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HomeMy WebLinkAbout2021-04-22 HRA Regular Meeting PacketAgenda Edina Housing and Redevelopment Authority City of Edina, Minnesota V IRTU AL M EETIN G Thursday, April 22, 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 3279979. 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 April 8, 2021 B.Request for Purchase: Engineering Services for Pedestrian Bridge C.Request for Purchase: Estimating Services for Pedestrian Bridge VII.Reports/Recommendations: (Favorable vote of majority of Commissioners present to approve except where noted) A.A.ordable Housing Financing Tools VIII.HRA Commissioners' Comments IX.Executive Director's Comments A.Update on redevelopment planning for 5146 Eden Avenue (20-min) 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 ampli?cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: April 22, 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 April 8, 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 April 8, 2021. I N TR O D U C TI O N: S ee attached meeting minutes of April 8, 2021. AT TAC HME N T S: Description Draft Minutes of Regular Meeting April 8, 2021 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 8, 2021 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:32 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 Jackson, Pierce, Staunton, and Chair Hovland. Absent: Commissioner Anderson. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Commissioners 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 March 25, 2021 Rollcall: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. HOME REHABILITATION PROGRAM - APPROVED Affordable Housing Manager Hawkinson shared that the Commission was asked to approve loan documents and service agreements with the Center for Energy and Environment (CEE), to administer and service the loans for the proposed homeowner rehabilitation program. On March 11 the HRA approved the Homeowner Rehabilitation program and authorized staff to engage an attorney to prepare and review loan documents and service agreements for the administration of this program. This pilot program would serve three purposes: allow higher income borrowers with higher valued homes than the County sponsored CDBG program to borrow funds to rehabilitate their homes; allow borrowers to rehabilitate their homes with no adverse effect on their monthly cash flow; and provide a loan forgiveness provision if the house was sold to the HRA. She spoke about program partners that included CEE, resident and the West Hennepin Affordable Housing Land Trust and said the pilot program would be provide for eight loans in the amount of $250,000 each then spoke about CEE’s roles and responsibilities for the program. She commented about reasons for interest deferral and the option to present a fully deferred program to make it more unique than other programs on the market. Minutes/HRA/April 8, 2021 Page 2 The Commission suggested revisiting the interest rate should they increase in the future and confirmed the HRA would be in a secondary position regarding the program. Ms. Hawkinson confirmed the priority would be similar to the Come Home to Edina Program and that it was conceivable the HRA could be in third position. The Commission suggested a special assessment provision be incorporated similar to another program and confirmed the right of first refusal was a contingent element of the lending and market price. Ms. Hawkinson explained the HRA would have right of first refusal and could purchase the property based on its appraised value. City Attorney Kendall explained the City could always opt out of any potential bidding war to avoid paying a premium for the home then suggested a structure change with an option to match an offer in addition to an appraisal. Ms. Hawkinson cautioned about the role of government paying more than appraised value as it could be unduly enriching with government funding and noted those in the program enrolled to ensure their home remained affordable and would not be torn down. The Commission noted an offer match could still be capped at the loan amount and said the homeowner had the choice to sell to the HRA then spoke about the variability of appraisals and the need to ensure the program was designed to encourage people to maintain the homes. Mr. Kendall suggested providing two appraisals as a way to confirm an appropriate purchase price, one paid for by the HRA and the other by the property owner then suggested program structure ensuring the City would be no further down then third position and that a special assessment was not a viable option. Discussion was held on program intent and the need to be transparent and as fair as possible with the borrower as the assumption was to acquire the home in order to ensure it was maintained in an affordable status. Mr. Neal explained the program was one a pilot strategy to help provide opportunities for future HRAs to ensure affordability of homes and while there was some risk it was to attempt to provide affordability. Motion by Commissioner Staunton, seconded by Commission Jackson, to approve loan documents and service agreements with Center for Energy and Environment to administer and service the loans for the homeowner rehabilitation program as modified to include second appraisals be obtained as directed. Mr. Kendall clarified the HRA could not be in second position and noted the HRA’s equity position could be included in the program guidelines or addressed through equity guidelines. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII.B. TENANT PROTECTION ORDINANCE - APPROVED City Management Fellow Karim stated the HRA was asked to approve and authorize to engage the City Attorney to draft a proposed tenant protection ordinance. The city had set a goal to both promote and commit to preserving natural occurring affordable housing (NOAH), and in addition to that goal, protect tenants who reside in NOAH properties. The creation of a Tenant Protection Ordinance for the city would provide additional protection of renters’ rights. She spoke about area median incomes and cost burdens of housing and how the proposed ordinance could reaffirm the City’s goal to promote and facilitate a balanced and enduring housing tock that offered diverse life- Minutes/HRA/April 8, 2021 Page 3 cycle housing choices. She shared about surrounding cities that had adopted similar ordinances then thanked the roundtable participants who brought the concept forward for possible consideration. The Commission inquired about possible rent increases allowed and suggested outreach to others not associated with affordable housing for their input as well as including elements from the Edina Neighborhoods for Affordable Housing association. Ms. Karim explained if a new property owner needed to increase rent upon purchase of a property they would be required to provide tenants a three-month protection period first then noted this ordinance would provide a layer of protection as rent stability programs associated with COVID-19 would soon be expiring. The Commission requested the ordinance include a public hearing element and further data on potential staffing for enforcement if adopted then thanked staff for their good work. Motion by Commissioner Pierce, seconded by Commission Jackson, to approve and authorize to engage the City Attorney to draft a proposed tenant protection ordinance. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VIII. HRA COMMISSIONERS’ COMMENTS – Received IX. EXECUTIVE DIRECTOR’S COMMENTS - Received IX.A. GRANDVIEW DISTRICT PEDESTRIAN BRIDGE – Received Mr. Neal stated staff had been exploring strategies to construct the pedestrian bridge that was envisioned to span between Arcadia Avenue and Jerry’s Parking Ramp. While complementary to the senior cooperative housing currently under consideration for the vacant site, the bridge was not an essential element of this type of private project. Staff recommended the bridge be designed and funded in spring 2021 so that infrastructure construction could be coordinated with the potential construction of the senior housing. In order to satisfy the 5-year rule that applied to the Grandview 2 TIF District, staff recommended that design engineers be retained and a Construction Management firm retained to establish a guaranteed maximum price. He said this strategy was recommended to achieve cost efficiencies while meeting the deadlines in the TIF Statutes. The Commission said this project would be integral to the Grandview framework for connectivity and that they hoped a crosswalk would be included if warranted then spoke about the need for good design and materials with this project and inquired if the project included the lead-up to the bridge. Director of Engineering Millner said the goal was to complete the entire project in order to provide connection to businesses on the east side of Arcadia and alleviate parking issues and that this could be a standalone project if a development project did not occur then added formal action of support would be presented at a future meeting. X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Staunton, to adjourn the meeting at 8:54 a.m. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: April 22, 2021 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eques t F or P urchas e F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: Engineering S ervic es for P edes trian Bridge 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 R equest for P urchase: Engineering S ervices for P edestrian Bridge with Kimley-H orn for $100,000. T his would include Task 1 and 2 of the letter proposal. I N TR O D U C TI O N: Kimley-H orn with assistance from R J M will complete concept design, preliminary engineering and cost estimating for a P edestrian Bridge from Grandview P arking R amp over the C P R ailroad and continuing with a sidewalk facility to Arcadia Avenue. After a preliminary cost estimate is complete, staff will reevaluate the feasibility of the project. AT TAC HME N T S: Description Staff Report Request for Purchase Letter Proposal April 22, 2021 Chair and Commissioners of the Edina HRA Bill Neuendorf, Economic Development Manager Chad A. Millner, P.E. Director of Engineering Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue Executive Summary: Approve concept design and preliminary engineering to consider an additional project funded by the Grandview TIF for a Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue. Information / Background Recall on June 11 and December 17, 2020, staff received authorization from the HRA for improvements in the Grandview 2 TIF District. Recall the 5-year rule for the TIF district is nearing expiration. These projects would use some of the available TIF funding to achieve some of the goals identified in previous