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HomeMy WebLinkAbout2020-01-16 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota Council Chambers, Edina City Hall Thursday, January 16, 2020 7:30 AM I.Call to Order II.Roll Call III.Pledge of Allegiance IV.Approval of Meeting Agenda V.Community Comment During "Community Comment," the Edina Housing and Redevelopment Authority (HRA) will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the HRA or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Chair may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on today's agenda may not be addressed during Community Comment. Individuals should not expect the Chair or Commissioners to respond to their comments today. Instead the Commissioners might refer the matter to sta. for consideration at a future meeting. VI.Adoption of Consent Agenda All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Commissioner of the HRA. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Commissioners present to approve.) A.Minutes: Draft Minutes of Special Meeting Dec. 3 and Regular Meeting Dec. 12, 2019 B.Resolution No. 2020-01: Designating O:cial Newspaper C.Resolution No. 2020-02: Designating O:cial Depositories D.License Agreement with United States Postal Service VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.Election of O:cers B.Appointment of the Executive Director of the HRA C.HRA 2020 Meeting Dates and Location D.Year in Review 2019 VIII.Correspondence A.Correspondence IX.HRA Commissioners' Comments X.Executive Director's Comments A.HRA Bylaws XI.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need assistance in the way of hearing ampli@cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: January 16, 2020 Agenda Item #: VI.A. To:Chair & Commissioners of the Edina HRA Item Type: Minutes From:Jennifer Garske, Executive Assistant Item Activity: Subject:Minutes: Draft Minutes of Special Meeting Dec. 3 and Regular Meeting Dec. 12, 2019 Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve the special meeting minutes of Dec. 3 and the regular meeting minutes of Dec. 12, 2019. INTRODUCTION: See attached meeting minutes of Dec. 3 and 12, 2019. ATTACHMENTS: Description Minutes: HRA, Dec. 3, 2019 Minutes: HRA, Dec. 12, 2019 Page 1 MINUTES OF THE SPECIAL MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 3, 2019 IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 12:18 a.m. II. ROLL CALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton and Chair Hovland. Absent: None. III. APPROVAL OF MEETING AGENDA – AS PRESENTED Motion made by Commissioner Staunton seconded by Commissioner Fischer approving the meeting agenda as presented. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. IV. PUBLIC HEARINGS IV.A. RESOLUTION NO. 2019-11, SETTING 2020 TAX LEVY AND ADOPTING 2020 OPERATING BUDGET – ADOPTED Executive Director Neal stated the Board was asked to approve Resolution No. 2019-11 setting the 2020 tax levy and adopting the 2020 operating budget. He explained the HRA was a separate taxing authority formed by the City Council in 1974 and the purpose of the levy was to pay a portion of the administrative expenses and other economic initiatives necessary to operate the HRA including the City's renewed efforts to create affordable housing. Historically those expenses had been paid using TIF funds and continuation of the plan to reduce the reliance on TIF funds. He outlined the proposed levy for 2020 showed an increase from $160,000 in 2019 to $192,000 and was the same as the preliminary amount approved by the HRA on September 26. Chair Hovland opened the public hearing at 12:15 a.m. Public Testimony No one appeared. Member Brindle made a motion, seconded by Member Anderson, to close the public hearing. Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. Member Brindle introduced and moved adoption of Resolution No. 2019-11, setting the public hearing on December 17, 2019 to consider adopting the budget and establishing the tax levy payable in 2020 as proposed. Member Staunton seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. V. ADJOURNMENT Chair Hovland adjourned the special HRA meeting at 12:21 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 12, 2019 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:30 a.m. II. PLEDGE OF ALLEGIANCE III. ROLL CALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton and Chair Hovland. Absent: None. IV. APPROVAL OF MEETING AGENDA – AS AMENDED Motion made by Commissioner Brindle, seconded by Commissioner Anderson, approving the meeting agenda as amended, removing Item VII.C. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. APPROVAL OF CONSENT AGENDA – AS PRESENTED Motion made by Commissioner Anderson seconded by Commissioner Brindle approving the consent agenda. VI.A. Minutes of the Regular Meeting of November 14, 2019 VI.B. Approve payment of claims HRA check register from November 14, 2019 through December 5, 2019, totaling $141,204.84 Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. RESOLUTION NO. 2019-10, ESTABLISH AMUNDSON AVENUE TAX INCREMENT FINANCING DISTRICT AND MODIFY SOUTHDALE 2 TAX INCREMENT FINANCING PLAN – ADOPTED Executive Director Neal explained how the following two items were very similar but separated to allow for consideration of each on their own merits. Affordable Housing Development Manager Hawkinson stated this item pertained to the creation of a new Tax Increment Financing District to support the redevelopment of property at 7075-7079 Amundson Avenue including the creation of approximately 62 units of affordable housing. This item also included a modification to the plan for the existing Southdale 2 Tax Increment Financing District to recognize the new TIF District. In July 2018 the Edina Housing Foundation acquired the Waldorf-Nevens dry cleaning site at 7075-7079 Amundson Avenue for the purpose of assisting with the creation of a multifamily affordable housing development. She explained the Amundson Avenue background and intent to use Southdale 2 TIF pooled funds to help facilitate affordability, then she reviewed loan term highlights for a $3.8 million loan to acquire the property at zero percent interest for two years with two one-year extensions. Ms. Hawkinson explained through a competitive Request for Proposal process, the Foundation selected MWF Properties, who was proposing a 100 percent workforce housing development that contained 62 one-, two- and three-bedroom units with underground parking, first-floor patios and a connection to the bike trail. The proposed rents will serve households with incomes between 30 and 70 percent of the Area Median Income. On Minutes/HRA/December 12, 2019 2 July 25, 2019 the Housing and Redevelopment Authority agreed to acquire the parcel from the Foundation and to sell it to MWF Properties at a discount. The HRA approved acquiring the parcel for $1,300,000 using Southdale 2 TIF funds and sell to MWF for $600,000. At the November 14 meeting staff presented information to the Board about the potential acquisition of property located at 4040 W. 70th Street. Since both projects required an amendment to the Southdale 2 TIF plan, the HRA thought it made sense to combine the approvals. Upon further staff and consultant discussion, all thought it best to separate the approvals by address since the Planning Commission had not had the opportunity to comment on the Comprehensive Plan aspect of the 4040 W. 70th Street site. She explained the purpose of the Southdale 2 TIF District established in 2012 and subsequent amendments and how this special legislation enabled financing the acquisition of 7075-7079 Amundson Avenue. In order to use the Southdale TIF 2 Special Legislation Funds, a new Special Legislation Housing TIF District must be created. Affordable Housing projects assisted by the City’s special legislation were required to provide a minimum of 20 percent of units designated for occupancy by tenants at or below 60 percent Area Median Income for a period of at least 25 years. Ms. Hawkinson explained that Ehlers Associates, the City’s public finance advisor, had prepared a Tax Increment Financing Plan to establish the parameters of the new TIF District, which were reviewed by the City’s special counsel for redevelopment matters to ensure compliance with state law and that implementation of this resolution was contingent upon final approval by the City Council after a public hearing scheduled for December 17, 2019. The HRA asked about taking pooled funds from Southdale TIF and the capture of 3.46 percent of tax capacity before or after acquisition of these two properties. Nick Anhut, Ehlers and Associates, said the action eluded to the captured value with the TIF district and did not reflect a potential project for the 4040 site. The HRA asked if the Amundson project reflected collected increment. Ms. Hawkinson explained we could collect increment on the Amundson project and some desire to do so for bike connections at the south of property but that Amundson Flats did not need increment, just pooled funds. Mr. Anhut explained options from the Southdale II project to assist a qualified housing project once a TIF district was created and noted the action created the tool which could be decertified before any tax collections were made and that it was wholly up to the Board on whether taxes were collected and placed into a fund or put back on the general tax