Loading...
HomeMy WebLinkAbout2020-06-11 HRA regular minutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JUNE 11, 2020 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. and noted the meeting was being held virtually to comply with the Governor's Stay at Home Order due to the COVID-19 pandemic then explained the processes created for public comment. 11. ROLLCALL Answering rollcall were Members Anderson, Brindle, Fischer, Staunton, and Chair Hovland. 111. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Fischer, seconded by Commissioner Brindle, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. Executive Manager Neal introduced Management Fellow Risi Karim who shared her background of studies at the University of Kansas that included a master's in public administration and experience in legislative work then shared her excitement about the affordable housing initiative work in the City. VI. APPROVAL OF CONSENT AGENDA —AS PRESENTED VI.A. Approve minutes of May 28, 2020, Regular meeting Motion by Commissioner Brindle, seconded by Commissioner Anderson, approving the consent agenda as presented: Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VII. PUBLIC HEARINGS VII.A. RESOLUTION NO. 2020-03 AUTHORIZING SALE OF LAND TO AMUNDSON FLATS, LP AND APPROVE REDEVELOPMENT AGREEMENT -ADOPTED Housing Manager Hawkinson stated in July 2019 the HRA authorized staff to engage legal counsel to draft documents to acquire 7075-7079 Amundson Avenue from the Edina Housing Foundation for $1,300,000 and sell to MWF Properties for $600,000. Since that time, MWF had secured financing and site plan approval to complete this development and rather than convey the property to MWF Properties, the site would be conveyed to Amundson Flats, LP, of which MWF was a member of the General Partnership. She shared how the redevelopment agreement outlined requirements that the land be developed into 62 units of affordable housing that would remain affordable for 40 years and how in July 2018, the East Edina Housing Foundation (Foundation) acquired the Waldorf-Nevens at 7075-7079 Amundson Avenue (Parcel) and how the Foundation, through an RFP, unanimously selected MWF Properties, LLC (MWF) as their proposal was in keeping with the Foundation's vision. Ms. Hawkinson outlined MWF's proposal of a 100% workforce housing development with 62 one-, two- and three -bedroom units with underground parking, first floor patios, and a connection to the bike trail. The proposed rents would serve households with incomes between 30% and 70% of the Area Median Income. She explained in detail the financing and reasons for the HRA's Page 1 Minutes/HRA/June 11, 2020 acquisition of the site from The Foundation as well as the HRA's interest in having the Foundation maintain ownership until MWF had their financing secured and were prepared to assume ownership. To secure the intent of the land -sale write -down for the development of affordable housing, staff was also seeking approval of a redevelopment agreement between the HRA and Amundson Flats, LP. Ms. Hawkinson summarized the key terms of the redevelopment agreement that included a Declaration of Covenants and Restrictions that would be in place for 40 years and how if construction did not commence by January 2, 2021, the HRA could require the property be transferred back to the HRA. The HRA asked how to ensure the terms are followed up upon with our investment. Mr. Selke responded to the clawback provision and how the HRA could take the property back to ensure the project was created as outlined. Ms. Hawkinson added the group was fully funded then spoke about final stages of financing that had to be approved. Chair Hovland opened the public hearing at 7:50 a.m. Public Testimony Chris Stokka, MWF Properties, addressed the Board and shared how the construction date of 2021 was worst case scenario and their intent to break ground July or August of 2020. He noted how complicated redevelopment agreements could be and complemented staff and legal counsel on the remarkable job that addressed all comments regarding this project. Commissioner Staunton moved to close the public hearing. Member Brindle seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. Commissioner Staunton moved to adopt Resolution No. 2020-03 Authorizing Sale of Land to Amundson Flats, Limited Partnership and approve the Redevelopment Agreement. Member Fischer seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. VIII. REPORTS/RECOMMENDATIONS VIII.A. APPROVE A REVOLVING LOAN AND GRANT TO EXPAND LAND TRUST PROGRAM — APPROVED Ms. Hawkinson stated the City had been supporting the West Hennepin Affordable Housing Land Trust (WHAHLT), dba Homes Within Reach (HWR), since 2007 through the allocation of the City's Community Development Block Grant program funds. Since that time, 14 houses had been placed into a Land Trust to remain affordable for 99 years. The proposed revolving loan program was designed to expand the Homes Within Reach program number of affordable ownership homes in Edina by removing funding limitations through the creation of an Edina Revolving Loan program (ERLP) with two major provisions. She described in detail the Community Land Trust practice that would result in 7-12 families would be offered permanently affordable work -force housing. She outlined the target clientele and populations that would benefit from the activity and the community needs this activity addressed then outlined the budget request for $1,300,000 Revolving loan with an $840,000 Grant. The HRA commented how this proposal had been presented in detail in earlier worksessions and how the HRA was pleased with the proposal. They thanked staff for the idea of partnership with WHAHLT and how connected Ms. Hawkinson was with these programs and her ability to be creative to create programs that would help the community. Page 2 Minutes/HRA/june 11, 2020 Motion made by Commissioner Staunton, seconded by Commissioner Anderson, to approve a Revolving Loan and Grant to expand Land Trust Program and authorize staff to engage attorney to draft grant agreement and other necessary legal documents. Member Anderson seconded the motion. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, Hovland Motion carried. V►11.B. GRANDVIEW 2 TIF DISTRICT— PROGRAMMING FUNDS FOR PUBLIC INFRASTRUCTURE — REPORT RECEIVED Economic Development Manager Neuendorf shared this item pertained to construction of public infrastructure to serve the Grandview District. With incremental taxes beginning to be collected, staff recommended that a slate of public improvements be pursued to allow redevelopment goals of the TIF District to be achieved in the future. He outlined establishment of the Grandview 2 Tax Increment Financing (TIF) District established in 2016 to provide a funding source for public redevelopment improvements in portions of the Grandview District and potential improvements described in the 2012 Framework and subsequent Transportation Plan. He said the TIF District covered approximately 10.8 acres and included 15 parcels and adjacent streets. Since the time the TIF District was established, the Edina School District sold their property for private development. The Avidor — a new 55+ age -restricted apartment complex was constructed on that property and completed in 2019. No decision has been made about the development of the City's vacant property at 5146 Eden Avenue. After considering several options for combinations of public and private uses on the site from 2016 - 2018, a preferred scenario has not yet been identified. It did not appear that a development plan for the City's vacant site would be decided in the near future and in order to comply with the 5-year rule in Minnesota TIF Statutes, staff considered alternative strategies to achieve some of the goals identified in previous planning efforts that included delayed action on the City's vacant parcel at 5146 Eden Avenue and design and construction of a variety of public improvements using the incremental property taxes generated by the completed The Avidor project. Mr. Neuendorf summarized the goals and scope of public improvements and provided revenue projections that informed the recommendation to issue public debt to finance these improvements and noted we had to commit to funding by June of next year otherwise funding would be lost. Finance Director Uram stated staff worked with Ehlers and Associates to see what could be afforded through bonds and any potential concern with reduction of market value and debt service but that staff was fairly certain this would be unlikely and that coverage would be provided at 105% and that this proposal would make sense. The Board asked if The Avidor was reduced and rents fall did that lessen the value of building and therefore lessen cash flow. Mr. Uram said staff was confident funds could be paid from other sources and be reimbursed and noted this did not include any other projects other than The Avidor. The Board asked about the number of projects and how far did we have to go to risk reaching the end without making enough projects. Mr. Neuendorf said staff ran 10-12-year projections and determined a debt of $5 million could be repaid in 10 years but added the HRA would have to make a firm funding commitment and project scope and debt issuance but was not required to have all projects constructed. City Engineer Millner identified a slate of improvements that could be readily designed and constructed in 2021-2022 which were derived from the 2016 Transportation Plan and other redevelopment studies for the Grandview District and included planning, design, construction, acquisition and administration. He said if approved this would align well with project schedules and built next year then noted Hennepin County was replacing the bridge on Vernon Avenue and timing would be good. He spoke about the Interlachen intersection that would still allow improvements to occur and discussions about lane assignments and if Vernon would be within the project scope then spoke about staffs analysis about County road turnbacks that would likely cost the City more and still involve the decision to move from four to three lanes. Page 3 Minutes/HRA/June 11, 2020 Mr. Neuendorf shared in detail areas that would qualify within the boundary and stay within district. Mr. Millner said staff would obtain feedback from businesses regarding parking challenges and additional parking needs by Washburn-McReavy as well as the redevelopment project of the church on the southwest corner of the intersection that could include a roundabout and need to adjust the lift station. He said the TAC started meeting monthly and the engagement team would do work later in the summer with the hope to award a contract spring 2023. The Board reviewed the proposed projects and categorized the need for a plan to allocate future TIF dollars. Mr. Neuendorf spoke about the possibility of steps for the new public works site that could include office, medial office, and retail and direction needed pending the housing task force and said in order to spend future TIF dollars we would have to satisfy the five-year rule and issue a TIF note by this time next year. He noted this was TIF District #2 that could deliver goals and a third be created as a way to get additional improvements. Mr. Uram said staff made a conservative estimate based on The Avidor but would review and make assumptions about issuing debt based on those assumptions but said he was unsure the work to make those assumptions would be worth the effort to identify other projects. The Board commented about the element of risk typically not taken but after review of estimates it could be worth the effort as this was an incredible opportunity to ultimately fund the public works site then asked if anything was inconsistent with Maxfield or the housing group and their recommendations. Mr. Neuendorf stated a medical office would fit well on that site as a complimentary use. Mr. Neal believed it would be a bit of time before recommendations would be presented and stated it would be valuable to staff for the Board's opinion regarding this redevelopment project or do we want more of a process. The Board discussed the potential of an RPF and reengagement to refund money paid and the desire for a public element for this site in the future. Discussion was held regarding the potential of involving Frauenshuh Commercial Real Estate again and the need for a worksession to review this route. Mr. Neal agreed that reengagement with Frauenshuh would be the fastest process and the need for the Board to decide whether an RFP would be the best process. Board consensus was to include this discussion on a future worksession agenda. Motion made by Commissioner Anderson, seconded by Commissioner Fischer, to authorize staff to solicit engineering and design of public improvements in the Grandview 2 Tax Increment Financing (TIF) District. The Board confirmed whether decisions regarding the public works site should come before this approval. Mr. Neal confirmed this decision was not approving any contract but direction staff to begin conversations with engineering firms. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. ►X. CORRESPONDENCE AND PETITIONS IX.A. CORRESPONDENCE Chair Hovland acknowledged the Council's receipt of various correspondence. X. HRA COMMISSIONERS' COMMENTS — Received XI. EXECUTIVE DIRECTOR'S COMMENTS — Received X►1. ADJOURNMENT Page 4 Minutes/HRA/June 11, 2020 Motion made by Commissioner Brindle, seconded by Commissioner Fischer, to adjourn the meeting at 9: 10 a.m. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. Respectfully submitted, Scott Neal, Ex cutive D vector Page 5