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HomeMy WebLinkAbout1974-05-23 HRA Special Meeting SPECIAL MEETING AGENDA DA Housing and Redevelopment Authority of Edina, Minnesota Thursday, May 23, 1974, at 7:30 P.M. Edina City Hall 1. Roll Call. 2. Approval of the Minutes of the Previous Meeting, Held Tuesday, May 7, 1974. 3. Recommendations and Reports. A. Summary of Goals Statements as presented May 7, 1974. B. Resolution Determining Need to Study 50th and France Area. C. Flow Chart of Activities for 50th and France Project. D. Recommendation for Citizen's Advisory Commission. 4. Adjournment. MINUTES OF THE REGULAR 14EETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA HELD TUESDAY, MAY 7,1974, AT 7:30 P.M. EDINA CITY HALL 1. Roll Call: Mr. Charles W. Freeburg, Chairman Mr. Gary B. Lyall Mr. William F. Greer Mr. James W. Nelson Mr. Lawrence W. Rixe Staff Present: Mr. Greg Luce, Executive Director Mr. Thomas S. Erickson, City Attorney Ms. Lynnae Nye, Secretary 2. Approval of the Minutes of the Previous fleeting, Held Tuesday, April 16, 1974. Mr. Rixe moved the minutes of the Housing and Redevelopment Authority meeting held April 16, 1974, be approved as written. fir. Nelson seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, Mr. Nelson, Mr. Freeburg, Mr. Rixe Nays: None. Motion carried. 3. Hearings Upon Individual Request. A. Presentations of Goals and Objectives. Mr.. Luce recalled the associations represented were invited to present their goals and objectives so that the Authority can be aware of those desires in undertaking any project in the 50th and France area. 1. Edina Chamber of Commerce. Mr. Freeburg noted a report prepared by a Greater Edina Chamber of Commerce study committee (attached) is on file and is available upon request. 2. 50th and France Business and Professional Association. Mr. Robert Sykes, 3924 West 50th Street, chairman of the 50th and France Redevelopment Program for the 50th and France Businessmen's Association, stated there has been a serious traffic and parking, problem for a number of _years, and there is also a problem with beautification in that those people who wish to improve their properties cannot do so because of the current code requirements for parking, green areas, etc. The parking ramp built several years ago is already filled to capacity and more parking space, perhaps with additional ramp levels, is urgently needed. fir. Sykes explained that because, every time they attempt to solve a specific problem, another problem is created, thev decided the situation needs the attention of experts to do the planning; they hope the city and H.R.A. can recommend a group that could accomplish this so they would be able to undertake this program, and also hope that the City of Minneapolis will be interested in continuing it on the Minneapolis side of France Avenue. He added that "although they had hopes of redeveloping the north side of 50th Street, there has been a problem with getting enough people to support a program in the past because many of the landowners don't even live in Minnesota. We now have that support and are anxiously awaiting help from the Housing and Redevelopment Authority to help solve these problems". fir. Svkes recalled 3,700 signatures were obtained on a petition circulated 5-7-74 H.R.A. Minutes Page. 2 in the area which called for improved parking and traffic facilities and an improved beautification program. Mr. Lyall requested a copy of the petition and a tabulation of the results. 3. Wooddale Neighborhood Council. 4. White Oaks Neighborhood Associations. Mr. George Adamovich, 4610 Bruce Avenue South, chairman of the Wooddale Neighborhood Council, stated the attitudes of the Wooddale Neighborhood Council and White Oaks additions are being presented in common. He stated they see the 50th and France area as a neighborhood shopping area and not a large Southdale-type center; they are uniformly opposed to any encroachment on residential properties and urge the Housing and Redevelopment Authority to confine its redevelopment activities within the confines of the existing commercial area. In addition, the general increase of traffic or any- thing that would contribute to increased traffic would be of great concern (i.e. widening of 50th Street), and,"although we understand there has been a concept for redevelopment of 50th and France but no special plan is vet on the boards for the Authority's consid- eration, we would ask that you involve the immediate neighborhood in this project; by that we mean an active .involvement which is throughout the process and not a passive involvement that reacts to the final product". Mr. Adamovich stated the Wooddale Neighborhood Council has organized a study committee for this area of concern; Tom O'Connell (4515 Moorland Avenue) is the chairman and Dick Wiltz (4400 West 50th Street) is the vice-chairman. I Mr. O'Connell presented and read "All OPEN LETTER TO THE EDINA HOUSING AND f REDEVELOPMENT AUTHORITY" (attached), "a general statement at this time which defines the areas that we wish not to be encroached upon". Mr. Waltz outlined three areas of concern: first, "we e would be concerned that the financial aspects, long- and short-term, of tax increment financing be studied and studied objectively"; second, "we are concerned that the