HomeMy WebLinkAbout2020-06-25 HRA Regular Meeting PacketAgenda
Edina Housing and Redevelopment Authority
City of Edina, Minnesota
VIRTUAL MEETING
Thursday, June 25, 2020
7:30 AMTo make live testimony:800-374-0221, the conference ID number is
8896527. Watch meeting: https://www.edinamn.gov/746/Watch-a-City-Meeting or
Facebook Live at https://www.facebook.com/edinamn/.
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.Draft Minutes of Regular Meeting June 11, 2020
B.Approve Payment of Claims
C.Request for Purchase: 50th and France Paver Replacements
VII.Reports/Recommendations: (Favorable vote of majority of Commissioners
present to approve except where noted)
A.5146 Eden Avenue - Redevelopment and Re-use Discussion
VIII.Correspondence
A.Correspondence
IX.HRA Commissioners' Comments
X.Executive Director's Comments
A.Project Update
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: June 25, 2020 Agenda Item #: VI.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Minutes
From:Liz Olson, Planning Administrative Support Specialist
Item Activity:
Subject:Draft Minutes of Regular Meeting June 11, 2020 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 regular minutes of May 28, 2020.
INTRODUCTION:
See attached meeting minutes of May 28, 2020.
ATTACHMENTS:
Description
Minutes: Draft Minutes of Regular Meeting June 11, 2020
Page 1
MINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
JUNE 11, 2020
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the meeting to order at 7:30 a.m. and noted the meeting was being held virtually to
comply with the Governor’s Stay at Home Order due to the COVID-19 pandemic then explained the
processes created for public comment.
II. ROLLCALL
Answering rollcall were Members Anderson, Brindle, Fischer, Staunton, and Chair Hovland.
III. PLEDGE OF ALLEGIANCE
IV. MEETING AGENDA APPROVED - AS PRESENTED
Motion by Commissioner Fischer, seconded by Commissioner Brindle, approving the meeting
agenda as presented.
Roll call:
Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland
Motion carried.
V. COMMUNITY COMMENT
No one appeared.
Executive Manager Neal introduced Management Fellow Risi Karim who shared her background of studies
at the University of Kansas that included a master’s in public administration and experience in legislative
work then shared her excitement about the affordable housing initiative work in the City.
VI. APPROVAL OF CONSENT AGENDA – AS PRESENTED
VI.A. Approve minutes of May 28, 2020, Regular meeting
Motion by Commissioner Brindle, seconded by Commissioner Anderson, approving the
consent agenda as presented:
Rollcall:
Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland
Motion carried.
VII. PUBLIC HEARINGS
VII.A. RESOLUTION NO. 2020-03 AUTHORIZING SALE OF LAND TO AMUNDSON FLATS, LP
AND APPROVE REDEVELOPMENT AGREEMENT - ADOPTED
Housing Manager Hawkinson stated in July 2019 the HRA authorized staff to engage legal counsel to draft
documents to acquire 7075-7079 Amundson Avenue from the Edina Housing Foundation for $1,300,000 and
sell to MWF Properties for $600,000. Since that time, MWF had secured financing and site plan approval to
complete this development and rather than convey the property to MWF Properties, the site would be
conveyed to Amundson Flats, LP, of which MWF was a member of the General Partnership. She shared
how the redevelopment agreement outlined requirements that the land be developed into 62 units of
affordable housing that would remain affordable for 40 years and how in July 2018, the East Edina Housing
Foundation (Foundation) acquired the Waldorf-Nevens at 7075-7079 Amundson Avenue (Parcel) and how
the Foundation, through an RFP, unanimously selected MWF Properties, LLC (MWF) as their proposal was
in keeping with the Foundation’s vision. Ms. Hawkinson outlined MWF’s proposal of a 100% workforce
housing development with 62 one-, two- and three-bedroom units with underground parking, first floor
patios, and a connection to the bike trail. The proposed rents would serve households with incomes between
30% and 70% of the Area Median Income. She explained in detail the financing and reasons for the HRA’s
Minutes/HRA/June 11, 2020
Page 2
acquisition of the site from The Foundation as well as the HRA’s interest in having the Foundation maintain
ownership until MWF had their financing secured and were prepared to assume ownership. To secure the
intent of the land-sale write-down for the development of affordable housing, staff was also seeking approval
of a redevelopment agreement between the HRA and Amundson Flats, LP. Ms. Hawkinson summarized the
key terms of the redevelopment agreement that included a Declaration of Covenants and Restrictions that
would be in place for 40 years and how if construction did not commence by January 2, 2021, the HRA could
require the property be transferred back to the HRA.
The HRA asked how to ensure the terms are followed up upon with our investment. Mr. Selke responded
to the clawback provision and how the HRA could take the property back to ensure the project was created
as outlined. Ms. Hawkinson added the group was fully funded then spoke about final stages of financing that
had to be approved.
Chair Hovland opened the public hearing at 7:50 a.m.
Public Testimony
Chris Stokka, MWF Properties, addressed the Board and shared how the construction date of 2021 was
worst case scenario and their intent to break ground July or August of 2020. He noted how complicated
redevelopment agreements could be and complemented staff and legal counsel on the remarkable job that
addressed all comments regarding this project.
