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HomeMy WebLinkAbout1980-11-03 HRA Regular Meeting MINUTES OF JOINT MEETING EDINA CITY COUNCIL AND HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA NOVEMBER 3, 1980 The Housing and Redevelopment authority of Edina convened at 7:00 p.m. , and was adjourned until consideration by the Edina City Council at its meeting of Nov- ember 3, 1980, of the rezoning to PRD-3 of the Crossroads Development Corpora- tion property, generally located South of W. 70th Street and East of Cahill Road. Mr. Hughes recalled that, at the Council Meeting of April 7, 1980, Ordi- nance No. 811-A136 had been granted First Reading. He advised that required actions had been taken by the Board of Appeals and Adjustments for necessary vari- ances on July 17, 1980, by the Building Construction Board of Appeals for vari- ances on September 22, 1980, that the Community Development and Planning Commis- sion had, on September 3, 1980, recommended granting final rezoning approval and that Community Development Block Grant Bonus Funds had been awarded on Aug. 28, 1980. Mr. Hughes reviewed final plans submitted by Crossroads Development, point- ing out that two garage spaces have been provided for market rate units, one gar- age has been provided for all assisted units, with the exception that one-half garage space has been provided for handicapped units, and added that all garages are tuck-under units. He explained that there are 2.3 parking spaces per dwelling unit, including 40 surface spaces. Mr. Hughes reviewed unit sizes, explaining that the one bedroom units contain 676 square feet, the two bedroom units contain 1,073 square feet and the three bedroom units are approximately 1 ,200 square feet. Grading plans have been designed to retain much of the existing vegitation and a storm water retention pond has been included in the Southwest portion of the pro- ject which ties in with the ponding system to the South. Mr. Hughes advised that all units have stoves and refrigerators, carpeting, decks, and, except for the one bedroom units, all have 1z baths and garbage disposal units. He added that the market rate units also have dishwashers and central air conditioning. It was pointed out that some of the units have wood foundations. Mr. Hughes said that all funds are from the City will come from Community Development Block Grant funds and a total write-down of land of $366,000 has been requested by Crossroads Devel- opment. Reference was made to the analysis of Shenehon, Goodlund, Taylor, Fruen, Inc. , which was authorized by the Council, which analysis indicated that "the subject project is not viable without a total 'write down' of land acquisition costs by the City-of Edina. - - - that the available information is not final and will very likely be revised.". In .response to a question of Councilman Bredesen, Mr. Howard Shenehon said that, on the basis of information they have obtained, they have formed the opinion that the rate of return, even with 100% write-down, is so marginal and so low that they could not expect another developer to come in and pick up this project if Crossroads does not go thru with it. Mr. Mike P6tcher an associate of Mr. Shenehon, said that the anticipated 6% rate of return is only on the equity, and that the item that is particularly in question is not so much the development cost, but the income that might be produced. He added that recently there has been an appeal for a very slight increase in the rents that .might be collected, and advised that there is an opportunity for greater return on money invested for developers who are investing in market rate construction. It was emphasized that this project will have to be in rental status for the next 20 years. Mr. Steven Winnick, Chairman of the Lewis Park Neighborhood Associ- ation,' suggested that the City should investigate the rate of return (after taxes) that this project will bring to Mr. Hyatt and the other investors in this project. He said that the issue is not what the rate of return means to taxpayers who are investing in the project, but the over-all financial gain to the investors. He H.R.A. Minutes November 3, 1980 Page Two disagreed with Mr. Shenehon., stating that there are other developers who are available to go into projects like this, and that Mr. Hyatt and his associates will also be receiving additional fees for managing the project and for other efforts that they have made. In response to a question of Mr. Winnick, Mr. Hughes said that the Amundson Ave. strip will be acquired and paid for by private funds, but that the cost of Mr. Shenehon's report had been paid from City funds. Mr. Win- nick spoke of objections of neighbors, stating that they believe that the develop- the cost of lair. Shenehon's report had been paid from City funds. Mr. Winnick spoke of objections of the neighbors, stating that they believe that the develop- ment will have a serious and severe impact upon the health, safety and welfare of the citizens of Edina, and particularly of the people in the immediate vicinity of the project. He said that neighbors continue to stand firm in favor of mixed development, but do not believe that Mr. Hyatt is adhering to City standards, and that he is using shortcuts and unproven methods. He made special reference to the wooden footings, aluminum wiring and stated that the assisted units and market rate units should all have the same equipment and amenities, and pointed out that all of the low income units at Aspen Glen have dishwashers. He questioned the fact that the units for the handicapped do not have covered parking stalls or garbage disposals. Mr. Winnick also questioned how a handicapped person could cope with a tandem garage. He stated that Mr. Hyatt has not worked with the neigh- bors as lie had promised at the time the project was granted prelinary approval. Mrs. Donna Scudder, representing the League ofIWomen Voters and a member of the Housing Committee, urged that the project be approved, noting the need for "afford- able housing for Edina's elderly and for grown children". She said that the Hous- ing Committee has recommended a goal of 185 to 405 units of newly constructed assisted housing within the next ten years, and asked the Council to consider the . following questions in making its final decision: 1) Has there been ade(ivate opportunity for citizen input and involvement in the development process,? 