Loading...
HomeMy WebLinkAbout2020-11-12 HRA regular minutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 12, 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 Commissioners Anderson, Brindle, Fischer, Staunton, and Chair Hovland. Absent: None. 111. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Anderson, 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. VI. APPROVAL OF CONSENT AGENDA — AS PRESENTED VI.A. Draft Minutes of Regular Meeting September 24, 2020 Motion by Commissioner Fischer, seconded by Commissioner Brindle, approving the consent agenda as presented. Rollcall: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. PARTNERSHIP WITH METRO HRA TO EXPAND THE FAMILY AFFORDABLE HOUSING PROGRAM AND AUTHORIZE STAFF TO ENGAGE AN ATTORNEY TO DRAFT LEGAL AGREEMENTS — APPROVED Affordable Housing Manager Hawkinson said staff was seeking $2,000,000 from the Southdale 2 TIF "Regular Housing" pooled funds for the expansion of the Family Affordable Housing Program in Edina. The Metro HRA currently owned and managed eight properties in Edina acquired between 2001 and 2004 following the 1995 landmark Hollman consent decree that called for the deconcentration of affordable housing in Minneapolis. Their housing portfolio in Edina had not increased in 16-years despite the growing need for affordable housing and through continued partnership with the Edina HRA, the number of houses that served households needing larger rental opportunities could double. She shared how the Metro HRA had over 1,000 names on the waiting list and occupancy rates of 99% with little turnover then spoke on how VEAP served 190 Edina households in first quarter, the benefits of stable housing, and how this partnership could help meet a need. Page 1 Minutes/HRA/November 1212020 The Commission asked questions regarding the need for the agreement to be amended each time a home was purchased and commented about home pricing challenges and the goals for the number of bedrooms. They asked if staff was satisfied with the deadline and use of funds and would the HRA be conveying money or preserving as identified. Ms. Hawkinson explained while the funds did not have strict deadline they needed to be spent down at some point and how the funds would be earmarked but maintained in the HRA account. Terri Smith, Director of Metropolitan Council's HRA, shared their focus of identifying three - bedroom homes as it was difficult to find housing for families and outlined challenges going forward. The Commission thanked staff for the creative ways to identify affordable housing opportunities and said they were pleased TIF dollars could be used for this need with partners to assist and asked if funding use was contingent upon Metropolitan Council's program approval. Ms. Hawkinson responded staff would not proceed until approved by the Met Council but said they already indicated partnership support and would formally consider the item on December 16. Motion by Commissioner Staunton, seconded by Commissioner Brindle, approving the Partnership with Metro HRA to Expand the Family Affordable Housing Program and Authorize Staff to Engage an Attorney to Draft Legal Agreements. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VII.B. FIRST AMENDMENT TO LOAN DOCUMENTS FOR THE ACQUISITION OF 4040 W. 70TH STREET —APPROVED Ms. Hawkinson stated on February 13, 2020 the HRA approved and authorized the execution of the Loan Agreement, Mortgage and Note. The Edina Housing Foundation had negotiated a Development Agreement and Land Lease with a development partnership comprised of Lupe Development Partners and Ecumen for the development of a 100% affordable age restricted building. The land lease was designed to keep the property affordable for 99-years and as the Edina Housing Foundation would be a partner in the development through the land lease, rather than through a sale to the Developer, they were requesting the Loan Documents be modified to be forgiven once certain conditions were met. She outlined conditions for forgiveness that included the ground lease, reviewed budget implications of $3,650,000, then reviewed next steps with a potential closing in late 2022. Edina Housing Foundation Chair Huggett shared the goal was to create permanent affordability and how they were excited for the opportunity for a top project that would result in 120 units that would remain affordable for 99 years. He explained how the partnership and ground lease concept allowed for the maximum affordability term. Edina Housing Foundation Member Swenson commented about the analysis the Foundation conducted to achieve permanent affordability and the importance of listening to the HRA on how to make sites affordable for as long as possible and felt the partnership would be a good fit for senior housing as the need was great. The Commission thanked everyone for creating this opportunity for seniors who would have access to transportation in a safe neighborhood and remain vibrant members of the community and thanked the Housing Foundation for the concept. Motion by Commissioner Fischer, seconded by Commissioner Brindle, approving the First Amendment to Loan Documents for the Acquisition of 4040 W. 70t" Street with the Edina Housing Foundation in the amount of $3,650,000. Page 2 Minutes/HRA/September 10, 2020 Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. VII.C. CENTENNIAL LAKES FUND —UPDATED INVESTMENT STRATEGY— APPROVED Economic Development Manager Neuendorf shared the Centennial Lakes TIF Fund retained a balance and these dedicated funds could be used for specific purposes in accordance with applicable portions of MN Statute governing tax increment financing. Historically, the City had used these funds to support public projects that provided community and economic development benefits then presented