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HomeMy WebLinkAbout1981-09-21 HRA Regular Meeting MINUTES OF HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA SEPTEMBER 21, 1981 7 :00 P.M. The Housing and Redevelopment Authority of Edina met in special session at 7:00 p.m. in the Edina City Council Chambers. Present were Members Bredesen, Schmidt, Turner and Courtney. MINUTES of August 31, 1981, were approved as submitted by motion of Member Turner, seconded by Member Bredesen. Ayes: Bredesen, Schmidt, Turner, Courtney Nays: None Motion carried. ACQUISITION AND SALE OF LAND FOR SENIOR CITIZEN RESIDENCE APPROVED. Mr. Hughes recalled that the proposed land acquisition had been before the H.R.A. several times during recent months and involves the construction of a senior citizen building to be located on a site West of York Avenue, North of Parklawn Avenue and North of 7500 Cooperative. The project, being proposed by Community Deve- lopment Corporation and Edina Community Lutheran Church, would provide 98 units with rent on 70 units subsidized by the Section 8 Rent Assistance Program, and the remaining units rented on a market rate basis. Mr. Hughes advised that during the past few months the H.R.A. has been attempting to secure property for this project as follows: Parcels A and B (owned by Hedberg and Sons) would be acquired from the Hedbergs and then Parcel B and Parcel C (owned by 7500 York Cooperative) would be exchanged between the H.R.A. and 7500 York Cooperative, resulting in a new development site with Parcels A and C combined to be pro- vided to the sponsor for this construction. Mr. Hughes reported that, regret- fully, they have been unable to reach agreement on the land sale, particularly the land exchange, partly due to the complexity of the project and the number of property owners involved. He indicated the primary problem revolves around the mining reservation, which would be retained by Hedberg and Sons, on Parcel B and the remedies available to the various parties in the event that there is a default, together with concerns relating to the grade to which the property would be reduced. Mr. Hughes stated, that Walter Baker, representing 7500 York Coopera- tive, and Board members were present. - In response to Mayor Courtney's question as to whether_ 7500 York Cooperative had reached accord on the purchase agreement, Mr. Baker replied that a letter of intent dated August 13, 1981, had been signed by the Board; however, the purchase agreement had not been acceptable to the Board with regard to the risk 7500 York Cooperative would have to assume in connection with the mining agreement in event of default. He added that the purchase agreement draft delivered to him on Friday, September 18, 1981, contained a different provision whereby the only remedy in the event of loss or damage would be through insurance carried by the Hedbergs, that the Board had voted and were not willing to accept that because they had not seen the insurance policy and felt it was not in the best interests of their people to assume that risk. Mr. Erickson clarified that the H.R.A. had never accepted the letter of intent, that negotiations to arrive at a satis- factory purchase agreement are now stalemated and that closing must be accomplished by September 30, 1981, in order for the project to proceed. Mayor Courtney commented that the H.R.A. understood the Board's position but that the purchase agreement drafted on Friday, September 18, 1981, was final from their standpoint and if not acceptable there was no point in continuing negotiations. Mr. Baker commented that the members of 7500 York Cooperative want the development but cannot accept the risk involved in the land trade. Mr. Hughes thereupon presented an alternative plan which would rely basically on the Hedberg property. Although a purchase agreement has not been signed, it is anticipated one would be forthcoming for Parcels A and B and the building originally proposed to straddle Parcels A and C would be relocated to the left totally on Parcel A. Parcel B would be retained by the H.R.A. or conveyed to Eden Place for open space to satisfy density requirements. The mining reser- vations presumably would remain essentially the same. Mr. Arvid Elness, architect for the project, presented graphics showing the relocation of the building and indicated that all requirements of the site will be met with the exception of a setback requirement to the outlot presently held by Ebenezer. He explained that an approximate 30-foot setback variance would be required, but that density would meet the zoning ordinance requirement. In response to Member Schmit's concern about Parcel B becoming buildable, Mr. Hughes stated that the H.R.A. could retain ownership, or if conveyed to Eden Place could place restrictions on it. Member Bredesen questioned which plan is preferable from a planning perspective and Mr. Hughes indicated the original plan would be preferable. He added, however, that the H.R.A. would save approximately $63,000 with the optional plan. Member Schmidt then offered the following resolution and moved its adoption: RESOLUTION OF HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA AUTHORIZING PURCHASE AGREEMENT BE IT RESOLVED, that the Edina Housing and Redevelopment Authority does hereby authorize the Purchase Agreement with Hedberg and Sons, Inc. for the following described property: The North 1/2 of the West 1/2 of the West 1/2 of the Northeast 1/4 of the Southwest 1/4 of Section 32, Township 28 North, Range 24 West, Edina, Hennepin County, Minnesota. 