Commissioner Staunton moved to close the public hearing. Member Brindle seconded the motion.
Rollcall:
Ayes: Anderson, Brindle, Fischer, Staunton, Hovland
Motion carried.
Commissioner Staunton moved to adopt Resolution No. 2020-03 Authorizing Sale of Land to
Amundson Flats, Limited Partnership and approve the Redevelopment Agreement. Member
Fischer seconded the motion.
Rollcall:
Ayes: Anderson, Brindle, Fischer, Staunton, Hovland
Motion carried.
VIII. REPORTS/RECOMMENDATIONS
VIII.A. APPROVE A REVOLVING LOAN AND GRANT TO EXPAND LAND TRUST PROGRAM –
APPROVED
Ms. Hawkinson stated the City had been supporting the West Hennepin Affordable Housing Land Trust
(WHAHLT), dba Homes Within Reach (HWR), since 2007 through the allocation of the City’s Community
Development Block Grant program funds. Since that time, 14 houses had been placed into a Land Trust to
remain affordable for 99 years. The proposed revolving loan program was designed to expand the Homes
Within Reach program number of affordable ownership homes in Edina by removing funding limitations
through the creation of an Edina Revolving Loan program (ERLP) with two major provisions. She described
in detail the Community Land Trust practice that would result in 7-12 families would be offered permanently
affordable work-force housing. She outlined the target clientele and populations that would benefit from
the activity and the community needs this activity addressed then outlined the budget request for $1,300,000
Revolving loan with an $840,000 Grant.
The HRA commented how this proposal had been presented in detail in earlier worksessions and how the
HRA was pleased with the proposal. They thanked staff for the idea of partnership with WHAHLT and how
connected Ms. Hawkinson was with these programs and her ability to be creative to create programs that
would help the community.
Minutes/HRA/June 11, 2020
Page 3
Motion made by Commissioner Staunton, seconded by Commissioner Anderson, to approve
a Revolving Loan and Grant to expand Land Trust Program and authorize staff to engage
attorney to draft grant agreement and other necessary legal documents. Member Anderson
seconded the motion.
Rollcall:
Ayes: Anderson, Brindle, Fischer, Staunton, Hovland
Motion carried.
VIII.B. GRANDVIEW 2 TIF DISTRICT – PROGRAMMING FUNDS FOR PUBLIC INFRASTRUCTURE
– REPORT RECEIVED
Economic Development Manager Neuendorf shared this item pertained to construction of public
infrastructure to serve the Grandview District. With incremental taxes beginning to be collected, staff
recommended that a slate of public improvements be pursued to allow redevelopment goals of the TIF
District to be achieved in the future. He outlined establishment of the Grandview 2 Tax Increment Financing
(TIF) District established in 2016 to provide a funding source for public redevelopment improvements in
portions of the Grandview District and potential improvements described in the 2012 Framework and
subsequent Transportation Plan. He said the TIF District covered approximately 10.8 acres and included 15
parcels and adjacent streets. Since the time the TIF District was established, the Edina School District sold
their property for private development. The Avidor – a new 55+ age-restricted apartment complex was
constructed on that property and completed in 2019. No decision has been made about the development
of the City’s vacant property at 5146 Eden Avenue. After considering several options for combinations of
public and private uses on the site from 2016 - 2018, a preferred scenario has not yet been identified. It did
not appear that a development plan for the City’s vacant site would be decided in the near future and in
order to comply with the 5-year rule in Minnesota TIF Statutes, staff considered alternative strategies to
achieve some of the goals identified in previous planning efforts that included delayed action on the City’s
vacant parcel at 5146 Eden Avenue and design and construction of a variety of public improvements using
the incremental property taxes generated by the completed The Avidor project. Mr. Neuendorf summarized
the goals and scope of public improvements and provided revenue projections that informed the
recommendation to issue public debt to finance these improvements and noted we had to commit to funding
by June of next year otherwise funding would be lost.
Finance Director Uram stated staff worked with Ehlers and Associates to see what could be afforded through
bonds and any potential concern with reduction of market value and debt service but that staff was fairly
certain this would be unlikely and that coverage would be provided at 105% and that this proposal would
make sense.
The Board asked if The Avidor was reduced and rents fall did that lessen the value of building and therefore
lessen cash flow. Mr. Uram said staff was confident funds could be paid from other sources and be
reimbursed and noted this did not include any other projects other than The Avidor.
The Board asked about the number of projects and how far did we have to go to risk reaching the end
without making enough projects. Mr. Neuendorf said staff ran 10-12-year projections and determined a
debt of $5 million could be repaid in 10 years but added the HRA would have to make a firm funding
commitment and project scope and debt issuance but was not required to have all projects constructed.
City Engineer Millner identified a slate of improvements that could be readily designed and constructed in
2021-2022 which were derived from the 2016 Transportation Plan and other redevelopment studies for the
Grandview District and included planning, design, construction, acquisition and administration. He said if
approved this would align well with project schedules and built next year then noted Hennepin County was
replacing the bridge on Vernon Avenue and timing would be good. He spoke about the Interlachen
intersection that would still allow improvements to occur and discussions about lane assignments and if
Vernon would be within the project scope then spoke about staff’s analysis about County road turnbacks
that would likely cost the City more and still involve the decision to move from four to three lanes.