planning efforts. These improvements include the following: 1. Reconstruction of Eden Avenue and Arcadia Intersection 2. Review of the Grandview lift station (LS #9) 3. Grandview parking ramp structure improvements, lighting, security cameras, and wayfinding signage. Discussions with a development partner for 5146 Eden Avenue (old Public Works site) have been ongoing. A sketch plan has been developed showing a pedestrian bridge and sidewalk from the Grandview Parking Ramp over the CP Railroad and continuing to Arcadia Avenue. Based on a Grandview TIF Bond Financing Analysis completed by Elhers there is capacity to potentially add this project. Scope of work would be to determine the concept, preliminary engineering and cost estimate prior to bond request in mid-May. Final design and construction administration would come later based on the estimated project estimate. GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 NORTH-EAST PERSPECTIVE Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100089 Department: Engineering Buyer: Chad Millner Date: 04/19/2021 Requisition Description: Engineering Services for Pedestrian Bridge Vendor:Kimley-Horn Cost: $100,000 REPLACEMENT or NEW: NEW PURCHASE SOURCE: SERVIC K - SERVICE CONTRACT DESCRIPTION: Engineering Services for Pedestrian Bridge Kimley-Horn along with RJM will provide concept design, preliminary engineering and cost estimating services for a Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue. After a preliminary cost estimate is complete, staff will reevaluate the feasibility of the project. BUDGET IMPACT: The Project is funded by the Grandview 2 TIF District. Environmental Impact - item specific: 2 COMMUNITY IMPACT: This project and with others planned using this funding source would continue to achieve some of the goals identified in previous planning efforts. If constructed, it would improve provide access and mobility for improvements while enhancing safety and convenience. ENVIRONMENTAL IMPACT: This scope of work is for design services. The design team will consider the City's sustainability goals in the design of the pedestrian bridge. Vehicle - Make/Model/Year requested vehicle: Vehicle - Make/Model/Year current vehicle (if replacement): Vehicle - Does purchase meet Green Fleet Recommendations? - Vehicle - If does not meet Green Fleet Recommendations, justification: - MPG: Carbon Emissions: kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 April 16, 2021 Mr. Chad Millner Director of Engineering City of Edina 7450 Metro Boulevard Edina, MN 55439 RE: City of Edina – Grandview TIF District Improvements – Pedestrian Bridge and Trail Supplemental Agreement to Master Agreement for Professional Engineering Services Dear Mr. Millner: Kimley-Horn is pleased to submit this Supplemental Agreement for design and construction administration services in the Grandview TIF District for a new pedestrian bridge, trail, walls and connection structure to the parking ramp (Grandview Ramp) owned by the City of Edina (City) located at 5106 Brookside Avenue. This Supplemental Agreement amends the July 23, 2020 agreement for planning and design services. The work will be performed in accordance with Kimley-Horn’s Master Services Agreement with the City. Project Understanding The City is updating the Grandview TIF District capital improvement plan. The City has requested Kimley-Horn provide design and construction phase services for the following:  Prefabricated pedestrian bridge over the railroad connecting the new development at the former public works site to the Grandview Ramp  Shared use trail from Arcadia St to the new prefabricated pedestrian bridge, including retaining walls on the north and south side of the trail  Connection structure from the prefabricated bridge to the top level of the Grandview Ramp  Bridge visual quality evaluation and aesthetic design incorporating Confluence as a subconsultant to provide input on Grandview district public realm themes and integration with adjacent redevelopment architecture The City will assemble the Grandview TIF District capital improvement plan using this information, along with other work being performed by the City or their consultants. Design needs to be expedited in order to complete bidding and contract award before the end of June 2021. Construction is anticipated in 2021 - 2022. The work is to be coordinated with the development project on the former public works site, however the development project design may not be advanced far enough, based on this aggressive schedule, to understand how earthwork and retaining wall costs may be optimized. It is assumed the south side of the proposed trail will be supported on approximately 30’ tall walls, some of which may be buried or removed as part of the development project. Page 2 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 The design process will be completed in two phases. The first phase will be 50% design, which will lead to a construction cost estimate prepared by the City’s cost estimator (RJM). The goal is to design a project with a construction cost under $2M. If the construction cost estimate is under $2M, the City will authorize Kimley-Horn to complete bidding documents and authorize construction administration services. Scope of Services Kimley-Horn will provide the services specifically set forth below. Task 1: Concept Development and 50% Plans  Development of bridge type, size, and location for the proposed railroad crossing, tie into Grandview ramp, and approach retaining walls for Arcadia Street approach. o Concept layout of the bridge, with ADA tie-in to the Grandview ramp and the retaining wall supported grade to Arcadia Street. Assumes one bridge alternative consisting of prefabricated metal truss superstructure. o Preliminary civil and structural design and plans for bridge, ramp tie-in, retaining walls, trail and civil improvements o Coordination with the adjacent site developer to accommodate the Public Works site redevelopment improvements with the bridge crossing and trail o Review and approval from the City of Edina staff o Coordination with City’s cost estimator (RJM). RJM will provide all cost estimates. o Assumes survey and geotechnical data will be provided by City.  