rolls. The HRA said this action was conservative and provided the most options for choices later with respect to the 3.46 percent tax capacity, then clarified in order to use pooled funds the TIF district had to be created but not collected. Mr. Anhut said there was no commitment to additional funds other than the acquisition and explained the project had to qualify for the legislation, be vetted and certified with the State but did not need to remain active for the full 25 years as long as the property owner maintained the affordability component. The HRA clarified the pay-as-you-go method was not necessary and the HRA was not borrowing but had funds on hand through the Southdale II TIF district, then spoke about length of the district, which was arbitrary. They clarified that in order to do the public realm component adjacent to the Amundson site, the City would have to capture increment from pooled funds. Mr. Anhut explained the affordability component was 25 years but the district could only last 20 years and would be created for the full amount, with collection based on the project at hand then noted the HRA could certify it for acquisition and development only and never collect any funds. Member Fischer moved to adopt Resolution No. 2019-10 establishing the Amundson Avenue Tax Increment Financing District and modify Southdale II Tax Increment Financing Plan. Member Anderson seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. VII.B. RESOLUTION NO. 2019-12, MODIFY THE TAX INCREMENTS FINANCING PLAN FOR THE SOUTHDALE 2 TAX INCREMENT FINANCING PLAN - ADOPTED Ms. Hawkinson stated East Edina Housing Foundation had a Purchase Agreement to acquire 4040 W. 70th St. and was seeking a loan from the HRA. In order to use Southdale 2 TIF pooled funds to acquire property, the Minutes/HRA/December 12, 2019 3 Southdale 2 Tax Increment Financing District must be modified and two actions were required: 1) approval to modify the TIF Plan and 2) review and approval of the Term Sheet for the loan. In order to control the land and therefore control the development process and outcomes, the Edina Housing Foundation entered into a Purchase Agreement with ACA International Enterprises, Inc. for the acquisition of 4040 W. 70th St. on December 3, 2019. The Foundation had 60 days from the signing of a Purchase Agreement to close on the property and was seeking approval to borrow Southdale 2 Tax Increment Financing (TIF) pooled funds to acquire this parcel. If property acquisition was chosen, TIF Statutes required the HRA designate the property for acquisition within its TIF Plan. The formation of a new TIF District required consideration of the project’s cost, conformity with land use regulations, impact to the tax base, infrastructure needs and other fiscal implications. Therefore, rather than creating a new TIF District at this time, staff was seeking to modify the Southdale 2 TIF Plan to designate the property and the HRA’s intent to use TIF to purchase the site, which would allow the HRA to use Southdale 2 TIF funds to acquire the site and explore development opportunities. There were no proposed changes to the Southdale 2 TIF District boundaries, duration or total budget. The HRA discussed the need for two motions then thanked members of the Housing Foundation for their work. Member Brindle moved to adopt Resolution No. 2019-12 adopting a modification to the Tax Increment Financing Plan for the Southdale 2 Tax Increment Financing District and accept the Term Sheet for the West 70th Street property. Member Staunton seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. VIII. CORRESPONDENCE – NONE IX. HRA COMMISSIONERS’ COMMENTS – RECEIVED X. EXECUTIVE DIRECTOR’S COMMENTS X.A. PROJECT UPDATE – RECEIVED Economic Development Manager Neuendorf shared an update on several housing and redevelopment activities the HRA was involved with and monitored in the City. X.B. APPROVE 2020 HRA MEETING SCHEDULE – APPROVED Motion made by Commissioner Fischer, seconded by Commissioner Brindle to approve the twice- monthly HRA meeting schedule as presented for 2020. Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. XI. ADJOURNMENT Chair Hovland adjourned the HRA meeting at 8:32 a.m. Respectfully submitted, ___________________________________________ Scott Neal, Executive Director Date: January 16, 2020 Agenda Item #: VI.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Jennifer Garske, Executive Assistant Item Activity: Subject:Resolution No. 2020-01: Designating Official Newspaper Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Adopt Resolution No. 2020-01 designating the Edina Sun-Current as the official newspaper for the Housing and Redevelopment Authority (HRA) for 2020. INTRODUCTION: Staff recommends Council designate the Edina Sun Current as the official newspaper of the HRA for 2020. The Sun-Current rates for public notices for 2020 is the same as 2019. All published public notices are posted on the Sun-Current's website www.current.mnsun.com, at no additional charge. ATTACHMENTS: Description Resolution No. 2020-01: Designating Official Newspaper RESOLUTION NO. 2020-01 DESIGNATING OFFICIAL NEWSPAPER BE IT RESOLVED by the Edina Housing & Redevelopment Authority of the City of Edina, Minnesota, that the Edina Sun-Current is hereby designated as the Official Newspaper for the Edina Housing & Redevelopment Authority for the year 2020. Passed and adopted this 16th day of January 2020. Attest: Michael Fischer, Secretary James B. Hovland, Chair 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 & Redevelopment Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing & Redevelopment Authority at its Regular Meeting of January 31, 2019, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. Executive Director Date: January 16, 2020 Agenda Item #: VI.C. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Jennifer Garske, Executive Assistant Item Activity: Subject:Resolution No. 2020-02: Designating Official Depositories Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Adopt Resolution No. 2020-02 designating official depositories for the Housing and Redevelopment Authority (HRA) for 2020. INTRODUCTION: See Resolution No. 2020-02 designating official depositories for 2020. ATTACHMENTS: Description Resolution No. 2020-02: Designating Official Depositories RESOLUTION NO. 2020-02 DESIGNATING OFFICIAL DEPOSITORIES BE IT RESOLVED, that U.S. Bank, Wells Fargo Bank and Tradition Capital Bank, are hereby authorized to do banking business in Minnesota, be and are hereby designated as Official Depositories for the Public Funds of the Edina Housing and Redevelopment Authority, City of Edina, County of Hennepin, Minnesota until January 1, 2021. Dated: January 16, 2020 Attest: Michael Fischer, Secretary James B. Hovland, Chair 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 was duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of January 31, 2019, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ______________ day of ___________________, ____________. Executive Director Date: January 16, 2020 Agenda Item #: VI.D. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:License Agreement with United States Postal Service Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve License Agreement with United States Postal Service and authorize Executive Director to implement the Agreement. INTRODUCTION: The City of Edina has issued parking permits to employees who use the public parking facilities at 50th & France for many years. The permit system was instituted at the request of property owners in an effort to best manage the public facilities to the mutual benefit of all businesses in the area. The United States Postal Service is unable to procur annual or monthly parking permits for their employees and instead has requested a long-term license for their employees to park in the North Ramp. The Housing and Redevelopment Authority is party to this license because the HRA owns these particular public facilities. The license agreement has been prepared by USPS and City staff with review by the Edina City Attorney. It will be effective January 2020 to November 2021 when the USPS lease expires. When implemented several beneficial outcomes are anticipated: all USPS employees will be able to more easily comply with parking regulations USPS employees will park in stalls that are less convenient to customers parking revenue will increase establish a trial arrangement that can be reviewed and if successful, considered for other businesses in the future Staff recommends that the License Agreement be approved. ATTACHMENTS: Description USPS License Agreement License Agreement MINNEAPOLIS -EDINA NORTH PARKING RAMP(266314-005) 3940 MARKET ST, EDINA MN 55424-1289 License License1 Sept 2006 Facility Name/Location County: Hennepin Parking Lease: EZ0000552807 MINNEAPOLIS -EDINA NORTH PARKING RAMP(266314- 005) 3940 MARKET ST, EDINA MN 55424-1289 This LICENSE, made and entered into by and between EDINA HOUSING AND REDEVELOPMENT AUTHORITY, hereinafter called the Licensor, and the United States Postal Service, hereinafter called the Postal Service: In consideration of the mutual promises set forth and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties covenant and agree as follows: 1. LOCATION: The Licensor hereby leases to the Postal Service and the Postal Services leases from the Licensor, for the provision of space by the Licensor to the Postal Service for (parking), in accordance with the terms and conditions described herein, and contained in the General Conditions to this License, the following described premises: A non-exclusive license to use 42 parking stalls located in portions of the North Parking Ramp located at 3940 Market Street ("Property") and depicted on Exhibit A (the "Licensed Area") for (parking of employees of the Postal Service facility located at 3948 Market Street in Edina) 2.TERM: Fixed term. The term beginning 02/01/2020 and ending 11/30/2021 for a total of 1 year, 10 months. 