Minutes/HRA/June 11, 2020
Page 4
Mr. Neuendorf shared in detail areas that would qualify within the boundary and stay within district. Mr.
Millner said staff would obtain feedback from businesses regarding parking challenges and additional parking
needs by Washburn-McReavy as well as the redevelopment project of the church on the southwest corner
of the intersection that could include a roundabout and need to adjust the lift station. He said the TAC
started meeting monthly and the engagement team would do work later in the summer with the hope to
award a contract spring 2023.
The Board reviewed the proposed projects and categorized the need for a plan to allocate future TIF dollars.
Mr. Neuendorf spoke about the possibility of steps for the new public works site that could include office,
medial office, and retail and direction needed pending the housing task force and said in order to spend
future TIF dollars we would have to satisfy the five-year rule and issue a TIF note by this time next year. He
noted this was TIF District #2 that could deliver goals and a third be created as a way to get additional
improvements.
Mr. Uram said staff made a conservative estimate based on The Avidor but would review and make
assumptions about issuing debt based on those assumptions but said he was unsure the work to make those
assumptions would be worth the effort to identify other projects.
The Board commented about the element of risk typically not taken but after review of estimates it could
be worth the effort as this was an incredible opportunity to ultimately fund the public works site then asked
if anything was inconsistent with Maxfield or the housing group and their recommendations. Mr. Neuendorf
stated a medical office would fit well on that site as a complimentary use.
Mr. Neal believed it would be a bit of time before recommendations would be presented and stated it would
be valuable to staff for the Board’s opinion regarding this redevelopment project or do we want more of a
process. The Board discussed the potential of an RPF and reengagement to refund money paid and the
desire for a public element for this site in the future. Discussion was held regarding the potential of involving
Frauenshuh Commercial Real Estate again and the need for a worksession to review this route. Mr. Neal
agreed that reengagement with Frauenshuh would be the fastest process and the need for the Board to
decide whether an RFP would be the best process. Board consensus was to include this discussion on a
future worksession agenda.
Motion made by Commissioner Anderson, seconded by Commissioner Fischer, to authorize
staff to solicit engineering and design of public improvements in the Grandview 2 Tax
Increment Financing (TIF) District.
The Board confirmed whether decisions regarding the public works site should come before this approval.
Mr. Neal confirmed this decision was not approving any contract but direction staff to begin conversations
with engineering firms.
Roll call:
Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland
Motion carried.
IX. CORRESPONDENCE AND PETITIONS
IX.A. CORRESPONDENCE
Chair Hovland acknowledged the Council’s receipt of various correspondence.
X. HRA COMMISSIONERS’ COMMENTS – Received
XI. EXECUTIVE DIRECTOR’S COMMENTS – Received
XII. ADJOURNMENT
Minutes/HRA/June 11, 2020
Page 5
Motion made by Commissioner Brindle, seconded by Commissioner Fischer, to adjourn the
meeting at 9:10 a.m.
Roll call:
Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland
Motion carried.
Respectfully submitted,
Scott Neal, Executive Director
Date: June 25, 2020 Agenda Item #: VI.B.
To:Chair & Commissioners of the Edina HRA Item Type:
Claims
From:Don Uram, Finance Director
Item Activity:
Subject:Approve Payment of Claims 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 approve payment of claims for HRA Check Register 05.21.20-06.18.20 TOTAL $118,563.51.
INTRODUCTION:
Payment of claims are attached.
ATTACHMENTS:
Description
HRA Check Register 05.21.20-06.18.20 TOTAL $118,563.51
6/17/2020CITY OF EDINA 18:47:53R55CKS2LOGIS600V
1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection.
6/18/20205/21/2020 -
Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div
447230 5/21/2020 148262 BEAUJO'S WINE
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520750 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447268 5/21/2020 148263 DOODAH, INC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520747 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447272 5/21/2020 100049 EHLERS & ASSOCIATES INC.
09232 146136250.00 9232TIF REPORTING - 2019 521010 83476 PROFESSIONAL SVC - OTHER CENTENNIAL TIF DISTRICT
250.00
447279 5/21/2020 148261 FINLAND BOSTON TWO, LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520752 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447295 5/21/2020 148268 HARRIET AND ALICE LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520751 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447312 5/21/2020 148265 JETT MAKEUP, LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520748 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447344 5/21/2020 148266 NAKAMORI JAPANESE INC.
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520749 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447346 5/21/2020 148259 N-E FITNESS
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520746 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447355 5/21/2020 148260 PACIFIER, LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520755 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447364 5/21/2020 148267 PREVIOUSLY LOVED, LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520753 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447394 5/21/2020 148264 THE GLOW LOUNGE, LLC
09210 1461029,000.00 9210SB EAP FORGIVE LOAN 520754 FORGIVABLE LOAN CONTRACTUAL SERVICES HRA ADMINISTRATION
9,000.00
447514 5/28/2020 100730 DORSEY & WHITNEY LLP
09238 1461312,045.00 9238AMUNDSON LEGAL WORK 521473 3578171 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT
2,045.00
447828 6/4/2020 146885 CONSTRUCTIVE BUILDING ADVISORS, LLC
6/17/2020CITY OF EDINA 18:47:53R55CKS2LOGIS600V
2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection.
