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HomeMy WebLinkAbout2021-03-11 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota V IRTU AL M EETIN G Thursday, March 11, 2021 7:30 AM Watch the meeting on cable TV or at EdinaMN.gov/LiveMeetings or Facebook.com/EdinaMN. To participate in Community Comment: Call 800-374-0221. Enter Conference ID 7184406. Give the operator your name, street address and telephone number. Press *1 on your telephone keypad when you would like to get in the queue to speak. A City sta8 member will introduce you when it is your turn. 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 January 28, 2021 B.Approve Payment of Claims VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.5146 Eden Avenue - Methodology to Determine Fair Market Value B.Housing Rehabilitation Loan Program C.Approve Amended Partnership with Metro HRA to Expand the Family A.ordable Housing Program and Authorize Sta. to Engage an Attorney to Draft Legal Agreements VIII.HRA Commissioners' Comments IX.Executive Director's Comments A.Project Update - 4917 Eden Avenue X.Adjournment The Edina Housing and Redevelopment Authority wants all participants to be comfortable being part of the public process. If you need a ssista nce in the way of hearing ampliDcation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: Marc h 11, 2021 Agenda Item #: VI.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of R egular Meeting January 28, 2021 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the regular minutes of January 28, 2021. I N TR O D U C TI O N: S ee attached meeting minutes of J anuary 28, 2021. AT TAC HME N T S: Description Draft Minutes of Regular Meeting January 28, 2021 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY ELECTRONIC WEBEX JANUARY 28, 2021 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 Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland. Absent: None. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Anderson, seconded by Commissioner Jackson, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED AS PRESENTED Member Jackson made a motion, seconded by Member Pierce, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting of December 10, 2020 VI.B. Approve minutes of the Regular Meeting of December 17, 2020 VI.C. Edina Housing Foundation Appointments VI.D. Resolution No. 2021-01; Designating Official Newspaper VI.E. Resolution No. 2021-02; Designating Official Depositories Rollcall: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. ELECTION OF OFFICERS - APPROVED Executive Director Neal stated the by-laws of the HRA provided for the designation of officers. He explained the Chair would preside at meetings and execute all contracts, the Vice Chair would step in during times when the Chair was unavailable, and the Secretary co-signed all contracts. Motion by Commissioner Staunton, seconded by Commission Jackson, to approve the election of officers as stated with , Mayor as Chair, Anderson Vice, Pierce as Secretary. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Minutes/HRA/January 28, 2021 Page 2 VII.B. APPOINTMENT OF EXECUTIVE DIRECTOR OF THE HRA - APPOINTED Executive Director Neal said the City Council previously designated his role as Executive Director of the HRA and requested the Council affirm this designation by motion. The proposed term of this appointment would be concurrent with employment as City Manager. Motion by Commissioner Jackson, seconded by Commission Anderson, to appoint Scott Neal as Executive Director of the HRA. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII.C. MEMORANDUM OF UNDERSTANDING PERTAINING TO REDEVELOPMENT OF 5146 EDEN AVENUE – APPROVED Economic Development Manager Neuendorf said the item pertained to the potential re-use and redevelopment of vacant land owned by the Housing & Redevelopment Authority located at 5146 Eden Avenue. The re-use of this site has been discussed for many years and potential ideas have been pursued since 2008. None of those previous concepts was able to move forward. A Memorandum of Understanding had been prepared by City Attorney Kendall to establish a temporary working arrangement with Frauenshuh and United Properties to see what could realistically be constructed on this site. He outlined the four specific items desired for this site included a new commercial building, new housing development for-sale/cooperative project for seniors, public plaza and new pedestrian bridge over railroad tracks with future access path if the train was no longer used as freight line. Mr. Neuendorf said the City would not want to see any park and ride as Metro Transit no longer wanted one in this area then explained the site would not include any publicly-owned facility as it had been concluded a new facility was not big enough and too expensive. He spoke about fair value of the land and while the City would not receive the highest price through this method it would be a fair process and include the developer outlining their methodology on how they determined purchase price and agreed upon prior to any next steps. He said staff recommended approval of the Memorandum of Understanding. The Commission asked questions regarding clarification of language in Paragraph C and the 60-day timeline for approval. Mr. Neuendorf explained the language was designed so a decision was made in a timely manner and the methodology was not a firm dollar amount but a method explained for valuation upon full site plan submittal for the property. He outlined the process in more detail then suggested language amendments to consider methodology for developer’s determination of pricing within 60 days. Bill Anderson, Frauenshuh, said it was important within the 60-day timeline to set a framework for methodology for how valuation would be determined but not necessarily