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HomeMy WebLinkAbout2022-10-13 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 13, 2022 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:34 a.m. then explained the processes created for public comment. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, and Chair Hovland. Absent: Commissioners Pierce and 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: Anderson, Jackson, and 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: V.A. Approve Draft Minutes of the Regular Meeting of September 15, 2022 Rollcall: Ayes: Anderson, Jackson, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS VILA. APPROVAL OF MULTIFAMILY AFFORDABLE HOUSING PROPERTY TAX RELIEF AND ENERGY EFFICIENT GRANT PROGRAM VERSION 2022 — APPROVED Affordable Housing Development Manager Hawkinson stated in 2018 and 2019 staff proposed property tax relief program 4d to help preserve Naturally Occurring Affordable Housing (NOAH) apartments. She outlined associated plans adopted since 2018 and noted only one property, containing 23 units, signed on. With the passage of the Climate Action Plan and the associated requirement that apartment buildings must undergo energy bench marking, staff redesigned the program to help NOAH apartments achieve bench marking goals while also preserving the affordability of their buildings. She outlined preservation of NOAH properties in detail, housing cost -burdened renters, and said no additional funds were being sought at this time. She explained that 4d referred to low income rental classification of .0075% and that in order to qualify the City must provide financing to the rental housing property as evidenced by a recorded document then shared examples of how property taxes could be saved. Sustainability Manager Hancock spoke about the Resilient Homes Grant program that met CAP goals and reasons for the need that included a greater energy burden for households with lower incomes, less efficient than market rate housing, and that a large portion of properties were near Page 1 Minutes/HRA/October 13, 2022 transit routes and amenities. She outlined the goal to reduce energy burden for renters then listed eligible projects such as insulation, heating system replacements, and others. Ms. Hawkinson reviewed the financial information that included program cost, source and use of funds, and administration fee as conducted by the Center for Energy and Environment. She outlined expected impact that would preserve NOAH housing, retain the City's tax levy, and accelerate meeting CAP goals. The Council asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Anderson, to approve the Multifamily Affordable Housing Property Tax Relief and Energy Efficient Grant Program Version 2022 as presented. Roll call: Ayes: Anderson, Jackson, and Hovland Motion carried. VII.B. $150,000 MATCHING GRANT TO EDINA HOUSING FOUNDATION FOR FIRST GENERATION DOWN PAYMENT ASSISTANCE PROGRAM — APPROVED Ms. Hawkinson stated the Edina Housing Foundation was seeking a $150,000 grant to match the $150,000 they committed to the First Generation down payment assistance program. Since the program's adoption in November 2021, seven home buyers have benefited from these funds which augment the Come Home 2 Edina program. As the First Generation loan was forgiven, and the Foundation did not have a revenue stream, staff was seeking assistance from the HRA in order to assist twice as many home buyers. She reviewed loan data in detail and said five properties had taken advantage of the program and recommended the match be granted. The Council asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Anderson, to approve a $150,000 grant to the Edina Housing Foundation for their First Generation Down Payment Assistance Program as presented. Roll call: Ayes: Anderson, Jackson, and Hovland Motion carried. VII.C. APPROVE LOAN TERMS FOR EDINA INNOVATION LAB — APPROVED Economic Development Manager Neuendorf stated this item pertained to the renovation and re - occupancy of vacant commercial space located at 7201 Metro Avenue. The Edina Chamber of Commerce intended to the lease the space and use it to establish the Edina Innovation Lab. This proposal was consistent with goals expressed in the 2015 Vision Edina and the 2018 Comprehensive Plan. He said staff prepared a proposal to which the Edina Chamber of Commerce was agreeable to the terms. He outlined the need for incubator space for small businesses to thrive and outlined proposed funds through SPARC and said the Edina Chamber of Commerce was conducting a pilot program then outlined the capital fund for space and operation funds. He said the Chamber had a letter of intent in preparation for a lease then reviewed a summary of loan terms for a seven-year lease minimum and loan amount not to exceed $800,000 at 2% simple interest. Mr. Neuendorf said staff was recommending up to $200,000 loan forgiveness as this was a program needed in the City. Lori Syverson, Executive Director Edina Chamber of Commerce, shared their review of several models which was modified to include an accelerator program but was difficult to sustain revenue - generation model long-term and explained how the new program was intended to help businesses Page 2 Minutes/HRA/October 13, 2022 that survived the pandemic take the next step. She spoke about how they intend to expand the program to leadership and purpose in order to raise funds and continue to move forward. Paul Mooty, Edina Chamber of Commerce Board of Directors, said this program was already occurring and that others wanted to participate and said they had reviewed the program and was confident it would work and help businesses grow. He spoke about connections for businesses and sponsorships and how the program would be financially sound and result in the cohort model so the program would be self-sustaining in year two. The Council asked questions and provided feedback. Motion by Commissioner Anderson to move to continue consideration to authorize staff and engage legal advisor to prepare Loan Agreement with the Edina Chamber of Commerce based on the recommended terms. Motion died for lack of a second. Motion by Commissioner Jackson, seconded by Commissioner Anderson, to authorize staff and engage legal advisor to prepare Loan Agreement with the Edina Chamber of Commerce based on the recommended terms. Roll call: Ayes: Anderson, Jackson, and Hovland Motion carried. VIII. HRA COMMISSIONERS' COMMENTS — Received IX. EXECUTIVE DIRECTOR'S COMMENTS — Received IXA. OPEN TO BUSINESS MID -YEAR REPORT X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Anderson, to adjourn the meeting at 9:24 a.m. Roll call: Ayes: Anderson, Jackson, and Hovland Motion carried. Respectfully submitted, Ott Neal, Executive Director Page 3