3.PAYMENTS: $12,600.00 from 02/01/2020 to 12/31/2020 ($1,050 monthly) $15,120.00 from 01/01/2021 to 11/30/2021 ($1,260 monthly) payable in equal installments at the end of each calendar month. Rent for a part month will be prorated. 4.UTILITIES AND SERVICES: Licensor agrees to furnish and provide the following utilities and services: ALL ELECTRICAL AND LIGHTING NOT INCLUDING ELECTRICAL VEHICLE CHARGING STATIONS. 5. OTHER PROVISIONS: By acceptance of this License, the parties agree to abide by the attached General Conditions and the following additional provisions: See Addendum 6.TERMINATION: The Postal Service or the Licensor may terminate this license by giving 30 days written notice to the other party. License License1 Sept 2006 LICENSOR(S) ______________________________________ ___________________________________ Print Licensor’s Name and Title Signature ______________________________________ Tax ID of Licensor ______________________________________ _____________________________________ Address – Number and Street e-mail address _____________________________________ Edina, MN 55424-1330 ______________________________________ Address City-- , State and ZIP+4 FAX Number ______________________________________ _____________________________________ Telephone Number(s) ______________________________________ _____________________________________ Witness to Licensor Witness to Licensor UNITED STATES POSTAL SERVICE ______________________________________ _____________________________________ Print Name and Title of Contracting Officer Signature of Contracting Officer _______________________________________________________________________________________________ Print Address of Contracting Officer _____________________________________ Witness to Contracting Officer XXX-XX-5118 bneuendorf@edinaMN.gov LOWE, JOSEPH (952) 826-0407 Edina Housing and Redevelopment Authority Addendum 1 Facility Name/Location MINNEAPOLIS – EDINA NORTH PARKING RAMP (266314-005) 3940 MARKET ST, EDINA MN 55424-1289 County: Hennepin Lease: EZ0000552807 If there is any conflict or ambiguity between any items of the Lease or this Addendum, the terms of this Addendum shall control. Section 7. A. Paragraph 4 of the General Conditions to USPS License is deleted in its entirety and is replaced with the following: Alterations: Postal Service shall not materially alter, change or damage the Licensed Area, including the existing structure and its electrical and plumbing systems, nor shall Postal Service place any other structures within the License Area, without the prior written consent of Licensor, which consent may be withheld at the Licensor's sole discretion. Signage: Postal Service, at its sole cost, shall be responsible for installation of signage that identifies the Licensed Area. The design of the signage shall be subject to the review and consent of the Licensor, which will not be unreasonably withheld. Any new signage shall be of the same size (12 inches by 18 inches) and in the same locations (adhered to concrete columns and exterior walls) as existing signage. Postal Service shall exercise care in removing any existing sign and shall return all existing signage in good condition, ordinary wear and tear and circumstances beyond Postal Service control excepted, to the Licensor upon removal. These new signs shall remain the property of Postal Service and shall be removed by Postal Service at the termination of this Agreement. If not removed within 5 businesses of the termination, the signs shall be considered abandoned and may be removed and discarded by the Licensor. The actual costs of removal of any abandoned signs shall be reimbursed by Postal Service so long as Licensor submits an invoice and supporting documentation for such costs within sixty days of the termination of the License. B. This Agreement creates a license only and the Postal Service acknowledges that the Postal Service does not and shall not claim at any time any interest or estate of any kind or extent whatsoever in the License Area or the Property by virtue of this License or the Postal Services' use of the License Area under this Agreement. The Licensor reserves the right to access and use the License Area in connection with normal maintenance work and cleaning being done on the Property from time to time. If maintenance to the Licensed Area prevents exclusive use of all or a portion of the Licensed Area, the Licensor shall provide temporary replacement stalls or shall terminate this Agreement in accordance with Section 6. C. Indemnity: The Postal Service hereby agrees to save harmless and indemnify the licensor from all claims, loss, damage, actions, causes of actions, expense, and/or liability resulting from the use of said property by the Postal Service whenever such claim, loss, damage, actions, causes of actions, expense and/or liability arises from the negligent or wrongful act or omission by a Postal Service employee while acting within the scope of his or her employment, under circumstances where the Postal Service, if a private person, would be liable in accordance with the law of the place where the negligent or wrongful act or omission occurred. Notwithstanding the above, the Postal Service is under no obligation to save harmless and indemnify the licensor where any negligent or wrongful act or omission by licensor, its employees or agents, in any way causes or contributes to the claim, loss, damage, actions, causes of actions, expense and/or liability. D. Hazardous Substances: Neither the Postal Service nor any agent or employee of Postal Service shall store, use, dispose or otherwise place upon, under or about the License Area any "hazardous materials," Addendum 2 "hazardous substances," "pollutants," "hazardous wastes" or "contaminants" as the same are defined by any applicable state or federal law, rule and regulation. E. Parking Restrictions: No vehicles shall be parked overnight in the Licensed Area. No vehicle shall undergo repair or maintenance while parked in the Licensed Area. F. Parking Permits: All vehicles parked pursuant to this License must display a valid parking permit issued by the City of Edina, which Postal Service employees can obtain by submitting vehicle information in a standard form acceptable to the City of Edina. General Conditions to USPS License licensegc October 2006 GC-1 1. CHOICE OF LAW This License shall be governed by federal law. 2. ASSIGNMENTS a. The terms and provisions of this License and the conditions herein are binding on the Licensor and the Postal Service, and all heirs, executors, administrators, successors, and assigns. b. Assignment of this contract or any interest in this contract other than in accordance with the provisions of this clause will be grounds for termination of the contract for default at the option of the Postal Service. c. Nothing contained herein shall be construed so as to prohibit transfer of ownership of the demised premises, provided that such transfer is subject to this License agreement. 3. APPLICABLE CODES AND ORDINANCES The Licensor, as part of the rental consideration, agrees to comply with all codes and ordinances applicable to the ownership and operation of the structure in which the rented space is situated and to obtain all necessary permits and related items at no cost to the Postal Service. 4. ALTERATIONS The Postal Service shall have the right to make alterations, attach fixtures and erect additions, structures or signs in or upon the premises hereby leased (provided such alterations, additions, structures, or signs shall not be detrimental to or inconsistent with the rights granted to other tenants on the property or in the building in which said premises are located); which fixtures, additions or structures so placed in, upon or attached to the said premises shall be and remain the property of the Postal Service and may be removed or otherwise disposed of by the Postal Service. 5. CLAIMS AND DISPUTES This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 601-13), (the Act). Except as provided for in the Act, all disputes arising under or relating to this contract must be resolved under the provisions of the Act and implementing regulations of the Postal Service. 6. HAZARDOUS/TOXIC CONDITIONS By execution of this License, the Licensor certifies: a. the property and improvements are free of all contamination from petroleum products or any hazardous/toxic or unhealthy materials or substances, including friable asbestos materials, as defined by applicable State or Federal law; and b. it has not received, nor is it aware of, any notification or other communication from any governmental or regulatory entity concerning any environmental condition, or violation or potential violation of any local, state, or federal environmental statute or regulation, existing at or adjacent to the property. 