agree to any price. He said the discussion would be based on specific uses, mix of use, and density and the objective was not to determine price at this time and felt comfortable they would be able to do so within 60 days. City Attorney Kendall said if the understanding was that this was just consideration and no approval staff could modify the memorandum to removal approval language and change to characterization based on what the development partners wanted as well. The Commission expressed concerns with the proposal to determine valuation as it could be unfair to other property owners. Mr. Neuendorf clarified when the buyer and seller were on different paths a project could potentially not be worth moving forward so the memorandum would provide direction early on for a realistic plan that both parties would accept. Minutes/HRA/January 28, 2021 Page 3 Alex Hall, Frauenshuh, confirmed their group would be supportive of proposed density especially and the would be impacted by the City’s participation with affordable units and density. Mr. Neuendorf confirmed the City would work with our advisors as well before any decision was made. The Commission spoke about how project did not include a public building and was contrary to the Grandview Plan then stressed the importance of concepts and values achieved in any public space. They stated Paragraph 2G was important as it was non-binding and established valuation framework and representation for the parties to move forward to next steps and stressed the importance of seeking independent valuation data as part of this process and be clear on the intent of any property with appropriate public and mixed use that allowed the developer to be creative to that goal. Mr. Neal explained the difficulty of this discussion of public space and how staff felt this provision had been driving the discussions on how to include public buildings. He outlined reasons why the site could no longer be considered for uses such as a community center, art center, and fire station and staff’s realization that these uses were no longer feasible. Motion by Commissioner Anderson, seconded by Commission Pierce, to approve the memorandum of understanding as amended in paragraph 4C, consider a methodology for developers’ determination of purchase price within 60 days of the effective date of the MOU. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VIII. CORRESPONDENCE – Received IX. HRA COMMISSIONERS’ COMMENTS – Received X. EXECUTIVE DIRECTOR’S COMMENTS – Received XI.A. YEAR IN REVIEW – 2020 – Received Mr. Neuendorf shared the 2020 year in review report that highlighted accomplishments of working with businesses and residents in financial distress due to the pandemic, affordable housing construction, shared public parking, and others. XI.B. BY-LAW REVIEW– Received XI. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Staunton, to adjourn the meeting at 8:29 a.m. Roll call: Ayes: Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: Marc h 11, 2021 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: C laims F rom:Don Uram, F inance Director Item Activity: Subject:Approve P ayment of C laims Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: M otion to approve payment of claims for H R A Check Register 12.2020-02.2021 T O TAL $366,193.33. I N TR O D U C TI O N: P ayment of claims are attached. AT TAC HME N T S: Description HRA Check Register 12.2020-02.2021 TOTAL $366,193.33 City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 03/08/2021 13:11 User: LJefferson Program ID: apinvgla Page 1 YEAR/PERIOD: 2020/12 TO 2021/2 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION 26026000 HRA Administration 26026000 2066 HRA Admin - OthrEscrow 100049 EHLERS AND ASSOCIATE 85892 0 2020 12 INV P 122.50 20210226 456913 100664 BRAUN INTERTEC CORPO B239372 0 2020 12 INV P 6,000.00 20210205 456567 TIF inspection 7001 100664 BRAUN INTERTEC CORPO B241386 0 2021 2 INV P 1,426.00 20210226 456890 7001 France TIF esc 7,426.00 100730 DORSEY & WHITNEY LLP 3640789 0 2021 2 INV P 3,021.00 20210226 456908 ACCOUNT TOTAL 10,569.50 26026000 6102 HRA Admin - Contr Svrs 151968 CHRISTMAS DECOR OF T 0 0 2020 12 INV P 2,283.83 455956 SOUTH RAMP - LIGHTI ACCOUNT TOTAL 2,283.83 26026000 6103 HRA Admin - Prof Svrs 100049 EHLERS AND ASSOCIATE 85420 0 2020 12 INV P 122.50 455434 US BANK ANALYSIS ACCOUNT TOTAL 122.50 26026000 6104 HRA Admin - Conf&Schls 999990 US BANK - CREDIT CAR WILLIAM 11/12/2020 1 0 2020 12 INV P 50.00 20201208 ULI ECON FORECAST 999990 US BANK - CREDIT CAR WILLIAM 11/16/2020 1 0 2020 12 INV P 39.00 20201208 MN REJ TRAINING 999990 US BANK - CREDIT CAR WILLIAM 11/4/2020 17 0 2020 12 INV P 805.00 20201208 IEDC TRAINING 894.00 ACCOUNT TOTAL 894.00 26026000 6105 HRA Admin - Dues&Sub 999990 US BANK - CREDIT CAR WILLIAM 11/4/2020 17 0 2020 12 INV P 200.00 20201208 ULI - COM DEV LCOMM ACCOUNT TOTAL 200.00 26026000 6131 HRA Admin - PrfSvLegal 100730 DORSEY & WHITNEY LLP 3634400 0 2020 12 INV P 1,510.50 20210205 456593 ACCOUNT TOTAL 1,510.50 26026000 6136 HRA Admin - PrfSvOther 123129 TIMESAVER OFF SITE S #M26119 0 2020 12 INV P 438.00 20210129 456523 Dec 17 HRA Minutes 123129 TIMESAVER OFF SITE S #m26221 0 2021 2 INV P 151.00 20210305 457295 Jan 28 HRA Minutes 123129 TIMESAVER OFF SITE S M26044 0 2020 12 INV P 219.00 456070 11/12 HRA MINUTES 808.00 ACCOUNT TOTAL 808.00 26026000 6406 HRA Admin - SupOther City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 03/08/2021 13:11 User: LJefferson Program ID: apinvgla Page 2 YEAR/PERIOD: 2020/12 TO 2021/2 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION 101483 MENARDS INC 2889 0 2020 12 INV P 123.25 50 France plaza ele 999990 MICHAELS STORES 3739 2886 0 2020 12 INV P 184.14 50 Fr Plaza supplie 999990 PARTY CITY 1141 2887 0 2020 12 INV P 290.27 50 France plaza sup 999990 JERRY S DO IT