Bridge visual quality evaluation o Precedent imagery showing variety of bridge geometries and enhancements to provide visual quality for City staff to determine bridge type and aesthetics. o Terry Minarik from Confluence will provide visual quality input from his knowledge of the Grandview district public realm themes and the architecture of the redevelopment at the former public works facility  Deliverables o Precedent imagery for bridge type and visual quality o 50% plans Task 2: Meetings  Meetings o Weekly progress meetings to discuss project concept, visual quality decisions. Assumes up to four (4) meetings attended by up to four (4) Kimley-Horn staff. o Railroad coordination meetings with CP Rail to discuss easements and permits required by the project. Assumes up to three (3) meetings attended by up to two (2) Kimley-Horn staff. Page 3 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 o Stakeholder meetings with adjacent property owners, such as developer of former public works site, Starbucks and Jerrys. Assumes up to two (2) meetings attended by up to two (2) Kimley-Horn staff. o Utility coordination meeting with public and private utility owners. Assumes one (1) meeting attended by up to two (2) Kimley-Horn staff.  Deliverables o Meeting agendas and summaries Task 3: Final Design and Bidding  Design and prepare construction documents for bidding o Final design of the bridge, bridge abutments, parking ramp modifications to the exterior façade to accept trail access, bridge to ramp tie in structure, retaining walls, trail and landscape features. o Construction documents including project manual, technical specifications, and plans for the proposed trail bridge crossing and associated improvements o Coordination of earthwork and retaining walls with the adjacent former public works site redevelopment improvements  Bidding o Prepare advertisement for bids, answer questions during bidding, prepare addenda, tabulate bids and provide City with a recommendation of award letter.  Deliverables o Construction documents for bidding o Ad for bids, addenda and bid tabulation Task 4: Construction Administration  Construction Administration o Prepare Notice of Award, Contract and NPDES permit o Preconstruction meeting and periodic construction meetings. Assumes twenty (20) total meetings, including preconstruction meeting. o Full-time on-site construction observation. Assumes twenty (20) weeks of construction with on average forty (40) hours per week of construction observation time. o Review and respond to contractor product submittals, requests for information and change order requests. o Prepare pay applications and change orders. Assumes five (5) pay applications and up to four (4) change orders. o Prepare record drawings identifying any plan revisions or field changes noted by the contractor. o Kimley-Horn will subcontract with a surveyor to do construction staking and will contract with a geotechnical firm to do material testing. Assumes a budget of $20k total for both subconsultants.  Deliverables Page 4 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 o Meeting agendas and summaries o Pay applications o Change orders o Record drawings Additional Services Any services not specifically provided for in the above scope will be billed as additional services and performed at our then current hourly rates. Additional services we can provide include, but are not limited to, the following:  Redesign after 50% plans to meet construction budget  Topographic surveying  Geotechnical services  Architectural services Schedule We will provide our services based on the following schedule: HRA Approves Kimley-Horn Agreement April 22, 2021 Kimley-Horn Receives Notice to Proceed April 23, 2021 Concept Development and 50% Plans for RJM Cost Estimate May 10, 2020 Final Plans and Advertisement of Construction Documents June 1, 2021 Bid Opening June 17, 2021 HRA Award Construction Contract June 24, 2021 TIF Bonding Completed June 30, 2021 Construction Phase Services July 2021 – December 2022 Fee and Billing Kimley-Horn will perform the services in Tasks 1 - 3 on a lump sum basis and Task 4 on a labor fee plus expense basis with the maximum total fee shown below. The fee is based on the scope of work related to a project with an estimated construction cost estimate of $2.0M. Fees will be authorized in phases, with Task 1 and 2 authorized by the City first and Task 3 and 4 authorized by the City on May 10, 2021 after evaluating construction cost estimates by RJM. If construction cost estimates are not favorable the City may not authorize Task 3 and 4. Proposed Fee