HomeMy WebLinkAbout1974-09-03 HRA Regular Meeting AGENDA
Housing and Redevelopment Authority of Edina, "innesota
Tuesday, September 3, 1971+, at 7:30 P.?!.
Edina City Hall
1. Roll Call.
2. Approval of the Minutes of the Previous "eeting, held August 22, 1974.
3. Recommendations and Reports.
A. Loan Agreement
B. Financial Status of H.R.A.
C. Report by Consultant Selection Committee
D. Report on Past, Existing and Future Plans for the Minneapolis
Side
4. Adjournment.
a
M
MINUTES OF THE SPECIAL ME"ll'ING OF
T.IE 11t7tISI'IG Ai'D REDEVI1OPriEI1T AUTiiOI:ITY OF T;DIt;A, MTP4- SOTA
HELD THURSDAY, AUGUST 22, 1974
EDINA CITY HALL
1. Roll Call: Charles W. Freeburg, Chairman
Lawrence W. Rixe
William F. Greer
Jarn�s TJ. nelson
Staff Present: David Schnobrich, Intern
Lynnae ';ye, Secretary
2. Approval of the Mi..nutes of thc, Previous, "eeeting, Field August f, 1974.
Mr. Rixe moved the minutes of the August 6, 1974, Housing and Redevelop-
ment Authority meeting be approved as written. Mr. Greer seconded the motion,
and upon roll call the following voted:
Aves: Mr. Nelson, Mr. Freeburg, Mr. Rixe, Mr. Creer.
Plates: None.
Motion carried.
3. Recommendations and Reports.
R. Citizens Advisory Committee Report.
Mr. D:i.cl: T;ri.ltz, 41F00 West 50th Sere;^t , read. the "Citizens Advisory
Committee Report #1" dated August 27., 1971: (attached) .
A. Progress Report on 50th and France Project:
Mr. Schnobrich recalled meetings were held with the 50th and France
husi.ne.sspeople on August 7th and August 14th to discuss their willingness to
accept a possible special assessment of 20% of the project cost (not to exceed
$750000) in order to make a comprehensive redevelopment project more feasible.
Although most of the husinesspeople present reco?nixed the problems in the area
and favored a project, a majority wanted to see a plan before they a;;ree to accept
a special assessment. 'Mr. Schnol:>ri_ch clarified a corm_ rehensive project with tax
increment financing and a special assessment would he ore method by which a
redevelopment project in the 50th and France area could be undertaken; other
alternatives are the piecemeal approach (where individual land parcels are
redeveloped separately) or a stepping; or phased approach (whereby different aspects
of redevelopment would, be clone over a period of time as financing becomes available) .
Mr. Pelson, who attended the August 14th meeting, recalled that, in general,
the of thoe-s > who were less enthusiastic a';out a project related to whether
or not a plan would allow del-i_very access, etc. , rhile the husinesspeople in
favor of a project felt a need to ensure the future of the corner as a good place
to do hu.si.nee: ,. He felt: the concenstis of the busi.nesspeople ;.,as that they need a
plan to look at to got an idea of Yiila't char,-)e would occur, <:ri that it is too
early to make a decision for a financial commitment ,-;Ithout such a plan.
Nr•. 1'obert Svker.>, pro ,i.clF nt: of the !?Pe..evc1_onment. Co? :,ittee of the 50th and
Prance F;II -.ine ss and Prof sslon:_1 ri, `;OCi 1t:LC)n, st' sated that a vast majority Of t}le
8-22-74 II.R.A, Minutes, page 2
bu ;i_nesspeople north and south of 50th Street are "looking for l:elp on the corner
and arc, willing; to accent the assessment". ?Tr. 6'arren Hinze, president of the
First Edina National Bank, Iir. Art Dicker, an architect at 493^ France Avenue, and
Mr. Bob Kalland, representative of the France Avenue Shell stat_on spoke in favor
of a 50th and France project. Nr. Oswald Peterson of Peterson. A-)reliance, Mr.
Wayne Schall of Frederick flerfurth, and Iir. Steve Sandova of ''ohil Oil also spoke
in favor of a redevelopment project but indicated a plan of i-:hat will be done is
nee(i,!d before a financial commitment can he made and a special assessment accepted.
Mr. Ken Dreason, representing Business Properties, indicated he cannot endorse
a project until he can see and evaluate a plan with some definite proposals.