6/18/20205/21/2020 -
Check #AmountDate Supplier / Explanation PO#Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div
09232 146710525.00 9232CENTER RAMP INSPECTOR 522040 2019-07-2 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
525.00
447875 6/4/2020 141259 MEYER CONTRACTING INC.
09235 1267108,872.11 9235WDDALE VVIEW SIGNAL 521962 ENG 19-18 FINAL EQUIPMENT REPLACEMENT VALLEY VIEW/WOODDALE TIF
8,872.11
447975 6/11/2020 100664 BRAUN INTERTEC
09232 1467106,153.90 9232NORTH RAMP - ENVIRONMENTAL 522770 B209478 EQUIPMENT REPLACEMENT CENTENNIAL TIF DISTRICT
6,153.90
448012 6/11/2020 100730 DORSEY & WHITNEY LLP
09240 126131387.50 9240PENT PARK - LOOKBACK 522781 3585266 PROFESSIONAL SERV - LEGAL PENTAGON PARK DISTRICT
387.50
448158 6/11/2020 100438 STANTEC CONSULTING SERVICES INC.
09210 1420665,800.00 92106600 FRANCE TIF INSPECTION 522817 1657953 ESCROW DEPOSITS HRA ADMINISTRATION
5,800.00
448206 6/18/2020 114475 ARMOR SECURITY INC.
09248 126102165.00 92484100 SECURITY 523024 229450 CONTRACTUAL SERVICES WEST 76TH STREET TIF DIST
165.00
448245 6/18/2020 100730 DORSEY & WHITNEY LLP
09247 1261032,400.00 9247AMUNDSON LEGAL WORK 522985 3585270 PROFESSIONAL SERVICES 70TH AND AMUNDSON TIF DIS
09238 1461311,845.00 92384100 - LEGAL 523039 3585267 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT
4,245.00
448316 6/18/2020 121444 OFFICE OF THE SECRETARY OF STATE
09210 146105120.00 9210NOTARY523074NOTARY COMMISSION
APP
DUES & SUBSCRIPTIONS HRA ADMINISTRATION
120.00
Report Totals 118,563.51
Date: June 25, 2020 Agenda Item #: VI.C.
To:Chair & Commissioners of the Edina HRA Item Type:
Request For Purchase
From:Chad A. Millner, P.E., Director of Engineering and
Bill Neuendorf, Economic Development Manager Item Activity:
Subject:Request for Purchase: 50th and France Paver
Replacements
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 use of incremental property taxes to partially fund public sidewalk improvements at the 50th and France
Business District.
INTRODUCTION:
This item pertains to the use of TIF monies to partially fund public improvements at 50th & France. The City
Council approved the contract with Pember Companies on June 16, 2020. TIF monies will be used to ensure that
the full scope of work can be completed in 2020 without overburdening the adjacent property owners.
Staff recommends the cost distribution among property owners and several City-funds be approved.
ATTACHMENTS:
Description
Request for Purchase - brick pavers
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Date: June 16, 2020
To: Mayor and City Council
From: Chad A. Millner, PE, Director of Engineering
Subject: Request for Purchase: 50th and France Paver Replacement
Purchase
Subject to:
☒List Quote/Bid
☐State Contract
☐Service Contract
The
Recommended
Bid is:
☒Within Budget
☐Not Within Budget
Pember Construction $100,571.00
Background
With the work around the Nolan Mains Development Project, paver replacements have not
occurred over the past 2-years. Typically, the yearly budget for assessment back to the district is
$20,000. As part of the development project, the developer agreed to fund $28,000 towards paver
replacements in 2020.
This project will focus on replacements in the 2 areas most in need. Area 1 is the southwest
corner of Market Street and France Avenue. Area 2 is the area just west of the movie theater.
Work will also include pedestrian ramp installations to meet ADA requirements and storm sewer
improvements to address drainage and winter icing.
Date Bid Opened or Quote Received: Bid or expiration Date:
6/9/2020 8/9/2020
Company: Amount of Quote or Bid:
Pember Companies, Inc.
All Phase Contracting, Inc.
Blackstone Contractors LLC
Urban Companies
Thomas and Sons Construction
JL Theis, Inc.
Sunram Construction, Inc.
Paragon Restoration II, Inc.
$100,571.00
$114,373.26
$116,235.00
$118,390.00
$119,965.00
$120,788.00
$127,965.00
$160,957.00
Recommended Quote or Bid:
Page 2
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Department Director Authorization: ________________________________________
City Council Authorization Date: ______________ (for purchases over $20,000 only)
Budget Impact
This project will be funded by a variety of sources in the following approximate breakdown.
$40,000 Maintenance Assessment to the property owners
$10,000 Storm Sewer Fund
$10,000 PACS Fund
$28,000 Developer Contribution
$12,500 Centennial Lakes TIF – requires HRA approval
Environmental Impact
Staff is requiring face-mix pavers that require less maintenance and tolerate the harsh salt
conditions better. Old pavers will be removed and disposed of by the contractor.
Community Impact
The 50th and France District is a destination shopping and dining district. Keeping the paver
sidewalks in good aesthetic condition is required to keep the district vibrant. New pavers reduce
staff time managing repairs to failed pavers and reduces operations related to winter maintenance.