Task 1: Concept Development and 50% Plans $ 90,000 Task 2: Meetings $ 10,000 Task 3: Final Design and Bidding $100,000 Task 4: Construction Administration $200,000 Total Fee $400,000 Page 5 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 Kimley-Horn will not exceed the total fee shown without authorization from the Client. Individual task amounts are provided for budgeting purposes only. Kimley-Horn reserves the right to reallocate amounts among tasks as necessary. Kimley-Horn will perform the services in Tasks 1 - 3 for the total lump sum fee of $200,000. The fee will be authorized in two phases. Task 1 and 2 will be authorized first. Based on RJM’s construction cost estimate, if the City choses to proceed to final design Task 3 will be authorized. All permitting, application, and similar project fees will be paid directly by the Client. Lump sum fees will be invoiced monthly based upon the overall percentage of services performed. Payment will be due within 25 days of your receipt of the invoice and should include the invoice number and Kimley-Horn project number. If the City chooses to proceed to final design, after Task 1 and 2 are completed, the City will authorize Task 4. Kimley-Horn will perform the services in Task 4 on an hourly basis according to our then- current rates. A percentage of labor fee will be added to each invoice to cover certain expenses as to these tasks such as telecommunications, in-house reproduction, postage, supplies, project related computer time, and local mileage. Administrative time related to the project may be billed hourly. All permitting, application, and similar project fees will be paid directly by the Client. Fees will be invoiced monthly based. Payment will be due within 25 days of the date of the invoice. In addition to the matters set forth herein, our Agreement shall include and be subject to, and only to, the terms and conditions of the Master Agreement for Professional Engineering Service between the City and Kimley Horn and Associates, Inc. dated August 16, 2013. If you concur in all the foregoing and wish to direct us to proceed with the services, please have authorized persons execute both copies of this Supplemental Agreement in the spaces provided below, retain one copy, and return the other to us. We appreciate this opportunity to continue our services to the City of Edina. Please contact me at 651-643-0451 if you have any questions. Very truly yours, KIMLEY-HORN AND ASSOCIATES, INC. Daniel J. Coyle, P.E. Project Manager / Vice President Agreed to this day of , 2021. Page 6 kimley-horn.com 767 Eustis Street, Suite 100, St. Paul, MN 55114 651 645 4197 CITY OF EDINA BY:________________________________ Chad Millner. Engineering Director Date: April 22, 2021 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R equest F or P urc hase F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: Es timating S ervices for P edes trian Bridge 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 R equest for P urchase: Estimating Services for P edestrian B ridge with R J M for $23,558. I N TR O D U C TI O N: R J M will assist Kimley-H orn on a concept design, preliminary engineering and cost estimating for a P edestrian B ridge from G randview P arking Ramp over the C P Railroad and continuing with a sidewalk facility to Arcadia Avenue. After a preliminary cost estimate is complete, staff will reevaluate the feasibility of the project. AT TAC HME N T S: Description Staff Report Request for Purchase Form Letter Proposal April 22, 2021 Chair and Commissioners of the Edina HRA Bill Neuendorf, Economic Development Manager Chad A. Millner, P.E. Director of Engineering Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue Executive Summary: Approve concept design and preliminary engineering to consider an additional project funded by the Grandview TIF for a Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue. Information / Background Recall on June 11 and December 17, 2020, staff received authorization from the HRA for improvements in the Grandview 2 TIF District. Recall the 5-year rule for the TIF district is nearing expiration. These projects would use some of the available TIF funding to achieve some of the goals identified in previous planning efforts. These improvements include the following: 1. Reconstruction of Eden Avenue and Arcadia Intersection 2. Review of the Grandview lift station (LS #9) 3. Grandview parking ramp structure improvements, lighting, security cameras, and wayfinding signage. Discussions with a development partner for 5146 Eden Avenue (old Public Works site) have been ongoing. A sketch plan has been developed showing a pedestrian bridge and sidewalk from the Grandview Parking Ramp over the CP Railroad and continuing to Arcadia Avenue. Based on a Grandview TIF Bond Financing Analysis completed by Elhers there is capacity to potentially add this project. Scope of work would be to determine the concept, preliminary engineering and cost estimate prior to bond request in mid-May. Final design and construction administration would come later based on the estimated project estimate. GRANDVIEW EDINA, MN 03/31/21 | COMM#26175-21021 NORTH-EAST PERSPECTIVE Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12100088 Department: Engineering Buyer: Chad Millner Date: 04/19/2021 Requisition Description: Estimating Services for Pedestrian Bridge Vendor: RJM Cost: $23,558 REPLACEMENT or NEW: NEW PURCHASE SOURCE: SERVIC K - SERVICE CONTRACT DESCRIPTION: Estimating Services for Pedestrian Bridge RJM will assist Kimley-Horn on a concept design, preliminary engineering and cost estimating for a Pedestrian Bridge from Grandview Parking Ramp over the CP Railroad and continuing with a sidewalk facility to Arcadia Avenue. After a preliminary cost estimate is complete, staff will reevaluate the feasibility of the project. BUDGET IMPACT: The Project is funded by the Grandview 2 TIF District. Environmental Impact - item specific: 2 COMMUNITY IMPACT: This project and with others planned using this funding source would continue to achieve some of the goals identified in previous planning efforts. If constructed, it would improve provide access and mobility for improvements while enhancing safety and convenience. ENVIRONMENTAL IMPACT: This scope of work is for design services. The design team will consider the City's sustainability goals in the design of the pedestrian bridge. Vehicle - Make/Model/Year requested vehicle: Vehicle - Make/Model/Year current vehicle (if replacement): Vehicle - Does purchase meet Green Fleet Recommendations? - Vehicle - If does not meet Green Fleet Recommendations, justification: - MPG: Carbon Emissions: Mr. Chad Millner Director of Engineering City of Edina 7450 Metro Blvd Edina, MN 55439 Re:City of Edina Grandview Pedestrian Bridge Dear Mr. Millner, Total Pre-Construction Services Estimate:$23,558 ALTERNATES: No. 1: 0 Add $0 CLARIFICATIONS: No. 1: No. 2: No. 3: No. 4: No. 5: No. 6: Sincerely, Brad Barickman Vice President - Community City of Edina, Minnesota By Title Date Includes attendance at an assumed weekly meeting (approximately 8 meetings) Thank you for the opportunity to provide this estimate. Our team is experienced and competent in your market; this applied knowledge will assist the team in obtaining the best possible project value. Please feel free to contact RJM if you have any questions or need additional information. April 15, 2021 RJM Construction is pleased to present an estimate for the pre-construction cost estimating of the City of Edina Grandview Pedestrian Bridge project. Together with The City of Edina and Kimley-Horn, we can work as a team to deliver the project goals of cost, schedule and quality. Our estimate is based upon the project scope discussed at the April 6, 2021 meeting. This estimate is for pre-construction cost estimating only. Includes one cost estimate exercise of the preliminary 30% bid documents. Includes one round of follow up pricing after the initial cost estimate is complete for value engineering, cost saving strategies, or estimate revisions. Schedule to complete the work mid-April to mid-June, 2021 If accepted, this supplemental letter describes the services provided for a not-to-exceed fee of $23,558. This amount is detailed in the attached proposal and includes the reimbursable and hourly expenses for professional services to be billed to the City monthly. Date: April 22, 2021 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Advisory C ommunic ation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Affordable Hous ing F inanc ing Tools 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 requested. I N TR O D U C TI O N: Nick Anhut from E hlers will present various financing tools available to the H R A to support affordable housing development. AT TAC HME N T S: Description Affordable Housing Finance Presentation Local Funding for Affordable Housing Edina HRA Board Meeting 2 •Affordable Housing and the Need for Public Financing •Local Roles •Menu of City/HRA Tools Available •Examples of Public Assistance Discussion Topics 3 •Private financing is limited Banks have underwriting and loan to value (LTV) maximums •Private developers have market-based return on investment (ROI) expectations •Example financing for typical Market Rate Project Mortgage: 60% to 80% of total project costs Equity: 20% to 40% Other Financial Assistance: 0% to 10% Why a Need for Public Funding? 4 •Affordable Housing Project Less rental income but similar construction/operating costs, means: Lower Mortgage Potential Less attractive returns on equity •Result is referred to as Gap •Public Assistance options: Fill up front –new source(s) of funds Fill over time –cashflow supplement; backstop Why a Need for Public Funding? 5 Why a Need for Public Funding? 100 Unit Apartment Building Affordability Scenario Market Rate 60% AMI Rental Income $1,924,000 $1,392,000 Operating Expenses ($550,000)($550,000) Net Operating Income $1,374,000 $842,000 Project Cost $22,000,000 $22,000,000 Maximum Mortgage*$17,600,000 $10,791,000 Private Equity* (20% of Project Cost)$4,400,000 $4,400,000 GAP $0 $6,809,000 * Simplified for Discussion: mortgage and equity funding levels will vary based on project / NOI potential 6 •Many potential approaches –just a few examples: Local Housing Development Role Limited Vigorous Open to (re)development but little public participation and no public incentives Specific goals for (re)development; willing to consider limited incentives Active partner with private developer(s); administer incentives programs and secondary financing Proactive public participation; fund site acquisition and/or remediation with resale for private or public interests; consider bonding or project ownership 7 •Tax Increment Financing / Tax Abatement •HRA Levy •Revolving Loan Funds •Housing Improvement Areas •Public Project Bonding •Regulatory Incentives Menu of Local Housing Development Tools 8 Tool: Tax Increment Financing (TIF) •Minnesota Statutes 469.174 –469.1794 •Working Definition: ability to capture and use most of the increase in local property tax revenues from new development or redevelopment within a defined geographic area 9 •Minnesota Statutes 469.1813 –469.1815 •Working Definition: ability for a city, county or school district to capture and use all or a portion of its the increase in local property tax revenues from new development or redevelopment within a defined geographic area Tool: Tax Abatement 10 Original Tax Capacity •Prior to TIF or abatement assistance, properties have a “base value” with tax revenues funding operations of local units of government TIF: base continues to support operations Abatement: may be reduced to 0 if desired TIF / Abatement Mechanics Original Tax Capacity = 1,729 11 New Tax Capacity TIF / Abatement Mechanics Original Tax Capacity = 1,729 New development increases “Total Tax Capacity” Supports general tax rolls Total Tax Capacity = 31,907 12 •TIF Revenue example TIF / Abatement Mechanics •Property pays same Total Property Taxes as other like property •Some Property Tax Revenues Excluded from Capture *Abatement only applies to participating entities tax revenues Total Property Taxes 48,249 less State-wide Taxes 0 less Fiscal Disparities Adj.0 less Market Value Taxes (7,029) less Base Value Taxes (2,234) Annual Gross TIF / Abatement 38,986 less State Auditor Fee (TIF only)(140) WHAT IS EXCLUDED? 13 TIF / Abatement Mechanics 14 •Abatement Revenue Example (if City and County participate) TIF / Abatement Mechanics 15 TIF Vs. Tax Abatement for Housing Tax Increment Tax Abatement Property Use Affordability restrictions by TIF District Type Must be “Public Benefit”; NO minimum affordability restrictions Revenue Captures only revenues from increased value; base value property taxes still paid to all local jurisdictions May capture all revenues from the jurisdiction approving the abatement Limits No maximum on annual increment or number of TIF districts Annual revenue may not exceed 10% of jurisdiction’s net tax capacity (Edina -$16.4 million) Term 26-year Maximum 15-year Maximum if full participation; 20-year if school or county “opt out” Management Funds remitted directly by County; requires separate accounting fund and OSA reporting Must include as part of annual City levy; managed internally and NO reporting 16 •Rental Housing -applied to each building in District 20% of units restricted to occupancy at 50% of median income; or 40% of units restricted to occupancy at 60% of median income •Owner-Occupied Housing –Income limits applied to 1st owner 2 or less persons at 100% of median income / 3+ at 115% •Redevelopment, Renewal, or Soils TIF Districts Can be used for projects with redevelopment or contamination needs Affordability negotiated as part of assistance agreement TIF Housing Restrictions 17 •Pay-as-you-go Note Developer funds eligible expenses and is repaid with interest, over time, from available tax increment / abatement revenues Limits risk to public authority if term expires before note is retired •Bonds / Interfund Loan Authority issues bonds or uses cash to fund eligible expenses Repayment comes from anticipated tax increment / abatement revenues Bonds can carry General Obligation pledge to lower interest costs Higher Risk: can be mitigated (but not eliminated) with developer guarantees TIF / Abatement Financing Options 18 •Ability to use increment to assist projects outside of its TIF district No limitation for pooling originating from Housing TIF Districts Can fund direct project expenses of the HRA for eligible projects Land Assembly / Write Down, infrastructure, grant, repay bonds Can use as developer’s financing for project Issue a Loan / Cash Flow Note repaid from project revenues / deferral •Projects and expenditure must qualify under terms of original district Use from a non-Housing TIF District is limited TIF Pooling 19 •Flexible Revenues: Can fund staff, capital outlay, studies and operations of HRA Pay debt service (obligate levy as security or supplement City debt) Source revolving loan funds •Maximum HRA Levy: 0.0185% of City’s estimated market value $13,471,921,000 EMV = $2,492,305 statutory HRA levy limit Tax Impact: added to total levies that are spread across the tax base Current 2021 HRA Levy is $230,400 Tool: HRA Levy 20 •Gap/bridge loans for new (re)development or preservation •Potential to offer a subsidized interest rate or more favorable payment terms than commercial lending market •Needs a source of initial or continued funding (capitalization) HRA Levy TIF Pooling (with restrictions) Others •Policy sets parameters for size, duration, application and review Tool: Revolving Loan Funds 21 •Dedicate revenues in “trust” for housing uses in community Grants, loans, guarantees Matching funds Payment/rental assistance Counseling services •Partner with nonprofit or joint powers entity •Each trust specifies targets for housing type / programming Tool: Local Housing Trust Fund 22 •HIA is a tool to provide financing for improvements needed to maintain/preserve existing housing units •City-funding to private owners / Associations for common area improvements when conventional financing not available Eligible Improvements -defined by local policy / enabling ordinance •Repayment through