BEST H 2888 0 2020 12 INV P 37.15 50 France plaza ele 999990 TARGET 000231 2890 0 2020 12 INV P 132.77 50 France plaza sup 999990 TARGET 000231 2891 0 2020 12 INV P 91.40 50 France elec supp 999990 TARGET 000231 2892 0 2020 12 INV P -64.50 50 France plaza sup 999990 PARTY CITY 1141 2893 0 2020 12 INV P -99.06 50 France plaza sup 999990 US BANK - CREDIT CAR WILLIAM 11/20/2020 1 0 2020 12 INV P 40.30 20201208 PLAZA SUPPLIES 999990 US BANK - CREDIT CAR WILLIAM 11/20/2020 1 0 2020 12 INV P 21.50 20201208 OFFICE SUPPLIES 633.97 ACCOUNT TOTAL 757.22 26026000 6710 HRA Admin - Cap Other 105690 PRO-TEC DESIGN INC 99486 0 2020 12 INV P 624.30 20210129 456489 HRA SOUTH RAMP CAME 120784 WALSH GRAPHICS INC 15738 0 2020 12 INV P 222.00 455090 50 FRANCE STREET DI ACCOUNT TOTAL 846.30 ORG 26026000 TOTAL 17,991.85 26026001 HRA Affordable Housing 26026001 6102 HRA Aff Hs - Contr Svrs 103252 VEAP INC (VOLUNTEERS 211273 0 2021 1 INV P 100,000.00 20211902 20201409 VEAP Emergency Rent ACCOUNT TOTAL 100,000.00 26026001 6103 HRA Aff Hs - Prof Svrs 146661 AFFORDABLE HOUSING 2020-257 0 2020 12 INV P 7,240.00 20210129 456240 REPORTING FEES ACCOUNT TOTAL 7,240.00 26026001 6122 HRA Aff Hs - AdvOther 100050 USPS 3029 0 2021 2 INV P 685.22 20210212 456859 134387 MIDWEST MAILING SYST 78889 0 2021 2 INV P 247.54 20210305 457205 ACCOUNT TOTAL 932.76 ORG 26026001 TOTAL 108,172.76 26126103 Southdale 2 TIF 26126103 6103 SoDa 2 TIF - Prof Svrs 100049 EHLERS AND ASSOCIATE 85891 0 2020 12 INV P 605.00 20210205 456595 Financial guidance 105693 BGH INVESTMENTS INC 45766 0 2021 2 INV P 23.93 20210305 457112 Courier for 4100 Cl ACCOUNT TOTAL 628.93 City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 03/08/2021 13:11 User: LJefferson Program ID: apinvgla Page 3 YEAR/PERIOD: 2020/12 TO 2021/2 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION 26126103 6105 SoDa 2 TIF - Dues&Sub 101503 HENNEPIN COUNTY UNPAID FULL YR AMT 0 2020 12 INV P 487.91 455791 4100 PROPERTY TAX L ACCOUNT TOTAL 487.91 26126103 6136 SoDa 2 TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 8,692.89 20210129 456324 2020 TIF Admin fees ACCOUNT TOTAL 8,692.89 ORG 26126103 TOTAL 9,809.73 26126104 Pentagon Park TIF 26126104 6103 Pentgn TIF - Prof Svrs 100049 EHLERS AND ASSOCIATE 85535 0 2020 12 INV P 122.50 455434 PENT PARK FIN ADVIS ACCOUNT TOTAL 122.50 26126104 6131 Pentgn TIF - PrfSvLegal 100730 DORSEY & WHITNEY LLP 3640787 0 2021 2 INV P 636.00 20210226 456908 ACCOUNT TOTAL 636.00 26126104 6136 Pentgn TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 1,024.35 20210129 456324 2020 Henn Cnty TIF ACCOUNT TOTAL 1,024.35 ORG 26126104 TOTAL 1,782.85 26126105 66th West TIF 26126105 6136 66th W TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 538.85 20210129 456324 2020 Henn Cnty TIF ACCOUNT TOTAL 538.85 ORG 26126105 TOTAL 538.85 26126106 Grandview 2 TIF 26126106 6103 Grnd 2 TIF - Prof Svrs 100049 EHLERS AND ASSOCIATE 85889 0 2020 12 INV P 245.00 20210205 456595 100995 SHORT-ELLIOT-HENDRIC 399361 0 2020 12 INV P 3,093.63 20210212 456842 124002 KIMLEY-HORN AND ASSO 17975836 0 2020 12 INV P 13,750.29 20210109 456107 Grandview TIF-Jerry ACCOUNT TOTAL 17,088.92 26126106 6136 Grnd 2 TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 796.75 20210129 456324 2020 Henn Cnty TIF City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 03/08/2021 13:11 User: LJefferson Program ID: apinvgla Page 4 YEAR/PERIOD: 2020/12 TO 2021/2 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION ACCOUNT TOTAL 796.75 26126106 6710 Grnd 2 TIF - Cap Other 100643 BARR ENGINEERING CO 23271827.00-3 0 2020 12 INV P 2,913.00 455126 LS 9 - PRELIM ENGIN 100995 SHORT-ELLIOT-HENDRIC 392289 0 2020 12 INV P 11,665.28 455292 EDEN AVE PRELIM ENG 100995 SHORT-ELLIOT-HENDRIC 397282 0 2020 12 INV P 17,516.40 455585 EDEN AVE PRELIM ENG 29,181.68 ACCOUNT TOTAL 32,094.68 26126106 6715 Grnd 2 TIF - CapInfrast 100643 BARR ENGINEERING CO 23271827.00-5 0 2021 1 INV P 2,535.50 20211902 20201221 100664 BRAUN INTERTEC CORPO B242383 0 2021 2 INV P 5,413.50 20210305 457121 100995 SHORT-ELLIOT-HENDRIC 399986 0 2021 2 INV P 35,360.45 20210226 457048 ACCOUNT TOTAL 43,309.45 ORG 26126106 TOTAL 93,289.80 26126107 50th and France 2 TIF 26126107 6136 50 & F TIF - PrfSvOther 100049 EHLERS AND ASSOCIATE 85890 0 2020 12 INV P 1,102.50 20211902 20201272 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 633.27 20210129 456324 2020 henn Cnty TIF ACCOUNT TOTAL 1,735.77 26126107 6406 50 & F TIF - SupOther 101483 MENARDS INC 30582 0 2020 12 INV P 199.31 20210115 456151 Supplies for Mainte ACCOUNT TOTAL 199.31 ORG 26126107 TOTAL 1,935.08 26126109 44th and France 2 TIF 26126109 6136 44 & F TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 551.07 20210129 456324 2020 Henn Cnty TIF ACCOUNT TOTAL 551.07 ORG 26126109 TOTAL 551.07 26126110 72nd and France TIF 26126110 6136 72 & F TIF - PrfSvOther 100801 HENNEPIN COUNTY TREA 24-2020-AC 0 2020 12 INV P 540.33 20210129 456324 2020 Henn Cnty TIF ACCOUNT TOTAL 540.33 City of Edina, MN INVOICE LIST BY GL ACCOUNT Report generated: 03/08/2021 13:11 User: LJefferson Program ID: apinvgla Page 5 YEAR/PERIOD: 2020/12 TO 2021/2 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S CHECK RUN CHECK DESCRIPTION ORG 26126110 TOTAL 540.33 26126112 W 76th Street TIF 26126112 6102 W 76th TIF - Contr Svrs 999990 US BANK - CREDIT CAR DERIK 10/30/2020 102 0 2020 12 INV P 1,598.31 20201208 ACCOUNT TOTAL 1,598.31 26126112 6103 W 76th TIF - Prof Svrs 100730 DORSEY & WHITNEY LLP 3626459 0 2020 12 INV P 1,457.00 455424 4100 LEGAL 151971 FLANNERY CONSTRUCTIO 5530 0 2020 12 INV P 19,695.00 456046 4100 DEMOLITION 999995 RACHEL CONTRACTING I 4100 W 76TH ST DEMO 0 2020 12 INV P 91,056.55 455279 4100 DEMOLITION 999995 RACHEL CONTRACTING I 4100 W 76TH ST DEMO 0 2020 12 INV P 4,792.45 455279 4100 DEMOLITION 95,849.00 ACCOUNT TOTAL 117,001.00 