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HomeMy WebLinkAbout1974-06-19 HRA Special Meeting SPECIAL MEETING Agenda Housing and Redevelopment Authority of Edina, Minnesota Wednesday, June 19, 1974, at 7;30 P.M. Edina City Hall 1. Roll Call. 2. Approval of the Minutes of the Previous Meeting Held June 4, 1974. 3. Recommendations and Reports. A. Table of Contents of Feasibility Plan. B. Report Regarding Tax Increment Tax Shift. C. H.R.A. Goals. . D. Citizens Advisory Commission. E. Selection of Consultants. 4. Adjournment. MINUTES OF THE REGULAR. MEETING OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA HELD TUESDAY, JUNE 45 1974 EDINA CITY HALL 1. Roll Call: Charles W. Freeburg, Chairman Lawrence W. Rixe James W. Nelson Gary B. Lvall William F. Greer (arrived at 7:45 P.M.) Staff Present: Greg Luce, Executive Director Tom Erickson, City Attorney Lynnae Nye, Secretary 2. Approval of the Minutes of the Previous Meetings, Held '1av 7, 1974 and Mav 23, 1974. Mr. Lyall made a motion to approve the minutes of the May 7 and May 23, 1974, H.R.A. meetings as written. Mr. Nelson seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Freeburg, Mr. Rixe, and Mr. Nelson. Nays: None. Motion carried. 3. Recommendations and Reports. A. Presentations Regarding Tax Increment Financing. Mr. Luce recalled the staff was instructed at the Mav 7, 1974, H.R.A. meeting to solicit experts representing various points of view to speak in regard to tax increment financing, especially as it relates to the 50th and France area. He introduced Mr. Don Prvor, Assistant Superintendent of Business Services for the Edina Public Schools, Mrs. Pat Lucas, a lobbyist with the State League of Women Voters, 11r. Wayne Johnson, Hennepin County Director of Finance and Records, Mr. Dave Hegg, Executive Director of the St. Cloud Housing and Redevelopment Authority, and 1.1r. John Palmer, attorney for the National Association of Housing and Redevelopment Officials (NAHRO), prior to their presentations. 1. Don Prvor, Assistant Superintendent for Business Services for the Edina Public Schools. Mr. Pryor stated that "so far as dollars into the treasury of Independent School District No. 273, I can find no way that any method of financing you choose will have anv affect whatsoever on the Edina Schools. Tax increment financing will, however, affect the individual Edina taxpayer to whatever extent valuations in Edina are different from what they otherwise would have been." Mr. Pryor clarified that because a fixed dollar amount is levied, the school district levy is completely independent of valuations so any increase or decrease in value would have no effect. In reply to Mr. Freeburg, Mr. Pryor clarified the EARL (referenced in Tom Melena's report "The Effect of Tax Increment Financing Upon the Tax Districts of Edina") is the Equalization Aid Review Committee, which was established by the legislature to equalize the affect of tax assessments throughout the State of Minnesota; the EARC "keeps the assessed valuation, as far as state aids to education is concerned, equal throughout the state. The EARC valuation determines the amount of state aid." 6-4-74 H.R.A. Minutes Page 2 Mr. Lyall noted an important point in the feasibility study would be to determine the impact of whether the EARC bases the amount of state aid on the real value or on the frozen value. Mr. Pryor pointed out that in either event, the school district will still get the same dollars; that determination would effect only the question of who is going to pay what. 2. Pat Lucas, State League of Women Voters lobbvist for tax increment financing and its effect on the citizenry. Mrs. Lucas recalled. the history of development district legislation and how the League of Women Voters arrived at their approach to development districts and tax incre- ment finance in an effort to develop some better approaches to helping the citizenry during the development and redevelopment process in their neighborhoods. She stated the League has developed the position that "when decisions are being made using taxpayer's money, not only the taxpayers within the district but throughout the community, there should be an opportunity for the people living in that district and in the larger community to participate in the decision making from the very outset of the planning process. The tool of tax increment financing is a tool that does in some way shift the tax burden; it does have implications beyond the district boundaries and will affect all of Edina's citizens and the remainder of Hennepin County. The citizens should be involved and aware of this decision and the other taxing districts should be aware of what you are doing and considering and should be involved in some way in the decision. It is our hope that through the involvement of the citizenry wise decisions will be made which will provide for maximum growth and redevelopment in each community as it ` sees its future." I In reply to Mr. Lyall, Mrs. Lucas stated one of the pitfalls of using tax incre- ment finance is that the small businessman, the elderly, and the less affluent are the most affected in that although they may receive a very attractive relocation benefit, there is no comparable space in the same neighborhood; "the availability of low cost space can be built into a plan but it will cost money and is a social undertaking that should involve the total citizenry." In reply to Mr. Tom O'Connell, 4515 Moorland Avenue, Mrs. Lucas stated that if, during the time the bonds are being paid off, the cost of providing county services increases due to inflation or the need for more services, etc. , the rest of the citizens as well as the people that own property within the district will pick up that burden; the burden of providing county services will be shifted throughout the taxpayers of Hennepin County. 