Date: June 25, 2020 Agenda Item #: VII.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Report / Recommendation
From:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:5146 Eden Avenue - Redevelopment and Re-use
Discussion
Discussion
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 discussion only.
INTRODUCTION:
This item pertains to the 3.3 acre vacant parcel owned by the Edina HRA at 5146 Eden Avenue.
It has been more than one year since re-use and redevelopment of this site has been discussed. Staff will provide
an update on the status of the property. There continues to be interest to redevelop this site. Staff seeks direction
from the HRA Board regarding the future of this site.
ATTACHMENTS:
Description
Staff Presentation
Discussion document January 2019
Previous concepts 2012 - 2018
The CITY of
EDINA
Redevelopment and Re-use of
5146 Eden Avenue
Housing and Redevelopment Authority
June 25, 2020
For Discussion Only
The CITY of
EDINA
1)Guiding principles
2)Current status
3)Options to consider
4)Suggested concept
5)Discussion
HRA Discussion 6/25/2020 www.EdinaMN.gov 2
Outline for Today’s Discussion
The CITY of
EDINA
HRA Discussion 6/25/2020 www.EdinaMN.gov 3
Seven Guiding Principles
The CITY of
EDINA
1)Redevelopment efforts on hold
1)- HRA last discussed Jan. and May 2019
2)- Task Force delayed from mid-2019 to Dec. 2020
2)Continued market interest in the site
1)- Multi-family and commercial
2)- Impact of COVID-19 is unknown
3)3.3 acre site unable to satisfy all interests
4)Concerns about public debt for new facilities
5)Incremental taxes now available to fund improvements
1)- June 2021 funding deadline
HRA Discussion 6/25/2020 www.EdinaMN.gov 4
Current Status
The CITY of
EDINA
All options
remain
available for
consideration
•Hold land for future redevelopment
•- public or private
•Sell or Lease property and use
proceeds for other purposes
•Build a new public facility on the site
•Split the property
•- hold part and sell part
HRA Discussion 6/25/2050 www.EdinaMN.gov 5
Options to Consider
The CITY of
EDINA
•Define preferred outcomes and seek developers
•Avoid duplication of private-sector multi-family
•Identify required public realm elements
•Senior cooperative with parking
•Public outdoor plaza
•Commercial or future public use
•Prepare to develop a portion of site in 2021 - 22
•Modify TIF District to finance public benefits
HRA Discussion 6/25/2020 www.EdinaMN.gov 6
Suggested Strategy & Concept
- Pursue public improvements in 2020 - 21
- Pursue mixed-uses on the site in 2021- 22
The CITY of
EDINA
HRA Discussion 6/25/2020 www.EdinaMN.gov 7
Suggested Strategy & Concept
– Pursue mixed-uses on the site in 2021-22
CONCEPT
For discussion only
Future Housing
with Parking
Future
Public Plaza
Future Public or
Commercial
The CITY of
EDINA
1)Is the suggested time frame agreeable?
2)Is a mixture of uses agreeable?
3)Is the process agreeable?
4)Should staff accept meetings with developers now?
HRA Discussion 6/25/2020 www.EdinaMN.gov 8
The CITY of
EDINA
Grandview 2 TIF
District parcel
boundaries
HRA Discussion 6/25/2020 www.EdinaMN.gov 9
51
46
The CITY of EDINA
Redevelopment and Re-use of
5146 Eden Avenue
Discussion of Next Steps
Housing and Redevelopment Authority
January 17, 2019
For Discussion Only
The CITY of EDINA
1)History of recent efforts
2)Lessons learned
3)Options to consider
4)Preliminary recommendation
5)Discussion
6)Next Steps
HRA Discussion 1/17/2019 www.EdinaMN.gov 2
Outline for Today’s Discussion
The CITY of EDINA
HRA Discussion 1/17/2019 www.EdinaMN.gov 3
History of Recent Efforts
The CITY of EDINA
HRA Discussion 1/17/2019 www.EdinaMN.gov 4
History of Recent Efforts Seven Guiding Principles
The CITY of EDINA
1)The site could accommodate one or two buildings
2)Only so much building will fit on a 3.3 acre site
3)The current use of the railroad tracks is likely to remain unchanged
4)The elevation change complicates site planning
5)A shared street along the northern edge would not be able to
connect across the tracks for many years
6)There is no interest from Metro Transit in a park-and-ride
7)Structured parking is necessary to maximize use of the site
8)Structured parking is expensive, especially if no revenue is generated
HRA Discussion 1/17/2019 www.EdinaMN.gov 5
Lessons Learned
-Site Planning
The CITY of EDINA
1)There are many ‘wants’ for a new public facility but fewer ‘needs’
2)Past efforts have been based on a site looking for a “public facility”
instead of a well-supported public facility searching for the best site
3)A new large-scale public facility will increase the tax burden to
Edina tax payers
4)$30-50 million in new public debt may impact the City’s / HRA’s
credit rating
5)District parking may not be essential in this area
HRA Discussion 1/17/2019 www.EdinaMN.gov 6
Lessons Learned
-Public Facilities
The CITY of EDINA
1)There is solid market interest in the property
2)The current economy creates good conditions for a sale
3)The property is valuable
4)Incremental property taxes could be used to fund public
improvements throughout Grandview
HRA Discussion 1/17/2019 www.EdinaMN.gov 7
Lessons Learned
-Real Estate Interest
The CITY of EDINA
All options
remain
available for
consideration
•Hold land for future redevelopment
•Sell or Lease property and use
proceeds for other purposes
•Build a new public facility on the site
•Split the property
•- hold part and sell part
HRA Discussion 1/17/2019 www.EdinaMN.gov 8
Options to Consider
The CITY of EDINA
If Selling or Leasing …
•What are the preferred uses?