26126112 6131 W 76th TIF - PrfSvLegal 100730 DORSEY & WHITNEY LLP 3634402 0 2020 12 INV P 11,093.00 20210205 456593 4100 Legal Fee Inv. 100730 DORSEY & WHITNEY LLP 3640788 0 2021 2 INV P 1,081.00 20210226 456908 Will be reimbursed 12,174.00 ACCOUNT TOTAL 12,174.00 26126112 6136 W 76th TIF - PrfSvOther 999990 US BANK - CREDIT CAR DERIK 11/2/2020 103 0 2020 12 INV P 807.70 20201208 ACCOUNT TOTAL 807.70 ORG 26126112 TOTAL 131,581.01 FUND 2600 Housing & Redvlpmt Authority TOTAL: 366,193.33 ** END OF REPORT - Generated by Lonnia Jefferson ** Date: Marc h 11, 2021 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:5146 Eden Avenue - Methodology to Determine F air Market Value Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the methodology to be used when determining a fair market price for the potential sale of property for redevelopment purposes. I N TR O D U C TI O N: T his item pertains to the redevelopment of the vacant property at 5146 Eden Avenue. T he H R A has entered into an M emorandum of Understanding (M O U ) with F rauenshuh and U nited P roperties to explore redevelopment of the site for a combination of commercial and residential uses with public benefits. T he M O U requires that the H R A B oard consider a methodology on how "fair market value" will be determined for a potential sale to F rauenshuh and U nited P roperties. A methodology has been jointly prepared by C ity staff and the developers. I t is attached for review and consideration. P lease note that this methodology does not mandate that the H R A enter into a purchase agreement for any particular price. T he purpose of the methodology is to identify pricing expectations up front so that both parties can work in earnest to reach future agreement on price and terms. S taff recommends that this methodology be approved. AT TAC HME N T S: Description HRA methodology pres entation 5146 Eden fair market methodology The CITY ofEDINA Redevelopment of 5146 Eden Avenue Methodology to Determine Fair Market Value Housing and Redevelopment Authority March 11, 2021 Presented by Bill Neuendorf Economic Development Manager The CITY ofEDINA 1)Background 2)Project Description 3)Land Value Considerations 4)Recommended Methodology 5)Q & A Outline for Today’s Discussion HRA Board Meeting 3-11-2021 2 The CITY ofEDINA 1)3.3 acre site tax exempt since early 1960s 2)Site vacant since 2013 3)Exploring potential sale and redevelopment with Frauenshuh and United Properties per terms of MOU 4)Engineers & architects are preparing site plan 5)Developers are preparing financial pro forma HRA Board Meeting 3-11-2021 Background 3 The CITY ofEDINA HRA Board Meeting 3-11-2021 Project Description CONCEPT -Not to scale - Senior Co-operative Housing Public Plaza Medical Office •Road improvements to Eden & Arcadia •Future bike or transit access to RR tracks Future Pedestrian Bridge over RR 4 The CITY ofEDINA 1)“Highest Value” versus “Fair Market Value” 2)Residential Element 1)-market rate units 2)-affordable units 3)Medical/Office Element 4)Adjustment for extra-ordinary site conditions Determining Land Value HRA Board Meeting 3-11-2021 5 The CITY ofEDINA Highest Value currently derived from higher density rental apartments due to strong interest from investors and solid long-term cash flow Land value will be lower if the proposed mixed uses are developed Determining Land Value -Highest vs. Fair Market Value Per Unit Land Value Low Average High Rental Apartments $ 25,000 $ 37,060 $ 50,000 Senior Co-operative Housing (ownership)$13,000 $23,185 $30,000 HRA Board Meeting 3-11-2021 6 The CITY ofEDINA 1)This vacant and cleared site is desirable in the marketplace 2)Land Value impacted by unit sales revenue, development costs, density and site conditions. 1)-Structured parking increases costs 2)-Most cost-effective projects have 85 to 100 units 3)-Sales revenue declines when units sold below market rate 3)10% anticipated to be affordable 1)-2 bedrooms anticipated, possibly 1-bedroom if interest 2)-include indoor parking stall 3)-initial purchase price plus monthly fee (cleaning, management, insurance, interest payment, etc.) Determining Land Value -Residential Element HRA Board Meeting 3-11-2021 7 The CITY ofEDINA 1)This vacant and cleared site is desirable in the marketplace 2)Land Value impacted by revenue projections and development costs -Structured parking adds significant cost Determining Land Value -Commercial Element Per Sq Ft Land Value Low Average High Medical Office (traditional multi-story suburban layout with surface parking)$7.02 $13.81 $22.00 General Commercial (hotel, fitness, retail, café, surface parking)$18.76 $37.90 $65.39 HRA Board Meeting 3-11-2021 8 The CITY ofEDINA 1)Construction access to site –constrained by RR tracks 2)Geotechnical and environmental conditions –limited contamination known to be on site 3)Steep grade changes –steep drop off requires shoring 4)Unique infrastructure costs –preparation for pedestrian bridge over RR tracks Determining Land Value -Adjustment for Site Conditions HRA Board Meeting 3-11-2021 9 The CITY ofEDINA Determine Fair Market Value based on: •Developable square footage of medical office parcel •Number of units on housing parcel •Consider similar project types •Adjust for unique site conditions •Consider cost of public improvements and any public financing •Ultimately, consider pricing that achieves a feasible & buildable project Recommended Methodology Next Steps 1)Submit concept plans for “sketch plan” review 2)Negotiate purchase agreement with actual pricing and possible adjustments 3)Final pricing established after preliminary zoning approvals secured HRA Board Meeting 3-11-2021 10 The CITY ofEDINA Staff & Developers Available for Q & A HRA Board Meeting 3-11-2021 11 5146 Eden Avenue Methodology to Determine Fair Market Value March 11, 2021 In order