3. Wayne Johnson, Hennepin County Director of Finance and Records. Mr. Johnson outlined the "great many concerns" Hennepin County has in regard to tax ineremently financed H.R.A. development districts. "An oral opinion from the county attorney's office indicates that tax increment financing is unconstitutional in that it rides piggyback on every mill rate that a development district is involved in because the taxpayers throughout the metropolitan area and county will have to make up any difference; in effect, the mill rate will artificially increase but the increase in value will not contribute to the levy because everyone metropolitan and county wide, will be contributing to the renewal area. The county, then, is scared that all of the communities will freeze their taxes because the only answer to it is defensive tax increment financing." 6-4-74 H.R.A. Minutes Page 3 "Another concern is the overlapping and wall-to-wall increment financing which leaves the county and those municipalities and schools which have no control at the mercy of those who have. When dealing with a frozen tax base, the only way to raise money is to increase the mill rate. When that happens, the impact of the increased mill rate and the differences in the increased mill will be passed onto the other taxing districts. The county feels there should be some kind of limitation to the amount of increment financing that one city can have. There must be some defined, overall legislation to tie all of the increment financing districts together." Another problem is the "rubber lines" of a district in that the H.R.A. district lines are not solidified and could be changed. He encouraged the H.R.A. to establish the district and certify it for tax increment finance at the same time. Some kind of budget or financial statement should be available to Hennepin County because, at the present time, there is no time limit on H.R.A. 's; through the "rubber line" district, a valuation freeze could be established in 1974 and, theoretically, be kept forever. There should be some kind of a time limit in terms of increment financing so the tax- payers have some guarantee that the program is going to end. Another concern is that if the fiscal disparities law is declared constitutional, this could be a way of escaping that sharing with the metropolitan area. In terms of long term legislation, this may afford an opportunity to escape the community's long range capital financing program and avoid the levy limitations, "and H.R.A. 's could start getting into municipal and school finance programs and circumvent the levy limitation rule". Some type of guard should be built into the legislation to prevent this. Mr. Johnson summarized that the County Board is not anti-redevelopment, but has p these concerns and feels that some guarded limitations must be incorporated into the tax incremently financed development district legislation. Mr. Luce commented that Mr. Johnson's comments assume that a community will act in an unreasonable manner, and asked what the affect on Hennepin County will be assuming a community acts in a reasonable manner. Mr. Johnson responded that the county will not determine whether a community is acting in an unreasonable manner, "but Edina is _ not unique and is effectively establishing a defensive taxing district. It has no guarantee and it is doubtful that the people really understand that they are going to finance a development district area. We are talking about the affect on a county-wide basis and the understanding of the people. It is a political decision, and you are affecting taxpayers in areas that do not have a vote in Edina or wherever these districts are created." 4. Dave Hegg, Executive Director of the Housing and Redevelopment Authorit"r of St. Cloud, Minnesota. Mr. Hegg briefly reviewed St. Cloud's experiences, how they view the tax increment, and why they use it. He explained St. Cloud has older areas in need of redevelopment where there has been a substantial decrease in valuation for the past 10-15 years, there are in-between areas, there are areas where the valuations are relatively constant, and there are areas of rapid growth. St. Cloud became involved in terms of tax incre- ment as an economic and fiscal tool and as a good business practice for the community when, assuming government costs remained constant in the older areas and the valuations decreased, an enormous shift of costs was recognized because the mill rate had to increase to make up the differences. Mr. Hegg explained hour a "replacement increment" is also used; old buildings, which represent an accumulation of a huge amount of economic obsolescence and is essentially lost revenue, are replaced with new, more efficient square footage for a substantial increase of value. 6-4-74 H.R.A. Minutes Page 4 Mr. Hegg explained St. Cloud spends the increments on the "write down", which involves primarily the cost of acquiring and clearing land and making it available for new development. This is considered a public redevelopment cost and St. Cloud feels strongly that in order to maintain an overall economically healthy area there must be a supply of raw land available in all areas of the community at all times. The principle planning reasons tax increment finance is used are to maintain this supply of land so that there is a broad range of age groups within any given area, and to help reduce urban sprawl and reduce the demand for services within the St. Cloud area. He cited two examples and indicated that their tax increment finance projects are generally 10-15 year programs because potential technological changes after that length of time could decrease the value of a particular facility. Mrs. Pam Keating, 6901 Dawson Lane, observed that St. Cloud has primarily used the tax increment finance tool in isolated places of continuing redevelopment rather than in whole sections. Mr. Hegg responded that they do have some projects that encompass larger land areas, but in all cases it is hoped that the benefit will increase valuations around the district or at least postpone any decrease to help keep the valuations of adjoining areas constant. 