H.R.A. is an administratively appointed type of committee and not one that is the result of public demand, therefore, as an administrative group, it can run the risk of being staff run"; and third, "your charge is not to redevelop anything, your charge is to look to see if there is any place in the city that deserves and needs redevelopment ... your charge could be adequately fulfilled by concluding there is nothing to do". He volunteered the expertise of knowledgeable people and resources within their community and felt it would not be- necessary to hire outside consultants. Mr. Wiltz urged that the H.R.A. members not only depend on their professional staff but take an active and participative interest. Mr. Calvin Katter, 3949 West 49th Street, suggested the post office be relocated. Mr. Freeburg responded his comments have been noted and will be taken into consideration in the Authority's study. In reply to Mr. Rixe, Mr. Adamovich summarized that the community can see some redevelopment and, while improvement of traffic and beautification would not meet with a great deal of neighborhood hostility, encroachment on the residential community would because it sets a precedent for other kinds of encroachment. tie concluded they "hope the H.R.A. will at every step of the way make certain the community is actively notified, that organizations are not only invited but are encouraged to he a part of the planning process; in that way the interests of the Authority, the community, and the businessmen will be best served". I 5-7-74 H.R.A. Minutes Page 3 Lengthy discussion followed. In reply to Mr. Lyall, Mr. Wiltz elaborated that their resources and areas of expertise would include: research, specifically geographic research; finance, particularly in the banking and real estate finance areas; and planning, specifically in community development, city planning and landscape architecture. He stated these people would make themselves available at great time and no cost. Mr. Luce described a Citizens Advisory Commission (CAC) and suggested that, since the Wooddale Neighborhood Council is an established neighborhood association which includes most of the affected area, it could, perhaps, be designated as the CAC if it is representative of all of the surrounding neighborhoods. Mr. Luce indicated he would prepare a recommendation determining whether or not a CAC should be established and, if so, who might be designated. In addition, he would categorize the goals and objectives presented to determine which are planning type goals, capital improvement type goals, etc. , and would prepare a "flow chart to see how long the planning process will take, to allow the neighborhood associations to see at which stages public hearings should be held and where they want considerable participation, and so the CAC and neighborhood can fully understand the timetable bind we are in if we choose to go the tax increment financing method". These items will be placed on the next H.R.A. agenda for consideration. 4. Communications. A. By-laws Amendment. Fir. Rixe moved the by-laws amendment providing for an assistant secretary and identifying the duties of the assistant secretary be approved as presented. Mr. Greer seconded the motion, and upon roll call the following voted: Ayes: Fir. Lyall, Mr. Greer, Mr. Nelson, Mr. Freeburg, Mr. Rixe. Nays: None. Motion carried. B. Election of Assistant Secretarv. Mr. James Nelson was nominated for the position of Assistant Secretary by Fir. Rixe. Mr. Lvall seconded the nomination, and upon roll call the following voted: Aves: Mr. Lyall, For. Greer, Fir. Freeburg, Fir_. Rixe. Nays: None. Mr. Nelson abstained. Motion carried. C. Determination of Fiscal Year. Following brief discussion, Mr. Lyall moved that the Housing and Redevelopment Authority's fiscal gear be the calendar year. Fir. Nelson seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Fir. Greer, Mr. Nelson, Mr. Freeburg, Mr. Rixe. Nays: None. Motion carried. D. Resolution of Borrowing Agreement with Citv of Edina. Fir. Luce noted the Council approved the H.R.A. budget request and the Services Agreement. 5-7-74 H.R.A. Minutes Page 4 In reply to Mr. Rixe, Mr. Erickson clarified that to the extent the expenses of the Authority can be allocated to a project and included as a public redevelopment cost within the statutes, that would be considered a loan from the city and repaid to it when funds are received from a project; to the extent, however, that in any portion of this or any budget, any funds are not allocable to a project but are strictly administrative costs, those funds would be considered a loan because the H.R.A. has no way to recover them out of the public redevelopment cost method. Mr. Rixe reiterated his concern is that the H.R.A. , if it is another administrative function that works as an adjunct of the city council, would cause duplication of costs and create an additional tax burden. After additional discussion, Mr. Luce presented the proposed resolution of borrowing agreement between the H.R.A. and the City of Edina. Mr. Erickson clarified this resolution provides that the H.R.A. repay borrowed money from funds received out of projects; if no funds are undertaken, then no obligation will be enforced. Mr. Lyall moved the resolution of borrowing agreement with the City of Edina be adopted as presented. Mr. Nelson seconded the motion and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Nelson, Mr. Freeburg, Mr. Rixe, Mr. Greer Nays: None. Motion carried. E. Establishment of Bank Account. After brief discussion, Mr. Greer moved the resolution establishing a bank account at the lst Edina National Bank be adopted as presented. Mr. Lvall seconded the motion, and upon roll call the following voted: ' Ayes: Mr. Lyall, Mr. nelson, Mr. Freeburg, Mr. Rixe, and Mr. Greer Nays: None Motion carried. 