to redevelop the vacant site in a manner consistent with the Grandview Framework Plan and achieve other goals of the Edina Housing and Redevelopment Authority (HRA), the land is anticipated to be made available for sale at fair market value provided that the project type desired by the Edina HRA is constructed. The prospective buyers – Frauenshuh and United Properties – are anticipated to prepare market-driven development plans that reflect a financeable and buildable project based on fair market land value. The parties agree to use the following methodology to establish the land price and terms that allow the site to be effectively returned to productive use. (a) The parties recognize that the desired combinations of project types (medical office and senior co-operative housing) are unlikely to maximize the land value of the vacant site. A more dense combination of rental housing is likely to be the highest use under current economic conditions. (b) The buyers agree to share accurate estimates of the total development pro formas to confirm the appropriateness of the land acquisition costs without inflating developers profit beyond normally expected returns. (c) The purchase price of comparable sites with comparable project types located in the 13-county Twin Cities metropolitan area will be used to determine the fair market value of the site. (d) Comparable sites are limited to only the specific use types of the buildings included in the proposed development – medical office and senior co-operative housing, in combined or separate transactions. Other types of housing including rental apartments and condominiums are not directly comparable to senior co-operatives. Other types of commercial buildings including retail and restaurants are not directly comparable to traditional multi-story suburban style medical office buildings. (e) The developable square footage of the medical office project and the unit count of the co- operative residential project will be used to calculate the total fair market value of the land. The land area used to expand the existing roadways will be deducted from the available square footage of the property. (f) Sales of comparable sites will be adjusted to reflect existing and known site conditions including: (i) land area, topography, geotechnical conditions, environmental conditions, and perimeter access of site, (ii) date of transaction, (iii) surface parking versus structured parking, and (iv) center city, urban and suburban location of the sites. 5146 Eden Avenue - Methodology to Determine Fair Market Value Page 2 (g) Fair market value will be adjusted to reflect any increase in the number of affordably-priced residential units beyond the ten percent (10%) require by City policy.; (h) Fair market value will be adjusted downward to account for dedicated public access ways, public plazas or public easements that limit development of the site and are not necessary for building operations nor required to be included in the FAR, residential density, open space, setback or permeability requirements of the City or other regulatory agency like the Watershed District. (i) Fair market value will be adjusted to reflect unusual site work including environmental remediation beyond that anticipated by the previously completed geotechnical and environmental studies and extraordinary engineering solutions required due to existing topography. (j) Fair market value will take into consideration the party who bears financial responsibility to improve the adjacent streets and right of ways. • The City and HRA will fund improvements to portions of Eden Avenue and the Eden/Arcadia intersection. • The City and HRA will fund improvements to portions of Brookside Avenue. • The buyer will fund additional improvements to Eden Avenue that are essential for the operation of the site. • The buyer will fund improvements to adjacent portions of Arcadia Avenue. • The City and HRA are anticipated to fund or reimburse the developer for costs of installing a pedestrian bridge over the railroad tracks. For the purpose of determining fair market value, the parties agree that the following will NOT be used: (1) asking prices for properties on the market that may or may not be directly comparable and are not under contract; (2) Projects that have received tax increment financing or other governmental assistance for the purpose of reducing the buyer’s total development cost unless an adjustment is made in the land acquisition costs of the comparable site; and (3) land sales or contracts for comparable sites prior to 2014. Date: Marc h 11, 2021 Agenda Item #: VI I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Housing R ehabilitation Loan P rogram Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approval of a pilot H ome Rehabilitation L oan program and authorization to engage City Attorney to draft loan documents and contracts with C enter for Energy and the E nvironment to administer the program and Community R einvestment F und to service the loans. I N TR O D U C TI O N: T he City of E dina has relied on the C D B G program for the financing of home rehabilitation loans for low and moderate income homeowners. T his program is administered by H ennepin C ounty and must comply with H U D guidelines with regards to eligibility of borrowers. T his proposed pilot program serves two purposes: Allows for higher income borrowers and higher valued home than the C D B G program and provides a loan forgiveness provision if the house is sold to the H R A. AT TAC HME N T S: Description Staff Report Program Guidelines HUD Income Table March 11, 2021 Chair and Commissioners of the HRA Stephanie Hawkinson, Affordable Housing Development Manager Grace Hancock, Sustainability Coordinator Risi Karim, City Management Fellow Home Rehabilitation Program Information / Background: Staff is seeking to create a housing rehabilitation pilot program to augment the program offered by Hennepin County. The City of Edina provides a limited amount of home rehabilitation funding to Hennepin County through our allocation of CDBG funds. As these funds are Federal, there are strict parameters for how they can be used and who is eligible to use them. Staff is seeking to create a pilot program within the City with broader criteria to fulfill two city goals: 1) Preserve modest homes, and 2) Promote sustainability. The rehab program administered by Hennepin County is limited to households with income at or below 80% of the Area Median Income. The loan is deferred with a zero-percent interest rate and is forgiven after 15 years if the borrower remains in the home. The program proposed by staff would be available to households with incomes up to 125% of the Area Median Income; is deferred with a 2% simple interest, with the option for principal and interest forgiveness if the house is sold to the HRA to be placed into a Land Trust through West Hennepin Affordable Housing Land Trust or is added to the Metro HRA affordable housing program. Loans must be used first to address health, safety and outstanding code violations. If there are no outstanding health, safety or code violations the funds may be used for energy improvements as recommended through a Home Energy Squad Visit. If all of the previous items are addressed, or are not needed, the funds may be used for any permanent interior or exterior improvement including, but not limited to: increasing physical accessibility, roofing, siding, windows, doors, garage repair or replacement, interior remodeling, sidewalks/steps, driveways, solar installations and permanent landscaping. Ineligible activities would include recreation or luxury items, playground equipment, non-permanent fixtures, etc. Program Guidelines Please refer to Exhibit A. In Sum: • Loan Amount: $2,000-$30,000 • Loan Terms: 2% deferred for 30-years STAFF REPORT Page 2 • Income limit: 125% of AMI • House value limit: $450,000 • Loan to Value Ratio: 110% • Loan Administrator: Center for Energy and the Environment • Loan Servicer: Community Reinvestment Fund Budget Implications Staff is seeking $250,000 for this pilot program. These funds will be augmented by the funding received for the Home Energy Squad for their visits. Affordable Housing Trust Fund Estimated Balance Requests Beginning Balance $ 4,360,000 Market Street ($750,000) 4d Pilot Program - NO TAKERS ($160,000) 4d Pilot Program -2019 ($50,000) VEAP Emergency Assistance* $0 Single Family Ownership Programs ($840,000) Home Rehabilitation Program ($250,000) Ending Balance $ 2,310,000 *VEAP assistance was reimbursed with CARES Funds. Sources Uses AHTF $ 250,000 8 Loans $ 240,000 Owner Responsibility $ 2,400 CEE Admin Fee $ 1,500 CEE Loan Fees $ 10,900 $ 252,400 $ 252,400 Sustainability The Home Rehabilitation Program has been designed in partnership with the Sustainability Coordinator to help improve the energy efficiency and sustainability of Edina’s older housing stock. To that end, in addition to a home advisor meeting with the borrowers to discuss health, safety and code issues, the borrowers will also meet with the Home Energy Squad to identify mechanisms to increase energy efficiency. The Home Energy Squad program is already offered to Edina Homeowners, so this pairing of the two program brings rehabilitation dollars to help address identified issues. Equity and Inclusion The primary purpose of this proposed program to is assist low- and moderate-income homeowners with their rehabilitation needs, including addressing accessibility issues. A secondary goal is to potentially secure moderate homes for future affordability. The loan with be secured by a mortgage with a term of 30-years. If a borrower sells their home within the 30-years they can either sell on the open market and repay the HRA the principal plus interest, or if they sell to the HRA for the appraised value, the loan will be forgiven. STAFF REPORT Page 3 This is a mechanism to help preserve homes for future affordability. There is no guarantee that any home with be preserved, but it brings this option directly to the borrower. Engagement This type of program was recommended by the Housing Strategy Task Force: Strategy: Encourage Preservation and promotion of Diverse Housing Stock • Encourage the preservation, maintenance and rehabilitation of existing subsidized and naturally occurring affordable rental and ownership housing. • Support program(s) for assisting income eligible property owners with rehabilitating their homes to extend their useful life. The Home Rehabilitation Loan program has been reviewed and is supported by the Edina Housing Foundation. Staff Recommendation Staff recommends approval of the Home Rehabilitation Pilot Program and authorization to engage City Attorney to draft loan documents and contracts with Center for Energy and the Environment and Community Reinvestment Fund. Exhibit A Page 1 CONTRACT between EDINA HOUSING AND REDEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT #3397 EXHIBIT A PROGRAM GUIDELINES This document includes guidelines for the EDINA DEFERRED HOME IMPROVEMENT LOAN PROGRAM Exhibit A Page 2 CONTRACT between EDINA HOUSING AND REDEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT #3397 EDINA LOAN PROGRAM GUIDELINES The EDINA HOUSING AND REDEVELOPMENT AUTHORITY (Authority) is making funds available for homeowners to assist with home maintenance and energy improvements. The Edina Deferred Home Improvement Loan Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. Center for Energy and Environment shall serve as the administrator for the Edina Deferred Home Improvement Loan Program. Edina Deferred Home Improvement Loan Interest Rate: 