HomeMy WebLinkAbout2018-07-26 HRA Regular Meeting MinutesMINUTES
OF REGULAR MEETING
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
JULY 26, 2018
7:30 A.M.
1. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 7:35 a.m.
11. ROLLCALL
Answering rollcall were Commissioners Fischer, Staunton, Chair Hovland, and Stewart.
Absent: Brindle
III. APPROVAL OF MEETING AGENDA
Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the
Meeting Agenda.
Ayes: Fischer, Hovland, Staunton, Stewart
Motion carried.
IV. COMMUNITY COMMENT — None.
V. CONSENT AGENDA ADOPTED
Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the
consent agenda.
V.A. Minutes of July 13 and 16, 2018 Recessed Meetings.
V.B. Acknowledging an Interfund Loan for Advance of Certain Costs in Connection with
Grandview 2 TIF District.
V.C. Authorize Temporary License Agreement with Stevens Construction Corporation.
VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present
to approve except where noted).
VI.A. Potential Sale of Real Estate at 5146 Eden Avenue — Updated Business Terms with
Frauenshuh, Inc.
Mr. Neuendorf explained that on June 28, the HRA named Frauenshuh, Inc, the preferred developer for the site
at 5146 Eden Avenue and since that time, staff and developer agreed on a simplified deal structure and a new
concept that subdivided the site into two parcels allowing each party to construct a separate stand-alone building
and add more parking. Mr. Dave Anderson, Frauenshuh, Inc, showed a new rendering with the site divided into
two parcels.
The HRA discussed the following:
I Land Price: the business terms included selling the land to Frauenshuh for a proposed sales price of
$2.989 million. The HRA recommended an appraisal of the land because the proposed sale price was
$2.5 million less than the sale price of the old school bus garage.
2. Affordable Housing: Frauenshuh requested $1.2 million in low interest loan from the HRA or Edina
Housing Foundation. The HRA suggested the Foundation administer the loan, if approved, and the HRA
would like a 30-year term of affordability instead of the usual I5-year term.
3. Public Space: Victor Pechaty, HGA Architects, presented an initial programmatic study of the new public
building and outdoor space and Director Kattreh presented proposed capital costs and net operation
loss. The HRA expressed a desire to have an event space and space that would serve as a hub for the
community and potential light rail users. The HRA acknowledged the increased costs for adding these
extra amenities and additional parking.
The HRA directed staff to perform an appraisal of the land, consider preserving space for a light rail station,
consider a new public building design that included an event space, and get feedback from the Edina Housing
Foundation on loan disbursement.
Page I
Scptt Neal, Executive Director
Minutes/HRA/July 26, 2018
VI.B. PROJECT UPDATE
Mr. Neuendorf updated the HRA on several potential redevelopment projects that may involve the HRA.
VI.C. TAX INCREMENT FINANCING FOR PENTAGON PARK SOUTH: 4815-4901 WEST 77TH STREET
AND 7710 COMPUTER AVENUE
Mr. Neuendorf explained that staff reached an agreement with developers Hillcrest Development and Solomon
Real Estate to build a two-phase project to serve as a catalyst development on the Pentagon Park South parcel.
The agreement reached included $18.1 million in a TIF pay-as-you-go note to be issued as three payment notes,
and a minimum special assessment agreement.
The HRA noted that initially, staff had recommended TIF amount of $14.1 million and asked what changed why
staff was recommending the developer's full TIF request of $18.1 million. Mr. Anhut explained that staff still
believed the project's value was $14.1 million. However, with minimal risk to the City, staff was able to structure
an agreement for the developer's full requests with TIF payments made in three payment notes. Each note
would have conditions imposed at each stage of payment to protect the City. Additionally, the minimum
assessment would be implemented if the value of the project was below the value of the TIF note.
Motion made by Commissioner Fischer seconded by Commissioner Stewart approving the terms
negotiated with the developers and authorizing staff to prepare a full Tax Increment Financing
Agreement for the Pentagon Park South project.
Ayes: Fischer, Hovland, Stewart
Nay: Staunton
Absent: Brindle
Motion carried.
VII. ADJOURNMENT
There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:45
a.m.
Respectfully submitted,
2