5. Recommendations and Reports. A. Issue Invitations to Consultants. Mr. Luce informed the H.R.A. that, in order to save time and because of the way he views the program and the deadlines he perceives, he will be assembling a background file on consultants qualified to do the planning work in the year ahead, presumably for a 50th and France redevelopment project. Discussion followed. Several people expressed concern that any invitations or discussion with consultants at this time would be premature. The possibility of a future 50th and France redevelopment project and the tax increment finance method were discussed. Mr. Luce agreed to prepare a resolution determining a need to study the 50th and France area for discussion at the next meeting. Mr. Erickson stated that to obtain a list of qualified consultants is not an action the H.R.A. has to authorize, as the Executive Director can establish a file so that it will be available for the H.R.A. to study when this type of information is needed. Mr. Luce clarified he is concerned with the time limitations involved and plans only to establish a file of background information on consultants with expertise in the redevelop- ment planning area who, hopefully, have done other tax increment projects. no direct invitations to consultants will be issued at this t1me. Mr. Rive felt the H.R.A. should �. PROPOSED FOR14 OF RESOLUTION AUTHORIZING ACCEPTANCE OF CONTRIBUTIONS AND LOANS BY THE CITY OF EDINA AND EXECUTION OF LOAN AGREEMENT WITH CITY OF EDINA For Adoption by Commissioners of the Edina Housing and Rehabilitation Authority RESOLVED, That this Authority obtain funding of its 1974 budget for its redevelopment projects from the City of Edina by means of contri- butions from and loans by the City of Edina to this Authority; that all funds not properly allocable by this Authority to a redevelopment project and included its public redevelopment costs shall be accepted as a contribution by the City of Edina, and all funds which are so allocable and included within this Authority's public redevelopment costs shall be accepted as a loan by the City of Edina; that the Chairman and Secretary of the Authority are hereby authorized and directed to enter into a loan agreement with the City of Edina providing for the borrowing by the Authority from the City of all sums received by the Authority from the City during the calendar year 1974, and which are properly allocable to redevelopment projects and included within the public redevelopment cost of the Authority; said agreement to further provide that all funds which are so allocable and included shall bear interest at the rate charged by Edina for interest on special assessments levied by Edina as of the date said moneys are disbursed to the Authority; that the funds borrowed, with interest, shall be repaid to Edina out of the funds received by the Authority from its redevelopment projects; and that none of the moneys so borrowed shall be used in public housing projects as defined in the Minnesota Housing and Redevelopment Act; and which loan Cagreement shall contain such other and additional terms and conditions, not inconsistent with or contrary to this resolution or to applicable statutes and ordinances, as the Chairman and Secretary shall deem necessary or desirable. 1 PROPOSED FORM OF RESOLUTION For Adoption by Commissioners of Edina Housing and Redevelopment Authority BE IT RESOLVED, that this Authority establish an account for the deposit of its funds with the First Edina National Bank; that checks drawn on the account must be signed by the Director or Executive Director and the Chairman or Vice-Chairman of the Authority; that the Secretary is hereby authorized to prepare and certify, in the form attached as Exhibit A to the minutes of this meeting, the standard form of resolutions required by such bank to evidence the authority conferred by these resolutions, l which resolutions are hereby incorporated and adopted by reference. j 5-7-74 II.R.A. Minutes Page 5 take advantage of the offer of expertise from within the Wooddale Neighborhood Council. B. Report on City Fidelity Bond. Mr. Luce reported that all city staff members are covered up to $50,000 under the citv's fidelit;r bond. C. 1974 Budget Report. D. Services Agreement with City of Edina. Mr. Luce reported that the 1974 H.R.A. budget and the Services Agreement with the City of Edina were approved by the City Council at their flay 6th meeting. E. Tax increment financing and the time limitations involved were further discussed. Mr. Luce suggested a special H.R.A. meeting be held in approximately two weeks (the date to be confirmed by the Executive Director) to conduct the regular business discussed, and that knowledgeable opinions, both pro and con tax increment finance, would