7. FACILITIES NONDISCRIMINATION a. By executing this License, the Licensor certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform services at any location under its control where segregated facilities are maintained. b. The Licensor will insert this clause in all contracts or purchase orders under this License unless exempted by Secretary of Labor rules, regulations, or orders issued under Executive Order 11246. General Conditions to USPS License licensegc October 2006 GC-2 8. CLAUSES REQUIRED TO IMPLEMENT POLICIES, STATUTES, OR EXECUTIVE ORDERS The following clauses are incorporated in this Lease by reference. The text of incorporated terms may be found in the Postal Service’s Supplying Principles and Practices, accessible at www.usps.com/publications. Clause 1-5, Gratuities or Gifts (March 2006) Clause 1-6, Contingent Fees (March 2006) Clause B-25, Advertising of Contract Awards (March 2006) Note: For purposes of applying the above standard clauses to this License, the terms “supplier,” “contractor,” and “lessor” are synonymous with “Licensor,” and the term “contract” is synonymous with “License.” Exhibit A Facility Name/Location Hennepin Minneapolis – Edina North Parking Ramp (266314 – 005) 3940 Market Street, Edina MN 55424 - 1289 2020 Parking Permit Application - PREMIUM The City of Edina owns and operates parking facilities at 50th and France for shared use by customers and employees. Parking permits are available for employees of businesses located in the Edina portion of 50th and France who choose to park in the City-owned facilities. A permit allows an employee to park in portions of the North and South Ramps in excess of the posted time limits. Parking stalls are available on a first-come-first-served basis. Issuance of a parking permit does not guarantee or reserve a space. INSTRUCTIONS 1)Submit completed application form. 2)Demonstrate proof of employment (business card, letter, pay stub, etc.). 3)Include full payment (cash, check or credit card). Make checks payable to “City of Edina”. Preferred Location: (choose one) Second Permit: $10 plus tax South Ramp North Ramp $10.75 (includes tax) Premium Permit: $300 per year plus 7.525% MN tax; pro-rated at $25 per month plus tax after February 1. $322.58 annually (includes tax) $___________ for _____ months Last Name First Name License Plate Number Vehicle Make & Model License Plate Number Second Vehicle Make & Model Name of Edina Business where Currently Employed Business Address Supervisor’s Name Employee Email Address It is illegal to provide false information on this form. THE MINNESOTA DATA PRACTICES ACT requires that we inform you of your rights about the private data we are requesting on this form. Private data is available to you, but not to the public. Under M.S. 13.37 Subd.1.(d), residence address, home and work telephone numbers, work hours, place of employment and location of parking space are nonpublic data. We are requesting this data to provide you with a parking permit. You may choose to not provide some or all of the requested data; however, this may cause your request to not be processed. Any information you provide will be made accessible to the following: persons or entities, employees, agents, city attorneys, and officials of the City who have a need to know about the information in the course of their duties or responsibilities. Your acceptance her indicates that you have read and understand these rights. Please be advised that your name, the make, and model of your vehicle is considered public information and will be provided if requested. By submitting this application and accepting this parking permit, I agree to abide by City rules and regulations associated with municipal parking facilities. I understand that violations may result in my vehicle being ticketed or towed or may result in forfeiture of this permit. Date Employee Signature To be Completed by City Staff Only Total Due Date Issued Amount Received & Payment Method Permit Number XXXXXX XXXX XXXXXXXXX XXXXXXXXXXXXXXX 3948 Market Street, EdinaUnited States Postal Service USPS License AgreementN/A Return this front page to Edina City Hall XXXXXXXX 2020 Municipal Parking Regulations Rules and regulations for parking in the City facilities are included in Chapter 24, Article VIII, Division 5 of the Edina City Code. The rules are summarized below: 1)Annual permits are valid from January 1st to December 31st. 2)Posted hourly restrictions are actively enforced between 8:00 AM and 6:00 PM, Monday through Saturday. 3)Every employee who chooses to park in the City facilities must purchase a parking permit or display a valid pass. 4)Employees who have a State Disability Permit or Disability License Plates are not required to purchase a parking permit. Employees with disabilities may park in any public parking stall when valid permit or plates are displayed. 5)Permit holders may only park in the designated areas of the City facilities as described below. 6)Day-time permits are only issued to employees of businesses located within the City of Edina at 50th and France. 7)Permits may be cancelled by the City if the permit holder ceases to reside at or be employed by a business at 50th and France in Edina. A pro-rated refund can be made provided that the original permit is returned. 8)The window-cling style permit must be displayed in the window to be visible from the rear. Permits should not hinder the driver’s vision. Vehicles must be parked front-end forward so that the permit is visible from the rear. 9)Permits may not be replicated, sold, traded or otherwise transferred. 10)Overnight parking is not permitted, unless an “Overnight Permit” is issued to an eligible Edina business or resident. 11)A second permit can be purchased by employees with an annual Regular or Premium Permit who may drive multiple vehicles registered to the same household. 12)Vehicles parked in violation of City Code by failing to obtain a permit or failure to park in the designated location will be ticketed or towed at owner expense. Tickets are adjudicated by Hennepin County. The City is unable to waive parking citations. Designated Permit Parking Locations Regular Permits (daily, quarterly, annual) •South Ramp – all stalls on rooftop (Level 3) •North Ramp – Designated stalls on Levels 3 and 4 only Premium Permits including USPS •Locations allowed by Regular Permits •South Ramp – Lower Level •North Ramp – Designated stalls on Level 2 Rooftop Only Permits •North Ramp – Rooftop stalls that are open to the sky above Overnight Permits •North Ramp – Lower level only Revised 10-23-2019 Date: January 16, 2020 Agenda Item #: VII.A. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:Election of Officers Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Motion appointing Chair, Vice Chair and Secretary of the HRA. INTRODUCTION: The by-laws of the HRA provide for the designation of officers. The Chair presides at the meetings and executes all contracts. T he Vice Chair steps in during times when the Chair is unavailable. The Secretary co-signs all contracts. Date: January 16, 2020 Agenda Item #: VII.B. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:Appointment of the Executive Director of the HRA Action Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Motion to appoint City Manager Scott Neal as Executive Director of the HRA. INTRODUCTION: The City Council previously designated me as Executive Director of the HRA. I request the Council affirm this designation with the requested motion. The proposed term of this appointment will be concurrent with my employment as City Manager. Date: January 16, 2020 Agenda Item #: VII.C. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Jennifer Garske, Executive Assistant Item Activity: Subject:HRA 2020 Meeting Dates and Location Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action. INTRODUCTION: HRA Bylaws requires designation of a fixed place and determination of dates for regular meetings. Meeting location and dates are: Most regular meeting location is in the Council Chambers, City Hall, 7:30-9 a.m. The Feb. 27 and Oct. 29 meetings will be held in the Community Room, City Hall, 7:30-9 a.m. Meetings dates for 2020 are: January 16 and 30; February 13 and 27; March 12 and 26; April 16 and 30; May 14 and 28; June 11 and 25; July 30 only; August 13 and 27; September 10 and 24; October 15 and 29; November 12 only; December 10 only. Work Session meetings are scheduled as needed and meeting location is the Community Room, City Hall, 7:30-8:15 a.m., generally. The work session adjourns in the Community Room and the regular meeting begins in the Council Chambers. Date: January 16, 2020 Agenda Item #: VII.D. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Bill Neuendorf, Economic Development Manager Item Activity: Subject:Year in Review 2019 Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action required; for informational purposes only. INTRODUCTION: Staff has prepared a Year-In-Review report to summarize the activities of the HRA in 2019. ATTACHMENTS: Description HRA 2019 Year in Review 2019 Year in Review Presentation HOUSING AND REDEVELOPMENT AUTHORITY 2019 - YEAR IN REVIEW OVERVIEW The Edina Housing and Redevelopment Authority (HRA) was established in 1974 for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing. The members of the Edina City Council serve as Commissions of the Board of the HRA. The Edina City Manager serves as Executive Director of the HRA. From time to time, additional services are provided to the HRA by City staff as part of their regular job duties. The HRA also uses third-party professionals to provide expertise in the preparation of redevelopment agreements and to provide monitoring and reporting oversight. This report has been prepared by City of Edina staff to highlight activities and accomplishments in the past year. This report also contains updated project information that may shape upcoming activities and programs of the HRA. 2019 ACCOMPLISHMENTS • Completed redevelopment at 50th & France, including the Nolan Mains apartments, new Center Parking Ramp and new exterior public plazas o Completed oversight of Market Street redevelopment, including regular communications between developer and neighboring businesses o Sold the new retail space constructed as part of the North Ramp Expansion to a private developer who will lease and maintain the commercial spaces o Issued a 15-year loan to support 10 affordable housing units located within the Nolan Mains apartments • Completed intersection improvements at Wooddale and Valley View • Completed initial phase of intersection improvements at Interlachen and Vernon • Issued three TIF Notes to Pentagon Village, LLC, to recognize private investment necessary to attract new businesses to the vacant 12 acres along West 77th Street between Normandale Road and Computer Avenue 2019 Edina HRA – Year in Review Page 2 • Established 72nd & France TIF District to support redevelopment and new affordable housing at 7200-7250 France Avenue o Executed Redevelopment Agreement with France Equities, LLC, to support redevelopment of 7200-7250 France Avenue • Established Amundson Avenue TIF District to support new affordable housing at 7075-7079 Amundson Avenue o Entered into agreement with Edina Housing Foundation to temporarily acquire the site and assume the Purchase Agreement with MWF Properties to build 62 units of affordable housing on the site • Modified Southdale 2 TIF Plan to support new affordable housing at 4040 W. 70th St. • Secured legislative authority to maximize the use of incremental taxes from the Southdale 2 District for affordable housing purposes • Closed on six (6) “Come Home 2 Edina” second mortgages • Acquired 4100 W. 76th St. and executed redevelopment agreement with Aeon for the redevelopment into affordable housing • Implemented the Class 4d Property Tax Reduction for naturally occurring affordable multifamily housing • Amended the Affordable Housing Policy to extend affordability period and add tenant protections • Provided gap financing to preserve a NOAH property at 7008 Sandell Ave. REDEVELOPMENT ACTIVITY The flurry of redevelopment continues in commercial and industrial sites in Edina. Most redevelopment occurs on properties that were originally developed 50 or more years ago. The aging structures on these properties typically has not kept pace with the needs or expectations of the current marketplace. Most redevelopment in Edina is privately funded. The HRA does get involved in project financing when the project is determined to be unfeasible without intervention and when the proposed project delivers long-term community benefits. Most of the 60 major redevelopment projects constructed since the Great Recession began to end in 2010 have been privately funded. Only nine projects have utilized tax increment financing (TIF) from Edina. Four of these nine projects were developed by the Edina HRA or not-for-profit affordable housing developers. In 2019, two new TIF districts were established. As of year-end 2019, Edina has nine active TIF districts. Key details of Edina’s TIF districts are summarized below: 2019 Edina HRA – Year in Review Page 3 Name Type Size (acres) Year Established First Collection Expiration Year 44th and France 2 Renewal, 15-years 1.0 2018 2021 2036 50th and France 2 Redevelopment, 25- years 2.8 2017 2020 2045 72nd and France Special Housing, 20- years 5.2 2019 2023 2043 Amundson Avenue Special Housing, 20- years 1.2 2019 2022 2042 Grandview 2 Redevelopment, 25- years 10.8 2016 2020 2045 Southdale 2 Economic Development, 8-years 208 2012 2013 2021 66 West Housing 0.9 2016 2019 2044 West 76th Street Special Housing, 20- years 2.0 2018 2022 2042 Pentagon Park Redevelopment, 25- years 47 2014 2018 2043 In general, Edina uses TIF to a lesser extent than neighboring communities. Maps and graphs to illustrate the use of TIF in Edina are attached as Exhibits A and B. PROJECT STATUS 1) 4500 France Avenue – The Lorient Apartments The HRA entered into a Redevelopment Agreement in 2018 and pledged to issue a TIF note up to $2.295 million after successful completion of the $29 million redevelopment project. The project consists of approximately 46 apartments (of which three are affordable to households with incomes at or below 60 percent of AMI) with approximately 7,000 square feet of commercial space on the first floor. The new building is designed to be four stories near the commercial street and two stories along Sunnyside Road to make a smooth transition to the adjacent single-family houses. The project will also include several infrastructure improvements in the commercial node and will provide a public plaza, public parking, public art and new public sidewalks with streetscape improvements. The project is under construction with completion expected August 2020. 2) North Ramp on Market Street This project was completed in Fall 2018 at a total estimated cost of $12 million. Real estate proceeds and monies from the Centennial Lakes TIF fund were used to fund the capital 2019 Edina HRA – Year in Review Page 4 investment. The final project includes 546 public parking stalls as well as 10,000 square feet of commercial space. Throughout the year, staff worked with the project architect and the general contractor to resolve punchlist and warranty items. Significant time and attention were given to resolve a persistent moisture concern near the intersection of the snow chute and the commercial tenant space. While the problem was resolved, staff is prepared to monitor this location to ensure a watertight enclosure. This year, additional way-finding signage was also added to the North Ramp to simplify customer use. The commercial space was sold to a private developer in October 2019. After the commercial spaces were sold, the developer began interior construction for new businesses. The two spaces will be subdivided to accommodate four new tenants. At least two new businesses are anticipated to open in Spring 2020. 3) Nolan Mains / Center Ramp on Market Street This property was sold to a private developer in 2018 for construction of 100 units of rental housing, approximately 20,000 square feet of commercial space and reconstruction of the new Center Parking Ramp. The building is configured around a series of public walkways and plazas to create a vibrant pedestrian experience that engages the adjacent commercial properties. The project also includes shared trash rooms for use by adjacent businesses and extensive, utility improvements that benefit surrounding properties. The HRA issued a $10.1 million TIF note that will begin to bear interest and be payable upon completion of the $74 million project. With the support of the Edina Housing Foundation, the HRA also provided a low-interest loan to support 10 affordable rental units in the facility for a period of at least 15 years. As of the end of 2019, the development is nearing substantial completion. Residents began occupying the building on Nov. 1, 2019. The Center Ramp was opened to the public on Nov. 1. The public walkways and plazas have been delivered in phases starting November 1. The two shared trash rooms were also delivered. Seasonal programming in the public plaza began in December with three holiday events for families. In early 2020, the contractor will complete final construction details. Interior construction of commercial tenant spaces is anticipated to occur in 2020 as leases are executed. Due to winter conditions, staff has agreed to allow final landscaping and the final street paving to occur in Spring 2020 so that survivability and durability of these public elements are increased. 4) Edina Flats – Valley View Road and Kellogg Avenue The HRA sold vacant property on Valley View Road and Kellogg Avenue to a private developer for construction of up to 18 new condominiums. The developer also owns vacant property at Valley View and Oaklawn. 2019 Edina HRA – Year in Review Page 5 The developer has scaled back the size of the project and is constructing 15 condominium units on Kellogg with no imminent plans for the Oaklawn parcel. As of year-end 2019, the building at 6142 Kellogg has been completed and the public plaza on the corner has been completed. Construction of 6120 and 6128 Kellogg is underway and foundations for 6112 Kellogg have been installed. At year end – 9 of the 15 units are reserved for new occupants. Several real estate closings are scheduled for early 2020. 5) 5146 Eden Avenue The HRA decided to pause any redevelopment planning on this site in 2019. The site remains vacant. A portion of the site was temporarily allowed to be used to accommodate construction workers and equipment related to the construction of the Avidor Apartments and the roadway and intersection reconstruction at Interlachen and Vernon. 