a summary of upcoming projects and request for guidance on the future use of these remaining funds. He outlined the project area boundaries then reviewed the proposed guidelines for funding that would invest in capital projects rather than planning for them. He explained the guidelines would allow for added long-term value and benefit to the community for public improvements that would add jobs, strengthen tax base, add and retain businesses then outlined project prioritization that would be completed by 2028 and shared examples of projects such as public parking, traffic signal improvements, and pedestrian bridges. The Commission spoke about the TIF boundary map and how improved access to light rail would be outside the boundary map, prioritization of the pedestrian bridge, and projected amounts by 2028. Mr. Neuendorf shared project amounts by 2025 would be $2.3 million which would not be enough to upgrade the bridge. The Commission confirmed the Grandview District would be eligible for this funding and asked for an update on district parking negotiations and how this would be a good project for funding. They spoke about changes that could be made to enhance businesses and residential capacities then expressed concern about using funding for the bridge over Crosstown that could be accomplished through another funding source. They spoke about superblocks and developments over time to move traffic in areas with those internal roadways and Commission asked questions about reasons to consider interfund loans. Mr. Neuendorf outlined the strategy and reasons to support the Southdale II project in 2011 after the recession that allowed the HRA to borrow from ourselves and created the project with full payback. Motion by Commissioner Anderson, seconded by Commissioner Brindle, approving the updated investment strategy proposed for use of Centennial Lakes Fund Balance as proposed. Discussion was held on reasons for approval at this time and suggested including projects that would require Council approval. Executive Director Neal explained staff received questions regarding how these funds could be used and that general guidance from the HRA would be helpful for project parameters. Motion by Commissioner Staunton, seconded by Commissioner Fischer, to require projects be proposed to the HRA or Council for funding approval. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Amended motion carried. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Main motion carried. Vlll. CORRESPONDENCE — Received VIII.A. Correspondence Page 3 M|nutes/HRA/NovemmberU2,2020 IX. HRu —Received X EXECUTIVE DIRECTOR'S COMMENTS —Received X.A. REDEVELOPMENT OF S146 EDEN AVENUE Mr. Neal said this item pertained to the vacant 3.3-acre parcel owned by the HKA located at 5146 Eden Avenue and that staff recommended astrategy tm redevelop and return the site to productive use be completed in 2021, This vacant property had been the subject of several redevelopment discussions in the past 12 years which did not yield a redevelopment strategy. This 3.3-acre site had monetary value and in its current tax-exempt and vacant state, it was not contributing to Ed|nm`s property tax base nor was itdelivering any ofthe community goals identified |nthe 20|2Grandview Framework Plan. He said after 12 years of considering a variety of different optionn, staff recommended the Edina HRAconsider selling orleasing mtleast aportion Vfthe site sothat itcan put to productive use and recommended the redevelopment of this site be actively pursued in 202 1. Mr. Neal outlined a recommended redevelopment strategy, shared potential development partners, then spoke about a competitive Request for Proposal (RFP) process to formally select a partner. Mr. Neuendorfshared staffs proposal for reuse and redevelopment of5|46 Eden Avenue and explained the fire department was studying the site for the possibility of future Station 3 and how Frauenmhuh Company was interested in a partnership aawell as others then outlined the proposed RFP process and timetable for Commission consideration and the need for a plan. The Commission inquired about including the option to sell the site and use the proceeds tofund a new public works site then shared about realistic expectations with development partners and concerns aoopen RFPcould inhibit other plans and result |n:domino effect and the need to be fair to our partners, Mr. Meumndmrfresponded how along-term land lease or retaining a portion of the site could bedone for afuture fire station but said staff had exhausted options for retaining the full site for public use. The Commission discussed history of this site and potential for senior coop with United Properties as a partner that would expand the medical use and the ability to review the concept with Frauennhuhfor this site and not waiting until 2O22 for aproject. They said they already had onidea ofwhat the site could be used for that would provide affordable housing for seniors and said decisions could be made while the current Commission was in place based on their knowledge of history ofthe site. Discussion was held on the desire for a community center and reasons why it would not work but kovv this site would be good for public use and should move forward as presented. TheCommissiondiscussed the need toexplore other ideas and to include incoming Commissioners and their support of a pedestrian crossing by the railroad tracks then shared concerns with FrauenahuhCompany and the need toexplore ideas from other developers. Consensus was to hold vvorkmesson with developers in Docember. Vill. ADJOURNMENT Motion made by Commissioner Fischer, seconded by Commissioner Brindle, to adjourn the meeting at 9:18a.mn. Roll call: Ayes: Anderson, Brindle, Fischer, Staunton, and Hovland Motion carried. Respectfully submitted,