Considerable discussion follo:red regarding the meetings held, the Citv of
Minneapolis' plans, the project timetable, past 50th and France studies, the II.R.A. .
budget, and the hiring; of a c:m,sultant. Mr. Rixe felt the II.I'..A. should not proceed
further without a more specific acid comprehensive plan that can ' e evaluated
either in phases or in its entirity. Ile added he is convinced the earlier timetal:-ile,
wh:_ch would have permitted they H.R.A. to benefit from increments tltat will not be
available agai.n, is not feasible. In reply to fir. Freeburg, f'r. Schnobri.ch informed
the Authority; that money is budgeted to hire a consultant that could conduct a
thorough stu(1y, research the alternatives, and prepare a plan.
Mr. Freeburg moved that, as recommended by the staff, the consulting
firms of Barton-Aschman and Associates, Nason, Vlehrman, Chapman and Associates,
and Bather, Ring;rose, Wolsfeld, Inc. , be invited to interview on 'N"Cdnesday,
August 28th, or Thursday, August 29th (date to be determined by staff) before
selected representatives of the full Housing and Redevelorment Authority and the
H.R.A. staff, with the consultant chosen to he confirmed at the next regular
meeting of the Authority. fir. Nelson seconded the motion, and upon roll call the
following voted:
Ayes: fir. Nelson, fir. . Freeburg;, Mr. Rixe, Mr. Greer.
Nays: None.
fiction carried.
The staff was instructed to contact the City of Minneapolis regarding their plans
for the east side of France Avenue and invite their planner to attend the next
meeting, or have a synopsis of their plans and attitude available prior to that
meeting. In addition, the staff was directed to confirm the availability of
H.R.A. budget funds to hire a consultant.
4. Adjournment.
fir. Rixe moved the meeting be adjourned at 9.00 P.M. ' r. Freeburg
seconded the motion, and upon roll call the, following voted:
Ayes: fir. Nelson, fir. Freeburgr., Mr. Rixe, tor. Greer.
Hays: None.
Motion carried. fleeting; adjourned.
Respectfully submitted,
Greg Luce, Executive Director
`I'O: Housing & Redevelopment Authority
of Edina , Minnesota
I
FROM : Citizens Advisory Committee -- Report 41 August 21 , 1974
The Citizens Advisory Committee of the Housi-nq & Redevelopment
Authority of Edina , Minnesota , is in support of the concept to
upgrade the commercial area surrounding the 50th Street and
France Avenue intersection .
i
I
1 . Project Alternatives
Your Advisory Committee has made , and will continue to
make, an effort to bring members of the affected business
community, residential neighbors , and other. interested
parties together as proponents of improvement , and we urge
the Authority and the professional staff to proceed with
the study of alternative propositions.
While a comprehensive redesign and redevelo�ment may be
the most desirable solution , it is our recommendation
that staged development or partial improvement should also
be considered . In fact, it is the Advisory Committee ' s
considered opinion that a major redevelopm nn (which
would involve major reconstruction and/or new construction
of commercial properties) may prove both financially
impractical and repugnant to the residential neighbors.
2. Priorities
Since we are most likely to face a partial or staged
development cycle, your Committee urges that priorities
be set based on problems (both physical. and financial)
that the area faces . To that end we have a ;eneral con-
sensus that the following issuer are important :
a. The Deterioration Problem. The probability of
further decline of the area if no preventive
action is taken.
b. The Parking Problem, including pedestrian and cycle
safety.
C. The-Traffic Problem. The efficiency of ~ raffi.c flow,
not only in the Center itself , but on acc=ess and
egress routes . (How much would traffic increase?)
2 .
d. The Utility Problem. An analysis of the need for and
cost of bringing basic utilities up to today ' s
standards .
e. The Appearance Problem. Consideration of the aesthetics
of the Center and the neighborhood.
3 . Equity
We believe all property owners should be equitably assessed
for improvements not otherwise funded; and that the ',pillage
and its general tax-paying public should be protected
against the burden and risk of carrying the HRH ' s indebted-
ness, in case of financial default by the HRA' s program.
4 . Concerns
a. A concern that the area is not capable of financially
supporting any major redevelopment without greatly
increasing the density of land utilization. And a
concern that if greater density is accommodate-' , it
would result in greatly enlarging the trade area and
the subsequent volume of traffic in and out of the
Center.
b. A concern that further piecemeal developments , such
as the First National Bank expansion, will be allowed
prior to the adoption of an overall.. development plan,
whether privately or publicly funded .