5. John Palmer, Attorney for the National Association of Housing and Redevelop- ment Officials. Mr. Palmer observed that because many of the tools available for renewal began out of the old slum clearance projects, the idea of renewal has a kind of federal clearing, heartless connotation or stigma to it. A whole range of tools is available for the kinds of redevelopment open to an H.R.A. , although the emphasis has switched to rehabilitation, architectural and historic preservation, etc. Mr. Palmer made several distinctions on the matter of tax increment finance. "When something is done to a blighted area to turn it around, that ordinarily generates some kind of an increase in tax base; without specifically pledging that increase to pay the costs, it is almost always used as a method of selling the idea . of a particular renewal project to the community, so the idea of generating and rejuvenating the tax base and paying off the public investment has always been there." The type of tax increment being used in Minnesota was established by statute in 1969; it provides that the authority may, as a part of its method of finance, ask the county auditor to certify the original taxable value, and the increase over the original taxable value is paid to the Authority and kept in a separate fund, known as the tax increment fund, and used to repay the public cost. When that is paid off, it terminates and the so-called "freeze" ends. A kind of tax increment machinery has, however, existed in the statutes since 1947 as a means of paying for all or part of the public redevelop- ment costs, but it was never used in Minnesota. "We should always distinguish between the idea of establishing the tax increment for all or part of the cost and pledging it to secure. bonds. The sale of bonds is not legally necessary, and if there is some other way of generating money, those funds can be repaid out of the tar, increment. Also, any bonds sold relving on the tax increment have been general obligation bonds of the city with the idea that these will in fact be paid for out of the tax increment." There is a concern on the county level that some local body will latch onto an existing increment, appropriate it from the other taxing bodies and devote it to some special purpose. The tax increment and what will be done there must, however, be defined 6-4-74 H.R.A. Minutes Page 5 in order to have a legitimate project. Some of the concerns of the county are construing this statute in a certain way without a written opinion of the county attorney and in the face of an opinion by the attorney general. In short, in planning a project, the economics of it, the way the law really is, and the way the county seems to be applying it, must be considered. A legitimate project that is well planned should not cause any problems in the areas of county concern. In reply to Mr. Rixe, Mr. Palmer clarified that in order to have an H.R.A. project a finding must be made in the statute that the kind of redevelopment desired would not happen without the expenditure of public money. Regarding the constitutionality of tax increment financing, Mr. Palmer reviewed briefly the possible arguments and answers and indicated that there are arguments that could be made but they are not overwhelwing. B. Flow Chart of Activities for the 50th and France Project, including Table of Contents of Feasibility Plan. Mr. Luce stated he has not vet completed the table of contents of the feasibility plan and asked that this item be removed from the agenda. No action ta'ren. C. Staff Report by Tom Melena, City of Edina Administrative Assistant, entitled "The Effect of Tax Increment Financing Upon.t e Tax Districts of Edina". Mr. Rixe commented that in his opinion the whole presentation leaves an improper impression in that it talks about "self-supporting", "bonuses", "gifts", etc. Ile observed that the mill rate will have to be raised to offset the loss of revenue to the schools, county, and city over the next 20 years, so all of the Edina taxpayers would be paying more than they would without the tax increment financing. Mr. Melena agreed that revenue would be taken from all of the taxing districts involved, but added that after the financing is completed and the funds repaid within the ten year period, the taxing districts will receive even more revenue generated. In addition, the other areas in Edina will experience the same inflationary increase in valuation, therefore _ the general revenue will also increase. Brief discussion followed. Mr. Melena clarified his assumptions, several definitions, and Table 2. D. Mr. George Adamovich, 4610 Bruce Avenue, read a resolution (attached) adopted by the Wooddale Neighborhood Council on 5-30-74 which outlines seven basic principles their organization feels should be incorporated in the consideration of the 50th and France project. He requested that specific planning principles and a set of goals be adopted by -the H.R.A. so that the Wooddale Neighborhood Council and others can judge the progress of the program against those guidelines. Mr. Lyall reiterated his concern that a feasibility study could have substance if it isn't accomplished against a set of goals. He made a motion that within one week the H.R.A. members submit in writing their individual inputs to be incorporated with those of the community and various other groups; a specific set of goals for the 50th and France redevelopment project should then be established by the Executive Director for review at a special meeting in two weeks. Mr. Nelson seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, Mr. Freeburg, Mr. Rixe, Mr. Nelson. Nays: None. Motion carried. 