be solicited in the meantime for presentation at the next regular meeting (Tuesday, June 4, 1974, at 7:30 P.M.). All generally agreed. Mr. Freeburg noted that all H.R.A. meetings are open to the public. Mr. Lyall emphasized that the H.R.A. is talking about a study project to see if there should be a plan, and, if so, what that plan should be. 6. Adjournment. No further discussion being heard, Mr. Rixe moved the meeting be adjourned. fir. Lvall seconded the motion and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, Mr. Nelson, Mr. Freeburg, Mr. Rixe Nays: None. Motion Carried. Meeting Adjourned. Respectfully submitted, AX�� yz e�— Greg Luce, Executive Director LN Board of Directors Greater Edina Chamber of Commerce Gentlemen: The undersigned, whom you have appointed as a committee to study the feasibility of creating a Housing and Redevelopment Authority for the Village of Edina . respectfully submits its report. This report is not exhaustive in its study of the factors involved; that would require more time and expertise than any of the undersigned possess. Hopefully , the report will , however, present you with a broad overview of some of the problems and areas involved. SCOPE OF REPORT. In determining whether, in the committee's opinion, creation of a Housing and Redevelopment Authority (hereafter referred to as "HRA") for the Village of Edina should be supported by the Greater Edina Chamber of Commerce , the committee is specifically not approving directly or inferentially any plan that may be in the process of submission for the redevelopment and up- grading of the 50th and France area or any other specific area in the Village. The basis of our inquiry has been that, assuming there is no plan for redevelopment anywhere in the Village at this time, would creation of a Housing and Redevelopment Authority be advisable on general principles? PURPOSE OF AN HRA. Minnesota statutory law authorizes municipalities to create an HRA under Laws 1947 , Chapter 487 , and commonly cited as the "Municipal Housing and Redevelopment Act" (M.S.A. 462.411 et seq .) . To the layman, the connotation is that the Act applies only to public housing for low-income groups, but this is erroneous. The scope is much Larger. In fact, the statutory statement of purpose recites that the Act is -to make possible the "clearance, replanning, reconstruction and neighborhood rehabilitation" of certain urban and rural areas where sub-standard, unsafe and unsanitary conditions exist in buildings and structures "used or intended to be used for living, co- :ercial , industrial , or other purposes, or any combination of such uses, which by reason of sociological and technological changes, dilapidation, obsolescence, overcrowding and faulty arrangement or design of building and improvements, lack of public facilities, ventilation, light and sanitary facilities, excessive land coverage or deleterious land use , or obsolete Layout, or any combination of these and other factors are injurious to the health, safety, morals and welfare of the citizens of this state, cause an increase and spread of crime, juvenile delinquency, and disease, inflict blight upon the economic value of large areas, and, LZ impairing the value of private investments, threaten the source of up blic revenues while decentralizing communities to areas improperly planned and not related to public facilities, and require many persons of low- income to occupy unsafe, unsanitary, and overcrowded dwellings." (Underlining supplied.) Such Housing and Redevelopment Authorities have been used in the past for updating and revitalizing of commercial areas in other municipalities in the area where ownership is so widely spread that concerted private action is difficult (examples are Minneapolis and Hopkins in the immediate area) . St. Louis Park is using its HRA to redevelop some industrial land, the so-called "Creosote property." Robbinsdale is in the process of formulating a project for redevelopment of a large area of its commercial district under an HRA. BASIS FOR NEED. The underlying need for an HRA is based on the fact that the charters of most Minnesota municipalities do not confer power to take the action that is necessary to reverse long-term trends of obsolescence and deleterious Land use in specific areas of the municipality. For instance, a municipality might be able to condemn property for use as a street or other public use, but without the creation of an HRA would lack the power to condemn private property as part of a redevelopment program. An HRA would also enable a municipality to restore or acquire properties of historic or architectural value. -2- GENERAL NATURE AND £UNCTION OF AN HRA. Organization. If the creation of the Authority is approved by the village Council , a five-man commission will be appointed which will serve for rotating terms of five years each. No public officer or employee is eligible to serve as a commissioner, and the commissioners serve without pay except they may receive $25 .00 per meeting, not to exceed $1 ,500.00 per year. Any redevelopment project proposed by the Authority must receive the approval of the municipality's governing authority, which in Edina would require hearing before the Planning Commission and hearing and approval by the Village Council. Cost. An