Residential? Commercial? Medical?
•How will the site be laid out?
•Will any portion be available to the
public?
If Holding or Building a new
public facility …
•What are the uses of the public facility?
•How will it be funded?
•Who will operate the facility?
HRA Discussion 1/17/2019 www.EdinaMN.gov 9
Options to Consider
The CITY of EDINA
•This may not be the best location for a new large-scale community facility
•Any new public facility on the site should fulfill a clear community need
and have a clearly defined budget
•Staff has concerns with issuance of $30 to $50 million in new public debt
in 2019-2020 for a community facility at this site
•Consider selling all or a portion of the site in 2019
•Consider using a portion of the site to deliver new affordably-priced
housing; perhaps arranged as townhouses, condominiums or co-ops,
which are not currently being provided by the private sector
HRA Discussion 1/17/2019 www.EdinaMN.gov 10
Preliminary Recommendation
– Re-use of the Site
The CITY of EDINA
Any Request for Proposal must clearly
define the expectations of the HRA:
•How much land to be sold?
•What are preferred uses?
•How much public or open space must be
provided?
•What is the minimum sale price?
•How will incremental taxes be used?
1)Issue Request for
Proposals in Spring 2019
2)Evaluate Proposals and
negotiate terms in
summer 2019
3)Take action in Fall 2019
HRA Discussion 1/17/2019 www.EdinaMN.gov 11
Preliminary Recommendation
– Process to Evaluate and Act
The CITY of EDINA
HRA Members -
What are your visions,
goals and suggestions
for the site?
How would you suggest
proceeding in 2019?
HRA Discussion 1/17/2019 www.EdinaMN.gov 12
Discussion
The CITY of EDINA
Staff will prepare a
recommendation based
on these suggestions.
The recommendation
will be presented for
consideration at a future
HRA meeting.
HRA Discussion 1/17/2019 www.EdinaMN.gov 13
Next Steps
5146 Eden Avenue
Redevelopment Concepts Previously Investigated
2012-2018
1
2
Prepared by 2010 Community Advisory
Team; approved by City Council in 2012
2016 - City engages
HRA &Pros to study
community center
Concludes
Frauenshuh planning
contract
2018 - City re-engages
Frauenshuh to study
high-rise and mid-rise
options with arts/senior center but
does not execute final
agreement
3
2012 Framework Concept
•25k Sq.Ft. public building
•District parking garage
•Access to train tracks
•Multi-family residential
4
5
Concept #1 Central Civic with North Residential and South Office
Former Public Works Site
Discovering the Potential
May 19, 2015 Public Workshop
6
Concept #2 Central Civic with North Residential and South Residential
Former Public Works Site
Discovering the Potential
May 19, 2015 Public Workshop
7
Concept #3 North Civic with South Residential
Former Public Works Site
Discovering the Potential
May 19, 2015 Public Workshop
Preliminary Program
•60,000 + SF community center
•8,000 SF restaurant/café
•New east-west shared street
•outdoor civic plaza
•170-unit apartment building
•57% public land & 43% private
•Streetscaping of Eden & Arcadia
Widi f Adi
Former Public Works Site
Preliminary Concept
September 1, 2015
Concept illustration only.
Not for construction.
8
9
Former Public Works Site
Preliminary Concept – civic facility
September 1, 2015
Rendering of a potential community center as the
cornerstone of a public/private redevelopment
Concept illustration only.
Not for construction.
10
Former Public Works Site
Preliminary Concept – residential building
September 1, 2015
Rendering of a potential apartment building facing Eden Ave.
Concept illustration only.
Not for construction.
11
Former Public Works Site
Preliminary Concept – cross section
September 1, 2015
The hilly terrain presents challenges and opportunities. The existing
excavation can be used to mask the public parking below the new
community building.
Concept illustration only.
Not for construction.
12
Former Public Works Site
Preliminary Program for New Civic Facility
April 16, 2015
Performing Arts / Community Center Concept
•HGA Architects
•May 2016
•70,000 Sq. Ft.
•$43 million capital cost
13
Concept illustration only.
Not for construction.
High Rise Concept Study
•Studied Jan-March 2018
•Residential High-Rise
•Art/Senior civic facility
•Artist/affordable lofts
•District parking
•Green rooftop park plaza
14
Concept illustration only.
Not for construction.
High Rise Concept Study
•Studied Jan-March 2018
•Residential High-Rise
•Art/Senior civic facility
•Artist/affordable lofts
•District parking
•Green rooftop park plaza
15
Concept illustration only.
Not for construction.
•140-150 Apartments
•20k to 50k Sq Ft Arts & Senior Facility
•Shared Parking
•May to September 2018
16
Concept illustration only.