6-4-74 H.R.A. Minutes Page 6 E. Mr. Erickson reported that the Mayor and Council are concerned with the method chosen to appoint the citizens advisory commission; namely, the communication via letter to 1,000 homes. They would prefer an appointment by the H.R.A. of an advisory commission of a set number of people, and suggested a newspaper article be used to solicit nominees. Mr. Lyall made a motion after brief discussion that an open-ended citizens advisory commission composed of a steering committee of seven permanent members, including at least one businessman, be appointed by the H.R.A. , with nominations to be solicited by a written invitation to the various citizens groups and businesses; establishment of that commission and an invitation for nominations should be publicized in the Edina Sun, and nominations should be closed in two to three weeks. Mr. Rixe seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, Mr. Freeburg, Mr. Rixe, Mr. Nelson. Nays: None. Motion carried. Mr. Lyall urged the Wooddale Neighborhood Council to submit a slate of candidates in response to their earlier offer of persons with expertise and a willingness to work. It was generally agreed a liaison member, either the Executive Director or an H.R.A. member, between the citizens advisory commission and the H.R.A. should be provided. F. Mr. Freeburg moved that a special meeting be held on June 19, 1974, at 7:30 P.M. at the Edina Citv Hall to discuss the H.R.A. 's goals, the appointment of the citizens advisory commission, and other agenda items. Mr. Lyall seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, tor. Freeburg, Mr. Rixe, Mr. Nelson. Nays: None. Motion carried. 4. Adjournment. No further discussion being heard, tor. Nelson moved the meeting be adjourned. Mr. Lyall seconded the motion, and upon roll call the following voted: Ayes: Mr. Lyall, Mr. Greer, Mr. Freeburg, Mr. Rixe, Mr. Nelson. Nays: None. Motion carried. Respectfully submitted, Greg Luce, Executive Director LN • i Wooddale Neighborhood Council P.O. Box 24301-Edina Station Edina, Minnesota 55424 June 3 , 1974 The Wooddale Neighborhood Council is vitally interested in the evolving plans for the redevelopment of the 50th and France neighborhood shopping area.. Therefore, the Council has participated in the deliberations of the H.R.A. , and has established a Study Committee to reflect the viewpoint of the 1200 households in the Wooddale area. The Wooddale Neighborhood Council approved in principle the enclosed "Open Letter to the Edina Housing and Re- development Authority" , and, on May 7th, made a formal presentation to the Housing and Redevelopment Authority. At the Executive Committee meeting of May 30, 1974 , the enclosed resolution covering seven basic planning principles was adopted for presentation to the H.R.A. on June 4 , 1974 . As a civic leader in Edina, we are anxious that you be in- formed about the views of the Wooddale Neighborhood Council on this important issue. Sincerely, i A Georg G. Adamovich Mina Adamo ch , Chairpersons enclosure WOODDALE NEIGHBORHOOD COUNCIL Resolution Adopted May 30, 1974 BE IT RESOLVED that, the Wooddale Neighborhood Council supports the improvement of Edina' s retail and commercial areas, consistent with basic principles which serve to benefit Edina citizens. We believe that the H.R.A. re- development of the 50th and France retail area, if authorized, must be accomplished in a manner which is in keeping with the total interests of Edina, and the specific interests of the immediate neighborhood. Therefore, the Wooddale Neighborhood Council supports the following basic planning principles to be incorporated in any evolving plan: 1. Improved efficiency and beautification of the 50th and France retail area be accomplished without removing surrounding private homes, or destroying the homeowner's property values, right to privacy and quality of life. 2. Neighborhood retail shopping center improvements, such as 50th and France, be accomplished without imposing traffic congestion; safety hazards, noise pollution, and visual pollution on the surrounding neighborhood. 3. The desirable character of the neighborhood must not be compromised by the widening of 50th Street or by additional shopping center access roads being cut through the residential area. 4 . Neighborhood retail shopping center improvements, such as 50th and France, be accomplished without forcing out small business and access to their services due to higher costs. 5 . Financing of individual neighborhood shopping center improvements should not in any way reduce tax funds essential to the improvement and operation of the Edina School System. 5 . Financing of the business and commercial improvements of an Edina neighborhood shopping center should be accomplished without a direct or indirect increase in taxes for the citizens of Edina. 