Edina HRA would be authorized to levy up to a 1.1 mill tax. However, in practice, a1L administrative, planning and engineering costs are assi, to the specific projects and borne by whatever financing method is used. Therefore., the only tax levy needed would be to defray those initial planning costs assigned to projects which were not approved. Currently, a one-mill levy would produce $312 ,000.00 . Assuming the HRA staff would use reasonably good judo en- as to the merit of the proposed projects it submitted to the Council, it seems very unlikely that anything more than a small fraction of the authorized levy would ever need to be imposed. It is even likely that in case of small projects involving rehabilita- tion or removal of individual structures, that the specific project would be self- financing. Therefore, the tax burden on the City as a whole seems to be either non-existent or nominal. SURROUNDING COM✓iUNITIES. Edina is bound by Bloomington, Richfield, Minneapolis, St. Louis Park, Hopkins, Eden Prairie, and Minnetonka . All of these municipalities except Eden Prairie and Richfield have created Housing and Redevelop. ment Authorities. Therefore, these municipalities would have power, through the respective local Authority . to undertake revitalization of specific areas. Edina does not have that power. To the extent that revitalization of areas which Edina may share with :its neighbors becomes necessary in the future, Edina , having no HRA 3 might experience a Lack of comparable flexibility in being able to work with its neighboring municipalities_ Edina shares France Avenue with Minneapolis. Along this strip are two aging commercial areas, namely, 44th and France and SOth and France, plus a "filling station corner" at 54th and France. In the first two named areas, the majority of the buildings are over 2S years of age, and a substantial number of them are 40 years and older. The France Avenue strip also includes some aging housing, especially along the North end of that strip. On the other hand, Edina shares one of the most active and valuable business areas in the State with Bloomington at the intersection of Highways 494 and 100. It also shares a smaller service and commercial district with Richfield at 66th and Xerxes. The latter two are, of course, new areas and still under development_ Industrial areas are shared with Minnetonka and Eden Prairie, and Hopkins has an industrial area abutting an Edina residential neighborhood. SUB-STANDARD HOUSING. Dilapidated Housing. The first impression of your committee was that an HRA could have no application in Edina to the eradication of sub-standard housing because none existed in the Village. Basically, this premise is correct. There is no sub-standard housing of which your committee is personally aware, but it did visually observe a very few structures which are even now dilapidated and detrimental to the value of the surrounding real estate. More important, there are a considerabl Larger number of houses which, from external observation, indicate that in a few years will further deteriorate so as to also unfavorably affect surrounding private investments of real estate. These houses comprise only a limited sector of Edina housing, but they do exist. Your committee's conclusion in this respect appears to be supported by the 1970 census reports, which show 19 owner-occupied dwellings with market value of less than $10 ,000 and 141 owner-occupied residences with market values under $15 ,000 . The report also shows 61 units without complete plumbing facilities, that is, hot running water , flush toilet, and tub or shower_ While it is not fair to conclude that lower-priced dwellings of this nature or even houses which appear dilapidated are necessarily sub-standard, it does appear to be an indication that there is a significant number of housing units that may become "rundown" or dilapidated in the future and have a depressing effect on surrounding property values. In addition, the Edina officials have reported that in the last five years, two or three residences have been condemned as being unfit for habitatioi Age of Housing. Your committee did not think it sufficiently helpful to spend the time and effort to classify and collate the age of Edina homes_ Our visual examination reveals that there are clusters of aging homes in both the Northwest corner and the Northeast corner of Edina. Some of these are small, some are large, and most of them appear to be well maintained. However, thereis no reason to believe that in future years houses and neighborhoods of this age will not begin to experience problems akin to those being experienced by Minneapolis. In other words, while no part of Edina appeared to be comparable to the Minneapolis areas such as Lake Street, Broadway or even Kenwood, neither does there appear to be anything inherent in the Edina community that would prevent these Latter types of areas from developing in Edina if nothing were done to combat the inevitable changes in housing patterns and land use caused by the passage of time. Abandoned Housing. Although the problem of abandoned housing does not yet appear to be a great problem in the Minneapolis area , and certainly not a problem in Edina , it is a problem in other parts of the country. It is likely that the years