Not for construction. Mid-Rise Concept Study
17
1.8 acres retained
for public use
1.5 acres sold
for private use
Conceptual Community Arts and Active Adult Center
July 2018
Concept illustration only.
Not for construction.
18
Conceptual Community Arts and Active Adult Center
July 2018
Concept illustration only.
Not for construction.
To date, none of these concepts have moved past the exploratory phase.
Unresolved hurdles include:
•Undesirable real estate terms
•High cost of public building
•Increase in debt burden to City taxpayers
•Unclear on size, programs and need for new public facility
•High cost of structured parking for non-revenue generating public facility
19
Date: June 25, 2020 Agenda Item #: VIII.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Other
From:Liz Olson, Administrative Support Specialist
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:
There has been no correspondence since the last meeting.
Date: June 25, 2020 Agenda Item #: IX.A.
To:Chair & Commissioners of the Edina HRA Item Type:
Other
From:Bill Neuendorf, Economic Development Manager
Item Activity:
Subject:Project Update 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 summary of redevelopment projects of interest to the Housing and Redevelopment
Authority. Staff is available to answer questions about these projects.
ATTACHMENTS:
Description
Project Update June 2020
HRA Redevelopment Project Update
June 25, 2020
Address Project Description Status 44th and 50th & France 4500 France
Ave.
Redevelopment of Edina
Cleaner site and construction
of “The Lorient” – a 3-4 story
apartment building with street
level commercial space and
public parking
Construction is in progress. Completion
anticipated Fall 2020.
3925 Market
St.
Redevelopment of the former
Center Parking Ramp and
construction of “Nolan Mains”
apartments and the new
“Center Ramp”
Construction substantially completed Nov 2019.
TIF Certificate of Completion issued 1/31/2020.
Residential units 75% occupied. Retail space
approx. 40% leased.
3930-3944
Market St.
Expansion of North Parking
Ramp to include more public
parking and first floor retail
space
Construction was complete in October 2018.
The retail bays were sold to the Developer in
October 2019. Basecamp Fitness opened March
2020. Soul Cycle build-out delayed due to
COVID-19. Grandview District 5146 Eden
Ave.
Vacant site; formerly Edina
Public Works
The future redevelopment of this site was
discussed in January and May 2019. Actions were
paused until the local housing market is better
understood.
Staff will discuss timing, deadlines and direction
in June 2020.
NA
Reconstruction of the
Interlachen Blvd and Vernon
Ave. intersection
This project was completed in Fall 2019.
Construction was paid for using TIF funds.
NA Improvements to public
streets and parking structure
Staff is preparing scope and budget to make
public improvements in 2021-2022 using TIF
funds. Full proposal anticipated Q3 2020.
Edina HRA Project Update
June 25, 2020
Page 2
Address Project Description Status Wooddale – Valley View NA
Traffic signals at Wooddale
and Valley View Road
intersection (CIP #19-305)
This project was completed in Fall 2019.
Construction was paid for using TIF funds.
4416 Valley
View Rd.
Redevelopment of vacant
parcels, commercial site and
single family houses into Edina
Flats – 18-condominium units
The HRA sold two parcels to the developer in
Spring 2018. Construction is nearly complete.
Six units remain available for purchase as of
5/15/2020.
The developer indicates the 2-story building on
Oaklawn will not be constructed at this time.
4412 Valley
View Rd.
Expansion of commercial
building to accommodate new
day care facility
New Horizons Day Care opened to the public in
Spring 2020.
4425 Valley
View Rd.
Redevelopment of old day
care into potential 3-story
apartment with 21 units
Developer presented “sketch plan” concept to
City Council and neighbors for input in Spring
2020 Greater Southdale Area 7001 York
Ave.
Redevelopment of Hennepin
County’s Southdale Regional
Library site
The Service Center and Judicial Facility were
relocated in 2016 and 2019, respectively.
Hennepin County intends to relocate the
Southdale Regional Library to the Southdale
Center Mall as an anchor in a multi-tenant
expansion in 2021-2023.
The fate of this site will be determined by
Hennepin County in the future, after the new
Library is operational.
7001-7025
France
Avenue
US Bank intends to redevelop
the 5+ acre site. A new bank
would be constructed in
addition to other market-
driven elements.
City staff, Planning Commission and City Council
offered non-binding comments to a prospective
developer in Summer/Fall 2019. The developer
indicated that TIF may be necessary to achieve
the goals identified in the Greater Southdale
Guidelines.
The property owner is seeking a new developer
to submit a full proposal. It is likely that a future
developer will request TIF.
Edina HRA Project Update
June 25, 2020
Page 3
Address Project Description Status Greater Southdale Area, continued 6600-6800
France
Avenue
The owner is considering a
variety of possible
improvements to the 22-acre
site.
The owners determined that the previously
approved site plan is not feasible. They
partnered with McGough to explore potential
redevelopment paths and plan to hold a
neighborhood meeting to get input.
The developer indicates that structured parking
and public realm improvements can be possible if
the City/HRA is willing to use TIF to compensate
for the added costs.
Staff continues to work with the developer. An
updated site plan is anticipated in 2020 or 2021.
