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HomeMy WebLinkAbout2019-01-31 HRA Regular MinutesMINUTES OF REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 31, 2019 7:30 A.M. I. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:30 a.m. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, and Chair Hovland. Absent: Commissioner Staunton. 111. APPROVAL OF MEETING AGENDA Motion made by Commissioner Brindle seconded by Commissioner Fischer approving the meeting agenda. Ayes: Anderson, Brindle, Fischer, and Hovland Motion carried. IV. COMMUNITY COMMENT - None V. CONSENT AGENDA — ADOPTED Motion made by Commissioner Fischer seconded by Commissioner Anderson approving the consent agenda. V.A. Approve Minutes of Regular and Work Session Meetings of January 17, 2019 V.B. Adopt Resolution No. 2019-03: Designating Official Newspaper V.C. Adopt Resolution No. 2019-04: Designating Official Depositories Ayes: Anderson, Brindle, Fischer, and Hovland Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to approve except where noted). VI.A. LETTER OF SUPPORT FOR AFFORDABLE HOUSING AT 7075-7079 AMUNDSON AVENUE Affordable Housing Development Manager Hawkinson introduced Edina Housing Foundation (EHF) Board member Ann Swenson who shared EHF's support of affordable housing project and explained how MWF Properties (MWF) was selected based on their 20 years of experience and planned to provide a variety of I, 2 and 3-bedroom units. Board member Swenson explained that MWF was interested in working with the school district and area hospital to provide workforce housing choices and said the project would be compliant with the Small Area Plan (SAP) and potentially provide trail access. Affordable Housing Development Manager Hawkinson explained the long, difficult process of financing affordable housing and deadlines that must be met. She stated the first application to finance MWF Properties proposal was due February 7 and Hennepin County required a general letter of support from the City. Ms. Hawkinson said the HRA would review the sketch plan in the spring and allowed an opportunity for specific questions regarding financing, but the applicant was requesting consensus at this time because of the application deadline. The HRA asked if the property had been sold to MWF. Ms. Hawkinson explained a purchase agreement had been signed but closing was on hold due to the need to secure financing prior to conveyance and outlined next steps that included the anticipated need for $700,000 of gap financing. She stated the process had yet to be determined but could be provided through acquisition of land sold to MWF at a discounted price, combination of TIF funding, or other financing. The HRA commented on proposed site plan and elevations and said while pleased the plan conformed to the SAP they understood it was early in the process and could be different during sketch plan review. The HRA Page I Minutes/HRA/January 31, 2019 stressed the importance of the bike trail and parking to the east of the building but because of trail traffic, suggested moving parking to the west on Amundson Avenue as well as moving the tot lot. The HRA expressed and concerns about the proposed approval timeline and the need for review at the Council level. Ms. Hawkinson confirmed the application deadline of February 6 and said that support could come from either the HRA or the Council. Manager Neal said staff recognized the timeline conflicts and stated the reason for HRA consideration was the HRA was not the same body as Council who had to grant regulatory approvals and waiting for Council would mean the possibility of missing the funding cycle and therefore a missed opportunity for outside funding. The HRA amended the letter of support. Motion made by Commissioner Anderson seconded by Commissioner Fischer approving letter of support for MWF Properties' application to Hennepin County for deferred financing for Amundson Flats, as edited by the HRA. Ayes: Anderson, Brindle, Fischer, and Hovland Motion carried. VI.B. PETITION: CENTENNIAL LAKES VILLAGE HOMES CONDOMINIUM ASSOCIATION PARK MAINTENANCE FEES The HRA expressed concern about public notice and process and asked why this was being reviewed at the HRA level and not the Council. Executive Director Neal explained there was no public hearing requirement and because the agreement was with the HRA, staff felt that an informational presentation to the HRA would be better. The Centennial Lakes Village Homes Condominium Association (Association) was made aware the HRA would not decide today. Finance Director Uram stated the Association petitioned the HRA to terminate the requirement to pay park maintenance fees per the terms of their agreement. He said agreements requiring a park maintenance fees were put into place for each of the six Association buildings and other adjacent properties back in the late 80's and 90's when Centennial Lakes Park was first constructed, as well as with properties adjacent to Edinborough Park, totaling 35 agreements. Financial Analyst Rich, explained the City's intent at the time was that the Centennial Lakes project (and the Edinborough project before that) would assume the responsibility of the long-term costs of maintaining the park and related landscaping. Ms. Rich shared relevant portions of the agreement which outlined reasons for the maintenance fee, public maintenance charge, and duration of term. The HRA asked questions regarding automatic renewal at the end of 30 years for an additional 10 years. City Attorney, Amy Schuck, explained that there was a Minnesota Statute that limits covenants on statutes and the agreements may have been set up to avoid the statute applying. Ms. Rich explained the sources and purpose of the funds that the Association sought to have removed from their properties and that expense exceeds revenue annually by approximately $250,000. Mr. Uram explained that staff was concerned about the financial stability of the Centennial Lakes fund and its ability to operate on its own as an enterprise fund. Mr. Uram stated early termination of the agreement could lead to more petitions resulting in a total loss of more than $500,000 in annual revenue. He recommended continuing the park maintenance fee agreement through the 40-year termination with a plan to move the Centennial Lakes fund into the General Fund starting with the 2020-2021 budget cycle. JoAnne Boche, 7440 Edinborough Way #4303, shared comments on why the park fees were outdated and unfair and asked to end them. Jean Otto, 7420 Edinborough Way #6318, shared comments on the public park being supported by park maintenance fees. She said this was an opportunity for expansion of these park fees and was the time to change to a public cost instead of only private cost and requested satisfaction of the covenant. 2 Minutes/HRA/January 3I, 2019 Lois Ring, 7440 Edinborough Way #41 17 stated the petition process was started last year because of the March 2019 agreement deadline. The HRA replied their intention was to act before the deadline. VI.C. AMENDMENT TO REDEVELOPMENT AGREEMENT WITH PENTAGON VILLAGE, LLC Economic Development Manager Neuendorf stated the City and HRA executed a Tax Increment Financing (TIF) Redevelopment Agreement with Pentagon Village, LLC on October 16, 2018, that pertained to the complete redevelopment of the 1 2-acre site. The three months since the developer secured site plan approvals and the TIF Agreement, they had begun site work and full project design. The developer requested modification to the site plan which was scheduled before the Planning Commission last night but was cancelled due to weather. Mr. Neuendorf summarized the changes that included a larger dual -brand hotel, change of design for extended stay hotel on grade, combination of two individual parking garages into one single garage, added conditions to protect the public interest, and expedited building of the mixed used building in Phase 1 instead Phase 2. Staff recommended approval of the amendment contingent upon review of the site plan by the Planning Commission. Jay Scott, developer, shared the expedited review process that was necessary due to the current weather and their hope to begin construction in February. Motion made by Commissioner Brindle seconded by Commissioner Fischer to approve Amendment No. I to the October 2018 Redevelopment Agreement with Pentagon Village, LLC, contingent upon the review and approval of the modified site plan by the Planning Commission. Ayes: Anderson, Brindle, Fischer, and Hovland Motion carried. VI1. CORRESPONDENCE VII.A. Correspondence — None VIII. HRA COMMISSIONERS' COMMENTS - Received IX. EXECUTIVE DIRECTOR'S COMMENTS IX.A. Project Update — Received X. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:23 a.m. Respectfully submitted, Scott Neal, Executive Director 3