to come will inevitably bring this problem to Edina. The city planner for Robbinsdale reports that that city has used its Housing and Redevelopment Authority as a vehicle for acquiring about 40 structures, perhaps not abandoned but not functionally suitable for human habitation. Without such a vehicle, the municipalit must wait until the structure deteriorates to the extent that it can be condemned as being unfit for occupancy. -S- DECLINING FAIMILY SIZE. In figures made available through the cooperation of the Edina School Administration, kindergarten through 6th-grade enrollment in Edina has declined from 5 ,521 in the fall of 1970 to 4,808 in the fall of 1973 , or approximately 1.2/. The high school and junior high school enrollments have shown a very slight increase in that period of time, but as indicated by the decrease in the lower grades, the trend in Edina, as well as nationally, appears to be toward smaller families. This trend is almost certain to have some impact on patterns of housing use and occupancy, but the extent and nature is unknown. Presumably the trend could, when coupled with the possible shortage of heating energy, result in lower demand for larger homes and consequent reduction in their values. On the other hand, the trend to smaller families may also create pressures to subject these larger homes to uses which are different from that of a convention single-family dwelling. ENERGY SHORTAGE. However, all suburban land use is subject to the unknown ramifications that may arise from a possible prolonged energy shortage. The living habits and life styles of most Edina residents seem to require two-car families, or at least heavy dependence upon private automobile transportation. Edina may be forced to operate its own intra-city bus system. This committee simply lacks the expertise to know how an acute gasoline and energy shortage might affect the demand and use of property in Edina , and it is also unable to determine what additional effect, if any, a municipally-operated busline might have on adjacent housing and on commercial areas which have been designed and oriented for auto- mobile use . One apparent result is visible, however, even now, and that is the continued vacancy of a closed, boarded-up gas station at 54th and France Avenue and a similar closed station on 43rd and France on the Minneapolis side. LOW-COST HOUSING _ It is distinctly possible that in order to meet the housing and social problems of the core cities, neighboring suburbs may be required in the future to furnish more low-cost housing than in the past_ If such a -6- `r requirement did arise , the existence of an HRA would give the municipality more control over planning and creation of such housing than it would otherwise have. The committee does not feel that the mere existence or creation of an HRA would make such housing either more or less likely, and the committee takes no position either for or against such housing. ALTERNATIVES . The citizens of no community in the State are probably more committed to private enterprise than those in Edina . For that and other reasons, the concept of an HRA will probably be unappealing to many. Your com- mittee has attempted to look at possible alternatives. Can private enterprise be used? The answer is 'ryes," if the proposed area or project is under unified ownership and control or if effective cooperation is possible among different owners. In fact, private enterprise is probably the most effective and certainly the most widely used method of development. The difficulty arises when the area to be rehabilitated is owned by many different h _ f persons owning various-sized parcels. Effective cooperation becomes almost impossible because good planning dictates not only consensus as to the plan, but also often requires elimination or combination of the identity of some of these parcels_ Can rehabilitation be carried out by use of conventional methods of bonded indebtedness and special assessments? If rehabilitation involves installation of municipal services or construction of municipal structures, the answer is again 'ayes, it can be." But such improvements are subject to the difficulty of spreading the assessments equitably; also , such assessments, when added to the normal real estate tax Load, can create an annual payment greater than the income-producing capacity the property can carry. Furthermore, special assessments of this nature would presumably be part of the bonded indebtedness of the municipality and includible within the meaning of any constitutional or statutory debt limitation or restriction. Bonds :issued by an HRA would not be so included. Finally, when -7- such assessments are paid by the private owners, they constitute improvements to the premises and are not deductible for income tax purposes as taxes. This latter point becomes important if the improvements are made by an HRA and financed by tax increment financing. Although your committee obviously does not submit the following statement as a legal opinion, it appears to the committee that if such improvements were financed by tax increment financing, the payments would be regarded and identified as taxes and, as such, subject to deduction for income tax purposes. Other devices may be available in lieu of an HRA. One of these would