C . A concern that the present IIRA timetable does not
allow sufficient time for the necessary Environmental
Impact Studies , financial pro formas , and alternative
plans to be developed and published .
d. A concern that the financial feasibility studies (of
alternative plans) will not provide detailed analyses
of each major operating assumption . Every assumption
should be documented for reasonableness , as each will
bear greatly on the alternative, if any, that is
pursued .
e. A concern that the citizens be given reasonable assur-
ance that, short of constant citizen Vigilance , future
expansion can be avoided . There is concern thal:i the
history of commercial projects , both in Edina and
other cities , has often been creeping commercialism at
the expense of existing neighborhood concepts .
f . A concern that the Authority, because it has been
established , will not-. heed its Preamble whicl: says in
part "These cloa.ls do riot mandate tha f. a r_ede:efopment
ar_.tion be undertaken. "
HOUSING AND REDEVELOPMENT AUT11ORITY
STAFF REPORT
September 3, 1974
Re: Agenda Item P3A (Loan Agreement)
Attached is a copy of the loan agreement which was approved in concept
by the City Council on May 6th, 1974, and by the I?.R.r' . on May 7th.
The staff would now recommend that the loan agreement he anproved and
executed.
The loan agreement essentially allows Edina to loan ronev to the I .R.A.
and commits the H.R.A. to try to the best of their ability to refund that
loan with 5% interest.
GL:ln
8/30/74
A
4
TSE/abc 7/2/74
LOAN AGRE +.NT
THIS AGREEMENT, made and entered into as of this 7th day of May,
1974, by and between the CITY OF EDINA, a municipal corporation organized
and existing under the laws of the State of '.Minnesota (hereinafter called
"Edina") , and the HOUSING AND REDEVELOPM.FNT AUTHORITY OF EDINA, MINNESOTA
(hereinafter called "H.R.A.") ,
WITNESSETH:
WHEREAS, Edina has agreed to contribute and loan funds to the H.R.A.
for the 1974 fiscal year of the H.R.A. , which corresponds to Edina's fiscal
year, and which in turn corresponds to the calendar year, in the total
amount of Forty thousand two hundred dollars ($40,200) , and the H.R.A. has
agreed to accept such-contribution and such loan, all on the terms and
conditions hereinafter set out.
NOW, THERFORE, for and in consideration of the mutual covenants
and agreez-._tats herein set forth, Edina and the H.R.A. do hereby agree as
follows.
1. Edina does hereby agree to contribute and loan to the H.R.A. ,
for the period ending December 31, 1974, a sum not to exceed Forty thousand
two hundred dollars ($40,200) (hereinafter called the "Funds") .
2. The Funds shall be paid to the H.R.A. in such amounts and at
such times as the H.R.A. shall from time to time request.
3. All Funds paid to the H.R.A. shall be allocated by the H.R.A. ,
.to the greatest extent possible and permissible under Minn. Stat. (1971)
§462.411, et seq. , known as the Minnesota Housing and Redevelopment Act
(the "Act"), to a redevelopment project of the H.R.A. as a public redevelop-
ment cost, as such terms are defined in the Act (the "Allocated Funds") .
4. All Allocatf-,d Funds shall be repaid to Edina with interest
on the unpaid portion thereof from time to time outstanding at the rate of
Five percent (5%) per annum from the date said Funds are disbursed by Edina
to the H.R.A. until paid. it Funds not so allocated (thc "Nonal.locatcd
Funds") by the H.R.A. to a redevelopment project as a public redevelopment
cost shall be a contribution by Edina to the H.R.A. and need not be repaid
to Edina. All Funds shall be deemed Allocated Funds when first paid to the
H.R.A. and shall bear interest from the respective dates paid to the H.R.A.
The H.R.A. shall give a written report to Edina within ten (10) days after
December 31, 1974, of the respective amount::s of Allocated and Nonallocated
Funds, as determined by it, and the total of such Nonallocated Funds shall
be deemed to have been first paid out to the H.R.A. under this Agreement, and
the balance of the funds paid out hereunder shall be Allocated Funds bearing
interest as above determined.
5. The Allocated Funds, with interest, shall be repaid to Edina
out of funds received by the H.R.A. from its redevelopment projects, with
each such payment made to Edina to be applied first to interest then due and
the balance to principal. The H.R.A. shall make every effort to repay the
Allocated Funds, with interest, to Edina as soon as possible, but, as stated,
shall be obligated to make repayments only out of funds received from its
redevelopment projects.