6) Southdale Center Mall The 77-acre Southdale Center Mall property continues to undergo significant transformation in 2019. The new 60,000-square-foott RH Gallery furniture showroom was completed in September 2019 in an overflow parking lot. This is the only such facility in the upper Midwest. The redevelopment of the former JC Penney anchor was completed in December 2019. This area is now occupied by a state-of-art Lifetime Athletic facility and complemented with Lifetime Sport and Lifetime Work facilities. A new entrance to the mall structured as a three-story tall winter garden was also created. In 2020, three new tenants are anticipated to open in this new portion of the mall. The new businesses are: Yumi Japanese, Rustica Bakery and Dry Bar salon. While the RH Gallery and Lifetime parcels are located within the Southdale 2 TIF District, these projects were privately financed with no HRA participation. The former Herberger site remains vacant since the department store was closed in late summer 2018. Simon Properties, the property owner is reviewing several possibilities for re-use or redevelopment of the Herberger site. Hennepin County intends to relocate the Southdale Regional Library to this site and there is strong interest from another retail anchor as well as luxury residential developer. Concept plans are anticipated to be submitted for review in 2020. 7) 6600-6800 France Avenue While the property owner/developer secured land use approvals to add new retail, housing, hotel and office space on the site in 2016, the only element to be completed has been the flagship suburban site for Bank of America. The developer has determined that the original concept is not financially feasible, due in part to the high cost of structured parking and storm 2019 Edina HRA – Year in Review Page 6 water requirements. They have indicated that the project cannot move forward without significant changes. Due to the uncertainty of this project, the $1.3 million grant awarded from the Metropolitan Council for the public realm improvements has been rescinded. It may be necessary for the HRA to intervene with the use of public financing to achieve stormwater improvements that benefit the public as well as to achieve other public benefits. 8) 7008 Sandell Avenue The HRA awarded $350,000 to Aeon to assist with the acquisition and rehabilitation of 7008 Sandell. Of the 11 units, the rents on five of them were reduced to serve households with incomes at or below 60 percent of AMI. 9) 7001 France Avenue Ryan Companies and US Bank intend to redevelop the 5.7-acre site with a mixture of commercial and residential uses, including a modern facility for US Bank. At year end, the primary tenants have vacated the existing buildings with only the bank remaining. The developer is taking the comments and suggestions provided by the Planning Commission and City Council into consideration as they prepare updated plans for regulatory consideration. Public financing might need to be considered in order to secure a viable plan that can deliver the type of public realm improvements and public amenities suggested by the City. Concept plans are anticipated to be submitted in 2020. 10) 7200/7250 France Avenue In late 2018, the developer/property owner secured rezoning approval to replace two aging office buildings with two multi-family apartment buildings with commercial space on the street level. The approved site plan includes several public realm amenities and preserves a portion of the property that has a grove of mature trees. In April 2019, the City & HRA established the 72nd & France TIF District and entered into a Redevelopment Agreement with the developer. This agreement pledges $12 million in future TIF payments after successful completion of the project. The TIF pledge will reimburse the developer for eligible expenses associated with public benefits. The developer has been pursuing private funding for the project in 2019. Lenders and investors indicate that the project is not financially feasible in the current format. The developer is reviewing options regarding how to proceed. Due to the uncertainty of this project, the request for $1.8 million in grant funding from the Metropolitan Council has been withdrawn and the $500,000 grant from DEED has been rescinded. 2019 Edina HRA – Year in Review Page 7 11) 3250 West 66th Street – Millennium of Southdale The first phase of this project began in 2019. It consists of 227 units of multi-family housing. The vacant building was demolished in summer and site work began soon after. At year-end the contractor continues to work on the foundation system. While this property is located within the Southdale 2 TIF District, this project was privately financed with no HRA participation. The owner has agreed to make seven of the units (3 percent) affordable. 12) 3101 West 66th Street – Aria Apartments This 184-unit apartment building was completed in August 2019. While this property is located within the Southdale 2 TIF District, this project was privately financed with no HRA participation. The owner agreed to make eight units (4 percent) affordable to households with incomes at or below 60 percent of AMI. 13) 7001 York Avenue Hennepin County owns and operates the Regional Library on this 8-acre property. For several years, they have been considering how to redevelop the property. The Service Center relocated to Southdale Center in 2015. The Court Facility moved to Ridgedale Center in Minnetonka in 2019. The Regional Library is scheduled to be relocated to the southeast quadrant of Southdale Center mall as early as 2022. The HRA may get involved in the future redevelopment of this site, possibly for the creation of new affordably priced housing in addition to other viable market-driven uses. Details are pending until the County determines the timing for a future transaction. 14) 3650 Hazelton Road – Promenade Residences This 1.25-acre site is currently occupied by a vacant retail building. The City approved the zoning for a new high-rise residential building in 2019. This project is privately financed. The developer intends to break ground in Spring 2020. 15) 4040 West 70th Street The Edina Housing Foundation entered into a Purchase Agreement for this 1.58-acre site. The HRA approved a term sheet to lend the Foundation the acquisition funds needed. The City Council approved amending the Southdale 2 TIF plan to allow for pooled TIF funds to be used to facilitate affordable housing at this location. The Foundation intends to solicit a developer for the creation of age-restricted affordable housing 2019 Edina HRA – Year in Review Page 8 16) 4100 West 76th Street – The Sound on 76 Aeon, a private developer who specializes in affordable housing, has purchased this property after it had been listed on the open market for more than one year. The existing commercial building was originally constructed in 1967 and has been occupied by a number of different businesses – including a successful recording studio. The HRA pledged to provide $2.4 million in monies and $925,000 in future incremental property taxes from the site to support long-term affordability on the site. Aeon was awarded partial tax credits from Minnesota Housing in November 2019 and is applying for the remaining credits in January 2020. Once awarded, this proposed development will be fully funded. Construction is expected to commence in summer 2020. The HRA acquired the property in August 2019 and entered into a Purchase Agreement with Aeon with the intention to sell to Aeon after they have secured full construction funding. 17) Pentagon Park South – Pentagon Village The HRA executed a Redevelopment Agreement with the developer to support complete redevelopment of the vacant 12-acre property. In 2019, a minor amendment to the agreement was approved. Upon completion, the developer will deliver completely new infrastructure and several new building elements. They are anticipated to include: new dual-brand Marriott hotel, two new retail buildings, Waterwalk extended-stay hotel, mixed-use retail/office building, two new office buildings, parking garage and public plaza. The developer has completed a lot of work since the agreements were executed. All infrastructure is substantially complete, the Phase 1 parking structure is complete and the framework for the public plaza is complete. The remainder of the site has been prepared as building pads to be improved by the owner of each new project. Construction has begun on the first two retail buildings. One hotel pad has been sold and the second is scheduled to close soon. Construction on both hotels is anticipated to begin Spring 2020. Staff reviewed the developer’s pre-development and infrastructure expenses to confirm the level of investment. Three TIF notes were issued in July 2019 with a total principal amount of $18.1 million. These notes will not begin to accumulate interest nor be payable until the milestones set out in the Redevelopment Agreement are reached. 18) 7075 Amundson Avenue The Edina Housing Foundation purchased this vacant site in 2018 after the business closed due to bankruptcy. After a competitive Request for Proposal process, the Foundation selected MWF Properties to develop 62 units of family workforce housing. All necessary funding has been secured and construction is expected to commence in summer 2020. 