HomeMy WebLinkAbout2022-04-28 HRA Regular Meeting MinutesMINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 28, 2022
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, Pierce, Staunton, and Chair
Hovland.
Absent: None.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED - AS PRESENTED
Commissioner Jackson made a motion, seconded by Commissioner Pierce,
approving the meeting agenda as presented.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
V. COMMUNITY COMMENT
No one appeared.
VI. CONSENT AGENDA ADOPTED - AS PRESENTED
Member Staunton made a motion, seconded by Member Pierce, approving the
consent agenda as presented:
VI.A. Approve Minutes of the Regular Meeting April 7, 2022
VI.B. Request for Purchase, 5146 Eden Avenue Environmental Services,
awarding the bid to the recommended low bidder, Braun Intertec,
$50,335
VI.C. Approve Housing Rehabilitation Program Status Report
Rollcall:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
VII. REPORTS/RECOMMENDATIONS
VII.A. MOTION TO CLOSE SESSION AS PERMITTED BY MN STATUTE 13D.05
SUBDIVISION 3 TO DISCUSS THE POTENTIAL SALE OF REAL PROPERTY
LOCATED AT 5146 EDEN AVENUE - APPROVED
Member Jackson made a motion, seconded by Member Pierce, to move to close
session as permitted by MN Statute 13D.05 subdivision 3 to discuss the potential
sale of real property located at 5146 Eden Avenue.
Rollcall:
AYE!s: Anderson, Jackson, Pierce, Staunton, and Hovland
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Minutes/HRA/April 28, 2022
Motion carried.
VII.B. MOTION TO MOVE TO OPEN SESSION - APPROVED
Member Jackson made a motion, seconded by Member Pierce, to move to open
session.
Rollcall:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
VII.C. 5146 EDEN AVENUE — CALL FOR PUBLIC HEARING TO CONSIDER SALE
OF REAL ESTATE FOR REDEVELOPMENT PURPOSES - APPROVED
Economic Development Manager Neuendorf said the Edina HRA had discussed the potential
sale of real estate at 5146 Eden Avenue on multiple locations. He said letters of intent had
been received from Jester Concepts to construct a new restaurant on the middle portion
of the site and from United Properties to develop a new housing cooperative on the
southern portion of the site. The northern most portion would be redeveloped as a public
park and a public hearing was recommended to be scheduled to better inform the Edina
HRA as they consider entering into sales contracts to redevelop the vacant site.
The Board asked questions and provided feedback.
Member Staunton made a motion, seconded by Member Anderson, to call for a
public hearing to consider sale of real estate for redevelopment purposes at
5146 Eden Avenue.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
VII.D. CONSIDERATION OF GAP FINANCING FOR THE FRED 11 LOCATED AT
4620 WEST 777H STREET - APPROVED
Affordable Housing Development Manager Hawkinson shared The Fred Phase II was located
at 4620 West 77th Street. The development was proposed by Solhem Development who
was seeking up to $9,450,000 in gap financing for a 276-unit multifamily development. Ten
percent of the units (28) would serve households with incomes at or below 50% of AMI and
the remaining 90% of the units would serve households with incomes between 70% and
100% of AMI. The development would comply with the new sustainability standards and
include the creation of an entrance off West 77th Street to the Fred Richards Park. Ms.
Hawkinson said staff was seeking feedback on the potential provision of financing to support
the development the outlined potential funding sources and the request in more detail. She
said staff was also seeking authorization to engage HRA's legal and financial advisors to
explore the needs, costs and benefits of this potential redevelopment project. She outlined
potential sources of the loan that included Pentagon Park pooled TIF funds plus SPARQ or
the Affordable Housing Trust Fund then reviewed public benefits of the project if
constructed.
Nick Anhut, Ehlers and Associates, spoke about the developer's constraints and level of
equity necessary to get over the gap which could not be raised privately then noted 17%
was lower than typically seen in a project and therefore would result in no return.
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Minutes/HRA/April 28, 2022
Curt Gunsbury, Solhem Development, spoke about the costs for third -party certification
for LEED development which was a financial hurdle they did not have in Phase I and would
result in the loss of many elements of the project. He said they were already ahead of LEED
elements and was working with staff on sustainability requirements and that funding for a
project like was required 20-30% in equity and the need to be realistic about the other costs
that included road access. He spoke about the 23% increase in construction costs, supply
chain issues and increased interest rates and the goal to repay housing trust loan that would
result in investors being rewarded.
Executive Director Neal shared comments about the importance of the park road
connection as current access was not sufficient.
The Board asked questions and provided feedback.
Member Jackson made a motion, seconded by Member Anderson, to give
preliminary approval to provide gap financing for the development of the Fred
II.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
VI11. HRA COMMISSIONERS' COMMENTS — Received
IX. EXECUTIVE DIRECTOR'S COMMENTS — Received
X. ADJOURNMENT
Motion made by Commissioner Staunton, seconded by Commissioner
Anderson, to adjourn the meeting at 9:02 a.m.
Roll call:
Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland
Motion carried.
Respectfully submitted, �
Scbtt`Neal, Executive gifector
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