6. None of the Funds shall be used in any way for, or in support
of, directly or indirectly, any public housing projects as defined in the Act.
7. The H.R.A. shall 'al.locate all of the Funds which it can properly
and legally allocate to a redevelopment project as public redevelopment costs,
so that the maximum amount of the Funds will constitute Allocated Funds under
this Agreement.
8. Any of the. Funds not paid to, or encumbered by, the H.R.A. as
of and including December 31, 1974, shall not thereafter be disbursed by
Edina PS'rept pursL'a'at to a new loan G L,�emea t; tliea o�'
g � ciiereazter entered
into. For purposes hereof, such Funds shall be deemed encumbered by the
H.R.A. if the H.R.A. is then under a written agreement to pay the Funds for
labor, materials, or services rendered or to be rendered in connection with
a redevelopment project then being studied or carried out by the H.R.A.
9. The H.R.A. shall keep accurate books and records of all of
its financial transactions in a manner consistent with accepted accounting
principles, and shall maintain all such books and records at its main office
at 4801 West 50th Street, Edina, Minnesota. Edina, and its authorized repre-
sentatives and agents, shall have the right to examine and copy all such
books and records at reasonable intervals during normal business hours.
10. All notices, reports, or demands required or permitted to
be given under this Agreement shall be in writing and shall be deemed to be
given when delivered personally to any officer of the party to which notice
is being given, or when deposited in the United States mail in a sealed
envelope, with registered or certified mail postage prepaid thereon, ad-
dressed to the parties at the following addresses:
To Edina: 4801 West 50th Street
Edina, Minnesota 55424
Attention: City Manager
To H.R.A. : 4801 West 50th Street
Edina, Minnesota 55424
Attention: Executive Director
Such addresses may be changed by either party upon notice to the other party
given as herein provided.
IN 1ITNESS WHEREOF, the parties hereto have caused this instrument
to be duly executed as of the day and year first above written.
CITY OF EDINA
by
Its Mayor
and
Its Manager
HOUSING AND REDEVELOP ;-ENT AUTHORITY OF
EDINA, MINNFSOIA
by
-- Its Chairman
and
Its Secretary
-3-
STATE: OF IIIN dESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of 1974, by James VanValkenburg and Warren C. Hyde, as Mayor
and City Manager, respectively, of the City of Edina.
STATE OF MINNESOTA )
SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of , 1974, by Charles W. Freeburg and Lawrence W. Rixe, as
Chairman and Secretary, respectively, of the Housing and Redevelopment
Authority of Edina, Minnesota.
_J
ROUSING AND REDEVELOP''T' T AUTf!ORITY
STAFF REPORT
September 3, 1974
Re: Agenda Item 3B (Financial Status of H.R.A. )
In response to the Authority's request of the remainin furs in the
budget, please he informed we have yet to be billed by anyone.
I would estimate, however, that you have spent about $2,000 from the
Personal Service line item, $3,000 from the Contractual Service line item,
$75 from the Commodities line item, and $1500 from the Central Services.
Attached for your information is a copy of the approved 1974 H.R.A. budget.
GL:ln
£3/30/74
I
t J
.M
1
1974 HOUSING AND REDEVELOP?!ENT ":?.--I0RITY BUDGET
Personal Service - City Contract
Executive Director $ 6,000
Secretary 35000
Other 1,000
10,000
Contractual Service - Separate Contract
Planning $205000
Engineering 21000
Real Estate 39000
Relocation 1,000
26,000
Commodities -
f
Publications & Conferences $ 500
Auto Expense 1,000
1,500
Central Services - City Contract
$300 per month @ 9 months = $ 2,700
2,700
TOTAL . . . . . . . . . . $140,200
r r' s
R S II
I R S nR
�I
R ' S
Li
S I
s I l (`P( 1 3r�1� I
_e.
S 1 3
I I 13) ' 11141111
I � I � � 6
11141111 N F F I
I I F ,
I 11 113
1113 11141 SECTION AA MT�I I ice'
:,1
1 J 11111411 ha so o"N 0 a `I H too
i
Es f R. j `ZJ
S I c A i a I r s s r
!111-13 I UMT
2 ®�I N N E A P O L I B
• � _ arr �*h\�<�-;�� 'n. ., �� 4 PLANNING � DEVELOPMENT
S T. CITY H ALL
z;
S 3cCV 10E �Cvi^1MERClf},L)
Z Thous re�/