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HomeMy WebLinkAbout2019-03-28 HRA Regular MinutesMINUTES OF THE REGULAR EDINA HOUSING AND REDEVELOPMENT AUTHORITY MEETING MARCH 28, 2019 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:32 a.m. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton, and Chair Hovland. Absent: None. 111. APPROVAL OF MEETING AGENDA Motion made by Commissioner Brindle seconded by Commissioner Fischer approving the meeting agenda. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. IV. COMMUNITY COMMENT None. V. CONSENT AGENDA — APPROVED AS REVISED Motion made by Commissioner Fischer seconded by Commissioner Staunton approving the consent agenda as revised, removing Item V.B. Approve Revised Affordable Housing Policy. V.A. RECEIVE PAYMENT OF CLAIMS AS PER CHECK REGISTER DATED MARCH 25, 2019, TOTAL $222,218.21 • • • A p e •p • Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA V.B. REVISED AFFORDABLE HOUSING POLICY - APPROVED The HRA shared concerns about increasing the proposed fee to $125,000 that formally was $100,000. Manager Neal said the amount was in error and was intended to remain at $100,000. The HRA spoke about the former ownership table and MFHA guidelines was either a consistent approach or exceptions, especially with a senior cooperative. The HRA noted the importance of ensuring enough flexibility in the tables to not limit MFHA as the units could be priced at $300,000 or even more. Affordable Housing Manager Hawkinson responded the policy included flexibility and aligned with the Come Home to Edina program reflected in the table. Motion made by Mayor Hovland seconded by Commissioner Brindle approving the revised Affordable Housing Policy. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to approve except where noted). W.A. RESPONSE TO PETITION: CENTENNIAL LAKES VILLAGE HOMES CONDOMINIUM ASSOCIATION PARK MAINTENANCE FEES - ACCEPTED Mr. Neal explained that Centennial Lakes Village Homeowners petitioned the HRA to terminate the requirement to pay park maintenance fees per the terms of their agreement and that staff recommended the continuation of Page I Minutes/HRA/March 28, 2019 collecting all park maintenance fees until the agreements terminated. The issue was tabled and staff was directed to return with information regarding the affordability requirement for the condominiums. The HRA asked questions about breaking up the number of years from the original 40 years to 30 and 10 years. City Attorney Schutt shared that their assumption was the agreement was drafted with a 30-year time limit and 10-year renewal with the Statute on covenants considered and that the question was whether the covenant was public or private. The HRA asked what proportion of park maintenance was covered and whether it prevented the City from assessing for these costs. Finance Director Uram responded the homeowner's association (HOA) paid approximately 30% of the overall operating expenses and had not been assessed for any improvements. The HRA referred to the covenant and public versus private and conclusions reached by the City Attorney as the intent under Statute was to reach the 40-year timeframe and having a covenant eliminate the agreed-upon negotiation. The HRA asked more questions on the amount paid and why this should be moved into the General Fund. Mr. Uram explained the catch-up provisions for the last six years and that the HOA did not pay in 2018 but paid an additional $75,000. He said the recommendation was based on the financial stability of Centennial Lakes that continued to lose money year after year and now would be the right time to move the funding with the two- year budget cycle coming forward. Mr. Neal noted that decision was not in front of the HRA today but would be in later budget cycles. The HRA spoke about 91% of units fall in guidelines of new affordable housing policy and as the only affordable housing complex on Centennial Lakes, it paid the most of all the residential properties. Mr. Uram explained the amounts lost if capped at $15/month as $500,000 over the next 10 years and if given up completely, would not be consistent with other agreements and would cost the City $1 million. The HRA spoke about fairness within the neighborhood versus fairness for the City and discussion was held on what other residential locations agreements paid compared to others. Mr. Neal agreed the HRA could change the agreement but noted the concern was a slippery slope as there were enough maintenance fees at risk that could affect the general taxpayer. Ms. Schutt noted 10 agreements with fees into perpetuity and 20 agreements were 40-year agreements. The HRA indicated while everyone used the park, this was just a portion of the cost of maintaining the park and if more people used the park, it affected the current owners and not the rest of the City. The HRA stated the City was continuing to invest in this park and not assess costs back to the property owners for improvements such as bridges. Discussion was held about property values if not located on the park, building upkeep in the coming years, and HOA fees that would increase over time for items such as roof, siding, etc. and where would the park fee fit into this equation. The HRA said it was open to capping the fee over the next 10 years but were concerned about lack of income data for property owners. Motion made by Commissioner Staunton seconded by Commissioner Fischer to deny petition submitted by homeowners of Village Homes at Centennial Lakes to eliminate the park maintenance fee. Ayes: Fischer, Staunton and Hovland Nays: Anderson, Brindle Motion carried. The HRA expressed interest in something less than a 10-year term in auto renewal or cap in maintenance fees and stressed the importance to keep units affordable in regard to park maintenance fees and affordability. The HRA requested review of the original mortgages and intent over time of price restrictions of sale price. Ms. Hawkinson said the initial buyers' income qualified but staff could not find documentation that subsequent 2 aor..Scott Neal, Executive Directo Minutes/HRA/March 28, 2019 property owners had to be income qualified and the consensus was for the HRA to hold a worksession regarding fee discussion. The HRA confirmed the direction of changing from negotiating a deal of 30 years ago to naturally occurring affordable housing and how the HRA could support that important distinction and not change agreements surrounding Centennial Lakes but naturally occurring affordable housing. VI.B. POLICY FOR USE OF PUBLIC FINANCIAL INCENTIVES - REVIEWED Economic Development Manager Neuendorf explained the updates to current public financial incentives policy that embraced community engagement and intent to use Better Together Edina to solicit input and ideas from the general community. He reviewed principles, guidelines, assistance, public benefits, performance measures, outcomes, acceptable level of risk, establishment of new TIF districts, property tax abatement possibilities, communication, and evaluation. Staff was seeking input on preferences and concerns of the HRA as well as other types of public financial incentives to create a draft of the new updated policy. The HRA provided comment on the but/for test threshold, risk to the City, what's in it for the City, and percentage of tax capacity tied up in TIF projects. The HRA stated it would like to explore other alternatives such as GO Bonds and that there was a lot of confusion about TIF that had to be considered with the feedback. The HRA said it needed to be cautious and consider potential partners and balance as TIF was the single best tool available and how the bigger the policy, the more confusion that could be created. The HRA suggested removing the term incentives from the policy as the outcome was the ability to partner with City, not an incentive and said reasons for granting TIF was to enhance public good for reasons such as access to affordable housing, significant public parking, storm water management, safer pedestrian access, or increased housing districts. VII. CORRESPONDENCE VII.A. Correspondence — None VIII. HRA COMMISSIONERS' COMMENTS — None IX. EXECUTIVE DIRECTOR'S COMMENTS IX.A. GO-AHEAD LETTER RECEIVED FOR 4500 FRANCE AVENUE - Received IX.B. 4435 PARKLAWN AVENUE - Received X. ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:14 a.m. Respectfully submitted, 3