2% Amortization Type: Deferred (No Monthly Payments Required) Loan Amount: Minimum of $2,000 and Maximum of $30,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project (as outlined in the bid(s). Additional funds may come from personal savings, gifts, or other loan funds. Loan term: Deferred for a period of 30 years or when the borrower sells, transfers title or if the home is no longer the primary residence of the original borrower, at which time 100% of the principal and interest is due. The loan may also become due and payable upon refinance. The loan principal and interest is 100% forgiven if the Edina Housing and Redevelopment Authority is offered first right of refusal and acquires at appraised value. Eligible Properties: One to four unit properties located within the geographical boundaries of the City of Edina. Townhomes and Condominiums are eligible, subject to Association Bylaws. Property must have an Estimated Market Value at or below $450,000). The property must be homesteaded or in the process of being homesteaded. Properties may be held in a Contract for Deed or Trust. Ineligible Properties: Properties with more than four units, cooperatives, manufactured homes and properties used for commercial purposes. Eligible Borrowers: Must have house in their name. All borrowers must either have a social security number or Tax Identification Number (ITIN). Ineligible Borrowers: Including but not limited to: Non-Occupant Co-Borrowers, and business entities. Ownership/Occupancy: Owner- occupied only. Exhibit A Page 3 CONTRACT between EDINA HOUSING AND REDEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT #3397 Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Income Limit: The total gross annual household income cannot exceed 125% of the area median income based on household size. The income limits shall be determined by the U.S. Department of Housing and Urban Development (HUD), and is adjusted annually. Income shall be determined by the adjusted gross income from the most recent Federal Tax Return. If a Tax Return is not required, the income shall be determined by the projected gross income for the upcoming 12 months. Debt - to - Income Ratio: N/A Credit Requirements: All mortgage and property taxes must be current. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $30,000. Property Inspection: A Remodeling Advisor Visit and Home Energy Squad Visit must be done to determine the Eligible Use of Funds. Eligible Use of Funds: Loans must be used first to address health, safety and outstanding code violations. If there are no outstanding health, safety or code violations the funds may be used for energy improvements which are recommended through a Home Energy Squad Visit. If all of the previous items are being addressed or are not needed the funds may be used for any permanent interior or exterior improvement including, but not limited to: roofing, siding, windows, doors, garage repair or replacement, interior remodeling, sidewalks/steps, driveways, solar and permanent landscaping. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: One bid is required from a properly licensed contractor. However, the city reserves the right to request additional bids at its discretion. Only 1 bid/material list is required for sweat equity projects. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by a city inspector to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of The Edina Housing and Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in the loan amount. Exhibit A Page 4 CONTRACT between EDINA HOUSING AND REDEVELOPMENT AUTHORITY and CENTER FOR ENERGY AND ENVIRONMENT #3397 Borrower Fees: Borrower will be responsible for a 1% origination fee, mortgage filing and service fees, document preparation, flood certificate and credit report fees, as well as any other applicable fees. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. Appeals can be made to the Authority. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. General Program Conditions for the Deferred Home Improvement Loan Program Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including the following in order to be considered for funding. Completed and signed application form Proof of income Proof of Identity (driver’s license, passport, etc.) Bids or estimates for proposed projects (if applicable) Other miscellaneous documents that may be required. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds for the Revolving Loan Program: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector; • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; • Evidence of city permit (if required) Family Size 30%50%60%70%75%80%100%110%115%120%125%150% 1 $21,700 $36,200 $43,450 $50,700 $54,300 $54,950 $72,400 $79,650 $83,250 $86,900 $90,500 $108,600 2 $24,800 $41,400 $49,700 $57,950 $62,100 $62,800 $82,800 $91,100 $95,200 $99,350 $103,500 $124,200 3 $27,900 $46,550 $55,850 $65,150 $69,850 $70,650 $93,100 $102,400 $107,050 $111,700 $116,400 $139,650 4 $31,000 $51,700 $62,050 $72,400 $77,550 $78,500 $103,400 $113,750 $118,900 $124,100 $129,250 $155,100 5 $33,500 $55,850 $67,000 $78,200 $83,800 $84,800 $111,700 $122,850 $128,450 $134,050 $139,650 $167,550 6 $36,000 $60,000 $72,000 $84,000 $90,000 $91,100 $120,000 $132,000 $138,000 $144,000 $150,000 $180,000 7 $39,640 $64,150 $77,000 $89,800 $96,250 $97,350 $128,300 $141,150 $147,550 $153,950 $160,400 $192,450 8+$44,120 $68,250 $81,900 $95,550 $102,400 $103,650 $136,500 $150,150 $157,000 $163,800 $170,650 $204,750 2020 HUD Income Limits (new) Published 04/01/2020 Date: Marc h 11, 2021 Agenda Item #: VI I.