7. H.R.A. planning for the re-development of the Neighborhood Shopping Center at 50th and France, or at any other site, must include broad-based citizen par- ticipation throughout the planning, development and implementation phases of such a project. This should be provided through a Citizens ` Advisory Committee with membership open ended to permit participation by any interested citizen. BE IT FURTHER RESOLVED that, the above basic planning principles be adopted by the Housing and Redevelopment Authority. Chairpersons: Secretary-Treasurers: 4,;,7P Z av R,_hAL A & AE QAA, , k Mina Adamovidh arbara Laederach I W4-*,4r� Georg G. Adamovich Paul Laederach 4610 Bruce Avenue 4633 Bruce Avenue FEASIBILITY OF A TAX INCREMENT FINANCE PROGRA14 FOR THE 50TH AND FRANCE AREA 1. Statement of Conditions 1.) Traffic Circulation and Congestion 2.) Parking 3.) Building 4.) Residential Compatibility 5.) Taxes 6.) Aesthetics 2. Statement of Assumptions 1.) Size of Project 2.) Cost of Project 3.) Tax Generated by Project 4.) Taxes and Future Tax Generation 5.) Bonding and Financing Life 3. Statement of Feasibility MEMORANDUM TO: Housing and Redevelopment Authority Members FROM: Greg Luce, Executive Director SUBJECT: Housing and Redevelopment Authority Goals (Agenda Item #3C) Attached is a set of goals which, while number only seven, in my opinion are quite comprehensive and reflect the comments made by the commissioners. GL:ln 6:14:74 HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA GOALS FOR 50TH AND FRANCE AREA 1. Study thoroughly the history and trends of this area and other similar commercial areas to determine the scope, direction, and theme prior to determining physical changes for the study area. I 2. Provide a general improvement to the utility and roadway system which will reduce congestion and improve circulation in the business district. 3. Create a separation between the business district and the residential district while establishing both physical and psychological barriers to future commercial encroachment into residential neighborhoods. 4. Encourage participation of all affected groups or agencies, especially surrounding neighbors and the City of Minneapolis, in every stage of planning and implementation. 5. Improve the human aspects of the commercial district such as pedestrian traffic flow and safety, elimination of improper signage and overhead utilities, and landscaping. 6. Increase viability and enhance the collection of goods and services offered by providing an attractive physical and economic environment within the neighborhood center concept. 7. Proceed with implementation only after a fiscal determination has been made which projects only a negligible impact on property taxes, which will pay itself off within 20 years, and which will be a long term physical and fiscal benefit. GL:ln 6/14/74 SUMMARY OF GOALS STATEMENTS FOR THE 50TH AND FRANCE STUDY AREA AS PRESENTED TO THE HOUSING AND REDEVELOPMF..IT AUTHORITY ON MAY 73, 1974 1, By the Edina Chamber of Commerce --Don't limit activities to 50th and France area, but rather practice "preventive planning". By the 50 and France Business and Professional Association ve the traffic and parking problem, including- circulation. Encourage beautification by re-writing ordinances anal by adding green areas. ece-meal solutions have not worked and a comprehensive solution is needed. Work with City of Minneapolis. By Woodd e Heighborhood Council (Adamovich) se-0-00n no encroach into residential neighborhoods. Do of widen streets or cause an increase of traffic. -- volve neighbors actively throughout planning and implementation. By Woodda Neighborhood Council Niltz) -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 properlNr documented. By Wooddal 'Neighborhood Council (O'Connell) P de better traffic flow but not at expense of surrounding areas. inprove rculation. Require the merchants to be the initiatin' force for redevelopment. Keep the area neighborhood serving, not a regional or community level area. Encourage non-motorized facilities. /Dn ot allow commercial areas to encroach into residential areas. Provide tural (open- space. or green belt) buffer not a physical buffer. with Minneapolis and 24etropolitan Council . --Do not subsidize commercial areas with property tax money. By Others --Consider relocating the post f.fice. N . �,:gy 17U,:In '> 5/23/74 �`d DATE: 6/11/74 TO: Greg Luce, Executive Director Edina HRA FROM: Gary B. Lyall, Commissioner SUBJECT: STATEMENT OF GOALS FOR THE 50TH & FRANCE PROJECT I offer the following outline of goals for the 50th and France Project to be considered at our next meeting at which we are to determine the final Goals Statement that will be the platform for the up-coming feasibility study. A planned redevelopment of the 50th and France shopping area should in one integrated project: 1. Improve the 50th and France shopping area as a service and retail center for the existing trading area in the eyes of the citizens and business men presently being served as regards: (a) Pedestrian traffic flow and safety. (b) Vehicular traffic flow and safety. (c) Parking facilities (quantity and quality) . (d) Aesthetics,(e.g. beautification of the perimeter with a green buffer and the interior with landscaping, etc. and elimination of above-ground utilities` service) . 2. Retain the present perimeters of commercializing both as regard vertical development and horizontal development (i.e. do not encroach on present residential areas physically or visually. ) 3 . Enhance the collection of goods and services offered by providing an environment attractive to small/ special retail and service operations. 4. Retain the present neighborhood shopping center concept. 5. Encourage similar simultaneous redevelopment in the Minneapolis end of the 50th and France area. 6. Be accomplished on a self-financing basis within a 20-year period with a negligible impact on property taxes. �U'•MARY OF GOALS STATEMENTS FOR THE 50TH AND MMICE STUDY AREA AS PRESENTED 7-0 THE H0USING AND P.EDF.VELOPTIF.NT AUTHORITY 0'I HAY 7, 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 ' P---Solve the traffic and parking problem, including circulation. • Lif--incourage beautification by re-writing ordinances and by adding green areas. t---Piece-meal solutions have not worked and a comprehensive solution is needed. L,---Work with City of Minneapolis. By Wooddale Neighborhood Council (Adamovich) • v--Do not encroach into residential neighborhoods, t/--Do not widen streets or cause an increase of traffici,-.u4:-t"J,_;4 e— f� cc cef • �/--Involve neighbors actively throughout planning and inplementation. r `�` -� By Wooddale Neighborhood Council ltz) ' 1= Deta iked study of financial aspects. tom- =Do• not become an administrative staff-dominated commission. --Do not assume there is a need for anv redevelopment until that need is properly documented. By Wooddale Neighborhood Council (O'Connell) --Provide better traffic. -flow but not at expense of surrounding areas. Inprove circulation. _ : !f 0 q""L4Require 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 reffidential-arens. Provide a natural (open space or green belt) buffer not a physical buffer. • --Work with Minneapolis and Vetropolitan Council. --Do not subsidize commercial areas with property tar, coney. By Others --Consider relocating the post office. 