1. That the purchase price be $569,370.00 subject to the terms and conditions of the Purchase Agreement presented at this meeting and hereby ordered filed with these minutes. BE IT FURTHER RESOLVED, that the Chairman and Secretary of the Edina H.R.A. are hereby authorized and directed to enter into said Purchase Agreement. Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Bredesen, Schmidt, Turner, Courtney Nays: None Resolution adopted. Member Turner then offered the following resolution and moved its adoption: RESOLUTION OF HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA AUTHORIZING SALE AND DEVELOPMENT CONTRACT WITH EDEN PLACE, INC. BE IT RESOLVED, that the Housing and Redevelopment Authority of Edina, Minn- esota does hereby authorize the Sale and Development Contract and Deed of Conveyance between the H.R.A. and Eden Place, Inc. for the following described property: The North 1/2 of the West 1/2 of the West 1/2 of the Northeast 1/4 of the Southwest 1/4 of Section 32, Township 28 North, Range 24 West, Edina, Hennepin County, Minnesota. BE IT FURTHER RESOLVED, that the Chairman and Secretary of the H.R.A. are hereby authorized and directed to execute said Sale and Development Contract and Deed of Conveyance for Development. Motion for adoption of the resolution was seconded by Member Schmidt. Rollcall: Ayes: Bredesen, Schmidt, Turner, Courtney Nays: None Resolution adopted. Member Schmidt then offered the following resolution and moved its adoption: RESOLUTION OF HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF EDINA, MINNESOTA CONCERNING EDEN PLACE, INC. WHEREAS, Eden Place, Inc. is proposing to construct 98 units of elderly housing on land generally located West of York Avenue and North of Parklawn Avenue in Edina, Minnesota, and WHEREAS, the proposed location is designated for the development of 100 units of elderly housing by the South East Edina Redevelopment Plan. NOW, THEREFORE, BE IT RESOLVED, that the Housing and Redevelopment Authority of Edina, Minnesota ("H.R.A.") hereby finds, determines, and declares: 1. That the project is necessary to help alleviate a shortage of decent, safe and sanitary housing for elderly and handicapped persons of low and moderate income, and should be carried out as a housing development project under Minne- sota Statues, Section 462.415 to 462.711 (the "Act") . 2. That the following described property be conveyed to Eden Place, a Minnesota non-profit corporation, for the construction of the project: The North 1/2 of the West 1/2 of the West 1/2 of the Northeast 1/4 of the Southwest 1/4 of Section 32, Township 28 North, Range 24 West. (Now being platted as Eden Place Addition. ) 3. That the sale of the property to Eden Place, Inc. be pursuant to the Act and pursuant to the Sale and Development Contract and Deed of Conveyance of Land for Development presented to this meeting and hereby ordered filed with these minutes. 4.. That the Chairman or Vice-Chairman and Secretary or Assistant Secretary of the H.R.A. are hereby authorized and directed to execute and deliver said Agreement and Deed, and any and all other documents required to be executed and delivered by the H.R.A. in connection with the sale of said property, and to do all other things and take all other actions as said officers deem necessary or advisable to sell said property, to execute and carry out said Agreement and Deed and to fully carry out the intents and purposes of this resolution. Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Bredesen, Schmidt, Turner, Courtney Nays: None Resolution adopted. Member Schmidt then offered the following resolution and moved its adoption: RESOLUTION BE IT RESOLVED, by the Edina Housing and Redevelopment Authority that no further negotiations for the purchase of land for elderly housing, proposed by Eden Place, be held with the 7500 York Cooperative. Motion for adoption of the resolution was seconded by Member Turner. Rollcall: Ayes: Bredesen, Schmidt, Turner, Courtney Nays: None Resolution adopted. No further business appearing, Member Schmidt's motion for adjournment was seconded by Member Turner and carried. Adjournment at 7:35 p.m. Re7onrL.tful ly submitt t , Hughe Executive Director