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Approve Amended P artnership with Metro HR A to Expand the F amily Affordable Housing P rogram and Authorize S taff to Engage an Attorney to Draft Legal Agreements Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approved amended program with M etro H R A and authorize staff to engage attorney to draft legal documents. I N TR O D U C TI O N: On November 12, 2020, the H R A approved $2,000,000 to expand the M etro H R A’s Family Affordable Housing P rogram. T he basics of the approved program were as follows: · Edina H R A would acquire single family houses and lease to M etro H R A for $1.00 each. · M etro H R A would maintain and manage the houses and make available to families who qualify for their program. After further consideration and in consultation with the C ity attorney and financial advisor, Staff proposes amending the approved program to instead provide the M etro H R A with a $2,000,000 forgivable loan whereby they acquire the single family houses, own, maintain and manage. T his would streamline the process as E dina already has an agreement with Metro H R A rather than creating a brand new program. AT TAC HME N T S: Description Staff Report March 11, 2021 Chair and Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Approve Amended Partnership with Metro HRA to Expand the Family Affordable Housing Program and Authorize Staff to Engage an Attorney to Draft Legal Agreements Information / Background: On November 12, 2020, the HRA approved $2,000,000 to expand the Metro HRA’s Family Affordable Housing Program. The basics of the approved program were as follows: • Edina HRA would acquire single family houses and lease to Metro HRA for $1.00 each. • Metro HRA would maintain and manage the houses and make available to families who qualify for their program. After further consideration and in consultation with the City attorney and financial advisor, Staff proposes amending the approved program to instead provide the Metro HRA with a $2,000,000 forgivable loan whereby they acquire the single family houses, own, maintain and manage. This would streamline the process as Edina already has an agreement with Metro HRA rather than creating a brand new program. The Metro HRA currently owns and manages eight properties in Edina that they acquired between 2001 and 2004 following the 1995 landmark Hollman consent decree that called for the deconcentration of affordable housing in Minneapolis. Their housing portfolio in Edina has not increased in 16-years despite the growing need for affordable housing. Through a continued partnership with the Edina HRA, the number of houses serving households needing larger rental opportunities will increase. Loan Terms • 25-years, 0% interest • Forgiven at year 25 when all conditions are met: o Houses are rented to households with TIF compliant incomes. o Metro HRA provides annual reports to Edina HRA. o Properties are maintained. STAFF REPORT Page 2 Compliance with Comprehensive Plan and Supporting Documentation 1. Quality of Life Survey: Edina ranked lower than other Minnesota communities in the area of availability of affordable quality housing with only 32% rating this as excellent or good. The Metro HRA partnership creates additional affordable housing opportunities. 2. Maxfield Market Study: a. The percentage of households with children is increasing. The Metro HRA partnership focuses in single family houses that will serve households with children. b. 40,898 Edina employees commute into the City for work (pre-COVID numbers). The Metro HRA partnership will create opportunities for people who work in Edina to live closer to their jobs. c. 42% of Edina renters are cost burdened. The Metro HRA partnership charges households only 30% of their income. The remainder is paid through rental assistance. 3. 2018 Comprehensive Plan (Chapter 4): The Metro HRA partnership aims to provide affordable housing to households with children. a. Goal 1: Accommodate all planned residential growth in the city based on planned infrastructure investments and other community goals and assets. i. Recognize that successfully reaching affordable housing goals assists the city in achieving related community goals, including Accommodating housing for families with children in Edina schools. b. Goal 2: Encourage the development and maintenance of a range of housing options affordable to residents at all income levels and life stages. c. Goal 4: Support the development of a wide range of housing options to meet the diverse needs and preferences of the existing and future Edina community. Previously Approved Budget Southdale 2 “Regular Housing” Pooling Estimated Balance Requests Repayments Starting Pooling Capacity $ 7,832,295 7008 Sandell $ (350,000) 66 West $ (275,000) 4040 W. 70th St. $ (3,650,000) $ 3,650,000 Scattered Site SF $ (2,000,000) Future Funding Capacity $ 5,207,295 Next Steps • Obtain formal approval from Metropolitan Council. • Draft amendment to Cooperation Agreement and seek approval. • Review annual reports Date: Marc h 11, 2021 Agenda Item #: VI I I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: O ther F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:P roject Update - 4917 Eden Avenue Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for information purposes only. I N TR O D U C TI O N: S taff has been in communication with R euter Walton Development regarding their redevelopment concept for the P erkins restaurant site at 4917 E den Avenue. T he developers have requested that the H R A explore the use of Tax I ncrement Financing on this site. T I F could be a useful financial strategy to redevelop the site and achieve goals of the community. For example, the Grandview Framework and T ransportation plans envision several roadway improvements in this area. T I F could be an effective mechanism to achieve this type of community benefit. S taff intends to explore T I F financing options for this site in the weeks ahead. Updates will be provided when options are identified.