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HomeMy WebLinkAbout2019-04-11 Regular MinutesMINUTES OF SPECIAL MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 11, 2019 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:33 a.m. 11. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton, and Chair Hovland. Absent: None. 111. APPROVAL OF MEETING AGENDA — AS AMENDED Motion made by Commissioner Staunton seconded by Commissioner Anderson approving the meeting agenda as amended to table Item VI.A to the next regular meeting. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. IV. COMMUNITY COMMENT None. V. CONSENT AGENDA — APPROVED AS PRESENTED Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the consent agenda. V.A. Approve Minutes of Special Meeting of March 19 and Regular Meeting of March 28, 2019 V.B. Request for Purchase, Awarding the Bid to the Recommended Low Bidder, Construction Services for Interlachen Boulevard and Vernon Avenue Roadway and Utility Improvements, SEH, Inc., $92,286.00 V.C. Request for Purchase, Awarding the Bid to the Recommended Low Bidder, Interlachen Boulevard and Vernon Avenue Roadway and Utility Improvements, Pember Companies, Inc., $994,141.46 Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA HRA Members present to approve except where noted). VI.A. GRANT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS WITH AEON FOR 7008 SANDELL AVENUE — TABLED TO NEXT MEETING VI.B. REDEVELOPMENT AGREEMENT WITH FRANCE EQUITIES, LLC, FOR 7200-7250 FRANCE AVENUE — APPROVED Economic Development Manager Neuendorf stated the item pertained to redevelopment of property located at 7200-7250 France Avenue. He outlined the basics of Tax Increment Financing (TIF) for the project and the $12 million gap request in TIF support to make the project viable. He said the gap could be resolved through a combination of additional developer equity, TIF, and outside grants which the developer intended to pursue. He outlined the minimum improvements for demolition and site preparation for the 5.19 acres, delivery of two apartment buildings with street level commercial space, for-sale townhomes, preservation of mature trees, and delivery of all easements. He outlined the total project cost of $111 million and summarized the funding source then shared the project budget of $22 million in costs and what improvements were allowed under Statute such as public realm improvements, stormwater, affordable housing, demolition and site work, structured parking, and professional fees. He stated staff recommended that a maximum of $12 million be reimbursed in a limited number of categories. Page I 2 tt ea , ecutive Minutes/HRA/April 1 1, 2019 The HRA asked for further clarification on budget versus actual and how funds could be applied towards future projects. Nick Anhut, Ehlers and Associates, explained how TIF required setting a budget for the life of the district and how the City was encompassing all TIF property for both affordable housing and townhomes, which was not pledged. He said the larger budget was only part as the City would retain 10% for future HRA project use and the $12 million was paid up front then repaid over 20 years with interest of $7-8 million. Mr. Anhut noted additional projects could be supported within this project as well. He said funds could be moved around and a cap needed to be established but did not obligate the City to spend this administrative funding. The HRA spoke about project value if more than anticipated and if it was possible to accumulate enough TIF to pay off the note early. Mr. Anhut said they included a 1% appreciation but noted the City was only pledging 90% of the mixed-use project increment to the TIF note. Mr. Neuendorf summarized the steps taken to date and next steps that included the term sheet approved in February, 20-year special housing district approved March, final site plan secured in April, and grants awarded from MN DEED and Metropolitan Council in the amount of $500,000. The HRA asked about the penalty should the need arise, if the entire project was sold at less than 15 years, and if the claw back provision had ever been collected upon. Mr. Neuendorf explained if the developer did not finish the townhomes on time the note would be reduced by $500,000 and said he was not aware of the need for the provision in Edina and noted he had only done it once in his career. Mr. Neuendorf summarized the final terms included how both parties would consider opportunities to extend the term past 25 years and spoke about how the 45% of land area included a public easement, conservation of 25,000 square feet of mature trees, covered parking for 2 I 7 stalls, road improvements paid for by developer of a portion of W. 72nd Street. The HRA complimented staff on the thoroughness of the agreement and said this would be an iconic project in the City. The HRA said while the most attractive elements were stormwater mitigation and the affordable housing component, there was hesitation to commit $5 million. There was interest for extensive affordability because Edina had an affordable housing issue to address and the computation was included in the gap. They spoke about equity that could be gained other places as there were ways to offset the interest commitment the City was making on the awarded TIF note and while they liked the project and its many aspects, it was worthy of TIF consideration as affordable housing was the biggest element. Motion made by Commissioner Brindle seconded by Commissioner Fischer to approve the Redevelopment Agreement and authorize staff to implement the terms of the agreement. Ayes: Brindle, Fischer, Staunton, and Hovland Nays: Anderson Motion carried. VII. CORRESPONDENCE VII.A. Correspondence — None VIII. HRA COMMISSIONERS' COMMENTS — None IX EXECUTIVE DIRECTOR'S COMMENTS — None X ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 8:27 a.m. Respectfully submitted,