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HomeMy WebLinkAbout2018-05-24 HRA Regular Meeting MinutesMINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY MAY 24, 2018 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:34 a.m. II. ROLLCALL Answering rollcall were Commissioners Brindle, Fischer, Chair Hovland, Staunton, and Stewart. III. APPROVAL OF MEETING AGENDA Motion made by Commissioner Fischer seconded by Commissioner Stewart amending the agenda by removing Consent Agenda Item V.D. Pentagon Park Master Redevelopment Agreement Update and approving the Meeting Agenda. Ayes: Brindle, Fischer, Hovland, Staunton, Stewart Motion carried. IV. COMMUNITY COMMENT— None. V. CONSENT AGENDA ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the consent agenda as follows: V.A. Approve minutes of May I0, 2018 Regular HRA Meeting. V.B. Approve Release Agreement with the City of Edina Housing and Redevelopment Authority and Centennial Lakes Plaza, LLC, 7401 and 7501 France Avenue. V.C. Approve Second Amendment to Edina Market Street Redevelopment Agreement. Ayes: Brindle, Fischer, Hovland, Staunton, Stewart Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. 5146 EDEN AVENUE FINAL ACTION REGARDING PRELIMINARY DEVELOPMENT AGREEMENT WITH FRAUENSHUH, INC. Economic Development Manager Neuendorf stated staff recommended terminating the May 31, 2018, preliminary development agreement with Frauenshuh, Inc. Mr. Neuendorf explained that while staff continued working with the Frauenshuh, Inc. team and had extended the agreement twice, they were no closer to resolving outstanding issues. Mr. Neuendorf said late last night, staff received a letter requesting another 30-day extension and new concepts Scenario B.1 and B.2. He said the new concepts may change staff's recommendation but he was not able to review them given the late submission. The HRA asked what impact another 30-day extension would have and Mr. Neuendorf explained that within the last two weeks staff made significant progress with Frauenshuh, Inc.; however, there were several significant issues to be resolved including agreeing on the price of the land. The HRA agreed that progress was made within the last two weeks and felt that another extension would allow them to resolve outstanding issues. Dean Dovolis, DJR Architecture, presented Scenario B.1 and B.2. Mr. Dovolis explained that in both scenarios, the market rate and affordable housing units were combined; other changes included placing the civic space at the northwest corner for more green space and potential expansion, and combining private and public parking. Motion of Commissioner Fischer seconded by Commissioner Staunton to extend the Preliminary Development Agreement with Frauenshuh, Inc. 30-days. Ayes: Fischer, Hovland, Staunton, Stewart Nay: Brindle Motion carried. Page I Minutes/HRA/May 24, 2018 VI.B. REQUEST FOR DEVELOPMENT ASSISTANCE FOR PENTAGON PARK SOUTH, 4815- 4901 WEST 77TH STREET AND 7710 COMPUTER AVENUE; and V.D. PENTAGON PARK MASTER REDEVELOPMENT AGREEMENT UPDATE Mr. Neuendorf explained the I 2.I-acre south parcel site was proposed to be redeveloped into a mixed-use project including hotel, office and retail. A joint venture was anticipated with Hillcrest Properties, Pentagon Revival and Solomon Real Estates. The property owner and joint venture partner requested the use of tax increment financing (TIF) to offset the cost of some extraordinary site conditions. Mr. Neuendorf noted the amount of the request was not currently known because the team was still working on cost estimates; however, he noted an estimated amount of $5M for eligible reimbursable costs for soil remediation and district parking. He reminded the HRA that a TIF District was created in 2014 in anticipation of the redevelopment of the Pentagon Park area. Mr. Neuendorf offered 12 recommendations for discussion purposes as the HRA considered financial involvement. The HRA's discussion focused primarily on providing TIF for the construction of structured public parking. The HRA felt the businesses would benefit more than the public and therefore, TIF should not be the only funding source. Centennial Lakes and 50th & France were mentioned as areas with structured parking with pay-back options. Mr. Neuendorf noted that the 2014 Master Redevelopment Agreement included parking as an eligible qualified cost because park users would benefit; he also noted the complexity of developing the entire Pentagon Park area over a period with several different developers. The HRA said it was important to identify the scope and scale of the public infrastructure to understand the right amount of TIF. Regarding the Pentagon Park Master Redevelopment Agreement; Mr. Neuendorf updated the HRA that amendments would be necessary to coordinate with the pending proposals for the north and south parcels. He said the Master Agreement should be modified this summer so that construction could begin later this year. VI.C. RESOLUTION NO. 2018-04 SUPPORTING AFFORDABLY-PRICED HOUSING AT 4100 WEST 76TH STREET Mr. Neuendorf explained that Aeon, a non-profit developer of affordably-priced housing, requested TIF support of $2.4M (reduced from $3M) to build an 80-unit apartment. Aeon is pursuing other funding sources including the Minnesota Housing Finance Authority (MHFA) and local municipalities financial support was taken into strong consideration when MHFA evaluates the readiness of a project to secure tax credits. The MHFA application deadline was June 14. The HRA was supportive of the project because it aligned with their mission and purpose to have new housing at a variety of price points. Discussion included using TIF money to fund projects around the City so that affordably-priced housing was not restricted to certain areas and blending buildings seamlessly into the community; new affordable housing manager to help identify the roles of the HRA and the Edina Housing Foundation (EHF), and if the EHF would be better at distributing TIF funds; opportunity to learn and leverage resources beyond affordably-priced housing for residents with median income of 30-60 percent and consider median income of 80- 100 percent. Motion of Commissioner Staunton seconded by Commissioner Brindle approving Resolution 2018-04 demonstrating support for a new affordable housing project that is applying for tax credits in June 2018. Ayes: Brindle, Fischer, Hovland, Staunton, Stewart Motion carried. VII. CORRESPONDENCE VII.A. CORRESPONDENCE — None. IX MAYOR AND COUNCIL COMMENTS — None. 2 Minutes/HRA/May 24, 2018 X EXECUTIVE DIRECTOR'S COMMENTS Executive assistant Allison stated that Executive Director Neal recommended the HRA considered cancelling the July 12, August 30, September 27, and December 27 HRA meetings. Motion of Commissioner Brindle seconded by Commissioner Fischer approving staff to make proposed changes to the 2018 HRA Meeting Schedule. Ayes: Brindle, Fischer, Hovland, Staunton, Stewart Motion carried. XII. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:05 a.m. Respectfully submitted, Scott Neal, Executive Director 3