be the use of a development corporation under M.S.A. 301.71 et seq. Such a corporation could carry out area rehabilitation, but since it lacks power of eminent domain, its effectiveness would be greatly curtailed. As indicated, there may be other devices available or 'fin the wings" as pending legislation, but your committee is not familiar with them: CONCLUSION. In summary, your committee believes that there are circum- stances and factors that now exist, which, if allowed to develop in the normal course of time, will create areas where redevelopment will be desirable in the best interests of Edina residents. An HRA appears to be a flexible vehicle to use in meeting those needs. It cannot be arbitrary in its operation, inasmuch as it must obtain the approval of the Edina Planning Commission and Council . Its costs to the taxpayers in general will either be negligible or zero. Its creation at this time would constitute sort of an "observation post" to observe and keep track of changing trends and conditions in Edina , and this, in turn, should permit its members and staff to develop skills in "preventive planning" that would prevent maturing .problems from becoming acute. Such action seems preferable to the more expensive and drastic ''remedial planning" that would otherwise probably be required in the more distant future. Taking into consideration the factors which have been mentioned briefly above , your committee feels that, on balance, the creation -8- of a Housing and Redevelopment Authority for the City of Edina would be in the best interests of the community and recommends that the Greater Edina Chamber OIL Commerce support the creation of such an Authority. Respectfully submitted, S/ Dr. Ronald Peterson, Chairman S/ Jim Dale s/ Ray Rauch s/ Rod McKenzie s/ Hosmer Brown -9- f ` i RN OPEN EEITER TO THE EDINA HOUSING AND REDEVELOPNEW AUTHORITY Re: The Proposed Redevelopment of the 50th & France Coma-rcial Area May 7, 1974 We the Executive Conmittee of the Wooddale Neighborhood Association and its Study Canmittee are by obvious reason most interested in the proposed plans to redevelop the commercial area centering on 50th and France. We support your general attention with regard to the area within reasonable parameters. In no way are we interested in expanding those reasonable parameters and will not compromise our position this side of public conderr�nation and legal recourse. First, we support a plan to provide better traffic flow through the intersections in the immediate area, i.e. ; widening the intersection, providing left turn lanes, installing additional electronic traffic controls, enforcement of no-parking zones, or re-evaluation of present traffic patterns (1st Edina ingress and egress) . Any one or a canbination of solutions this side of expanding the commercial boundaries may be supported by our organization. We are aware of the traffic problems in this subject area, but don't consider this to be so severe that infringement upon the surrounding residential area. is necessary or wise. Second, we feel it is the responsibility of the merchants in the area to provide the redevelopment initiative for their commercial space, not some outside source that has no concern for the economic condition of these merchants. It is necessary that all of the agents of production are in reasonable balance so as to protect the economic well-being of the business carrmnity. Third, any such redevelopment should not be directed so as to create a regional shopping mall or even a large neighborhood center. The basic services that the commercial area provides should be maintained without expandiing its scope as a major retailing center. We realize the need to maintain the concentrated nature of the area in that the congestion that the City Planner so identified in his slide presentation is encouraging to most merchants and should not be considered a singularly negative factor. We are- not encouraging additional motorized traffic through of. into the area soley for the purpose of convenience. We are interested in encouraging additional non-motorized traffic, nearby walk-ways and bicycle paths. Any thoughts as to additional roadways and streets that are not :.:holly contained within the present limits of the subject area will be unanimously opposed by the citizens represented by our organization. Fourth, it appears that a certain amount of existing residential property would have to be re-zoned and transformed so as to provide the fee-simple title necessary for apartment development. We are not interested in seeing the multiple area encroach upon the less dense single family area Apart=ments do not provide good buffer zones as the City Planner proposes with regard to the bright light commercial area. We would rather see additional park-way or green areas serving as buffer zones. Again, we are firmly opposed to any enlargement of the commercial area now in existence or any radicle change in the surrounding residential area. The subject of multi-family residence should not pass without additional comment. It appears that any interest in attracting multi-family development to the immediate area would contradict the expressed goals of the redevelopment area in that it would contribute to the already congested traffic patterns with additional parking