public hearing at 7:51 p.m. Public Testimony No one appeared. The Board asked questions and provided feedback. Member Jackson made a motion to close the public hearing at noon on March 28, 2022, and continue action to consider HRA Resolution 2022-04 authorizing sale of land to West Hennepin Affordable Housing Land Trust to the April 7, 2022, HRA meeting. Member Pierce seconded the motion. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. Vlll. REPORTS/RECOMMENDATIONS VIII.A. REDEVELOPMENT AGREEMENT TERM SHEET 4040 WEST 70TH STREET — APPROVED Ms. Hawkinson said Cornelia View Apartments, located at 4040 West 70th Street, was a proposed age -restricted 100% affordable housing project to be developed by Ecumen and Lupe Development Partners. The need for age restricted affordable housing was confirmed in the 2020 Housing Market Study completed by Maxfield Research and in City's Quality of Life surveys. Maxfield estimated that 1,600 new units of senior housing was needed by 2030 largely due to Edina's and the State's aging population. She spoke about the large percentage of calls received from people seeking affordable housing who were seniors who want to age in the community and that Cornelia View Apartments would bring 118 affordable units to Edina thus expanding housing choices for seniors. She reviewed the development funding and proposed term sheet in detail and said the Combined Housing and Redevelopment Authority Funding Contribution would not exceed $2,839,901. Ms. Hawkinson said marketing had not yet begun but there was already great interest in the project of which Page 2 Minutes/HRA/March 3, 2022 approximately 74% were current Edina residents. She shared about the unit mix and the 99 years of confirmed affordability then reviewed proposed sources of financing that would include a pay -go note of tax increment financing through Southdale pooled TIF funds. She reviewed the recommended terms and said development controls gap was for construction costs and not operational costs then spoke to the public benefits that included the first affordable age -restricted housing option in Edina in decades. The Board asked questions and provided feedback. Nick Anhut, Ehlers and Associates, shared the value of the property would increase to approximately $20.5 million and noted the site was acquired for $3.6 million. Steve Minn, Lupe Development, thanked staff for their work on this project and the importance of a 99-year affordability lease. He said their financing partners were enthusiastic about the project then shared more about project financing and how 30% of any excess cash flow would return to the Foundation for ground lease payments towards their contribution of land. Member Jackson made a motion, seconded by Member Pierce, to approve the term sheet and authorize staff to work with legal and financial advisors to prepare a binding redevelopment agreement based on the approved terms for 4040 West 70th Street. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. VIII.B. MOTION TO CLOSE SESSION — POTENTIAL SALE OF REAL PROPERTY LOCATED AT 5146 EDEN AVENUE — APPROVED Acting Chair Anderson said this item pertained to the potential sale of portions of the vacant property to be used as a senior housing cooperative and restaurant with indoor and outdoor seating. He said the HRA's land broker, Frauenshuh Companies, would update the HRA Board on negotiations with United Properties and Jester Concepts and that due to the sensitive nature of real estate negotiations, this discussion would take place in closed section as permitted by Minnesota Statute 13D.05 subdivision 3. No action will take place during this closed meeting. Member Staunton made a motion, seconded by Member Pierce, to move to closed session as permitted by MS. 13D.05 subdivision 3 to discuss the potential sale of real property located at 5146 Eden Avenue. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. VIII.C. MOTION TO MOVE TO OPEN SESSION — APPROVED Member Staunton made a motion, seconded by Member Pierce, to move to open session. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. VIII.D. POTENTIAL SALE OF PROPERTY LOCATED AT 5146 EDEN AVENUE —APPROVED The Commission summarized discussions from the closed session and directed staff to authorize staff and the City Attorney to prepare purchase agreements with United Properties and Jester Concepts consistent with the letters of intent subject to further investigation of data as it might apply to the sites. Page 3 Minutes/HRA/March 3, 2022 IX EXECUTIVE DIRECTOR'S COMMENTS — Received IX.A. GRANDVIEW PEDESTRIAN BRIDGE — DESIGN UPDATE X. HRA COMMISSIONERS' COMMENTS — Received XI. ADJOURNMENT Motion made by Commissioner Staunton, seconded by Commissioner Pierce, to adjourn the meeting at 9:31 a.m. Roll call: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. Respectfully submitted, Scott Neal, Ekkutive"Qil/ector Page 4