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HomeMy WebLinkAbout2018-04-12 HRA Regular Meeting MinutesMINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 12, 2018 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:32 A.M. II. ROLLCALL Answering rollcall were Commissioners Brindle, Fischer, Staunton, and Chair Hovland and Stewart. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the Meeting Agenda. Ayes: Brindle, Fischer, Staunton, Hovland, Stewart Motion carried. ►V. COMMUNITY COMMENT No community comment was received. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Staunton approving the consent agenda as revised to remove Item B. Request for Purchase with Interstate Parking Management Services, as follows: V. A. Approve minutes of March 29, 2018 Regular HRA Meeting. Ayes: Brindle, Fischer, Staunton, Hovland, Stewart Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA V.B. Request for Purchase from Interstate Parking Management Services Mr. Bill Neuendorf, economic development manager, was asked why the cost of providing this service wasn't split between the City/HRA and Saturday Properties. Mr. Neuendorf said the City would like to have full control managing the challenges they are experiencing. He said they had an initial conversation about splitting the cost two-thirds and one-third, but this was not finalized. Mr. Neuendorf will revisit this conversation. Motion made by Commissioner Stewart seconded by Commissioner Brindle approving the Request for Purchase with Interstate Parking Management Services. Ayes: Brindle, Fischer, Staunton, Hovland, Stewart Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT FOR 5146 EDEN AVENUE Mr. Neuendorf explained that the amendment to the preliminary development agreement would allow additional time to explore financing alternatives suggested by the HRA, and allow Frauenshuh to engage an architect to look at Plan B (mid-rise building) for a cost of $12,500 (100% City expense). Frauenshuh is agreeable to the amendment. The following were noted or discussed by the Commission: • Civic building is still too small for its intended use. • For $12,500, the City would receive a complete study and design of Plan B which would help in understanding how TIF funds could be used. Page I Minutes/HRA/April 12, 2018 • Revenue stream may not be different for the City; if the building is shorter, the developer may be able to contribute more. • The HRA would be taking on the role of master developer, therefore, need to understand and manage risks associated with the project. • Developer should split $12,500 50/50. Motion by Commissioner Staunton seconded by Commissioner Fischer approving Amendment to Preliminary Development Agreement for time extension for 5146 Eden Avenue and second Amendment to the Agreement reflecting 50/50 cost sharing with the City absorbing $6,250 for alternate design option B. Ayes: Brindle, Fischer, Staunton, Hovland, Stewart Motion carried. VI.B. REQUEST FOR ASSISTANCE FOR 7250 FRANCE AVENUE SOUTH Mr. Neuendorf explained the building owner, Mr. Mark Marguiles, was considering complete redevelopment of the I .7-acre site, razing the building and replacing it with a mixed-use building with apartments and commercial space. Mr. Marguiles requested TIF funds to fill a financial gap created by extraordinary site conditions and restrictions on the rental income of 20 percent of units leased at affordable rates. Project costs would be $50M. Mr. Neuendorf said a new TIF district would be needed and there would be an opportunity to use the special legislation used on W. 66th Street. Staff recommended moving forward. Commissioners discussed the following: • Minimum term could be on a case-by-case basis (15, 20, 26) and agreed upon in developer's agreement. • City's consultants, Ehlers and Dorsey & Whitney to review performa and financials for better understanding if or why the City should contribute TIF funds. • Stormwater management is an issue at the site and Mr. Dean Dovolis, project architect, is designing mitigation plans that would allow the land to be developable; four properties currently drain to 7250 France Avenue and city engineer Chad Millner, said this was an opportunity for all property owners to work together to make improvements. • Access to France Avenue was important. • Financial feasibility without TIF was not known; at 20 percent affordable housing TIF contribution could be $8.5M. • Why is stormwater management considered extraordinary? Could property owners split costs? Staff to move forward in discussion with the developer. VIC. REQUEST FOR DEVELOPMENT ASSISTANCE FOR PENTAGON PARK NORTH, 4600- 4660 W. 77TH STREET Mr. Neuendorf explained the property owner (Hillcrest) intends to sell the parcels at 4600 to 4660 W. 77th Street to a different developer (Chase Real Estate) for construction of two new residential buildings and the new developer requested TIF funds to offset cost because of extraordinary porous soil conditions. TIF expires June 2019 for this district. Mr. Neuendorf said Chase Real Estate submitted an application this week to redevelop 11 acres which would include demolishing four existing buildings and building two new residential buildings. Project costs is estimated at $140M. Chase does not intend to include affordable units in their buildings but Hillcrest would elsewhere. A TIF district is already established and a master agreement is in place. City consultant, Mr. Nick Anhut, Ehlers & Associates, reviewed their performa and said this would be structured similar to Market Street; he acknowledged the soils were bad; he said the City would need to issue a note before June 2019 but this should not present any additional risks for the City. City's estimated contribution was $14M or 10 percent. Commissioners discussed the following: • Needs to see significant benefit when using TIF and affordable housing was not planned. • Chase may be overpaying for the land and do not want to subsidize this. • TIF district was established to leverage access to the park and trail; what benefits would the City gain? Page 2 Minutes/HRA/April 12, 2018 • Need to know timeline for developing affordable housing and where would they be built. • Assurance of bond for affordable housing. • Concerns shifting from commercial to residential includes security for affordable housing, and getting parking for the park (currently in the master agreement). • Project to be sub-divided into phases; there are no park dedication fee; master agreement includes park maintenance fee. Staff to move forward in discussion with the developer. VII. CORRESPONDENCE No correspondence. IX. HRA COMMISSIONERS COMMENTS No comments. X EXECUTIVE DIRECTOR'S COMMENTS No comments. XII. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland adjourned the meeting at 9:07 a.m. Respectfully submitted, Scott Nea Executive Director 3