needs competing with proposed green-ways and people :walks. A recently passed law in the State of Minnesota provides a tax break for mid-rise multi-family structures so as to encourage higher density land use. Our concern is one of over development and encroachment upon areas that are now serving their highest and best purpose as single family and double family residence. If one parcel of land in a neighborhood becomes valuable as an economic unit for apartment development, what keeps the adjoining parcel from becoming the same? Perhaps the highest and best use of the Edina ' Country Club is multi-family when one considers only the economic value of that particular parcel of ground. We retrain diametrically opposed to any changes with regard to zoning. SuTmarizing our position, we can adopt a simple program defined as a policy of containment, refinement and common sense, without affecting the future physical make-up of the surrounding residential neighborhoods. We should work closely with the Metropolitan Council and the City-of Minneapolis 'so as to conserve and compromise for a more lasting relationship with all concerned. We believe that close attention should be given to improving the present traffic area. Ring routes should provide needed detours around the central core of the subject area, but in no way should they encroach upon the existing residential fringe. We support any effort to gain additional data with regard to income and expense analysis with regard to commercial redevelopment. We are volunteering our time to assist with any such feasibility work. We are not interested in subsidising the commercial interests now present in the area with tax monies or existing residential property. The surrounding residential areas now support the merchants in the area to a great extent and are most interested in their efforts to exist and be profitable. However, we trust there is mutual respect on the part of the merchants with regard to the desires of their neighbors and customers. y Many times elements that,practically speaking,are in obvious conflict with each other are overlooked because of the overzealous enthusiasm of special interest groups and without the proper amount of good sense and dialog ; create irreparable damage. It is our deep concern that whatever direction this project takes, the common good of the majority be the guiding rule and that the needs or greeds of a few won't cause unwanted and unnecessary confrontation that will in turn destroy any positive aspects now inherent in the proposals being considered. George G. damovich Chairman Wooddale Neighborhood Council Thomas A. O'Connell Chairman Study Committee Dickinson G. Wiltz Vice Chairman Study Committee i i SUMMARY OF GOALS STATEMENTS FOR THE 50TH AND FRANCE STUDY AREA AS PRESENTED TO THE HOUSING AND REDEVELOPMENT AUTHORITY ON MAY 71. 1974 By the Edina Chamber of Commerce --Don't limit activities to 50th and France area, but rather practice "preventive planning". By the 50th and France Business and Professional Association --Solve the traffic and parking problem, including circulation. --Encourage beautification by re-writing ordinances and by adding green areas. --Piece-meal solutions have not worked and a comprehensive solution is needed. --Work with City of Minneapolis. By Wooddale Neighborhood Council (Adamovich) --Do not encroach into residential neighborhoods. --Do not widen streets or cause an increase of traffic. --Involve neighbors actively throughout planning and implementation. By Wooddale Neighborhood Council (Wiltz) --Detailed study of financial aspects. --Do not become an administrative staff-dominated commission. --Do not assume there is a need for any redevelopment until that need is properly documented. By Wooddale Neighborhood Council (O'Connell) --Provide better traffic flow but not at expense of surrounding areas. Improve circulation. --Require the merchants to be the initiating force for redevelopment. --Keep the area neighborhood serving, not a regional or community level area. --Encourage non-motorized facilities. --Do not allow commercial areas to encroach into residential areas. Provide a natural (open space or green belt) buffer not a ph-,,s-;cal buffer. --Work with Minneapolis and Metropolitan Council. --Do not subsidize commercial areas with property tax r::onev. By Others --Consider relocating the post office. GL:ln 5/23/74 PROPOSED FORM OF RESOLUTION For Adoption by Commissioners of Edina Housing and Redevelopment Authority BE IT RESOLVED, that the Director and Executive Director be and they hereby are authorized and directed to study the 50th and France commercial area for the purpose of obtaining such information as is necessary for this Authority to determine whether a redevelopment project should be undertaken in such area, which study shall include a recommenda- tion of the boundaries of the project, a plan of redevelopment, and the method of financing the project. BE IT FURTHER RE90LVED, that the Director and Executive Director hereby are authorized and directed to employ such consultants as they deem necessary for the purpose of such study, subject to the approval of such employment and the terms thereof by this Authority, and that the results of such study be reported back to the .Authority by not later than September 3, 1974.