1 �;j:In x/23/74 Jung 10, 1974 Piro Greg Luce Executive Director City of Edina HRA Dear Greg: This is in response to your request for input regarding goals for the 50th and France project, I wanted to re—phrase the points in the discussions we have already had and restate some of the ideas presented by neighborhood groups and otherso i'�r list follows rather than checking off items in the furnished summary. I also feel that open letters and resolutions are not really goalsp For it's my feeling goals should be positive, they should be attainable and they should be in the best interests of the majority of the people. Following are my thoughts for tha 50th and France area: l.. Study the 50t'n and France area as .a retail center which was started many years ago in the light of today's directions in sho?ping- ce'tt3rs a * to deterriine the scope and direction of the project„ b* to attempt to forsee the future of the area and how best to -meet it at this time. c* to decide if what is happening in centers today and what needs doing in this area are feasible. 21 Study thn- flora of' traffic to and through the area to arrive at the best utilization of land devoted to parking and to unimpeded car traffic passing through the area.. 3. Consider rehabilitation and/or reconstruction of shopping and office space to achieve best utilization and allow for fut-.se expansion. 4* Establish a work able theme or concept for the area to give it distinetiono 5. While bicycly paths and green areas are atttactive, winter weather should also be considered in allocation of space and functional use of Lando Fringe parking, moving sideealks and walking areas ndght prove more practical year around. 6. Cooperation with Minneapolis seems to be vital in developing a totally unified retail area* page 2 7* A this is a corimarcial project, financing should not be a burdan to the taxpayers of Edina, Hennepin county or nnesota* 8* Work and plan openly with neighborhood groups, merchant -groups and all interested citizens* I 9. Welcome and review thoughts, goals, etc. of neighborhood groups, but accept them as advisoty ideas rather than adopting them as confining limits„ Bill Greer Commissioner, 'ity of Edina HRA S U M M A R Y For the following material., several assumptions were made; 1) An arbitrary amount equal to the taxes now generated (>321,000.00) had veen taken out of the various taxing jurisdictions of Edina's rate by .2146 Mill and an increase to the out of Edina Mill Rate by .12216 2) All homes used for calculations were homesteaded. 3) A 5.5 million dollor project was initiated. 4) Annual growth rate was 3%. 5) All taxing jurisdictions shifted burden to other property tax within their jurisdiction. I TAXES P,IOI-, PAID ON All EDINA HOME PER KARY.ET VALUE $40,000.00 HOME first : 12,000.00 Q 25% of Market Value, 3,000.00 remaining 428,000.00 @ 4% of Market Value $11,200.00 TOTAL $14,200.00 TAXABLE ASSESSED $14,200.00 ASSESSED VALUE Q 83.148 Mill Rate VALUATION $1,180.70 - $325.00 SALES TAX CRREDIT TAX PAYABLE $755.70 TAX PAYABLE WITH H.R.A. $758.75 (83.3626 Mill Rate) DIFFERENCE OF $3.05 w 50,000.00 HOME first $12,000.00 @ 25o of Market Value $ 3,000.00 remaining $38,000.00 @ 40% of Market Value $15,200.00 TOTAL $18,200.00 315,200.00 @ 83.148 Mill Rate $1,513.29 — $325.00 SALES TAX CREDIT TAX. PAYABLE 31,188.29 TAX PAYABLE WITH H.R.A. 31,192.20 (83.3626 Mill Rate) DIFFERKICE OF 403.91 $601000.00 HOc.� first 312,000.00 @ 251 of Market Value $ 3,000.00 remaining $48,000.00 @ 40� of Market Value $19,200.00 TOTAL 8221200.00 221200.00 j 83.148 Mill Pate .;1845.89 - :"325.00 SALES TAX CREDIT TAX PAYABLE ";1,520.89 TAX PAYABLE ,-]ITH H.R.A. 1,525.65 (83.3626 Mill Rate) DIFFL2?0TCE OF ;;4.76 8.7.96 amuy"Idiia {a,.vg mm 9z9£'£8) 55'Z6T4Zk 'V'2i'H HID-1 =9V7,Vd XVZ L0*98T 4 Z;" =GV7.Vd XVS ZIa?'d0 '-_fl S-'IVS 00'5Z£� LO'TT54z ` a q�-H TTzyd 8`7T'£8 7D 00'OOZ 4 O CI 00'OOz40£" 'IVSOy 00'OOz4Lzg anTaA Jo %W7 P 00'000489' QuzuTmaj 00'0004£ s anTaA lay,---2N J0 55z C 00'000&ZT6' gsJTJ at•:OH 00'000 08S z9'5k aormaz33ia (G,4uu Tm 9z9£'£8) OT'6_<84Tl 'V'H'H HZIR a'ISV.,Vd XIVZ S'7*C5,2'TS a'Ig V XVd k7s J,IG=D `:'� SH'IVS 0005z£C — 8'1'8L Z4 agZ'd TTIM 8�1T'£8 D 00'00Z49ZS 00'00Z,zS riVyy O 00'00Z £Zu anT'011 fax ii , o �1 C 00'000485" Sur maj 00'000`£ s anTa11 *a�,I-Ia,•i jo 'SZ 0 00'0004ZT; 4GJTS E110H 00'000 0 T Richfield now has a Mill Rate of 99.225 .with an H.R.A. this rate with the stated assumptions, this rate would be increased by .1221 f0 for a new total of 99.34716 Minneapolis now has a Mill Rate of 121.342 (with Watershed #3) using the assumption the new rate would be increased by .12216 for a new total of 121.46416 Long Lake, School Dist. X2781 vIatershed ;;3, now has a Mill Rate of 105.781 would be increased 012216 to 105.90316. TAXES NOW PAID OiI A RICHFIELD HOI•I PER Mu t�RKET V'-LUE BEFORE H.R.A. AIiD AFTER A02000.00 HOI-IE first '12,000.00 :: 25;0 of Market Value 3 3,000-00 remaining x281000.00 �0-' 49/lo of Market Value $11,200.00 TOTAL : 14,200.00 TAXABLE ASSESSED .;3141200.00 ASSESSED VALUE .9 99.225 Mill Rate VALUATIOI $1,408.99 - $325.00 SALES TAX CREDIT TAX PAYABLE 31,083.99 TAX