2019 Edina HRA – Year in Review Page 9 The HRA approved acquiring 7075 Amundson from the Foundation at the asking price of $1.3M and entered into a Purchase Agreement with MWF Properties to sell the site for $600,000. This write-down helped fill a funding gap and allowed MWF to maximize points on their Low Income Housing Tax Credit application. OTHER HRA ACTIVITIES 19) Special TIF Legislation In 2019, Edina secured legislative authority to use pooled TIF funds from the Southdale 2 District with a timeline that is co-terminus with the expiration of the TIF District on December 31, 2021. Ehlers Associates completed an analysis of the amount of funds available within the Southdale 2 District and the constraints on those funds. A summary is included in Exhibit C. 20) Open to Business Program The HRA continues to partner with the Metropolitan Consortium of Community Developers (MCCD) to provide free business consulting services for start-up businesses or expanding businesses located within Edina. These services are also provided to Edina residents regardless of where the business may eventually be located. The $5,000 annual contribution from the HRA supplements funding provided from Hennepin County. While year-end figures are not yet available, as of June 2019, the Open to Business program provided service to 11 entrepreneurs with business interests or homes in Edina. Staff at MCCD provided more than 70 hours of direct technical assistance with these clients. The categories of businesses included start-ups, existing with growth opportunities and existing businesses with operational challenges. The types of businesses ranged from fitness to retail and from bakery to micro-brewery. The Open to Business program resulted in direct business loans of $160,000 to some of these clients. These loans leveraged another $3.9 million in business investment. 21) Come Home to Edina Program The Come Home 2 Edina program closed six loans in 2019. Marketing efforts have been increased, especially to organizations that serve under-represented populations. The Edina Housing Foundation also increased the cap on a house value from $350,000 to $425,000 in hopes of expanding the pool of eligible households that might use this program. 22) Class 4d Property Tax Incentive HRA approved a pilot program for owners of naturally occurring affordable multifamily properties to reduce their property tax obligation by investing in energy efficient upgrades to 2019 Edina HRA – Year in Review Page 10 the building and committing to keep units affordable for households with incomes at or below 60 percent of AMI for a period of time. Despite marketing and outreach efforts by staff in 2019, no property owners took advantage of this program. Changes were approved to simplify the program in 2020 in hopes of securing more affordable units. FORECAST OF 2020 ACTIVITIES The staff work plans for 2020 tentatively include these activities: • Decide upon the future use of the vacant site at 5146 Eden Ave. • Issue TIF note for 4500 France Ave. • Issue Certificate of Completion for the Nolan Mains/ Market Street Redevelopment project • Investigate the redevelopment potential of the 44th & France commercial node • Investigate the needs of the Highway 100 business park • Consider the early termination of the 66 West TIF District • Convey 7075-7079 Amundson to MWF Properties, close on financing and commence construction of 62 units of affordable housing • Convey 4100 W. 76th St. to Aeon, close on financing, and commence construction of 70 units of affordable housing • Make a determination regarding a Tenant Protection Policy. • Expand Community Land Trust program. Prepared by: Bill Neuendorf Stephanie Hawkinson Economic Development Manager Affordable Housing Development Manager January 10, 2020 2019 Edina HRA – Year in Review Page 11 Exhibit A – Map of Active TIF Districts 2019 Edina HRA – Year in Review Page 12 Exhibit B – Use of TIF in Edina 2019 Edina HRA – Year in Review Page 13 Exhibit C The CITY ofEDINAThe CITY ofEDINA Year in Review –2019 Summary to Edina Housing and Redevelopment Authority January 16, 2020 Bill Neuendorf, Economic Development Manager Stephanie Hawkinson, Affordable Housing Development Manager The CITY ofEDINACumulative Redevelopment Statistics EdinaMN.gov 2 $560+ Million Private Investment Commercial Projects Residential Units Hotel Rooms Commercial Space 700,000+2,100+500+60 HRA involved in 9 of the 60 using TIF The CITY ofEDINA •4 Housing •3 Redevelopment •1 Renewal •1 Economic Devel. EdinaMN.gov 3 Nine Active TIF Districts The CITY ofEDINAUse of TIF in Edina EdinaMN.gov 4 The CITY ofEDINAThe Lorient –4500 France EdinaMN.gov 5 The CITY ofEDINAThe Lorient –4500 France EdinaMN.gov 6 The CITY ofEDINANolanMains&Market Street Ramps EdinaMN.gov 7 The CITY ofEDINANolanMains&Market Street Ramps EdinaMN.gov 8 The CITY ofEDINANolanMains&Market Street Ramps EdinaMN.gov 9 The CITY ofEDINANolanMains&Market Street Ramps EdinaMN.gov 10 The CITY ofEDINAEdina Flats –Valley View Rd EdinaMN.gov 11 The CITY ofEDINANew Destinations at Southdale Center EdinaMN.gov 12 The CITY ofEDINANew Destinations at Southdale Center EdinaMN.gov 13 The CITY ofEDINA7200-7250 France EdinaMN.gov 14 The CITY ofEDINAPreservationofAffordable Housing EdinaMN.gov 15 7008 Sandell Avenue The CITY ofEDINAProduction of New Affordable Housing: www.EdinaMN.gov 16 4100 76th Street West --70 units;100% affordable The CITY ofEDINAProduction of New Affordable Housing: www.EdinaMN.gov 7075 Amundson --62 units; 100% affordable 17 The CITY ofEDINA 4040 West 70th Street •Edina Housing Foundation •-Developer to be selected •Age-restricted (55+) •Density and scale per Comp. Plan •100% affordable housing development Production of New Affordable Housing: www.EdinaMN.gov 18 The CITY ofEDINA EdinaMN.gov 19 * Based on estimates prepared by Ehlers Associates September 2019; calculated at decertification of TIF District on 12/31/2021 The CITY ofEDINAPentagon Village EdinaMN.gov 20 The CITY ofEDINAPentagon Village 21EdinaMN.gov The CITY ofEDINAPentagon Village EdinaMN.gov 22 The CITY ofEDINA •66 West TIF District •7075-79 Amundson –MWF Properties •4100 W.76th –Aeon •4040 W. 70th –EHF •Land Trust •5146 Eden Ave (old PW site) •Lorient -4500 France Ave •Nolan Mains –3945 Market St •44th &France Neighborhood Node •Highway 100 Business Park •6600-6800 France TBD •7001 France TBD Forecast of 2020 Activities EdinaMN.gov 23 Date: January 16, 2020 Agenda Item #: VIII.A. To:Chair & Commissioners of the Edina HRA Item Type: Other From:Jennifer Garske, Executive Assistant Item Activity: Subject:Correspondence Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: Attached is correspondence received since the last HRA meeting. ATTACHMENTS: Description HRA Correspondence 1-16-20 City of Edina Correspondence Submission Correspondence Selection * Data Practices Advisory: Any information submitted through this form will be emailed to the Housing and Redevelopment Authority (HRA) Chair and Commissioners and submitted for inclusion in the next public “HRA packet.” HRA packets are permanent records of materials prepared for HRA meetings. HRA packets are public documents that are available in print, published on the City’s website and maintained in permanent electronic records. You are not required to complete any fields of this form. However, if you do not provide your name and street or email address, your comments will not be included in the HRA packet. Open Meeting Law The HRA Chair and Commissioners receive and consider all feedback sent through this form. Because of the open meeting law, the HRA Chair and Commissioners cannot engage in back-and-forth emails involving a quorum of three or more members. For that reason, you might not receive a response from them. You might also receive a response from a City staff member. Email HRA: If you only want to email the City Council and not send your comments for publishing, contact members at CityCouncil@EdinaMN.gov. Contact Executive Assistant Jennifer Garske, at jgarske@EdinaMN.gov, if you have any questions or require assistance. HRA Packet Deadline Correspondence must be received by noon the Thursday prior to a HRA meeting in order to ensure it is published in the packet prior to the Council meeting. Submissions after that time may be included in a future Council packet. Name * Street Address City State Zip Code Phone Number Email Comments * File Upload Housing and Redevelopment Authority Carol Wolfe Edina MN 55439 9529432016 no dashes or spaces carol@freyfoundationmn.org Dear Mayor Hovland and HRA members; My husband Dan and I fully support the TIF district for proposed workforce affordable housing on Amundson Avenue. We need to provide housing for all community members and this is a good step in creating equity in Edina for all. Thank you for the progress made thus far and keep up the good work in making Edina a city that values all citizens. Attachments allowed: pdf, jpg, png By submitting this form, I have read and agree to the Data Practices Advisory above. City of Edina Correspondence Submission Correspondence Selection * Data Practices Advisory: Any information submitted through this form will be emailed to the Housing and Redevelopment Authority (HRA) Chair and Commissioners and submitted for inclusion in the next public “HRA packet.” HRA packets are permanent records of materials prepared for HRA meetings. HRA packets are public documents that are available in print, published on the City’s website and maintained in permanent electronic