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HomeMy WebLinkAbout1981-12-21 HRA Regular Meeting MINUTES OF SPECIAL MEETING OF HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA DECEMBER 21, 1981 The Housing and Redevelopment Authority of Edina met at 7:00 p.m. in the Edina City Council Chambers . Present were Members Bredesen, Richards, Schmidt, Turner and Courtney. MINUTES of December 7, 1981, were approved as submitted by motion of Member Schmidt, seconded by Member Turner. Ayes: Bredesen, Richards, Schmidt, Turner, Courtney Nays : None Motion carried. SOUTHEAST EDINA PLAN AMENDMENT ADOPTED. Affidavits of Notice were presented by Clerk, approved as to form and ordered placed on file. Mr. Hughes pre- sented an amendment to the Southeast Edina Redevelopment Plan changing the designation of the plan area lying West of York Avenue and South of W. 76th Street to "Mixed Use". No objections being heard, Member Richards offered the following resolution and moved its adoption: RESOLUTION BE IT RESOLVED by the Housing and Redevelopment Authority of Edina that the Southeast Edina Redevelopment Plan - Land Use Plan is hereby amended in accord- ance with "Amendment to Southeast Edina Redevelopment Plan", a copy of which is attached hereto and made a part of these Minutes. Motion for adoption of the resolution was seconded by Member Bredesen. Rollcall: Ayes: Bredesen, Richards, Schmidt, Turner, Courtney Nays: None Resolution adopted. SENIOR CITIZEN HOUSING STATUS DISCUSSED (COMMUNITY DEVELOPMENT CORPORATION) ; CONTINUED TO JANUARY 4, 1982, Mr. Hughes recalled that a 98 unit senior citi- zen residence sponsored by the Edina Community Lutheran Church and located West of York Ave. and South of Parklawn Ave. extended had been approved by the Council, with the original goal to close the project by September 30, 1981, HUD's fiscal year end. Because the September goal was not achieved and interest rates increased from 9.25% to 11.75% (as well as other factors) a shortfall of over $500,000 exists, even if a total land write down is assumed by the H.R.A. _ Mr. Hughes advised that through a combined use of tax increment financing and Community Development Block Grants, an additional $305,000 could be contributed to the project by the H.R.A. , and that assuming a total land write down, the participation by the H.R.A. could total $838,546.00. Mr. Hughes said that he had met with Mr. Hedberg and negotiated a three month extension of the purchase agreement, with a payment of $2,500 in earnest money at this time. Mr. Hughes recommended and requested authorization to extend the purchase agreement with Hedberg & Sons until April 1, 1982, with the understanding that, if the closing does not occur, the $2,500 earnest money payment is recoverable from Community Development Block Grants. Ms. Dianne Nelson, of Community Development Corpora- tion, noted that one of the rules now imposed is a requirement of smaller size units which would still meet Edina's regulations. The H.R.A. was advised that it would probably not break even on this project, but would break even over the entire tax increment district. Member Bredesen said that he believed that there are too many uncertainties and that economics are stacked against making any commitments. He said that it is premature for the staff to spend more time on the project until more answers are available. In response to questions of the Council, Ms. Nelson said that the project probably could not be moved, since it had already been moved once. She added that if the project was not subsi- dized as a 202, $800 monthly rent would be required. No further discussion being heard, Member Bredesen's motion was seconded by Member Schmidt, continuing the matter to January 4, 1982, so that more information would be available for the Authority. Ayes: ' Bredesen, Richards, Schmidt, Turner, Courtney Nays: None Motion carried. No further business appearing, the meeting was declared adjourned at 7:20 p.m. Respec ly submitted,,, ` L. Hughes ' Executive Director AMENDMENT TO SOUTHEAST EDINA REDEVELOPMENT PLAN Southeast Edina Redevelopment Plan - Land Use Plan The Southeast Edina Redevelopment Plan - Land Use Plan designates that portion of the plan area lying west of York Avenue and south of West 76th Street as "Proposed Transitional Development". The Land Use Plan is hereby amended to change the designation of this area to "Mixed Use" . Mixed Use is defined as the joint and integrated development of residential and non-residential land uses on a single tract of land. Within the South- east Edina Redevelopment Plan area, Mixed Use developments would have the followin g objectives: 1) To encourage the provision of residences affordable to low and moderate income families and individuals. Special attention should be given to home ownership opportunities for such families and individuals. 2) To encourage the mixing of residences affordable to low and moderate income persons with market rate residences in order to promote maximum social and economic interspersion. 3) To provide business and professional office uses in close proximity to residential uses in order to encourage employment opportunities for residents of the Mixed Use development and thereby reduce the need for job related commuting which contributes to traffic congestion in southeast Edina. 4) To enoucrage the provision of retail facilities for the use by residents and employees of the Mixed Use development and the surrounding area in order to reduce inter-area and intra-area travel for shopping purposes. 5) To provide for public park and open space facilities for the use by the general public and residents and employees of the Mixed Use development. 6) To encourage the provision of mass transit opportunities for residents and employees of the Mixed Use development. The portion of the Southeast Edina Redevelopment Plan area lying west of York Avenue and south of West 76th Street measures about 25 acres in area. A Mixed lJse development in this area is anticipated to include the following basic components: 1) Approximately 600 apartment units. Such units will be offered for sale i as condominiums. It is anticipated that at least one half of these units will be offered to low and moderate income families and individuals. 2) Approximately 500, 000 square feet of office and retail floor area. 3) A public park offering a variety of recreational and cultural activities for the general public as well as residents and employees of the Mixed Use development. 4) Parking facilities for use by members of the general public utilizing the public park facilities and other facilities provided by the Mixed Use development. Amendment to the SE Edina Redevelopment Plan Page 2 The Southeast Edina Redevelopment Plan - Land Use Plan designates that portion of the plan area lying east of York Avenue and south of West 76th Street as "Proposed Subsidized Family Housing". The Land Use Plan is hereby amended to change the designation of this area to "Office Uses" . Southeast Edina Redevelopment Plan - Property Disposition Policy Plan The Southeast Edina Redevelopment Plan - Property Disposition Policy is hereby amended to include a disposition plan for that area designated as Mixed Use development in the Southeast Edina Redevelopment Plan - Land Use Plan. This disposition plan will provide for a land lease from the H.R.A. to the developer of a Mixed Use development. It is anticipated that such a land lease will among other provisions: 1) Cover the footprint of residential buildings, with possibly additional land around the adjoining the buildings. 2) Be a net, net lease; i.e. the developer will pay all taxes, assessments, insurance, and other related land costs. 3) Obligate the developer to create a condominium and sell not less than half of the residential units to low and moderate income persons as defined by the H.R.A. 4) Provide, in cooperation with a non-profit corporation, a method to try and assure the future sale and re-sale of residential units to low and moderate income persons. 5) Possibly allow the condominium owners to purchase the leased land at a future date. If the right of purchase is not exercised, all improvements on the leased land will become the property of the H .R.A. 6) Require rent, which could be nominal, for the leased land, and may include a proportionate share of the cost of maintaining public parks and other public facilities.