PAYABLE WITH H.R.A. $1,085.73 (99.347 Mill Rate) DIFFER2-,CE OF $1.74 $50,000.00 HOME first $12,000.00 @ 25% of Market Value $ 3,000.00 remaining 338,000.00 @ 40;0 of Market Value $15,200.00 TOTAL 318,200.00 .J15,200.00 9 99.225 Hill Rate fi11805.89 - x,325.00 SALES TAX CREDIT TAIL PAYABLE :x11483.12 _ TAX PAYABLi. _',TTH H.R.A. $1,483.12 (99.347 Mill Rate) DIFFERENCE OF $2.77 60 00.00 HO, first ;12,000.00 25'jb of Market Value a 3:000.00 remaining 4-48,000.00 O 400" of Market Value ;19,200.00 TOTAL $22,200.00 J22,200.00 Q 99.225 Mill Rate ►2,202.80 - '325.00 SALES TAX CREDIT TAI. PAYABLE 31,877.80 TAX PIYx-IBLE WITH H.I?..A .;1:525.65 (99.347 P-Iill Rate) DIFFLtdZ.J-'CE OF :;;2.70 :x 0 (00.00 HOME first x12,000.00 @ 25% Market Value x 3,000.00 remaining $58,000.00 Q 4&,4o Market Value $23,200.00 TOTAL '.261200.00 :y26, 00.00 oc. 99.225 Mill RAte -52,599.70 — 3325.00 SALES TAX CREDIT TAX PAYABLE 32,274.70 TAX PAYABLE ,rITH H.R.A. $2,277.89 (99.347 Mill RAte) DIFF�'`MCE OF >3.19 Z80,000.00 HOME first ;12,000.00 Q 25 of Market Value x 3,000.00 remaining :x68,000.00 @ 40% of Market Value $27,200.00 TOTAL 330,200.00 330,200-00 @ 99.225 Mill Rate x2,996.60 — ;325.00 SALES TAX CREDIT TAX PAYABLE ;2,671.60 _ TAX PAYABLE ,,,ITH H.R.A. $2,675.28 (99.347 Mill Rate) DIFF=ENCE 'x;3.68 TAXES T'10;''1 PAID 011 A MI11:1EAPOLIS HOE PER MARKET VALUE U0,000.00 HOME ` first $12,000.00 @ 25% of t.arket Value 3,000.00 remaining 325,000.00 @ 40ic of 'Market Value 311,200.00 TOTAL $14.1200.00 TAXABLE - I ASSESSED 314,200.00 ASSESSED VALUE 9 121.342 hill Rate VALUATION $1,723.06 — '3325.00 SALES TAX CREDIT TAX PAYABLE 31,395.06 TAX PAYABLE Y'dITH H.R.A. 31,399.79 (121.464 hill Rate) DIFFERENCE OF 31.73 3 L50 000.00 HOT fE first 312,000.00 Q 25;'0 of 11�rket Value $ 3,000.00 remaining 335,000.00 0 40 _ of Market Value $15,200.00 TOTAL 315,200.00 3151200.00 Q 121.342 fill Rate $2,205.42 — $325.00 SALES TAX CREDIT TAX PAYABLE 31,553.42 TAX PAYABLE iJITH H.R.A. 31,555.64 (121.464 Pall Rate) DIFFERREICE OF ;2.22 360 .00.00 HOPIE first ;121000.00 @ 25 of Market Value 3 3,000.00 remaining $45,000.00 @ 40;>b of I..arket Value $19,200.00 TOTAL 322,200.00 ;,22, 00.00 0 121.342 Pill Rate S21693.79 — 3325.00 SALES CREDIT TAX PAYABLE 'x2,365.79 TAX PAYABLE tIITH H.R.A. .x2,371.50 (121.464 T•.ill Rate) DIFFI 210E OF 2.71 570,000.00 HOIKE first :;12,000.00 @ 25% of Market Value $ 3,000.00 remaining 358,000.00 @ 40cl of Market Value 32 200.00 TOTAL -02 ,200.00 $26, 00.00 Q 121.342 Mill Rate $3,179.16 — 1325.00 SALES TAX CREDIT TAX PAYABLE 32,854.16 TAX PAYABLE ,,JITH H.R.A. $2,857.36 (121.464 Rate) DIFFERENCE OF 33.20 280 00.00 HOME first 312,000.00 @ 25740 of Market Value 3 3,000.00 remaining X568,000.00 @ 40% of Market Value $27,200.00 TOTAL $30,200.00 00,200-00 C 121.342 Mill Rate 331664.53 — 3?325.00 SALES TAX CREDIT TAX PAYABLE w3,339.53 _ TAX PAYABLE ?-1ITH H.R.A. ;3,343.21 (121.464 Pill Rate) DIFFERENCE OF -03.68 TAXES NOW PAID ON A LONG LAKE HOME PER 11:!RKET VALUE X40 000.00 HOME first 312,000.00 Q 25° of Market Value $ 3,000.00 remaining ;28,000.00 Q 40% of Market Value $11,200.00 TOTAL $14,200.00 TAXABLE ASSESSED 314,200.00 ASSESSED VALUE @ 105.781 Ail.1 Rate VALUATION .$1,502.09 — $325.00 SALES TAX CREDIT TAX PAYABLE 31,177.09 TAX PAYABLE WITH H.R.A. $1,178.82 (105.903 ;Sill Rate) DIFFERENCE OF $1.73 $50 00.00 HOME first $12,000.00 Q 25;0 of Market Value $ 31000.00 remaining $38,000.00 @ 40;o7 of Market Value $15,200.00 TOTAL $18,200.00 ;151 00.00 CQ 105.781 Mill Rate $1,925.21 — '8325.00 SALES TAX CREDIT TAX PAYABLE $1,600.21 TAX PAYABLE WITH H.R.A. 1,c02.43 (105.903 2:ill Rate) DIFFERENCE OF 82.22 x60 00.00 HOPS first 312,000.00 0 25;0 of Market .Value $ 3,000-00 remaining :x48,000.00 C 4051o' of Market Value $19,200.00 TOTAL 322,200.00 x221 00.00 @ 105.781 Mill RGte $2,348.34 — ?325.00 SALES TAX CREDIT TAX PAYABLE $2,023.34 TAX PAYABLE WITH H.R.A. ',;21026.05 (105.903 Mill Rate) DIFF ^ SCE OF :0'2.71 X70 0 DO.00 Hors first 3121000.00 25A0 of Market Value 3,000.00 remaining 358,000.00 Q 40 jo of Market Value 323 200.00 TOTAL $26,200.00 326,2 0.00 @ 105.751 Mill Rate 32,771.46 - 3325.00 SALES TAX CREDIT TAX PAYABLE21446.46 TAX PAYABLE WITH H.R.A. :32,446.!6 (105.903 till Rate DIFFERE14CE OF- $30'20 380 00.00 HOME first 312,000.00 @ 25j0' of Market Value 3 3,000.00 remaining 365,000.00 9 40 of Market Value 327,200.00 TOTAL 330,200.00 30, 00.00 U 105.781 1 ill Rate X3,194.59 - 3325.00 SALES TAX CREDIT TAX PAYABLE WITH H.R.A. 327873.27 (105.903 Mill Rate) TAX PAYABLE 321869.59 DIFFERMICE OF 0.68 As stated, the earlier figures were if the entire 3321,318.00 were removed from the tax rolls or if an amount equaling that was not collected — the following figures show the breakdocm for four sample years on Edina and the three other sample muni.c— ipalities. Once again it should be noted that the figure 3;321,318.00 is an arbi- trary amount. AX PAYABLE 1.1ITH H.R.A. ON PRIOR SHEETS IS BASE P-IOD 1974 DATA BASE PERIOD IS THE C01,11ON DENOMINATOR 1978 is 80.11 of Base Period 1983 is 109'% of Base Period 1988 is 142;0 of Base Period 1993 is 181% of Base Period INCREASE TAX EFFECT PER MU-NICIPALIll '540,000.00 HOME EDII A RICHFIELD MI1,II3EAPOLIS LONG LAKE TAXES lvJaTHOUT H.R.A. DISTRICT 1974 '755-70 :1,083.99 $1,399.79 31,177.09 ADDITIONAL TAXES WITH H.R.A. DISTRICT 1978 I;2. ;;1.39 31.39 31.39 1983 3'3.3 2 31.90 31.89 $1.89 1988 '4-33 $2.47 :2.46 ;2.46 1993 35-52 $3.15 3>3.13 33.13 3544000.M HOME' EDII•'A RICHFIELD MII 17,E.APOLIS LOI1G LAKE TAXES WITHOUT H.R.A. DISTRIC^1 1974 31, 88.29 31,483.12 ; 11885.64 31,600.21 ADDITIONAL TAXES A,ITH H.R.A. DISTRICT 1978 .33• >2.22 X1.78 X1.78 1983 >4. 6 ;3.02 :;,2.42 >2.LE2 1988 >5.55 '3.93 >3.15 '3.15 1993 7.0 8 V 5.01 :4.02 x4.02 $60,000.00 HomE EDI 1A RICHFIELD MINNEAPOLIS LONG LAKE TAXES WITHOUT H.R.A DISTRICT 1974 $1,1520.89 $1,877.80 32,368.79 : 2,023.34 ADDITIONAL TAXES �iITH H.R.A. DISTRICT 1978 '3. 