HomeMy WebLinkAbout2019-04-25 HRA Regular MinutesMINUTES
OF THE REGULAR MEETING
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 25, 2019
7:30 A.M.
1. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 7:30 a.m.
11. ROLLCALL
Answering rollcall were Commissioners, Brindle, Fischer, Staunton, and Chair Hovland.
Absent: Commissioner Anderson.
III. APPROVAL OF MEETING AGENDA — AS PRESENTED
Motion made by Commissioner Brindle seconded by Commissioner Fischer approving the
meeting agenda as presented.
Ayes: Brindle, Fischer, Staunton and Hovland
Motion carried.
IV. COMMUNITY COMMENT
None.
V. CONSENT AGENDA — AS PRESENTED
Motion made by Commissioner Fischer seconded by Commissioner Staunton approving the
consent agenda.
V.A. Approve Minutes of Regular Meeting of April 11, 2019
V.B. Receive Payment of Claims as Per Check Register Dated April 18, 2019, receive payment
of the following claims as shown as per pre-list dated April 4, 2019, and consisting of 2
pages: Total $92,990.94
V.C. Approve Amendment to Redevelopment Agreement with Orion 4500 France, LLC
Ayes: Brindle, Fischer, Staunton and Hovland
Motion carried.
VI. REPORTS/RECOMMENDATIONS — (Favorable vote of majority of HRA Board Members present to
approve except where noted).
VI.A. GRANT AGREEMENT — DECLARATION OF RESTRICTIVE COVENANTS AND ACCEPT PUBLIC
ACCESS EASEMENT WITH AEON FOR 7008 SANDELL AVENUE — APPROVED
Affordable Housing Development Manager Hawkinson stated Aeon, a Minnesota non-profit affordable housing
owner and developer, intended to acquire 7008 Sandell Avenue. With Edina Housing and Redevelopment
Authority (HRA) assistance, Aeon would reduce rents on 40 percent of the units to be affordable to households
with incomes at or below 60 percent of Area Medium Income (AMI), with the remaining units to remain as
affordable to households with incomes at or below 80 percent of AMI. The affordability period would remain in
place for 30 years. She stated with the assistance of legal and financial advisors, staff negotiated general terms
and conditions which were approved by the HRA February 28, 2019, and special counsel Dorsey & Whitney
prepared a full Grant Agreement based on these terms. She shared details about the about property that
consisted of I I units, two-story with a garden level, all two-bedroom units and said the grant request was for
$350,000 which was I% of the overall budget as Aeon would acquire 16 buildings in total, with one in Edina. Ms.
Hawkinson said the intent was for the units to remain affordable for 30 years then outlined the ownership and
document structure. She said the proposed terms were the same as presented in February with the exception
of the City's right of first refusal should Aeon wish to sell the property because Freddie Mac could not allow
that provision. She stated that while this term was different staff supported it because Aeon was a long-term
holder of properties and that this should not be a concern.
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Exec tive Director
Minutes/HRA/April 25, 2019
The Commission inquired about extending the term of affordability after the initial 30-year term in order to
keep the property affordable into perpetuity. Ms. Hawkinson said that Aeon's mission was to provide affordable
housing well into the future and noted that in 30 years the property originally constructed in the 1960s would
be 30 years older and will likely not be in very good condition to have it be anything other than affordable.
The Commission inquired about the closing date and the public access agreement. Ms. Hawkinson said Aeon
intended to close in May and said the public access agreement provided for an easement for 15 feet from the
border of Sandell Avenue into their lot to allow for a future promenade on the west side as outlined in the
Southdale Area Plan. She said this action would allow the City to extend the promenade and a recent meeting
with the Metropolitan Council showed the path on the eastern side was incorporated was well.
The Commission thanked staff for their work to incorporate this project into the overall big picture of the area
with items such as a public access.
Motion made by Commissioner Fischer seconded by Commissioner Brindle to approve Grant
Agreement Declaration of Restrictive Covenants and Accept Public Access Easement with Aeon
for 7008 Sandell Avenue.
Ayes: Brindle, Fischer, Staunton, and Hovland
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 7:53
a.m.
Respectfully submitted,
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