Loading...
HomeMy WebLinkAbout1988-05-02 HRA Regular Meeting MINUTES EDINA HOUSING AND REDEVELOPMENT AUTHORITY MAY 2, 1988 Answering rollcall were Commissioners, Richards, Smith, Turner and Courtney. OPTION AGREEMENT APPROVED FOR DE COURCY PROPERTY. Executive Director Gordon Hughes recalled that on March 7, 1988 the Edina Housing and Redevelopment Authority (HRA) authorized acquisition of the DeCourcy property in connection with its approval of the Hedberg Redevelopment Contract. An option agreement with the DeCourcys has been negotiated, the basic elements being: Purchase Price - $6/square foot, equating to a purchase price of $2,230,590; Option Period - The option would run through November 15, 1988; Option Fee - $10,000; Gravel Removal - DeCourcys may remove gravel from property prior to closing; Taxes and Assessments - HRA would assure responsibility for the second one-half taxes for 1988 and installments of special assessments, equating to approximately $35,000. Director Hughes advised that the proposed total purchase price is within the budgeted amount for this acquisition. Commissioner Richards asked who would be at risk for the $10,000 option fee and how this would fit into the agreements with United Properties. Director Hughes said that the HRA would be at risk for the option period. He explained that most of the DeCourcy land would be developed either for the south park area or for the housing portion of the property and therefore would remain in HRA ownership. The only portion that would be transferred to the private developer would be a small portion of the F-3 site on the Hedberg Development Plan. The rationale for the HRA taking the risk was that the HRA would end up owning approximately 90% of the parcel after development occurs. The terms of the option with Hedberg, after the closing would occur, is that the HRA has the right to trade with Hedberg this parcel for the northerly park area in the Hedberg project. Presumably, after the closing the Decourcy property would be exchanged for some of the Hedberg property with the exception of the portion that would be in the F-3 site. Commissioner Richards raised the issue of asking United Properties to put up the option money. Commissioner Smith asked about the taxes and special assessments after 1988. Director Hughes said that after 1988 the portion that would stay in private ownership would continue to be taxable and that the balance of the property would be public land and would be exempt. As any of the parcels that are owned by the HRA get turned back for development they then become taxable once again. He explained that the HRA is responsible for the second one-half taxes for 1988 only if there is a closing on the property. Attorney Erickson clarified that the HRA is hoping to close by October 15, 1988 in order to apply for abatement of taxes for 1989. If not, there will be taxes payable in 1989 but under the agreement with the redeveloper they will, in order to maintain their right to continue to buy parcels, pay everything the HRA owes under contract including real estate taxes. No further comment being heard, Commissioner Richards introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE EXECUTION OF OPTION AGREEMENT BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA"), as follows: 1. Recitals. The HRA and the Edina City Council have previously approved a redevelopment plan, as defined in Minnesota Statutes, Section 469.001, subdivision 16, designated as the Southeast Edina Redevelopment Plan (the "Original Plan") , and has approved various amendments to the Original Plan, including, but not limited to, an amendment designated as the 1987 Amendment to the Southeast Edina Redevelopment Plan (the "1987 Plan Amendment"), approved by a resolution adopted by the Board on June 15, 1987 (the Original Plan as so amended by the 1987 Plan Amendment and other amendments is hereinafter referred to as the "Plan") . 2. Property. Pursuant to resolution adopted by this Board on March 7, 1988, the acquisition of the following described property, which is included in the area subject to the Plan and is necessary to carry out the 1987 Project, as defined in the 1987 Plan Amendment was approved: That part of the East 1/2 of the Southwest Quarter of the Southwest Quarter, Section 32, Township 28, Range 24, lying West of a line drawn North parallel to the East line of the H.R.A. Minutes May 2, 1988 Page 2 Southwest Quarter of said Section 32 from a point on the south line thereof 1659.625 feet West of the Southeast corner of the Southwest Quarter of said Section 32, according to the government survey thereof. 3. Terms of Option Agreement. The Executive Director and Attorney for the HRA, pursuant to the March 7, 1988 resolution, have now agreed on the terms of an Option Agreement (the "Option Agreement") with the owners of the above-described property for acquisition thereof by the URA, which terms have been submitted to the HRA. 4. Authorization for Execution and Delivery of Option Agreement. The terms of said Option Agreement are hereby approved, subject to such modifications as are deemed appropriate and approved by the attorney for the HRA and the Executive Director of the HRA, which approval shall be conclusively evidenced by the execution of such Option Agreement by the Chairman and Secretary or Assistant Secretary of the HRA. The Chairman and Secretary or Assistant Secretary of the HRA. are directed to execute the Option Agreement as so modified. The Chairman and Secretary or Assistant Secretary of the HRA also are authorized and directed to execute such other instruments and agreements, and take such action, as may be required to accomplish the acquisition of the above-described property as contemplated by the Option Agreement. The execution of the Option Agreement, as amended, and such other instruments and agreements by the Chairman and Secretary or ,Assistant Secretary of the URA shall be conclusive evidence of the approval of such documents by the HRA in accordance with this Resolution. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Smith. Rollcall: Ayes: Richards, Smith, Turner, Courtney Resolution adopted. There being no further business on the HRA Agenda, the meeting was adjourned by motion of Commissioner Turner, seconded by Commissipner ichards. M ion carried. Executive D ector it I I