1 332.16 312.17 32.17 1983 315. 9 >2.94 32.95 32.95 1988 s6.16 533.83 33.85 33.85 1993 318. 2 :;4.89 $4.91 34.91 ;570,000.00 HOME EDIP A RICHFIELD MIP 1,7EAPOLIS LONG LAKE TAXES i•IITHOUT H.R.A DISTRICT 1974 31,E53-48 -2p274-70 $2y854-16 $2,446.46 ADDITIONAL Tr _ES ;ITH H.R.A DISTRICT 1978 ;?4.!10 ,;2.56 32.56 32.56 1 J'"Y3 31 6. 3 : 3.48 $3.49 313.49 1988 a7.c,,8 34.53 314.54 314.54 .1993 '10.17 $5.77 `35.79 35.79 o80,000.00 HOf iE EDIP i`, RICHFIELD P-IIIZTEAPOLIS LONG LAI E TAXES WITHOUT H.R.A. DISTRICT 1974 ,1,'P'21186-07 :;2,671.60 '3,339.53 $21869.59 ADDITIONAL TAXES KITH H.R.A. DISTRICT 1978 3)5-19 32.95 :52.95 32.95 1983 ;37. 6 X4.01 34.01 a,4.o1 1; 8 ';;0.20 $5.23 35.23 315.23 1993 X14. 73 ;6.66 36.66 5;6.66 MEMORANDUM TO: Housing and Redevelopment Authority Members FROM: Greg Luce, Executive Director SUBJECT: Citizens Advisory Commission (Agenda Item �,3D) Below is a xerox copy of the notice as it appeared in the Edina Sun. We have to date received a couple of suggestions, but I intend to hold them until the meeting or until I get, a significant number of them, which I will then send to the commission members in a follow-up mailing. may be real, dware, Eline ..,... alley View Hair School District personnel, parents of junior students work mu ,G -arden Center, 1v.,ley View Texaco, at both Edina East and Edina West and_parents of the l�ortn s (Official Pubtleationl fions are ay. alo._ --Beauty, ' seniors at both schools. STUDENTBUILT by check)- ash and Junior Cleaners,Plaza Stamps and "All of the parents of the seniors were most coop- The Board EFOR SALE Independent upon return It Shop of Edina, Edina Television,The Owl erative," Mrs. Dovolis said. "I've been involved In School District 287 Suburban Hennepin tions with a County Area Vocational Technical considered i erson Portraits, Frederick Herfurth Real several of these parties and the enthusiasm Of the Schools will receive seated bids for four nied by cash Doter Cleaners, France Ave. Mobil, Edina parents this year was unsurpassed." (+)separate houses built by sWdents ofd pa Suburban Hennepin County Area Voca- amount of s ^ Technical Centers bids will beeceived at Trades he amount of b. serves the ri Superintendent's office located at 1820 BY ORDI r1 tY� !1 �yt north Xenium Lane, in the Village of COUNCIL, I i[s!u f 1 i� Ca lle da r tot m tt P'yrriouth, Minnesota until 11:00 a.m., �eQe�eE� ?11 f en� committee i �i f ee July 8, 1974 at which time bids will -, (June B, tabulated for presentation to the Board of COMMUNITY CALENDAR The Edina Housin g an Redevelop-Redlo - Education Independent School District. - P 287 for making the award to the success. Prepared by the Edina Council of ment Authority is creating a citizens advi- ful bidders. . (a Two of the houses are located at Henne- NO, Community Organizations) sory committee to consider redevelop- pin Technical Center,North Campus,9o00 Joia, SATURDAY,JUNE 15 ment of the 50th Street and France Ave- -77th Ave- North&Cty Rd.18,City of Brooklyn Park: and two are located at !((tuna newspapers, bottles, cans, aluminum, nue area. Volunteers for the committee 9M Flying Cloud DriveSHwy 169)in the Sealed bid City of Eden Prairie.The houses will be COMMUNIC.+ y hose, crank case oil accepted at Recy- should send letters to: Greg Luce, HRA, open for inspection weekdays from 8:00 TIO Schoolbe Center, 5121 Brookside Ave. For informa- Edina City Hall,Edina,Minn. a.m.to 6:f0 p.m.,June 14 thm June 28, County,esday Minor 1974 and from 9:00 a.m.to 1:00 p.m.on m.Tu call Nancy Grimsby,922-9403:10 to 3 p.m. Saturday,June 22,1974. p.otn.ce,18201 MONDAY,JUNE 17 Rep. eyes houses are identified for bidding. apolis, at wr �e�• Forsythe e�e$ fvod purposes ce House e h C&D and bids opened by re; ter for grades one through six at Edina Li- will be received on each rouse ation has . Ord and ta estly only.The Board n Education has the Board of 5 by"Theater in a Trunk I".2 p.m. -:�> established that a bid of no less than its,- after 1:30 p.m 'S reading iscussion 933 on House A:$18,096 on House B:$18,- be returned un g group. For informa= State Rep. Mary For "The purpose of the food 151 on House C:and$16,77'20 on House D Envelopes call Marty Howes,933-0144.12:30 .m. will be consider ed.Each bidder must add seated, mark, P sythe called on private tit- shelves is to supplement w this proposed bid 47, Minnesota Saks •corner bid"I'l ty hall,7 p.m: izens and groups to' artiei- the programs being car- T,,identified separately as per the bid COMMUNIC.1 garden Club. For information call Elaine g p P P g g form and aggregate the total.Each bid- 770N/with U pate to the fullest extent ried on by public agencies: der must include a certified check or ac- _bidder.Bids n '.r5,g26-2562.8 p.m. c ptable bidder's bond payable to Inde- bider.Bids it possible in restocking Churches and private indi- pendent School District 26fin the amount a delivered TUESDAY,JUNE 18 emergency food sources in viduals have been an im- b sub Stied[the aggregate bid on each specified bid d, or information call Tim Igo, 935-3994. 12 Additional information on the tour,4) School Dislric' HennepinCourity.. portant supplier of the houses l information Mr. any deliveries emergency foods.Business David Smith, North Campus, Tel. 425• any charges ir. et nmittee,city hall.3 p.m. Mrs Forsythe.Stated: 3w-'Mr.James Rossbach,South Cam- materials.) and labor have also con- pus.Tel.944-2222: Mrs. Dorie Graham, T�date an !a Commission,city hall.7:30 p.m Since 1969 we have had a tributed greatly._ District office,Tel.546-3M. should b ie;a ;reek garden dub.8 p.m. ro ram in -Henne in - All bidders arerequired to submit their program P "I feel very strongly bids on bid forms r red b•District 287 JM.,t E.E WEDNESDAY,JUNE 19 County to Acri z fhnca tshn Y g Y _ ,, p�• ..y. t i,,r ;i