HomeMy WebLinkAbout2014-02-18 HRA Regular Meeting MINUTES
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT CITY HALL
FEBRUARY 18,2014
8:55 p.m.
CALL TO ORDER
Chair Hovland called the HRA meeting to order at 8:55 p.m.
ROLLCALL
Answering rollcall were Commissioners Bennett, Brindle,Sprague, Swenson and Chair Hovland.
APPROVAL OF MEETING AGENDA
Motion made by Commissioner Swenson, seconded by Commissioner Sprague approving the Meeting
Agenda..
Ayes: Bennett, Brindle,Sprague,Swenson, Hovland
Motion carried.
MINUTES OF THE REGULAR MEETING OF FEBRUARY 3,2014 APPROVED
Motion made by Commissioner Swenson,seconded by Commissioner Bennett approving the Minutes of the
Meeting of the Edina Housing and Redevelopment Authority for February 3, 2014
Ayes: Bennett, Brindle, Sprague, Swenson, Hovland
Motion carried.
AUTHORIZATION TO FUND CAPITAL IMPROVEMENTS AT Se AND FRANCE PARKING RAMPS
• Economic Development Manager Neuendorf noted the City Council had held a hearing on proposed parking
ramp and wayfinding improvements at the 50th and France Business District. He said that Kimley-Horn had
prepared a Feasibility Study for Improvements No. P-23 to the public parking ramps at 501h and France. The
total proposed budget was $5,685,000. Repair and maintenance items were estimated to cost $3,310,000
while the estimate for capital improvements was$2,375,000.
Continuing, Mr. Neuendorf explained the City has worked with private business owners to build, operate and
maintain shared public parking to support nearly 500,000 square feet of commercial space at 50th and France.
Original construction of the South, Middle and North Ramps was funded by the Edina Housing and
Redevelopment Authority (HRA). Tax increment financing was typically used for construction costs. Like the
current proposal, operating and maintenance costs were historically funded by the business owners who
benefit from the ramps.
Mr. Neuendorf stated that $2,375,000 was being requested from the Centennial Lakes TIF Fund to fund the
improvement. He said currently the Centennial Lakes TIF Fund has a balance of approximately$6.0 million not
yet committed. That balance should increase to approximately $9.2 million after final incremental taxes have
been collected in December 2014.
Member Swenson made a motion seconded by Member Sprague authorizing the use of Centennial Lake TIF
Funds to fund the proposed public parking ramp and wayfinding Improvements No. P-23 at the 50th and
France Business District.
Ayes: Bennett, Brindle,Sprague, Swenson, Hovland
• Motion carried.
Motion of Commissioner Bennett, seconded by Commissioner Swenson to recess the Edina Housing and
Redevelopment Authority Meeting at 9:05 p.m.
Ayes: Bennett, Brindle, Sprague,Swenson, Hovland
Minutes/Edina Housing and Redevelopment Authority/February 18, 2014
Motion carried.
Motion of Commissioner Bennett, seconded by Commissioner Swenson to reconvene the Edina Housing and
Redevelopment Authority Meeting at 10:17 p.m.
Ayes: Bennett, Brindle, Sprague, Swenson, Hovland
Motion carried.
RESOLUTION NO. 2014-2 MODIFYING SOUTHEAST EDINA REDEVELOPMENT PLAN, ESTABLISHING PENTAGON
PARK TAX INCREMENT FINANCING DISTRICT AND TAX INCREMENT FINANCING PLAN.
Mr. Neuendorf stated the Pentagon Park office park, consisting of fifteen multi-tenant office buildings, was
built in the late 1960s. For several decades, it was well positioned in the market place and had much success.
In the past decade however, its dated layout and aging infrastructure has made it considerable less desirable.
During the January 8, 2013 City Council work session, the Pentagon Park area was one of several identified as
potential locations where a new Tax Increment Financing (TIF) District may be warranted.
Since 2004, the assessed valuation of the Pentagon Park properties has declined by 60%. The vacancy rate of
some of the buildings far exceeds that of the marketplace. Nearly every building requires significant repair
after several years of deferred maintenance. The area is in need of redevelopment so that this downward
trend is reversed.
The City retained Ehlers & Associates as well as other professionals to inspect the existing buildings and
prepare the TIF Plan and necessary modifications to the Redevelopment Project Area. LHB, Inc. inspected each
building in recent months and determined that the proposed District satisfies the requirements for creation of
a 26-year TIF Redevelopment District.
Hillcrest Development, the new owner envisions a complete transformation of the private properties in the
future. While no specific design has been decided upon at this time, the future land use will include a mixture
of uses and will likely require significant improvements in the public infrastructure.The establishment of a new
Tax Increment Financing District would allow the City to consider a public/private partnership in the future so
that the full potential of this important business/mixed use district
Following a brief discussion, Commissioner Swenson made a motion to adopt Resolution No. 2014-02
modifying Southeast Edina Redevelopment Plan, establishing Pentagon Park Tax Increment Financing
District and Tax Increment Financing Plan. Commissioner Sprague seconded the motion.
Ayes: Bennett, Brindle, Sprague, Swenson, Hovland
Motion carried.
Chair Hovland declared the meeting adjourned at 10:18 p.m.
Respectfully submitted,
Scott Neal, Executive Director