2) Have citizens' concerns been responded to? 3) Wil.l this development tâ–ºelp achieve housing goals set by Edina? 4) Does this development fit into the over-all land use plan? 5) What affect will future delays have? Will Edina have future opportunities to find available and feasible sites, to find realistic and existing alternative assistance programs, or to put together an actual avail- able mortgage package so that housing goals can be met? Mr. Henry Hyatt of Cross- roads Development, showed a rendering indicating the appearance of the develop- went and said that these plane exactly correspond to the agreements that were made and transmitted to the City Manager by Mr. Erickson and Mr. Hughes on March 26, 1980. fie also explained that Mr. Findell has agreed to purchase the 30 foot easement strip from Mr. Everson at no additional cost to Edina and with no ad- justment to the purchase price. He said that they are building to standards of the State Building Code, and to F. H. A. minimum standards and that the Building Department has completely reviewed the plans. Mr. Hyatt clarified that the rate of return that he receives is entirely different from those who are investing in the project and compared the financing of the project with the financing of York- dale Town Homes. The project architect described the wood foundations proposed to be used and offered to show slides as to their use. Mr. Stuart Fraser of Northern States Power Company said that all of their cable for residential homes is aluminized, and that they only use copper for large cables. In response to a question of Commissioner Bredesen as to what would happen in a few years if the property begins to get run down, Mr. Hyatt said that he could not allow this to happen because he would then be on a federal black list and that as soon as he would have a default, he would be shut out of his professions of developing this H.R.A. Minutes November 3, 1980 Page Three type of housing. He added that the federal government protects this type of dev- elopment by making sure that adequate funds are set as ide to assure future replace- ment ment and that he will be required to put away over $12,000 per year in a replace- ment reserve that will be controlled by the federal government. The :Mayor pointed out that this project has been studied intensively and commended the atti- tude of the neighbors in their suggestions as well as the report of the Housing Committee. Commissioner Richards said that he believes that Mr. Hyatt is as good a developer of low and moderate income housing as anyone in the country, but that he does not believe that this particular project is best for the community in that it requires too many variances. He also expressed concern that it is not right to support subsidies for the market rate units which are included in the project. Commissioner Courtney referred to the mandates of the Metropolitan Council and said that, while Edina cannot possibly provide as many low and moderate income housing units as the Metropolitan Council recommends, he thinks that approval of this project will meet City standards and will provide housing for Edina young people who could not otherwise afford to live in Edina. Commis- sioner Courtney then moved approval of the Development Plan and rezoning the pro- perty to Planned Residential District PRD-3, subject to acquisition of the rezoned property by the H.R.A. and resale to the Developer, pursuant to the Sale and Development Contract and H.R.A. deed, and with the understanding that, upon rezoning, the previously adopted resolution vacating Amundson Ave. will become effective. He then offered Ordinance No. 811-A136 for Second Reading and moved its adoption. Motion for adoption of the ordinance was seconded by Commis- sioner Schmidt who remarked that she has always been in favor of the project since it will help the City meet its low and moderate income housing requirements. She added that she considers Mr. Shenehon's report to be unbiased and that the escrow account which is required of the developer in addition to the fact that 60% of the project is market rate units will assure that the property will not fall into disrepair. Rollcall: Ayes: Bredesen, Courtney, Richards, Schmidt, Van Valkenburg Nays: None Motion carried. Mr. Erickson then recommended adoption of resolutions by the City Council and the H.R.A. approving the development as a housing project and authorizing acquisition of the property by eminent domain, if necessary. Objection was made to the lan- guage in the preamble of the proposed resolutions. Commissioner Schmidt's motion was then seconded by Commissioner Bredesen, continuing the hearing of both the Council and the H.R.A. until November 17, 1980, to give the City Attorney an opportunity to prepare new resolutions which will more clearly reflect the desires of the Council and H.R.A. and to authorize action on the purchase and sale of the land in question. Ayes: Bredesen, Courtney, Richards, Schmidt, Van Valkenburg Nays : None Motion carried. The agenda for the joint H.R.A. and City Council Meeting having been covered, the joint H.R.A. and Council Meeting was adjourned. ;Respect ly busmi ed, ordon L. Hughes Executive Director