3250 W. 66th
Street
Millennium Sixty Six Edina -
The 3.5 acre site will be
redeveloped into two
apartment buildings. The first
building has 227 units,
including 11 affordable units.
Construction began in summer 2019.
Completion is anticipated in late 2020 or spring
2021.
The second phase is anticipated to be
constructed on the adjacent parcel in the future.
3200
Southdale
Circle
The former Best Buy store
was demolished and replaced
with the new Aria Edina
apartments.
The project was substantially completed in
August 2019. This parcel is in the Southdale 2
TIF District, but no TIF monies are used on this
project.
250
Southdale
Center
The former JC Penney anchor
store was demolished and
replaced with Lifetime Fitness,
Lifetime Work and Lifetime
Sport facilities along with retail
space and a new entrance to
the shopping mall.
Lifetime Athletic, Lifetime Sport, and Lifetime
Work held their grand opening December 2019.
The opening of 3 new in-line stores is delayed
due to COVID-19.
This parcel is in the Southdale 2 TIF District, but
no TIF monies are used on this project.
200
Southdale
Center
The former Herberger anchor
is vacant and expected to be
redeveloped into a mixed-use
building. The final combination
of uses and layout is uncertain
Hennepin County is interested in the site for a
new Regional Library. Other parties have
expressed interest in this site as well – including
grocery and residential users.
Submission of concept plans were anticipated in
Spring 2020 but appear to be delayed due to
COVID-19.
This parcel is in the Southdale 2 TIF District, but
TIF monies have not been discussed at this time.
Edina HRA Project Update
June 25, 2020
Page 4
Address Project Description Status Greater Southdale Area, continued 6801 France
Ave.
Construction of a new RH
Gallery store in the overflow
parking lot.
This project was completed in September 2019.
This parcel is in the Southdale 2 TIF District, but
no TIF monies are used on this project.
4040 West
70th Street
The office building has been
sold and is expected to be
redeveloped for affordable
senior housing.
The Edina Housing Foundation acquired the site
using funds loaned by the HRA. A development
partner will be sought in Summer 2020.
This parcel is in the Southdale 2 TIF District. TIF
pooled funds were used to finance the purchase.
7008 Sandell Preservation of 11-unit
affordable apartment building
Aeon closed on the purchase of this building in
July 2019. The HRA contributed $350,000
towards the purchasing price using pooled funds
from Southdale 2 TIF.
3501 Galleria
The existing Gabberts anchor
is anticipated to be
redeveloped after the tenant
moves to their new location.
The furniture store will close the Edina location
in July 2020. No plans have been received at this
time. Redevelopment appears to be delayed due
to COVID-19.
6950 France
An outdated office building
was demolished and replaced
with a new retail facility – the
Shoppes at Estelle.
Construction is underway for the anchor
furniture tenant: Roche Bobois. Tenants are
being sought for the remainder of the new
building.
This parcel is in the Southdale 2 TIF District, but
no TIF monies are used on this project.
7200 and
7250 France
Ave.
Demolition and
redevelopment of two older
office buildings
Zoning approvals and TIF Agreements were
completed in late 2018 and April 2019. The
developer indicates that the approved plan (even
with TIF financing) is not financially feasible. They
have been unable to secure full financing.
The developer intends to modify the site plan
and return to seek City approval. Staff expects a
new proposal in 2020.
3650
Hazelton
Construction of 18-story
luxury high rise called The
Bowers Residences.
Construction began in Spring 2020 by Greystar.
This project is privately funded.
4100 W. 76th
St.
Redevelopment of vacant
office/studio to become 70-
units of affordable housing by
Aeon called The Sound on
76th.
The HRA purchased the site in Fall 2019 and will
sell it to the developer when full funding is
secured in late Summer 2020. Construction is
anticipated to begin Fall 2020.
Edina HRA Project Update
June 25, 2020
Page 5
Address Project Description Status Pentagon Park 4815-4901
W. 77th St.
and 7710
Computer
Ave.
Pentagon Village -
Redevelopment of 12-acres of
the Pentagon Park South
property for retail, hotels and
market-driven
office/residential uses by
Solomon Real Estate &
Hillcrest joint venture.
TIF Agreement was approved in October 2018
and construction began soon after. The HRA
issued 3 TIF Notes on July 12, 2019 to reflect
the $18.1 million invested in the site work. Site
work, road work and the parking garage is
complete. The public plaza is complete.
Construction of the two retail shells is nearly
complete. Tenant build-out is delayed due to
COVID-19. The construction of the Marriott
hotel is delayed due to COVID-19. The
extended stay hotel was not able to secure
financing and the developer is exploring different
options for that pad. The developer is also
actively seeking tenants for the first office
building.
4701 W. 77th
St.
Redevelopment of vacant
office building
A developer submitted a concept plan to
demolish the existing building and construct a 6-
story building with 2 levels of parking and 4
levels of apartments.
Due to high site improvement costs, it does not
appear that this concept is moving forward. 70th & Cahill 7075
Amundson
Former site of Waldorf
Nevins dry cleaning facility –
redeveloped as 62 affordable
housing units by MWF
Properties.
Edina Housing Foundation owns the vacant site.
The HRA intends to acquire and resell to MWF
Properties in June 2020. Construction is
anticipated to begin in July 2020.
Prepared June 18, 2020