records. You are not required to complete any fields of this form. However, if you do not provide your name and street or email address, your comments will not be included in the HRA packet. Open Meeting Law The HRA Chair and Commissioners receive and consider all feedback sent through this form. Because of the open meeting law, the HRA Chair and Commissioners cannot engage in back-and-forth emails involving a quorum of three or more members. For that reason, you might not receive a response from them. You might also receive a response from a City staff member. Email HRA: If you only want to email the City Council and not send your comments for publishing, contact members at CityCouncil@EdinaMN.gov. Contact Executive Assistant Jennifer Garske, at jgarske@EdinaMN.gov, if you have any questions or require assistance. HRA Packet Deadline Correspondence must be received by noon the Thursday prior to a HRA meeting in order to ensure it is published in the packet prior to the Council meeting. Submissions after that time may be included in a future Council packet. Name * Street Address City State Zip Code Phone Number Email Comments * Housing and Redevelopment Authority Jinnet Fowles 7250 York Ave S, Apt 304 EDINA MN 55435-4456 6122003043 no dashes or spaces jinnet.fowles@gmail.com Dear HRA I am writing to support the formation of a TIF district for the Amundson Ave project. As you well know, we in Edina desperately need housing for our workforce and we have limited options. I applaud your efforts so far to find constructive ways to expand our affordable housing options. Both the number of units to be created (62) and the duration of their affordability (40 years) are key aspects for meeting the challenge we confront. Jinnet Fowles 612-200-3043 File Upload By submitting this form, I have read and agree to the Data Practices Advisory above. Attachments allowed: pdf, jpg, png City of Edina Correspondence Submission Correspondence Selection * Data Practices Advisory: Any information submitted through this form will be emailed to the Housing and Redevelopment Authority (HRA) Chair and Commissioners and submitted for inclusion in the next public “HRA packet.” HRA packets are permanent records of materials prepared for HRA meetings. HRA packets are public documents that are available in print, published on the City’s website and maintained in permanent electronic records. You are not required to complete any fields of this form. However, if you do not provide your name and street or email address, your comments will not be included in the HRA packet. Open Meeting Law The HRA Chair and Commissioners receive and consider all feedback sent through this form. Because of the open meeting law, the HRA Chair and Commissioners cannot engage in back-and-forth emails involving a quorum of three or more members. For that reason, you might not receive a response from them. You might also receive a response from a City staff member. Email HRA: If you only want to email the City Council and not send your comments for publishing, contact members at CityCouncil@EdinaMN.gov. Contact Executive Assistant Jennifer Garske, at jgarske@EdinaMN.gov, if you have any questions or require assistance. HRA Packet Deadline Correspondence must be received by noon the Thursday prior to a HRA meeting in order to ensure it is published in the packet prior to the Council meeting. Submissions after that time may be included in a future Council packet. Name * Street Address City State Zip Code Phone Number Email Housing and Redevelopment Authority Hope Melton 4825 Valley View Road Edina MN 55424 9529263959 no dashes or spaces hopemelton@hotmail.com Comments * File Upload By submitting this form, I have read and agree to the Data Practices Advisory above. Dear Mayor and Members of the HRA I am writing in support of the creation of a new TIF District for the 7075-7079 Amundson Ave. affordable housing project that will provide affordable units 62 units. This is an important workforce housing project that will provide homes for people who now work in Edina but cannot afford to live here. We need to accommodate these folks in our community. I commend you all on the excellent progress we've made this year in becoming a more equitable and socioeconomically balanced community. Thank you for your courage and commitment. Respectfully, Hope Melton, Coordinator Edina Neighbors for Affordable Housing Attachments allowed: pdf, jpg, png City of Edina Correspondence Submission Correspondence Selection * Data Practices Advisory: Any information submitted through this form will be emailed to the Housing and Redevelopment Authority (HRA) Chair and Commissioners and submitted for inclusion in the next public “HRA packet.” HRA packets are permanent records of materials prepared for HRA meetings. HRA packets are public documents that are available in print, published on the City’s website and maintained in permanent electronic records. You are not required to complete any fields of this form. However, if you do not provide your name and street or email address, your comments will not be included in the HRA packet. Open Meeting Law The HRA Chair and Commissioners receive and consider all feedback sent through this form. Because of the open meeting law, the HRA Chair and Commissioners cannot engage in back-and-forth emails involving a quorum of three or more members. For that reason, you might not receive a response from them. You might also receive a response from a City staff member. Email HRA: If you only want to email the City Council and not send your comments for publishing, contact members at CityCouncil@EdinaMN.gov. Contact Executive Assistant Jennifer Garske, at jgarske@EdinaMN.gov, if you have any questions or require assistance. HRA Packet Deadline Correspondence must be received by noon the Thursday prior to a HRA meeting in order to ensure it is published in the packet prior to the Council meeting. Submissions after that time may be included in a future Council packet. Name * Street Address City State Zip Code Phone Number Email Housing and Redevelopment Authority Chris Bremer Edina MN 55410 no dashes or spaces cbremer101@gmail.com Comments * File Upload By submitting this form, I have read and agree to the Data Practices Advisory above. I am writing to let you know that I support the creation of a TIF district for the 7075-7079 Amundson Ave affordable housing project. I am so excited that we will have 62 new units of affordable housing for at least forty years. I expect many of these units will be occupied by people who already work in Edina but can’t afford to live here. These units will not only provide much-needed housing. Their proximity to where people work will also help to reduce commuting times and thus carbon emissions. Thank you for your support of affordable housing! Best regards, Chris Bremer Attachments allowed: pdf, jpg, png City of Edina Correspondence Submission Correspondence Selection * Data Practices Advisory: Any information submitted through this form will be emailed to the Housing and Redevelopment Authority (HRA) Chair and Commissioners and submitted for inclusion in the next public “HRA packet.” HRA packets are permanent records of materials prepared for HRA meetings. HRA packets are public documents that are available in print, published on the City’s website and maintained in permanent electronic records. You are not required to complete any fields of this form. However, if you do not provide your name and street or email address, your comments will not be included in the HRA packet. Open Meeting Law The HRA Chair and Commissioners receive and consider all feedback sent through this form. Because of the open meeting law, the HRA Chair and Commissioners cannot engage in back-and-forth emails involving a quorum of three or more members. For that reason, you might not receive a response from them. You might also receive a response from a City staff member. Email HRA: If you only want to email the City Council and not send your comments for publishing, contact members at CityCouncil@EdinaMN.gov. Contact Executive Assistant Jennifer Garske, at jgarske@EdinaMN.gov, if you have any questions or require assistance. HRA Packet Deadline Correspondence must be received by noon the Thursday prior to a HRA meeting in order to ensure it is published in the packet prior to the Council meeting. Submissions after that time may be included in a future Council packet. Name * Street Address City State Zip Code Phone Number Email Comments * File Upload By submitting this form, I have read and agree to the Data Practices Advisory above. Housing and Redevelopment Authority Barry Rosenthal 6205 Scotia Drive Edina MN 55439 6513585100 no dashes or spaces barry.rosenthal@outlook.com I urge you to support creation of a TIF district for 7075 Amundson Ave. We desperately need more affordable housing in Edina. Attachments allowed: pdf, jpg, png Date: January 16, 2020 Agenda Item #: IX.A. To:Chair & Commissioners of the Edina HRA Item Type: Report / Recommendation From:Scott H. Neal, City Manager Item Activity: Subject:HRA Bylaws Information Edina Housing and Redevelopment Authority Established 1974 CITY OF EDINA HOUSING & REDEVELOPMENT AUTHORITY 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: The By-Laws of the Housing and Redevelopment Authority are reviewed on an annual basis. Staff recommends no amendments to the by-laws at this time.