Fee collected with property tax payments Mechanism similar to “special assessments” Fee may be imposed based on unit’s tax capacity, sq. footage or fair alternative •HRA can serve as “implementing entity” and may appoint Advisory Board Tool: Housing Improvement Areas (HIA) 23 •Owners submit petition for public hearing (> 50% owners signed) •Owners / Association determines needed improvements Third-party financial plan to address operations and maintenance submitted prior to approval •HIA is established by City ordinance following hearing Notice published and mailed to each owner Prior to adoption, an owner may file objection if property would not benefit (determination to exclude property made within 60 days) •Fee established by resolution after additional public hearing •Veto process prior to effective dates of ordinance and resolution Housing Improvement Areas (HIA) 24 •Best Practices: Establish HIA policy to govern program for multiple HIAs Impose higher petition requirements, refine goals Establish Application process Request evidence of project scope and public financing need Discuss process for requiring competitive bids, submitting costs Require Development or Financing Agreement for each project Set terms for disbursement of funds, schedule for construction Require project and property management, additional security Housing Improvement Areas (HIA) 25 •Advance City Funds “Loan” repaid through HIA Fee revenue •Taxable Bonds Can carry General Obligation pledge to lower interest costs HIA Fees set to provide 105% coverage for term of debt •Consideration given for HIA Fee prepayment •Can include administration charge within HIA Fee amount HIA Financing Options 26 •Municipal Bonds -debt instrument for public purpose •Interest can be tax-exempt to the bond purchaser for certain projects •Bond Security: General Obligation or Revenue General Obligation is backed by the full faith and credit “AAA” credit rating carries most favorable terms and financing costs Revenue Bond limits the specific repayment source Project revenue, TIF, mortgage on property, etc. •Conduit or Pass-Through Bonding (discussed later) Tool: Public Project Bonding 27 •Repayment Term can be 1 to 40 years •Up to 100% financing •Subject to underwriting and negotiated terms based on security and potential purchaser Revenue bonds –more limited based on source of repayment / collateral •Term and size of bonds dictates buyer Publicly offered securities –bought and sold in the marketplace Private placement –placed direct to financial institution or other Public Project Bonding 28 •HRA can issue “revenue bonds” Lease revenue bonds for land / public facilities Section 8 Bonds for public housing TIF Bonds for qualifying project •HRA can obligate levy as a source of repayment for projects Limited tax revenue bond of the HRA •HRA can issue revenue bonds backed by City’s G.O. Only for HRA owned senior or affordable housing –M.S. 469.034 Public Project Bonding 29 •Tax Code and MN Statute allow municipalities to act as “Conduit Issuer” of bonds for benefit of certain types of borrowers •Provides tax-advantaged interest to the purchaser Sold at lower interest rates / lower overall cost of financing •Borrower agrees to indemnify Conduit Issuer for costs, expenses, liabilities Conduit issuer not responsible for payment -no credit impact Borrower incurs time and costs for bond structuring and placement Conduit issuers typically charge administrative fee for issuance Funding Partner –Tax Exempt Bonds (TEB) 30 •Conduit bonds issued on behalf of for-profit developers requires bond allocation from State of MN “Volume Cap” allocation given annually to: Entitlement Issuers (MHFA, Minneapolis, St. Paul and Dakota County) Pools Administered by MMB (Housing, Small Issue and Public Facilities) New allocation each January, additional potentially available from unused pool in July Volume Cap bonds will not negatively impact conduit issuer’s ability to issue its own “bank-qualified” bonds •Process involves sponsoring application to State and public hearing(s) •4% Tax Credit Project –50% of project basis must be financed by TEB Funding Partner –Tax Exempt Bonds (TEB) 31 •Technically not a debt or obligation of the municipality…so no concerns? Non-volume cap bonds can impact City’s “bank qualification” IRS inquiry goes to (through) the Issuer Issuers have been sued –actual risk depends on role in project Name Association or perception of unfair competition Administration •Best Practice: establish local policy and review with bond counsel / advisors Funding Partner –Tax Exempt Bonds (TEB) 32 •Ambassador Services –POC to navigate regulatory environment / sponsor •Zoning Incentives Typically allows for greater density in exchange for some public benefit (e.g. affordable housing or project enhancements) •Fee Reductions or Waivers Sewer, Water or other Infrastructure Fees / Park Dedication Can use public funding source to offset infrastructure burden HRA Levy / Loan Funds or TIF Pooling •“4d” Property Classification and PILOT tax reduction programs Other Tools: Regulatory Incentives Nick Anhut Senior Municipal Advisor Date: April 22, 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:Update on redevelopment planning for 5146 Eden Avenue (20-min) 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. I N TR O D U C TI O N: B ill Neuendorf will provide an update on the status of the project and recommended next steps.